The breaking of the office;

This is a bit more concerned about foreign e-commerce market and traditional enterprises, but also met some friends, including the United States, the peer, the Consumer-to-consumer platform of large sellers, logistics company's boss, VC investment manager, consulting company analysts, traditional enterprises, such as electric trader trader. and a variety of different angles of thought intersection, collision a lot of sparks, verify their own views, some phenomena have a new view:

1. The profit misunderstanding of China's Business-to-consumer:

Everyone says China's profit margins are too low to be profitable. In fact, this is a misunderstanding. First look at the gross margin: The U.S. and South Korea and other mature electricity business countries, the average gross profit margin is only 10%-15%, still can be profitable. The average margin of Chinese business-to-consumer is not low, the problem is that the scale does not go, the information base is weak, it system application is few, the supply chain's control ability is insufficient, causes the cost is too high, the efficiency is too low. These external causes and internal problems, it takes a long time to solve, and continuously improve operational efficiency and reduce operating costs to optimize the supply chain (inventory turnover, per capita order processing capacity, reaction speed, etc.). The advantages of a business can be demonstrated only when operational efficiency is high enough and the operating cost is low enough. That is why America's Newegg gross margin is the retailer of half the net interest rate is the latter one times the reason. Second is net profit: In the mature market, most of the merchandise retail is net interest rate is very low, rely on economies of scale to obtain high net profit: Amazon;walmart;target and Costco net interest rate is 3; retailer is 1; Zappo is 5%. (If a one-time investment amortization is a loss), domestic diamond operators are scrambling to emulate the bluenile of 4%. (Low net interest rate is mainly attributable to cost, low net interest rate is mainly due to the price, in short, the size (model) decision cost, cost (efficiency) decision net profit;

2. Why do you want to build your own logistics:

We can see that the domestic top level of the enterprise in addition to the investment in the more stingy when when (when the commodity characteristics of the distribution requirements are also relatively low), excellence; Beijing east; new eggs; every guest; red children have their own distribution team and are expanding. Why should we invest in our own logistics? We compare the Sino-US logistics gap: The United States is the basin environment, a century of road history, complete coverage of the country, the logistics market developed (FEDEX;UPS;DHL, such as four major courier companies which do not have decades of history); China is a mountainous environment with more dirt roads than highways, and mountainous areas, Logistics market Lag (the earliest courier company also not more than 20 years), resulting in market demand and supply capacity of a serious mismatch. In such an environment, China's courier companies in the cost, speed, service, risk and other aspects of the total can not meet the requirements of the company, so there is no "specialization in the surgery industry." So on the scale of the companies to build their own logistics, to meet internal requirements to reduce costs (risk; rebate time; cod handling fee, even after reaching a certain singular cost can be lower than 3PL); external demand to enhance user experience (speed; service) and Value-added services (mobile POS card; Open box inspection; half back The ability to deal with problems on the spot; there is also implied brand promotion (distribution and distribution vehicles are mobile advertising), the market threshold (different from the core competitiveness of other companies) and future third party revenue (to help other manufacturers and merchants to do warehousing and distribution services), this account of all the come.

In fact, the initial input of the client-built logistics is not as big as imagined, mainly in the later replication expansion, attention should be paid to the internal logistics allocation of the control and terminal node controls.

3. Traditional enterprises have to pay more tuition for the company:

The majority of TOP20 in the United States are traditional enterprises, including Dell;apple;sony;hp;victoria ' S secret brand manufacturers and Bestbuy;circuit City;walmart;target Costco these large chain retailers. Korean TOP10, 8 are traditional enterprises or quasi-traditional enterprises. I believe that the future of Chinese companies is also a traditional enterprise, but not now. Why, in addition to the United States Internet market penetration rate and the high penetration of online shopping, consumer acceptance is high; online supporting facilities mature complete, the United States enterprises in the information base is high, the accumulation of time and understanding of the business is also very important. We can take a look at the traditional companies in the top B2 in Korea: The latest is also 2000 to start the business, the earliest can be traced back to 1995, now has about 10 years time. And the United States and South Korea have strong reliable data statistics and advisory bodies (such as the U.S. Bureau of Statistics; South Korea rankey; Adweb), the consumer's understanding and research on online retailing is also deep enough that almost every consumer in the United States will have a full-time or part-time TR position (e-commerce research analysis), with the top dozens of or even hundreds of people (the Amazon TR team is said to have more than 700), Only two or three of top's domestic companies have this position. When I went to the Korean company to visit the exchange, each of the companies was able to take charge of the patterns and numbers, especially to the business No.5 's New World (Korea's largest department store group) to visit when I was impressed, the reception of my marketing minister took a thick this information to me about Korea online retail development history; data, market patterns, and even the key data of the new world and competitors. In turn, to look at the domestic traditional enterprises, the understanding and preparation of the company is too inadequate, such as the recent suning to carry out a High-profile manifesto, can only be said to be ridiculous:

Weimin, President of Suning: Do you know who is the biggest enterprise in American business? is Wal-Mart.

