How to solve the three problems of the electric business

The first two years were a very tragic year for vertical electric operators. In the flow cost to obtain high, the capital market downturn in the environment, a large number of vertical electricity business collapse, such as the purchase of 24 coupons in the field. More vertical electric operators have opted for transformation or mergers and acquisitions, such as the red children by suning mergers and acquisitions, Amoy announced the transformation of brand electric dealers.

The biggest problem in the past is the high flow cost, low gross margin, low customer loyalty due to homogeneity, low repurchase rate. For many of the electric business, almost no repurchase rate can talk about, as long as a stop to hit the ads, orders immediately plummeted. In essence, the electric business should conform to the Basic Law of all economics: have controllable customer to obtain cost (flow cost), have reasonable gross margin and guest unit price, have good brand loyalty and customer to be repeated (repurchase rate). When the market competition to the capital in order to melt money to do the scale, so that there are enterprises 100 yuan purchase, 99 yuan wholesale to the offline business to do sales, how can the bubble not broken?

There are always winners in the market. Let us through the analysis of five kinds of electric quotient model to show how smart entrepreneurs are successful in cobwebs, how they effectively solve the high flow cost, low margin, and low repurchase rate of the three problems?

1. Micro Bo Electric Business

Case: Roseonly

Using the microblog flower shop, the Beast Pie Shop is the first example, when opening a shop using Jingboran's large recommended, won the first batch of fans. To flower art show the combination of moving to buy flowers and sell flowers story, impress the hearts of young people, get very fast micro-BO transmission and Word-of-mouth effect. Subversive is, the Beast sent a shop when there is no site, even Taobao stores have no, just a microblog. To order flowers, just pass the letters. To pay, use the Alipay account!

The rise of microblogs and micro-credit platforms has subverted many of our traditional perceptions. Many of the initial financial constraints of the enterprise, the first time to find that the original user does not have to do a Web site, to do a app; on the contrary, the use of micro-blogging and micro-trust platform can effectively get the spread of the brand. Xiaoping teacher has said that he has invested in an entrepreneur spent more than a year, millions of of the funds to make a website, and then suddenly found that the original site all functions as long as the micro-blog open an account can!

What is the potential of Weibo in brand promotion? Unimaginable big! Who would have thought that after the Beast Pie had succeeded, Roseonly would have been able to counter the trend and roll out 200,000 fans in two weeks. Roseonly's success almost reshaped my understanding of Weibo. Generally speaking, when a concept and brand in a community to achieve the first place, the second to go beyond is difficult. Roseonly's transcendence proves that Weibo is such a fragmented community that no brand can fully occupy the user's attention. In other words, Weibo is an oil field in any area, and it depends on how you exploit it. Even if it's a field that someone else has mined, you can still have a chance to do it. This is the other type of Internet entrepreneurship does not have many corners overtaking phenomenon.

Roseonly's play is simple but subtle. From the crowd choice, Roseonly took the entertainment and professional two micro-blog Big V transmission line. The entertainment line, through Xiaolu and other entertainment stars of the forwarding recommendation, to obtain the favor of women and young fans and multiple forwarding. And in the roseonly it session, through the promotion of its business as a selling point of startups-a lifetime only send a person, rapid access to Entrepreneurial magazine, 36 krypton and other mainstream it media. After two lines of communication have been crossed, a great deal of chemistry has been generated, and Roseonly has gained 100,000 fans in just a week.

Model advantages: Through the packaging of imported flowers, to flower art way to upgrade the overall network of flower industry, you can get higher margin and customer unit price. We know that Mushroom Street to Taobao diversion of the average customer price is about 80 yuan, but also is the electricity quotient, high customer unit price and higher gross margin is roseonly advantage. In addition, through micro-blog hype and dissemination, access to a large amount of fans and attention, the essence is to obtain low-cost traffic and loyal fans of Word-of-mouth spread. This solves the traditional electric business to obtain the high flow cost, the customer unit price and the margin low two big problems.

Model disadvantage: The threshold of flowers category is lower; From the original name of the River North and south of the Sarah-La flower shop to the internet flower Shop after the GE, and finally the industry can see the pattern of the leopard. Although the current roseonly to import flowers, gifts, flowers, story marketing, such as the new concept of the network flower shop to be reborn, but in the long run, how to overcome the flower shop industry dispersed, customer brand stickiness is not high enough this problem, or has a great challenge. In addition, micro-blog is a third party platform, the control is high, the user's sedimentation rate is not enough. In the long run, if the business to be bigger, or to have an independent website to establish independent brand awareness as well.

