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Chinese Electricity Providers Do Not Make Money, But Do Not Make Profits.

2012/4/12 9:01:00 9

Van guest

Its logistics companies such as Feng began to pick up the list, while Dangdang launched its own brand clothing and home.

In the profit model is still the industry's biggest worry, Chinese electricity providers began to find more ways to make money.

Huang Zirong, Secretary General of the Guangdong Internet business association, said in an interview with the newspaper that "the electricity supplier should also be a century old shop instead of fast forward in the catalysis of hot money, which is not conducive to the development of the entire Chinese electricity supplier industry."

Recently, Dangdang started to launch its own brand of clothing and household products. For this reason, Wang Xionghai, CEO of e-business in Sai Wuzhou, said that this is positive for the electricity supplier, because the electricity supplier has the fame of the platform, but has no own core product, which makes the electricity supplier just a consignment dealer.

And there is news that Jingdong mall will also launch its own brand products.

At the same time, media reports revealed that all the self funded distribution companies such as Feng Cheng's company will start receiving orders.

For many business enterprises diversified "money seeking" phenomenon, Wu Weiding, senior vice president of professional cosmetics website every day, believes that many electric business enterprises are doing the platform by attracting investment funds, but many electric business enterprises have not found a suitable profit mode.

Industry insiders said total investment in China's Internet industry increased by 44.6% and 218.5% respectively over the same period last year.

Last year, 5 billion 300 million US dollars in electricity business.

Behind the electricity supplier's efforts to find ways to find money, it is the shadow of investment capital crazily.

According to CVSource, a financial data product of ChinaVenture group, there were 266 cases of VC/PE investment disclosure in China's Internet industry in 2011, with a total investment of US $8 billion 159 million, representing an increase of 44.6% and 218.5% respectively compared with 2010.

Among them, in 2011, the e-commerce industry (including B2B, online shopping, online travel booking, e-commerce services, e-commerce shopping guide and search) disclosed 116 cases and the total investment amounted to US $5 billion 353 million, accounting for 43.6% and 65.6% of the total Internet investment respectively.

Guangdong

Huang Zirong, Secretary General of the Internet business association, thinks that wind investment gold is becoming the mainstream of the electricity supplier. They copy the mode of American enterprises, and then package the listed companies for investment and return with high returns. This leads to the emergence of more than 6000 group buying network stations in China in a short span of two years.

Huang Zirong said that the way of fast forward and quick development of venture capital is not good for the entire Chinese electricity supplier industry. "The most noisy thing now is the unprofitable electricity supplier" because it has huge pressure from venture capital.

Industry recommendations: electricity providers should also create a "century old shop".

Huang Zirong revealed that only two of the top 20 electricity suppliers in the United States were pure electric business enterprises, and others were made by traditional enterprises, while only 20 of the top 20 Chinese business enterprises were not pure electric providers. Others were pure electric providers, because VC played an obvious guiding role in the field of Chinese electricity providers.

Guangdong traditional enterprises have advantages in doing business.

According to AI consulting data, the scale of China's e-commerce market (including B2B, online shopping and online travel booking) reached 7 trillion yuan in 2011, an increase of 46.4% compared to 2010.

Among them, the scale of China's online shopping market in 2011 was 773 billion 560 million yuan, and the growth rate of online shopping reached 75%.

Huang Zirong suggested that traditional enterprises should become the main force of the electricity supplier, and the electricity supplier dominated by venture capital should become a supplement.

"If we want to do well in electric business, enterprises should have a long-term goal of building a century old shop instead of being utilitarian."

Huang Zirong said.

At the same time, Huang Zirong believes that Guangdong's traditional enterprises, which are known for their pragmatism, have great advantages in doing business, because Guangdong's traditional enterprises have primitive accumulation of capital and solid industries.

And Wu Weiding, senior vice president of everyday network, also said that at present, the cost of operation of electric business enterprises, including advertising, is relatively high. If there is no long-term plan, this way of burning money is very difficult to maintain for a long time.

At the same time, Huang Zirong believes that with the development of technology, there may be some changes in the future mode of electric business, but how to meet them conveniently?

Consumer

Demand, how to provide better consumption experience, all need time to accumulate, and also need some government policies to support and help.