The lack of retail capability of Chinese manufacturing enterprises is the space for the service industry of electric power companies

Chinese manufacturing companies do not have the retail capacity, which provides a space for the electric business service industry.

What is on behalf of operations

In addition to helping customers to maintain the daily operation of the store, the operators are also actively expanding their brand promotion, daily marketing, supply chain and service system. Home Appliance brand manufacturers are trying to break the traditional chain of electrical appliances, the channel monopoly, emerging E-commerce is a breakthrough channel. The Electric appliance brand's business not only grows at a rate of 200% per year, but also retains a reasonable profit.

To Skyworth as an example, Skyworth E-commerce division director Kiyita said, compared to skyworth this manufacturing enterprise, E-commerce site in the logistics distribution, supply chain management, consumer stickiness has a natural advantage. So Skyworth chose to bypass the short plates because they could not eat the whole cake.

Skyworth's operation is the new seven days in the doing, 2012 we helped them in the day cat to do 700 million of the sales. Now Skyworth's network total sales accounted for 10% of total channel sales.

Manufacturers in the preservation of reasonable profits to the generation of operating enterprises in the online sales. The data we see is that even after deducting the cost of operating and platform services, the products sold are still 10% to 20% lower than the traditional appliance chain. The electronic Commerce Generation operation mode of home appliance changes the predicament that the production enterprise has to participate in the sale link, but concentrates on the enterprise's product design, the brand plan and so on own project.

Chinese manufacturing companies do not have retail capacity

From the perspective of social division of Labor, China's manufacturing enterprises do not have the retail capacity, which provides a living space for the electric business service industry.

A few days ago in Hangzhou to attend the annual meeting of the cat, Xiaoyao son share a data: All by the service provider to operate the official flagship store, conversion rate is the brand's own operation twice times. This proves that the service provider to undertake is specialized operation. Many companies own flagship stores, set up a department, or set up a company that looks beautiful. But it is after all a small branch of a large system, it is difficult to operate flexibly and smoothly.

Chinese manufacturing companies do not have retail capacity, most of the focus is on product development and channel management. Manufacturing companies do business-to-business business, whether in the face of Gome, or in the face of the bottom of the dealers, business-to-business business accounted for more than 90%. The real retail business still needs to be handed over to professional people.

Manufacturing enterprises in the face of e-commerce emerging channels are divided into two types, such as Jingdong, a retail enterprise, is a pure enterprise, for manufacturing enterprises to deal better, because he and his own business does not conflict. It supplies the goods to Beijing-East, from the Jingdong management of goods, sales, distribution.

But the cat is a B2B2C business, manufacturers do not have this ability. Brand to build their own flagship store, due to the supply chain response capacity and delivery services to the end of the construction is not enough, many enterprises do retail business failure. Now only to do the retail business success of the home appliance enterprises only Haier.

Brand to do E-commerce, retail needs to build three capacity: first, the operating capacity of the front-end, the second is the supply chain integration capacity, the third is the distribution service capabilities.

Take the front-end operation for example, many enterprises do not have this ability. Many traditional business executives are such thinking: into the day cat-point electrical city-find LCD tv-Find the brand-and then find 32-inch LCD. This is the factory thinking, traditional thinking, but in fact 99% of the consumer browsing path is in the search box to do the search.

I put the cat analogy into a big shoppingmall, Jing Dong Marketing is in the Shoppingmall, is in the street to open their own shop to do marketing, their own to attract passenger flow. In Shoppingmall, marketing means and methods in fact and the whole network marketing is the same, there are SEM, SEO, it in the search box in the calculation of dimensions and in the calculation of Baidu dimension is not the same.

Around the cat this ecological circle is very fine, there is a special through train company, you do not do a through train, he help you do, you will not spend money, he helped you spend. There are also three specialized photography companies, and they live very well. So I thought, didn't a company even do a good job? Take a photo studio, ask a photographer, buy a professional camera, and find out that this is not the case. You do not have this ability, you have the lowest benefit, finally can not go down. Why? Your main business is too big, you are not professional in that branch.

The financial system of traditional manufacturing enterprises is also difficult to butt. Like Skyworth Enterprises, a day to open thousands of tickets out, opened a gome, distributors, 3 million, 5 million goods went out. Let him open hundreds of thousands of invoices a day to the customer, one by one, the retail system how docking? It is a business-to-business system and it is now up to the two systems to build a different system.

With above three kinds of ability of home appliance enterprise only Haier. Haier's infrastructure has been built for nearly 20 years, with a much higher degree of emphasis than other companies. Through the ability of product diversification, Haier has firmly mastered the China from the four-tier market to the first market for all customers of the right of speech. Haier for the control of the terminal, the distribution system to form a service network, an end-to-end distribution capacity of the network. None of China's home appliance companies can match. So any retail company has no say in the face of Haier.

So this year, after the "Double 11", only Haier's official flagship store is in the state of their own business to score higher. The rest of the overall decline, the fall is not the general miserable.

From our understanding of generation operations over the past few years, it is not argued that Chinese manufacturing companies are overly involved in the retail end. Retail is a very professional issue, in the social division of labor professional above, it is recommended that China's manufacturing enterprises to respect the specialization of the Division of labor. Imagine a situation in China where all of China's manufacturing companies end up in the retail sector and become retail experts, something that is unlikely.

Many Chinese companies want to do everything themselves. E-commerce is a classic case. At that time, the e-commerce to the domestic very well-known a generation of operators to operate, doing very well. Then he built his own team and ran his own business. As a result, the whole team dissolved and ended in failure. This year began to look everywhere for operators.

