Why do the traditional home channel to do the electric dealer is shot?

(This article is published in the "Mainstream Furniture" magazine)

2013 Day Cat Double 11 shopping carnival Eve, suddenly spread incredibly home, Red Star, such as the United States, such as Kai Lung, 19 mainstream traditional home channels to boycott the two 11-day cat between the traditional home channel to implement O2O online shopping experience planning.

A moment of internet uproar, most people think this is the traditional home channel to try to block the trend of development, is to overreach.

In fact, these traditional home channels are by no means a boycott of the development of the electricity business, but only in the boycott of the cat's traditional channels. These traditional home channels of "tyrants", can be said to be in the electric business development on the road has been on the way forward, including the fallen martyrs, part of the struggle, more is on the sidelines and began to prepare for the road.

If say last year double 11 of 19.1 billion sales traditional home channel still in GE, 2013 years double 11 should all home channels have already known this fire has been burned to the doorstep. This home channel line under the direct confrontation exacerbated the traditional channels of crisis, so whether it is already sacrificed, or is struggling, or not on the road, will accelerate the pace of their own electrical business development.

However, almost all of the traditional home channels will face the same problem: how do the electrical business? Faced with this problem, the vast majority of traditional home channels have chosen the "establishment of electric business mall" answer. And this choice is also the traditional home channel to do the root cause of the gun.

It's hard to emulate a successful model

Select the establishment of the Beijing-East Day cat-style online mall, may be the first motivation is to imitate the successful business model, thus the "electric quotient" concept, fixed in the Beijing-East Cat mode.

However, this simple imitation of successful models, on the internet, basically means that it is impossible to succeed.

First, a successful model is influenced by the external environment and the intrinsic genes in the development process. And often we can summarize the successful model of successful experience, may only be part of its success, not even the main reason.

Second, from the perspective of category development, a successful model can only have a final success, and the internet "eldest brother" features more strengthen the category of the brand's successful status. So the internet age is hard to find that imitators can succeed in the market where they imitate successful models.

In addition, most imitators have difficulty in starting from scratch to complete the original rolling accumulation process that the Internet enterprise must experience to succeed. Start out, spend money recruiting teams, buy traffic, attract businesses, and try to quickly narrow the gap with the imitators. However, such projects are often like buildings built on the beach and will soon collapse.

Look at Tencent, not lack of flow, not bad money, imitate countless other business success model, but really successful, only its original QQ and micro-letter. So I said: "The great, will innovate."

The window of the historical development of Home Mall has been closed

We should look at the historical opportunity of the development of Home shopping mall from two aspects:

One is the ability to start from the beginning of the rolling development: that is, a small number of merchants and commodities, sufficient flow and purchase, and then more goods, more flow of higher conversion rate. Most home shopping malls fail because of the inability to realize this rolling development mechanism from small to large. Many people think that the mall failed because of the lack of flow, but the essence is because it can not establish a virtuous cycle of the mechanism. Traffic can be paid for, but this rolling mechanism is not going to cost money.

Today, we basically have no way to build a small site, or as the United States and Lele that year in Taobao open a small shop, and then rely on this rolling mechanism to naturally grow. So the first is tens of millions of of the budget, hoping to hit the traffic in the short term. But we think seriously: how many Internet enterprises are relying on this way to hit the money development?

Perhaps someone is anxious: the Internet is not all burning money to burn out? It's dripping. Internet enterprise development is to burn money. But basically is not the mall has not opened to burn money (otherwise it is called crazy vote), is not the industry has obvious leaders after still desperately burning money.

Moreover, on the scale of home shopping malls, tens of millions of may only be enough to fire, are not qualified to be called burning money. Really want to burn money to develop electric business mall, estimated also no home channel willing to do.

Second, as a home mall positioning, whether a sentence can explain "who you are", you and home mall bosses what difference. The basic principle of Internet enterprise development is "eldest brother is big", if there is no differentiation development strategy, the mall even built up to also cannot survive. Home Shopping Mall Now there are two big mountains in front of the cat, you can explain why consumers want to come to your mall shopping instead of Beijing East and the sky cat?

Choke yourself with your own hand

Red Star Mei Kai Dragon Chairman Chei said "Electric business is the life of the market." Then, the shopping mall is their own life. People like to use the "hand to peer" to describe the traditional shopping mall, I think the use of "hands pinched their necks" to describe more accurate.

Forget the previous analysis of the home electric Business mall is basically impossible to build a variety of reasons, assuming that there is a cow was built on the line on the mall, then what will be the result? I say the most likely result is that the cow was sent to herd cattle, the mall closed or temporarily slowed down. Because the electric commercial mall to the traditional market impact is fatal.

When you choke your neck with your own hands, your hands will lose power. So it's impossible to strangle yourself with your own hand. In other words, the traditional channel of the online mall is not possible to succeed.

When Su Ning first developed the electricity quotient, when the development of the Jindong to the offline store to have the impact, the only call power outage business. Later, under the force of Beijing and east, he sacrificed all the power to develop the electricity business.

I used to assume that the Red Star imitated the United States Lele model the development of electric business as an example of why traditional channels difficult to build electric business mall. Beauty Lele and Red Star have different consumer groups, so the competition is only indirect. Red Star consumers will even give their own reasons not to buy beauty Lele products, think that it is for the cock silk, and the quality of Red Star, and so on. But if the Red Star electric dealer also sells the same product as the beauty Lele, how does the red Star consumer think? Especially when they realize that the price of goods sold under the line is several times the price of commodity on the online mall, they will buy more online, so the line shopping mall business will be a nosedive, so the dealer will withdraw, so the shopping malls will not receive rent, so the line shopping mall on the joint protest online mall, So the online mall mister will be sent to the cattle ...

So I said: do not consider other factors, the traditional home channel to successfully establish the electric business Mall, must meet two conditions in one: the line of their own shopping malls have been routed, or do not hesitate to their own line of the shopping arcade beat rout.

It is not possible to build electricity by rout, and it is not realistic to beat the shopping malls for the construction of electricity dealers. So the traditional market building electric business platform is almost doomed to be shot.

So, the traditional home shopping malls do not do electric business mall, is it to say goodbye to the electrical business? Of course not! In fact, if we forget to be fixed in our thinking of the electric business Mall, but think how to use the Internet Information technology to improve the operation of the offline shopping malls and marketing capabilities, then repent.

This is what I have been advocating for the traditional shopping malls of electronic business.

Tang, home electric business practitioners and explorers, focusing on the traditional household enterprises of the electric Business development strategy and implementation. More articles, please Baidu "Chinatown home Electric Dealer."