(If President Sun is looking for data, he should know that Walmart line is not in the United States, the TOP10, online sales less than Amazon's 10%)

Suning Chairman Jindong: Open a store to spend at least 6 million or 7 million yuan, but put 3 million yuan to build a platform for a company, it is already very advanced.

(Do not know Zhang Dong refers to the "advanced" platform includes what, if the light refers to the system, Amazon on the system burned 2.7 billion knives online is not difficult to find, domestic companies, although very poor, but the top of several annual input on the system is also millions of to tens of millions)

Suning E-commerce General manager Li: Suning Mall in the next 2 years is expected to reach 5 billion sales.

(Lee must know China's development process, the status quo and future forecasts, as well as Suning's predecessors in the United States to do 10 years retailer to do 2 billion dollars, reluctantly squeezed into the TOP10, it is estimated that it will not be so blown, hehe)

Known for its rich experience in the development of professional programmers (it seems that the domestic really can gather so many of the experience of the professional programmer, no more than 3 pure companies), IBM Baidu to support the Suning mall fourth period after repeated delays finally long-awaited make out in the last few days on line, I am full of anticipation to observe, Endure the turtle speed and the ui/ue of the ordinary road, after N times process collapse, search for goods finally unbearable, in IM asked Baidu friend: "You black suning money, to not search a camera model is a bunch of Siemens Little Swan washing machine, this search/filter/structured search done too NB?" (when I wrote this article, I tried again, and finally I didn't get out of the washing machine, and became a bunch of mobile hardware peripherals)

Listening to American friends said that retailer's website is one of the best online shopping mall in the United States (although I am not very cold to that style), it seems that Su Ning is still true to the road far Ah, I hope Su Ning's efforts do not lose heart, live alive.

4. E-Business Incubator vs e-commerce biosphere:

Taobao announced the top plan, a series of two services powered by TAOBAO (excellent Uniqlo) and shop dispensers (and Shopex cooperation), I have to say that Taobao is really forward-looking, the two services in the United States has a successful case: powered by AMAZON (TARGET) and Amazon Webstore (Amazon is the largest online shop system provider in the United States, thousands of U.S. small and medium businesses use Amazon webstore to build online stores). But the positioning of Amazon and Taobao is not the same: Amazon is doing e-commerce incubator, to help companies take a walk on the Let go (for example, Amazon to their huge membership group shared to countless webstore shop, Target announced that the gradual conversion to build online mall also does not matter), Its services you can use or not, and Taobao to do is E-commerce ecological circle, third-party businesses can only live in this ecological circle, Taobao control of the entire industrial chain, come in easy to go out difficult. In fact, this is a question of sovereignty: Who is the master of the terminal? Who is the user in the end? Who does the user really approve of? Is it a business or a platform? I don't think any merchant wants to controlled forever. Yesterday I and a friend Taobao chat on this issue, he repeatedly stressed the division of labor, I insist that the sovereignty, and finally our consensus is that brand manufacturers in the future relatively easy independent Taobao, retailers will be difficult to say, hehe.

5. Multifaceted central Plains to hunt the world, the big wave Amoy sand change the remainder of the king:

With the benefit of the Business-to-consumer, media and capital to the pursuit and attention of the business-to-consumer, enterprises of various backgrounds have poured into the tide of the enterprise, do sufficient research sufficient preparation, the mind is a hot to kill in; prepared to play a protracted war, have a unique commodity advantage; And more of this is not clear. This is China's most brutal time, the vast majority of enterprises will fall, a group of already have no vitality of the old and the flash of the new company will quit the stage, and a group of competitive new business will rise, the market after the big shuffle will gradually move towards the mature norms, The survival of the consumer will have a better ability to serve consumers, the formation of a virtuous competition mechanism, the Chinese consumer of the Golden Age will come, after the chaos will be Zhi, after the change of the set pattern, after the night will break dawn.

Every time I send a generation to the electric business, I do a very boring thing: count heads. Find it interesting that each meeting will be more than a lot of new faces, some old faces are gone, but the total number of participants is increasing, the electric business will become the electricity business will turn into the annual electricity business meeting, is really the year-old flower similar, years old people different.

PS: Recent attention to the site:

1. China's first NBA portal Tiger-bashing's website "calories"

2. China's first foreign trade website "LightInTheBox"

3. LightInTheBox and Day Entertainment media cooperation authorized Idol commodity business website "Happy Box"