Rapid Development Of E-Commerce: Dream Of Capital Adequacy And Fierce Competition

stay

After 10 years of cultivation and the popularity of the Internet, consumers' online shopping behavior has been completed. Online shopping is not only a kind of shopping.

As Fang Xingdong, a senior Internet veteran, said, "the Internet is not only an Internet industry, but a great change in the whole society. It will change and influence all aspects of human communication, entertainment, leisure, business operation, international politics, like printing, telephone and electricity."

From China

E-commerce is booming

In 2011, e-commerce is undoubtedly the most visible diversion of the Internet. After more than 10 years of continuous accumulation, e-commerce has finally begun to usher in a great explosion.

Along with the enthusiastic pursuit of capital, all aspects of e-commerce, whether integrated platform, integrated B2C mall, vertical B2C, network brand, or the traditional brand and retailer, third party payment enterprises, logistics companies, and other enterprises related to the industry chain providing solutions and services for the electricity providers, have invested heavily in the market.

At the same time, over the past 10 years, the category of e-commerce has been constantly expanding. From the initial online sale of books to selling electronic products, even clothing, department stores, and even more subdivided products, it has gradually penetrated into every aspect of people's life needs. Without exaggeration, the vast majority of products and services of people's daily necessities of life can be obtained through e-commerce.

In this process of development, the e-commerce mode has also evolved. The group buying in 2010 is a form of particular concern. Group buying has formed a subversion from B2C to C2B, which has changed the game pattern in the industry chain.

After the baptism of the 1000 regiment war, the pattern of group buying industry gradually became clear.

Capital adequacy and fierce competition

To some extent, the smart life at home depends on the development of electronic commerce, and the cost of building the online economy is not low.

Online shopping is necessary to price "knife", and adopt low price and low discount strategy to impact traditional enterprise's market. Secondly, online shopping accelerates food consumption. Traditional businesses rely on ten years or even decades to accumulate brand, popularity and market share. Online shopping may take only two or three years. Third, compared with traditional enterprise operation, online shopping has much higher requirements for logistics and express delivery. Fast, safe and accurate delivery is related to good customer experience, but at present, domestic logistics and other related supporting construction are far behind the pace of online shopping development, so that more and more e-commerce enterprises begin to list self built Logistics facilities and teams as "compulsory courses". First of all, in order to open the market in the early stage and win the recognition of customers.

In April 2010, the online B2C Jingdong mall announced the latest C round of financing. The amount of financing was $1 billion 500 million, of which 1 billion 100 million US dollars had already arrived. The investors included 6 Russian investors, Digital Sky Technology (DST), Tiger Fund and so on 6 funds and some social celebrities. DST Group invested $500 million.

Jingdong mall's $1 billion 500 million financing is the largest single financing for its company and China's Internet market so far.

Alis Usmanov, a Russian billionaire investor, said in an interview that he invested $500 million in the Jingdong mall and received 5% of the shares, which means that the valuation of Jingdong mall has reached $10 billion.

Looking back at the situation of e-commerce industry around 1999, Ma Yun set up the starting capital of Alibaba empire for 500 thousand yuan, which is hardly worth mentioning in the eyes of many e-commerce companies nowadays.

The group buying website launched in the first half of 2010 announced that its valuation was nearly $1 billion when it was less than one year old. In May this year, following the creation of the largest A financing record of $20 million in the B2C field, vip.com, the domestic famous discount mall, announced officially that it had received a combined investment of 50 million dollars from Sequoia and DCM.

Data from the Qing Ke investment database show that in 2010, there were 14 cases of financing in the field of e-commerce in China, ranging from millions of dollars to tens of millions of dollars.

And since 2011, Jingdong mall, van gesso, pull hand net, good Le buy and other electronic business enterprises have received huge financing, and the scale of single financing is more than 50 million dollars.

But what's interesting is that most e-commerce businesses are not making profits or making big profits.

The reason why most e-commerce companies are slow to make profits is very simple.

When money is smashed, the control of the supply chain should be strengthened, low prices and low discounts should be obtained, money should be used for promotion, advertising in subway, TV and Internet, etc., and money should be used to capture key cities and to fight for rapid expansion in the two or three line area.

And this piece of logistics may be the most burning place for e-commerce enterprises.

China's e - commerce enterprises have invested a lot in logistics and warehousing.

Jingdong mall, van guest, Dangdang, Alibaba, good Le buy and other enterprises have or plan to build their own logistics.

The Jingdong mall, which is famous for its "self built logistics" banner, has always threatened the threshold of e-commerce enterprises in early 2010. CEO, an e-commerce company that is "decent" (with annual sales of more than 20 billion yuan and net profit of more than 500 million yuan), is most conservative and needs 10 years to burn over 1 billion yuan. "Liu Qiangdong,"

Suning Appliance, which officially entered the field of e-commerce last year, also revealed that as of the end of 2010, Suning already had 4 logistics bases and 10 logistics bases under construction.

The company's goal is to build 60 logistics centers between 2013 and 2015.

These scale and magnitude of the campaign is far from unfunded business enterprises can easily participate in.

The fight is obviously more intense, but some people say with laughter, "the competition level of the whole industry is no longer just a matter of selling things online, but upgrading to the enterprise level."

The road to mature e-commerce market

It has been suggested that there are roughly three indicators for judging whether an e-commerce market is mature. First, the proportion of B2C e-commerce is significantly higher than that of C2C; two, the number of goods is increasing and the B2C mall is coexistent with vertical B2C; three, traditional brands and traditional chain retailers can find the proper location in electronic business sales.

For the first item, in the mature e-commerce market, the proportion of B2C e-commerce is significantly higher than that of C2C, for example, the proportion of B2C in the US is 80%, and the ratio in Korea is 60%.

In 2010, the B2C websites of Mcglaughlin and Dangdang were listed successfully, and the market value of Dangdang was over 2 billion US dollars.

Experts predict that B2C will have great potential for growth in the next 5 years. It is expected that the industry will grow at an annual rate of more than 60%, and the total scale is expected to exceed 400 billion yuan in 2013.

If you still hold the impression of three years ago, when buying books and dangling products, 3C products also look at Jingdong and new eggs, then you are out of date.

Nowadays, most shopping needs of netizens can be met on a one-stop basis on these websites, or even more choices. Dangdang also started selling clothes, Jingdong layout book market, Suning, Gome, Lining, UNIQLO stores and other stores seeking Internet access, and even underwear, socks and other commodities have special websites.

It can be said that the vast majority of products and services of people living, living, and living can be obtained through e-commerce.

B2C's pition to integrated business is the result of the interaction of consumers, businesses and markets. Netizens hope to get the convenience of one-stop shopping. Merchants hope to enhance their profitability through scale advantages. The average gross profit margin of China's B2C market is only 10%~15%, and the gross profit margin of 3C products is even less than 5%.

Under such circumstances, only by expanding a broader market and having richer commodity categories will it be possible to survive on the strength of large-scale operation.