What do you think of the "vertical romance" of the electricity merchant split?

The "vertical romance" behind the separation of electric dealers

The relatively low-key red child is among the new wave of Chinese Internet industry listings. Red Child investors have previously disclosed that the hope that red children will be able to connect with the capital market this year, listed in the United States.

March, in order to speed up the market, red children to their business and business strategy of the second round of adjustment, that is, the main business of the Internet. It is understood that the mother and child supplies started the red child relative to other e-commerce companies, has been low-key, its initial catalog sales model, followed by the formation of catalog and online sales model, and gradually expand the product line to digital, cosmetics, health products, home and other categories. Last November, red children to strengthen profitability, the massive cancellation of catalog sales business, strengthen the online sales business, in order to effectively reduce marketing costs through channels. And the mother and child Business and department store business split, then specifically for the strengthening of mother and infant main business, Jian refers to the IPO.

After the adjustment of this round of red children, there are red children Han two shopping malls. Red Child Mall main mother and child supplies, Plantronics Purchase network sales of cosmetics, health products, home, digital and other commodities. Red Child CEO Xu Xianxin said in his microblog, red children spend two, can achieve "two mall, an account, a shopping cart" mode.

Analysis of the industry, from the current strategic adjustment, the red child is a stripping of high-quality business listing routes, highlighting the main business of the sustainable profitability. And a company will be competitive, profitability of some projects, split out listed, can help the new company to obtain a better price.

When the vertical E-commerce site developed to a certain stage, will face to the general and department stores in the direction of the temptation to develop. At this time, blind expansion in fact, the long-term development of their own does not benefit, vertical can be intensive, do through the professional, with core competitiveness. In this respect, Sheng Media CEO Qingeo, who is a vertical website, said, "throughout the industry, many of the current domestic shopping website is not able to create benefits for the site investors." The reason is very simple, a not to really understand the user, unable to obtain user trust of E-commerce sites can not be successful. The vertical website should use the formidable technology development strength, to the network marketing continuous research achievement, provides the whole solution which takes the user experience as the core, the network Marketing system as the support, the benefit transformation as the goal. In addition, the domestic vertical website market is not released, enterprises should fully tap the potential value of marketing, more effective precision marketing. ”

At the same time, Qingeo also cited a more successful overseas example of a vertical web site, such as the U.S. Wateronline.com website, its initial service target is water and wastewater treatment engineer, now it has developed into a water treatment industry online exchange. The site, which started with wateronline.com, has now developed into a vertical community of more than 50 specific areas, from mechanical manufacturing to medical care, from food packaging to garbage disposal.

Blue Ocean still

There is an analysis of the industry, Sina, Sohu as the representative of China's Internet portal, for E-commerce, online games, corporate markets, tourism and search and other Internet hot vertical business, has been tried, but in the end there are few successful cases.

The development of vertical Web sites is a mixed blessing. 263.net because the main business is not prominent, the profit model has defects, has been a dream of broken medium-sized board; Alibaba is one of the representative companies to split the listing, the original due to Taobao, Alipay and other business profit status can not reach the listed profit requirements, Alibaba will be the unique business of business-to-business Independent listing.

It is understood that Sina's vertical areas of assets split and packaging listed, Sina CEO Cao Chao's biggest wish. Sina split real estate channel and easy to live in China to set up Sina happy home after the successful listing, Chao has repeatedly said that in the future, Sina does not rule out in the vertical field continue to split related business, copy the "Le Habitat" mode of the possibility.

However, after the Red Sea competition after the vertical web site, can once again open a new blue ocean?

According to a recent report by the US research institute Morgan Stanley, vertical network media occupy an absolute advantage in the field of digital, aviation, tourism, automobiles, real estate and other mass consumption. In addition, most of the consumer areas of the industry chain is more complex, with the main news entertainment all-inclusive portal in the coverage of these industrial chain links, does not occupy an advantage.

Similarly, IDG after the global Media audience survey, also concluded: "Professional and technical Web site to attract the audience." "75% of people say they rely on professional technology networks to get technical information, technology trends, technical news, technical reviews; 85% said that technology websites are the most valuable and important channel for them to acquire technical information, followed by search, and 75% say that the information provided by technology websites is the most credible.

Reports from two of the world's leading research institutions invariably look to the professional vertical network, which may indicate that in the increasingly competitive Internet field, the vertical web site, which has gone through more than 10 years, still has incomparable advantages. However, the problem can not be ignored, Qingeo told reporters, "How to inherit the consistent professional advantages, and the advantages of more in-depth infiltration of consumer products shopping guide, use and after-sales service of the various details, it is a vertical site to consider the issue."

"Vertical" less "detour"

In a nutshell, the biggest difference between vertical and department stores: "The department store website" is equivalent to selling the goods provided by the manufacturers, "vertical website" is equal to selling the products that customers need.

