The vertical electricity merchant is robbed by the life and death: closes sells the layoff to be the main label

Author: 2012 Electric Business Pattern continues to differentiate, the big platform stands out, the vertical electricity merchant bad news unceasingly. Closures, sales and layoffs outlined the existence of a vertical electric trader. Why are the vertical electric dealers in such a situation?

In addition to the competitive reasons, the main or vertical electric operators can not quickly find their own positioning, by the market and capital holding "keywords" walk, forced to fit. Where is the future of the vertical electric dealer? The industry has been arguing that there is no way out, but there is also a view that the opportunities are still great and the key is how to operate.

Profit dilemma

Without continuous advertising, the sales of vertical electric dealers also declined. In the face of such a situation, can only continue to slim down to live. Most of the vertical electric operators took a second step, that is, pay cuts to employees and even layoffs.

"It's not convenient to be interviewed, sorry." "The first-time CEO, Xu Xiaohui, who was waiting for the sale, said to the China Business News reporter. Compared to the cotton, the first moment there are opportunities to find buyers, the situation is better.

From the beginning of the 2012 venture capital cold to the electric dealer, in the burning money phase of the vertical electric business days have been bad.

At the beginning of 2012, most of the founders of the vertical electric operators also pinned their hopes on looking for the next round of investors. At that time, every day net CEO Ching and elegant 100CEO Chen Tenghua all said the company has the financing will, but the progress is not smooth. It is understood that elegance 100 in 2012 still got the original investors additional investment, but this is not the ideal result.

Investment cannot keep up, the risk of capital Duanliang has been lingering in the head of the vertical electric quotient. In the face of stretched money bags, the founders first thought of spending cuts. The first step, reduce promotional costs or even stop advertising, a reduction or stop advertising, traffic will be cliff-type decline. The November 2012 data show that, in 2012, China's web site has nearly 1000 companies, but the revenue can reach tens of millions of dollars only hundreds of, and these sites 60%~70% traffic is falling, real traffic has risen only 20%~30%.

Without continuous advertising, the sales of vertical electric dealers also declined. In the face of such a situation, can only continue to slim down to live. Most of the vertical electric operators took a second step, that is, pay cuts to employees and even layoffs. However, as a result, corporate morale has been hit hard and it is harder to achieve a rebound in performance, and the delay has been a reality for some of the vertical electric operators.

In response, Jiuxian CEO Shang pointed out: "Most of the business is not playing their own money, so face the company's losses do not care too much." "It is natural for most people to think about making money when they hit a certain size by advertising, as long as the scale and speed." The reality is very cruel, scale is not equal to everything, such as Jingdong, when the profit is not easy, not to mention the smaller scale of vertical business-to-consumer.

A case worthy of analysis is the cotton, the original plan through the United Jiangnan Spring (micro-bo) outdoor advertising platform to open the first brand of socks sales. But the cotton did not stick to the end, the huge cost of advertising investment is obviously with the start-up style, and finally lead to a broken capital chain, enterprises closed.

"From the second half of 2012, the entire retail market began to go down, especially the electricity quotient of this piece, we can feel." "CMO Xu that the overall macro-economic downward also to the vertical electric operators brought external pressure."

Obviously, the pressure on vertical companies comes from the big platforms that are ramping up their investment in the vertical field, the cat, Beijing East increased investment, suning and Gome (micro-Bo) Bowser also have to pull cage vertical, platform-type electric trader diversion part of the passenger flow, make vertical day more sad.

Unclear location

For many entrepreneurs, when they chose to do vertical, they did not think about what to do or where to go. It can be said that most vertical business-to-consumer positioning is problematic.

"All financing that is not for profit is bullying, and all investments that are not made to make money are nonsense!" "Wanga Investment chairman, Zhejiang Business venture partner Zhang wrote in Weibo.

Some people say that the vertical electric business bubble and crazy Capital is not involved. Before the first half of 2011, it was easy to get a VC on a vertical one. For example, Xiaoping, an investor in Cotton, told reporters: "After only 20 minutes of meeting communication, I decided to invest." "Visible, at that time, the fiery degree of the electric Business Project."

