How to deal with the capital winter in electric enterprises

For the development of E-commerce industry, capital undoubtedly plays a key role. The past development has proved that every industry has to go through a period of frenzied capital investment, E-commerce industry is no exception. 2011, as the Internet's most development potential of E-commerce, after nearly a decade of accumulation, ushered in a major outbreak, accompanied by the enthusiasm of the capital, whether it is a comprehensive platform, business mall, vertical class, or traditional brands and third-party payment enterprises, logistics companies, As well as companies to provide solutions and services for the company and other industrial chain upstream and downstream enterprises, have been the strong impetus of capital. Although all aspects of E-commerce seem to be developing rapidly in the care of capital, the problem is also lingering.

According to the data, in the first half of 2011, the disclosure of China's e-commerce investment incident occurred in total 44, and the total number of E-commerce investment reported in 2010 has only 60. Moreover, the amount of investment disclosed during this period amounted to $1.193 billion trillion, creating a new Year's record. But the problem that cannot be ignored is that most e-commerce companies are not profitable or massively profitable at the moment. At present most E-commerce companies to burn money to scale. After the scale of the money, strengthen the control of the supply chain, to obtain a low discount price, and then used for promotion, advertising, rapid expansion. And logistics is undoubtedly the most expensive place for electric companies to burn money, and in the past, the high growth in exchange for huge losses is actually more of a bubble. After huge investment, capital gains are expected to remain very good, but capital is becoming less tolerant, expectations are getting higher, and investment is becoming more rational.

A brutal fact is that the prime time for the electricity business to finance has passed, and it is expected that from the second half of this year, financing will enter the cooling period, although this argument is somewhat questionable, but it is realistic. In the future, venture capital investment in the E-commerce industry may be more calm, financing will become difficult, high valuations are not as easy as before. By then, vertical giants can rely on their existing size and cash reserves to eke out winter, while small and medium-sized electric operators will face a self-sustaining dilemma after a blood transfusion break.

In recent years, investors ' willingness to invest in the electricity business has obviously started to drop, and the companies that are worth investing are running out. Electric business has been hot for nearly two years, vertical investment has been very crowded, especially Tencent, Baidu and other internet bosses of the big investment, acquisition more make competition unusually white-hot. Many people in the industry also believe that the "Matthew effect" of the electric business industry will be further highlighted with the choice of capital, flow, capital will deepen the division of the industry, and the flow in the promotion of rising costs, and finally into the embrace of the strong.

In addition, the electric business enterprise is easy to appear is the fund shortage, the influence puts on the advertisement, causes the flow to fall, the order reduces, then encounters more challenges in the financing aspect, forms the vicious circle, even appears the fund chain to break. For industry development, "germination-eruption-precipitation-development" has been proven by many practices, coupled with the rapid development of suspected bubbles, the 2011 will be the industry precipitation, the market will squeeze out the water, puncture those advocated bubble, but the whole electric business industry will not be fundamentally shaken. " In the near future, the Internet economy will carry out a large-scale "shuffle", most of the uncompetitive power of the small and medium platform will be eliminated. Now many front-line operators have received a lot of financing, cash flow can at least guarantee a period of operation. However, many small and medium-sized enterprises need to cultivate internal force in cash reserve, optimize operation and management, further improve the advertising structure, improve the level of control cost and conversion rate. In addition, should optimize the inventory management, in order to meet the second half of the inventory Yahuo test, in order to face more serious situation ready. The second half of this year to the next, the development of the electric business will usher in a critical period, the survival of the fittest law is still applicable, the industry is to come in winter, but this winter is not all electric business enterprises in the winter, only those who are not ready, no winter food enterprises, this winter is really