Will the electric dealer's open platform be the lifeline of the electric Dealer's profit?

After joining the open platform Conference of Beijing-east in July 29, Pugo feel the need to write a few related articles, an open platform This topic does have the value of writing, the domestic power of a little bit of the power of the electric business enterprises are doing an open platform; two current industry on the open platform of valuable reports or studies are very few. To this end, Pugo looked at Amazon and ebay for information, and even to experience the service itself has built a Amazon main station sellers account; Meanwhile, Pugo through to some of the industry to consult, to the domestic major electrical business open platform has a basic understanding. Since today, the Puji-she will continue to make a few installments on the open platform of the electricity business; As ever, Mr Putin has developed the style of the nonsense, only to communicate with each other, expecting a knowledgeable person to enlighten.

This is the first of a series of articles on the open platform wars of the General Electric business. Pugo found that, whether foreign or domestic, the open platform is the major electric network of the general adoption of a strategy, based on specialization and the formation of social division of Labor is to promote the theoretical foundation of open strategy. The competition between the platform and the proprietary mode of the electric business field has always existed, the efficiency is the important consideration, and to ensure the effective operation of the open platform, the website traffic volume, warehousing logistics ability, payment tools, technical strength and ecological perfection degree are all important references.

Trend: Open platform is a big way

More and more Internet companies are making platforms, and the Internet companies that make the platform are mostly ambitious, whether they are active or forced. For example Pugo old criticism of the classified information site 58 with the city, although can not provide a comprehensive life services, and provide a service experience is not good, but its self-purchase business "defeat", resolutely to their own "Life Service Platform" label, the introduction of tourism, friends and other Third-party services Another Life service O2O Enterprise American Regiment network released 2015 billion, 2020 trillion target, its future open platform is the trend. And in the near future, the original positioning for the brand of all customers prudential products in their own brand to do rotten, but also decisively to the open platform of the road.

In the world's major electric companies, EBay, Lotte Market is open platform nature, and self-employed Amazon, its development is increasingly dependent on the open platform. From the point of view of turnover (not revenue), nearly 50% of Amazon's US main station is currently trading from marketplaces (open platform), and 40% of Amazon's overall (including international stations) comes from an open platform; Amazon's revenue in 2012 was 61.09 billion U.S. dollars, based on open Platform Commission 10%. , Amazon's 2012 open platform was trading at around 38 billion dollars.

China's domestic major electric companies inside, Taobao Cat 2012 known as a trillion transaction scale, Beijing East 2012 open platform trading volume 12 billion, its 2016-year open platform transactions accounted for the overall proportion will reach 50% of the target, the open platform strategy has been raised to unprecedented status , and the so-called O2O model of Suning will be held in September after the open Platform conference, the future will be exerting an open platform.

Theoretical explanation: Socialized division of labor based on speciality

An open platform is a great way to explain a theory that is based on the professional formation of the social division of labor. Between the two countries will be due to the natural environment and historical reasons to form their own unique advantages, such as the typical industrial and agricultural countries, within the country, the north of China produces wheat, southern rice is also the reason. In the tech-Internet arena, no single company can take over the industry chain, and Apple, for example, tries to control everything from top to bottom, but it is closed and its production relies on sweatshops like Foxconn. And history has shown that open Microsoft (Wintel) has more clout than Apple in the PC era, and now open Android is catching up with closed iOS in every way.

Pull back the field of business, whether it is Consumer-to-consumer, or business-to-business, its industrial chain is very long, internet-born electric business enterprises can not take all the industrial chain, electric business enterprises to build basic technology, good platform operation, or even pay online. But in the logistics field, until now most of Amazon's distribution is by more professional FedEx and UPS responsible for, while in China, the four-pass is weaker, but still more efficient than many proprietary express. For the electric business site, the high standard or half the standard category is less difficult, but in the non-standard long tail category, whether for professional or efficiency considerations, invite knowledgeable brand or agents to settle in is a more appropriate way.

