Logistics Business Logic Behind China'S One Hundred Thousand Billion E-Commerce Bill

　　 China E-commerce has entered the "ten trillion era". According to statistics from Ministry of industry and information technology, the total market has reached 10 trillion and 670 billion yuan, which is equivalent to the size of the United States. But the growth rate of online shopping transactions has declined from 120% above the level since 2008.

It is worth mentioning that the consumption pattern of the second tier cities is almost fixed, and the volume of transactions is stable. In 2013, the county online shopping consumption grew by 13.6% faster than that of the city. According to the report on the development of online shopping in the county area, the data show that in 2012, the county's online shopping per capita was 54 times, and the number of online shopping in the second tier cities was 39 times.

This is counter intuitive. Present situation It is caused by many factors. These urban retail outlets provide abundant quantities and kinds of goods (rich stores), and consumers are willing to buy products that are not available locally through the Internet. Online retailing can effectively reduce intermediaries such as agency, wholesale and retail. The McKinsey Global Institute estimates that online prices are 6% to 16% lower than offline prices, which is more attractive to the more sensitive three or four line urban residents.

The total volume of the three or four counties is large and the growth rate is fast. However, these advantages are not obvious in the three or four line cities with inadequate infrastructure. The spillover effect brought by the sinking of the channel will inevitably bring about the input and construction of infrastructure such as logistics and warehousing. Manufacturer Agents, retailers and consumers interact with each other.

Of course, the sinking of channels will also make competition among major manufacturers fiercer. Such as Taobao, Jingdong and other large electricity providers, in a second tier cities have a mature reputation, but in the three or four line and below the city's brand awareness is weak. As early as last year, CEO, vice president of Jingdong, Ying Ying Chun, pointed out: "building brand with multi-dimensional brand business" will be one of its development priorities.

Publicity is the first choice for e-commerce providers to enhance their brand. The most striking thing is the practice of vernacular Chinese. One side brushes "life wants to be good, hurry up to Taobao", and the other party is not ready to be outdone. One of the most high-profile Jingdong for whitewashing is in more than 100 cities, with more than 8000 advertisements on the wall.

In addition, the traditional "Caravan" activity has become a propaganda method adopted by Jingdong and Taobao. As a Internet Co, they are united with branding providers, displaying the physical objects under the line to the streets of the three or four tier cities. The urban residents can experience the commodities in front of the temporary exhibition stand, and the organizers also provide online and two-dimensional codes. Businessmen who have organized caravan activities extend the city to more than 100. The degree of attention is obvious.

But large-scale brand promotion has both advantages and disadvantages. If there is propaganda in the air, there is no logistics support to the village head, not only can not tap the potential consumption power, but the credibility is greatly reduced. In July 10th, Alibaba launched the logistics path before publicizing the sinking strategy. "Day by day and rookie network get through, distribution and service capabilities have been greatly improved." Xia Ji, head of the activity of Taobao marketing department, said that it has activated its existing distribution system in 2600 districts and counties, and in addition to the cooperation with China Post, which has more than 100 thousand entity service outlets, it has also made the birthing network which has hatched for a long time more competitive.

It is not hard to see that improving logistics network can not rely solely on one's own strength. Even in the field of logistics, Taobao has to rely on third parties for years. Jingdong certainly see the problem. In addition to expanding their proprietary distribution system, they also put forward the XianFeng Railway Station mode. In areas where business is not yet perfect, encourage staff to go to their hometown to start their own businesses, and give considerable autonomy to open distribution stations, so as to enhance their enthusiasm for local logistics.

The key is how to sell goods to local residents. "For example, the residential area of urban consumers from three to six lines is larger than that of urban households, so large screen TV, large capacity refrigerators and high-power air conditioners become the main push, followed by township voltage instability and targeted optimization of products."

In addition, the use of urban agricultural products (000061, stock bar) to feed the city is also a way to enhance their own advantages. "In the future, we will also send the agricultural products to the table of the townspeople in reverse. By reducing the intermediate links, the farmers can earn more money, and the residents in the city can also buy more fresh things cheaper." Jingdong mall CEO Shen Haoyu said.

No one will deny the impact of mobile electricity providers on the future pattern. "For the three or four line market, PC coverage and Internet coverage are limited." Lin Chen, vice president of Pat net operation, said. He believes that when smart phones fall to less than one thousand yuan, the coverage of the three line market will be greatly increased. To some extent, whether it can occupy the leading position of mobile electric providers in the cities below three lines will decide the pattern of future electricity suppliers.

Alibaba insiders also believe that its "All In mobile e-commerce" from cloud to end is a huge advantage. At present, Taobao Mobile has a large installed capacity, and after purchasing UC Web, it is easier to guide customers directly buying on Web mobile pages. The close cooperation between Jingdong and WeChat also has a place in the field of mobile e-commerce.

This is the cruelty reality that the electricity supplier is facing recently. Everyone must face up to it. It's best not to think about it.