The Electricity Supplier'S Performance Is Soaring, The Faster The Loss Is, The Bigger The Circle Is.

Perhaps the industry is just starting, and it may also be that the capital is too concerned.

It's always hard to figure out.

So far, no electricity supplier has made a profit, and the faster the sales soar, the greater its losses.

Moreover, without price war, sales growth has begun to decline.

Chinese electricity providers have never found a profit model suitable for their own development.

Not only that, China's electricity providers seem to be stuck in many strange circles.

The sales volume is from, ignoring user experience, no matter what type of electricity providers have begun to expand the entire category, no matter what stage of e-commerce are popular self built logistics......

Is behind the capital drive in trouble, or the electricity providers themselves do not recognize themselves? But anyway, China's electricity providers need to get out of the puzzle!

Life is suspended in two poles.

In the past two days of the National Day Mid Autumn Festival, in contrast to the physical stores with double sales of holiday sales, the electricity supplier just passed a dull holiday.

According to NetEase's data, Jingdong's Mall is included in the statistics.

Amazon, and more than 200 electricity providers, since October 1st after the national day 7 days, compared with the previous week, the flow rate dropped by 24.2%.

Without the price war, the high growth rate of e-commerce sales is hard to sustain.

Moreover, even behind the high sales of price wars, the more sales the more losses, the farce.

No wonder Wang Hanhua, President of Amazon China, once commented on the evaluation of the electricity supplier mess. "Now there are too many bubbles in e-commerce, and there will be a group of merchants who have died in the bubble."

It looks very busy.

Some time ago, "War Within Three Kingdoms" electricity supplier chaos not only exposed.

More and more "dirty" of the true face, but also more deeply exposed the business enterprise itself deep in the "high, low interest, negative growth" dilemma.

In fact, behind the seemingly high sales volume is that the electricity supplier is "enslaved" by capital, blindly pursuing capital, but has forgotten how to perfect the business development mode.

In this regard, CEO, a guest of all sincerity, once said, "this war is sometimes getting worse and worse.

Since the second half of last year, the original valuation pricing system of China's electricity supplier industry has collapsed in a very short time, and capital is no longer in the rush for e-commerce companies.

Indeed, the new system has not yet appeared, which also makes many electric business enterprises at a loss.

An angel investor has revealed that the same person is also a sum of money, the investment return in the US may only require 12%, and if the annual return in China is less than 50% - 100%, you will not do this VC. If you are not talking to these LP about how many gem IPO I have, or if I have a new two hundred million dollar fund, it will guarantee 30 times (return) in two years, you basically can not melt money.

In China, it is not sustainable to grow by tens of per cent in a few years.

Therefore, at this time, everyone will be like the relationship between upper and lower lines in pyramid schemes: in order to recover the money they invested, and expect higher returns, they can only rely on finding "home" to continue the source of funds.

And every "home" sees the framework of market share.

This is not a mode of livelihood and development that depends not on commercial strength, but from profits. It can only make VCs more and more greedy, and the bubble will blow bigger and bigger until it breaks down.

The "pyramid selling mode" of commercial business has caught up with venture capital and caters to venture capital, and venture capitalists have also created a false prosperity of "high sales volume and low profit margins" step by step because of the strategy of "burning money" by electric providers.

Zhang Yong, President of Tmall, also believes that although more and more people are involved in e-commerce, more and more consumers' shopping behavior and habits are changing because of e-commerce. But e-commerce is "very busy", but in fact, it is still very immature.

The way of communication between e-commerce and users is still at a very elementary stage.

A typical feature is that the user interaction of e-commerce is still "shelf interaction", that is, businesses upload goods, pictures, details, consumers purchase accordingly.

"The user experience of the electricity supplier still has a lot of room to dig, and the creativity of the business has not yet been fully realized."

In response, experts said that the continued expansion and fierce competition in the industry have tightened the electricity supplier's capital chain, and this price war will not last long.

