Will the electric dealers come in the winter?

economic leader: Recently, electric business Industry all kinds of news one after another, first star morning and fall, the United States Lele was pirated infringement, and then the civil strife, PPG poured out, at the beginning of a large number of group purchase site Outbound Capital chain crisis ... The perception seems to be that our E-commerce is facing a crisis similar to the one in the 10 before the Nasdaq bubble burst. Do you think that the electric dealer's winter will come in this spring?

Zhao Wei-min: China Household Electrical Appliances Association secretary General Xu Dongsheng once said, online mall is the future development direction of home appliance channel. At home and abroad, many venture capital has been deeply involved in the future of China's electric power industry, since 2010, VC (venture capital) has become the core of China's E-commerce development, each new model and each segment of the electrical industry is a variety of VC crazy chase. As a business person in the electricity industry, I am still optimistic about the future of the electric business. The current crisis, more, is that the electricity business in this industry in a less mature situation, individual enterprises individual behavior, is not universal.

Economic Herald: In the present China, E-commerce market is more like a lake. Electric dealers from the date of birth, has been familiar with the price as a competitive must kill technology, a round of big promotions although temporarily pulled up sales, but did not really establish a profitable business model. This rely on the low price competition to pursue the growth trend of scale, quite a bit of quick success of the gambling flavor, and the previous years, "its Xing also Bo Yan, its death also suddenly Yan" VCD market chaos is how similar.

Zhao Wei-min: As the industry, I witnessed a group of such electric business enterprises: small and medium scale, can not affect the supplier, the next no loyal customers, the middle of the operation cost is high, many enterprises fall off when not without users, but the capital chain broken. I think if they can compress the cost early, the fine plow user, does not take the fast hegemony as the goal, by the electric commerce business model alone, they also not to die so fast, or say, at least not to live so miserable.

Economic Herald: When it comes to the business model of the electric business, I think some advantages are obvious. The first is that the Internet has profoundly changed our way of life; Secondly, with the maturity of the network technology, the terminal scene display effect of the real store is difficult to be fully played by the limitation of the comprehensive quality of the practitioner, especially, it can't give the consumers more authoritative data. The value of the entity store is decreasing in front of the jina of mass information, instant interaction and settlement platform.

Zhao Wei-min: There are still some special circumstances, different categories of the degree of electrical business is different, such as large appliances and other products may progress more slowly. If some appliances, need strong enough software support, with a more on-site video and intelligent real-time interactive system, so that consumers get all the necessary data and the sense of the scene, to solve the consumer's touch of material needs, so as to eliminate its "GE buy cattle" opacity and psychological anxiety.

Economic leader: Buy goods from the "experience" to "tacit" change, for the Han clothing homes, when such as small daily necessities, clothing, books for the main product of the electrical business, may be easier.

Zhao Wei-min: Electrical appliance products, related to from logistics, warehousing, distribution, installation and other construction costs of the entire industrial chain, to allow the current fragmented shopping guide, delivery installation, maintenance services, such as integration into a seamless whole, thus forming the usual what we call "the last kilometer service" ability. And the formation of this ability, light personnel training is a vast project. In this way, the start-up operation of the time, capital, manpower costs are relatively high.

Economic leader: But at present, including many physical stores and large manufacturing enterprises, the "last kilometer service" is mostly engaged in professional third-party after-sales service agencies to be responsible, and this service organization can be a number of companies common resources. Why should the appliance do such a hard work to please?

Zhao Wei-min: This is the big problem that is bothering many small electric business enterprises. Theoretically speaking, because the "third party" industry does not have too much capital, technology and patent threshold, belong to the full competition, it is impossible to produce a single monopoly, of course, there is no "shop bullying" possible. But if you are not a strong power of the electricity business, not third-party service enterprises of the main customers? The situation is very bad. And it is out of the third party service market is not comfortable with the current situation, we tend to think: even with the third-party service companies, but also to spend enough strength to put it under our business framework and business philosophy, this is not the general small electrical appliances Enterprises dare to face the challenges.

Economic leader: Electric business enterprise is a typical "spindle type" Enterprise: One Test is the bargaining power of the upstream suppliers based on their size and strength, which is related to the product's underlying costs and future profits, and to its service level, which is related to the enterprise's ability to achieve profitability and sustained growth. These two are an organic whole, which may be mutually constrained or mutually reinforcing.

Zhao Wei-min: The crux of many of the problems of small electric business enterprises is here. In order to create such a "spindle-type" structure, to do addition is any electrical appliance business start-up stage must do the basic skills. Take 500 city as an example, the line at the beginning of the 60 cities nationwide coverage, the goal is to achieve in 3 years the National 500 cities in the city services. To this end, we have four business platforms in the country, responsible for the national regional business management and market maintenance, and set up offices in key cities, dedicated full-time, respectively, to serve suppliers and consumers.