Back to see the Chinese Internet through the wind and rain for 15 years, the general experience of happy enclosure, struggling to survive, intensive cultivation of these three stages. These three stages is the gradual refinement of the internet industry gradually deepened the process, so "all-inclusive" model is doomed to not adapt to the long-term development of the Internet requirements, blindly chasing the wide net of all, also means that the face is not done fine enough, it is difficult to obtain a better input-output ratio.

The current Chinese internet market, after a natural selection of the waves after the sand, showing a few big echelon. The first echelon includes Tencent, Baidu and Alibaba; the second echelon is Sina, Ctrip, NetEase, Sohu, and so on. Among them, Ctrip is undoubtedly the leader of the vertical site, has been China's internet companies in the top ten market capitalisation, at the end of 2010 at one time ranked fourth. Qingeo that "This shows that in the Chinese market, huge consumer areas, the emergence of many large companies." There used to be no more than 1 billion dollars worth of companies, but now can be seen, such as tourism has Ctrip, in the real estate sector, there are search rooms, in the recruitment field, there are worry, these are now 1 billion U.S. dollars level of enterprises. So to sum up, in addition to the Internet now everyone familiar with these names, in fact, based on the consumer domain vertical website, is becoming the Internet more and more mainstream of a force, this is most people do not realize. ”

At the same time, for the industry-class vertical portal, the key is also through the joint industry, or to support distributors (upstream and downstream) of the way to expand the ecosystem, to form as complete as possible industrial chain. In the improvement of the ecosystem, can also be divided into two types of situation, the first category itself is a distributor, there is sourcing, can obtain more customers through E-commerce, expand their own ecosystems; the second category is from the website to the dealer, for example, the site, is the first user to the enterprise extension. Who is the most integrated in the vertical area of the industry chain, who is likely to do the most in the vertical area.

The vertical website should use the formidable technology development strength, to the network marketing continuous research achievement, provides the whole solution which takes the user experience as the core, the network Marketing system as the support, the benefit transformation as the goal. Because the vertical Site 3.0 era will pay more attention to user experience and user needs, users will become the end of sharing, who can stand on the user's point of view, who pay more attention to user experience, who can stand in the future of the Internet vertical area of the commanding heights.

Hold the regiment again and again

Now, with the development of the Internet industry, such as e-commerce, social networking, as well as the rapid development of mobile Internet, the vertical site has brought new opportunities for development.

E-commerce, e-commerce sites are beginning to catch up with the tide of the business. According to the Ministry of Commerce data, 2010 China's online shopping scale is expected to reach 450 billion yuan, almost one times 2009. Web site Traffic monitoring website CNZZ Data Center released a report that December 2010 visited E-commerce sites of up to 350 million netizens, accounting for 87.22% of the total number of users, the annual industry visitors increased by 36.51%, more than the annual growth rate of the national Internet users. 2010, 62.54% of the E-commerce site is the Business-to-consumer. The growth rate of the Web site has reached 20.45%, surpassing the growth rate of e-commerce industry.

However, it is noteworthy that all-inclusive's "department store" development path should not be an E-commerce site to follow the way out. A little thought, because E-commerce itself has opened the original entity department store geographical space limit, for an E-commerce site, in the logistics and express Company's support, almost all over the country netizens can go to its shop to spend. At the same time, E-commerce Web site has also lost the physical department store geographical barriers to the shelter, physical department stores, although not able to serve consumers everywhere, but often become the preferred place for local residents, so the passenger flow is also more stable.

With the original vertical e-commerce sites in the direction of general merchandise development, they have become a lack of core competitiveness, and most e-commerce sites began to resemble. Any pursuit of a comprehensive E-commerce site will become its competitors, and the market is doomed will only have a few large E-commerce department store can survive. This will be the extinction of the e-commerce sites that leave the "vertical" guardian.

Vertical website even to the comprehensive development, should also take several vertical professional websites subordinate to a group of models to carry out. such as red children in the search for such a way out, will be the main business after stripping, the bottom of several operating different business of the mall together belong to a group above, but their respective foreign operations, the formation of brand differences.

At the same time, the Sheng media has taken a similar approach, enabling large groups of 4 vertical network companies to cover all target groups in the IT and automotive sectors in a broad and accurate manner for people of different needs. In this way, significantly improve the number of effective users and enrich the user population level. For example, IT business department, it portal IT168 focus on providing personal consumer electronics products to enterprise information solutions, services to "individuals and enterprise users", has established a complete independent product evaluation system of vertical web site; and bubble to "crazy to meet users" as the goal, Let the user find the content within three clicks, more emphasis on the interactive, young and fashionable style website. The two websites of the auto division, CHE168 advocate enjoying the high quality car life, service in the car, know cars, play car "heavy" car users, and auto as the world's largest vehicle website, the most widely covered by the rapid growth of China's automotive consumer groups, really for the car, the crowd of vehicles to serve. In this way, the Sheng media business model to become a three-dimensional precision marketing platform.

In the future, vertical Web site should also be done fine through, even to the big development, should also take the group model, can be a number of outstanding independent vertical companies to form a large group to develop. At the same time, vertical web site development is accurate, professional, excellent, will usher in more network advertisers favor.