The Change Of B2C Mode Of Electronic Business Platform

Suning.com and Gome are heading for different directions.

In October 31st, suning.com officially opened its books, which means that it has taken another step towards the development of the whole category.

Unlike suning.com, Gome's CEO Wang Zhiquan has revealed that the company will focus on home appliance e-commerce and will not take the development mode of comprehensive e-commerce.

In the traditional market, Gome and Suning have been competing in a "close to pressing" way. Even in the big decisions such as entering the electricity supplier field, "the US and the Soviet Union" also follow suit.

But in the case of B2C being diversified or household appliances alone, the two giants seem to have huge strategic differences.

As the two "overlord" of the traditional household appliance channel business, Gome and Suning are setting up different development modes in e-commerce business.

Why do we need to "integrate" and "focus"? What do different development paths mean to them?

Gome and Suning parted ways.

"With nearly one hundred domestic publishing houses and more than 300 private publishers, a cooperative relationship has been established. At the end of October, about 600 thousand books have been launched."

Li Bin, general manager of suning.com, told reporters in the daily economic news that he introduced the situation of the book online.

The goal of suning.com is to pform it into a network life platform based on this.

This means that the company is no longer a purely B2C household appliance enterprise, but an integrated shopping platform covering various categories such as household appliances, digital, books, clothing, shoes and hats, watches and clocks, jewelry and so on.

"The on-line channel of the book is the established strategy of suning.com, and the development of the whole category is the development plan of suning.com at the beginning of the year."

Li Bin said that books are the origin of the development of electronic commerce, and a combination of tangible products and intangible products.

With the popularity of the Internet and the rise of e-commerce, China's online book retailing market has been expanding in scale. According to the quarterly monitoring data of China's online retail market released in the second quarter of 2011, according to the data released by Analysys International, the sales of online books increased by 84.5% over the same period last year. The book has the characteristics of highly standardized, large reader base and suitable for network retrieval, so suning.com has entered the book market.

Suning.com's vision for the next 10 years is: the annual compound growth rate is 50%, the sales scale is 300 billion yuan, accounting for 5% of the domestic online shopping market, and the number of registered members is 100 million, covering more than 90% cities in the whole country.

In addition, suning.com will continue to expand its product line, strive to develop into the whole category, and build Suning's network life platform, which will become an important part of intelligent Suning pformation.

Gome is different in logic.

Recently, Wang Zhiquan, CEO, said that the company will focus on the electronic commerce of home appliances, and will not follow the development mode of the comprehensive electronic business. Although its furniture channel has been online, it will be limited to small piece of furniture, and it will not involve other kinds of goods in a short time.

In this regard, Peng Liang, vice president of the company, said in an interview with reporters that the company will build a "family home products" product camp in the future and move out of a professional vertical B2C business.

In addition to household appliances, there are also car supplies, outdoor products and household products.

"These products are centered around modern families - home life.

We will do more articles around home.

With this idea in mind, the first step of the home decoration and building materials channel of the city is the sales of table lamps, toilet, kitchen and bathroom lighting, bedroom ceiling lamps, bathroom supplies, wooden flooring, TV rack, switch, multi-function socket, speed regulator and so on.

Gross profit margin competition

"Compared to household appliances and other products, some other categories have higher profits and longer accounts."

In an interview with the daily economic news reporter, Zhuang Shuai, senior expert of space network president and China Association of electronic commerce, said that the general suppliers of household electrical appliances will be more powerful, resulting in a weak channel of discourse, which may make the growth and revenue of the channel limited in the future.

Zhuang Shuai analysis, taking books as an example, first of all, the gross profit of books is higher than that of household appliances, and the unit price is low, which is easy to generate purchasing behavior. This means that consumers will soon experience the service of suning.com. Secondly, the book stays longer in the process of selecting, thus enhancing the adhesion of the website; third, the account of the backend is relatively long, and the period of general checkout is half a year to one year, which enhances the flow efficiency of enterprise capital.

Li Jincheng, director of operations network, told reporters that the average profit of department stores is 20%-30%, while the profit of household appliances is only 5%-6%. If the luxury cosmetics, shoes and bags are counted in the department stores, the gross profit margin of the former is even higher.

Taking his own luxury group buying website show group network as an example, although he has launched about 300 kinds of department store commodity services every month, the gross margin can still be maintained at around 15%. Even if the gross margin level is fixed, the fixed cost target must be kept at the same level.

The so-called "comparable price" is an important factor in gross margin differences.

