The first unit of platform electricity business when: missed opportunity price war retaliation and retribution

Guoqing

From the company to Peking University Press, guoqing often choose to take the subway, which is his most accustomed way of travel.

Founded Dangdang 13 years, lived in the basement, once "dancing on the rubbish" guoqing always thrifty. Internal staff said, "Guoqing wanted a money to break into two half flowers." corresponding to the guoqing thrift, Dangdang went public after the loss, only in 2009, 2010 two years to maintain profits.

December 8, 2010, when boarded the NYSE, became the first domestic platform electric dealer. That day just came to New York's guoqing burning, waiting for him and Yu in addition to the bells of the blessing, but also from the rival sniper. When the playoff-Jingdong mall and the remarkable Amazon invariably started the book price war.

In response to the Beijing-east and Amazon's provocations, guoqing put words "retaliatory retaliation." At that time, when it is a well-deserved protagonist, it is the price of 16 U.S. dollars, financing 272 million dollars, emboldened. When the stock price was even close to 35 dollars.

When moving things easy, in the August 15 of this year's Beijing-East Suning War, when the stage is not in the center, Liu even ironic when the "Blind yell", Guoqing is "shoeshine." When the share price fell below 5 dollars again that day. But guoqing may not have more options-the war may not win, but it will lose without fighting.

However, the book price war at the end of 2010, also opened the curtain when the loss, this is certainly not when the whole reason for loneliness. In just 2 years, from the soar of the market, to now with the highest share price fell to 86% of the market value, in a few big platform electric trader life and death fighting today, when there is still investment value Mody?

Lost opportunity

How does the electric dealer profit? The benchmarking enterprise to answer this question is Amazon.

Amazon's share price fell by at least 80% per cent in 2000, when the dotcom bubble was disillusioned, with at least 210 Internet companies in the United States failing. "In the future, Moore's law does not apply to real estate," Bezos, Amazon CEO Bezos, at the time of the annual earnings release, with a "letter to shareholders" tradition, in a 2000 letter. It also makes it hard for companies to develop into a mid-sized electric-business company.

The former Dangdang COO Huang Jo said that the retail profit lies in "living within our means", when the secret of profit is to compress the market cost, reduce the promotion cost. 2009, 2010 when the market cost is greatly compressed, corresponding to it, this is also when the profit of the two years.

At the end of 2008 Guoqing accepted the "published business weekly" interview revealed that when the fourth quarter has been realized, the annual sales are expected to be 1.6 billion, "this year's profit is nail, next year and future earnings will not have any questions, Dangdang has embarked on a smooth road."

But it is also the beginning of 2009, it was Jingdong mall beyond-this year when the earnings show its revenue of 1.458 billion yuan, and Jingdong Mall announced the official turnover of 4.8 billion yuan.

Amazon Bezos's motto is "Get-big and fast", which runs counter to the habit of running guoqing. In 2009-2010, when the cost of the market was compressed, it also missed the opportunity of get the big and fast.

2009-2010 is the domestic economic winter, however, it is a guest, Jing Dong These two of the opportunity to rise. According to when the data show that 2009 when the market cost of 38.473 million yuan, less than 2008 40.766 million, 2010 when the number is 76.669 million yuan. And every guest 2009, 2010 market cost is 11.665 million, 21.075 million U.S. dollars, about RMB 74 million, 140 million. In contrast, the old rivals, aged (Weibo), contrasted with the view that guoqing treated opportunities differently.

2009, 20,102 years, when the income growth is 90.3%, 56.5%, and where the income growth is 152.5%, 303.7%, at the same time, according to the Beijing-East official data show that the Beijing-East two-year growth rate of 203%, 155%.

Behind the market conservative strategy is the "relative inadequacy" of the funds-according to when official data shows that 1999 to 2009, when the total financing of the rounds, the sum of not more than 45 million U.S. dollars, of which the last financing is 2006 amount of 27 million U.S. dollars. When trying to finance the IPO last 2008, the plan ended up stranded. According to the financial information, when the end of 2008 when the total assets of 463 million yuan, where the cash and the equivalent of 66.509 million, inventory 300 million, and should pay the payment of 372 million yuan, shareholder equity of 291 million.

And when the corresponding financing, Jingdong Mall in 2007 for the first time won the million-dollar venture, and in January 2009 to raise 21 million U.S. dollars, and the beginning of 2010 again financing 150 million of dollars.

In the "winter" of the financial crisis, when there is not enough capital to "greed".

2009, 20,102 years, when the growth of "relatively slow" the reason is also concentrated on the slow pace of income structure adjustment, department store category expansion is weak.

As early as 2004, when it began to test the water department stores category, product line from household items started, a year later to further expand into consumer electronics and cosmetics market. However, the expansion eventually stopped, books only 4 to 5 times a year inventory turnover, and consumer electronics, clothing and other categories require a faster turnaround period, not only that, when also faced with warehousing, security and other details of the increase.

2008, "department store", "comprehensive e-commerce" to become the industry consensus, when also in 2009 to try the department store again, compared with before, this time when the increase in strength, from the physical beauty, China Resources, Wal-Mart and other traditional retail "digging people." However, as the income structure changes, its category expansion is relatively slow. According to when financial information shows that in 2007-2010, when the department store income is 0.37, 0.67, 1.53, 392 million yuan, respectively accounted for the total income 8.26%, 8.72%, 10.49%, 17.18%, and when the old opponents, Amazon in 2010 accounted for half of its revenues.

In early 2010, Taobao Mall founder Huang Jo Airborne when as COO, responsible for promoting Dangdang's "department store" process. In Huang Jo's view, "when it is not appropriate to be a large company, positioning should be efficient small companies", "not all electric companies to make Wal-Mart, Watson is a good choice."

However, focus on the "small and beautiful" strategy in 2011 was denied, the background of IPO financing, guoqing on the one hand began to expand the category, on the other hand, and Jingdong Mall launched a price war. The two strategies eventually make the time to lose again.

In 2012, Guoqing in an interview with his own voice, he said, as early as 5 years ago, someone had predicted, if not to do 3C, when it will fall out of the top three position. Guoqing said he and the management team would accept the status quo.

"I don't have the money, I don't get 1 billion dollars, I can't do it." I don't want to bet on it either. "Guoqing said.