The scale, localization and personalization of e-commerce

In my previous blog, I have expounded the inherent advantages and disadvantages of e-commerce from different angles (see "E-commerce", "the core of E-commerce scale", "E-commerce http://www.aliyun.com/zixun/aggregation/14310.html" > Supply chain Management). The system is summed up as follows:

Advantage：

1 not limited by space, can one station cover the whole country and even the whole world;

2 No time limit, can be 7x24 service;

3 Unlimited goods and services can theoretically be sold without shelf restriction.

4 easy to search, easy to compare, easy to relate, rich content display.

5 Easy collection of data and analysis of customer behavior, precision marketing and personalized service.

Disadvantage：

1 The virtual display of goods, can not see touch, customers can not directly before the purchase experience;

2) need to add delivery time, not immediately available;

3 additional packaging and distribution costs;

4 lost the pleasure of shopping with family or friends, bargaining.

I am here to talk about the scale of e-commerce, localization, and personalized some of the thinking and views.

First of all, the scale of the scale, which covers the region and the expansion of goods/services richness. I think scale is an excellent electric business enterprise to survive and development of a road. is related to the intrinsic advantages of e-commerce and the cost structure of E-commerce. The main reasons are as follows:

1 e-commerce is not subject to space, time, and shelf-limited advantages, but only after the scale to give full play to these advantages;

2 If a power supplier is not large-scale, then the large-scale enterprises will enter and compete with them, and will be marginalized, annexed, or eliminated.

3 The early foundation of E-commerce investment is very large, mainly in the system development, logistics facilities and equipment leasing and purchase, customer access and brand promotion, not reach the critical scale before it is difficult to profit.

4 Retail Whether it is online or offline are in order to win, there is the amount of bargaining weights, only the price advantage.

Second, localization. Retail is a very strong localization of the industry, different regions of the customer's taste, fashion views vary, the natural environment and climate, different brands of permeability and cognitive diversity, and so on, have led to different products in various parts of the acceptance degree is not the same. I think the localization of E-commerce is very important, localized content of the site will be faster by local customers recognized and respected, marketing conversion rate will increase.

But the localization has the very big challenge to the electric dealer, mainly has the following points:

1 The site how to localize the display of customers around the interest of goods;

2 How to localize the procurement and marketing;

3 How the goods are configured in each warehouse;

4 The structure of the Organization is to maintain the national efficiency and localization of the function.

Finally, personalized. The personalization here is reflected in two aspects: a The customer can assemble or even request to produce the products according to their special needs (example: souvenirs with their own name, according to the design of their own clothing, etc. b) according to the customer's past purchase, search, collection, and purchase of goods related to the degree of data mining, To provide customers with personalized products and services recommended. Personalization is the trend of E-commerce, the main reasons are:

1 personalized demand is the essence of human nature, and it becomes more and more obvious with the development of economy and the improvement of public purchasing power.

2 The technology and tools used in electronic commerce are very suitable for the customer on-demand order (made to orders), in particular, mass customization (mass customization). can use zero inventory, modular, information, automation concept to improve efficiency, reduce production costs;

3 e-commerce can realize real-time and massive data acquisition and tracking, and can use a variety of business intelligence tools and optimization modeling to transform these data into valuable information and decision-making basis. For example, according to customer behavior model for customers to do accurate product recommendations, regularly remind customers to buy periodic consumption of goods, and so on.

Finally summed up: for electronic commerce, the scale is the key, directly related to the survival and development of the electric business, regionalization is very important to help the electrical business faster expansion and acceptance by customers, personalization is a trend, is the future distinction between good and General Electric business watershed.