Integrated electrical and vertical electric dealers: category-level vertical electrical business can live?

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Integrated electrical and vertical electric dealers: category-level vertical electrical business can live? (TechWeb map)

The day the cat announced the double 11 the first minute there are 10 million people at the same time into the cat and Taobao, 10 minutes there are 250 million turnover time, when the media is still looking forward to Jingdong, Suning, Amazon China announced sales data, the vertical electric business situation has long been thrown aside.

Although a number of vertical electric dealers will take the opportunity to catch a bucket of gold, but the decline of the vertical electricity business has been obvious.

According to NetEase's Guide website Hui Hui Network issued a report showing that the domestic vertical type of electrical business flow is continuing to decline, from May onwards, where the flow of goods to the customer is declining trend, in October for every customer prudential products anniversary, flow accounted for a rise, but compared with May still fell 34%. Also for the apparel category of vertical electric dealers good buy, Macaulay, Vjia, Dream Bazaar also starting from May, the flow accounted for continued decline, respectively, down 40.7%, 35.4%, 33.7%, 18.1%.

Flow to Platform

Although the problem in the direction of each family has a solution, but the decline in traffic caused by the drop in sales, but vertical to the common face of the problem. And the common solution is to enter the major integrated electric power companies to promote the open platform.

In the eyes of the Li Shubin CEO, from a vertical to the point of view, cooperation with the open platform can bring traffic and orders, but also lower costs. And for an open platform, each category of supply chain system, warehousing management and distribution services are not the same, in a relatively long period of time, it is almost impossible to have a company in all categories can maintain the above three kinds of management and service advantages. This does not pose a significant threat to vertical business-to-consumer. Therefore, from the present point of view, the choice of cooperation for both sides is beneficial.

According to media reports, the wine vertical consumer Jiuxian net this year double 11 promotion its cat flagship store 15 minutes turnover broke through 500,000. Previously, the Jiuxian network expected the distribution platform this year will bring 500 million sales, accounting for the annual sales target of 1/4.

"Distribution can bring sales to vertical dealers, but it does not necessarily bring profits." "For this kind of cooperation, there are some voices of concern, CMO Xu is one of them."

Nevertheless, this form of cooperation is now seen as an important way for most vertical business to obtain traffic and will continue for a relatively long time.

Category-Class vertical electric dealers can live

In the Lok Tao Network CEO Bi Sheng thrown "vertical purchase and sale of E-commerce is a scam" view, Jingdong Mall CEO has also thrown the view that "vertical electric, only vertical brand can survive, not its electric platform has value, but the brand value." Vertical retail platform must die, of course, can also sell. ”

In this regard, good buy CEO Li Shubin, "basically agree, but to see vertical electric dealer vertical to what extent." "From the user's point of view, users expect good service, so they do not need so many shopping sites, but they need at least the category level of the site."

Li Shubin For example, all the shoes go to a place, all the 3C digital to a place, all the daily necessities go to a place. This is the reality of shopping is the same, respectively, the corresponding is Suning, gome This category of 3C digital and buy daily necessities supermarket. Users don't complain about buying branded garments in supermarkets.

Ecapital Capital CEO ran has also given a different answer: Vertical retail platform must die, but only to the mass market-oriented vertical platform, for specific groups, distinctive features, service in place of the vertical platform is likely to survive.

However, its core meaning is to look at the development of vertical electric business, such as shoes, vertical electric operators should not belong to "specific people, distinctive" vertical platform.

Single sketch category difficult to keep users

This year, the cost of internet advertising has risen six times times, 10 times times, 12 times times in a year? Although the numbers are not uniform, the unification is that advertising prices have risen sharply.

For the development of vertical electric business has been a point of view that the fate of the door is "marketing efficiency" is not high. The vertical electric quotient means that the consumer group is subdivided, on the one hand the subdivision group is ineffective in the broadcast marketing. On the other hand, the department stores, the platform of more and more electricity, will lead to the loss of users.

Li Shubin said that from the operating point of view of the company, the cost of new customers has been paid, the higher the customer repeat purchase rate, the shorter the interval of repeat purchase, the company's profit cycle is shorter. But the single sketch class vertical website is difficult to satisfy the user to repeat the purchase the demand, moreover the user is easy to transfer, the user once but shifts, probably never comes back.

It is therefore, good buy will choose footwear products related to the extension of the category, such as clothing, matching and so on. Li Shubin said, our positioning is to provide users with the entire clothing and hats fashion Comprehensive website.