Vertical electric dealer Hot guest dead 60 million investment

Source: Internet
Author: User
Keywords Vertical electric dealer electric dealer flow hot passenger net

The development of the electric business industry is like a big wave, when the tide receded you know who is swimming naked. Not long ago, The Times weekly reporter learned that trying to build a large integrated network shopping platform with fashion hot products--hot passenger network into the capital chain rupture crisis.

After insisting on two years, burned more than 60 million yuan, the hot passenger net also had no accident on the ground the electricity merchant death list.

Burn the Money sample

Shanghai ushered in the hottest summer in 140 years, but the green as the keynote of the hot passenger network is not because of this fresh and natural color and feel the slightest coolness. On the contrary, the hot guest is falling into the chaos of physical conflict due to wage arrears.

March 2011 Online Hot Guest, located in Shanghai Pudong World Expo Plate Creative Park, is a covering apparel, shoe bags, skin care beauty makeup, portable digital and many other personal fashion products can be carried by the electric business website. Since its establishment for two years, there has been little noise about the hot guest, and its development is tepid in the outside world.

Just born, hot guests in the Internet set off a fashion trend of the wind. Hot passenger network under its own brand L ' CART director Ma Jingni has said that the hot passenger l ' cart audience is young fashion crowd to Zara, h&m as the object, both the European and American style, at the same time in the design tailoring closer to the stature of the people, the price is also more advantages.

Overall, the establishment of the two-year hot guest has been exerting force in the vertical subdivision area, is the rise of the vertical electric quotient samples.

Often to Shanghai song City users may notice that in the gap between the song, hot guest ads are always on the screen corners broadcast, which is behind the Shanghai Song City is one of the investors behind the hot guest.

At the beginning of August, according to people familiar with the situation, Shanghai song City after the investment of 60 million yuan to withdraw, "the boss himself voted 7 million", but still failed to prevent the hot passenger capital chain broken process. After the incident, Hot guest President Li Jiangen was once blocked by staff in the office.

Time Weekly reporter found that the last micro-blog Li Jiangen on July 4, forwarded a hot guest official microblogging June end of the news. But under this microblog, the only 7 comments are almost always the word for pay. Search on Weibo can also be found, the news of the Hot guest is also eyeful "pay".

According to the above people, since the establishment of the hot passenger network, the daily order volume of up to 100 orders, the average monthly turnover of only 300,000-500,000 yuan, the company investors have decided to close the hot passenger net in the near future.

In the increasingly fierce competition in the electricity business, there have been a lot of vertical electric dealers have closed down, there are small electric dealers were forced to buy or transformation, such as the red children are easy to buy Su Ning, the first time to integrate into the big family, Lok Tao by the Toy transformation Footwear consumer. Analysts believe that such "do not pick up the atmosphere" of the vertical electric operators, such as hot passenger network, neither brand awareness, nor a good user experience, perhaps the closure is its best outcome.

The ruin of the vertical

In fact, the sample of hot passenger is not solitary example, throughout the domestic vertical electric business, the days are mostly difficult. From the second half of 2010 to now a short span of three years, the vertical electric dealer from the previous sweet cakes, developed to now talk about "vertical" color change. Compared with the great platform electric Dealer's scenery infinite, many vertical electric operators are in miserable situation, live hard.

Xu Xiaohui Two years ago, the creation of the first brand electric dealer, to original design costumes mainly, has been million Yuan Angel investment. But in just two years, the first moment of prostitution to the visitors. And in the early days before, there are many well-known vertical electric dealers are doomed to escape, such as Lok Amoy layoffs, only cotton failure, the industry questioned whether the vertical electric business has more and more sound tomorrow. A large number of vertical electric dealers staged a "domino" effect, have collapsed. This is mostly behind the financial chain break off.

Along with the Beijing-east and other comprehensive categories of consumer electric power quotient of the strong rise, to the development of vertical electric power to bring blows, their survival space is obviously squeezed, vertical electric business survival difficult. At a time, the opportunity of the small electric business was eroded, forcing the electric business enterprise to return to the commercial essence, abandoning the burning money mode, through the market segment, enhances the product quality and the service to obtain the user.

