How to turn over the "chronic sub-Electric dealer" No. 1th shop?

Absrtact: No. 1th Store Chairman Gege in China's electric business war commanders, Gege is a small number of professors with academic atmosphere and multinational professional managers experience the local entrepreneurial figures. Penn State University's Wharton School of Decision Science,

No. 1th Store Chairman Gege

Among the commanders of China's electric business World War, Gege is one of the few local entrepreneurs who have the experience of academic professors and multinational professional managers.

A Ph. D. In decision science at Penn State University's Wharton School, a former Dell Global sourcing vice president and Amazon's global supply chain vice president, have made Gege and his rivals such as Jingdong Liu (Weibo) a different style.

Liu at the helm of Beijing-East doped with the native Zhongguancun-style savage rapid growth. Gege under the helm of the number 1th shop is stable dozen firmly, murderous enough. Because the foreign companies pay attention to the steady progress in accordance with the planning, China's local electricity companies to implement this year, the growth of 30%, the next year, 60% growth in the third year of the leap-type Pentium, Ali, Beijing east.

Perhaps it is this experience, make the earliest online supermarket 1th shop in the Gege in chief, although at one time to become China's electric industry, a "dark horse", but the dark horse after all failed to become a steed, and then hobbled forward, finally in the next spring before the electric dealers to sell supermarket giants Wal-Mart.

Insiders Blunt, right now, after the acquisition of shop 1th has fallen out of the first camp, it can not with Ali, Jingdong, Amazon and other power companies to contend with the impact of the national market is also difficult to improve quality. But Gege also some repeatedly defeated the momentum of war.

2014, the electric business became the hottest field of capital, Poly-Mei excellent products, Beijing-east, Ali has listed, and are valued 3 billion, tens of billions of dollars of heavyweight players. Electric business plate, there are already the above 3 and only products will, when, LAN Pavilion set potential, Mai-lin total of 7 major listed companies.

In the future, under the Wal-Mart "Godfather" holding mode, the chance for 1th stores to be listed separately is slim. Some time ago, the industry has several times out of the 1th shop will once again sell their own trade in China resources, although shop 1th denied this, but the future of shop 1th does look a bit gloomy, the future of its center of gravity in the end where? And in the previous electric business on the road, No. 1th Shop has gone what detours?

In this respect, recently, gege in the acceptance of Tencent Technology exclusive interview gave a note.

Three business core: must be based on mobile end of their own revolution

In recent years, shop number 1th has given the outside world a tepid impression. Especially after being bought by Wal-Mart, because Wal-Mart is a famous chronic son.

But this year, seems to have changed, on the one hand, shop 1th will advertise to Beijing, Shanghai and other Broad world, on the other hand, continue to cut overseas shopping, pharmaceutical and electronic business, internet finance and other new areas. "In the future, store 1th is still positioned as the online supermarket for FMCG, its center of gravity will be placed in three large chunks, the first is the power of mobile operators, followed by Beijing, Guangzhou and other regional expansion, and finally the business extended to the 234-line city." "At present, the inventory turnover of shop 1th is upgraded to 18 days, the industry average is 30 days, which will greatly optimize the efficiency of the supply chain," Gege said.

In Gege's view, in the next two years, mobile electricity dealers will truly become the main battlefield of the electricity business. At the moment, store 1th is on the mobile side of the sales ratio of 28%, the end of this year will reach 40%, next year will be more than 50%, mobile end of the company's most plays.

By the end of 2013, China's mobile users had reached 500 million, PC users were 590 million, but mobile users grew by 19.5%, while PC users grew only 6.8%. Mobile end of the electric business prospects can be period.

However, the mobile internet age is different from the PC Internet age. In Gege's view, mobile is not a simple PC-side migration, in mobile scanning, image recognition, geographical applications, marketing methods can not be copied PC end.

"Electric dealers must own their own lives, otherwise they will lose their place of survival." Mobile end of the customer shopping peak occurred in the evening and weekend, compared to the PC side, the mobile end of the unit price is low, frequency high, the main fast. Some of the smaller types, group buy, Flash purchase in the mobile end of the user's favorite, and some big things such as home appliances in the mobile end of the sales effect is not ideal. ”

A new round of electric dealers is down.

2014, along with several big platform electric dealer to go on the market, the veteran only in unceasing tossing and going, the vertical electricity trader is few. August, men's electric goods brand NOP fell, in mid-September, Dream Bazaar to 20 million of dollars worth to be cheap to the American clothing Road group. Domestic vertical electric dealers in the 2012 after the collapse of the tide, again ushered in a new round of shuffle.

Gege told Tencent Science and Technology, before the brand electric dealers fell, because the Thousand Regiment war, funds into the same field, the result of the tide scouring the sand. The recent collapse of a new round, is the industry strong Matthew effect squeezing the inevitable result, investors more and more rational, users to a large platform concentration, those relying on inefficient supply chain vertical Power players will continue to fall.

"The electrical business will continue to move towards the platform, so that the system, flow, flow efficiency and value maximization." Vertical electric business must have special barriers to development, or there are policy barriers, such as medicine, or professional barriers, such as making wine, cosmetics. "Just so stressed.

It is worth mentioning that, at present, the fresh electricity business to become the electric business subdivision industry's popular fried chicken, the potential of a huge but it is difficult to profit. "Everyone has confidence, each is not sure, we are not particularly good entry point, are trying." Marketing model, product category is easy to copy, the final competition is still supply chain. Gege said that in the future, the domestic logistics network coverage and distribution services will eventually improve, and E-commerce to the three or four-line city sink, coupled with the line under the O2O retail complementary interoperability, will usher in a new world of development.

When it comes to the detours that you've been through, Gege admits that it was a huge mistake to move outsourcing before, because every time you try something new, there's no way to get it out, and the first low-level wireless architectures, such as shopping carts and search functions, do not need to be redesigned at all, wasting a lot of energy and resources. He revealed that the current mobile phone business platform users of the largest Android group, but the iphone and the ipad conversion rate is higher, the Windows platform can basically give up.

In short, has gone through many detours, in the mobile end of some of the doorway to find out how the number 1th shop tomorrow is not known, how to turn around as soon as possible, improve their status is the top priority. Perhaps in the absence of the king of the mobile power will become the opportunity to turn over, but the key is gege for the acquisition of the number 1th stores in the end how much talk right? This becomes a real determinant of whether the future strategy of store 1th will be landed.