Where to go: the future will shift to the C2B model

Author: qiping

The field of business, the territory of the competition intensified, the cat, Beijing East, Suning catch on the fight, set off "the history of the most powerful electric dealer price war." This phenomenon reflects the fact that China's E-commerce is currently dominated by the "price war" model.

Behind this phenomenon, some kind of business mechanics dominate. The most basic mechanical relationship of E-commerce in China is the relationship between pony and cart--e-commerce this pony accounts for less than 5% of the turnover, while the real business of the cart accounted for 95%. Price warfare dominates China's e-commerce, which is determined by the relative relationship between the pony and the cart.

We can analyze this relationship from two aspects: one is to explore E-commerce this pony, how to be subject to the real business of the car constraints, explain the price of electricity dealers behind the decisive factors; explore how the pony fit the cart, so that they have to fall into the price war is inevitable, explain the reality of the price war of electric dealers The second is to explore how the pony to use the new strategy to promote the wisdom of the cart, out of the inevitable fate. Explain the value source of the rationality of Chinese electronic commerce out of price war.

Where does the trader go? Zeng said: "The business model of the future is C2B (Customerto Business).

The C2B is reasonable because of reality, so it will become a reality because it is reasonable.

It's just a transition business model.

1. The traditional restrictive factors of the development of electric business

1 The electric quotient planet is around the entity star

If the measure of strength in volume, e-commerce and real business in the current strength of comparison, about 5% to 95%.

Compared with the total amount of social merchandise retail, the proportion of net retail sales is still low. According to the Ministry of Commerce data, the total retail sales of consumer goods in 2010 amounted to 15.45 trillion yuan, and the Business-to-consumer data was only 104 billion yuan, accounting for only 0.7%. In the home appliance industry, Skyworth and Taobao, Pat Net, Jingdong Mall and other online channels to cooperate, sales accounted for only about 4% of the overall, Jingdong Mall's total sales of only 10 billion yuan, accounting for household appliances sales market share less than 1%, accounting for Suning appliance sales ratio of less than one-seventh. In the apparel industry, 2009 domestic apparel market sales of 1.3 trillion yuan, and apparel network retail sales accounted for less than 3% of the total apparel retail sales.

This is to provide a new explanation for the price war of the cat, Jing Dong and su ning: If the real business of 95% share is in a price war, only 5% of the electronic Commerce This "asteroid", let its natural can only revolve around the price war. This does not depend on the cat, Jingdong, Su Ning itself is not willing to subjective. The most typical is Ma Yun, has been advocating for small and beautiful, but by the reality of the situation around, the results are more achieved because of large and beautiful. Day cat, Jing Dong, suning popular dozen price war, without him, word, contend is (old) big-who big, who day just live well.

Why is that so? Because China's real business from the overall, has not been out of the big for the pursuit of price warfare as a means to extensive as the characteristics of the traditional mode of circulation, it is like the sun sucking the earth, sucking e-commerce against its own nature, to the law of the real economy in operation. This is the cat, Jing-dong, Suning electric dealer price war behind the invisible macro hand.

2 The planetary trajectory of the gravitational center of the physical circulation industry

Analysis of the physical circulation industry in China, the gravitational center of the planetary trajectory map, we can clearly confirm this point. From the main tasks, support policies and safeguard measures of the circulation system reform and the circulation industry development, we can observe the traditional circulating genes in the 95% part of China's circulation industry, as a traditional agricultural country and traditional industrialized country.

If the Chinese circulation industry is likened to a galaxy, the central star is the so-called "modern circulation system" with modernity as its core, and its modernity--or the modern characteristic of industrialization--is now a national backbone circulation network based on the physical business form rather than the virtual business form. This entity network concentrates the city, the light dispersed countryside, its implied modernization premise assumption, differs from the industrialized developed country, not the factor is spread from the city to the countryside with the help of the electronic commerce, but instead from the countryside to the city (big city, Small and medium-sized town) gathers.

On the other hand, on the platform of Taobao, we can observe the opposite trend of the world, we can see the growth of the three or four-line city is several times the growth of one or two-line cities, the next two years around three years, on Taobao China's three or four-line cities should be more than the sales in the one or two-line cities. This is the "miniaturization and decentralization" of the mainstream abandonment, the resurrection under the condition of information productivity.

The 95% part of the circulation modernization positioning, from the strategic to the requirements of E-commerce has a clear difference. The modernization of circulation mainly locates in the low-grade goal of supplementing the industrialization course. E-commerce as a star on the edge of the planet, only as a part of the strategic elements outside the service, subject to this "semi-agriculture-semi-industrial" modernization positioning, therefore, even if the electronic commerce from the technical point of view, completely can use virtual pinch to break the funding Source of physical space and time constraints, to achieve the urban-rural equivalent development, distributed in the mobile space point to point, personalized allocation of resources, so as to get rid of the price war characteristics of the Chinese-made extensive, because of its small size, it is difficult to become the center of the Galaxy star, let industrialization around it Electric dealers can not get rid of the overall fundamentals of the Chinese manufacturing model (i.e. price war mode), the deepest constraints here.

