The dilemma of the vertical electric trader, where the transition road is

Recently, online rumors have been famous of the footwear business Network sold to former employees, the original Lok Tao Network CEO Bi Sheng has led its core staff to start a new entrepreneurial project. In this regard, the media contacted the Bi Sheng, and its response said that the child is not convenient to answer the acquisition, the specific circumstances of the early May after the completion of the formal interview.

According to this reply tone inference, it seems to sell rumors should be true. However, whether the news is true, it does not seem to be the focus of attention, we are concerned about the status of the vertical electric business. Because of the Lok Tao network before the sale, another vertical electric business website Qiao words only just closed down less than one months. And earlier, what every guest crisis, wheat forest retreat, red children, and so on, and so on. Vertical electric dealer Reports are endless, we can not help but ask the vertical electric dealer what happened?

The flip side of the vertical electric quotient is the boom of the vertical electric trader. The website of the vertical electric dealer will successfully go to US IPO, in a short time, its market value is approaching the billion mark. Before this, China broke through the tens of billions of internet companies only Baidu, Ali, Tencent, Millet, 3,605, although NetEase has entered tens of billions of company queues, but quickly disappeared from the queue. Not only that, another vertical distributor, the U.S. Securities and Exchange Commission, also recently submitted a prospectus to the SEC. In other words, poly-Mei products are ready to go public.

Relative to the bad news of various vertical electric companies in front, the only goods will squeeze into the tens of billions of dollars in the company, Poly-US excellent products bucking the IPO may be more argumentative value, do they not encounter the plight of vertical electric dealers?

The plight of the only products

With such a doubt, the peak brother has studied now is the tuyere of the vertical electric dealer representative only product will. From its market growth rate, the only product will be from 2012 onwards, the growth rate has been declining every year. In other words, its demographic dividend period or will be over, and now he faces the biggest problem is how to activate the old user to achieve the purchase again. is a single purchase, rather than per capita purchase, only the goods will be reported to the average per capita repeat purchase, such data may not be meaningful.

Again from the growth of space, the present only goods will occupy the tail goods market share of less than 5%, there is a lot of room for growth. On the other hand, because the stock price of the goods will be too excellent, it will also trigger the coveted and entry of the Giants, which will be a bad news for the goods. At present, the situation is, Jing-dong, where the guests, when all the online similar to the special products will be sold, even the Ali Department of the collection of cost-effective products are similar.

Finally, from the commercial nature, its core value is to help manufacturers, suppliers to consume inventory, improve cash flow. Plainly is a "move box to make a difference" process, its core value replication cost is lower. Because the purpose of a supplier or a brand is to consume inventory, it will not sign an exclusive cooperation agreement with it. In other words, if the Beijing-east, the cat and so on if the supply of more favorable conditions for suppliers, suppliers will migrate to Jingdong, which also reflects the only product will be insufficient control of the supply.

As for cash utilization, gross margin and other related data, peak elder brother do not do more description, because it is tactical level indicators. This shows that the main barriers to competition for the user's cognitive barriers, but such a barrier is not really a barrier, it will be the competition with the advertising shock and be broken. As for some people said, user operation is the only product will be the barrier, peak brother can only laugh but not language, in front of bat giants who is the master of user operations?

After the analysis of the only product will be, peak brother's first feeling is, if the only product will adhere to the future of the existing strategy, he will be the next Mai Lin. As compared with the integrated platform, it does not have any advantages, the sale is homogeneous products, the cost is far higher than the comprehensive platform, the user needs of a diversified degree of satisfaction and lower than the integrated electric quotient. Now, the only difference from those who have fallen is that only the goods will find a high margin category, and the profits will be enough to support their independent development, but unfortunately this kind of good luck with the Giants to join, would be gone forever. The most important thing is, now the big comprehensive platform has found the patron, or is the giant's business, this is the only product will be the most incomparable place. Of course, this is the current plight of all the vertical electric operators.

Vertical electric business transformation, where the road

Such a dilemma now seems to have no solution, in front of the vertical electric operators only transformation. For the transformation, peak elder brother gave the following several roads:

The first road, the transformation to do integrated platform. Like Jingdong's gorgeous turn. That way they can get rid of the heavy inventory and get rid of the high cost of the traffic, because these risks can all be transferred to the "seller". Even if it is not transferred to the supplier, it can be diluted by the whole category. It is a pity that the pattern of the integrated electricity business seems to have been set, and many services have become more standardized.

The second way, the transformation of a personalized brand, like Uniqlo, Zara. Because the brand does not need to care too much for users to get the cost, after all, the user cost is only a small part of the cost of brand operators. Even most of the integrated electric business platform does not charge your traffic charges, directly take the way of sales. For you, the electric dealer is a distribution channel, you can open a number of electronic business platform at the same time, or even open stores.

The third way, the transformation is to do the media, make tools, their own blood supply to the flow. Like the Ma honeycomb, watercress, Wei Feng net, tiger flutter, blood, and so on, they are not in essence the electricity quotient, but media, tools. Even though the network is also rich through the media, the electric dealer is just a way for them to become. It uses Internet tools or content to attract users and then to cash in. When the media do a good job, the electric dealer is only one of the media, the future can also choose the game, such as diversification of the portfolio to achieve profitability.

The last road, is the transformation of the operation for the brand to do the electrical business services. Or we can understand as two-way, the brand of products sold to the Internet channel, this is actually a dead-end. Because this is very not in line with Internet characteristics, the biggest feature of the internet is flat, transparent information, brand operators can communicate directly with users, then on behalf of the operation of the living space where? Is it that the brand does not have the ability to do the electric business, or that the brand does not know the cat double 136 billion, did not see the trend of integration with the Internet?

If you insist on doing vertical electric business platform, peak brother to you only admire. The high cost does not say, the user experience you also can not spell the comprehensive electricity quotient, must know for the user, pursues is the convenient, the cheap, the diversification, the high service standard shopping experience, but is not "the minority populace commodity". In fact, the peak elder brother think must do vertical electricity quotient, break the current predicament still have method to say, that is monopoly sale, but this method may not be suitable for most entrepreneur.

Conclusion

You may not find, in fact, today's Internet competition has become a living person, is no longer a time to spell traffic. So how to do a good job of user operation, enhance the user's emotional value added, perhaps is the next step of the electrical business need to consider the issue. As for the vertical electrical business, or the transformation of the early, otherwise there will be no way to turn.