Is it helpless or joyful? The transformation of Dream Bazaar

What can 20 million dollars do?

20 million U.S. dollars can be hung in Guangzhou city bus stop waiting for the booth on the box for about three months.
If, according to the previous industry, 1:0.3 average ROI, then 20 million dollars in internet marketing can generate about 40 million of the revenue, can get about 5 million registration, of course, this is only registered users.
At the same time, 20 million U.S. dollars, but also in our CCTV set of gold advertising time to dial about 1 months.

Back in the 2010, Dream Bazaar's second round of financing won 20 million of dollars, when the dream of the bazaar is also the Chinese franchise female underwear E-commerce website. Today we come to see the Dream Bazaar, found that she has quietly become an online large department store, selling products from women underwear. Extended to men's, children's wear, swimwear, bags, jewelry, home textiles and so on

In the expansion of product category at the same time, try to operate other brands of the situation also appears in all merchants on the field. For such a shift, does the operator of the business platform be happy or helpless? This change from making brand products to do brand mall model will become China's e-commerce development of a popular trend?

What do you do if you don't burn money?
As soon as he gets the financing, he will burn money in the traditional advertising field. This has become an inevitable phenomenon, and we will know in a few moments that the shadows of those shopping malls, such as the waiting booths, the MTR stations, the television buildings, newspapers and magazines, are those of the bazaar: Jingdong, Van, catwalk, dream ... Of course, but also the 2010 hit of the site of the figure: Handle, Group Treasure, American Regiment, glutinous Rice Regiment ...

One of the vertical executives who just got the financing said to me, "what can be done without the money being burned?" This friend's words just say that most of the three "helpless" platform

I. The helplessness of the market space
Wolf sheep Less--in 2010, our total network of retail sales to 500 billion (about 2% of the total number of national retail sales), online shopping volume of about 142 million (the actual formation of online consumption habits are far less than this). In the middle, Taobao accounted for 400 billion. The poor 100 billion was left to compete with our large and small web of Business-to-consumer. Although the online shopping market now predicts a growth rate of 100%, the number of platforms adding to the business sector and the growth rate of funds far exceeds that number.

Second, the helpless of the crazy competition
Network promotion has no cost-effective can say--2010 years many of the Web site to get capital injected immediately began to burn money. Some network promotion programs have completely no input-output concept. It seems that they are in the race, who can burn a wide, full, burning gorgeous. As a result, online advertising prices are soaring. Advertising is in short supply, so advertisers can only transfer part of the money to the offline promotion channel. The direct effect of offline promotion is not ideal, but it is a helpless choice.

Iii. the helplessness of the business model
The role of the primary business distribution channel has not changed-as of today, China's business e-commerce ecosystem is not yet mature, no domestic e-commerce enterprises can like Wal-Mart or Amazon, with the scale effect and High-tech means in the commercial circulation to create new value. That is to say, our business-to-consumer is just in the early stages of buying a fare increase and selling it cheaply. Of course, from the development blueprint of Jingdong, we see that she is trying to create its own, the core value of business circulation. However, other consumer platforms, basically in order to continue to maintain the business model of the difference, be forced to continue to burn money, to obtain new users, by giving discounts regardless of cost of obtaining orders.

Do brand products or do brand mall?
Lack of industrial background is a natural flaw in the E-commerce platform. Those willing to cut into the business of E-commerce, either a shallow attempt to water, or is helpless to find breakthroughs.

In the final analysis, the share of consumer e-commerce in our entire retail market is still negligible. From another point of view: The current investment bubble in the business of corporate e-commerce is a positive effect in nurturing an industry that subverts traditional business models over the next 20 years.

From an investment point of view, the large-scale investment in the business mall is bound to require a large cash flow, high growth earnings expectations in return. The flow of money is always at the micro-corporate level, and she ignores the overall market capacity, so those who get the financing of the platform, it is necessary to bite the bullet to ripen the entire market and seize all the advertising position and channel. Whether or not the user is robbed, first advertising and channel to Rob first, this is the only thing to do after the money. This shows that after the financing to the brand mall direction change is the inevitable result of the shopping mall.

The result of the investment hotspot not in the production level is that people who are willing to devote themselves to the most branded products are less than before.
In the end, we will find that we can calm down to do brand products, but the traditional industrial companies. Industrial bosses with factories, workers and production lines.
For example, the South China Electric business market, brand products are mostly by the strength of traditional enterprises through the acquisition of brand management rights or research and development cooperation mode to operate. such as the high-end market to do Sydelle CDE crystal jewelry, specializing in high-grade locks for the bodyguard lock industry, specifically to do. These brands originate from industry and tend to expand their business through a network distribution model. They only focus on making products, almost do not do their own mall, is a typical product brand representative.

Can be foreseen, with the brand mall according to the market pattern set, more people will return to the road to make products. Relying on real gold silver cultivation of the business mall will gradually occupy the entire E-commerce channel. Therefore, the sale of branded products will be entrusted to them. Make products only need to make good products. Although Wal-Mart has its own brand called "Hui Yi", but the product category is not much, and the quality is only general.

The next year or two Dream Bazaar Mall also has a dream bazaar underwear to sell, but this mall will sell the number of brands and product category, may be dozens of times times more than now.

Yehai CK