Vertical dealers Hope O2O The profit model of non-standard goods tends to diversify

Daily economic News (blog, Weibo) reporter Tao Li from Shanghai

With the Red Star of the United States Kai Lung Online mall, Qi Home Mall of the formal test water, non-standard products (to meet the personalized needs of different customers of goods) is expected to become a rival to the electric business of the blue Ocean.

In August this year, the new cat more than 100 merchants, household class accounted for nearly one-fifth. As of August, the old building Materials home Web site is announced this year's sales have reached 12 billion yuan, more than 11 billion yuan last year.

Industry insiders expect that with O2O

(The line ability and offline user life associated with a service) is constantly heating up, the sale of non-standard products, vertical electric dealers will usher in a blowout.

On-line diversion

O2O is not a fresh concept, but it is getting more and more attention in this field by the wind of the mobile internet.

Public data show that from the beginning of 2010 to November 2011, a total of 64 O2O enterprises to obtain the favor of venture capital. 2011 years ago 11 months, the O2O market investment amount of nearly 7 billion yuan. 2011 year, China O2O market size of 56.23 billion yuan, is expected to reach 98.68 billion yuan in 2012, growth rate of 75.5%.

Huge market potential, luring Internet enterprises to reach some mature O2O mode website.

Last week, the Life Services website Ding Net announced the acquisition of Alibaba and Citibank investment. Tintin CEO Longjiang said, with Ali and Citi Capital cooperation, mainly in order to speed up the Ding O2O platform E-commerce, Alibaba has good resources and payment channels, Citi credit card and Tintin app users can add value to enhance user viscosity.

For this investment, Ali Capital managing director Zhang Hongping said, "and ding Ding net cooperation, in addition to bullish O2O business in China's development prospects, its app Tintin discount is also the local life field to O2O E-commerce platform, one of the channels, and Alibaba has a number of business units synergy." ”

This is Ali group in the O2O field again layout. Previously, Ali Group has been in a number of areas in the layout of O2O, including Alipay, the cost of a good, two-dimensional code parity and other projects.

In addition to Alibaba, Baidu announced last month to split the Baidu map, the establishment of lbs (location-based Services) division, and Baidu Mobile cloud Division will be a two-pronged approach to form a cloud + end of the mobile strategic layout. Before this, Baidu will also "have Ah" from Baidu Split, renamed as "Philharmonic Live" focus on local life services.

Baidu Strategic investment of Qi Jia Network also uphold this concept, trying to break through the line, combined with the business model, in the vertical electric field to find new breakthroughs.

The company, which has experienced 4 rounds of financing, now occupies 40% per cent of the home improvement business and continues to be profitable. This October, Qi Jia Network formally announced the strategic transformation, will be divided into home network split into a group buy, neat home decoration, Qi Home Mall three business.

Qi Jia Network CEO Deng Huaqin in the "Daily economic news" reporter interview, said: "To do the standard platform-type electric business will be a day cat, Jingdong Mall and a few, but not the standard product vertical electric trader will be the future." ”

Diversification of profit patterns

From the layout of Baidu can also see the wind direction. In recent years, Baidu has invested in the online tourism platform to where, real estate electric business platform for tenants, such sites are the service chain of the long vertical electric quotient.

Deng Huaqin that the sale of non-standard home must be O2O mode, that is, "Online + entity dealers" combined to attract more merchants and users. "O2O is not a simple combination of lines and lines, but rather a path that is most efficient and meets the needs of the user." ”

It is reported that Qi Jia Network provides a one-stop consumption, including decoration solutions, materials purchase installation and acceptance check in. In addition, the original business of the net is O2O group purchase, the online users will be brought to the offline group buying transactions, this business has become an important source of their performance.

Reporter learned that the use of O2O model sales of the Cat Mall of the wood industry and Taobao love Honeycomb, users online optimistic about the style can be ordered on the online.

Unlike online businesses, which rely on trading to gain revenue, the vertical dealer's profit model is more diversified.

One electric business personage said, "The main succoured product's electric dealer because the service chain is longer, and line on-line under the combination close, the threshold is high, is not easy to enter." At the same time, the non-standard electronic business margin huge space, can operate a wide range of space. ”

"The product of this industry is too non-standard, it is difficult to use a model to unify the operation." Deng Huaqin to the daily economic news reporter, to logistics, for example, the switch can be transported by ordinary courier, but the cement must be transported by truck. The two products in the logistics can not be unified, not to mention so many complex building materials products. Therefore, he thinks, the big store mode of the hundred homes if move to the Internet, basically is impracticable.

Non-standard industry status, determines the different profitability level. Deng Huaqin revealed that the net gross margin of 30% or so, and create high gross margin of the product is precisely the most non-standard products.

However, this does not conflict with traditional business logic. Deng Huaqin explained that the standard product's gross margin is very low, but it is the user must choose the product. and non-standard products, such as cabinets, floors, wardrobe and other products, gross margin is very high, this is the real home vertical electric business focus.

For this type of products, the net will be under the line group buying mode to reduce the cost of the channel, the general will ensure that users buy the price than the market price of 25% or so;

Electric Business observer Ruzenwang that the vertical electric quotient and large-scale platform has the essential difference, the core of E-commerce is through the Internet technology to drive the traditional vertical industry change, the traditional platform Web site manufacturing costs are standard, there is a unified ordering and service flow, but the vertical type of electrical business can not completely rely on offline. "Non-standard commodities breed huge opportunities, and the key is to see how to improve the experience." ”