The characteristics of electronic products such as household appliances are highly standardized, the price effect is strong, users can easily compare prices between different sellers, so the gross profit margin in this field is very low.

The characteristics of the department store are the low price effect. It is difficult for consumers to find the same clothes in the two businesses. Even if it is the same, it can be said that the work is different, so the gross profit margin is relatively high.

Moreover, the whole category still has huge space for B2C enterprises.

"At present, there is no such enterprise in China as Amazon." that is to say, in the field of electronic commerce, opportunities for all categories still exist.

Zhuang Shuai analysis.

Compared with the sale of offline department stores, the online industry also has many advantages.

To sell shoes, for example, if Suning sales in the physical store, we must open up a region, each district at least two rows of shelves, so that each store needs 200 pairs of shoes, Suning 1000 stores are 200 thousand pairs of shoes, the absolute number is very large, but for consumers, each store 200 pairs will feel very little, there is no room for selection.

And e-commerce is another scene, 200 thousand pairs of shoes can be completely 200 thousand shoes, and even no shoes, orders are directly sent to the manufacturers to deliver.

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Pattern competition

In China's e-commerce market, there seems to be no lack of pattern competition.

Taobao mall and Dangdang's "platform" and "self run" mode have not yet been identified. In the "self run" mode, the strategic logic differences between Suning and Gome's e-commerce website are different from Li Jincheng's view, which is the difference between horizontal and vertical modes, that is, suning.com extends horizontally to the whole department store, while the company extends vertically to household products.

He analyzed that, in fact, it is not only the traditional household appliance chain such as Gome Suning, but also the electronic giant such as Jingdong mall, which started with electronic products B2C, has constantly extended its contacts to books, department stores and luxury goods.

"Jingdong mall luxury site will soon be on-line."

So why do Kun have to work hard in the field of expertise because of the expansion of multi product categories? Peng Liang believes that the reason for concentrating on electronic products is, on the one hand, that the team of KBA is very familiar with and focused on the household electrical appliance industry, and understands the sales chain of household electrical appliances, such as procurement, distribution and after-sale. On the other hand, because of the 48 million financing of Gome, it has a strong supply chain as a guarantee, and it can get a lower cost price than its competitors, and also has the support of Gome in the logistics aftermarket, so it has the strength to continue the price war.

The new generation of online shopping mode has changed this situation. The shopping street under the world clothing shoes and hats net has realized the perfect combination of the physical store and the cheap price of the online shop by using the entity shop and the virtual shop mode. At the same time, it uses the high quality network resources of the world clothing shoes and hats net to attract the largest number of consumer groups, ensuring the daily browsing of shopping streets, and ensuring the maximum benefit of the shops on the shopping streets.

Every shop in the shopping street must have business license, tax registration certificate and organization code certificate. It guarantees the quality of each commodity, the "531" mode of shopping street promotion, five kilometers, three hours, one-stop service, which maximizes customer service and carefully thinks everything for consumers.

Brand nationalization, sales regionalization, resolving a series of problems of the brand national agent, and the after-sale service of the brand entity store, have solved the current chronic disease of online shopping.

Perfect service and convenient logistics will lead to a steady stream of orders. Shopping streets are booming in China. Welcome to the shopping mall with the majority of operators in the physical store. I believe you will be able to get substantial returns.

World clothing shoes and hats website shopping street: http://gwj.sjfzxm.com/ phone: 0351-2522632, customer service QQ:2283749465.

The implication is that Coba is confident that it can "do well" and "make money" around the category of household appliances.

In fact, the whole category looks beautiful, but the challenge will be even more severe.

Li Jincheng said that the platform mode will face more problems such as procurement, sales, logistics distribution, after sales service and so on.

Analysys International analyst Chen Shou sent also told reporters that the threshold of multi category is very high. At present, the main business is mainly based on a single business segment.

Of course, aside from the relationship between profit and category, experts in the industry tend to think that their differences are due to their different positions.

Chen Shousong believes that the specialization of suning.com's whole category and Gome is due to its different positioning at this stage.

Li Jincheng also said Suning intends to develop another business through e-commerce in the original household appliance business, while Gome pays more attention to strengthening its position in the field of home appliances.

Peng Liang believes that these two models have their own strengths and are typical examples of success. But most of the electricity providers are simply following the growth of sales volume. The phenomenon of homogenization of products is serious. They have abandoned the pursuit of differentiation and individuality at the same time of growth. Therefore, no matter what mode they need, they need to take a differentiated approach, keep innovating, and form their own value system. Multi class expansion can not blindly covet big and complete.