Independent Electric Dealers No tomorrow

Source: Internet
Author: User
Keywords Independent electric dealer Amazon electric dealer very

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The continuing losses of independent electricity dealers have made the capital forces that once supported the power industry increasingly uneasy. Now not only a large number of well-known brands to rely on the cat platform to develop electricity, many of the independent electric business stars are also helpless to choose to take refuge in the big electric platform, regardless of whether the guests or when, whether it is Macaulay or red children.

Now there is such a theory of e-commerce in China, to make money for the electronic, business is also making money, E-commerce are dying. Engage in "electronic" means to do the platform of the electric quotient, such as the Cat, "business" means through the day cat or other electric business platform to open shop sales of products sellers, engaged in E-commerce refers to an independent of the Electronic Business platform. This may be a bit extreme, but it is more convincing when Taobao is trading at 1 trillion. After all, making money is the hard truth.

Take as an example, if rely on main books and other high margin of the category can achieve profitability, once engaged in the whole category expansion, basic also with the profit completely farewell. There is a saying in China called "insiders", when selling books does not mean that it can sell furniture. Internet is just a tool, today you learn to use the Internet to do business, but furniture dealers will also learn to use the Internet to do business, because the big electric business platform so that they learn the cost of E-commerce is very low, but at the same time, there is no way to make when it is easy to master the secrets of After all, not every industry is to buy and sell so simple.

I know a lot of people are ready to use Amazon's success as a basis to refute me, then we might as well analyze Amazon. Amazon's success can be said to occupy the best climate, geography, people and. The first round of the internet boom and the US government's long-standing tax exemption policy has dramatically reduced Amazon's operating costs. Geography refers to the developed Third-party Logistics system in the United States, which makes the cost of Amazon's distribution in the United States very low. People and Americans are mature credit system and copyright awareness, which makes Amazon in the initial book sales to obtain high gross profit. Yet even with the best of weather, geography, and people, the gross margin of the "business" business that accounts for Amazon's revenue is still half, and Amazon will have no advantage over traditional retailers once the US government cancels the tax exemption policy. At the same time, Amazon's profits in recent years almost entirely rely on the "electronic" leg, on the one hand, Third-party sellers platform for overall sales of the proportion continues to expand, will soon be more than half, on the other hand, AWS provides services such as cloud computing has become the most important factor for Amazon to improve its gross

Not only the whole category of the electric dealer is not good, the development of vertical electric business will also be difficult. Although the vertical electric dealer has the advantage of the brand premium, but compared with the big platform, the technology research and development investment is very limited, no technical advantages lead to inefficient operation and cost is significantly higher than the platform, coupled with the higher cost of independent electrical operators to obtain more expensive factors, so that the vertical electric business platform in the market with the seller of the competition disadvantage obvious. There has been an image of the analogy, relying on the platform to develop the electric dealer's brand is equivalent to rent a store in the mall, independent electric operators are equivalent in the wilderness to build a self-employed shop. Some people retort that the independent electric dealer is not a store! But in reality how many out of the business district of the store is booming?

For example, if customers in order to improve the user experience and the huge investment from the construction of logistics can not be reduced, then in the technology research and development, purchase flow and other aspects of the huge costs could be taken refuge in the large platform and effectively reduce. We may wish to do a comparison of every guest and Han, although both positioning low-cost clothing, but the independent of the gross margin of the customers but 30%, continued huge losses, and relying on Taobao's Korean clothing shed gross margin is as high as 60%, the profit has long been not a problem. As a result, the cat became the only way to reduce operating costs, reduce flow costs, and ultimately to achieve profitability.

Perhaps it is through the independent electric business disadvantage, the cat does not do the self, always adhere to the "commercial real Estate" model, the continued huge losses of the Beijing East also like Amazon, began to increase the platform of construction, and even ready to rely on platform advertising to expand the profit channel.

To do "electronic" or "business", or "electricity" "business" to do, this is a problem.

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