Huang Jo: Platform model very low-end credit cost is also socialized

Absrtact: "Editor's note" Senior electric business person, Warburg Pincus capital investment adviser Huang Jo published a new book "To see the electric business Again" yesterday, in addition to the unique investment knowledge Three cup tea theory, he also highlighted the 2014 electricity quotient trend, the low price, the commodity good and bad situation will be

"Editor's note" Senior electrical business person, Huang Jo, the capital investment consultant, released a new book, "Look at the electricity business" yesterday, in addition to the unique investment knowledge "Three cups of tea theory", he also highlighted the 2014 trend of the electricity market, cheap low-cost, good mixed goods situation will gradually be replaced, around the convenience, The era of quality and service to build the core competitiveness of the electric business is coming.

However, not long ago, poly-Mei excellent products and Beijing-East has been exposed a third party business sales leave. All said electric Robin period ended, but even today, two listed companies are still facing the rapid expansion of the trust crisis, is the platform model can not be cured of the contradictions, or the era of the quality of the electronic commodity outlook some premature naïve?

Just billion state small series also in the scene, to "yellow old evil" to ask the question.

Warburg Huang Jo Capital investment consultant

The following is Huang Jo to billion power network on the electric business platform for the sale of fake, make a burst of blood spicy comments:

Electric business platform model is very low end very elementary mode, but also very in line with "China's national conditions."

The only thing that the retail world pursues is efficiency, unless it is extremely high-end luxury goods dealers, such as selling Hermès bags, gross margin of 98%, inefficient efficiency does not matter.

Efficiency comes from scale, business continuity. But the platform model many people are selling, in the reception massive user. No matter how to standardize, even on the platform of all businesses are military management, centralized training three days and three nights, the business of goods quality, service understanding can not do exactly the same. Users today encounter Zhang, enjoy five-star treatment, tomorrow to find DOE, service standards is another set. This jagged service quality, platform is difficult to produce a continuous shopping experience.

Therefore, modern retailing has come to the present, and invented a very interesting vocabulary--the chain of business. Behind is the management standardization, the customer's expectation value is solidified, finally let the unit operating cost to reduce.

Why is the platform particularly suited to China's national conditions? In addition to the tax loopholes for the electricity quotient, the platform has socialized many operating costs, which is unmatched by the mode of sale and purchase.

Buying and selling mode, procurement is very professional, is the core competitiveness, 10,000 pairs of shoes sold, or bought a pair of fake shoes, the electrical business must bear their own. However, the platform model to do the ecological circle, so that all people to sell shoes, 100 shoe sales, fifty or sixty sellers are loss. As a platform provider, it doesn't matter, because the platform's financial statements look good. But the cost of sellers losing money is socialized. Similarly, if there is a fake, this loss is also socialized.

Why is it socialized because the industry is still in a fast-growing phase. So every year 20%-30% of people die. See the new people laugh, no old man cry, not equal to this platform is efficient, commercial logic.

Therefore, in the long run, we do not think that the platform can continue to dominate the social retail business.

Back then Taobao put forward to do Taobao Mall, to do the platform, the threshold high in the selection of sellers qualification: first, registered enterprises; second, must have brand authorization, or high-quality own brand.

Why set the threshold? Not for me personally, this is for the consumer set. This is a minimal identification mechanism. If you have 10 brand new iphone phones, you must be shut out if you get Lufthansa to sell. Why? Lufthansa is sure to care about your 10 mobile phones from where. But if you run to Zhongguancun to sell there is no problem, there is no threshold.

Therefore, the cat (Taobao Mall) on the threshold must be higher than Taobao. Comparatively speaking, fakes and parallel imports will be intercepted.

But it needs to be clear that this is only relativity. In terms of practice, the platform model is relatively lagging behind the self. Platform mode is difficult to pursue the maximization of efficiency, trading mode is based on sales cost compression to improve revenue, the platform can only rely on more sellers competition to generate sales maximization. This is a lot of competition is disorderly, 30% were killed, or in order to compress costs, began to cut corners, this part of the cost of society to bear, can not be avoided.

Why almost all developed countries in the retail business model is the mode of sale, all the developing country department stores are commercial real estate model (two landlords), enclosure, users can make money. As to who to buy who to sell, there is no parallel imports, fakes, how to sell, not now the main deal with the contradictions and problems.