2011&Nbsp; Dispute Over The Pattern Of Electricity Suppliers

Relying on the Internet for 24 hours, online stores sell their natural advantages such as no closing, non regional sales, consistent customer experience, natural data mining advantages and cost free parity. They bring brand new marketing paths to brand enterprises, and also bring challenges to brand enterprises. In the face of fierce competition in online shopping, on the one hand, brand enterprises vigorously develop independent online shop system, and on the other hand, they actively cooperate with online retail enterprises.

According to statistics, China's e-commerce market has just passed in 2010.

Traditional enterprises are killing large numbers of people.

In November 2010, Gome announced that it would buy 48 million of the 80% shares of the company and accelerate its entry into the electricity market, breaking through billions of revenue in two years, and the department stores of Yintai group in December 31, 2010.

In March 26, 2010, Jingdong mall CEO Liu Qiangdong, at the Sanya Qing Ke Venture Investment Conference on electronic commerce, said that with low-cost operation capability and Suning, Gome and other 10 years of price war.

Fan Ke President Chen said in an interview with the media, if

Supply chain disputes

According to what Liu Qiangdong said, he could fight the price war with Suning and Gome for ten years.

"Low price" is the impression of many consumers on Jingdong.

Take notebook as an example, its price is generally lower than the market by 500~1000 yuan, and some special items even lower than 2000 yuan.

The Canon EOS 500D suite, which is ranked first in sales in 6 months, is only 4599 yuan sold by Jingdong, which is 1500 yuan lower than the market price.

Gome's chain mode is different from the traditional "shopping mall + franchised store" mode. Inspired by this, Liu Qiangdong affirms that the chain store of IT products is the future direction.

"We need to establish a standardized system, sell products on a large scale, control inventory and supply chain, and then replicate across the country."

As long as the efficiency of online retailing can be raised and the cost down, the new business mode will subvert the old mode: the gross profit of department stores should be maintained at 50%, while WAL-MART can make money only 15%.

"Online retailing has no store rent, water and electricity, display depreciation, nor large sales staff."

Compared to Gome's 11% to 12% fee rate, Jingdong's fee rate is only one digit, and Jingdong's inventory turnover period is 12.6 days, only Gome's 1/5.

Traditional enterprises do not show weakness, Yintai network can be broken online for 82 days to break the 10000 single, one of the important reasons is that the strong source of goods, Yintai group as the largest department store mall group, with many domestic and international brands have deep cooperation, compared with pure e-commerce company, has a congenital source of superiority.

As early as last December 14th, when Jingdong Dangdang Book War, Suning Gome also put pressure on suppliers of household electrical appliance enterprises, refused to supply to Jingdong.

Conversely, for Suning Gome, these traditional retail giants have an inherent supply advantage, and Suning and Gome distributed hundreds of stores and storage centers and distribution teams in hundreds of cities across the country, which can directly solve the problem of warehousing and logistics restriction in the growth of e-commerce.

Brand competition

Recently, CEO, a guest of all sincerity, responded to the topic of "customers or acquisition of LV".

Chen said that customers buy LV as a joke, but when customers have money and leisure, they will definitely consider it.

Van customer's operating income in 2010 was 2 billion yuan, while only 600 million yuan a year ago, and it is expected to exceed 8 billion of revenue in 2011.

In the electronic business circle, Chen is known as a "cultural businessman". With that cultural atmosphere, he creates the marketing miracle of all objects and customers, and it is also the redefinition and dominance of customers for clothing brand.

China is a big country in the world garment industry, but it is not a big country of clothing brand. Compared with the revenue of GAP145 billion dollars and 12 billion 500 million dollars of UNIQLO's revenue, domestic garment enterprises have no voice in the world. Will customers be the first one? "Buying LV and buying CONVERSE for 50 yuan" will continue to challenge the nerves of traditional business people.

Is it true that it does not know the brand in old age? If you really do not understand it, there will probably be no object, nor will you invite Han Han and Wang Luodan to be the spokesmen of brand image.

Behind the influence of brand is huge advertising influence, greatly improving the conversion rate of direct promotional advertising, and user recognition.

In fact, the domestic brand electric business is not a brand in the real sense, not a public brand.

In traditional enterprises, brands do have natural advantages.

In November 11, 2010, double eleven Taobao promotions, Taobao mall double festival half off, creating a daily trading volume of 936 million yuan myth; 2 shops over 20 million; 11 stores over ten million; 20 shops over 5 million, in addition to two are Amoy brands, others are traditional brand enterprises, this is the brand influence of the classic brand.

