The vertical electric quotient is dangerous but it is not no cure

The notion that a vertical electric trader is dead is representative, but it only sees appearances. The user buys by the electronic commerce way, buys is not the platform, but is the specialized product and the service. What is the significance of a platform to live if a vertical electric trader dies? However, the vertical electric operators are faced with great challenges to survive and need to be seriously faced.

Since last year, the failures, acquisitions and transformation of the electricity dealers are not uncommon. is in the electric business industry shuffle stage, the vertical electric business is faced with four problems:

First, the vertical electric trader faces the competition of the specialized channel business under the line

At present, the competitiveness of vertical electric operators is mainly expressed as channel competitiveness, the brand and supply chain as the core competitiveness of the electricity quotient is very small. More than one industry has made a judgment, the line channel and online channel sales scale comparison, online channels in 5 years, 10 years or even 20 years can not become the mainstream of retail power.

Indeed, the purchase of online channels is small, which means that the purchase price is high, or even the first time to get the most tight merchandise. But the scariest thing is not just that. Offline channels have developed Uniqlo, Zara, such as professional chain enterprises, they can produce their own products, supply chain, brand and store management is everything strong. NVC lighting chain system has a lot of franchisees, with the franchisee's capital turnover. and the vertical electric dealer needs the channel, the brand, the supply chain and the platform carries on the continuous input, from the fund to make the lapel see elbow.

So there is an interesting phenomenon, some of the main sales of vertical dealers from the offline group buying, mailing and catalog sales, television shopping and other sideline, and real site hits and conversion rates are relatively low. More heinous is that offline brands do not dare to vertical electric business breathing machine, has landed on the cat and Jingdong Mall, the development of vertical electric business sniper. Many VCs are afraid to invest in Jianshibumiao, not to mention a group of vertical dealers who love to burn money and manage poorly.

The recessive cost of vertical electric quotient is higher

Now the electricity dealers can realize the logistics cost, the flow cost and the marketing cost is a very big expense, does not make the high margin product cannot live. For the sake of high margin, some vertical electric operators use information asymmetry to do imitation goods, but this is not a long-term solution. Vertical electric operators also have some invisible hidden costs. Including the credit cost of the electric dealer, the cost of educating the user. In addition to the vertical electric operators are mainly in the business, and a part of the vertical electricity supply from the wholesale market, the lack of an online business-to-business, which is equal to from the factory to the vertical electric quotient, there is still an intermediary, there is still information asymmetry, still supply chain can not be coordinated.

Third, the vertical electrical business financing difficult problem and the same as serious offline

The vertical electric trader starts to rely on the channel to flatten, the relatively low flow cost and the big data marketing obtains the rapid development, but the electronic commerce characteristic means that the online channel has no scarcity, then gush out numerous competitors. The only thing that will be a heterogeneous one is to rely on buying hands and online brand discount stores to maintain a unique business growth. There is no uniqueness, no moat, no high growth, before the performance of the electricity trader investors is so embarrassing, so the vertical electricity business financing becomes very grim.

The difficulty behind the financing of electric business is the lack of innovative ability, which can even be traced to China's education problems, with the college entrance examination of almost all are homogeneous, lack of innovative thinking talent.

Four, vertical electric business management and information age some disjointed

Now love to learn the electric Shangdou began to know the importance of the operation of Amoeba to the management of electric power, talking about the management of electric business must talk about Guan Mingsheng, talk about the seabed fishing, talk about the advanced management model of lean production. Many facts tell us that when electric dealers have a luxury team, and the MBA textbook to do the management of the electric business, the huge investment has become sunk costs. The electric dealer needs to have the full trust and the decentralization to the front-line staff, needs to give each user the service which is at home, needs the high cooperation with the supply chain, needs the formidable data mining. These are not idealism, but the basic Manual of the management of the electric business.

Even in the face of such a thorny problem, is it true that vertical electric operators are riddled with holes? Not so, but only from the following points:

Redesign the product strategy

At present, if the electrical business to go professional road, adhere to all aspects of the very professional, product line is a boutique route, such ideas may not have good results.

This is mainly because the domestic consumption level is low, professional, branded product cost is rather high, resulting in insufficient purchasing power. Truly find the user's intimate products better than strong research and development capabilities. This is like "lovelorn 33 days" and other small cost production to create a box office miracle, truly into the hearts of users of products is a good product.

Users love the best, better than love products. The wine industry, for example, is highly specialized, and the sommelier's rating is very complex. In fact, the excessive specialization and the pursuit of fine products is to pursue the maximization of business interests, and for users more real natural things are the most needed things.

Second, redesign the channel strategy

To survive, it is necessary to enlarge the size of the business, and at present the scale of sales on the line is clearly insufficient. Vertical electric dealers do not die, but the vertical electric operators that do not integrate with offline channels are really dangerous. When the line under the channel in intensive cultivation, online vertical electric business in the extensive growth, then the outcome is also certain. Offline and online How to integrate, here can only say that the electrical business must break the professional channel of thinking. Specialization channel is the advantage under the line, in the channel strategy has a big breakthrough will have the vitality.

Third, to put the focus on business with users to establish contact

The paradigm of e-commerce is the user economy. The mobile Internet and social networks are the wings of E-commerce, and are the access to close links with users. The electrical business of the amoeba operation to be more bold, so that employees break the boundaries of enterprises, to more free growth. In turn, it will bring more resources and opportunities to enterprises.

Summary: Compared to the platform to do the development of the addition of electric quotient, vertical electric business to do subtraction is more appropriate, but this requires vertical electric quotient to overcome the desire to all-inclusive, the limited resources and energy into the user, while the differentiated road with specialized economy, user economy combined. "Vertical electric quotient is dead" this will become a cottage legend. (Electrical business observer)