The "second Spring" seems to be coming for the vertical electric dealer.

　According to foreign media reports, Poly-Mei excellent products will be listed in the NYSE tomorrow, the proposed financing of nearly 400 million U.S. dollars, and the United States and Australia, I love my home network, etc. also frequently outgoing financing information. In the spring of 2014, the vertical electric quotient, which has long been lost, broken funds, and merged with negative news, seems to usher in the second spring.

Points

1 The situation of the vertical electric trader has not changed fundamentally, so the so-called "second spring" is only a pseudo proposition.

2 In addition to the limitations of its own business model, the difficulty of channel integration is also an important reason for the problem of vertical electric operators.

3 in Jingdong and Ali's system, which categories do not do well, where there is the opportunity to vertical electricity.

Layoffs, broken capital chains, mergers and acquisitions ... Since 2012, all kinds of negative news has been hovering over the Amoy, Fank and other vertical electric dealers. However, in the spring of 2014, the vertical electric operators appear to have become a trend: first only the market value of the goods will be more than tens of billions of dollars, after the United States to submit the SEC documents to the U.S. listing. According to the information, only March 2014, there is the founder of Wu, "the United States and Australia habitat", the Merchant Jewelry Mall "Oriental beauty Treasure", the Fresh electricity quotient "15 cent green Life", the home improvement, the building materials and the household domain O2O electricity quotient "I love my home net" and so on obtains at least tens of millions of dollars of scale the financing respectively.

This series of capital data seems to be telling a story, and the "second spring" of the website of the vertical electric dealer is coming.

"The second Spring" is a false proposition.

"This year will be a good opportunity for the company to continue to be bigger and stronger, and moving and O2O will be the focus." "Chen Au CEO of the United States before the official filing of the SEC document, said. From the earnings data, Poly-Mei excellent products in 2013 before the tax turnover of 6 billion yuan, of which mobile-side sales accounted for up to 49%, with 88.9% of the repurchase rate, and to achieve seven consecutive quarterly profit.

The IPO by many people is regarded as the beginning of "The second spring" of the vertical electric quotient.

"It's a good story of capital. "For the listing of Poly-Mei excellent products, internet expert Xie the Phoenix technology.

In Xie's view, Poly-Mei excellent products of 400 million of the amount of financing is only a capital operation, but the vertical electric network of the "second Spring" is a false proposition.

Looking back over the years with us through the vertical electric business, the number of names listed down at least dozens of, PPG, Lok Amoy nets, red children, the first time, cotton, product poly nets, Jiapin network, such as the past. In the closed list, the frequency of vertical websites is still very high, especially in raw and clothing categories.

In spite of the 15-point Green Life announced by Lenovo Holdings of Lenovo Star billion a round of investment. But because of the squeeze in inventory and the high cost of distribution services, most of the small and medium-sized raw and fresh type of vertical electric business website is still unsustainable. In particular, large platform companies have set foot in fresh category, resulting in fresh type of vertical web site survival situation worse.

And, like Dangdang, Macaulay and other already listed vertical electric dealers, the day is not easy. Dangdang, as the leader in the book's vertical field, seems unsuccessful in the process of trying to transform into a garment class. In the fourth quarter of last year, when, despite losing the shadow of the loss to achieve the first profit, but its high cost still limits the amount of profit.

Why is it so difficult?

What is the reason for the vertical electric operator to miss the "second Spring"?

The restriction of business model becomes the constraint of the development of vertical electric business. Wine American Network CEO Luide, "A lot of vertical electric dealers encounter difficulties, the root cause lies in the depth of their area is not enough, can not build the industrial chain advantage, the industry goods and services too standardized, it is difficult to bring additional value to users, plainly speaking directly is the role of channel operators." The vertical electric Trader's own business model restriction involves less industry, which leads to the lower repeat purchase rate, the higher cost and lower profit.

"It is very difficult to do a wide, after listing by capital around, there is no room." "Xie said.

Second, a part of the vertical electric business barriers are not high, leading to its easy to be replaced by the Giants. When the development stage of e-commerce is not mature, the demand of consumer net purchase can be satisfied in General Electric Shangping stage. The vertical electric quotient and the electric business platform compare, has lost the advantage in the convenience, therefore cannot obtain the majority entrepreneur and the investor's favor.

The most typical example of this should be the red child. As a SKU to milk powder for the vertical electric business, red children due to early sales large enough, so the milk powder brand has a strong bargaining power. But since powdered milk is a very standardised product, its cost, price, and gross profit are very transparent in the industry. This makes it easy for platform-like dealers to get involved, such as the Beijing-east, the mother-child channel.

Beijing East since 2011, after the mother-child channel, sales have exceeded the 10 billion yuan mark, and red children from the peak of 2011 year sales fell to 1 billion yuan, and finally embarked on the road by suning mergers and acquisitions.

In addition, the difficulty of channel integration is also an important reason for the problem of vertical power. For example, Hotel entertainment and other services are localized, local habits and cultural differences are also larger, glasses shop formed a national chain is also very few, subject to regional restrictions, the size of enterprises to integrate up to a considerable amount of time.

Where to live: filling market vacancies

Jingdong Mall chairman Liu once bluntly: "Vertical retail platform is sure to die, of course, can also sell." ”

What is the future of a vertical electric dealer? Platform, brand, or O2O? The reporter interviewed a number of Internet experts, they give the answer invariably: do subdivide, fill the market vacancy.

"Only these big platforms do not have a good field, there is the chance of vertical electrical business." In Jingdong and Ali's system, which category does not do well, where there is the opportunity of vertical electricity. Liu Xingliang, an internet expert, said of Phoenix technology.

However, in the context of the demographic inflection point, the views of the industry and experts differ.

At the new strategy conference last week, Orchid Pavilion set potential CEO Guo to Phoenix Technology said, with the arrival of the mainland population inflection point, vertical electric business website or will usher in new opportunities for development, because a large number of traditional manufacturers face the pressure of transformation, these businesses will be very positive to expand new markets and new channels, The vertical electric quotient is one of the new channels.

In addition, the mobile end has become a new opportunity for vertical electric operators. Data show that last year, China Mobile E-commerce market volume reached 96.5 billion yuan, an increase of 135%; this year, as the plate increases, the growth rate is still much higher than the whole business.

Liu in the "2013 Electricity quotient Summary" said: "In the existing pattern, to create a new electronic business platform of the time window, basically closed." There is still a chance for mobile power providers. ”

Conclusion

When the concept of "the second spring" and "the vertical electric quotient is dead" have not yet come to the conclusion, we still need to wait and see the future of the vertical electric trader after the shuffle.

Extended reading: The United States and makeup electricity to explore the United States and new products can continue the "Demon stock" myth? "Athletes are referees" the eve of the listing of the United States is questioned Poly-US excellent products will be officially listed on the NYSE on May 16 on the listing observation: 2014 three major areas of vertical electric operators to rely on what live vertical electric dealers and O2O the emergence of vertical electric business dilemma, the transition road in where