B2C Blowing Up The Trend Of "Department Store"

Li Guangdou, a marketing expert, believes that in real stores, stores and large shopping malls have their own value and necessity, and the Internet also requires "experts".

The network needs integrated network providers, and also needs B2C vertical quotient, but the rush to win without regard to conditions and contention is not worth the gain.

A large number of B2C enterprises have threatened to become "Taobao of online department stores", which will inevitably lead to price killing and challenge to service capabilities and other aspects.

In addition, the pformation department store is a project involving product supply chain, technology, payment and logistics and so on. It needs abundant financial support.

It is in the procurement, sales, logistics and distribution.

When you mention Dangdang, is your first reaction still only associated with the book store? Can Jingdong online shopping mall be equated with IT products and home appliances shopping website? Is red child still the pronoun of the online selling platform for mother and infant products? If you still think so, you have to change your mind.

Dangdang is the largest book retailer in China. It also has 6 kinds of products, including beauty and personal care products, household and personal products, maternal and infant products, electrical appliances, clothing and clothing, and shoes and leather goods.

With the development of 3C digital products and the largest 3C store in the B2C market, Jingdong mall acquired the online shopping mall of the online shopping mall on the third round of total financing of about $150 million, expanding its sales to household products, watches and jewellery, clothing and other categories, and making every effort to enter the market of daily products.

The red child has been pformed from a simple seller of mother and infant to a department store containing cosmetics, household products and health products.

Even VANCL, who focuses on the brand of shirts, has launched the V+ platform. Zhong Kaixin, vice president of V+ commercial mall, described this launch less than two years ago.

Low gross margin and expanding sales category to find profit points

The reason why B2C e-commerce has turned around the "department store City" is still the need for the development of the electricity supplier industry to a certain stage.

According to AI survey data, the average gross profit margin of China's B2C market is only about 10% ~ 15%, and some types of parity margins such as books and electronic products are even less than 5%.

Lin Ya, Secretary General of the Beijing Electronic Commerce Association, said that on the one hand, the electronic commerce company, in order to pursue the market scale, maximizes the gross profit. Although the fight against freight and price war has made great contributions to the total volume of orders, the price of a single order is going down all the way. For e-commerce, the final distribution cost is a hard cost. Under the stimulation of free shipping activities, the single order volume has decreased and the gross profit has gone down.

Taking Dangdang and excellence as an example, the book business of these two companies has increased to over 80% of the book market. In this situation, if we insist on specialization, we can only dig out customers from the circles of competitors in addition to the natural growth of customers and the increase of customer consumption.

So Dangdang and excellent in these 10 years, basically is a close price war.

Wang Zhiquan CEO said.

Under such circumstances, only by expanding a broader market and having richer commodity categories can we ultimately rely on the advantages of large-scale operation and achieve long-term sustainable profitability as soon as possible.

To this end, expanding sales category has become an option.

The main competitive products can not earn much money, mainly for the market, but there must be products that can make money.

Facing "homogenization" competition pformation still takes time

Although most B2C stores are actively pforming, the B2C companies that originally focus on subdivision will risk losing their core competitiveness if they go all the way to diversification.

To be professional or cross boundary, this problem has also spread to e-commerce enterprises.

Li Guangdou, a marketing expert, believes that in real stores, stores and shopping malls have their own value and necessity. The Internet also needs to be "experts". The Internet needs comprehensive network operators, and also requires B2C vertical.

Large number of B2C

The trend of B2C turning to department stores has pushed the professional electric companies with "one recruit" to the abyss of homogenization competition.

When Wang Zhiquan talked about this problem, he said: "once these B2C providers pursue collective and big business, they will easily lead to a single competition mode and different scales, so it is difficult to reflect the alienation and individuality of business trips."

WAL-MART, the world's most widely paid retailer, used to offer goods from non famous retailers on its website to exchange revenue share.

WAL-MART spokesman Dong Yu Guo has expressed concern about online sales. He believes that there are no more perfect laws and regulations on online shopping centers in China, and the online sales market is still not perfect.

"No matter what form, the quality of retail products must be guaranteed, the price must be attractive, and there must be good service".

Similarly, a few years ago, Carrefour also tried several times to test the "online shopping mall", but today only retained the e-commerce of the two international metropolises of Beijing and Shanghai.

The trend of department store makes the differentiation of websites in e-commerce become more and more blurred.

Under the premise that price does not have any advantages, it is very difficult to cultivate user loyalty.

But in the final analysis, the essence of the electricity supplier is to do retail and service. The deterioration of external environment and the aggravation of competition force the electric business to have to enrich the category of commodities and strive for profits. Meanwhile, we must seriously ponder. After pformation, these B2C enterprises should not only be more than Taobao C2C, which integrates millions of different sellers' sources of goods, but also continue to compete with their original competitors.

How to maintain the brand characteristics of the past, how to avoid homogenization competition, and how to do a good job in marketing and other issues.

In addition, the pformation department store is a project involving product supply chain, technology, payment and logistics, and requires abundant financial resources to support it.

It has a very high demand for a series of links such as procurement, sales, logistics and distribution, after sale service. If a certain link is not handled properly, it is likely to cause fatal damage to the brand value of the electricity supplier itself.

In the United States, it takes 10 years for a professional e-commerce website to grow into a comprehensive B2C website, and the process may take longer in China.