China also often considers the problems of circulation system reform and circulation industry development, but the common problem is the lack of new modernized orientation. For example, the original domestic Ministry of Trade issued "on deepening the reform of the circulation system, promote the development of the circulation industry" (Domestic trading Office [1995] number 9th), the outset of this is the outdated idea: "The core issue of the modernization of the circulation industry is to improve the efficiency of circulation." "There are problems, as Zeng points out:" It's just a technical way to make the retail sector more efficient than before, so it's hard to see the future of E-commerce. "Because the modern positioning of the world's circulation industry is no longer the efficiency, but the price war in the opposite direction of efficiency."

Because according to the viewpoint of increasing efficiency rather than improving effectiveness, the circulation system is a simple system, which is suitable to adopt the centralized and large-scale traditional industrialization mode. In this way, the idea of inverse with the Internet is as follows: "The state-combined circulation enterprises must change the current miniaturization and decentralization, and improve the organizational level rapidly." "It is guided by the big for the United States," the United States "to fight the price war to reach the scale of the economy, and to this as a requirement to" improve the scale of business capacity "," efforts to achieve the scale advantage, comprehensive advantages of large enterprise groups. " Only in the high-speed development of the electric power, the "weight" from 5% to 50%, in order to from the planets around others, to let others revolve around their own stars.

2. To adapt to the traditional reality by the way of price war

1 The current situation of the electric dealer price war with great beauty

The current market is in the primary stage of development. One of the characteristics of the primary stage is that the electric business service enterprises to compete for market share and fierce competition, large and not strong. In the competition, only the big enterprise can survive, it causes the enterprise to be bigger as the goal, launches the investment competition. In the support of venture capital, businessmen do not hesitate to invest in manpower, logistics, promotion and so on. Price war is a "big" word.

In the big (scale) at the same time, in doing strong (profit) but difficult to do. On the contrary, competition is mainly in the direction of the loss of profits. With the support of venture capital, the company has been making price reduction and promotion. Every customer prudential product said, "although the daily sales of nearly 6 million, any customer-prudential products have been in the loss, the loss of the number reached billion." "Jingdong's gross margin is not higher than 10%, while the gross margin of Gome and Suning is about 17%."

The real advantages of electronic commerce in improving efficiency (that is, the efficiency of the relative complexity, or sensitivity), the more complex and diverse, the more the advantages of the electric quotient to play. Only the pursuit of large for the United States, e-commerce efficiency is not necessarily higher than the real business.

2) to adapt to the reality of the Four

The price war of electric dealers reflects the adaptation of electronic commerce to reality under the condition of underdeveloped conditions:

The first aspect of adaptation is price competition. The rise of group buying, E-commerce is to adapt to the performance of the real business. Entity Business Intermediate link exists profiteering, has induced the rich user resources The electric Commerce website, by the low price competition for the mode of prosperity. The most active field of network sales mode innovation, is not differentiated and personalized, but a variety of price competition, such as group buying, limited buying, second kill and purchasing mode has attracted a lot of netizens attention, but also expanded the site's marketing power and sales. From the price competition causes the electric business innovation to the extensive direction to turn upside down. For example, the use of department stores as an effective way to increase sales and enhance risk-resistant capabilities. For example, when the book is getting lower and smaller, expanding through the department store, there are already 1.5 million kinds of goods.

The second manifestation of adaptation is cost competition. The cost advantage that serves as the incidental role of electronic commerce is first played. For example, some electrical manufacturers inventory turnover rate of 50 days, because the Jingdong Mall inventory turnover is only 11 days, and the real business for 50 days, so pull the traditional retail enterprises Suning, Gome, Wal-Mart, Yintai department stores, Carrefour, etc. have dabbled in the field of consumer. On the contrary, the difference and diversification advantages of the electric quotient are limited by the traditional conditions.

The third manifestation of adaptation is in the channel, the electricity merchant widely uses the line to combine with the line form. For example, Macaulay invited more than 400 entities to join the store, the entity business Jenschen in one or two or three line cities.

The fourth performance of adaptation is self-built logistics. Due to the underdeveloped physical business, the third party logistics development is poor, often restricting the development of E-commerce platform enterprises. Some companies have to spend huge amounts of their own logistics. Jingdong Mall in recent years will be the financial capital of 70% for warehousing and logistics construction, in Beijing and other 5 cities completed a logistics center layout, the current three-tier logistics system has covered 50 cities nationwide.

From these four adaptation can be seen, not the electric power in the unique advantages of the traditional business, but with relative shortcomings to drive the traditional business, that is, lower than the real business costs this point, to complement the unfinished business industrialization of the class. This leads to the homogeneity of the enterprise competition, the performance of the commodity category, the same business model, did not form a differentiated competition.

