B2C Enters The Burning Peak Of &Nbsp; Venture Capital Has A Big Hand.

Moderator: Zhou Zhou

Choir members:

Cao Yitang: general manager of LH group, who served as the head of Metersbonwe strategy.

Gong Wenxiang: Founder partner and CEO of Shenzhen thirty to fifty e-commerce company

Chen Xuejun: China apparel net CEO

He Weijun: Chairman of Zhi Shang (China) enterprise group, chief consultant of Di Bai Wei consulting.

Guo Min: famous retail real war expert, Luo Hao chief operating officer.

Zhou Cheng hung: Deputy Director, Center for strategic studies, Chinese Academy of Sciences

VC's eyes are always locked in the most profitable areas.

At present,

B2C industry is more active market segments, with their vigorous vitality and limitless market potential, so that one after another of venture capital enterprises to "dump".

Chinese

Not only the total volume of online shopping reached a new peak last year, but also the new pattern of B2C e-commerce in China in 2009.

From the perspective of market share, the top ranking manufacturers are Jingdong mall, Amazon, Dangdang, Vancl and so on.

In 2008, Jingdong mall, which has surpassed Amazon and Dangdang, still occupies the first place in China's e-commerce B2C in 2009, and the gap is further widening.

In addition, Vancl entered the fast growth stage in 2009, and it is near the forefront of B2C online retail market, ranking fourth.

At the same time, the vertical B2C platform has developed, and the market share has gradually expanded in the areas of mother and infant, clothing and apparel.

In 2009, the energy of the e-commerce boom was completely released in 2010.

2010B2C enterprises concentrate their efforts on Financing

There were 95 investment events in China's e-commerce B2C industry and related fields in 2006~2009, involving 44 enterprises, with an investment amounting to US $604 million.

In the first half of this year, there were 27 investments in China's B2C industry, of which 20 of the total investment amounted to US $287 million, which is close to half of the total investment amount in 4 years in 2006~2009.

In January, it arrived at $75 million, and the remaining 75 million dollars arrived at the end of the year. Baidu Lotte also announced in January that the two sides will invest $50 million in the next 3 years to create B2B2C's online shopping mall, happy days. In June, red child CEO revealed from micro-blog that the fourth child financing of the red child was basically implemented, and the amount of financing was between 50 million ~1 billion dollars. According to the authoritative sources of the electricity supplier, VANCL had completed financing in mid 2010, and its financing scale was about 50 million dollars. In September, Ye Haifeng, President of wheat packaging, announced that it had obtained an investment of 30 million dollars from DCM and Lenovo venture capital. Among the more typical investment projects, Jingdong mall announced $150 million in financing in January this year.

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In addition to the big guy sellers in the B2C industry, such as lemon green tea, aka, rip and silk, and so on, those sellers who grew up on Taobao online grew up, and already had their own brands, designers, corporate culture and factories.

The meaning of "Amoy brand" is much more than that of the market for the affirmation of the network sales mode. It is also the birth of a new market structure.

Venture capital's keen antennae have long been sensitive to business opportunities. The network original women's clothing brand Fontainebleau has only attracted more than 8 million yuan investment in the case of only 3 months of opening.

This is undoubtedly a great inspiration for entrepreneurs who want to enter the e-commerce industry.

Nowadays, Taobao is increasing more and more super stores with tens of millions of revenue or even more than 100 million yuan. It has become the size of large and medium-sized enterprises. Although sales volume is not large compared with that of super large B2C enterprises such as VANCL and wheat bags, their business models and profitability and development potential will lead to the beginning of the era of Internet shops' venture capital.

"Residential economy" heating and wind Trading

With the growing habit of users' online shopping habits, the phenomenon of "home economy" has been highlighted day by day, which has played a positive role in promoting the development of e-commerce market.

Mobile mouse, 70 percent off buy genuine brand leather bag, 50 percent off buy brand clothing, stay at home, waiting for express delivery door-to-door......

Due to the shrinking global retail market caused by the financial crisis, many people turn their attention from department stores to cost-effective online shops for the sake of cost saving.

This "home life" is no longer an example. "House" has become a fashionable lifestyle of young people nowadays.

