Listing Eve Everest president: selling services is the way out

Source: Internet
Author: User
Keywords Di ICT
Tags added business channel channel operators company consumers content development

Now the nation's largest mobile phone retail chain Di ICT on July 29 listed on the Main Board of Hong Kong Stock Exchange. On the eve of the IPO, Xinxin, president of DTT Ltd., claimed in the exclusive connection with Tencent Technology that "In the face of the rapid development of e-commerce channels, only personalized service cards can become the core weapon of traditional channel operators. Value-added services and online The combination of the next channel experience has become Di ICT's future killer.

However, in fact, this is not the first time Dixon went public. According to the prospectus disclosure, Dixon passed Hong Kong listing preparation as early as 2005, but was later canceled. In 2011, China Securities Regulatory Commission proposed the listing of A-share applications, but regrettably once again "without cure."

When it comes to listing, Jinxin revealed that Di ICT's listing plan started from October last year and all the procedures of HKEx were passed in eight months. When choosing this time to go public, it did not consider what a good environment, but wanted its own service To bring the user a better mobile Internet experience through the market.

Reliance on operators is not a bad thing

As we all know, Di ICT since its establishment 21 years has been committed to the sale of mobile communications terminals, is currently the most stores, covering the provinces the most extensive communications retail chain. Currently in the country's 26 provinces (municipalities) has more than 3,000 retail stores, which adopted a direct store and franchise stores chain mode of integration to individual consumers selling mobile phones, accessories and provide value-added software services, personalized mobile services , After sales and other integrated services.

However, the success of DiCom in the retail business relies heavily on the cooperation with the three major mobile operators. According to the company's own published data, as of the end of each year of 2011, 2012 and 2013, their service revenue gross profit from operators were 2.14 billion yuan, 276 million yuan and 420 million yuan respectively, accounting for 17.6% of its gross profit margin %, 18.8%, 24.2%, showing an upward trend year by year.

In response, Jinxin Tencent Technology said, "Di ICT and operators over the years to maintain good cooperation, to say that relying on operators is not a bad thing, from 2G, 3G to today's 4G, Di ICT is with the changes in operators and Change their sense of service, from the initial 2G era to sell bare metal, selling accessories to sell value-added services, Di ICT has formed its own service system and brand channels, on the other hand also helps operators to speed up the flow of business management to further enhance User APRU value. "

According to Di ICT prospectus, in 2013 Di ICT's revenue structure, revenue from operators accounted for 3.9%, gross profit reached 24.2%, while revenue from value-added services accounted for only 1%, but the contribution of gross profit Accounting for 7.2%, showing a huge room for growth of value-added services.

With the decline of operators on the terminal subsidies, the attractiveness of its channels to terminal manufacturers also will be reduced. On the contrary, the traditional open channels will once again be valued. "Operators cut off the terminal, user subsidies, but channel subsidies but increased." Jin Xin frankly.

Wang Xiaochu, chairman of China Telecom, said earlier that in 2014, more subsidy users will be shifted to subsidy channels, and subsidies will be grasped by channels to increase channel rebates. In the terminal level manufacturers, such as Huawei, Lenovo, TCL and other social channels have been put on swing before the firm will once again firmly committed to the determination. In the traditional open channel layout vivo, OPPO, Jinli and other mobile phone companies will be a deeper level of investment.

It is understood that Di ICT intends to raise 56% of the proceeds for the expansion of retail and distribution networks, the company chairman Liu Donghai said the company outlets in the past mainly in the first and second tier cities in the future will increase the outlets in third and fourth tier cities to meet Demand for popularization of smartphones in the Mainland.

Jinxin revealed that after the listing of Di ICT plans to expand 2,000 stores nationwide within 2 years and to reach the coverage of 5,000 stores across the country by 2016. It is worth mentioning that, based on the original cell phone brand stores Dixintong also joint terminal manufacturers to open up a large flagship experience shop.

Accelerate the transformation of retail to value-added services

From the prospectus, expanding value-added services to improve the O2O platform, the development of mobile Internet business is Di ICT's future transformation program.

It is understood that since 2010, Di ICT has tried the model of retail transformation services and put forward a new strategy of "retail transformation services". The strategy involves a number of content such as carrier business, WeChat service, smart accessories, value-added services, Liang number business, after-sales service and so on.

Di ICT holds the last part of mobile phone sales, can be said that the natural entrance of mobile Internet. "Smartphones are no longer standardized products and need to be used with different contracts and content. DSI realized this profoundly in 2010 and started the road to transformation. At present, it has achieved very good results. As smartphones become personalized products , Dixon pass more advantages than online. "Jinxin said.

Specifically, Dixon provides consumers with free cut card service, free charging service, free download service, mobile backup service, free foil service, free upgrade card number, change package setting, payment, operator business handling (mobile) Free service content. At the same time, all purchase consumers will also enjoy within seven days no reason to return machine, different store returned service, WeChat booking maintenance services, free spare service and other attentive after-sales service content.

In accordance with the vision of founder Liu Donghai, DiComcom provides one-stop 'life-and-death' one-stop service for every mobile phone and makes DiComcom a true mobile service brand.

However, the bumpy Di ICT in the capital market still needs to do a lot of homework, especially in the value-added services, there is still a problem of low user stickiness, and the license for virtual operators may be a turning point.

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