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    E-Business Faces 1% To 7% Temptation Investment And Entrepreneurs Quickly Input.

    2010/10/14 9:38:00 51

    Electronic Commerce

    All over China

    Internet

    After ten years of development, many segments of the market have begun to emerge as big players who control the market, so that other potential competitors will be excited. But perhaps there is only one field exception -- e-commerce.


    For example, portals, instant messaging, search engines and many other areas, there are already four major portals, Tencent and Baidu, which dominate the market. Other investors and entrepreneurs can not collide head-on, but can only find "paths".

    But ten years later, e-commerce is still booming. In the eyes of entrepreneurs and investors, the market threshold is like "virtual".


    As a result, there are many e-business outside Dangdang, excellence, Jingdong and Taobao.

    Entrepreneur

    At the moment, the force is especially concentrated in various new B2C fields.


    1 new entrants: bet "

    Community + E-commerce

    "


    "As long as the proportion of online retail sales in China is only one digit, the market is not short of money and new companies."

    Li Guoqing, President of Dangdang joint venture, said that this round of investors wanted the website to expand rapidly with money. China's online retail accounts for only 1% of the total retail sales of the society, which is 4% in the US and 7% in Asia.


    The temptation from 1% to 7% keeps countless investors and entrepreneurs pouring in.

    The most popular concept is the combination of "community + e-commerce" and the development of department stores.


    Excellent network and our network are two examples of new entrants to build communities to integrate e-commerce.

    Taobao founder Sun Tongyu and MSN, former vice president of China, Chen Xiao began to work together to create an excellent network, trying to integrate e-commerce with SNS.


    Chen Xiaoceng put his photos of a villa in Yunnan on the website, so that friends around him could share the urge to go for a trip, which made Chen Xiao realize that the community is a good promotion.

    For example, what kind of kindergarten to send children to, for what kind of car, friends around as long as the good, the user acceptance of the possibility is very high.


    The grand framework of excellent public network is the mode of "happy network + Taobao network".

    The SNS website will be promoted in seven cities such as Beijing and Shanghai. It is hoped that the website will start to take shape at the end of the year.

    Chen Xiao said that the excellent network is not for all groups to provide services, only high-end positioning.


    Chen Xiao positioned the website in 8 million households with a certain spending power in China, including 16 million to 24 million of the higher consumption class. "Finding a user who can spend 100 yuan is actually the same as finding 100 users who spend 1 yuan in terms of user value."

    Chen Xiao said.


    On the basis of building the community, the excellent network will also analyze user behavior based on complex algorithm to identify users, and use this method to establish a more credible way in marketing.

    For example, the link between interpersonal relationships is a strong link between friends who are really friends, and Chen Xiaoyu Sun Tongyu's "profit" mode of "advertising" plus "e-business" is built for the excellent public network.

    I hope to unite this part of high-end "opinion leaders", using friends to recommend and sell, especially luxury goods.


    Based on a similar concept, my friend network wants to build a model of merging large communities with e-commerce.

    "My friend net will invest in 32 vertical information platforms and large-scale interactive communities, including travel, clothing, mother and baby, automobile and other netizens, who can interact with experts, daring people and" opinion leaders "in various fields on the platform.

    Liu Xu, President of my friend network, said that the e-business platform that will be put into operation will cooperate with the network community to integrate the brand products with the platform.


    Under the line, my friend net will also establish an electronic commerce platform which is organically combined with the community and is integrated with the traditional business areas, and plans to build more than 3000 brand franchise stores.


    2 old website Transformation: from community to B2C


    In addition to the new community that I want to build, such as excellent public network and my friend network, the existing community is also pforming into e-commerce content.

    For example, the forum fence, such as home and other content, has begun to set foot in the sales of building materials and pform to B2C.

    Xu Xiangtao, vice president of fence net, said that it had invested about 20000000 yuan in this regard.


    The fence network was established in Shanghai in 2002, initially discussing the Forum on decoration issues, and then began commercial group buying.

    As a "intermediary", the fence net signed contracts with building materials suppliers, offering products to users at a certain discount, thus accumulating millions of users and obtaining nearly $20 million in financing.


    At present, fence nets are deeply involved in B2C e-commerce, and there are a series of processes such as user viewing, on-site measurement, design, distribution, installation and so on.


    Another large community name network is heading for another differentiated e-commerce Road, which is the traditional forum community of famous products shopping guide network.

    In the near future, the famous brand network decided to build a special department store e-commerce B2C platform from the internal independent construction discount network.


    The B2C market in China is mainly based on vertical online shopping centers in various industries. The standardization of commodities is high. The original books, audio-visual videos, excellent IT appliances, Jingdong and new eggs are all breaking through and forming the leading edge with single industry.


    In the view of Zhao Wei, managing director of the discount network co founder, in a highly standardized and channel dominated industry, although it has the advantages of supply, price and suitable for online shopping, it can support the rapid expansion of the website scale, but the price pparency is high, the competition between the online and offline channels is fierce, and the profit margin is low.


    The price of IT household appliances is high (more than 800 yuan), but the gross profit margin is low (around 4%), the cost of pportation and distribution is large, the gross profit margin of books and videos is slightly higher (about 20%), and the distribution cost is low, but the unit price is not high (within 60 yuan), resulting in too low gross profit per unit, which can not balance the overall cost.


    The industry with a good balance between the unit price and gross profit margin is the traditional department store industry.

    This has enough gross margin for the department store B2C, with an average retail gross profit margin of around 30%. The online shopping mall has a price equivalent to the traditional shopping mall: the average annual price is 200~400 yuan / single.


    This enables excellence, Dangdang and Jingdong to set foot in department stores.

    Mei Guoqing, senior vice president of famous product network, said that in 2004, the famous network pioneer team had the experience of using the Internet to guide the brand consumption, and the team accumulated the experience of retail sales and brand and consumer resources. Therefore, focusing on department store B2C will be a natural choice.


    Zhao Wei revealed that the first discounted net will start the first round of financing, giving priority to the RMB venture capital fund.


    3 scale players: looking for M & A targets


    In fact, the biggest threat faced by these new entrants is how to bypass the positive confrontation of the big platform and find the differentiated high margin space.


    "Almost three years' freeze."

    Li Guoqing said that despite the huge space of e-commerce and the endless emergence of new companies, there will be a major online retailer in different fields after the sustained growth in the next three years. There will also be a large cross platform retail platform. Later, the latter will not be rivals such as Dangdang and excellence, because the scale effect will have a very high threshold.


    Dangdang such a large platform company, by virtue of "scale + low price", Li Guoqing said that Dangdang did not need to sell special products, mainly to seize the basic funds, so that other small companies can not have enough margin to survive.


    Dangdang COO Huang Ruo disclosed that Dangdang's goal in 2010 was to strive to make the three main target categories of cosmetics, household products and mother and baby products the leading market share of online retail.

    And weapons are "price wars".


    "Price war is the normal form of online retailing and the most effective weapon to expand the market scale and attract new customers. In the future, we will continue to expand the department store market with low price weapons, and strive to become a comprehensive online shopping platform with the lowest price."

    Huang Ruo said.


    "It will be very difficult for new entrants to compete with a network of tens of thousands of packages running across the country every day."

    Li Guoqing said, and the big e-commerce platform will also buy.

    Dangdang, after financing at the end of the year, would also like to find suitable takeover targets.


    In Li Guoqing's view, there is a lack of niche e-commerce platform at present, but many venture capital desperately give some e-commerce companies "eat chemical fertilizer" instead of studying how to differentiate and make their business unique.

    This situation may be very dangerous in three years.

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