Electric Dealer Breakout Battle

China economy and Informatization 2013 1th

As the car ran into the car's runway, the electric dealer broke the original rules of the game.

Although the 100 million-dollar bet will not be cashed until 10 years, many investors are still jealous of the electricity business.

At the end of 2012 CCTV annual Economic Figures awards party, Wanda chairman Wang publicly said: "I bet with Mr. Ma Yun, 10 years later, if the electricity business in China's retail market accounted for 50%, I give him 100 million yuan, if he did not return me 100 million Yuan." "The need to remind is that the momentum of the electricity business is too fierce." 2012, Alibaba's Taobao and cat turnover has exceeded the trillion yuan, so that the results can be ranked in 2011 China provincial and municipal GDP ranked middle level, or even close to the 2011 Beijing GDP1.6 trillion yuan level.

Wang that the traditional retail position could not be shaken may come from the other side of the ocean. 50 years ago, Wal-Mart founder Sham Watton a large number of supermarkets in America's three or four-line cities, where the purchasing power of these cities was released in large quantities and the US economy profited from it.

In fact, in the past few decades, China has basically adopted this model, that is, the distribution network to promote regional demand. But this pattern seems to be a lot of loopholes today. China's three or four-line cities, will make the traditional channel construction cost is too high to imagine. With the improvement of all aspects of online trading, information technology has been used in the field of consumer goods circulation, which has greatly improved the efficiency of circulation and transaction. Even retail giants such as Wal-Mart have had to compromise on E-commerce in China, acquiring a 51% per cent stake in the E-commerce Company's No. 1th store. There are rumours that Wal-Mart will close 100 unprofitable stores in China in the next two years.

But the future of China's electricity dealers is not as good as it might be. There are media reports that Taobao has a lot of transactions is to fill the volume of the false deal, and some is to pay treasure when the bank's exchange transfer, that this trillion yuan transactions in how much is used to buy goods actual expenditure, how much is other nature of the accounting transactions? What's more, many of the dealers in the price wars still roam the margins. Fang, vice president of Amazon China, said to China's economy and informatization: "There is still a gap in China's electricity market from rationality." ”

In other words, the electric dealer is like a car that replaces the new engine and rushes into the car's runway, breaking all the rules of the original game. But one thing is for sure: even if no one is on the street, there is no one to go shopping.

Retail Emergency

"Two-day" just past, the air is still full of noisy atmosphere. But in Beijing's Zhongguancun business circle, the shopping atmosphere is not obvious. In Zhongguancun for many years the king of a reporter said that e-commerce shopping is very convenient, home can be door-to-door, which let them have been a great impact.

Ding good Electronic Mall planning director Jiang Huiping told our Reporter: "Compared with traditional stores, e-commerce in the convenience of do have a greater advantage." ”

The dilemma is not just the electronic stores, after years of growth, the entire traditional retail industry is also beginning to appear tired: Slow performance, profit decline, store closure.

The obvious question is, who moved their cheese?

The rule of thumb in China's traditional retailing industry is that whoever occupies the best position and has more stores will be able to occupy a greater market advantage. Compared with foreign countries, the Chinese retail market seems to have unlimited space, based on such a development model, China's retail industry in the annual doubling of the pace of store expansion, the Chinese retail industry opened up a rapid growth of the golden decade, the first-tier cities and second-tier cities in the market has been basically saturated. But it is clear that such a consumption pattern has not been able to adapt to the new survival model, the entire traditional retail industry has slowed down and the decline in profits discomfort.

To Gome for example, the first half of 2012 sales revenue fell 22%, net profit loss of 500 million yuan, this is gome for the first time in 9 years, and its old rivals Suning appliances (002024, shares) the first half of the net profit also fell nearly 30%.

Do they have to face tough choices, continue to expand their stores or shrink their front lines?

In 2012, many domestic retail companies chose the latter on the answer sheet: Li Ning Company closed 1200 stores in the first half of this year, and in May, the first department store in Shanghai was closed and closed in August. has been domestic enterprises chanted "wolf" foreign retail enterprises in China market mud is too deep, Home Depot due to not support closed all stores completely out of the Chinese market, the first half of the lotus flower net profit fell more than 100%. Tesco Lotto also suffered setbacks, has shut down a number of stores, some foreign retail companies have even been the acquisition of news.

