Electric dealers to the pursuit of healthy gross profit, the early cash flow to draw the key stage

Late last year, a lot of friends and media friends asked me: Do you think China's e-commerce market there is no bubble? I was very insistent that China's e-commerce is not a bubble, and China's E-commerce for users, the industry has created an obvious result. But now, the bubble began to appear, its performance in several aspects: We are busy fighting a war of words, busy with each other smear, busy chew. Now is the extensive price war, this price war has no technical content, and the war is sometimes more and more dirty, more and more, whether from the surface, or from the internal to see these movements, I think these things contributed to the Chinese E-commerce bubble. "This is the customer Prudential product CEO aged July 20 in 2012 sent revamping annual meeting on the domestic e-commerce market judgment."

Just as old said, in recent years, the once conservative, steady development of China's e-commerce market suddenly like to be injected "catalyst", from the business model development, financing environment are ushered in unprecedented spring. But at the same time, greed, false prosperity and vicious competition, like the cancer of the rapid breeding, eating away at the healthy development of electric commerce. Bubble has become an unavoidable fact in China's electric industry.

In fact, after more than 10 years of development, China's electrical business has not been removed from the "box" status. Almost all repeat the rules of the game of "Happy enclosure financing listing and expansion". However, this mode of operation has shown weakness and failed to make the company profitable. In the face of the current situation of China's electric business, the huge logistics expenditure makes its capital demand urgent; On the other hand, the low gross profit makes its financial statements not be positive, and the current situation of the fund gap is more and more large.

Price bubbles

But even in the face of a serious shortfall, the financial constraints of the electric business enterprises, still do work hard to let the sale of cheap money: June 1, Suning easy to purchase the difference between the start of a history of the "full net parity month"; After the Jingdong mall started "Jing East Normandy, the history of the strongest store celebration month, let 1 billion yuan" activities; No truce, there are days of cats, in the early 200 million yuan subsidies to subsidize the sale of the business on the basis of a further announcement of additional 100 million yuan directly subsidize consumers. In addition, micro-BO platform has become a big electric dealers smoke the price war battlefield, Jingdong Mall CEO Liu July 16 Micro Bo said: "This morning and national managers said, the third to fourth quarter of this year will set off the largest, most tragic, the most comprehensive price war!" and Jingdong will continue to lead the price war! From today, whose price is not the lowest, who leave! " This message was sent in the electric business industry triggered a strong reaction, the electrical business bosses have sent a micro-blog response, the price of electricity dealers fire to micro-bo position. Pengliang, vice president of Bowser Shopping Network, immediately responded to Liu on Weibo, said Bowser look forward to the price war again, Bowser Network CEO Dingdonghua also immediately to Liu released if a netizen found that Jing dong everyone electricity than offline chain store price cheap 10% reward netizens 1000 yuan back coupons ideas show disdain.

The smoke of the collective price of the electricity business of the consumer, means that the price of online shopping bottom line will be broken again. Despite the tragic price war, but the big electric dealer still enjoy, in the final analysis, in order to keep their market share desperately, China E-commerce Research Center Network retail Department director Mo Dai Green pointed out, "from the market share, the cat is still ranked first, the second is Jingdong, and other Amazon China, Suning easy to buy, It is these companies that are playing the price war. It can be clearly seen that their purpose is also to maintain their position. ”

In the electric business big guys looks like the price war is the upfront investment, is oneself constructs the investment, this money spends the value, but in the final analysis, the enterprise actually still is afraid to hit the price war, the price war just is helpless. In theory, the short-term price war may be favorable, but so far, China's e-commerce has not been out of the chaos of price war. Mo Dai Green that the price war for the company can fight for market share, as the industry leader. From the current point of view, the development of electric business enterprises for many years has accumulated a certain amount of funds and their relatively stable customer groups, so that they have a certain basis. Second, the electric business enterprises have investors can rely on, playing a price war to a certain extent is to attract investment in the wind. "In the future, the core competitiveness of the electrical business is embodied in the quality of products and services. Depending on the advantages of the price, the user loyalty is not stable, if there is a lower price, then go to other places to buy. Only users really feel that the quality of products and services to protect, in order to improve the customer's trust in the electricity quotient and the possibility of buying again. ”