More revelation

Using the microblogging effect to get cheap traffic and loyal fans, and through emotional marketing to get the brand premium, which we have from the roseonly, the beast sent by the micro-Bo electric dealer. In addition, the small and American electric services that use micro-blogs to localize are a broader revelation for more entrepreneurs.

When I visited Wenzhou, I personally tasted a Wenzhou, a micro-bo cake shop Summerwaycake Summer Black Forest cake, after eating praise. Friends said that the boss is a love with micro-Bo girl, Brainwave opened a micro-Bo cake shop, through micro-BO letters order, did not think of a cannon and red. Because business is hot, the boss not only limit the amount of money every day, the price is a lot, a 8-inch cake sold to 250 yuan, the old customers have a discount of 20 yuan. This is a small and beautiful entrepreneurial business, each Weibo fan, has become a cake shop free propagandist.

In Wenzhou, such a micro-BO food shop is said to have more than 20; you have to admire Wenzhou people's business acumen. As many it entrepreneurs struggle to figure out business models and keep looking for financing, Wenzhou's grassroots entrepreneurs can take advantage of the latest IT technology to do business around them.

2. Industrial Product Electric Dealer

Case: Branch through Core city

As many of the consumers ' vertical electric dealers struggled, the core city, which had been working on industrial electricity dealers, had already heard about the Nasdaq listing. IC Components is a market size of 2 trillion, and in 2005 on the Nasdaq listing and has nearly tens of billions of income of the Branch group, determined through E-commerce within three years to rebuild a revenue of tens of billions of enterprises, and to the United States listed.

Branch through the core city Cogobuy model is not complicated, using Shenzhen as an electronic components industry center status, through the Internet to build a new way of IC components procurement platform. The platform has many international well-known brand suppliers, 3,000 quality products line, 500,000 product models, mobile handheld, consumer electronics, communications network, such as 9 major applications, completed the "one-stop" IC Components Procurement Center. In short, one side is the buyer of electronic components (SME owners), on the other hand is the seller (international well-known brand suppliers). Docking together, it has achieved the core city of industrial products electric business model.

Branch through the core of the city's value lies in the opening of a brand IC components enterprises and downstream of small and medium-sized manufacturing enterprises connecting access. In the past, most small and medium-sized enterprises because of the high cost of offline transactions can not be purchased to brand manufacturers of IC components, only through the scattered stores such as Huaqiang north to purchase. As China's first proprietary IC components, ComTech core city in the past 20 years offline distribution integrated channel resources, put on the line on the front desk, for small and medium-sized enterprises to provide a wealth of authentic brand products. Branch through the core city not only to meet the needs of downstream customers, but also for the upstream brand enterprises to broaden the customer channel. China's annual IC component turnover of more than 2 trillion, 30% of the turnover by 5 million of small and medium-sized buyers to create, ComTech core city can be online channels to this part of the dispersed SME customer demand, for brand manufacturers to expand more potential customers, really create a first-line brand and small and medium-sized bridge access.

IC Components supply chain of the downstream industry in addition to smartphones, as well as PCs, tablets, security, medical electronics, industrial control, energy, automobiles and so on, which only a mobile phone in China's annual shipments of 1 billion, if the number of 200 yuan per unit of the purchase amount of components calculated, Only the mobile phone market IC Components Purchase amount is 200 billion yuan, and the entire IC components industry's annual turnover can reach 2 trillion yuan, enough to match the entire 3C market and the automotive market, but the area involved is broader. Branch through the core city Cogobuy2011 in the second half of the year, the fourth quarter of 2011 platform turnover on the staggering billion.

Branch of the core city model is not a simple to build a upstream and downstream platform, but the self-marketing, from the original procurement, directly to the SME user sales, from the income model, belong to the sales model, in order to earn a profit difference mainly. A wide range of downstream customers, from the core city of the collection model to obtain small buyers can not afford to buy small quantities of prices. More often than not, it's not the price, but the small buyer can't get the goods they want. All the major manufacturers of international components are focused on the supply of key customers. But in consumer electronics today, consumers need more rapid innovation, and even through the social media platform for C2B orders, and then manufacturing, which requires the supply chain in the field of small quantities of high-quality components need more rapid response. Branch through the core city was born.