But now, another phenomenon that can not be neglected is that the products of vertical electric dealers basically belong to semi standard and non-standard goods, because the war of standard goods has already finished, in addition to Taobao department, the former to start with the standard products, such as Beijing East, when, Amazon and so on will be large-scale after the opening platform, and quickly dabbled in the semi-standard and non-standard products. At present, platform-type electric business open platform of development has become increasingly mature, directly to the formation of vertical power manufacturers squeeze.

In the industry, the integration, closure and acquisition of vertical electric dealers will become the future development trend of the industry. This view holds that, in the years time, the vertical electric power trader will appear the oligopoly competition situation, namely the specific domain two to three enterprises become the market leader, but "defeat" the enterprise will be the comprehensive class electric dealer to acquire more.

And for the vertical electric quotient disadvantage of the current situation is, with the electronic business platform visibility is more and more high, will be more conducive to attract traffic. Data from the China Internet Information Center show that Jingdong and the flow of the cat accounted for more than 50% of the business industry, Suning easy to buy, Bowser and other online mall traffic also showed a significant increase, but the vertical type of electrical business development prospects are not optimistic, from the beginning of last May, where the passenger traffic accounted for a decline, good buy, In October, the volume of the MAI test was also down 40.7% and 35.4% respectively.

Some data show that in 2012, China's web site has nearly thousands of Chinese companies, but revenues can reach tens of millions of dollars only hundreds of. Moreover, the 60%-70% of these websites have a downward flow of traffic, the real traffic has risen only between 20%-30%. Fierce competition, so that "survive" has become a number of small and medium-sized vertical electric operators the primary goal.

Mode of Reflection

Last year, the electricity business in the cold winter, "to find ways to survive" has become a desire of many electric dealers. However, under the pressure of the electric business giant, the outlet of the vertical electric trader is worth thinking.

In the vertical area, the business model is a major test. Electric business observers believe that the vertical electric business has two extremes, one is only to do the agent brand, one is only to do their own brand, the former can only rely on the price war, the latter lack of traffic.

Electric business experts, is looking for consulting company president Luebbe Hope that the significance of vertical electric business lies in the field of specialization, but because the market homogeneity of the reasons, the substitution is very strong. Moreover, Chinese consumers are used to buying products in one place. There is a saying in the industry "no brand, no electricity dealer", that is, the product has a unique, personalized, with its own brand products, vertical electric business can live better.

In fact, only when the vertical electrical products to do deep professional, to achieve difficult to replace the time, the vertical electric business of the spring is really coming.

The current Le bee, poly United States, only goods will be done well. For example, Le Bee Network has 14 major categories, covering cosmetics, health products, clothing and apparel three modules, more than 400 existing brands, concentrated in the skincare category, skin care products, make-up and health care products sales ranked in the top three.

According to the "China Cosmetics Business Competitiveness Analysis" published by Yi-Zhi, the report shows: in December 2012 and January 2013, le Bee net daily average number of independent visitors to the top two seats, about the market for the third day Skynet three times times, the advantage is more obvious.

Eric Consulting Group President Yang Weiqing that the future e-commerce will be a more fragmented market, in addition to the existing several large integrated E-commerce giants, E-commerce opportunities will be more in these market segments, although the coverage of small, but it makes users more accurate and more valuable.

Jingdong Mall CEO Liu has said that in 2013, the vertical consumer electric power provider "to the independent brand has a lot of opportunities, but the main retail platform for vertical electric dealers are doomed to have no opportunity." In his view, whether the traditional retail industry or the Internet industry, "Development to the end of the three to five, and now is thousands of, so I think 99% of the Electric Chamber of Commerce died."

In the comprehensive electric Trader's step press, the vertical electric commerce development space is squeezed, but under the comprehensive category electric commodity expansion strategy, the vertical electricity merchant market share develops slowly, more is its business model decides the outlet.

In China, online shopping has become one of the fastest growing industries in the network economy and has become a very powerful complement to the traditional retail market. It can be foreseen, whether it is a diversified model or vertical e-commerce will have their own market prospects, vertical e-commerce to understand the connotation of the vertical e-commerce, in the day-to-day operation, E-commerce enterprises in the choice to do the vertical model at the same time to the direction of professional development.

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.