Interpretation of the four views of the current electric quotient

A discussion about the electric dealer making money is with the non, the popular B2C/C2B/C2C concept has come a big subversion, should not do the brand, even who is the electric business, what is the brand, all say each words. has made money, self-confidence in a bit of fear, has not earned, wandering between the negation and self-denial. Where is the consumer and what does the consumer want? The problem is attributed to follow Taobao go or not with Taobao (and the cat) go. This topic, really tired!

Debate: Electricity dealers make money without

Electric business world play is not our usual "unified business thinking", others earn is the service.

Shouting that the electricity dealer does not make money the biggest voice is the Lok Tao Net CEO Bi Sheng. He said, as a vertical electric dealer, in the past 3 years, has been playing a brand to "move boxes" role, and moved to the last find financial account is not counted. "Do not do the electricity market investment will not be able to let people know you, although Le Amoy network to get the Internet advertising has always been lower than others, but this aspect of the cost of investment is still high." "Coupled with a large number of electrical dealers rely on the offline supply chain, warehousing, logistics and other rigid costs so that the Lok Tao network overwhelmed."

"So far, I have not seen any of the electric Dealer's profit statement." "The head of the cat is more discouraging than the first word."

Is the electric dealer that has been tossing and going for 10 years, to now really not make money?

Benchmark Logistics general manager Wang Yunda immediately said "disagree." He said it very directly: any business is to make money, do not make money business is not going to do. It's just that the electricity quotient earns less is a problem, some earn is "floor price", some earn is "ceiling price".

The Cat CEO carefree son also pulled back, said "did not see the profit statement, does not mean that the electricity business does not make money." He said, he will only be counted, according to his big account, the electric business should still make money. Because the electricity quotient can reflect the economic cluster effect, namely can reduce the cost. "The broad sense of the electricity quotient is not who sells goods who is the electricity quotient, the electricity merchant should include the entire ecosystem, each link in the value chain is an electric trader's practitioner." In this system, each practitioner's division of labor and collaboration is ultimately assembled to provide value to consumers. If every practitioner is doing what he or she is best at, the economic benefits of the entire electric-quotient ecosystem will be the highest. So, as long as every operator of the electric dealer can control the cost reasonably, the whole electric trader can make money. ”

Look at the electricity dealer to make money not to make money, also cannot stare at that point purchase and sale difference. Billion Power network founder Zhengmin said well, the electric business world play is not our usual "unified business thinking", people who have several large vertical electric dealers actually earn a service.

"Unified Business Thinking" is "buying and selling thinking", but now is a pluralistic business society, to think in multiple ways. How to think multiple? The spread of X may be reduced to zero or negative, but selling Y and Z can make a profit. Multinational companies have already taken the first step. For many large supermarkets, selling oil, rice and so on are low margin or even 0 gross profit, but by selling Y and Z but can make money. This y is the own brand. According to statistics, about 23% of the profits of large retail companies come from selling their own brands. Z, is the supermarket has commercial real estate, you can rent to open a hotel, selling clothing, charging booth fees. These supermarkets are typical service thinking, doing is the retail life, earning is the service money, not the purchase and sale spreads. This is also the Y and Z of the electricity dealer.

Alibaba chief strategic Officer Zeng finally concluded that, do not believe which electric dealer said that they did not make money, even if not make money, but also it did not do a good job.

Controversy: The bigger the stall, the more money it makes

Sometimes it's not up to you to make money or not, but it's up to your competitors, not even the competitors, who are more determined.

The reason is reasonable, but in fact, how can the electrical business to make money. Those of us who "crowd" don't know. But looking at the former Beijing-east, Su Ning and Gome "fight", is not to "operate", "rob the Territory", so we vaguely think that the more the electric power shop is more and more can make money.

However, people in the industry said: "This may not necessarily." "Some of the little work is very nourishing, make big but not earn."

Wang said that the electricity business is a particularly good shop, or particularly small, it is not conclusive. Because it has to do with the "play" and the business model. "Shanghai has a small site to sell fruit, the start does not make money, but sold to 200 million or 300 million yuan after the start to make money." Because the site is not a simple profit margin, it also mastered the Internet core user data, can calculate the purchase one or two times its fruit customers may also need what other fruit, this is more than offline trading ' advanced ' many. It is not necessarily the companies that make the most money. Because of the size of your market, everyone is staring at you. Sometimes it's not up to you to make money or not, but it's up to your competitors, not even the competitors, who are more determined. An example of "madness" is the recent electric war between electric merchants.

Don't think it's a "pediatric" problem to think about how electricity dealers make money, because China's power companies don't want to understand.

Taobao early is the leader of the electric business, on this issue they are only recently some ideas. Zeng said Taobao's future business model is only slowly clear in the last six months.

Taobao understands that this so-called e-commerce, in fact, is the Internet to traditional business transformation. The first step of the internet impact is advertising, the second step is sales, the third step is logistics, the fourth step is inventory management, the fifth step must be the supply chain. Therefore, Taobao eyes of the electricity quotient, is when can end to the end of the entire supply chain platform to move to the Internet. It was not a question of earning money, but of making a lot of money. Now, whether it is Taobao or the so-called Business-to-consumer, is only in this direction to develop a stage. "If all things have to do their own, margin can not support such a large investment, so Taobao to do is a platform." Alibaba Group positioning is also the future of the supply chain synergy platform. In addition to the platform-related things, the other Alibaba now do not do. ”

Tangle: "Moving Boxes" or making brands

As long as you do a differentiation, as long as the core competencies of the enterprise you are the strongest, you will certainly be able to make money.