The biggest blow to traditional retailing comes from the little brother, the electric dealer, that they once looked down on.

In recent years, the frequent outbreak of "electric business war" despite the exposure of a lot of vicious competition, but its booming momentum still makes the traditional retail industry feel chill. After the "double 11" online shopping spree, Mr Ma even openly stated that new marketing methods, methods, processes and business ecosystems would be subversive to traditional business ecosystems: "The current situation is a revolutionary subversion of traditional business ecosystems, so this is like a lion eating sheep in the forest, not hating sheep, But the laws of ecology. ”

Even more embarrassing for the traditional retail industry is that many traditional stores are becoming the display platform of electric dealers, many consumers in the physical shop after the real goods back in the online order.

Suning Appliances as a representative of some of the traditional businesses are also trying to change to the electrical business, but this is a need to operate a high degree of Internet thinking business form, from manufacturing, brand, distribution, logistics to express, the core of the data processing to improve the efficiency of business operations. These, suning is not good at.

For most traditional businesses, they may be aware of the trend of the future, but it is difficult to really grasp the key points. Especially the big brand, the more adjustment, the more difficult to face.

Electric dealers are popular

It is hard to imagine that only a few years ago the electric dealer or traditional sales foil.

If the history of China's first electric trader is traced, it is inevitable that the name of the old Banyan will not be bypassed. In 1999, he was the general manager of the Software E-business Division of the company, and then founded 8848. The first E-commerce site in the country was quickly after the establishment of the venture capital Crazy Chase, but after the dotcom bubble burst, 8848 listed hopeless, after a few easy owners finally shut down. The Chinese Electric Trader Enlightenment is dead.

And the old banyan almost at the same time into the field of E-commerce Ma Yun also once did not understand why business-to-business, however, compared with today's "mystery", Ma Yun appeared as a missionary frequently in various occasions, with the aim of preaching to Chinese entrepreneurs the way Alibaba operates and joining the services that Alibaba can get.

Compared with America's already mature business system, China's e-commerce is almost built in a wilderness. Alibaba had to adopt a model of brainwashing similar to MLM, by the company's core business staff to educate new employees, and then from the new staff to expand the business development of the upstream and downstream education, abruptly to many of the small and medium-sized enterprises have never contacted E-commerce attracted to the platform of Alibaba, which let China's electric business industry to play a world.

December 3, 2012, Alibaba Group announced in Hangzhou, its Taobao and the days of the cat's turnover has exceeded the trillion yuan.

This figure exceeds one-twentieth of the total retail sales of domestic consumer goods in 2011. "The net trader and every consumer in the Internet environment is the first batch of immigrants in the new Economy (310358, the Fund bar) that will guide China's economic transformation," Mr Ma said. ”

According to the emarketer report of the Market Research Institute, the growth rate of e-commerce retailing in China has been hovering around 100% in the past two years, ranking fourth in the global market.

Only 21 days ago, another figure of Alibaba has rocked the electric business circle. "Double 11" shopping Carnival day Alipay total payment amounted to 19.1 billion yuan, more than 2011 Years 3 times times. One day only the cat reached 13.2 billion yuan, Taobao completed 5.9 billion yuan. Horizontal control, 2009, Taobao "Double 11" section sales of only 52 million yuan, 2011, sales reached 5.2 billion yuan.

No wonder Ma Yun said afterwards, "Double 11" shopping carnival is not the so-called electric business war, but a signal of China's economic restructuring, the new business model war on traditional business model, manufacturing traders will find: Today's situation has changed.

Still use numbers to talk, in the "Double 11" day, the cat and Taobao attracted more than 200 million independent users to visit, this figure is close to the total number of Chinese population of one-sixth. In 2006, online shopping accounted for only 0.3% of the total retail sales of consumer goods, rising to 3.3% in 2010 and reaching 4.3% in 2011. The 19.1 billion yuan will obviously make the 2012-year figure even more different.

