Zong Ning: "Book strategy" in the field of electrical business

Suning will be the end of this month in their E-commerce platform Suning easy to buy, open an easy to buy book channel, one-time online book category will reach about 600,000 volumes, the number is second only to the book Electric business Dangdang.

Consumers are familiar with the electrical vendors Suning, is a strong kill into the book network shopping industry.

Su Ning easy to buy general manager Li bin to the media, easy to buy books short-term goal is to enter the book sales of the first three websites, and at the end of next year to achieve the status of the book Network market leader.

At present, every guest also accept subscribe to the only one authorized biography of Steve Jobs biography, has tried to enter the book industry momentum. Industry analysis, this may be for Van November IPO to prepare.

And in the two before, the Beijing-east to enter the book industry has also caused Xuan is big wave, just a few months, on the formation and when, excellent Amazon pillars potential, also make finished publishing house miserable. Liu's ambitious announcement: "I've cut off the long tail." ”

The long tail theory of book strategy

Baidu Encyclopedia explains "The Long tail theory is a new theory of the rise of the network age, proposed by American Anderson." The long tail theory holds that as a result of cost and efficiency factors, when the distribution of goods in the display of venues and channels is broad enough, the cost of production has plummeted so that individuals can produce, and the cost of the sale of goods dramatically reduced, almost any previously seemingly low demand for products, as long as the sale, will be bought. These demand and the low volume of products occupy a common market share, can be compared with the market share of mainstream products, or even greater. ”

This concept was originally used to describe Amazon's business model, a theory that contradicts the "8020 theory" of traditional business theory. The traditional "8020 theory" that 80% of the sales by 20% of customers to bring, therefore, this 20% of the VIP customers are the most business should be focused on and maintenance. And the long tail theory that in the lower average cost of the electricity quotient area, as long as the product quantity enough, so even if these units of sales are limited, but the total sales volume is huge, which is the biggest difference between e-commerce and traditional business.

In other words, traditional business, because of the limitations of the site, in terms of quantity and scale, there are objective restrictions, therefore, to seize the major customers is the main way to improve their business, and E-commerce is to solve the scale of the problem, no matter how many kinds of goods, can be put together, does not bring cost promotion, so the long tail theory, also was born.

Another aspect is that books and audio-visual products are very standardized product and a large variety of books and audio-visual products are unique. Standardization brings the fixed price, the discount is easy to quantify, and the kind of huge to the long tail brought possible, any product will have his demand object, even if the object is very few, and this total amount of huge, bring a "long tail".

This theory is a direct sign of Amazon's success, and for China's electric business, the theory is more than just sales.

Taobao q currency Brush credit tactics

On Taobao, you can buy a discount of Q coins, the price is often 60 percent or 50 percent of the market price, but the seller has a strange request, that is only sell you one at a time, each person can only buy six. If you encounter such a seller, then obviously, is a brush reputable sellers.

The reason why this brush credibility, mainly because the value of the Q currency is more recognized and easy to trade, and Taobao also stipulates that each buyer, each month can provide a trading seller six reputation point, so Taobao eager to upgrade the reputation of the store, will use this, one yuan buy, 60 percent sell loss for prestige tactics.

Of course, such tactics apply to Taobao store, but also the natural application of the electric business big shop. And the Internet in foreign countries to provide value at the core of different, China's Internet to provide the concept of the core. Whether this concept is accepted depends on the core user rather than whether it is profitable. This is the current network of almost all the characteristics of the website is not profitable or even has been a loss, but has been constantly hit users, with users and water to value. From this angle, do the book is far more than do home appliances have advantages, after all, there is a long tail theory for support. And the type of home appliances is limited, the heavy assets of the home appliance is not to do long tail, then in the number of customers, there is a big disadvantage.

Therefore, Jing Dong, a large influx of books, Suning also plans to enter books. Although Suning general manager assistant Li Li said: "Price war may be unavoidable, but suning will take a differentiated strategy." "But everyone knows, this will be a money to buy users to buy traffic, the so-called difference, nothing more than a few fold, or how to send the problem."

Therefore, we are pleased to see that the Chinese book industry is about to rise, to pay for its not intellectuals, but electric businessmen, from this point of view, many publishing people see the dawn is also facing a huge transition pressure. Because, the traditional mode of publishing house has been broken, the bookseller has begun to buy books from Jingdong 40 percent, 60 percent returned to the publishing house. And the meaning of the dawn is, under the power of the powerful subsidy, the genuine book has been sold more cheaply than pirated, which brought huge sales, so that almost dead entity genuine books have been a new opportunity to create a disguised cultural industry prosperity.

And where customers want to enter the book, it is too many clients, a dress has a number of sizes, can book, 32 Open is 32 open, in the self-built logistics system support, it has the same advantages.

