The pain of the growth of the "Good Boy" website

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At the end of 2006, Xu Letian resigned from the position of multinational executives and started his own business. Xu Letian's son was just born soon, which made him interested in mother and child products. After a variety of research, Xu Letian and their own senior management team will be targeted at the mother and child products this market. In their view, with the advent of the baby boom, it will be a fertile virgin land. Early 2007, good Baby website online.

The years of entrepreneurship are hard and sweet. A few years down, good baby really very "well-behaved", the number of customers to grow to a staggering 3 million, the turnover also from zero, to 2010 broke through the 500 million Yuan mark, which was almost a unattainable when starting a business. With the development of domestic e-commerce in full swing, as well as good baby technology platform and the continuous improvement of the operating system, from the site sales revenue and user growth has been high speed double growth over the years.

But in recent times, good baby in the maternal and infant market performance has a slight slowdown in the momentum; On the other hand, the venture capital is also constantly urging the Xu Letian to use the original mother and child customer base, stimulate their purchase potential, will be a good baby hit a comprehensive supermarket, to do this market no. 1. So, how to make a good baby again high, in 2010 years in the board of the agenda.

Xu Letian originally decided to do a good baby, fancy is the electronic commerce space and time infinite concept. Although a good baby's growth plan seems to have the willingness of venture capital, but also coincides with Xu Letian own ambition. March 2010, the baby officially launched the growth plan, began to the mother and child outside the product line extension. But half a year down, it seems that the days have not been willing.

On the investment of human and material resources, the company under a lot of capital, but from the growth trend, performance growth is far less than the mother and child supplies this piece of growth. Within the company, there are also many people who are questioning the company's growth plans. For example, the company's personal care channel director Ye Hui has proposed that the company should give up the expansion, return to the main line of maternal and child products, focus on strong core products.

And since the company's growth plan, user complaints have increased markedly, and last month the volume of complaints has hit new highs. Many users complained that the beer bottle was broken and asked for a replacement. In addition, the site's return rate has soared in the past few months. This is not the first time that Xu Letian has noticed these problems. It seems that the new types of products and maternal and infant products in the distribution of the difference is really not small.

But as the site's helm, Xu Letian can't throw cold water on his growth plans. However, not to throw cold water does not mean that the slow growth of the new business to drag down the company's current cash cow. Sometimes, Xu Letian's mind will also flash a glimmer of thought: good baby should shrink their business, back to their original painstaking mother and child products, the customer experience to achieve the ultimate? After all, from their mother and child products in the market share, there is a lot of growth space. But the baby, driven by venture capital, seems to have gone back to the curve of growth.

In the Xu Letian of the dinner, the investment adviser's words let the word of the truth: "Vertical type of Web site growth space is limited after all." You see Jingdong, red children, they are in the transition to a comprehensive. You know, if you can't do the first few, you won't get a high premium in the capital market. Capital markets happy, in addition to turnover, there is room for imagination. A company with a concept can only make people crazy. In my opinion, your growth plan should be more aggressive (aggressive). "During dinner, the investment advisers pledged to invest more.

However, it is not easy to get the Xu Letian of the investment promise. Without knowing why, he had a slight uneasiness in his mind. The early spring night wind, but also with the coolness of silk. Looking up at the night sky, a few lonely stars silently scattered.

Good baby in the end should choose to expand or return? Take a look at a few management experts ' comments. #p # subtitle #e#

"The trend of E-commerce is to do a comprehensive web site, because once I built this platform, cultivate a customer base, there is the opportunity to provide them with a full range of services, thus fully reflect the value of the site." ”

Gege, chairman of the store

Looking back on the entrepreneurial process of Shop No. 1th, I am gratified that we have chosen the right path from the very beginning, so we do not have to face the plight of the good Baby website in the case.

