Electric Dealer Refueling

Source: Internet
Author: User
Keywords Electrical business

The electric dealer does not cry

Column • Tan No, vice president of China Labor Network

Electric dealers are encountering a rare cold spell, the severity of which is as zhongxingpengyue as the heat.

Take the youth to gamble tomorrow, still be addicted to die? According to statistics, the current domestic outage or transformation of the Web site has: The West meter network, Amoy Magpie Network, have goods network, App Gold Everbright Warehouse. Jingdong Mall CEO Liu even predicted that 2012 will be the year of the demise of the Business-to-consumer. There are also insiders pointed out that the electric business industry is suffering from the cold winter or even bubble burst, a round of industry shuffle will be inevitable. Echoing this is the Lok Tao Net founder Bi Sheng in a recent public speech exclaimed "E-commerce is a scam."

After the veteran Shengchang, IPO postponed, and there is a blog exposure said that every customer prudential products have dead inventory a billion of yuan, 4-year cumulative deficit may exceed 2 billion yuan. Where the customer is not really a loss of 2 billion yuan, as long as the parties do not publish the business figures, the outside world is impossible to know exactly. But from the recent years, every customer's burning money to observe, this figure is possible, at least, where the customer has the ability to achieve this figure. And the industry has the ability to withstand this loss of more than just the guest family. Another electric business giant Jingdong Mall, since the line, 3 rounds of financing to obtain 1.531 billion U.S. dollars, and the outside world for its last year's loss rumors is 3 billion yuan. In the first half of this year alone, the disclosure of investment and financing (excluding group buying) in China's electricity industry is 1.83 billion dollars.

The 10-digit investment and loss prediction not only reflects the status of the electric business enterprise's burning money, but also a side recognition of the rapid growth of the electric dealer. It would be unthinkable to return 5 years ago.

The frenzied investment makes the electric business giant to occupy the market not to fear the loss, enthusiastically burns the money, although many small and medium-sized electric business enterprise already gradually unbearable, complain, but at least in the near future, this brutal market competition behavior also is difficult to end. Giants are caught in a situation similar to the prisoner's dilemma, although all in the loss, want to converge, but who do not dare to really converge, the market once lost, and then grab back hard.

Burning money is not a bad choice for the Giants if it is not to catch up with the Chinese concept in the U.S. stock market. VCs who invest hundreds of millions of of dollars at a rate are not saving up to eat interest, in the case of sufficient funds, the burning of money is always a swift defeat, the most effective way to drag down competitors, and the return is very rich: for example, this year to burn down, Jingdong, Fank and so on not only have their own logistics this is the core assets and offline assets, The value of the brand is more than tens of billions of dollars ... Unfortunately, the forced postponement of the IPO plan has made the capital chain of several big electric companies a bit of a catch.

Despite the embarrassing situation, at least for now, China's electricity business is still hard to get out of the fate of the burning money competition. This is determined by the national conditions, at this stage, the so-called improve the competitive grade, service winning and so hard to really get the support of consumers, said that the burning of money because of excessive service is more ridiculous. These years the market status of various industries in China has proved that to seize the market, in addition to the propaganda war, is the price war, the common point is: "Burning money."

In the United States, Amazon has been burning money for 9 years until it is listed before making a profit, and China's status is more than the U.S., warehousing, logistics, distribution, payment ... These traditional commercial tasks can only be completed by electricity Shanglai hole, this expenditure is difficult to save.

China's electric dealers can not be round to the burning of money for the characteristics of the market competition, which may be cruel, but there is no need for excessive pessimism, as long as the hang on, there must be a way out. There are three reasons: first, the Chinese electric business has not experienced a cold current, and after each cold spell will be more vigorous development; second, the Chinese people need e-commerce; third, the current economic environment, other traditional industries are not easy, the funds will eventually flow in.

Some people say that in the burning money of the enterprise "died of fertilizer, the survival of the hero," which is not good, but it is stated that, regardless of the success of a single enterprise, the Chinese e-commerce market in the burning of money will not evaporate in vain.

The first train in the world did not run as fast as a carriage, and the first plane had no hot air balloon to fly far.

But what about this? The electric dealer does not cry.

  

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