Electronic Business in traditional enterprises: core challenge and successful gene

Different traditional enterprises in the process of electronic business, the core challenges are not the same, but the common problems faced are the lack of talent. The way to succeed is to strengthen the Internet gene by using modern precision marketing technology while valuing the nature of business.

"Sitting here today is especially reassuring. I have participated in several times before the Electric Business Forum, from the traditional business of my family, the other is to do pure e-commerce. ”

At the end of the third annual meeting on e-commerce, top grade discount CEO Eon seems to have spit out a sulk, because this time the participants in the electric business, there are many and he came from the traditional business, such as Suning easy to buy, seven wolves, Anta, Li Ning, Golden Elephant Pharmacy, Pat shoes NET.

Obviously, this is just the beginning of a beginning, having to participate and actively integrate. In the future of the electric business activities, will certainly appear more and more traditional electric power quotient figure.

"The electricity merchant's spring has just begun", Analysys International president Analysys said, "can take this impetuous bubble to retreat, as an important departure time". In his view, "Electric business Spring", "big business rise" the fundamental driving force, originates from the traditional enterprise electric business.

Electro-Commercial

A mixture of opportunity and anxiety

As early as two years ago, Ding Hui investment partner Chen Wenjiang found that the traditional enterprises in E-commerce played a very important role. The TOP10 list of online retailers in the US, with the exception of Amazon being a purely electric dealer, the other nine, such as Staples, Apple, Dell and Wal-Mart, are examples of traditional corporate power suppliers.

As a venture capitalist, Chen Wenjiang once a bit pessimistic: "Follow this trend, then we have to cast a vertical category of electricity?" Fortunately, she later found that because of China's vast land, urban and rural disparities, traditional retail channel coverage is far from enough, the domestic brand is not strong enough for many reasons, China's e-commerce opportunities than the United States, and, "will give small companies some opportunities."

This sentence is really curly tongue said, meaning is still not done, no one could not hear. Moreover, the above cases are becoming the "Chinese version" of the traditional enterprises ' exerting power.

Liao Bin, CEO of Silver Thai Network, said that in 2006, when they talked to a department store in the United States, they told them that the growth of internet retailing was four or five times times that of traditional retailing, which confirmed their determination to do online retailing.

Take the data for example. Effect Alliance network "billion start" platform of the order structure shows that the proportion of traditional electric dealers soared, from July 2009 to 1% in 2010 4%, 2011 12%.

Gao, vice president of China Internet Association, said that the deep integration of e-commerce with traditional industries would be a big trend and would span the existing "boundaries and gaps between the Internet industry and traditional enterprises" in the "2012 China Internet Conference Press conference" held recently.

However, there are more pressing intrinsic factors at work in the traditional industrial electricity business. Top grade discount CEO Eon that online shopping has long since the purchase of Amoy goods, small-type consumption patterns into the main channel of mass consumption, if not to do E-commerce, "the consequences are very serious, not only the original consumer groups are eroded, and sales channels accounted for a sharp decrease."

A new survey by PwC said 70% per cent of mainland Chinese respondents were online at least once a week, compared with about 40% in the US and UK, and only 20% in Europe, including France and the Netherlands.

Another factor that has been forced into transition comes from more realistic considerations-rents.

Despite the charm of traditional retailing, Zhang, vice president of Anta, almost complained: "There is a clear positive linkage between rents and CPI, and rising rents or a rise in commercial property will increase the cost of new stores." "The reporter learned that by the end of last year, Anta's stores a total of 7,778, the total sales area of nearly 960,000 square meters, the rent is not cheap, the first-tier city of the hot business district of the high quality shopping center rent more than 30 yuan/m2/days.

Market is divided up, consumer habits change ... If you do not adapt to this change, then, even if the rent does not rise, they also have to face a very little consumer situation.

