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    Will Vertical Electric Providers Meet The End Of The Day?

    2012/12/26 20:58:00 20

    Vertical Electricity SupplierThe First TimeEveryone.

       Vertical electricity supplier The initial inscribed network confirmed the rumor of the sale. In 2012, the continuous loss of the vertical electronic business financial statements, like a dangerous notice, declared that the blind money burning enclosure was equivalent to suicide.


    Once a capital darling, today's venture capital outcast.


    Matthew effect is like a lingering charm, watching the vertical electricity supplier industry in a round of shuffling. Industry oligarchs against market expansion, speed up channel construction, reduce costs, deepen supply chain, narrow the deficit space. In the early stage, small businesses indulged in category expansion, attempted to transform platforms, and at the same time reduced the gross profit at a low price. The cost of logistics marketing increased sharply and was squeezed by the flow of large platforms.


       Will vertical electric providers meet again?


    Platform broken dreams


    Own brand clothing The initial sale of electronic business became the end of the 2012 vertical electricity supplier's life and death record.


    In the story of burning money and loss, it runs through excellent shopping, good music buying and so on. shoes Like the transformation of the electricity supplier, the red children of the main maternal and child products were sold to suning.com, the sale of socks, the closure of the only cotton, the sale of Le Tao, and the tragic time of Massa Marceau waiting for the price to sell.


    Xu Xiaohui CEO recently admitted that he was looking for a buyer. The former VANCL executive has worked on Han Han and Wang Luodan's advertising creative and promotional projects.


    Xu Xiaohui is good at playing the concept. He graduated from the Chinese Department of Peking University. He used the concept of "slow life" and "little fresh" to define the concept of youth and art. He made the way of individual marketing through product concept marketing and user experience interaction.


    However, problems such as lack of design team and uncontrollable supply chain broke out within one year.


    In the choice of platform or specialization, First engraved The old road of van guest.


    Photo: vertical B2C ushered in life and death moments, breaking the vertical platform, the first hand carved network of creative products.


    Customers have been crazy indulged in platform expansion, launched the V+ platform, created a fashion brand online mall, and actively expanded the category, from selling millet phone, cosmetics to once sold books and 3C. In recent years, he also took a high profile in the price competition of the platform, trying to help everyone to carry out platform transformation.


    In the past 4 years, the total investment of $422 million has been won by all customers. The crazed expansion has always been in the middle of a loss, with high inventory, logistics and marketing costs, and frequent personnel changes that forced the IPO plan to be postponed in the early November of this year.


    Less than two years after the start, it has also been on the road of platform change. In the category listed on the website, besides clothing Shoes and Hats There are books, magazines, stationery and audio-visual products. And observe the website's respect for personalized original brand, and the style and the basic convergence of customers. Xu Xiaohui had publicly stated at the beginning of his early engraving that the initial stage would not consider profits, and that the size of the enclosure was the top priority.


    Another fan disciple web is also replicating the customer service route. It breaks through with socks as a single product, and gradually expands to department stores such as underwear and scarves, trying to transform into platform operators. Wei cotton network has joined the electricity price war, and Focus Media, Baidu brand area, Sina and other companies, heavy advertising.


    However, the price of socks and underwear customers of the main network is usually only tens of yuan, and the gross profit margin is low. After being compressed by the high cost of logistics and marketing, the capital chain that can't make ends meet is quickly blocked.


    Under the pressure of platform electricity supplier, the cost of vertical electricity providers' flow is getting higher and higher. The commanding heights are seen by Tmall, Taobao, suning.com, Jingdong and so on.


    Industry analysts believe that vertical electricity providers have three ways out: first, deep plowing category and supply chain, fine operation, reduce channel costs, make the platform difficult to impact, such as wheat bag, brewmaster network, etc. Two is to make its own brand, become online brand business, increase profits, get the traffic with Tmall entry, such as Yue Tao, Le bee net; three is bought by big platform.


       Oligarchy against market expansion channel is king


    Small and medium vertical burning loss Online retailers At the end of the year, concentrated deaths, the oligarchs who controlled the channel were expanding in the cold winter. The Matthew effect was like a lingering curse.


    In the Chinese liquor B2C e-commerce market, brewmaster net, also buy wine and goods, still ranked the top three of red wine, of which brewmaster net almost occupied half of the country.

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