Therefore, the electricity business to enter the book situation, will become more and more common, and by the book brings the flow of the same time, if can incidentally buy a few pieces of electrical appliances, I am afraid it is suning easy to buy hit wishful thinking. According to statistics, the purchase industry to develop a customer cost has been from the initial 5-10 yuan, surging to the current 90 yuan. If it's calculated at this price, 10 yuan subsidy is enough to allow ordinary books in the original traditional discount to reach 30 percent of the price, and if the subsidy of 90 yuan, is almost a book, this kind of sale, is really inexpensive, more than advertising to the people bring more benefits. The promotion of cultural industry, but also the benefit of the benefit of the benefit of the whole, from this point of view, the book industry may be a more potential than the electricity business industry.

The key to the success of the book Strategy

Making books is like doing q coins, there is no difference between style and quality, can be used to compare the price and logistics distribution, so that the final foothold of the electric business competition is the price and logistics distribution, the major electrical companies have a deep understanding of this, since the establishment of the logistics system has become the standard configuration of the current.

Suning deep pockets, the strength of the price should be very advantageous, and in the distribution, Suning's biggest advantage is a number of outlets, a little transformation, you can provide convenient logistics and distribution, and the distribution of the strength and spread of the breadth, may still be more than the Beijing-East currently focus on the first-tier city logistics system construction. However, the breadth is too high to bring a system of architecture and management issues, whether to send and receive freely, is the biggest problem of suning.

And for every customer, the book strategy is not really appropriate, because every customer now target customers and this batch of customers to buy books is highly coincident, bringing the number of customers is afraid limited. Every customer is I think it can be in the book profit to do a little consideration of the electricity quotient, bundling the road, seems to be better.

Therefore, the power of the book strategy may be more suitable for those who have higher unit prices of electrical appliances, and when the current apparent weakness, but also because of the customer potential, there is a clear bottleneck. After all, Jingdong and suning only pursue the conversion rate of customers can achieve a substantial turnover, and when the user must be based on the number of users to increase significantly, to bring a significant increase in turnover. So, even when you start out as a book, you may be more professional and more diverse. But at present the electronic commerce of the book class, has lost the product sale attribute, but becomes one kind of promotion method the attribute. Simple book electric quotient, with some small commodity value, is far less than books to increase the value of goods high, this point, is when a bottleneck. And this bottleneck, also restricts the excellent Amazon.

Back to the book strategy itself, Suning realize the goal of the three major book dealers, is not a difficult thing, as long as the price is low enough, distribution range is wide enough to squeeze out the superior Amazon or when it is very possible. And the biggest problem is not the first book dealers, but how to make these customers into Suning appliance customers, and once this transformation is effective, then Jingdong will highlight their lack of physical store support of the short board, not to seize the IPO, I am afraid the growth rate will be difficult to satisfactory.

Therefore, the key to the book strategy is not sales, is the conversion rate. Instead of a pure selling book for the purpose of conversion, is bound to be the conversion rate of the electric dealer defeated, because, under this competition system, selling books, it is impossible to make money, can only make money in other areas, and your other areas not high profit margins or conversion rate is not high, then your failure, is sooner or later. The internet seems to have only the top two, it is difficult to have 35. Here, I am also looking forward to the performance of Gome.

The electric dealer after the "book Strategy"

After everyone has entered the "book strategy", What kind of changes will be brought to the electricity dealers? I think the change will be huge. The most concentrated embodiment, is the performance in the traditional enterprise enters the electric Trader's cut-in point. Before many people believe that the traditional enterprises to enter the power of the company's failure probability is very high, because its own advantages and electricity quotient does not match, and can not find effective promotion methods. And now "book strategy" can completely solve the problem of users, the remaining problem is transformation and logistics.

To Suning Gome so covered a wide range, the strength of a very strong traditional businesses, the most terrible is the store coverage, this coverage so that its own logistics system coverage has reached an alarming level, more importantly, the cost is not high, a little transformation, you can immediately cut into the electricity business. and provide the quality of service, I am afraid, and no less than many years in the Beijing-east of the electricity dealers.

Therefore, the final destination of the electrical business or to the landing entity, logistics is only the first step, and the end of the real estate industry must also be a network of industrial unity, who can be the first to achieve the perfect unity, or the number of unknown. However, from the current situation, in addition to the electrical and user understanding, entity enterprises have greater advantages.

Suning "book strategy" of the test water, once successful, will attract more substantial predators, and the next self-built logistics is the key to the run-off. And if Suning "book strategy" failed, then the entity and E-commerce Enterprises may still maintain a relative peace, which also gives the electric business enterprise brought a good time to fall.