Behind these figures is not only Alibaba's own efforts. Under the impetus of the electric business vigorous development, the whole social resources are participating in one after another. However, MA also put forward a new goal: "1 trillion yuan is just beginning, we are entering the era of 10 trillion yuan." "Alibaba Group is expected to support the future of E-commerce 10 trillion yuan scale, will need 10 million courier personnel, at the same time with the further release of online shopping potential, will need 10 million full-time network customer service personnel."

The industry has a point of view, the "double 11" so that China's e-commerce to a qualitative change from quantitative to critical period. In other words, e-commerce as a new business model is going mainstream mature, or will become the future of China's main driving force of the economy. This is not only because of the rapid development of E-commerce, but also because of its pull logistics and other related industries high-speed development. And the deep change of retailing and service industry is the great power to push the whole supply chain system to change profoundly, and it is the great power to adjust and optimize the social economic structure.

Double Sided 2012

But that does not mean that 2012 's electricity dealers have no brutal side. Capital cooling, consumer weakness, price wars, when capital mania began to return to rationality, closures and mergers and acquisitions swept the field of electricity.

April 20, 2012, le Cool Day in its site prominent position issued a notice: After the management team's careful consideration, le cool Day mall will be closed from 0 o'clock April 27. Le cool Day is by the Japanese Lotte Group and Baidu in January 2010, a common injection of the company set up a business website, similar to today's Taobao, Cat. One of the shares of Baidu 49%, Lotte shareholding 51%, the year October online.

There is analysis that, le Cool day hope simple re-engraved Rakuten in Japan model, coupled with the flow of Baidu import, and quickly occupy the domestic electricity market. But too quick success of Baidu and cool days did not give the group team enough time, the domestic electricity market is not enough to understand, and finally have to accept the fate of failure. Similarly, the birth of a family of NetEase products, there is not enough users.

Once the scenery Unlimited group buying industry continues to feel extremely deep cold. In September, an internal email from 24 coupons from the group buying site showed a serious clash between the company's investors and founder and CEO Du Yinan. Investors have refused to continue to inject 24 coupons, 24 coupons broken, will face more than 60 million yuan of debt recovery, the company closed soon. Du Yinan suspected to encroach on the company's capital, the company founder and investors in the contradictions between the public. Then, as the old shareholders took away the funds, the creditor to the court for compulsory claims, 24 coupons in October suspended operation.

Since the second half of 2011, the group buying industry has entered the shuffle stage. After the war, the current market there are still more than 2000 group buying sites. 2012, the lack of funds, profit-hopeless group buying sites have closed down, the real hope is only the top four or five companies, its sales accounted for the total consumption of users more than 90%. Such a market environment has no longer have the capital willing to enter the group buying industry, group buying industry has become the typical representative of the electric business in winter.

The days of vertical electric dealers are not that good. September 25, Suning Appliance held a conference, officially announced the purchase of 66 million U.S. dollars of mother and infant category of vertical electric network of children. Suning said that after the acquisition of Red children will retain the brand, maintain a relatively independent development. In the future, Suning easy to buy mother and child channel will be run by red children, the Red Child's logistics department will be unified into Suning's logistics system. For Suning appliance, this transaction means that it completely rid of the traditional retailer's positioning and image, began to become with Jingdong, Alibaba, like the whole category of electrical business.

But for the 8-year-old red boy, who has financed more than $100 million trillion, that means a dashed dream. Data show that as the domestic well-known mother and infant vertical manufacturers, red children have 7.5 million registered members, 2011 Annual Shopping member repeat purchase rate of more than 50%. Red children have established a relatively sound national sales network, the total number of employees more than 1500 people.

Since the establishment of the 2004, red children have been at a loss, has been unable to get out of the scale of the profit dilemma, and eventually had to go to the end of the acquisition by Suning Appliance. In the view of the industry, only large electric dealers can successfully go overseas listing, small and medium electric power companies in the short term the possibility of independent listing, coupled with the previous valuation is too high, temporarily no scale profits, resulting in difficulties in follow-up financing. The best way to do this is to be bought by a big platform rather than a separate listing.

May 2012, Gome Group fully acquired Bowser network. Seven months later, Gome Group announced the integration of its two major electric platform-Gome Electric Network Mall and Bowser network. After integration, Gome Online mall will be the nominal "Gome online", mainly to do Gome's proprietary business, the equivalent of online "department stores", while the bowser network still maintain an independent brand, independent operation, although and the former unified management and resource sharing, but will focus on doing an open platform, equivalent to the online "commercial real estate developers."