Model Advantages: We use the general indicators of the business model of the Cogobuy to consider the core city of the self-electric business model, ComTech core City Cogobuy model has the following advantages:

1, a single amount of large: branch through the core city cogobuy of a single sum of 20,000 to 50,000, is the general business mall 50-100 Times;

2, user loyalty is higher: the user's stability rate reached 90%; (due to the main concentration of SMEs, there is no traffic purchase problem)

3, repeat the high single rate: Branch through the core city Cogobuy orders are mainly from the production of procurement, general enterprise production procurement will be maintained in 4 to 10 times per year. (To solve the problem of low repurchase rate of electricity dealers)

It can be seen that for vertical areas, the exclusive customers of industrial products, can effectively solve the consumer field of high customer acquisition price, low repurchase rate, customer unit gross profit margin of the three major problems.

Model disadvantage: Branch through the core city of industrial electrical business model of capital and professional ability requirements are very high, the threshold is higher, not suitable for too small start-up team. But for enterprises with certain industry resources, it is still a very strong business opportunity to cut into the supply chain level. ComTech case can actually give a lot of traditional business owners or practitioners to enlighten, only dare to leather their own lives, and embrace the Internet, you will find new models and blue ocean.

More revelation

Intentional entrepreneurs do not simply because of the core of the city's threshold is very high and frustrated. In fact, the success of the Department of Core City can bring a lot of useful inspiration. Branch through the core of the city's model is to lock customers (no flow of the purchase of worry, and have a high rate of repurchase), their own procurement (can control product quality), high customer price (b) is certainly much higher than the procurement of C. I know a Hangzhou start-up company in Japan opened a Japanese Taobao store wholesale website, they chose some suitable for the Japanese market, the domestic Taobao shop photos (clothes, bags) uploaded to the site, and the domestic price increase of 25% or so priced wholesale price. When Japanese sellers fancy a certain commodity and place an order, quickly in the domestic Taobao shop under the single delivery to the enterprise in Hangzhou Warehouse Center, repackaged packaging, courier to Japan's customers. The company has been in business for more than a year, with an annual profit of 3 million; they even bought a 12-square-metre warehouse in Tokyo dedicated to parcels they sent to Japan. Although this model is not industrial products, but the model with the core city has a very striking similarity: Lock customers, their own procurement (they will be the Taobao store rating, to carry out quality control), relatively high customer unit price (retail change wholesale).

3. Micro-trust Electric business

Case: micro-letter Sell Salted Duck

The Great Wall will be on a mobile internet sharing salon organized in Nanjing. I met an entrepreneur who sold Nanjing salted duck through micro-mail. What they do is simple, the first is to pull the user;

First, pull the user. The company used a number of ways: for example, the establishment of a lot of Nanjing local consumer micro-trust group. In order to attract attention, they take the beauty strategy, directly in the MO and other types of chat tools to see which Nanjing Girl's fans number the most, and then the girl dug over to work. When the group is built on a certain scale, it calls on fans to focus on their public accounts. Because Nanjing's specialty is the salted duck, and the salted duck is the Nanjing person almost each meal must eat food (according to the survey, the whole China each year 1/3 ducks are eaten by the Nanjing people), therefore sells the salted duck to become the company's natural choice. With the increase in the number of fans, the company is also adding other suitable for the Nanjing residents of the electrical goods category.

Model Advantages: Micro-trust dealers have many advantages: the most direct is the equivalent of saving the bulk of the SMS fee. Have a turnover of tens of millions of Taobao merchants calculated, a Nianguang SMS bulk fee, with micro-letter can save more than 10 200,000. Second, the spread of micro-letters is not as good as Weibo, but the information may still be shared into a circle of friends or group conversations. Third, as a result of mandatory reminders push, micro-credit users to push the link reading rate, open rate, and the purchase rate is relatively high.

Model disadvantage: Micro-letter destined to be more suitable for a CRM platform. And Weibo's 45-degree squint is different, micro-trust users will subconsciously have the need for two-way communication. Durex receives 20,000 voice and text messages from its micro-followers every day, and Durex a dedicated 10-person team to process the information. The rich and Durex can do this, for ordinary startups are unable to deal with the value of the low cost of micro-credit information. Micro-credit operators have to concentrate on high customer prices and high margin in the field to have better profit opportunities.

