Zong Ning: The development trend of the vertical electric quotient (quick way lecture record)

First of all I have a few clear concepts.

The vertical electric quotient is opposite with the General Electric Company is from the business class to differentiate the electric quotient, http://www.aliyun.com/zixun/aggregation/10843.html "the > Platform Electric quotient is and the self (to be) The electric dealer opposite is from the business model distinguishes the electric quotient, The two distinguishing ways are the permutations and combinations. In other words, there is a platform for both the vertical and the integrated electric dealers, and there are proprietary.

In this, the vertical electric quotient (business) of the trend is more obvious, many are an industry's traditional leading into the electricity business, the direct deep excavation of the industry to become a vertical electric business. And a lot of small proprietary (consumer) to enter the market also often from the vertical, and the platform class of the vertical electricity quotient is less, most of the industry portal transformation of the electricity quotient.

From the development point of view, the vertical electric business like the comprehensive development and platform-type development has become a trend, including Jingdong and when, from their respective fields first changed the synthesis, and then changed the platform, to attract businessmen settled. The trend is quite obvious and the reason is simple, here are the two key issues that E-commerce solves.

One of these two questions is a filter, a long tail. A description of the vertical electric quotient of the present, a description of the vertical electric quotient of the future.

The core problem that the vertical electric trader solves is the screening question, "screening" These two words, I think is a core problem of modern commerce. The so-called "screening" problem is that in the information explosion today, can effectively simplify the way people get what they want. For example, search engines, navigation stations, the App Store, and many other business models are based on the provision of screening this service. And the advantage of vertical station is that in an industry, this is the most comprehensive and the most precise, many topics or promotions are targeted, can facilitate targeted customers to better choice. In fact, is the concept of Taobao class purpose. The advantage of this concept is that the customer is highly targeted, relatively high conversion rate, and the shortcomings are equally obvious. That is the loss of the biggest advantage of the electricity quotient, long tail. Because the professional customer's market is limited, the growth bottleneck is also obvious.

The long tail is one of the core theoretical foundations of the electric business that I think, the biggest difference between the electric business and the traditional commerce, except that tax evasion is not invoiced (many companies also open invoices) is not the different operating costs and channels, but the long tail of the concept of the difference. The big supermarket, the number of goods to hold and access to the number of users is also limited, and the electronic business can be through the Internet this tool, the expansion of the product category to infinity, the number of people can also achieve unlimited, so through the long tail theory, to obtain benefits, more importantly, can also bring related sales. For example, Taobao, now basically is the market can not find things, Taobao will certainly be able to find.

So the vertical electric dealer finally for long tail, will certainly expand the category, even increase the cooperation merchant, through the third party to increase the flow. This is one of the only way for vertical electric operators, it can be said that the development trend of vertical electric business. You say if you don't, can you? Can pianan a corner, just keep their own vertical enjoyment? Personally find it very difficult, because the current electrical business capital taste is very strong, but the commercial flavor is indifferent, you cultivate the vertical market, will certainly be big guy fancy, as if Jingdong a book, it greatly affected when the profitability rate. However, the risk of vertical integration is also very large, such as every guest to increase the category to do daily necessities, the final inventory unwieldy, funds tight, almost collapse the same. Comprehensive operation is bound to affect their own brand positioning, a little careless, it is likely to lose all the game.

Therefore, the vertical electric quotient does not turn the synthesis is waits for the death, turns the synthesis, also may step big to pull to the egg, therefore, the vertical electric business transformation road is particularly difficult. From the current situation, the basic structure of the electrical business has been set, in addition to social services, there are a number of group buy class, comment on the sharing category, the traditional comprehensive business competition, no form of unification, vertical space has not been too big, because in the logistics and distribution and other hard strength, Beijing-east and so has been leading too far.

Some non-standard products, such as food original creative works, there are some vertical opportunities, but at present, the possibility of a miracle has been more and more small, the market pattern has been divided into several large companies, some small vertical stations may also have their own market and loyal customers, but the rapid development of space has been squeezed out. If there is no good profitability, and financial strength, it is difficult to get better, for these sites based on profitability than financing expansion is more important.

By the way, I'd like to remind you of all the electricity dealers ' problems. Taobao now has a strong technical trend, optimize SEO tools is the mainstream application, and for the website has a similar trend, there is a strong misunderstanding, these methods are based on a purchase of conversion rate above, we all feel that a purchase is decisive. This approach is particularly similar to the large supermarkets in China after the opening of the car to shuttle consumers. But this way once the promotion of the stop, without the flow, there will be a large-scale decline in performance and operating costs can not be reduced, this is the rapid electricity business collapse of the important reason. Therefore, the user's core is based on two times purchase rate, which involves a number of positioning, strategy and brand things, relatively virtual, not as effective as the promotion of conversion rate fast, but this is the key to survival. Traditional business is the most important thing is the old customers, repeat guests, because these people supply not only profits, but stable profits. The word "stability" is the highest pursuit of finance, and rapid expansion, looks very beautiful, but like Duckweed no foundation. Therefore, it is also recommended that the vertical electrical business in the development of the time, to note the importance of this issue.