Talent Bubble

Price war at the same time, the talent war is also in the fierce expansion. Eric Consulting analyst released a Wanda Plaza recruitment ads is "domineering full." Vice President and assistant, the million-yearly salary, but the requirements are listed in the Amazon, when, Beijing and east, almost all of the electrical business enterprises can be the conditions. The meaning of "digging a corner" is already obvious.

And down to the bottom of the price formation in sharp contrast, the pay of the electric business talent, the high of the raspberry, the domestic electric network Director level of senior executive salary of more than 600,000 yuan to 1 million yuan. The reason is high, all because of "things to rare". According to data from Zhaopin, the demand for blistering of the internet's electricity quotient is 90,000, and the number of posts posted in the same period last year jumped to 260,000. Large and small electric dealers or on the electric business on the road of the size of enterprises, are suffering from the plight of talent hunger. Too many companies are busy entering the electricity business. But there is no time and energy to train staff, in order to take shortcuts, we are digging someone else's corner. But the traditional enterprise big crocodile, has been well-established the market, in order to get a cup of soup as soon as possible, also had to join the war. The big boys are complaining about the electric-business talent pay bubble, while helping to blow the bubble more and more, one side is the thirst for talent, one side is the salary system is high, while the electric companies continue to dig people caused by the industry job-hopping, the other side of the face of high pay dug the staff also said it is really difficult to refuse.

The rapid expansion of the electric business industry, resulting in "Digging feet and the wind" and "pay bubble" phenomenon exists, but, when the "digging foot phobia" constantly blow the "pay bubble", once the big expansion of the electric business industry abruptly stopped, pay premium was forcibly "fever." At that time, the electric business enterprise and the electricity merchant talented person, is bound to lose mutually.

Logistics Bubble

In recent years, high oil prices, soaring human costs and the brutal reality of intensified competition in the industry make life in the logistics industry difficult. A widely cited industry figure is that the profitability of the express industry has slipped from 30% in 2005 to today's 5%~8%. In addition to EMS so not on the same level of enterprises, many domestic private courier companies into a bad development logic, low-cost expansion of the market, low-cost services to reduce costs, low income can not improve the core competitiveness.

At the same time, with China's e-commerce bubble increasingly serious, after years of low-level price war baptism, many electric business enterprises realize that the logistics experience is the ultimate competitiveness, have taken a big step towards logistics. Jingdong Mall to take the lead since the construction of express business, despite the controversy, but the electrical business since the construction of logistics this mode of operation from the "case" evolved into a "trend." A "Get the logistics of the world", to promote Jingdong Mall, where customers such as platform-like goods such as electric dealers, as well as a good buy, such as vertical electric dealers are full of expectations of self-built logistics. At the end of May this year, as the star enterprise of the express industry, Shun Fung-yun high-speed launched its E-commerce site "Shun Fung optimization." Since then, the domestic market share of the largest Shen-Tong Express also launched the electric business platform "Love to buy the network super." Express companies set up electric shop, in addition to seeking new ways of development, there are many and electric business enterprises "angry" ingredients. Visible, courier and the field of electrical business "melee" has been fully launched.

Courier and electric business melee, in addition to business, talent snatch is also inevitable. The electronic business's aggravating, causes the traditional logistics industry company to face the new talented person challenge, after the logistics executive Job-hopping, the salary doubled to rise. Although the industry believes that the existence of higher cost of foreign express, network coverage and other issues, the short-term will not necessarily cause too much impact on local enterprises, but for human resources system complete foreign logistics, reserve talent is the most important step to enter the Chinese market.

