Horizontal expansion of product lines may not be suitable for vertical electric operators

"Billion Power network News" August 23, on the famous electric business enterprise quilt explosion because of a large number of unpaid suppliers to suspend operation of the payment, Wine Mei Network CEO Luide that many of the vertical electric business encounter difficulties, the root cause lies in its industry in the depth of the field is not enough, can not build industrial chain advantages, the establishment of competition barriers. "Horizontal expansion of product lines may not be suitable for vertical electric operators, the industry can even determine the depth of the vertical electric business life and death." ”

Wine American Network CEO Luide

Luide pointed out that, with the help of existing traffic advantages, day cat, Jingdong Mall, Suning easy to buy, Dangdang, 1th stores and other platforms, such as platform electric business enterprises have chosen to expand the horizontal line of products, hope to be able to reduce their average cost through more SKUs, and its future profit model must be offline under the "store" Mode: That is, rely on the low price to attract huge flow, and then use the flow to attract many brands, including the vertical electric supplier to enter, the platform is through to the supplier to collect entry fees, advertising fees, technical service fees and so on to achieve profitability. "The benefits of the product's own price differentials will be less than the total revenue system."

Obviously, the profit model of Taiwanese businessmen is not suitable for vertical electric operators. In Luide's view, with the horizontal expansion of the platform electric Quotient, the space of the vertical electric quotient will be continuously compressed. To survive, a vertical electric trader must have its own characteristics. "First of all enterprises to choose the market segments to be large enough to have market potential, and secondly, services and products on the relatively personalized, to provide such a large selling venues such as Jingdong can not provide professional, personalized products and services." ”

The cellar of the wine and beauty mansion

Luide to wine in the United States as an example, the reason to choose to import red wine as an entry point, is the wine market is very large, in the past five years on average annual maintenance of 70% growth. According to Luide, the market capacity in the next five years is at least 200 to 30 billion yuan.

Red wine as a non-standard commodity, winery and brand many, even the same winery, the same brand, the year is different, wine taste and price are different.

Luide said that the non-standard characteristics of red wine for a wide range of wines and based on the complex wine culture, consumers can hardly rely on their knowledge to choose their own wine; as a platform-type electric dealer, they provide a standardized service for users, It's hard to be in red wine. This more emphasis on personalized subdivision of the field into a huge amount of human, material and financial resources to meet the specific needs of users.

"This is the opportunity for a vertical electric dealer like the wine and the American net. "Wine U.S. network related to billion power network introduced, and its more than 100 professional wine training in the telephone customer service staff and a circulation of up to 600,000 copies of the" Wine beauty! Life "Member magazine, to provide users with wine knowledge, answer red wine questions, and will be based on the user's past purchase behavior to do personalized recommendations.

At the same time, the wine in the United States almost every week throughout the country to carry out the different size of the cocktail party, small wine tasting in 2, 30 people, large wine tasting will be around 200 people, so that users can get a close view of wine knowledge, experience red wine, find their own products of interest.

Beginning this year, in order to strengthen the user experience, the wine U.S. this year will open 100 online experience shop nationwide, the next 3 years, this number will rise to 500. Through the online experience shop, Luide hope to the wine tasting experience landing, so that users in each region have a fixed experience venues to participate in wine tasting, enhance the ability to taste wines. In addition to the entity's online experience shop, the wine beauty will also open a wine sharing network community where users can share and comment on red wine while drinking.

Luide stressed that the wine-American network will gradually achieve targeted to provide users with a system of red wine solutions. Wine Beauty is intended to provide users with more professional services, convenient experience, cultivate the user's good taste of wine, strengthen the user for the beauty of the stickiness, and then realize the user's repeated purchase.

"As a vertical electric business, only to achieve specialization, the possibility of profitability," according to Luide revealed that the wine in September 2011 by the United States won the domestic red wine E-commerce subdivision of the largest round of financing 80 million yuan, and realize the annual sales revenue of 150 million yuan. This year will achieve large-scale profit.