More revelation

Micro-letter is an accurate information platform. Doomed to the more accurate information, the higher the rate of the electricity quotient. For example, in the case of the salted duck, in the Nanjing community in this case only set up. If it is a foreigner, the information of the salted duck may be considered as rubbish information. With the popularity of smartphones, the low threshold of micro-credit helps more small business people to start a business better: There have been many very simple success stories: For example, the mother of the school door to use micro-letter to sell pancakes, such as fruit stall bosses do not need stores, only need warehouses, using micro-letter sell fruit, monthly net profit of 40,000. When customer segmentation and precision to a degree, micro-letter advertising is not advertising, but information. and the development of customers do not need to like the electric business as a needle in a haystack to buy users, but focus on the development of loyal customers. The micro-letter is not only changing the pattern of the electric quotient, but also changing the pattern of the service industry. A lawyer in Shanghai has gained several times more business than any other lawyer by managing his thousands of micro-followers.

4. Community Electricity Dealers

Case: Blood Net

Talking about community electronic commerce, we must talk about the case of the blood net.

A lot of people are already familiar with this case. Founder Len Lei in Tsinghua University when a military-themed forum, won a group of loyal users. There has been no suitable business model, relying on a bit of advertising costs struggling to support. Then there is a real estate business users, the myth of the Len Lei investment of 1 million, Len Lei on the 1 million support for four or five years, during the introduction of Google's keyword ads, the most income can not be more than thousands of yuan per month.

Because the military crowd is difficult to advertisers to produce accurate advertising efficiency, finally Len Lei was forced to do their own military products mall this road. From the end of 2007 founder Len Lei to foreign suppliers a letter sent to the supplier of blood to make their own brand "dragon Teeth", the road of iron and blood to even say surprisingly smooth. At the end of 2007, the first, but also the only one pricing more than 700 military outdoor class jacket, one weeks sold more than 10. The unexpected speed of sales to Len Lei emboldened slowly increase the number of goods. In early 2008, the military began to expand the category to sunglasses, flashlights and so on.

The sales figures for iron and blood products are beautiful: 2008 6 million, 2009 jumped 3 times times to 26 million, 2010 breakthrough 50 million, 2011 more than 70 million. Gross margin 40%, net profit 10%.

Because gathered a large number of highly segmented users, the iron and blood of the electric business almost no need to do on other sites to promote, which saved a lot of money for the network of traffic to obtain costs.

Model Advantages: If you want Len Lei to talk about doing community electrical business experience, he will simply tell you two keywords: Users and brands. In his view, the more vertical the community, the greater the likelihood of the success of the electric dealer. The community has a large number of users, this is the source of business value, and brand is a synonym for high value-added, but also the major electric companies try to improve profitability of the preferred way. In other words, the community solves the problem of the low cost of obtaining traffic, while the private brand solves the problem of low margin which is prevalent in the electric business industry.

Model disadvantage: We know that to do the independent platform of E-commerce is involved in a number of links to entrepreneurial projects. From technology to art to warehousing management, no one is easy. The more value links an enterprise involves, the more complex the management, the weaker the scalability. Community E-commerce is a mixture of media genes and retail genes, for example, is a business to know how to do the newspaper, but also know how to open a store. It is obvious that the challenge of mixing the two genes in the media and the electrical quotient is that the ceiling is obvious, the growth rate is relatively slow, and the backbone staff is not easy to cultivate.

More revelation

Community electronic commerce is destined to be valuable; there are still many possibilities, apart from the vertical subdivision of the military field. With the development of mobile Internet, more small and American communities based on hobbies can make profit through community electronic commerce. Recently, a group of Kobe fans, using a app.cutt.com app generator on the mobile internet, created a Bryant's mobile community, not only the latest news from Kobe Bryant, but also the interaction between fans. The community is close to the number of people who log in every day, and it can be imagined that, combined with community E-commerce, the community can quickly make a profit by selling peripheral products related to Kobe Bryant. Community electric business is very suitable for small and beautiful business. As I have discussed before, if the scale is done very much, this pattern will meet the management and talent bottleneck. For the vast number of entrepreneurs, the combination of interest and business, I am afraid is the charm of community electricity business.