The electronic trader is free from the evolutionary direction of traditional gravity:

The big data age is small and beautiful c2b

Although traditional business is powerful, but it has insurmountable shortcomings, such as Zhao, deputy director of the Department of Consumer Economics Research at the Ministry of Commerce, said: "The social creation of a large part of the wealth consumption in the circulation link, which has a heavy burden on the Chinese economy, hinder economic restructuring, but also push up the price level, hindering the release of ”

But in the internet age, this is not inevitable. E-commerce does not necessarily go to the road of price war, it adapts to the reality at the same time, it can also play its own rationality. With the further development of e-commerce, small quantities of many varieties of electric dealers will rise. Amazon sells more than 30 million kinds of goods, Jingdong Mall merchandise But 100,000 kinds, the Chinese market because of the small and beautiful potential is very large. E-commerce can break free from the traditional gravity of the real business as long as it plays its own. In this direction, the most fundamental way to go is c2b. Alibaba as the representative of China's E-commerce service enterprises are in this new direction to explore.

1. The real business model of e-business in the future is C2B

The business itself is only a form of transition leading to real e-business. It is attracted by the gravity of the traditional business model, the most important thing is that it is the same as traditional business, is the core of B, from B, the last to reach C. The difference between e-commerce, fundamentally, is not simply to improve the efficiency from B to C, but fundamentally reverse the position of B and C, with C as the core, from C to B, to achieve "reverse production" (producer and Consumer relations reversal).

2, C2B value chain of "production and reversal" of the four Links

1 The first driving force of value chain: the source of consumers as information flow

Zeng that the standard mode of business is the mode of operation of the traditional industrial economy era, with the development of the Internet in the future, consumers ' voice is getting stronger, the first impetus of the future value chain will come from the consumers, not the manufacturers. It is only a transitional business model, and the real mode of e-business in the future lies in C2B. "The future of the business model customization will be the mainstream." Its requirements are personalized needs, many varieties, small batches, rapid response, platform collaboration, this is the future we can see. ”

The key point of C2B mode in front end (i.e. customer information gathering end) is to aggregate complex and diverse consumers through Web2.0 polymerization technology, which makes the traditional consumers ' position of disadvantage be reversed. Buying is a bit of a good thing, it's a primary form of reversal. In fact, SNS, search engines are based on consumer behavior as the starting point of the economic process, and finally to the producers of the reversal of the production of commercial forms. From the point of view of the business, it can be understood as to put the bill on the starting point of the economic process and realize the oneness of human beings.

2 the second link of value chain: Information flow reorganization--massive unstructured data processing industry

When the problem of the first driving force is solved, the following will be confronted with the massive data processing of consumer behavior. The electronic commerce of the big Data age, is to pass cloud computing, to the massive unstructured data, carries on the data processing processing.

After the value-added of data processing industry, the data flow will be in the new direction of output reversal, and will be the integration of capital flow, logistics, and finally the realization of the reorganization of the business flow.

3 The third link of the value chain: business-flow reorganization--advertising, channel and supply chain integration

According to Zeng's forecasts, in the reorganization of business flows, the change will be advertising, channel and supply chain. He believes that the business model is a large-scale, pipelined, standardized, low-cost operation of the traditional industrial economy, and inventories are a deadly point in its natural model. Inventory is the human single can not be one, through the reorganization of business flows, the elimination of inventory, the essence is to achieve a single one.

The first change is the advertising market, Google through the pay for configured (P4P) business model, fundamentally changed the traditional advertising business model, advertising from the original more inclined to branding such a value proposition, Turned to the precision marketing platform. The second step of electronic commerce is actually the network of retail platform. Next, is the supply chain of real-time collaboration platform, in other words, only when e-commerce from the network retail to the supply chain real-time synergy, every link in the value chain in the Internet to truly realize, it is no longer the line under the separate isolated island.

According to Zeng, when these three streams are through, in fact, is the big data of the times. The business model that big data really supports is C2B, not business-to-consumer. Because you really have to be able to make mass customization to so many consumers, you actually need a redesign of the industrial chain, the depth of the intermediate data mining and the exponential increase in matching accuracy, which is a necessary infrastructure for this business model. This is the future we can see.

4 The fourth link of the value chain: According to custom-made, people single oneness

The person of single person refers to the producer, refers to the consumer alone. Finally, B is the business of all walks of life, will achieve order production. According to a consumer information generated by the order, in the whole society to allocate resources, organize production.

In the reversal of production, most manufacturers can give Taobao sellers to do a 100,000, 500,000 batch order, but it is not possible to give a Taobao seller to do a only 500, not to mention only one single one. In the production and reversal conditions, with flexible production capacity of suppliers can meet their many varieties, small batches, rapid response capacity. The traditional supply chain is basically about 28 days of speed turnover, and the internet requirements are 7 days or even the future will be faster. At present, the reversal of production and the combination of man and one have been fully realized in Haier's manufacturing.

Where does the trader go? The future will not be a simple continuation of the past, but may be a leap and reversal to the C2B.

Source: "Internet weekly"