Yintai online has broken through 10000 orders in 82 days, and the conversion rate is as high as 4%. The main reason is Yintai's reputation value, which has quickly gained the trust of users.

With the rise of van guest, thousands of brand clothing enterprises in China are eyeing the e-commerce.

Jinjiang is known as the "brand capital". There are 107 well-known brands in a county-level city. The Jinjiang sports brand has invested more than 500 million yuan in CCTV advertising a year, and the sports channel has once been called the "Jinjiang channel".

As of June 2010, there were 29 listed companies in Jinjiang, with abundant capital strength and brand strength.

Recently, seven wolves disclosed that they had acquired a luxury e-business company in Hangzhou.

From the perspective of brand influence, the vast majority of e-commerce companies are far less than traditional enterprises, such as Suning, Gome, Metersbonwe, Anta, Wumart and so on.

How can traditional enterprises make use of their brand advantages, and whether pure electric providers will make efforts to brand?

Technological controversy

At present, Jingdong has more than 8000 employees, more than 7000 customers, and there are more than 3000 employees in Shanghai 1 shop, more than 1000 people in Qijia network. E-commerce reflects the characteristics of labor-intensive enterprises, rather than the light company image that we all imagine. Besides warehousing and logistics personnel, the major difference is in technical personnel.

"It is estimated that suning.com's sales will reach 8 billion yuan this year, an increase of 400% over the same period last year."

Sun Weimin, vice chairman of Suning Appliance, said that e-commerce will be the focus of this year's development of Suning Appliance, and suning.com will also be adjusted to an independent operation system controlled by listed companies. It will set up an independent 6000 person e-commerce team, including 500 people in charge of business, 500 technology, 4000 logistics and 1000 call centers.

{page_break}

Can the number of people solve the problem? The great advantage of e-commerce lies in analyzing the background data, tracking the needs of users, and providing personalized recommendation to enhance sales.

Electronic commerce is an industry that needs time to accumulate. Because of the accumulation of knowledge, e-commerce is a new system.

Logistics, R & D and other systems that have just been mentioned have no ready way to draw lessons from.

In addition, R & D investment and logistics investment is very high.

Jingdong will spend more than 1300 R & D personnel nearly 3 hundred million this year, plus 4 hundred million of bandwidth, server and R & D will be able to protect Jingdong's growth in 2011.

Although e-commerce is the essence of e-commerce, there is no accumulation of electrons, which will greatly reduce the mode of e-commerce.

Obviously, in this regard, pure electric providers have more powerful experience, while traditional enterprises need more input.

Especially in the contention of senior business talents, it will be more eye-catching.

Competition for talents

In December 31, 2010, Yintai network broke through 10 thousand orders in 82 days on line. Suning Appliance also invested huge sums of money in the field of electronic commerce. During the year, it wanted to recruit 6000 independent operation teams independently and create Suning Appliance online mall to face the impact and challenges brought by Jingdong.

In the face of the rapid growth of the industry, talents, especially high-end managers, are few. Where do Suning 6000 people come from?

Qijia network announced its strategic investment in Baidu in December 6, 2010.

It is understood that Qijia network in 2011 on the basis of the current number more than 1000 employees, will be large-scale recruitment of 2000 people.

Another leading electricity supplier in Shanghai, 1, will also expand its enrollment of 3000 people, of whom 400 will need to expand to 600.

In 2011, the expansion of recruitment plan for all customers will be more radical. It will expand to 20000 from 5000 at the end of 2010, of which 10000 will be warehousing and logistics.

Traditional enterprises are often unable to solve their problems in the mentality. If there is no excellent senior electricity supplier with rich experience in operation, it is hard to start projects, and even more difficult to create new opportunities.

Wang Zhiquan, CEO, said in a forum: "the mature talents with more than 3 years of management experience in the industry will not be more than 5000 people, not even 3000."

Under the explosive growth of the industry, the problem of shortage of talents in the industry is imminent.

Since 2010, Hisense, TCL, intime department stores, Hangzhou Tower, Foxconn and other traditional manufacturing enterprises, including WAL-MART, Adidas, GAP and other multinational enterprises have entered the domestic e-commerce market.

The problem of e-business talent has become one of the most important bottlenecks in the smooth development of the e-commerce industry.

How to solve the problem of talent introduction, personnel training and talent management is a major problem facing many fast growing electricity providers.