Group buying website Fierce fight

last year, the most exciting thing in the field of electrical business, than group buying website Fierce fighting. However, just over a year ago, group buying network has been aihongbianye, "burning money" is still continuing, but the protagonist has become more crazy to the Business-to-consumer. In just half a year, domestic manufacturers have set off a tricycle price war, one more ferocious. Will the same result be the same as using the "burn money" pattern to preempt the market share and the blind pursuit of scale?

Crazy

"Burn money" only to gain market share

This April, Suning easy to buy all products prices down 20%, directed to Jingdong, provoked the first price war this year. June, Borrow Jing Dong "6 18 shop celebrates Day", the day cat, Suning is easy to buy, when, Yi Xun, Bowser and so on concentrated firepower "encirclement and suppression" Jing Dong.

August 15, led by Jingdong, Suning, Gome, known as the "worst price war in history", the electric dealers claimed to beat each other at the lowest price.

In this respect, Alibaba Secretary General Shaoxiao in an interview with the commercial newspaper, said: "They are not competing for electricity, but the next 3 years, the back-end supplier control." Shaoxiao said, who finally control the supplier management, control the main channel, in this industry can do the boss.

However, whether it is a premeditated plot to make a good show, or to the performance and inventory pressure caused by the saliva war and even capital war, all show the electric dealer "only price war" marketing strategy. Behind it is the electrical business development model of the sleepy.

Shaoxiao said that at present, the electrical business is generally caught in a development error blind pursuit of scale. What is the scale? First rely on a large amount of money to hit, the second by the price, the third by expanding traffic. In the face of fierce competition, the major electric Shangdou want to stabilize their position in the market dominance. With the help of price war, we can enlarge the market share, squeeze the survival space between the rivals and the small and medium electric dealers, and enhance their competitiveness. Therefore, knowing this is a doomed to "kill 10,000 self damage 8,000" war, the electric business giants are still playing.

These three strokes are all wrong. If today still use these three strokes, can only continue to "do not make money" this road to go down. "Shaoxiao bluntly, the user finally recognized not Jingdong, nor Su Ning, but the price, a lower price of the electricity dealers, users will soon turn to, that scale what use?"

Awkward

Huge sales but hard to cover losses

Chinaventure in the group's data show that from February 2011 Group Purchase Site 24 voucher financing, by the end of 2011, a round of 600 million yuan financing, the domestic group buying industry no new funds to enter, as of August 2012, group buying industry financing is zero. The group's 800 statistics show that domestic group buying sites disappeared more than 2000 a year.

Similarly, the business of selling price wars and claiming that their brilliant sales are behind the embarrassing situation of their losses.

In the "8 15" price war on the day, Jingdong Mall chairman and CEO Liu has High-profile announced sales of more than 200 million yuan, but then has been tight-lipped about sales data. Suning, etc. also said that sales are geometric multiples of growth, but there is no profit data.

According to the China E-commerce Research Center Data statistics, the current domestic almost all large enterprises are in a loss or not to make money, through the reflection of the capital market can also be discerned.

Suning Appliance (002024, Stock bar) 2012.5 Annual Performance Express, Suning appliance net profit 1.7 billion in the first half, down 29% year-on-year, the performance is far below market expectations. Since April this year, its share price has been declining trend.

In July, Liu published the first half of the financial data on Weibo: sales rose more than 120% year-on-year, and turnover rose 161% per cent year-on-year. But Liu also admits: "Only one figure is more ugly net profit is negative!" ”

In addition, Dangdang lost 284 million yuan last year, the first quarter of the total net revenue of 1.0836 billion yuan, net loss of 99.5 million yuan.

Behind this crazy competition, more and more of the small and medium-sized electric operators have opted out. According to the commercial newspaper reporter understands, including le Cool Day mall, the big warehouse and so on the scale type electric business enterprise, has already closed more than 10, and this number still expands unceasingly.

Signal

Electric quotient bubble begins to show

This year, the field of electric business also launched a large-scale "layoffs." According to the China Electronic Commerce Research Center statistics, since January, at least 12 electric business enterprises have been plunged into layoffs. China's E-commerce Research Center believes that at present, domestic enterprise enterprises generally with huge losses "burning money", Happy Rodeo in exchange for the market, relatively impetuous, "layoffs" means that the electricity quotient bubble began to appear.

"Frequent layoffs in the field of electrical business are signals. Lei, director of China e-commerce Research Center, said to the commercial press group buying site in the forefront, there are a large number of the capital will "kidnap", forced to sign the "gambling agreement" of enterprises, can neither achieve the capital market IPO, and it is difficult to attract capital injection again, will be eliminated in the price seesaw.

Internet veterans, Business Treasure Chairman Deliang also said on Weibo, the 2012 internet bubble or will be shattered again, a large number of "fashionable concept" packaging, relying on VC "blood transfusion", and the lack of its own "hematopoietic" function of the power of the site, will accompany this round of bubble burst and gradually withdrew from the stage of history

Return to commercial nature

On the scale of first margin control cost

Lei, director of China e-commerce Research Center, said that after the cloud, the entire industry should be quiet down to reflect on the electricity business, especially the customers and group purchase website profit demand, will appear more urgent.

Clearly, some in the industry are already acutely aware of this.

In Beijing East and Su Ning, the United States to fight the death, Alibaba in the outskirts of Hangzhou, held a "pulse of electricity dealers to make money is and not" the meeting. Dozens of electric dealers gathered together to discuss the profitability of the electricity business.

Lok Amoy Network CEO Bi Sheng Frankly, before everyone in the struggle to scale, now Amoy is to look at the long-term mentality, is the mentality of the next 5-10 years.

As early as the third Electric Business Growth Summit Forum, Bowser founder Zhiquan said: "After the scale of the war, on the sheer size of the way to do, will not be so interested." "Zhiquan said that the bowser network began to set the business model is first to do the scale, and then do customization, through customization to form a relatively good profit. However, the reality is that the scale of the game so that we can not see the concrete effect.

In this respect, Alibaba Secretary General Shaoxiao gives the suggestion is, regardless of electronic commerce or traditional sales, should die bites the nature of business, clinging to three: first is to protect gross profit margin, followed by control costs, and then in the above two to finish on the basis of talking about scale.

"Don't do things without gross profit margins, it's that simple." Shaoxiao said, there are many ways to protect the gross margin, do own brand is one of them.

Shaoxiao analysis says cost control itself can never be wrong. The cost of warehousing and logistics costs, Yahuo backlog of costs, staff costs, in order to do the scale, a lot of electrical business in these areas have done a disorderly expansion, how do not lose money?

What about the scale? The answer is yes. But Shaoxiao that the scale should be a healthy, sustainable and truly long-term development on the basis of the first two articles. How to add new customers, retain the old customers, is the vertical electric business needs to do a good job, do good quality goods, strengthen the store brand, starting from the details, let the user recognition, is the store long-term brand and core competitiveness.

Shaoxiao said, because the scale as a direct pursuit of goals, and gave up the previous two standards, is a large number of vertical electric operators in recent years took a detour, hit the wall reason.