Not only that, the traditional enterprise of electronic business should pay attention to Shinisu. Tian Cat Mall President Zhang Yong said, three or four years ago when he went to the investment, some traditional brands to answer the business, E-commerce is very good, but we have to see how other people to decide to participate in. But now they regret, because the original participation of those people, seize the opportunity, "the cat is expected to have 100 annual sales of billion yuan, 2000 million." ”

Fortunately, China's online shopping market booming momentum remains unabated. Zhang Ju, senior vice president of Analysys International, said that although the current net-purchase user penetration rate reached 40%, the net ARPU (per user average income) close to 4000 yuan, but this is still "adolescence", the drama is still behind.

Lack of talent

Common context for different core challenges

As a senior researcher, Zhang Ju clearly has more to say. He believed that this year the domestic net buys the market certainly will surpass 1 trillion the scale, the net buys will become prairie. However, in the bullish market, he also has a layer of deep concern.

According to his introduction, 2011, Yi View has investigated more than 200 traditional enterprises to do the electricity business, the results found that 32% ate regret medicine, because the online business impact of the offline business, had to downsize the electric quotient of this piece; and 73% ate back grass, "a year later to do the electric business planning."

These two slightly overlapping dimensions indicate that the traditional enterprise electric business road is not smooth sailing, but stumbling.

Zhang Ju This summed up six reasons, including unclear positioning, the mechanism is not smooth, the pattern is not enough, and finally summed up to "improper employment."

Zhang Yong gave a warm response to this. He said that the traditional enterprises to do e-commerce, will face three problems, and "nothing to do with the matter, are human problems", in particular, is the enterprise DNA, talent and organizational security issues. Zhang Yong believes that "the field of E-commerce needs bottom-up innovation", "no one is learning Internet origin, to boldly cultivate young people"; Finally, from a company's electrical business sector ultimately to report to who work can see the response level between departments, "the result is completely different."

Obviously, Zhang Yong has pointed to the end of the talent problem euphemistically, for a business, is the boss.

Perhaps because of the boss, seven Wolves, general manager of the Zhongtao is willing to use a more straightforward way to express in public: "The intrinsic brand of the success or failure of the electric business depends on the leader, the leader's vision and the mind determines whether the electric trade routes can go farther." Thus, he further asked: "Corps team, is the independent regiment or ensemble?" ”

The discussion of this retreat level is of great benefit to the traditional electric operators. Nor does it affect the core challenges they face from another perspective.

Yi View E-commerce Consulting Center General Manager Fung Yangsong adopted the form of truthfully. He said that different traditional enterprises in the electronic business challenges are not the same, roughly can be divided into three categories, one is offline manufacturing enterprises, the second is offline retail enterprises, three offline services enterprises.

Among them, offline manufacturing enterprises can be divided into two kinds of strong and weak brand manufacturers, the former core challenge is value positioning. If it is simply to sell products as a new sales channel, but Blinders is overqualified, and it is easy to fall into the fear of limited online, and offline business conflict, "damage" the brand image of the hesitation anxiety. The correct approach is to see the electricity business channel in the operation of customers to create brand, improve the overall business efficiency of the "big use."

And for more vulnerable brand manufacturers, should pay attention to business positioning. After all, the marketing environment of the Internet, the information of the buyers and sellers is more transparent and symmetrical, consumers have more choices, therefore, competition from a single channel competition into price competition and brand competition. The consequences of unclear positioning is painful, it is inevitable to eat "regret medicine" or "Back grass."

Fung Yangsong said that for offline retailing, the challenge of picking mode is category planning. The face of a dazzling array of goods, what not on what, how to price, need to weigh repeatedly; at the same time, in the business development to a certain scale, category expansion path should be how to choose, is also cautious things, dishonesty careless. As for the property model, unfortunately, in his view, to date, there is no successful example ...

Obviously, to solve these problems, including the customer experience of offline service, must return to the original point: talent.

But what is the situation of the traditional enterprises ' talent reserve in the electric business? From the small and medium-sized Enterprise Internet application situation can be seen.

