Treasure NET founder Cao Yundong: not to make electric dealer "electric injury"

Source: Internet
Author: User

Intermediary transaction http://www.aliyun.com/zixun/aggregation/6858.html ">seo diagnose Taobao guest cloud host technology Hall

 

Not to make electric dealers "electric injury"

The author of this article is the founder and president of the Treasure net, and the founder of Cao Yundong Education Group. Originally posted in the author's personal blog

Two weeks ago, I wrote a "false low-cost" blog post, a time caused great repercussions, there are a lot of praise, there are a lot of controversy and different ideas. The most controversial of these is the assumption that the cost of a shirt with a price of 120 is 78. Some people think this assumption is too high, that the margin is too low. In fact, I know, for the traditional offline retailer a 120 of the shirt's direct production cost is certainly not more than 50, with nearly 60% of gross profit, they will be in the yards, Ching, sold most of the time, the basic can be profitable, the rest of the other through the reverse season, broken-code gimmick discount sold. This is their business model. In fact, the difference is exactly what I want to express the concept of online enterprises in order to compete with the traditional enterprises under the line, desperately in the price of making a fuss, keep pushing down prices, which in the group purchase of electric dealers in the performance of more prominent, more vicious competition. Another platform-type electric dealer is also very outrageous, sometimes in order to attract eyeballs, will be lower than the price to sell, which is to explain some wholesalers sometimes buy their own to sell to the electricity business.

So why is it so cheap? Are those founder who are highly educated and have a good educational background really so stupid, don't they know this account? Of course not. In fact, to understand these founder is not difficult, they are planning a leading to the capital market "Sunshine Boulevard", first through financing to get funds, and then burn money through low-cost attract customers, improve sales, then to finance, and then burn money to attract more customers ... The final IPO, shareholder withdrawal, successful. "As we all know, the big guy on the east surface is through such a way to make." See the success of Jing Dong, we all eyes enthusiastic jump, I, too simple, is not burning money? Fooled investors, make a business model, desperately advertising, crazy for a few years, is not another Beijing East? In fact, Jingdong's low price is really an illusion, if someone told you that the core competitiveness of Jingdong is low price, Then he is either a fool or a liar. Few people go to serious to study the true meaning of the success of Jingdong, every day to satisfy their own fantasies, that success is so simple, so close to their own. Jing Dong's success benefited from its better to step on the point (this is actually pure luck, the so-called weather), a strong logistics system, good Internet technology, super financing capacity and so on. These things are the foundation to support the low-cost survival of Jingdong, and Jingdong want to profit at any time can be done, but old Liu think that should be expanded now, should not sacrifice the speed of development to profit, really to the size of the time, it is possible that he will choose to profit. More importantly, Jingdong has opened the way to the capital market, fortunately, Americans very much recognize such a "loss to make a yell" business model, if only a a-share that would be miserable.

Calm down to think, for the countless other large and small electric dealers, we can really repeat the road to Beijing east These years? The answer is no doubt negative. 2010 study and think of the public road performance, Fidelity analyst asked me how you prevent others imitate you, copy you, I said I can not completely prevent others imitate me, but they have no way to copy our entrepreneurial environment at that time, no one can imitate. Old Yu ability again strong, give him more money, he also cannot make another new oriental come, I also can not make another study and think. Even if strong as old Mao, he can not reverse history, only homeopathy. More frightening is another number, saying that China has nearly 300,000 internet companies, the probability of listing is only one out of 10,000. This number may have moisture in, but even on the city's company, it is not necessarily a sunny avenue, to see Macaulay, see when they go to the city and what? So the so-called "Sunshine Avenue" to the capital market is a silent way for most people.

It sounds pessimistic, and it's pretty scary. The electric dealer turned into a "electric injury" completely. This model in the future will be how, I in the last article has been focused on the emphasis, I am very optimistic about this model, our treasures network also invested in the development of the investment, is also very good. The electric dealer may be the greatest business model in human history, and he has changed too many things. In fact, the reason why the electric company turned into "electric injury" is that most people, such as the operators, the founder and the investors, do not really think of it as a business, but they can do it as a marketable business model. This is really a violation of the basic business law, we believe that some people can rely on this mode of success, but for most of the electric business enterprises, it is impossible to succeed.

Price war, Low-cost strategy are very harmful, without the strong foundation of Jingdong, low prices will make some enterprises to do wrong, poor service, slow, and even some companies sell fakes, do evil things. Price war This strategy really not every enterprise is suitable, you have to calculate, how long your money can burn?

Chinese people have entrepreneurial dream, the listing dream. But in fact the listing of this thing is a good thing, in order to go public listing, there will not be a better result. In fact, for a business, listing is not a goal at all, to do business well, to give your users value, to earn the money you should earn, this is your value. Listing is a thing that can not be asked for, is a very good luck thing. This illusory thing should not be a business goal.

Steady development, characteristics, profitability, good service, can make money. These characteristics are the characteristics of a normal enterprise. In the provision of quality services based on the price can be more favorable, to provide users with benefits, it is certainly better.

The electrical business as a real business to do, not to make the electrical business "electric injury."

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.