At the beginning of the venture, our entrepreneurial team research, after 4 months of time, the final decision "Cheuil (vertical web site) difficult (integrated site)." We certainly know that no matter from the investment funds, the required expertise and resources in all aspects, vertical-type Web site entry threshold is lower, the beginning is also easier. The reason why we are easy to take, choose the comprehensive web site is full of thorns, because in our opinion, the Internet has two key, one is speed, one is scale. E-commerce website Finally, the larger the scale, the higher the profit, the lower the cost.

Where is the charm of e-commerce? It is not limited by time, space and shelves, it can be extended indefinitely. Follow this business thinking, Shop No. 1th slogan (propaganda slogan) is also changing every year, from the original "than the supermarket also cheap online supermarket" to "save money, worry, labor", and then to the current "No. 1th Shop, only for a better life", its core thinking only one: business scope is not limited, The quality of the goods operated is unrestricted and can be extended indefinitely. For example, in addition to selling things in supermarkets, we are beginning to introduce high-end products such as Lancome in cosmetics, iphones in digital products, ipads and high-end jewellery accessories.

Look back to this case, if a good baby Xu Letian not too big intentions, is to do the mother and child market, then in this industry, to do industry No.1, also nothing can not. However, from the case, Lotte actually has its own ambitions, coupled with the promotion of venture capital, the homeopathy embarked on the road to expansion.

In my opinion, the trend of e-commerce is to do comprehensive web site. As soon as I built this platform, the development of the customer base, there is a chance to provide them with a full range of services, so that fully reflect the value of the site. Since the Xu Letian of a good girl has this ambition, it should unswervingly implement its outreach strategy. How to expand, I can give him a few strokes. However, Xu Lotte must realize the difficulty of expansion.

First, enable the relevant but unrestricted domain name to push different products. "Good Baby" site, the name of the first limit on its diversified development, therefore, to expand the product category, it is best to enable a new domain name, using the original website platform, you can do a lot of links and guidance, to promote. At the same time, you can try to transform the original customer base, such as delivery to the customer to send the new site ads. Of course, the introduction of a new website, the market costs will certainly be huge climb, good baby management should be prepared.

Second, the selection of professional team. Judging from the case, a good baby in the new field to expand the use of veterans, I think this is a defeat. In fact, whether from professional knowledge, customer consumption behavior understanding, marketing tools, or supplier resources, the original talent team is not enough for the new job. From our experience in shop 1th, we have new professional teams for every new channel we open. Only in this way can the best be done.

Third, the good baby's senior management must be prepared for early investment. Expand new areas, the early days do not have the ability to negotiate, the company must give the greatest resources to support, not only to allow its "phased loss", but also to invest in considerable marketing and system development resources.

Four, the new marketing plan. Good baby such a mother and child website, the original vertical, precision marketing may no longer apply to the marketing of new products. For example, the original marketing, it is likely to work with the hospital and maternal and child web site to directly find the prospective customer base. Now to do daily products, the face of the public, it is necessary to "advertise" type of marketing, to do Word-of-mouth marketing, to do more online promotion and so on.

V. Supply chain operations to make big changes. Good Baby The original supplier is very limited, but now may have to come in hundreds of thousands, this time will be implemented in large-scale management. In fact, once you decide to do a comprehensive web site, large-scale management becomes the most important factor. In the case of the baby, a few years ago, the development of the speed is good, why later fell into a deadlock, because it has not been able to achieve large-scale success. Store 1th in 2010 has 70,000 SKUs (inventory units), this year to increase the 20多万个 SKU, the full use of the Web site and the expansion of the supply chain, truly achieve the scale, implementation of our early strategy. The decisive battlefield of E-commerce website is large-scale operation. Who can make the scale management to do in place, who can laugh proud of the lake. #p # subtitle #e#

"In fact, to high-quality professional services and good brand image of the vertical type of e-commerce enterprises, will not be afraid of platform classes, integrated categories of E-commerce enterprises competition." ”

Yang Zhenyu

3131 chairman of E-Commerce Innovation Alliance, Chairman of 99-D Kang, co-chairman of King-area international tourism group.