Rui Shi Fang Tatsu headhunting Introduction, in China, logistics senior talent gap of 400,000 yuan, the biggest competition between the electric business self-built logistics, foreign capital logistics and veteran logistics is the competition of talents, the salary of foreign logistics enterprises is more than one times higher than that of domestic logistics executives, and the domestic logistics is also helpless to deal with the competition. Since the establishment of logistics from the old logistics constantly "digging people", logistics talent war from senior executives to the grassroots continue to spread. Surveys show that senior logistics managers have paid more than 500,000 yuan a salary, some foreign logistics companies senior Logistics Director level position of more than million.

For the logistics industry, high pay to dig people, low-cost competition will aggravate the survival of the fittest industry, accelerate the industry shuffle, in the melee, survive the enterprise only through market differentiation, brand specialization can Nirvana Rebirth, embark on high-end, fast development path.

According to Cao, dean of the Research Institute, the data from the 10-year review and trend interpretation of the electric business show that 2006-2012 years is the high-speed growth period of China's electricity dealers. However, 2012 is a node, from 2012 to 2012, China's electricity business into maturity, the growth rate will fall from 2012 54.5% to 2015 26.8%

In this context, the early collapse of the bubble, will allow a group of potential competitors to be eliminated as soon as possible, marketing costs will not be with the new entrants to drive up and rapid growth. In the market stability, in the market in the dominant position of enterprises can deepen the product and service quality improvement and development.

In other words, China's electricity business is moving from extensive growth into a delicate stage. In the process, China's new wave of consumer demand will show, but the electric business of the ecological circle and the competition model will also be rebuilt. Compared with the past two years of "losing money to make a yell", "King of scale" and "capital by Speed", Chinese electric dealers are now more rational and cautious.

Expert opinion

Good fun to buy President Li Shubin

Amazon in the United States, the loss of more than 3 billion U.S. dollars, China has to do their own logistics and other construction, still far from the standard of loss, our investment is still too small. Second, E-commerce is a million-meter race, in front of desperately running, or after the force, to see their ability. The third is to see the choice of the industry, if you choose a small industry, you can run slowly, do not see how fast others run, because he and I is not an industry. In fact, in some small industries, the competition is not so fierce, I think there is a chance.

Cong, president of the network

The industry is really not easy to take money, including VC are very confused, not only the VC does not understand, and now a lot of electrical business friends are very tangled. But I personally think that the electrical business is now the best time, there are so many people online shopping, now logistics, pay far more than 10 years ago. So I believe that after this wave of so-called capital bubbles, the pattern of taking money on the scale of capital is not easy over the next few years, and secondly, I also believe that our industry may be more rational after this wave of capital bubbles has squeezed through. The high cost of the previous particularly painful promotion will come down some; third, the individual believes that the real power of the strong will be born in the next two years, must not be born in the most favorable times, but is born in a very good industry base, but remove the bubble, remove the impetuous, the strong only really born.

Tencent Electric Business CEO Wu Night Light

China's electric industry has just completed the first phase, from 2005 onwards, to Taobao as the representative of the electricity dealers broke the barriers to buy and sell homes, so that users enjoy the richness of online shopping. Now, China's electricity dealers are entering the second phase, the key point of this phase is how to improve the user online experience more perfect. The key point of this stage is to improve the transparency of supply chain and logistics information. Traditional supply chain will be qualitative change, enterprises can through data mining more accurate knowledge of different regions, different genders, different age consumers ' preferences, needs and provide customized goods. Logistics side, through the data and information docking, so that consumers know the precise state of each node.

Ecapital Capital CEO Ran

China's electric business to the pursuit of healthy gross profit, the early cash flow to draw a key stage. Especially for newly founded companies, entrepreneurs need to consider how to really do a good job of market segments, not only to attract financial investors, but also the introduction of strategic investors, the real industry to do a good job, strong. Chinese electric dealers have been learning the Amazon model, but it really learned less than one-second, just to get users and "carry the box" to the extreme. Amazon's operational services and data analysis are its real core competencies.