Electric Business Entrepreneurship: To do channels or brand?

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Editor's note/For the current E-commerce industry, in a tale of two cities to describe the most appropriate: this is the best of times, but also the worst of times. The so-called "Best of times" refers to the demand for online shopping users is in a fast-growing period, and the so-called "worst of times" refers to the capital of the winter has not ended, the price war is more and more violent. For the electric business entrepreneur, under the present situation, the big platform, the big category has not had the opportunity. But no matter what products to do, the entrepreneur is to do the brand or to do channels to cut into the way, are a matter of pros and cons.

Not long ago, the annual conference, Jingdong Mall CEO Liu said: Big platform has no chance, but E-commerce platform can also have a lot of opportunities to do new brands. It turns out that branding on the Internet is not easy. Like every customer prudential products such a brand, the beginning of the positioning is the brand, but the border is becoming more and more blurred, and thus tasted the suffering of the channel expansion.

Now in the electric business cold winter, channel and brand How to go from place, how to position? At the third session of the Electric Business Growth summit, entrepreneurs from the electric business industry discussed the problem in depth.

Focus One: "Qualifying" is over.

China's e-commerce is at the end of the hundred-meter qualifying race. From the whole market view, each big category will be left one or two lines stronger and more strong online. Before you can run, because there are always people to pay money, let you take the money to burn, give you power. With the current capital environment, this momentum is clearly inadequate.

It is time to test everyone's ability to operate, all e-commerce companies should not go to the pursuit of scale. Companies need to focus on the quality of operation, the gross margin has reasonable requirements, to begin to pay attention to the quality of users, order quality.

Li Shubin: China's e-commerce industry is more bizarre, like everyone in the race, but this game at the beginning of a 100-meter qualifying game, we have all the strength to rob this qualifying opportunity. At present, the qualifying match is at the end of the season. From the whole market, basically, each big category will be left one or two lines stronger and more strong online, for example, the field of digital appliances left Gome and Su Ning, Beijing East in the contend. In the book field, offline is the Xinhua bookstore, online became Amazon and when the contend for. Shoes inside may be left to buy and excellent purchase, excellent purchase represents the hundred Li Group, the background of the cable, and good buy is to do online earlier on the pure online channels.

Zhiquan: The current point of time and a few years ago the electrical business environment is too big, we were the first to do online home appliances, that time our customer single average price of 9800 yuan, now think about it. At that time, we do 18 million yuan monthly sales, the market cost is 330,000 yuan. But now, that time has passed.

Li Shubin: Before our investors told us: your sales exceed 200 million yuan, the war is over, last year said you more than 500 million war ended, last year said more than 1 billion yuan war is over. But in reality, more than billions of dollars of war are over. How can we continue to develop in a long time? A few years ago, the companies are running with the disease, and run too fast, within three or four years from zero to more than a billion of yuan scale, the result ran a lot of problems, including running in front of the special large companies, the same problem a lot. Now, there is already a set of people run dead, the rest of the people do not need to run. In addition, we all know that the current capital environment, before we can run, is because the back of someone to give money, let you take the money to burn, give you the power, but now this dynamic is obviously insufficient, so now is the test of our operational ability. Therefore, I think, now all e-commerce companies, should not go to the pursuit of scale.

Xu: For the electric business enterprise, there are three choices, the first is the scale, that is, the so-called growth. The second is gross margin, not necessarily in a certain period of time to profit, at least have the strength to support the enterprise to continue to do. The third is the structure of goods, can not sell the good sold out, leaving a heap of bad goods for a few years. Specific in a certain time period to choose what, the enterprise should be adjusted according to market changes.

For us, there is a greater desire for scale and growth, which may be more costly or costly than previously anticipated. We are more concerned about the quality of users, order quality, we will not sell very low-grade brand, our users have a certain quality requirements and shopping ability. Therefore, at present we do not pursue profitability, the size of the channel business is still very important. Profitability is easy, but there is no scale on the internet, it is easy to go beyond. Therefore, in a moderate scale has a certain profit, is more rational.

Lin: Today, China's electric dealers just solve the problem from scratch, as to the next step, I think it is impossible to speculate. Because that requires users to help us to plan, which means that users feel that when you solve the problem from scratch, how to do better, how to reorganize resources, these things are not our hands, including capital this hand can be controlled, we can only listen to the user's choice.

Why the Cat (Micro bo) There are so many brands, but also the emergence of all the goods such as Customer Prudential brand competition? This is the user's choice, because the cat or Taobao users choose too much trouble, there are a lot of people want to be more convenient to choose a simple brand. So the whole market changes, we can not speculate, entrepreneurs can only follow the market run.

Focus Two: Brand more opportunities to do than channel

Today the entire Chinese electric operator's pattern has already formed, the so-called operator is Jingdong, the day cat, Tencent and so on, they are sells the flow, the big platform has formed the Matthew Effect. Why many do the channel will feel more tired, because today the cost of acquiring users is much higher than before.

From the channel, the opportunity for the big category is not too big, such as to do a digital, and then do a shoe and books, this opportunity is almost gone. But there is a big chance of the sketch. Own brand, there will be some brand concentration is not so high in the category inside the opportunity or a lot of.

Xu: In the end is to do channels or brand, which depends on what type of products. Take footwear as an example, if you do channel, in the supply chain does not have the advantage of doing channel electricity business is still very bitter. But from the brand point of view, shoes This category to do the brand, or more difficult. To cite an example, Belle currently in the global more well-known brands have several, terminal retail most of the stores are their own, but the current hundred lido will not easily do a new brand of women's shoes. Frankly speaking, in the online shoe brand, I am more admire, this difficulty is very big. In contrast, making clothes is easy to operate. Because clothing this category if find a unique positioning, the supply chain processing, it is possible to do a good job.

Zhiquan: It is really very difficult to do the channel now. Our last round of entrepreneurship experienced a period of rapid development, through the scale of the game, do channel must have scale, no scale you can not talk about competitiveness. Last year Bowser net did nearly 2 billion yuan scale, we decided the business model is to do first scale, then do customization, through customization to form a relatively good profit. However, the reality is that the scale of the game is not in sight, and we also found that the scale so that we do not have a sense of achievement, a lot of people work hard to dry, still lose a mess, we do not see where hope. So after the scale of the war, we are not so interested in the way we start our business again, by the sheer scale.

In fact, there are many opportunities to make brands in the Internet age. The advantages of the Internet are here, in the traditional retail industry to do the brand, to some extent the data is a black box, how many products you sell out, who is in the purchase of your products is difficult to statistics, and the electric business era is relatively easy, I know who is in the repeat purchase, this will be my further marketing, product optimization improvement, Re-consolidating resources can help a lot. But do brand must be able to withstand loneliness, need time to test, brand is not a crash.