In fact, for many entrepreneurs, when they chose to do vertical, they did not think how to do, where to go. It can be said that most vertical business-to-consumer positioning is problematic.

At first, most people chose when, Fank as a pacesetter to imitate, first the vertical field scale bigger, and then made a platform. They take for granted that can sell books, clothes can naturally also sell 3 C, sell department store. Can be practiced, and not so simple. How to sell a certain kind of thing to scale? Vertical electric dealers have fallen.

Shang that many of the electric business entrepreneurs do not understand the business, most of them have worked in the Internet companies, for the electronic piece is very good, but the understanding of business is not in place. One obvious example is that vertical Business-to-consumer invests money in software, buys software to do the system, optimizes network platform display, loves to promote network and so on. Although these are important, the key point is that the essence of the Business-to-consumer is the channel, its main function is to sell products, the volume is the goal. Ignoring the choice of products and repositioning of customers, too much showy value is not significant.

In addition, some of the company has struggled to make a channel or a brand. Perhaps the choice of every guest today has represented a direction. Professional and focus is very important, where customers return to their own brands, exit the platform competition to seek profits.

When death approaches, survival is the most important. Due to the high flow cost, many vertical companies have chosen to enter the open platform of all major electric dealers. Although it is possible to walk a little bit in the short term, it is also a one-way street if you do not have the prepared vertical business-to-consumer.

Tesco COO Zhangxiaojun that not every vertical company is suitable for this, and that it also requires cost and resources. "If you have any cards in your hand, you will be able to make the cards." Without the hundred-li background, no supply chain and two advantages of the capital chain, we would not do so. "Zhangxiaojun said.

Return to the Essence

The outlet of vertical business-to-consumer is to reconstruct its own unique DNA from the retailer's point of view and design the core competence.

What is the future of the vertical electric operator? Li Chengdong, an analyst with the electricity business, has caused a strong reaction to the idea that the independent operator has died. This suggests that the question of where vertical business-to-consumer is becoming is already a problem.

Return, which is perhaps the key to the 2013 vertical Business-to-consumer out of the confusion. Elegant 100CEO Chen Tenghua (Weibo) more than once to reporters that the electric business is a long-distance running, but by the capital and market with the speed of sprint, now the industry calm down, rational to do the internal strength of the enterprise is a good thing.

Coincidentally, still product network CEO Zhoshi also believe that the current domestic electrical industry are biased in the impetuous, only to sink down, steady, and adhere to the long-distance running strategy, can achieve stable development of enterprises.

"Good business is to practice the internal strength out of, we pay great attention to the skills to fix, especially the user experience, the requirements of meticulous service." "Zhoshi said. Chen Tenghua that vertical consumer can help customers pick out the most suitable products because of their focus on a particular field, which is a specialization caused by focus. and focus on the mother and child of Le friend pregnant baby chief operating officer Gongding also said, "really deep in the industry, you will find a lot of fine things must be mastered, such as pregnancy and infant supplies standard changes, if not professional hard to do so meticulous, master so comprehensive." ”

Zhangxiaojun For example, if the consumer does not have a clear section number, the browsing experience, the retrieval experience and the screening experience are far superior to other platforms in the superior purchase, this is the specialty to the unprofessional characteristic, also is the synthesis does not arrive.

On behalf of the network CEO Kongkong (Weibo), when the platform is more and more large, can not do a lot of things to fine, and the vertical electric operators can just grasp the platform of these weaknesses, to carry out targeted adjustments.

In fact, in another perspective, the vertical electric dealer is a professional shop, professional channels, always have the opportunity. Like grocery stores can never replace clothing stores, Xinhua bookstore. If the vertical electrical business as a professional channel, the future is promising, the key is to return to the position, reposition, the early number of the pulse of the retail industry.

Suning Electric Appliance Chairman Jindong and Shang both believe that the future will not line up under the difference, or even the concept of the electric quotient, only retail and channels. Who can provide consumers with better, more efficient products and services, who will achieve sustainable development. In their view, the way out of vertical business-to-consumer is to restructure their unique DNA from a retailer's point of view and design their core competencies.