Vertical B2C E-Commerce: Collectively Rush To Department Stores?

For some time, consumer B2C The website is more lively.

First, the Jingdong mall acquired the Millennium search network, followed by fans signing young writer Han Han and the latest popular idol Wang Luodan to endorse men's and women's wear respectively. Mcglaughlin was not idle. Recently, his e-commerce website has launched the men's clothing channel.

Previously, it was a female online shopping platform dominated by women's wear. Now the product line of wheat net has already covered 7 major categories: Women's clothing, household products, beauty care, children's clothing, mother and baby, underwear, shoes and accessories, etc. each category is constantly expanding product categories.

Therefore, Mcglaughlin believes that the wheat net is built more. brand The strategy of "fashion department platform" is becoming clearer.

Impulse from vertical to department stores

In fact, it is nothing more than wheat net.

Jingdong mall is also a typical example.

Since 2004, he has set foot in foot. Electronic Commerce The Jingdong mall has long been the image of selling "low price 3C products".

In 2008, Jingdong's intention of "department store" started to show. In October, it launched the department store channel.

In March of this year, Jingdong mall announced the acquisition of the Millennium search network. People who are accustomed to buying household appliances in Jingdong may be puzzled. "Why do we sell home appliances to buy a clothes seller"?

In February 2009, the SK group announced that it plans to invest 500 million yuan in China to build the Millennium search network and enter the B2C field. Thousands of search nets mainly sell clothes, shoes and hat products, such as European and American famous brands and Korean pop brands through purchasing, and so on. Its CEO Guo Hongchi said in an interview with the newspaper last year that the clothing brand of "thousand search net" is "nearly 1000". From the current management website, its products also include cosmetics, mother and baby and household products.

Fang Yingzhi, Assistant Research Fellow of the China Electronic Commerce Research Center, believes that after the acquisition of Jingdong, the transformation of department stores is an indisputable fact.

Taking a look at the domestic B2C e-commerce websites in the vertical field, such as Dangdang, excellence and so on, they are more and more like department stores.

These websites used to be typical of vertical and professional routes.

The current product line extended to women's wear, shoes, children's wear, accessories and household products. Although its insiders say that "insist on the vertical market of clothing online shopping", men's and women's clothing will account for 60% of sales, but as early as the end of 2008, the founder of van guest told reporters that "everything is possible" for anyone to sell.

Behind the "department store" route

Vertical, professional B2C has been very popular for a long time, especially e-commerce. Now online, you can buy products from various retail and consumer fields such as vegetables, shirts, IT, diamonds and even building materials.

Taking maternal and infant products as an example, Shang Chao and department stores are still the main selling channels for major products such as milk powder and diapers. However, the rapid expansion of sales performance of Li Jia Bao and Yue you is regarded as the reason why the mother and infant products should be separated from business and department stores and develop vertically.

As the B2C e-commerce of vertical 3C products, the rise of Jingdong has shocked the Suning and Gome of traditional retail stores.

Under shock, Suning and Gome also announced "touches".

In fact, the rise of Suning and Gome was based on a vertical and professional route to kick the big supermarkets and department stores out of the main track of home appliances sales.

Now, when they are still alarmed at the "mischievous trick" of the "bad boy" Jingdong mall, Jingdong has already had new "ghosts", that is, the "department store" route.

Is it the advance of consciousness or the profit pressure caused by the low profit of 3C products as some people say?

In the view of Cao Fei, an analyst at Analysys International, Jingdong will increase the department store product line, which will increase its pressure on cost and operation in the short term. But if we increase some products with higher gross margin, these products may bring better profits than 3C products after sales volume.

But it does not exclude greater attempts.

As Cao Fei said, in China, after all, there is not a comprehensive B2C e-commerce enterprise like Amazon, and from the needs of consumers, they need the Chinese version of Amazon.

Today Amazon also cut through the vertical field of books.

This is an inspiration and opportunity for every B2C enterprise in the vertical category. Perhaps this is also the reason why many vertical B2C companies are moving towards "department stores".

But not everyone who has a dream can become president.

"Comprehensive B2C is needed, but it doesn't need much, because with direct competition, it can not only lead to price killing, but also have higher requirements for service capabilities and so on." Cao Fei thinks.

One of the charms of business lies in the one wave after another mode of subversion and overtaking.

Since e-commerce is going to be a "department store" industry, is it possible for Carrefour, WAL-MART or other large supermarkets and department stores to come back? After all, they have many years of experience in brand and retail management. At the same time, opening an online sales platform is not an option.

Public reports show that in 2010, WAL-MART announced "touches the net". As early as a few years ago, Carrefour had already tried the "online shopping mall" several times.

But after running, Carrefour only retained e-commerce in two international metropolises of Beijing and Shanghai, and all the other cities stopped.

According to media reports, Chen Bo, director of public relations in Carrefour China, believes that "online shopping is a trend of future development", but for Carrefour at this stage, "online shopping is not the priority development target", Carrefour will still focus on the development of physical stores.

Cao Fei believes that the operation experience of electronic commerce is the advantage that these vertical B2C enterprises have accumulated over the years.