The Achilles ' heel of the Flash-purchase model: lack of core competitiveness

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

In this hot July, only the goods will and when the end of the war ignited. Just out of the goods will be smashed 270 million yuan to do the promotion of the news, but also smell dangdang will be in July stock up to 400 million of the brand special selling business tail goods sinks. Although the rumours have not yet been officially confirmed, a fierce competition is inevitable, the new concept of flash purchase is hot again, and become a hot spot of public opinion in the domestic electric business field.

The time of the pointer back to a year ago, group buying industry is as hot as today's flash-shopping. However, after a year of today, group buying is like a love concubine, desolate incomparable. In addition to the United States group occasionally out to put a few data, litters group to fry the concept of buy mall, group buying industry no sound. As two kinds of ecological models, similar to the development process of the two industries, ice fire double days behind the encounter, there are too many things worth thinking and inspiring.

Flash Shopping Model weakness

Flash purchase is also called limited time to buy, is the form of special selling time, regularly introduced internationally well-known brands of goods, generally 10 percent-50 percent of the original price for exclusive members to buy. The only thing that would have started in this mode. With the model of flash-purchase, the only product of the bloody listing, the market value of 6 times times a year, which makes a lot of electric business giants racing to the false flash.

The involvement of a number of electric business giants, so that the competition into the incandescent flash. After the fight, the model of flash shopping weakness revealed that the only profit model in the fierce competition was hit. Only goods will reveal that its profit model is to brand dealers charge sales commissions, the collection of brand-name commission ratio of 20%-26%. The percentage of the Commission was lowered to 5% per cent after the customer had launched the flash-purchase channel.

After a large dive in the commission ratio, many brand operators fled from the only products. If another flash-buying platform is less than 5% commission, brand-makers will still flee. As a business model designed to clean up the brand inventory, once lost the support of brand merchants, the outcome is conceivable.

From the business model point of view, whether it is the only product, or when the tail goods sinks, we are very difficult to find the core competitiveness of the flash purchase. Flow, service, supply chain, or commission ratio? The lack of core competitiveness, the domestic flash-purchase model is now the Achilles heel.

The operational pitfalls of flash purchase

The 10 percent-50 percent sale of the original price is the same as a clearance sale at the physical retail trade. Data show that as of April 17, textile and apparel has been released 2012 annual report of the listed companies have 50, the total inventory of about 57 billion yuan (expected to be at least 250 billion of the entire industry inventory), and flash shopping in such a market environment was born.

Under the huge inventory quantity, in order to return funds, many clothing enterprises to clean up the stock, including Li Ning, seven Wolves and other well-known brands. From the major flash shopping platform is also not difficult to find, clothing is the main force of the flash purchase. Of course, the Lok Bee and the United States excellent products on the two platforms have cosmetics on the special sale, but the quantity and clothing is difficult to compare.

Too single commodity category, is also the business model of Flash purchase is facing another risk. Admittedly, the clothing industry has 250 billion yuan of inventory, in accordance with the sales capacity of the platform, in less than a year will be able to clean up all these stocks. The point to be explained is that 250 billion yuan in the inventory, including a reasonable inventory.

Obviously, the stock dividend of the flash purchase is not a permanent sale. After the stock dividend resource is exhausted, how does the flash-buy platform survive? Even now the stock of flash-buying is plentiful, and there are many hidden dangers in the business model. As the flash purchase itself is impulsive consumption, return inevitable, the resulting operating costs on some of the flash-purchase platform will impact.

It is reported that only goods will be the average return rate of 15%-20%, clothing category of return rate is up to 28%. One side is the high return rate, one side is the shrinking commission ratio, the flash-purchase model is a lot of hidden dangers. And then carefully contrasted with the red hot group buying, in the flash shopping industry we have seen the shadow of the lonely group.

It is inevitable to buy a lonely

From the definition point of view, Flash purchase and buy a certain difference. Group buying refers to groups shopping, with internet platforms to gather more consumers to get lower discounts. In fact, the domestic group buying mode, and the flash mode is exactly the same, are limited to the limit of the special sale, but the goods are different. Group Buy sales are catering, entertainment and other daily life services products, and flash purchase sales are clothing, cosmetics and other daily necessities.

In layman's parlance, flash purchase is an Internet channel for inventory cleanup, while group buying is a special promotion of the Internet channel. The commodity of the flash-purchase platform is inventory, which means that the flash-purchase platform is limited by upstream suppliers. This year the apparel industry's high inventory, the birth of a hot flash shopping, inventory reached a reasonable number, how to find a new supplier of flash purchase?

In the most brilliant flash purchase business, only products will cooperate with more than 6,000 brands, of which the exclusive cooperation brand has 800. Only goods will be bought by the hand system, its more than 300 professional buyers for the goods will be purchased. In the case of limited commodity resources and the increase of the number of flash-purchase platforms, the supply chain of the goods will have been affected. It is not difficult to imagine, in the commodity inventory to reach a reasonable, flash shopping loneliness is also inevitable.

Perhaps some people think that after the garment industry inventory is emptied, the inventory of other commodities can also become a source of flash purchase. From the traditional retail data, clothing is the largest inventory of consumer goods in the industry, such as automobiles, home appliances and 3C Digital, inventory is not too large, and will not like the apparel industry to accumulate more than 250 billion of the inventory.

There is also a point that can not be overlooked is that the lack of supply of group buying after a short time become lonely, the root cause or "low price" mode. As we all know, group purchase is only a O2O platform, and the same as flash purchase, relying on the commission to earn profits. Group Purchase order weight has not been a secret, which seriously affected the user experience, and ultimately led to the user fled group purchase. To "low price" known as the Flash purchase, and buy the same face the same problem, which is also difficult to flash the hot scene to maintain another reason.

As the saying goes, there are no good bargains. The loneliness after a short glorious period of group buying is the true portrayal of this proverb. Can the "flash purchase" of Low-cost labels escape the curse of cheap goods? In my opinion, it is difficult because the temptation of low price can not make up for the harm of inferior quality to consumers!