5. Power Dealers

In China, Lok Feng Network is a successful representative of the talent economy. As a famous television host, Li presided over a number of programs, and launched the Lok Feng Network, in addition to the agent, but also launched its own static good brand. Le Feng won huge investments in Sequoia, the trump card of the main talent economy. Among the many vertical electric dealers addicted to the price war today, Le Bee network to take a different from other business operators of the road, that is, the use of talent in the fan group of influence, the development of peripheral products, drive the consumption of the operating model, star-making and to maximize the impact of the star to the economic effects behind. Le Feng tried to complete the Chinese "Stewart" feat by signing and nurturing 1000 grassroots people to influence 50 million fans.

Perhaps some people think that Li is a big star, to do the talent of economic success, in fact, not necessarily big star to succeed, small talent will not necessarily fail, here to share a case.

Case: Ayawawa Doll Beauty Class

Ayawawa Yang Bing Yang is the Tianya and MOP Reds, in the Tianya era, has been selected as the world's top ten beauties, in the mop era, to a smart woman without me beautiful, beautiful woman without me smart and popular.

But one of the smartest things about Yang Bing Yang is that she realized early on that an identity like the internet celebrity was not safe. She soon began to transform, and became a female love expert, she wrote "Don't treat men as animals", teach women how to identify the unreliable men's tricks, find a good man can entrust life. Love is good for countless women with high IQs. Especially in today's China, whether it is white rich beauty, or bones, for not reliable feelings and men trapped in the last to boil into gold remaining fighters. Yang Bing Yang Accurate grasp of this market opportunity, through the blog, television, and publishing quickly became the field of "the Guru." After the rise of Weibo, Yang Bing the power of Weibo to expand its influence in this field more quickly, gaining 670,000 fans in a few years.

Writing books is not able to support the economy of the talent; Yang Bing Yang soon opened the cosmetics shop in Taobao Doll Beauty class. Through the agency line brand, and through micro-blog on the beauty and love aspects of the answer and counseling, the fans into their own shops. Because her fans are a lot of the purchasing power of the middle-class bones and white rich beauty, her shop average customer price is naturally higher than the ordinary Taobao shop. After a period of operation, her shop also began to sell air purifiers and other higher customer prices of other family related products.

Model Advantage: The advantage of using celebrity to do business is obvious. Because you are a celebrity, people will trust you and will believe what you recommend. Of course I would like to take care of your business more. This solves the problem of high flow cost in the electric business industry; in fact, you only do business with your loyal customers, there is no flow cost. Also because of your trust, so even if the price of goods than other sites slightly higher, it is acceptable. Of course, since it is the fan repurchase rate will be higher than the General Electric website.

Model disadvantage: The disadvantage of the talent model is that scalability is not easy. The success of the talent model is built on a deep and sustained exchange of talent and potential fans. In order to effectively establish a group of loyal fans, the people themselves also need the image and content related to the continuous operation and their products. Talent is often Chengye, Xiao, if not constantly improve, people's aura will become the bottleneck of enterprises.

More revelation

A lot of friends will think that no matter the Reds, Tatsu people, seems to be far away from their own. In fact, anyone can be a person, and it is possible to create a talent economy. I know a friend who is currently studying in ceibs to pay for her tuition and living expenses in Central Europe using her spare time on Taobao's essential oil store income. She has written on Sina blog for several years on the oil aspects of the article, just as the Sina blog Essential oil Small experts. After she opened the shop, the natural business came.

The essential element of a talent economy is to understand its potential and to be the determination and motivation of an expert in a field. When you become a celebrity/opinion leader in a particular group, you can naturally develop a talent economy. Become a talent must be focused and subdivided. As long as the professional influence, do the electrical business naturally.

Summary：

Above I through five electric quotient mode analysis to try to answer the intelligent electric business entrepreneur is how effectively solves the electric business profession high flow cost, the low margin, and the low repurchase rate these three questions? Please do not mechanically entangled in what kinds of patterns; in fact, times are changing, terminals are changing, users are changing, and there are new opportunities. Intelligent Electronic Business entrepreneurs should be good at the changes in the times, and combine their own resources and strengths, make the right choice. The time for electric dealers to burn money is gone, but the era of the combination of electricity and retailing has just begun. More new technology such as large data, augmented reality, virtual clothing, image recognition will further change the electrical and retail industry. New opportunities are everywhere!