Gome's electric business to start again: Why the War open platform

(from the media public number: Laohushuokeji or old nonsense technology)

In a year or two, Gome seems to have a bit of a taste in the field of online electricity business, which is actually a strategy to conserve strength and accumulate thin hair.

On September 3, Gome finally sacrificed big moves to open the platform to launch a new offensive battle.

September 3, the Diaoyutai Guesthouse in Beijing, Gome held an open platform strategy conference online, announced the implementation of the "first-year free Commission" policy, from the original home appliances, 3C Digital category to office supplies, maternal and child supplies, clothing, daily necessities, such as all categories of expansion. Nearly thousands of suppliers gathered in a hall, is a "tall" open platform feast, since then, Gome "self-open platform" model formally formed.

Gome Online said that the future platform revenue will account for 70% of Gome's total income, and the terms "to ensure that sales prices lower than other electric dealers" to restrain, in order to use the "low price" to attract more consumers. To this end, Gome online set up hundreds of billions of targets.

The crux of the matter is, why did the Gome power supplier choose to start again at this time with open power, can it succeed?

1, "free" destructive intrusion

According to the latest data, 2014q2 China online shopping market transaction size of 624.31 billion yuan, up from the same period last year 46.1%, the market space is huge. Gome in fact very understand that the development of electricity business should be the general trend, and the reality is that Gome has improved, but the strength is slightly thin.

According to the latest earnings report of August 25, Gome released the first half of 2014, the Gome online turnover increased 53.7%, of which the second quarter to increase 64.8%; Independent user visits (UV) year-on-year growth of 43.8%. According to the consulting data, Gome's online share of the domestic electricity market has risen from 1.4% in the first quarter of 2014 to 2% in the two quarter, surpassing the Amazon, when it jumped to fifth place, among the top group of electric dealers.

Data can speak. These show that Gome's electricity business has been on the rise this year, but his ambitions are far more than that. Moreover, the first half of this year, Gome's overall sales revenue of 29.12 billion yuan, up 7.4% Year-on-year, the profit of about 690 million yuan, an increase of 115.2%.

This is also Gome's performance for 6 consecutive quarters over the industry level. With enough cash on hand, it is natural to attack the electric dealer.

An open platform is an excellent strategy to attack electric dealers.

Open platform is the war, this is with "gun in hand with me" of the gun and sword array of the effectiveness, not only gome this strength, but open Platform Sword Array Encirclement Force, with open platform can quickly increase sales revenue, essay recruit, can say gome some thieves, use is skillful force.

For many of the settled business, this is a merchant platform, anyway is 0 commission, as long as you have good enough, gome to take Taiwan you opera, sales of income into their own pockets, one more sales channels, a more income, why not? Who doesn't like to earn more!

And, now, Gome, with its rich capital, can just let go and sacrifice those commissions. You know, the listed company Gome is not all the assets of Gome, Gome also has 300 stores around the unlisted assets (including medium-sized electrical appliances), this piece of strength should not be underestimated.

Before, the sky Cat is because of high Commission, so many businesses unprofitable, now Gome for the first time in the industry to implement Zero commission of the "free" destructive intrusion, nature can be in the investment level to kill a new road.

2, offline store to ease the flow of short board

However, Gome online traffic is not enough, still need to strengthen, in the short term Gome online platform or will be difficult to support the open platform to the ideal trading volume of businesses. But that doesn't affect the big picture. The general direction of open platform absolutely right, as long as the direction is right, not afraid of the road far.

It is noteworthy that some netizens and comment experts pointed out that "the trend of the electric business is unstoppable, Gome line store is a burden." But in the eyes of gome and many industry bosses, these offline assets are not icebergs but jinshan in the future mobile internet age.

You see, Ma Yun spent 5.37 billion Hong Kong dollar shares revenue 4.5 billion yuan of the offline business; just last week, Tencent, Baidu and Wanda pooled 5 billion to set up a joint venture O20 company, and Tencent Horse and Robin Li also value offline stores. The boss's vision is undoubtedly the most forward-looking, they do not put the offline store as a burden, but a valuable asset. In the future, thousands of stores will be gome to carry out O2O business bridgehead, if each store on average daily 1000 people patronize, the whole year will usher in hundreds of millions of passenger flow.

If the hundreds of millions of passenger flow under these lines can be skillfully introduced into each other, the flow of the so-called open platform's Achilles heel will be resolved.

In addition, in the opportunistic and moving years, Gome's road to the least to avoid the opponents of the plight of the big pit. Gome announced in May this year, has realized the logistics system and the separation of branch offices, the establishment of "letter logistics", the line shop as a logistics delivery point and pick-up point, greatly improve the utilization of the Gome line stores, become its important weapon in the O2O era. This is also Gome and Beijing east to take the biggest sign of differentiation.

After all, the defeat of Jingdong is definitely not another jingdong, with the help of O2O, Gome Online can focus on the resource advantage, hit the east of the short plate, may achieve from another feature dimension gorgeous reverse attack. Gome all over the country's major cities under the line shop can become users online shopping experience shop, from the point of repair, can also become O2O open platform and Warehousing Logistics Center, improve distribution efficiency. And these are the pure electric business Jingdong does not have, if these offline advantages and online effective linkage, the power of open platform will also increase greatly.

For offline and online linkage, the author put forward a little advice:

(1) Store emphasis on experience, now speak user thinking, from the beginning of the user into the store, store atmosphere, staff guide, product display and other aspects to improve customer experience, such as to create a home experience space.

(2) Heavy service, personnel training, communication skills, can learn how to do seabed fishing and other services.

(3) After the sale of electric dealers generally rely on the brand, Gome itself has the cooperation of third-party resources, can fully tap after-sales service, such as in the United States to achieve what level of consumption, to provide a free door-to-door a variety of home appliances cleaning, overhaul, etc. to enhance customer stickiness.

Of course, Gome Hao said its open platform to become hundreds of billions of electric business platform, in the short term to gome is also quite difficult, after all, the fierce competition, the so-called electric Roman is not built overnight.

In short, Gome online open platform to let people see the hope, its traditional channels and the relationship with the manufacturers in the open platform to play out, and then combined with the offline store resources, the future can be. What's more, all this must be excellent for the industry and the users, the new forces to kill, the balance is broken, the industry can continue to move forward.

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The author of this article is Lao Hu, reproduced please be sure to indicate the author and from the media (from the media public number: Laohushuokeji or old nonsense technology). can also scan the following two dimensional code attention, your attention and sharing is my greatest motivation.