Jiuxian NET Shang: The electricity business survives this year not to have the survival rate in 20%

The industry is changing dramatically in the 2012. On the one hand, the cat, Jing Dong and other electrical business obviously pull away, on the other hand, vertical electric business wind hit, cotton, goods, such as the collapse of Amoy, good Lok buy have to lay off adjustment. In the electric business industry ice fire double days, Suning, Wanda and other traditional enterprises awakening, have stepped up efforts to enter the field of electrical business.

How will the electric business industry develop in the 2013? Where are the vertical electric operators going? As a representative of the vertical wine class, Jiuxian CEO Shang has his own opinion. He said to Tencent technology, the current new electric dealers are rising, the old electric business is dying. Shang pointed out, "the most failure of the old electric dealer is not understand business, do not trade." For the electric business industry, how to sell things to save money, how to cooperate, how to and all aspects of the supplier cooperation, this is art. ”

Shang said, to the old electric business, can survive this year basically can survive, not survive this year no drama, finally estimated that only 20% will survive. The new electric dealers have a lot of business acumen and experience, and the trade is definitely more than those of the old Electric Chamber. Traditional enterprises do not necessarily succeed in electricity, but the future in the electricity market will be the dominant position.

The main reason for vertical business failure is not to take VC money as money

Shang refers to the new electric business from the traditional business to become a group of enterprises, such as Wanda, Su Ning, the old electric dealers are those who come from the transformation of the electrical business. In fact, Shang is "halfway". Shang has been in the traditional liquor agency industry for 10 years, in the relatively conservative environment in Shanxi, has never thought of going into the internet industry.

Shang and Internet connection is in 2009, that year his idea is to do national Nanyan wine chain, but more than half a year after investigation found that the cost of rent is too high, business is difficult to profit, also difficult to scale. In bewilderment, the last lesson on the Shang of Tsinghua's MBA is just about E-commerce, Shang plans to move resources from traditional industries to online. Subsequently, Shang recruit founder Jiuxian net.

After a few years in the industry, talking about today's situation, Shang said that the current vertical companies have a large loss of several reasons: vertical consumer is not the root of their own money but VC money, a lot of people have a loss of mentality, and even some people in the electric business enterprise is lost more and more individuals earn more.

On the other hand, many electric business entrepreneurs do not understand business, in the world with a 500-strong approach in the management of small businesses, this is a huge waste. "The business of the industry is brutal, you may have spent a billion-something that you didn't see." There is a software system, which is no use, no value. ”

One of the details of Tencent's scientific understanding is that vertical electric trader Vcotton Cotton first after the successful financing, founder Lin was once very inflated, had spent tens of millions of ads in the audience, and in Beijing Mentougou Rent Luxury Office, the final product sales did not pull up, but the cash flow broke, ended up now closed. Such examples are not uncommon in the electric business sector.

The other side of the electricity business enterprise that burns money is not cooperate. Shang said, originally only when, Amazon China selling books, now Jingdong, Suning easy to buy also sell books, it caused basic loss of money. But another way of thinking, if only when a book sold, when the settled Suning, Cat, Beijing-east platform, and ultimately can make money. "Why not?" Is that they don't want to cooperate. Not yet. ”

More and more traditional enterprises begin to awaken

Shang that the nature of the business is a business, from the essence, e-commerce and it does not have much to do with the Web site can not say how developed IT system, which is more of a trick.

"Many ground-store IT systems are much more complex than electrical-business systems," he said. For example, the beauty of the supermarket is a traditional company, but its IT systems to invest more people and fees than e-commerce companies, the supermarket is very it. So we have some misunderstanding to the electricity quotient, think the electric quotient is too dazzle, the net needs a lot of technology, actually not at all. ”

Shang asserts that the future will not even have the concept of electricity, because all companies are electric dealers, are selling things through the internet. Shang This stance and sing CEO Dai (Weibo) has a similar point of view.

Dai has said that with the advent of the Internet, the Internet is becoming a tool, just as the power industry has become the infrastructure, the workers who cling to electricity become a small crowd, the real shine is the electricity based on the development of microwave ovens, refrigerators and other industries. "I have a deep concern that if I do not become an Internet person from the Internet, I am likely to be eliminated from the times." Dai said that only the internet is very dangerous, the future "cement" will dominate the internet.

More and more traditional enterprises are indeed beginning to awaken. Suning in 2012 ferocious anomaly. 2012-year double 11 Alibaba claimed to pay the total sales of 19.1 billion yuan, which is more stimulating the traditional layout of the electric business industry. Wanda Chairman Wang has said that Wanda to do "intelligent Square", the line and offline combination. According to Wang's plan, Wanda Group's Electric Business Road is: by electronic commerce will its commercial real estate, the Superior hotel, the traveling, the movie theater line and the chain store five main business lines simultaneously packs the line, opens the fictitious on-line commercial complex.

Maotai is also in the construction of direct shop at the same time, in July last year, the establishment of the official Maotai Online Mall, the overall responsibility for Maotai and its products online sales business, Maotai is also constantly working with the Internet platform. Maotai Platinum Wine CEO Chen said that the "net" is aimed at young groups.

Industry vertical Electricity quotient will be the main mode of electric business

The current electricity quotient two yuan economic phenomenon is serious, the day cat, the Jing Dong unceasingly bigger, the original some leading vertical website has already sold or seeks the sale, this lets the outside world to the vertical electric business prospect to look pale. Shang also admitted that in the electric business industry two yuan economic phenomenon is serious, but in the days of Cats, Beijing and the east bigger, does not mean that the vertical electric business has no chance.

"China's millions of million of consumption, one or two companies do not serve, the system is too large, the subdivision of the electrical business can be more professional, the industry of vertical electric operators, in the future will become the main mode of the electricity business." ”

Shang that the red children are facing the acquisition is not because of the mother and child category, but the problem of team management, in the mother and child of this classification of the future will still have a very good company. "The electric business industry will find a way to live and die." For the vertical electric business, the most important thing is to make money at the foot, but also to put down their emotions, and strive to earn money. ”

Shang more like a businessman, in the Beijing-east, the cat, suning competition, Jiuxian Network is quietly settled into the major platforms. "The electricity dealer that makes wine, we are specialized, the platform side is amateur." Platform's comprehensive strength is much bigger than me, but in the wine classification category of strength than I am far, every winery boss came, I have invited him to eat and drink, he can do it, he can't. ”

Shang said, Jiuxian net although only a few billion a year of scale, but overall energy on the wine, Jiuxian slogan is, not King, not seek hegemony, not curse, do not fight. "Whether it is the cat or Jing Dong, I have to do is to pursue a good service, because I have more products, good service, low prices, door-to-door." ”

This is also the current principle of survival. Excellent purchase CMO Xu said, settled in the cat, Jing Dong, suning is not a disgrace, for the excellent purchase, relying on hundred Li Resources, with a stronger supply chain, once to do will get a better return. Of course, the other platform strategy is the whole strategy below the branch, most of the resources are still cast in the main station.

An electric trader to Tencent Technology, said, "vertical electric business is more marathon run, rather than hundred meters sprint, the pursuit of the scale of the game has changed, in the days of the cat, the Beijing-East competition for the platform to do large-scale, vertical electric business also to depth, specialization direction." The most important thing for vertical now is to cut costs and make profits as soon as possible. ”