What the cat b2b2c do is light assets. In fact, the middle of the service link is a very bitter link, manufacturers do not have such a capacity, there is a large blank market. In this blank market, there are hundreds of thousands of generations of operators serving the industry.

Tian Cat Electrical City general manager of the communication with us said that China's electronics, business are done, not one does not lose money. It is possible to earn money by doing only electronic or business. That is, the cat money, service providers to make money, enterprises also earn money. Because everyone in everyone's professional field to do their own professional things.

Jing Dong and cat traffic black hole

From the perspective of China's electricity quotient, the electric business service industry will undoubtedly become an important mode.

Now the pattern of China's electricity business has been formed, one to the Beijing-East for the representative, and the second is the cat B2B2C as the representative. Two black holes form two huge flow attractions, and you can't run out. Traditional manufacturers have two ways to do electricity: first, with the Beijing-East cooperation, one is with the cat cooperation.

In addition to Jingdong and Taobao, perhaps Su Ning has the ability to O2O under line, may become the third mode--O2O representative.

In addition to these three companies, other business enterprises may be very difficult. Including when, Amazon China, I think is very difficult.

I got a data, the electric business company wants to attract a new customer, the flow cost is 400 yuan, and is the day is taller than day, is not the day is lower than the day, the reason is where? It is because the two black holes of jingdong and Tian Cats have great attraction ability. You want to drill into a black hole to drag the user out, too difficult. So I'm not bullish on other Chinese.

I think that the consumer is a pseudo proposition, but is another form of retail, after the bubble after two to three survive the good, and other will encounter the problem of traffic.

Is there no future for the Business-to-consumer? We can look at the B2B2C business represented by the cat and the business of the company, which can survive in these two black holes.

Taobao can survive in the ecology of two forms, one is the service industry, such as services in the field of the operation of the company, the Trust Company, may grow up a number of service providers brand, retail brands. The second is around Taobao grew up Amoy brand, from Amoy brand to become the entire Internet brand, and finally grow into a whole Chinese retail brand.

Outside the Jingdong black hole, I think the big business is basically out of the way, the small and the United States will exist, in the professional field, Jingdong is unwilling to do, and even have no energy to do. These electric companies must not go to absorb the flow of jingdong, he must be small, but his crowd must be very accurate. These small and beautiful companies must have a very important idea, that is, do not want to big, and Jingdong this is not a threat to you, because you are more professional.

In the two types of business, the new seven days around the first, as a service provider, we position ourselves as a service industry, so we will charge some service fees. Around the second, still doing the same.

Electricity dealers should return to retail nature

It took only a few years for the electric business industry to underestimate itself. A few years ago to participate in the Electricity Business Forum, mentioned E-commerce, everyone is talking, talk about is a round, B round, C round financing, talk about the growth rate of 300% or 500%. Now, the forum is full of the voice of mourning, not layoffs is to pursue profits.

In fact, it is only a retail business, and there will be no electricity quotient. E-commerce is a pseudo proposition, because it is a retail industry, but the expression is not the same, the end is achieved through the Internet. From the whole chain, the only change is the way consumers shop. Electricity dealers will return to the retail nature.

Most of the new seven-day shareholders are from the retail and electrical industries, and they are more concerned with sustainable and cumulative things. Jing Dong got the financial statements before the VCs. We saw that the business model had a certain shape before they took the wind. Jing Dong 2006 years before today's capital net interest rate is 0.3%, the enterprise itself has the ability to live, itself can earn money, do not take the wind can live.

Liu has accumulated retail experience in Zhongguancun, experience in supply chain integration capability, and experience as a campus agent, has been able to achieve the quality of the retail industry in essence.

The new seven days in the first year did not see the essence of business thinking that the loss of money should be, do not lose money is a fool, the results found that you have missed the first step. People casually ask, you and jingdong what is different, you can not answer.

After that change, we began to pay attention to the construction of their own business capabilities, team building.

A few years ago, we were reluctant to say that it was a very unworthy thing to say, because the business was too bright. What I want to convey this year is that after China's electricity dealers return to their essence, they should make the electronic and business affairs clear. Some people can do both electronics and commerce, and this kind of company will not exceed three in China. There are also a large number of electronic or business, each in the field of professional development of a better.

The electric business service industry needs two kinds of ability

Above mentioned, do retail need to build three ability: front-end operation capacity, supply chain integration ability, distribution service capability.

The operation is not a real retail industry, we call it the service industry. Because the retail industry you have to do, not only to do their own operations, but also better front-end customer attraction, the actual cat is helping us to make customers attract this thing.

In the increasing expansion of the electric business service industry, on behalf of operators only have the ability to walk a relatively forward.

The first is the ability to integrate the supply chain.

The second is the background of the underlying architecture. The underlying architecture includes ERP system management and CRM customer relationship management.

Double 11 per year, if there is no underlying system, not a very good business process support, you will die very miserably, orders come is disaster. We often hear that the "double 11" closed a group of companies. 2013 New seven days 70% of energy and resources to put into the background system construction, including customer relationship management system construction and ERP construction, to go further, it is necessary to spell backstage.

Now a lot of companies to do on behalf of the company's ability is in front of the 1th, the front-end operational capabilities, including marketing, planning, traffic acquisition capacity, put too much energy on the fast, because a small marketing case may bring a good order. When many in the marketing ability to walk in front of the generation of operating companies, now are not very good, was more than others, because the bottom is not done.

At present, our agent model or heavy asset model, "invoicing" management. 2013 will have a new model, some with end-to-end distribution capacity, lack of front-end operating capacity of manufacturers, distribution by the manufacturers to solve, we are responsible for front-end operations, to earn a service charge. This is a model of light assets.