If you ask 10 people who often go online to buy "Why do you shop on the Internet", the answer may be various, but there must be "cheap" reasons.

What about the grassroots sellers who offer big and small goods, in addition to offering cheap goods, or building their own brands?

"Today, in the Internet environment, the user loyalty to the brand has been extremely weak." "Alibaba Group chief risk officer Shaoxiao said, grass-roots sellers want to grow fast, the first to maintain gross margin, the second control costs, the third is the first two completed on the basis of expansion of scale to achieve a healthy, sustainable scale. Hanbing, an investment manager at the perilous peak, said that under the line, consumers can stroll around and enjoy the whole purchase process. This is the best way to gain brand recognition and loyalty. But the net buys often lets the consumer only want to remember is the price, to this brand loyalty degree is far below the line.

But the grassroots sellers don't think so. Taobao sellers "crack silk" supplier carving is the representative, he said, online than online easier to cultivate a loyal brand of "fans."

"Crack Silk" is an example. "Crack silk" is more personality, even a little weird costumes. If you sell in the mall, you can sell 5 pieces a day is good, but in Taobao Mall we can sell 5,000 pieces a day. Because Taobao on this super large network platform, you can find a sufficient scale of precision marketing target crowd. Now, there is no personalized things, consumers will not buy, there is no large-scale things, the production side does not make money. Taobao help "crack silk" put the two together, so "crack silk" can live very moist. It is easier to cultivate loyal fans each time you make a custom for 10,000 consumers online than to do a large advertising campaign.

More grassroots sellers mind big brand Dream. "Wheat Bag" is from Taobao to start the package brand. Its CEO Yehai said, on Taobao, you just have to make a difference, as long as the core ability of the enterprise you are the strongest, you will certainly be able to make money. Grassroots sellers develop to the end only to do their own brand, because only the own brand has a high profit. Children's clothing and maternal and child products, "green box" Ms also said that they started from the designer brand. In the beginning of the electricity business, all kinds of links must learn to be pro-Pro, deeply understand the hardships. She hopes to have a full range of subcontractors in the future, and she hopes to focus on branding and design. The green box will stick to its own brand, "I would rather have someone come to me to ' Move the box ' and not move someone else's ' box '. "Move the box means wholesale spot."

"Outsider" Shanghai is seeing brand management consultancy Ltd. founder Tri Hongpo said, grassroots sellers must do brand. Although the electric dealer may rely on the low price promotion to enlarge the sale, but even if the sales volume is big also will not have the consumer loyalty, cannot consolidate own position.

Doubt: Follow Taobao to earn money?

Taobao is a circle, after the big, not that you do not come in, more than you do not follow its rules to do it.

Today, China's electrical business has been divided into Taobao and non-Taobao department, "into the Amoy" or "Amoy" has become a lot of grassroots sellers to think about the problem.

First of all, why do you want to go into Taobao? Support into the Amoy said, into the Amoy to make money, other electric dealers winter, the other refers to the right Taobao electricity.

The main reason is "traffic". Beijing is looking for consulting president and chief analyst Luebbe Analysis: "The biggest cost of electricity is traffic." China's Internet traffic is Baidu, Tencent and Taobao several giants control, the cost is very high. Taobao outside the electricity dealer does not get traffic from Taobao, generally from Baidu, Tencent or other portals to obtain traffic. Taobao attracted by the flow of traffic on behalf of the consumer, and Baidu and other sites attracted no high proportion of consumers have the intention to purchase. So, Taobao's flow is cheaper. Yehai also said that the experience of the MAI bag, independent website should only do publicity, but must be a deal to Taobao only cost-effective.

Why would anyone want to go to Taobao? Support the Tao said, "Taobao system" will be the advantages of cheap goods, as far as possible to the buyer, while the communication and credit costs, all kicked to the sellers, the seller pressure "than the mountains."

Recently, a "born in the West" Netizen in the Tianya Forum published an article called "Cherish life, cautious into Taobao," the net text, said Taobao's current "rules of the game", the seller is the largest vulnerable groups.

In the text, he poured "bitter", such as the promotion of higher costs, in order to seek the credibility of the miserable and so on, triggered a lot of Taobao sellers resonance. His example: Because of the difference between the evaluation and credibility linked, for the sake of credibility, he can only try to please buyers, even at the "refund do not return, never beat the difference"; on Taobao to promote only the use of Taobao with the "Taobao through Train" and other systems, due to the Taobao through-Train pay-per-click, sometimes a day forty or fifty single business, Light promotion fee He will pay seven hundred or eight hundred yuan a day, greatly eroded the profit.

No wonder there are netizens said, Taobao is a circle, after the big, not that you do not come in, more than you do not follow its rules to do.

Despite being the chief risk officer at Alibaba, Shaoxiao is more objective in speaking. ' Not getting into Taobao is not a major problem in deciding whether to make money, ' he said. will now market all marketing channels, marketing positions, marketing tools and consumers, such as the use of degree, matching degree, play to the greatest value, is the real realization of the fundamental money.

Source: Jiefang Daily