This is a good article, said the current many E-commerce enterprises, especially the vertical category of E-commerce business family of two major puzzles. Puzzled one, is focused on the core business or platform, integrated expansion? Puzzled two, the company strategy should not dance with the likes of the capital market?

This kind of enterprise has this kind of confusion, actually originates from one era big background. In recent years, especially since 2009, China's E-commerce development is very rapid. Taobao continues to maintain an absolute leading position, sitting on the throne of the largest E-commerce platform, a group of business E-commerce Enterprises, such as Beijing-east, where guests, Qi Jia, when, and so on, gradually grow up. Moreover, under the strong support of capital, many of them launched the Platform, integrated development strategy, starting from their own areas of expertise, began to erode other areas of market share.

This makes those who still adhere to the vertical area of e-commerce enterprises uneasy. This unease comes mainly from two aspects: first, if the darlings of these capital markets invade my field, can I still keep the edge? Secondly, do I also have the opportunity to platform, integrated development, to obtain the favor of capital, so in the field of E-commerce to maintain the continuing advantages? These two aspects of unease, Leads to two kinds of puzzles that start with.

On the puzzle one, I think, whether it is focused, or platform, integrated expansion, there is the possibility of success, but also have the risk of failure. Enterprises in the end how to choose, but also to the situation, tailored.

Take the integrated road or vertical road, this is an enterprise strategic choice. First of all, to see how large enterprises engaged in the field of market, enterprise development space. If the firm's market is larger than 100 billion yuan, and the market share of the enterprise is only 1%, then the company should focus on its core business. If the total size of the market is small, or the enterprise market share is already very large, such as more than 10%, it is necessary to consider a number of areas of development. The case of a good baby website engaged in the mother and child products sales. These markets are large enough to have 100 billion yuan. While the baby is growing fast, but the annual sales are at hundreds of millions of yuan level. This shows that a good baby in their own proprietary areas in fact there is a lot of room for growth. In this regard, I suggest that it focus on the development of maternal and infant products.

How do you focus? If a good baby stays in the stage of relying on marketing for a leading edge, be especially careful. In fact, it should focus its strategic focus on how to form its core competencies. Can imagine, in the fierce competition in the future, platform-type and comprehensive web site traffic advantages, capital advantages, brand advantages and some service advantages (such as distribution) will greatly erode the vertical category of Web site market share, if the vertical category of sites without their own core competitiveness, their original leading position will be difficult to maintain.

Concentration means not only selling goods, but also providing professional services. In other words, vertical e-commerce must be based on professional services on the basis of merchandise sales, but also through professional services to establish a brand image in the consumer. In fact, to high-quality professional services and good brand image of the vertical type of e-commerce enterprises, will not fear platform classes, integrated categories of e-commerce enterprises competition.

Even if the future of a good baby to many areas of development stage, first of all should be in the original brand-related areas to expand. For example, it should consider the past brand Image: Mother and child supplies in the past mainly sales, then can now extend to maternal and child services, such as prenatal training, fetal education, professional infant nanny, child training, maternal body, maternal psychological counseling and so on. Become a mother and child products and services experts, perhaps a good baby better choice. After the first stage of expansion reaches the desired target, a second phase of expansion is initiated, such as moving towards family products and services.

About two, capital market preferences, as entrepreneurs of course, we should pay attention to, on the one hand, investors see more, the idea is more open, their views may indicate the direction of the future; On the other hand, if the investors are approved, the entrepreneur will get more support, easier to have the first advantage.

But investors are certainly not as knowledgeable about business as entrepreneurs are, and investors have his limitations. For example, investors tend to be ambitious, and for example, investors like to chase the trend, but sometimes hot change quickly, when the entrepreneur in accordance with the preferences of the capital market to choose the way forward, difficult to move forward, the investment hotspot has changed, then the enterprise is often very passive, and even the risk of failure

Therefore, the entrepreneur listens to the investor earnestly at the same time, must according to own enterprise's characteristic, as well as to the profession profound understanding, makes the independent judgment.