The electric business war lingering the key to who can make money

Source of manuscript: Shanlong

By Taobao, CAT, Poly cost-effective joint launch, hundreds of consumer and group purchase of electric business sites, thousands of traditional brands, tens of thousands of shops and other widely involved in the share of the national Electric Business "double 11" online carnival has fallen, but the war between the electric business is far from over.

The main means of the price of many electric dealers in the constant search for expanded sales, but also shoulder the burden of profit losses. In the increasingly fierce price war, Beijing-east, Suning easy to buy, Gome and other Up-and-comer Although has shown an astonishing pace of catch-up, but in the market position, profit model, they obviously have been behind the days of the cat multiple levels.

A

The cat alone earns the loss of the rival group

As one of the initiators of the "double 11" shopping street, the day cat is famous for its fame and fortune in this event.

According to relevant reports, the shopping festival Taobao realized a total of 19.1 billion yuan turnover, which day cat shopping mall on the day turnover of 13.2 billion yuan. According to the days of the cat, said Zhang Yong, president of the cat, according to the rules of the day, the cat will be based on different categories according to 3%-5% from the sales of the Commission, which means that the day the Cat by business promotion on the day more than 400 million yuan.

To this news, the reporter calls the cat related responsible person, it did not evaluate this, and said the day cat is not willing to this activity and profit hook.

Lei, an expert in China's E-commerce library, believes the data is reliable. "The profitability of the cat can be determined. First of all, as a platform class of electric business enterprises, from the sales of the percentage should be about 4%, which nearly 500 million of the income is determined. Second, the cat also has a Web page value-added services revenue, such as advertising fees for businesses, the rank fee and so on. "Lei said.

The platform-type electric business enterprise mentioned by Lei is a concept relative to the proprietary-type Point electric dealer. As the name suggests, the platform-type electric trader represented by the cat only provides the trading platform, does not provide the commodity sale, but the latter provides a series of shopping service. Su Yanyan, an analyst with analysts, said that, from the current situation, platform-type consumer and proprietary self-marketing the profitability of the difference is quite large, platform-type maximum can reach 30%, and the 3C-class proprietary consumer only 3% to 5%.

Jingdong is one of the representative enterprises of the self-owned electric business. According to the relevant departments of the test results show that the gross margin of jingdong products between 4%-22.43%, the highest gross profit margin after the promotion reached 10%. In this regard, Beijing-east said that the sales promotion war, its gross profit margin of 8% or so. Lok Amoy Network CEO Bi Sheng Public Accounts: Vertical purchase and sale of the company's cost = Logistics 10%+ Warehousing 10%+ Reverse Logistics 3%+ Customer Service 1%+ Technology 4%+ Management 10%+ Marketing 10%+ collection charges 2%+ packaging 1% 50%. The premise of price war is that the average gross margin is only 10%, net loss is 40%.

b

Still no profit in the short term

Mo Dai, director of the retail Department of China's E-commerce Research Center, said: "Although the current profitability of proprietary electric dealers is poor, this does not mean that such companies are not good prospects." From the current environment, the Shangdou is still in the initial stage, they need a large number of brand promotion and self-built logistics costs, at the same time the market environment is not mature to the price war, which is doomed to short-term will not have an objective profitability. "However, in the long run, self-electronics dealers are still the future direction of development," they are more likely to provide quality services and ensure the goods are of a high standard, which is the direction of business development. ”

Analysts say there are two main reasons for the difficulty of making profits for proprietary electric dealers. Objectively, the current consumer will choose the main reason for the electricity quotient is the price factor drive, and the current parity site, in this context, the electric dealer's gross margin is difficult to improve. Lei said. Subjectively, some electric dealers also embrace the attitude of burning money to join the market war. Lei that there are three main reasons for this deformity.

First, from the source of capital, the majority of electric business enterprises drink "VC milk" grew up, the money used for investment is improper; second, from the business model, the electric Commerce website especially the shopping website basically uses is "the first happy enclosure" strategy, through hits the advertisement, the Big dozen price war attracts the flow, the user, the order big sales, Mostly at the expense of gross profits, a lot of capital also value the industry share of the electric Commerce website and the advantage of the latter; third, from overseas samples, many of China's electronic business models are copied or left behind the U.S. successful business model, and the company is willing to spend a lot of money to see Amazon's successful experience.

Take Jingdong as an example, its loss amounted to 157 million yuan last year, and according to Beijing East before the statement, its 2015 years have no intention to profit.

In fact, for the consumer platform-type business, the current number of proprietary electric dealers are eager to. including Tencent, Baidu and other electronic giants have previously built a platform for electricity. Now, Jing-dong, excellent Amazon, when competitors have also thrown out of the platform to invest in the olive branch, but the effect is not as good as Taobao. "Although platform-type electric dealers are more likely to make a profit from the model, it does not mean that all practitioners can take a piece." The huge profits of the cat are based on its more than 50% share, strong brand awareness and the commercial operation of the pipeline. "Lei said.

C

The "money-pooling" era will continue

Perhaps some people can not help but ask, in the background of the loss repeatedly, why a number of proprietary dealers also "at the expense of" to participate in many price wars?

In this regard, Mo Dai green that: "Participation in the electric business, on the one hand, for their own share, brand promotion, the need for flow, but also the opportunity to eliminate some of the inventory, so that the withdrawal of funds. ”

In fact, the electric business industry within the last year or two is also quietly changing. A few days ago, Dangdang CEO Guoqing High-profile announced settled Taobao, and joked that "the cat is too strong", the current industry is facing the cold winter, 3 years after the electric business will certainly only be left 3 companies.

In this regard, a number of analysts rated as "too extreme", all believe that the industry will appear integration phenomenon.

In the face of the cat has been sitting on the market's first share and perfect mode, Dangdang has chosen to enter the "winter", that other proprietary type of electric business enterprises How to stand in the brutal battlefield?

"Money is still the first factor," Mo Dai said. At present, the electric business industry is still in the relatively primary stage, the price war is unavoidable, which requires the major electric dealers need to have enough capital to consume, endure to the market mature. ”

According to the "2012 China e-Commerce Industry Development Report" published by Champ Consulting, it shows that most enterprises in the electric business sector are losing money, apparently facing huge financial pressure. Whether it is logistics, warehousing, payment or merchandise and other links, need a lot of financial support.

In fact, the current market in the more mainstream of many household appliances are "background". Traditional network giants, the day cat back Taobao, easy to buy back Tencent; entity giants, Suning easy to buy belongs to the network of Suning group steps, and Gome is the role of Gome Online mall and Bowser network two electric business enterprises. Even if there is no "background" of Jingdong, recently also formally completed a new round of financing, financing amount of 400 million U.S. dollars, for the next price war ready. This is the fifth round of financing of the east of Beijing, a total of 2.081 billion U.S. dollars for financing.

The

Lei said: "In the background of the funds in place, whether the electrical business can obtain the favor of consumers, but also to do their own work." Provide cost-effective products, quality services and create attractive brands, these factors will determine the ownership of consumers. The