"We house, we also pull GDP", although staying indoors, "otaku" is still tied to economic changes, the outdoor consumption is pferred to "home", so the "home economy" has been growing rapidly.

China Internet Network Information Center (CNNIC) has released the twenty-sixth statistical report on the development of Internet in China. The number of Internet users in China has reached 420 million, and the Internet penetration rate has climbed to 31.8%.

The sustained and rapid growth of Internet users provides a strong foundation for the development of the "home economy".

Further information shows that among the 420 million Internet users, the number of online shopping users is 142 million, and this year's online shopping may reach 500 billion yuan.

All these achievements show the strong vitality and potential of the e-commerce industry.

This undoubtedly has many people sniffing business opportunities. The risk investment that has always been sensitive to the smell will not be ignored, and the B2C online shopping mall will be displayed.

The "home economy" has the characteristics of low cost, high efficiency and younger participants. It will become a relatively independent business mode in a certain period of time.

"House economy" follows the "crisis", but it will not go with the "crisis", including the third party payment, express delivery business and other related industries will grow and grow in this opportunity.

In terms of the investment direction of venture capital market, the emergence of the concept of "home economy" in the short term has made the industry closely related to otaku, such as e-commerce, online games and so on, and the traditional industry profits behind it are more accessible.

What does B2C enterprise attract VC?

A venture capital company that has already trained a pair of "fire gold gold" has always determined the investment value according to the function of the project's increment potential, investment cost and risk coefficient.

The value added potential of investment projects should be judged according to market potential, business mode and management team. The cost of investment is not self-evident, and the risk coefficient is determined mainly by the stage of the project itself, the investment risk preference of the investment company and the investment portfolio.

The evaluation of B2C website is mainly based on the following core data.

The first is the website conversion rate.

The average conversion rate of e-commerce websites in China is 1/1000, that is, 1000 people visit websites every day. The rate of conversion from shopping cart to actual paction is generally 10%, and the conversion rate is the core of e-commerce website operation.

If the supply chain is not guaranteed, the commodity price has no advantage, and the user will not be attractive, the conversion rate will be very low.

Commodity and supply have the greatest impact on conversion rate, which basically determines the conversion rate of ten thousandths or tens of thousands.

If the supply chain is not effectively solved, the other user experience is done well, and the market promotion is doing well. In the long run, the conversion rate is difficult to improve.

The second is the rate of repeat purchase.

This is also a hard indicator of B2C e-commerce website, that is, within 1 years, the percentage of people who buy products on the website will buy more.

The website may not have many commodities, its sales volume is not big, and the loss is also serious. But as long as the conversion rate is high and the rate of repeat purchase is high, VC's money can come in to expand business, otherwise it will be a drain.

The third is the average order amount.

Increasing the average amount of an order also reflects the value of a website, just like the customer value of a shopping mall reflects the commercial value of a shopping mall.

The fourth is the number of active users.

The number of active users is different from the number of registered users. To some extent, the number of active users reflects the user stickiness, and the main purpose of these regular users is consumption, which is the most valued by VC companies.

Ma Yun Le B2C financing "Crazy"

Zhou Zhou: Recently, the newly released domestic B2C enterprises have gone through 9 months' financing over 300 million US dollars. The data shows that what changes will happen in the retail industry structure?

Cao Yitang: capital is gradually optimistic about the electricity supplier, and the domestic retail structure is gradually becoming virtualized.

Enterprises that do offline marketing often encounter three big retail problems: 1. can not find good shops; 2. shops rent is too expensive, and rising year by year; 3. is kidnapped by shopping malls, forced to open shop or close shop, in disguised form to collect all kinds of expenses.

With more and more export enterprises being sold domestically, the competition of offline shop resources becomes more and more intense. The pattern of domestic retailing is the pattern of game between many brand enterprises and a few shopping malls, and the balance of negotiations is obviously biased towards the latter.

Under such circumstances, the emerging and virtual channel of e-commerce emerges as the times require. The pattern of hedging the retail industry to many to one increases the supply of "shops", so that brand enterprises have more choices and achieve the "market balance" role.

Gong Wenxiang: now the retail industry in China only accounts for less than 3% of the total retail sales of social goods, compared with 10% of the developed countries. The B2C business has exceeded 300 million US dollars in the past 9 months, indicating that the domestic retail pattern is changing, and online retailing will start at a high speed.

