Huang Jo Comments: The best time for small brands to rise

　　Double 11 Day Cat and Taobao's Alipay total sales reached 19.1 billion yuan, close to twice times the total retail volume of 8 days of this year's Golden Week.

In this connection, billion power network exclusive contact Cat founder General Manager, Dangdang predecessor COO Huang Jo, he said, the rapid development of online shopping has been changing the Chinese brand pattern. "This time the double 11 appears to attract the consumer by the big name, actually most sales are by the small and medium-sized merchant, as well as Taobao original brand to complete." The change of the channel and the marketing end, which directly stimulates the Chinese brand pattern also changes. "In the last article, Huang Jo pointed out that the cat double 11 results show that the greater brand penetration is stronger in the number of small and medium-sized brands, will usher in a small brand the best time to rise."

Cat founder General Manager, Dangdang predecessor COO Huang Jo

On the other hand, Huang Jo that Taobao is a single big situation will not continue, the future procurement of the market share will gradually increase, and will become the mainstream retail mode, but it takes a long time.

"Platform model in China's development has a special soil, China is a large manufacturing country, but not a brand big country, similar to the market such as the market for Amoy-goods model most popular with consumers." Coupled with the low cost of labor in China, so to support the need for a large number of customer service, marketing staff, warehouse manager of the online shop model, according to my understanding Taobao per capita monthly sales of only about 5000 yuan, even if everyone can get 15% of the salary, monthly wages less than 800 yuan. Huang Jo says the boom in the platform model is directly related to the current level of Chinese brand development and labor costs.

However, from the nature of retail, platform model is a kind of social benefit is not high sales.

"The platform is actually a relatively low social efficiency model, so that may offend some people, the platform only needs to be decorated for the winners, do not need to pay for the millions of losers, we now see how many successful Taobao shops, but behind how many losers?" How many merchant Yahuo sell? Sorry, These are not related to the platform, in addition, a person to organize 100 factory production, certainly more than 10 people to organize 10 factories more efficient production. Therefore, compared with the large-scale procurement of the Business-to-consumer, the platform model actually caused a lot of waste of resources. This is like driver seeds throw rubbish out of the window, although the driver himself does not have to bear any cost, but the Society undertakes. ”

Therefore, Huang Jo judgment, although the platform model is now more suitable for the current, but in the long run platform model is difficult to become the main mode of retail business.

Under the line, Offline retailing has mall, but it is still based on the model of buy and Sell, because mall only solves the traffic problem, does not solve various problems from inventory to sales end. Buy and Sell mode of service is done by one side, mall service is done by a number of merchants, a person to do the quality of service can be constant, a number of merchants to provide quality of service is very difficult to constant very good, even if the cat has a screening of the business has provisions. ”

When does purchasing-type Business-to-consumer exceed platform mode? Huang Jo that the most immediate factor is the cost of manpower.

"I think the market-like platform model is unsustainable when China's labor costs rise to close to the developed world," he said. Plus, as the market gradually standardize, many irregular situation platform operation will gradually be limited, such as tax stamps. But for now, it will take a long time for the Business-to-consumer to exceed the platform model. ”