Recently, CNNIC Internet Development Research department deputy director Jiangong pointed out that the domestic small and medium-sized enterprises, 90% use of computer office, 85% use of the Internet, the use of the main purpose is to publish information and business contacts, but also relatively simple. As early as 2009, the Internet use rate of foreign enterprises reached more than 90%. The most important thing is, in the small and medium-sized enterprises, the establishment of the site or shop proportion is only 48.1%, corporate Web site has a dedicated team responsible for only 22.5%, nearly 60% of corporate sites on average one months are difficult to update once.

"Most companies do not have the site as an important territory for information release," Jiangong expressed concern that "the level of utilization is generally low, that the site for their own traffic and orders of enterprises accounted for only 18%." The website does not become an e-business tool. ”

Obviously, under this kind of background, the traditional enterprise must take the road of the electric business to be good, even if can dig to the talented person from the existing electricity business market, it is tantamount to a drop in the bucket.

Successful Gene

The boundary between "electricity" and "Shang"

So does this mean that the traditional enterprise is not going to go on the road of electronic business?

To answer this question, we have to clarify a point of view, the success of the electrical business is to rely on the "electricity" (Internet) genes or "quotient" of the gene?

In other words, if the "electricity" of the gene is decisive, then, the traditional enterprise in this battle, almost has not yet to play has been defeated, the pure electric trader can rest assured to sleep: Anyway, the market so big, competition can also be divided into a cup of soup.

But what if it's not? What if the American version of the electric quotient is reproduced in China?

"In the United States, there is no doubt that the genes of the business are more important, because there are nine or ten traditional companies in the electricity business," said Kosching, president of Yili. And in China, the traditional enterprises do well, just a suning easy to buy. "He believes there is a deep element behind this stark difference.

Chen, senior vice president of China, has lived in the United States for eight years, he believes that the main reason for this difference is that the United States business is very mature, so, "electricity" factor, for them is the icing on the cake, more than a tool. But in China, "a large number of consumer goods and the brand of daily necessities has not been completed, thus, the wave of the electronic business, it is likely to be the completion of the brand of electronic business process." Every guest such brand, may not exist the traditional enterprise's foundation, it completes several processes in one jump. ' Electricity ' and ' quotient ' may be mixed, but ' electricity ' is more important. ”

This "mixed theory" has also been recognized by the top grade discount eon. His point of view is to complement each other, to achieve a harmonious state of the upper. Therefore, such as Jing Dong, Fank such a pure electric business enterprise, may want to improve the "business" aspect, while the traditional enterprises should be in the "electricity" on the lessons.

If this view is further advanced, then, as Lei, the director of the Ministry of Electronic Commerce, said, improve themselves, "first look at what they are the gene, and then make up the part of their lack of", of course, the more later, "business" factor more important.

Perhaps more certainly, in terms of the nature of business, electronics is more of a means. Zhongtao, vice president of the Seven Wolves, said from the philosophical point of view, do not have any electricity quotient two yuan opposite thinking of thought, should also introduce the standard element, because enterprise but different. At the practical level, he agrees with Zhang, vice president of Anta: "It's hard to imagine a person who doesn't have a traditional business doing well." E-commerce is also a huge challenge to him if there is no real business in the building of a brand. ”

This is not a falsehood. It is reported that last year, the national industry Web site more than 12,000, the total investment of more than 4 billion U.S. dollars, but the losses add up to more than 2 billion dollars.

"The Internet-driven e-business era is over," said Cao Yining, general manager of the Electronic Commerce Division at UTC. "In this competition, there is no core competitive products, good brand image, perfect supply chain, industrial chain management enterprises are difficult to survive." ”

At the same time, he is acutely aware of the traditional enterprise to "electricity" the extreme demand, so happy to "do an advertisement", because "Jiangsu and Zhejiang There are a lot of opportunities, many successful companies want to find the experience of the electric trader for them to play."