Chen Xuejun: the market share of online retailing is growing, and its format is maturing and playing an increasingly important role. It will become one of the most important formats of retail industry.

As early as 2008, the scale of online retailing reached 128 billion yuan, accounting for 1.2% of the total retail sales of the whole society in the year, indicating that online retail has become an independent retail force. In 2010, the total retail sales will reach 500 billion yuan, accounting for nearly 4% of the total retail sales of the whole society in 2010.

In all retail formats, the growth of online retailing is the most rapid, attracting the general attention of capital.

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He Weijun: whether financing channels or financing scale, B2C enterprises still can not shake the status of traditional retail enterprises. Network sales account for only about 2% of the total retail sales of consumer goods, which is the best data proof.

But if we make a longitudinal comparative analysis of the financing of B2C, the total amount of financing of B2C enterprises in the first three quarters of 2010 is almost equal to the sum of the total amount of financing in the past three years. From this we can see that B2C financing has already been a precursor of quantitative breakthrough.

I am not sure that the outbreak of B2C financing is yet to start. The real outbreak may not begin until the second half of next year, and there will be a sustained high 1~2 year.

Guo Min: the rapid development of the Internet has changed the traditional shopping habits. Many white-collar workers in cities are no longer shopping around the mall after noon and evening, but are used to "shopping" on the Internet.

I think the traditional retail industry and B2C enterprises are two different sales channels, they are not completely opposed to the sales channels.

The traditional retail industry and B2C should be interdependent, interpenetrating and mutual pformation, and will exist in the retail industry for a long time.

Zhou Cheng hung: I think this will be the beginning of profit segmentation, and the market will show a trend of change.

The traditional business is B2B2B2C...

From manufacturers to consumers, there are many links to go through, and e-commerce website shortens the process. B2C shortens the short process of industrial chain through e-commerce products from manufacturers to consumers.

However, with the growth of Taobao, there are more and more businesses in it, resulting in the increasing cost of search and the problem of credit mechanism. These are the problems Taobao needs to face and solve.

Zhou Zhou: in November 10th, Taobao world released a new cloud media strategy, which was jointly established by the media industry, investment industry and consulting industry. The investment group has provided financing conditions for more than 300 brands, and what impact do you think this has on the development prospects of Taobao? What is the relationship with the background of B2C financing boom?

Cao Yitang: cloud media strategy is actually a resource sharing and integration strategy.

Whether it is media, investment, consulting and Taobao sellers, there is a natural mission of enterprises to follow their respective business models and look for "business sources" to do business and create value.

The business environment is good, the business risk of entrepreneurs and investors is small, and the resource integration effect has improved the B2C business efficiency and return on investment, which is also the direction pursued by investors. This explains the B2C financing boom.

Gong Wenxiang: it shows that Taobao has begun to focus on and expand the 80% offline people who are not shopping online. Under the absolute leadership of the domestic retail industry, Taobao will penetrate into a wider range of people who have never shoped online, and will accelerate the hot tide and financing boom of the domestic retail industry.

Chen Xuejun: a large number of Amoy brands have sprung up on Taobao. These brands have been born on the Internet, longer than Taobao, and are inexpensive, and have grown up to become famous brands in a short time, creating a miracle of brand creation.

But when these brands have been established and made some progress, they have restricted the development of the brand because of the restrictions of capital and talent.

The financing of the investment group will become a booster for the development and growth of the brand. It will also nurture Taobao and realize the positive interaction and win-win relationship between Taobao and Amoy brands.

At this time, the launch of Amoy brand financing plan is closely related to the B2C financing boom.

The development trend of online retail and Amoy brands has been clear. The risk of investing in brand names has been greatly reduced, while the future revenue is still considerable.

He Weijun: first of all, it will have a greater impact on the brand structure of Taobao. There will be more and more private brands appearing. Secondly, it will lead to the standardized development of Taobao shops towards self perfection, because investors will make them bigger and stronger by joining them. Finally, it will lead to a big reshuffle of shops in Taobao network and form a competition environment for survival of the fittest.

I do not think that the investment organization joining the cloud alliance organization will only have an impact on the development prospects of Taobao, but will affect the e-commerce chain of the entire Alibaba department, and eventually form a network business society with Ma Yun characteristics.

