Taiwan media: Mainland Electric manufacturers squeeze retail business transformation of Taiwanese businessmen inevitable

Xinhua Beijing, January 4, Taiwan, "Wang Pao" 4th published an editorial said that Taiwan's retail industry entered the mainland very early, but with many local established enterprises similar to the face of "e-commerce era" slow and hesitant, and even has lagged behind rivals. When the retail industry is being squeezed by the electric business, it is inevitable to think about the transformation of "electronic Business".

The article excerpts as follows:

How fast is the development of E-commerce in mainland China? 2008 Taobao sales accounted for the traditional channel retail total of 0.87, 2011 has reached 3.44, the December 12 this year accounted for 30, sales from 100 billion to 1 trillion yuan, Taobao only used 4 years.

Even more alarming is that Taobao is only the mainland electric business faucet, followed by the Jingdong, Suning, Gome and other super large-scale comprehensive electricity, as well as more than hundred kinds of electric dealers. In 2012, the total scale of mainland electric dealers will exceed 6 trillion yuan, reaching GDP12.

When an industry grows at this rate, there is a significant change in the overall business environment. The marketing model is "Internet". Currently, the mainland's traditional access and Internet sales accounted for 90 and 10 of total retail sales respectively, which is expected to reach 30 to 50 in the next 10 years.

For Taiwanese enterprises, the face of the mainland has been quite stable electricity quotient pattern, cross-strait payment docking problem has not been resolved, to the mainland to operate a comprehensive platform is not easy. But for the traditional Taiwan retail industry, the use of mainland electric business to the booming of the consumer, is still a good opportunity for transformation and upgrading.

Taiwan's retail industry has entered the mainland very early, but, like many of its homegrown counterparts, has been hesitant to face the "e-commerce era" and has even lagged behind rivals. When the retail industry is being squeezed by the electric business, it is inevitable to think about the transformation of "electronic Business".

According to the market environment of mainland China, there are two types of enterprises in Taiwan which are suitable for vigorously developing electric power companies. One is the retail companies that already have brand value under the online market, just transfer offline mode to online. In the manufacturing, brand, distribution, logistics 4 important links, such enterprises only need to learn the management of the two links, relatively easy. In this respect, the 2011 began in the mainland comprehensive electric business of the catering giant McDonald's, KFC is worth learning.

The second type of enterprise is an emerging enterprise that has not yet entered or has just entered the mainland market. Although in Taiwan is offline enterprises, can also be directly from the mainland in the online to avoid the cost of offline retail. can choose to do in the mainland of the existing electric platform to do access, shop, can also open a separate Web site. While the latter is suitable for management, it needs more marketing costs. This type of enterprise is the key to the product, marketing Internet, with online promotion drive sales, the mainland in a short period of time, the rise of the garment electric dealer van Goods is an example.

There is also a class of enterprises, in Taiwan have to do the experience of the electrical business, such enterprises have entered the mainland "electric business Era" will. However, the difference in the mainland electric business environment will bring a lot of differences, simply copy the model in Taiwan to the mainland, not feasible, the above 3 types of enterprises need to pay attention.

The difference is first reflected in the market. Taiwan's electricity business development in the mature period, the market is smaller, resulting in more enterprises to do products. The characteristics of mainland electric power market is huge and fierce competition, so customer service may be more important than the product itself. There was a Taiwan clothing brand in the mainland to do online operations, only sent 2 to 3 people to do part-time customer service, resulting in a total inability to respond to a large number of advisory requests.

Second, in the mainland to do electricity, a good logistics system is very important. Most Taiwanese electric dealers are based on the network logistics distribution system of the convenience store community, which is called "Shop matching", but there is no such foundation in the mainland, and the mature logistics mode is still in exploration. The geographical scale and population of the mainland are also far greater than that of Taiwan, and if the electricity merchants wish to expand to 2 or 3 line cities and even rural areas, they need to pay more attention to logistics design.

Despite these difficulties, the mainland continues to promote the process of urbanization, by 2020, still need to add hundreds of users of electricity. At the same time, Taiwanese companies now on the mainland are facing more intense competition in an open environment than they did 20 years ago. From this point of view, if we can seize the mainland "Electronic Business era" opportunities, will become Taiwan's enterprises in the mainland to upgrade the important step.