Zhang Yin, an analyst at weft ventures, said that the price war highlights the lack of a reasonable business model in the e-commerce industry, and that no bottom line price is not a sustainable means. Sooner or later, it is necessary to return to the commercial nature of pursuing profits.

But at present, the electricity supplier and the home appliance industry in the past have broken the scope of fluctuation, reversed the essential attribute of retailing, and relied on the "burning money" to blow up a huge market to maintain operation. This violation of the commercial law strategy will inevitably lead to the frequent occurrence of strange phenomena in the electricity supplier.

In addition, the expert also believes that the price war of e-commerce is likely to be accompanied by a decline in product service and quality, and the ultimate victims will be the consumers who pay for it.

Moreover, because the electricity supplier violates the commercial law's price war, once the fund chain breaks up, it is likely to cause the whole industry risk to erupt.

Cold water spilled electricity supplier

For a long time, no profit model has been found suitable for its own development, coupled with the driving force of high capital performance growth, resulting in the polarization of China's electricity suppliers with high sales and negative profits.

In October 23rd, Gome announced the first three quarters of 2012 earnings performance warning. According to the preliminary review of Gome's unaudited accounts, Gome expects that the first three quarters of the company will record a net loss of 600 million yuan -7 billion yuan, including a net loss of 501 million yuan in 1-6 months, and an estimated loss of 1-2 billion yuan in 7-9 months, indicating that sales in the US quarter of the United States declined during the same quarter last year, but the year-on-year data showed an improvement trend compared with the first half of this year, and profitability also rebounded with the increase in the two quarter of this year.

For this loss, Gome explained: "mainly because of the slowdown in China's macro-economic growth, the impact of the stimulus policy on consumer overdraft, consumer's desire and confidence, and the group's electricity supplier business are still in the business integration period and investment cultivation period, which are the four major factors that have led to the decline in sales revenue, the increase in labor and rental costs and the loss of electricity supplier business."

It is not hard to see that in addition to the economic environment, Gome attributed the loss to the electricity supplier.

At the same time, the decline and collapse of e-commerce websites are faster than that of their rise: the slam net went to the US listing plan, the MSN mall closed the product network, everyone went to the United States to postpone the listing plan, and many of the sites were closed down.

In addition, Suning and Jingdong based e-commerce platforms have been caught in the severe winter.

The "cold profits", "negative profits", "shutting down", "offline", "divestment", "layoffs" and "IPO extension" in the cold winter, like the black death in the middle ages, swept the entire domestic e-commerce market.

The electricity supplier was splashed with cold water on the market.

For a time, deep in the mire, entering the "cold winter" has become the hottest topic in the business circle.

Even before Liu Qiang Dong said before his micro-blog, the Jingdong mall sales increased by more than 120% in the first half of 2012, but net profit was still negative.

According to another report, Jiapin net laid off 200 people, accounting for half of its total staff, and Marceau, who once made a profit, has also laid off a lot of jobs recently.

Although the price war of electric business enterprises is constantly developing recently, the industry generally believes that the electricity supplier has entered the second cold winter.

In view of this, it is pointed out that the Internet itself is a virtual world. It can give users the guarantee of the quality of goods, give shopping unique experience and enjoy the shopping, is the fundamental concern of consumers, and is also the fundamental reason for the prosperity of Chinese electric business.

And blindly pursuing low price or even losing money is not in line with the logic of business development. It will inevitably bring about a decline in sales.

In fact, whether online or offline, consumers are always paying attention to price and goods ratio three, but the electricity providers emphasize that the low price without support will only mislead the online shopping habits of consumers.

This price war, despite soaring sales in a short period of time, ushered in a surge of sales, but it was picking up sesame seeds and losing watermelons.

Consumers are not fools, only the "cheap" and the loss of service and quality of the electricity supplier in turn, more serious injury, integrity began "skid" business is more terrible.