Talk about the transformation of China's electricity dealers

Written in front of the words: This is a serial, considered for a long time, do not know where to start writing. The development of China's electrical business to today, can be said to have formed a scale, but too many electric dealers did not find a right way to go. Although there have been philosophers said that the road is to come out, but looking back on the growth trajectory of the electric business is not difficult to find, this road may lead to a cliff, perhaps to success, perhaps to hell ... A few of the future, will involve a number of well-known models and the analysis of the future, I hope you put forward sincere opinions, rather than complaining. At the same time, I also welcome the opinions of the electric business bosses, after all, I know some things may be too superficial.

From Macaulay and when the listing, to the Lok Tao Network CEO Bi Sheng questioned the electric business model, throwing out the transformation of speech, the Chinese electric business of the winter has come. As a rely on burning money to survive, by crazy hit the money to occupy the market business model, electric business is impetuous, is morbid. At present, the popularity of the capital to the electric business is decreasing, the difficulty of the electric circle money is increasing, the transformation has become the only outlet of the electric business. So, how does the electrical business change?

Let's start with the confusion of the electric dealers: how to get out of the swamp where the money is spent buying markets. In depth, the reason why the electricity business will burn money madly, or because of the pattern of the sleepy. Whether it is Taobao Mall, or Jingdong and when, or Consumer-to-consumer, as well as the outstanding Amazon such a platform, its essence is the Internet platform as a sales channel. A period of time before the booming group buying, its essence is the internet as a sales channel.

At first, the rise of the electricity business was due to the low cost advantage of the Internet. In today's opinion, the electric business and the traditional channel compared to have no advantage. According to Amoy CEO Bi Sheng revealed that Baidu ad bit last year a position is 350,000/month, the beginning of this year has risen to 700,000/month, if the bidding rankings may even be as high as 8 million/month. In addition to the subway, public transport advertising, many of the annual promotional costs of electric dealers are calculated by billions.

In addition to the normal cost of promotion, the electric dealers in order to seize the market, usually will be a loss to make a yell. For example, every customer's 29-dollar T-shirt, when the special books, as well as the Beijing-east than the market price a lot of home appliances digital products, are losing money to open up the market. Excessive marketing costs, coupled with a succession of loss promotion, the electrical business is destined to be a fast-burning industry.

The rapid burning of money, so that the marketing cost of electric dealers is far higher than the traditional channels. From a commercial point of view, a serious loss of the business model is also unhealthy, the electrical business transformation is also the trend, after all, any business model needs to be profitable. As Bi Sheng said, the future of the electricity business is not profitable, ultimately only dead. However, for those who are accustomed to burning money to buy market share, where is the transition road?

From the commercial logic, the electric dealer must reduce its marketing cost, give full play to the Internet marketing advantage, this is the power of the electric business. Now most of the electric business platform, and the traditional store is not much different, just to sell electronic. Traditional stores are based on the physical store marketing, and the electric business platform is based on the Internet platform marketing. Therefore, how to reduce the marketing cost of electric dealers is a way for the transformation of the electric business.

In the micro-broad line of the road today, some Taobao merchants began to use micro-bo marketing, and achieved good results. In addition, Amoy is also trying to differentiate marketing, with the least amount of delivery in exchange for the greatest return. In the Apple app platform on the "Angry Birds" game is quite hot, Amoy and app manufacturers teamed up to launch the bird shoes, the market on the day sales hot. It is reported that Amoy also with Fruit Ninja, too drum Tatsu people are exclusive authorized Amoy on the Chinese Internet sales printed with its game image of shoes.

Taobao merchants to engage in micro-bo marketing, Amoy and partners with the help of hot events push "alternative brand" shoes, such practices, are the use of innovative marketing techniques to reduce marketing costs, to prevent the spread of advertising. From the performance point of view, as long as the product and planning to the power, electric business marketing costs can be compressed to the lowest.

From another point of view, if the electricity business platform sales of products and traditional stores are no different, the power quotient of the attractiveness and value of how to reflect? Specifically, the electric business platform if the sale of a unique commodity, its sales naturally do not worry. Just like Amoy sale of bird shoes, only the Amoy one to sell, only through Word-of-mouth marketing will also achieve considerable results.

On the whole, it is a feasible way for electric business to transform, reduce marketing cost and open up unique product line. However, the situation of each appliance business platform is different, how the transformation will also have different outlets. Finally, I look forward to the electrical business can get rid of that impetuous, and really let the Internet become a low-cost marketing platform, so that the electricity business away from the cycle of burning money growth.