There are also internet giants who are eyeing the fat of the electric dealer. Tencent completed the strategic deployment of the newsletter in 2011, with QQ online shopping completely through, and undertook part of Tencent's proprietary business. And the enterprise easy to hear the logistics and warehouse system is also open to QQ online shopping merchants.

However, the logistics enterprises in the electric industry chain are also eager to integrate the upstream and downstream areas. At the beginning of July 2012, Shen Tong Holdings of E-commerce website "Love to buy Network Super" online, two months later announced closed. And Shun Fung optimization, Yuantong, EMS, home emergency delivery and so on have also opened the electric business platform.

This year, the field of electrical business will not be missing the topic, Alibaba, Beijing East two strong leader behind, a lot of snipers.

Hoping for the future

In this case, the volume may be the only magic weapon to win the electric dealer.

The best corroboration is that Alibaba, which has reached a trillion-dollar scale, has not stopped its expansion. Network Technology Service company CNZZ confirmed has been acquired by Alibaba Group, which marks Alibaba in its e-commerce industry chain integrated layout and complete a key step. CNZZ registered users up to 1.81 million people, statistics site 3.06 million, every day there are 1.6 million sites using CNZZ. Industry insiders said that Alibaba has a user's trading habits Taobao data, the acquisition of CNZZ means that Taobao station outside the real traffic data is also sweep.

There was a takeover news in February 2012, but CNZZ chairman Cai denied it. Alibaba said, "CNZZ is a commitment to service the Internet small and medium-sized companies, in line with the Alibaba Group's mission." Cai on Weibo said that the combination of CNZZ and Alibaba Group would be complementary to each other.

Data show that CNZZ is invested by IDG Network technology services company, focusing on the internet for various types of sites to provide independent third-party data statistical analysis. At the same time, CNZZ has the Internet data collection, statistics and mining three major technologies, engaged in Internet monitoring, statistical analysis of technical research, product development and application.

As early as a few years ago, Alibaba began to purchase the industrial chain layout. 2008 Alibaba acquisition of the general Forum program provider phpwind,2009 September to 540 million yuan acquisition million nets, plus the acquisition of CNZZ, means that the vast majority of the Internet at the bottom of the data will be MA master, this gives Alibaba future development left infinite reverie space.

According to CNZZ revealed that the current group purchase site using CNZZ statistical tools, which makes Alibaba in addition to have Taobao users of the trading habits of data, but also to monitor Taobao station outside the real traffic data.

It is noteworthy that Alibaba's opponents have not stopped their footsteps.

Jingdong Mall from November 2012 onwards, push English web site, acquisition net Silver Online, a new round of financing, with the charm to reach 800 million yuan sales cooperation, the supplier to push financial services, this year online advertising system just got 300 million U.S. dollars to finance the Jingdong Mall recently frequent movements. Moreover, Jingdong Mall platform has opened to the outside, the official launch of logistics and distribution services to partners, the industry as a further challenge to Alibaba.

However, to arouse the attention of the electric business enterprises, China's e-commerce still does not find a stable profit model, price war is still the norm, and many electric companies have to afford to sell the more thanks to the more business model.

Xiahi, deputy general manager of China International Book Trade Group Co., Ltd., said: "The business no matter in which platform all must make money, does not earn money the trade does not call the business." Consumers in the future also need rational judgment, if buy a lot of useless things, it is irrational consumption. Jiang Huiping said: "The current electric dealers in order to go public, do a lot of unhealthy things, but the listing is not the ultimate goal." No matter the electric dealer and the store, are the social circulation system part, only these circulation system healthy operation, can promote China's consumer system to move forward. ”

Even once shouting 0 gross profit, unprofitable Jingdong mall, today is no longer regarded as the lowest price of the same. The reason is due to the impact of traditional retail enterprises, on the other hand, Jingdong Mall may also be looking for other than the price war and other expansion models.

But the need to remind, Wanda Group chairman Wang had a joke, China's 4,800 electric dealers in 4,799 are losing money, only Jack Ma's Alibaba to make money.