The competition of the model: the open platform and the advantages and disadvantages of self

The open platform does not represent the success of the platform-type electric dealers. In the US, Amazon and ebay's model battles have been held up since the late 90, when ebay, in the early days, was more favored by the capital markets for its lighter model and continued profitability, and Amazon overtook ebay 2006 years later, and by 2011 Amazon's market capitalisation had surpassed twice times that of ebay. 2012, ebay with PayPal and mobile end of the good posture has achieved a sharp rise in revenue and market value. Amazon currently has a market value of $ more than 130 billion, and ebay is close to 70 billion dollars, more bullish than Amazon.

On the domestic side, Taobao and Jingdong have never stopped the war of words, the capital market in the valuation of both sometimes appear dilemma: from the perspective of the model, Jingdong more like Amazon; from the position and layout point of view, Ali is undoubtedly more powerful. Jing Dong CMO Lan Ye This March this year for Jing Dong to make a defense, think the core of commercial competition is cost and efficiency competition, stone back to Su Ning and Ali. About the two who have a "money", the current quarterly net profit of more than 600 million U.S. dollars Ali still loss of the Beijing east occupy a clear advantage, and if from the "future" point of view, there is still uncertainty.

Bai's Wang Jianyue wrote an article titled "Amazon is a good company, but Amazon's model is not optimal," the benefit of Amazon model is to be able to provide consistent quality, can expect delivery time and good after-sales service, the problem is that the cost is too high. Pugo is more bullish on Amazon, as the quality mentioned by Wang Jianyue is very important, and surveys have shown that consumers are far more appraised of Amazon than ebay.

And in terms of cost, Amazon does have a bigger cost than ebay: Amazon will return to a loss for 2013 years, and ebay will no doubt continue to make a profit; Amazon and ebay are not the same size, but Amazon has nearly 100,000 employees and ebay employs around 30,000. From a big social point of view, ebay's own lighter model behind a large number of sellers in support, the same size of the transaction really need less than Amazon. So it can be said that in terms of quality, Amazon is the best, in terms of efficiency, the two to play, the overall view is still Amazon more promising.

Key considerations: The effective functioning of open platforms

The Puji-she has found that many of its web sites want to do open platforms, but apparently many are not. Pugo on the domestic electric business site to do an open platform for an evaluation is: The cat eat meat, Beijing east to drink soup, other gnaw bones. Day Cat (Taobao Mall) from the incubation of Taobao, has been a strong blood transfusion Taobao, in 2011, the establishment of an unparalleled advantage; Beijing East 2012 really exerting the open platform, although late a step, but also grabbed a good position; other platforms such as Dangdang, Amazon China and immediately to exert the force of Suning easy to buy, They will be very difficult to open the platform, the market is now the overall adherence to the 721 pattern.

In addition to the first advantage, an open platform can be a key factor in the rise of the Web site traffic, warehousing and logistics, payment means, technical strength, ecological construction. At present, the cat in addition to warehousing logistics other indicators occupy a clear advantage; Jingdong Warehousing Logistics capacity first, the other indicators are mostly ranked second; Amazon China has a certain warehousing logistics capabilities, technology is also good, comprehensive strength can be ranked third, but the lack of localization results in the actual effect of a large discount. On the major sites of comparative analysis, Pugo in the subsequent articles will be mentioned.

If there is no traffic, no warehousing logistics capacity, without their own means of payment, technical strength and poor, and there is no money, it is the possibility of a good open platform is almost zero. Yes, Pugo's old rival Dangdang is a typical example, once Gome also settled in Dangdang, at that time also hype some; As for the wealthy Tencent and Suning, whether they can make an open platform is temporarily uncertain, but Pugo (popular society) can be sure that, as a successor, they need to spend a few times the cost of Jingdong to achieve the same effect.

[Huang, research director, Internet industry analyst, micro-credit public, "Universal Society" (Micro-signal: Puji-she)]