Dong Xinda, vice president of the shoe network from Fujian, has long been dealing with two or three-line footwear brands, in his view, for these enterprises, business is the first, but in the user transformation, "Electricity" will also play a very important role, and the shoe network itself, with the advantage of regional advantages to achieve a strong supply chain, has laid a platform for the current "business" Foundation.

But if you think that "electricity" is only for traditional enterprises, it is too absolute. NetEase Coupon CEO Xiao Yuyan said: "NetEase's gene is ' electricity ', we want to achieve success, we have to put our ' electricity ' gene play to the incisively and vividly state. Xiao Yuyan that "Shang" is invisible, but very important, and "electricity" is exposed, and must have excellent performance.

Precision Marketing

Helping the "electricity" gene

Yes, there is no change in the nature of business in the internet age, but abandoning the "electricity" factor is almost impossible, especially for traditional companies.

But it doesn't require you to be a pro. Analysys said: "For the traditional enterprises, it means not to do it from beginning to end, why can't you do not good part of outsourcing to other more effective platform?" "He thinks that if you do the whole system from the beginning, then the cost of the lessons that eventually accumulates," is actually much higher than the cost of outsourcing that you're spending.

Wang, founder and Technical vice president of technology, said that the "electricity quotient" is "commercial power", and that the business is the only means of electronic. And he and his peers to do is to use the modern network technology, to help the traditional enterprises in the road of the electric business run.

In the site construction level, the search President Chen Yu that the traditional level of the construction of the station model, such as software models, self-built team Model has not adapted to the development of the Times, with the rise of cloud computing, in the future, the cloud service model will become the mainstream of the construction station. The size of the global cloud services market will exceed $120 billion trillion this year, according to Gartner, the US Research Institute, and by 2014 more than 1/3 of new enterprise-class web apps will be created and deployed on the "Application platform Cloud" and grow by more than 30% a year. He said: "In the future, building a website will be as easy as a puzzle." ”

Further, the traditional 4A advertising companies have been unable to help companies on the road to go farther, emerging digital marketing media will become the protagonist. As Shiwen, the chief operating officer of the media, said: "Only talk about creativity, talk about the media and do not master the network of emerging technology digital advertising companies, hold not live!" "Triple network integration of the background, network media access attributes will become one of the core marketing, comprehensive integration of various cost-effective media and the overall scheduling will become a trend, all this is to" give the target audience want content. " "Google pushes display ads, and Facebook pushes ads according to the interests and relationships of audiences," she says. ”

Dongxu, a senior analyst at Analysys, believes that social media marketing will run through the entire process of electrical business enterprise Marketing, in addition to display ads, keyword search, video ads will also make a full eye for advertisers.

However, as "Iclick Love click" Founder Wu Youping said, the rapid evolution of online media, increasingly complex online marketing ecology, even in the industry may not be clear, the traditional enterprise advertisers will inevitably be a bit at a loss. But ça, the key to the high conversion rate of electric quotient, is still "data, technology and consumer insight".

The Solomon sword that cracked these puzzles is based on RTB (real-time bidding) related technology as the core of the Internet advertising trading platform Adexchange (similar to the stock Exchange). The related DSP (demand side platform), SSP (supplier platform) can make the Internet advertising display more efficient and transparent, effectively improve the ROI of advertising (ROI). Although these are still at an early stage in the country, and each company's data analysis system is independent, there is no reason to deny that it represents the future trend.

This is what Wang, vice president of technology, said, without a wide net can also find valuable new users, "fine operation can continue to ' fishing ', to guide more valuable new users; The data driven is to better ' fish ', enhance the user stickiness."

"Percentile technology," chief operating officer Zhang Shaofeng said this year January 8 February 6 in the catwalk network personalized recommendations For example, the average customer price growth rate of 140.12%, the average number of purchases of commodity growth rate of 21.01%, the average purchase number of growth rate of 19.5%.

The further development of data deep technology is bound to inject a strong impetus into the optimization of "electric" genes in traditional electric power providers. And all this, is to let the electrical business return to the essence of "business", less detours.