How Far Can E-Commerce Go By Playing Capital Games?

"Earrings three pairs, warm treasure one, mask two dozen..."

Miss Lee is a frequent visitor to Taobao mall. She bought nearly 1000 yuan in Taobao mall's "double eleven" Shopping Festival.

In peacetime, she is also a frequent visitor to Jingdong mall and van patrons.

Miss Li is only one of nearly two hundred million online shoppers in China, and is buying nearly 500 billion yuan for online shopping.

Beijing China hope Consulting Limited's latest China Internet

However, Miss Li found that online

If we continue to raise prices, what is the advantage of online shopping for consumers? The question of price increases may only be answered by CEO, but the recent years are also in a terrible state: the IPO postponed in the second half of the year, and vice president Wu Shenglin switched to the old rival Jingdong before listing.

A person who signed the "veteran customer service" broke the news on the Internet, saying that the inventory of the products was about 1000000000 yuan, and the total loss in the past 4 years was about 2 billion yuan.

"These days, I always hear a lot of rumors about myself. My colleagues told me that they would go to participate in order to prove their existence."

Vic CEO Chen said.

Never early to attend the meeting, and recently appeared in the major forums at the end of the year.

The old old friend, CEO of Bi Tao, thinks that e-commerce is a wrong way.

Aware of the situation is not right, Le Tao net in June this year has stopped advertising, business began to shrink.

Chen Hu, vice president of Le Tao network, said, "a lot of e-commerce enterprises (hereinafter referred to as" the electricity supplier ") are ready to make a big effort in 2011, and the result is the bugle number.

Operators with poor operating conditions are also cold in the capital market.

A new electric business enterprise this year was originally very good. The founder was hesitant about several venture investments. But in June, the original venture capital was withdrawn, and the founder cried out.

Investors are no longer in pursuit of the electricity supplier.

In the industry view, the current situation of electricity providers cold to some extent with the expansion of the development of electricity providers before.

"Do not know from when, every industry has sprung up a large number of e-commerce enterprises, to do all the business can be moved to the Internet.

Everyone's vision is the same, even if a small industry is projected to a great country with 1 billion 300 million people, it is a figure that can not be underestimated.

CEO Wang Lifeng said.

Liu Lei, director of Beijing science and Technology Development Co., Ltd., which is an e-commerce provider, has told the China Youth Daily reporter that the current situation is that thousands of soldiers and horses have come to break through the single timber bridge of the electricity supplier.

In January this year, there were such heroic words in the past: Vic finished 2 billion yuan in 2010, and is expected to grow by 200% in 2011 to 6 billion yuan.

The old abacus is like this: in 2010, it sold 30 million pieces of clothing to the whole nation and sold 100 million pieces in 2011. In less than a few years, it will surpass all the traditional Chinese clothing brands.

Using electricity providers to subvert traditional industries and occupy the vertical clothing market.

And indeed, in the expansion period of the development of electronic business, capital is also helping.

Liu Lei told reporters an example. Once he chatted with an investor, chatting away, the investor made a phone call, and then tens of millions of dollars to an e-commerce website.

In fact, it is capital and electricity providers jointly blow up the bubble in the field of electricity supplier.

With the rapid expansion of the electricity providers, but the homogenization of vicious competition is fierce, for users, advertising, grab traffic.

The result of vicious competition is pushing up the marketing cost of the electricity supplier.

The cost of advertising and the rising distribution logistics cost overwhelm the electricity supplier.

Advertisers are making profits and making money.

Some electric providers admit that investors' money is equivalent to directly entering the purse of the advertising platform providers, and some of the 70% of the electricity supplier's operating cost is used for marketing promotion.

Some industry experts believe that the problem of electric providers is "blind pursuit of trading volume, losing money and making money".

In the final analysis, e-commerce is also a business.

Yan Yan, the investor of Softbank Sai Fu, said that the electricity providers are burning investors' money and the main business is not making money.

It is not sustainable to rely on investors' money to make electricity providers look forward to capital markets.

Selling things on the Internet has always been a dream of the past. It has never doubted the value of electronic commerce since it founded the excellent network, sold books and sold CD-ROM to sell clothes for all customers.

E-commerce has indeed changed people's shopping habits, and has also released China's huge consumption potential.

But why do electricity providers not make money?

Liu Lei, who has been doing e-commerce for over ten years, looks at the fact that e-commerce is a "bitter haha job", which is the mystifying of this industry by venture capital and media.

Liu Lei said that e-commerce is the front end Internet platform, the traditional mode of economy at the back end, the long chain under the line, and the industry tied up with traditional economy.

Investors value the elite culture of the Internet and invest money in those who are successful in the traditional Internet field, such as Chen and others.

The Internet elite is the best player in the previous website and Internet marketing, but it may be a layman for the traditional economy.

Did you control the amount of cotton per year? A large OEM factory produces more clothing than the whole year.

But these channels and chains are firmly controlled in the hands of traditional clothing enterprises.

Liu Lei analysis, to do business, is to manage people, manage customer service, warehousing, sales, and use traditional enterprise's meticulous management to squeeze profits.

Liu Lei is very optimistic about traditional enterprise self built network sales platform.

Some traditional industries have been in touch with the network, Suning Appliance is on the line with suning.com, Gome is on the Gome mall.

Traditional enterprises are just the opposite of the Internet business, their front end is relatively weak, but they have strong control over the supply chain.

"Once these companies sell their products online, their potential can not be underestimated."

Liu Lei said.

In the industry view, the electricity supplier shuffle is inevitable, 2012 is the elimination of electricity supplier.

Data show that in 2010, the US retail sales from the B2C area amounted to US $142 billion 500 million, accounting for 8% of the total retail sales in the United States, accounting for 80% of the total retail sales of the Internet.

Compared with the US, China's online shopping, which accounts for only 3% of the total retail sales, is far from reaching the ceiling.