Guo Min: in the future, we will see the PK of Tencent, Baidu and Alibaba.

Under the guidance of the spirit of "cloud media" strategy, "integrating services for the netizens", integrating traditional media and e-commerce, relying on the fast and true consumption data, commodity data and consumption feedback of Taobao online, taking the "sharing new experience of life" as the content objective, guiding domestic consumers to live happily and rationally consume.

In addition to doing the media, Ma wants to do too much, which is also Ma Yun's "online" to continue to promote the territory of the Empire at the same time, perhaps he has set the next imaginary enemy as WAL-MART.

Zhou Chengxiong: This is a very clever move.

Because Taobao's earliest form was C2C, which evolved into B2C. Now Taobao's strength businesses are all enterprises. "Self-employed" is hard to survive in Taobao.

However, when businesses become bigger and become giant enterprises, they may be divorced from Taobao.

However, Taobao knows the trading volume and information of all the businesses, knows which business has great potential for growth, and then brings in capital for its bridging, and then can earn intermediary fees from it. This can lock the big businesses firmly in Taobao, and increase their dependence and loyalty.

Zhou Zhou: why do B2C enterprises choose 2010 of this year to focus on financing?

Cao Yitang: This is about the industrial life cycle.

An industry generally experiences four stages: infancy, growth, maturity and recession.

Before 2008, China's e-commerce industry has not yet gone out of its infancy. Even the leading enterprises in the industry are still spending money on the market, that is, to seize market share through low profit margins. At this time, financing is either unable to meet the financing requirements, or the large-scale financing is not worthwhile at this time.

This round of economic crisis which started in 2007 accelerated the pformation of China's industry, and also "ripened" the Chinese e-commerce industry. By 2010, it has entered the "growth period" of the industry. At that time, some high quality e-commerce enterprises have expanded to a certain scale economic turning point, the profit rate has started to rise, and the financing is appropriate.

Gong Wenxiang: the industry generally thinks that 2008 is the starting point of the domestic retail industry. After 2 to 3 years of development, after accumulating, it started a round of financing.

But this is definitely not a period of vigorous outbreak. I visited hundreds of traditional business e-commerce directors. They are just beginning to start e-commerce. When the traditional enterprises really exert their efforts in e-commerce, the next 2 to 3 years will be the real financing period.

Chen Xuejun: throughout the development of B2C, a small climax of B2C was formed by Dangdang and excellent network at the beginning of this century.

After the cold wave of the Internet, it did not begin to resume growth until 2005. And after 2007, the category of online retailing extends to non standardized products such as clothing, cosmetics, mother and infant.

Observing the B2C market after 2007, 2007~2008 is the foundation stage, the stage of network retail education and popularization. In 2009, the whole network retailing has been very mature. Both traditional enterprises and netizens have accepted online retailing.

In particular, traditional enterprises have changed their attitude towards online retailing from resistance, suspicion and wait-and-see to strong support and active participation.

This lays a solid foundation for the rapid development of B2C.

In 2010, B2C enterprises solved the problems of suppliers and suppliers, and they could make efforts to expand the market, enhance market share, and support a large amount of funds to raise funds.

He Weijun: I think it's just a prelude to the climax of B2C enterprise financing, and it's not a mature opportunity to concentrate.

Guo Min: with the October 27th, Mcglaughlin succeeded in IPO on NASDAQ.

Data show that the growth rate of e-commerce B2C market will reach 150% in 2010, and the scale will increase to 56 billion yuan. By 2012, the market scale will expand to 155 billion yuan, and the market prospect is broad.

Faced with such a huge market share, many domestic B2C websites are bound to be favored by Wall Street analysts.

Chinese B2C enterprises will enter the hot period of capital growth. More and more investors and traditional giants are eyeing. B2C enterprises are being driven by multi party capital. The two level differentiation is increasingly prominent, and the market will be more competitive in the future.

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Zhou Cheng hung: on the one hand, Taobao has been very mature after years of development. It has brought together a lot of powerful businesses. On the other hand, the gem has high valuation this year, which is conducive to the listing and financing of enterprises. At the same cost, it can melt more money. At the same time, venture capital is also profitable.