Note: The electric dealer has the risk to enter needs to be cautious

Once upon a time, "e-commerce" has become the lifeblood of China's internet economy, the focus of countless media enthusiastic praise, has been dubbed countless sparkling halo. With the increasing number of netizens, increasing market share and emerging models, trillions of of the market cake attracts millions of entrepreneurs and investors.

On the bright side, countless new businesses and individuals joining the ranks of E-commerce have injected fresh blood into the internet economy, bringing in capital, talent, goods, resources, logistics, channels and other business elements. However, it must be emphasized that many entrepreneurs, small and medium-sized electric dealers and entrepreneurs, because from the traditional industry, completely do not understand the law of E-commerce economic development blindly into the management consciousness is extremely chaotic. Want to rely on a simple website to "four two daughter", the establishment of a so-called electric business platform to impact on the "listing."

The author of the country in this article want to express is: electronic commerce has a huge market potential, but also with all traditional industries, like the huge risk and competition, to enter the field of E-commerce must be considered, and to have follow-up support. The time for the electricity market to become wealthy overnight has passed.

One, the market scale is very big, the competition is extremely brutal.

Only after a few years, China's overall market size has exceeded trillions of yuan, its development rate far more than the traditional Chinese food, textile, chemical, electromechanical and other industries. 2011 China's overall consumer environment is clear, the number of Internet users will be speeding up, China's electricity market scale will inevitably double again. In addition, Chinese netizens ' shopping loyalty is not high, and the problem of homogeneity of commodities is difficult to solve in the short term, creating opportunities for the new websites. The huge cake seems to be in sight, as long as the hand can easily cut off.

But is that really the case?

The market occupies the most important share of the electricity market, such as digital, health products, fashion supplies, and so on. But there are still only a handful of giants who can really make a lot of money. Taking digital goods as an example, it is known that "Jing Dong" is the industry eldest brother, other digital electric companies have been difficult to do. But Beijing east is also struggling to support a few years, to truly achieve full profit, its arduous journey is difficult to imagine.

China's vertical, portal and regional fashion electric dealers have already surpassed a hundred thousand of. Can be truly influential in the market site, only the wheat bag, catwalk, shopping network, only goods will not exceed 20 sites. And hundreds of thousands of or even millions of entrepreneurial, small and medium-sized sites have been obliterated market tide.

Of course, there are a lot of electric dealers make money, there are also many unknown electric operators have been in a profitable state. But the author's point of view is that, while in a fair market environment, there is a chance that any electric buyer will have the opportunity to attract a national consumer. But it must also be understood that any electric dealer is also directly facing all the competitors in the country, including the already huge giant alligator website. There is no regional restrictions, channel restrictions, is not only the great advantage of the development of the electric business, but also directly caused the electricity dealers have to face the huge competitive reality, to cut the cake must have an overwhelming advantage.

Second, the entry threshold is very low, development is extremely difficult.

China's management of the power of the relevant policy is still less, the threshold to enter the electricity business is very low. Only with legal personality, through the state record, the application of the right to sell goods, you can set up a power company. Loose policies, lower thresholds, and huge market incentives. So many traditional enterprises and bosses, have entered the electrical business. Coupled with a variety of electrical business services companies a dime, can help the electrical business to achieve a variety of outsourcing support. If you want to do a simple function of the electrical business site, to project planning to run the line, the fastest one week can be completed.

With the participation of many traditional enterprises and individuals, it really prompted the growth of the Chinese electric Business "Hustle", and the innovation launched many electric business models and platforms, which stimulated the consumption of netizens. But the serious problem also appears, that is the author in countless articles repeatedly stressed: "The electric business entrepreneur completely will the traditional enterprise operation experience, uses in the Electric Business website Management", its result can only be the dismal ending. The most common phenomenon is: many enterprises open mouth to talk about E-commerce is Alibaba and Taobao, the reason is very simple, because these enterprises are through Alibaba to taste the sweetness of e-commerce.

The author of the country has for the liquefied petroleum gas enterprises, rubber enterprises have done business-to-business platform strategic planning, these enterprises have a strong economic strength and industry background. But when it comes to operating prospects, it is surprisingly consistent, both in the short term to become the industry's Alibaba, but also to rob Alibaba's industry members. However, they did not consider the current electronic business environment, and the competitors they are facing, the most frightening thing is the "input-output ratio" and the required profit time point of these enterprises, all of which make the author laugh and Cry.

Want to low input high output and no mistake, the key lies in the current electric business environment, netizens awareness, competitive environment has not been 2004 years. Whether it is a person to invest in the electric business platform, or have a strong enterprise-supported electric platform, must face themselves, face the market, face up to competitors, and must understand that an electric business platform to grow into a network of giant crocodiles, the process will be very tortuous, very difficult!

Third, the creation of funds is very small, the promotion is extremely burning money.

The key elements that lead to the congestion and crowds of China's electricity-dealers ' websites are the low cost of creation, in addition to the low threshold. Make a full-featured simple Business-to-consumer website with a technical cost of not more than 20,000. Many entrepreneurs also see this point, only to think of the electricity market "with small bo big" fishing a few barrels of gold.

There have been dozens of pioneering websites to ask authors how to quickly increase the impact of the brand, rapid increase in traffic and conversion rate, can quickly enhance the site sales and attract VC investment. And these sites are only 500,000 of the money, and these funds include office location, staff wages, office costs, promotional costs and so the full cost. In addition to advising them to carry out regional marketing, try to avoid hoarding goods, the limited costs spent on brand marketing rather than hard to put on, the author really do not think of a better solution. These entrepreneurs are just the tip of the iceberg of the millions of power dealers, and many people and companies have even prepared a budget of tens of thousands of yuan, ready to make a fortune in the electricity market. In the face of these passionate enterprises and individuals, I really do not know whether the inspiration or blow.

In the electricity business now popular word: "No millions of do not do electric dealer." "It's not that consumers are xianpinaifu and only buy goods or services that are rich," he said. In fact, the essence of this sentence is that only in the payment of team building, office costs, hardware equipment, commodity preparation and other costs, there must be sufficient funds for market promotion. Today, the more scientific marketing cost is: 4:6. That is to say, if there is a 1 million of the capital, at least 600,000 to be used for marketing, the remaining 400,000 is the disposable start-up costs.

Here, the author of the country want to suggest a large number of entrepreneurs, please put "venture capital" and "promotional funds" separately calculated. In this way, in the promotion of their own website brand, in the face of market competition, the emboldened can still be enough, the odds can also be a big score.

All the above, not to say that there is no huge amount of money can not do electricity, after all, huge market has huge opportunities. In a word, the entrepreneur should be cool-headed, careful consideration, must have enough risk tolerance, able to respect the rules of the electric business and then enter the electricity market!

For more information, please search the "country of ambition" in Baidu.

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