Post Marketing Era Of Electricity Supplier Industry: Profit Or Scale?

Whether the listing of enterprises is good or bad is quite a number of articles related to it.

For the general public, the clash of two good partners in the Chinese partner can reflect a side view: for Cheng Dong Qing, listing will affect his position in the company, which is not conducive to advancing his strategy. For Meng Xiao Jun, listing is the best way to prove the value of an enterprise, and it can also become a bargaining chip in the negotiation.

Finally, after weighing the pros and cons, the new dream is still on the market.

On the other hand, Amazon is a very good example for e-commerce companies.

Amason's founder, Jeff Bezos, has been questioned in the past 20 years without delay in putting money into expansion.

From 1996 to the present, Bezos only once played a soft role in 2000 only when the Internet bubble burst. In 2001, Bezos declared publicly for the first time. In 2002, Bezos announced that in the fourth quarter of 2001, Amazon listed for the first time in 7 years, making a profit of $5 million 100 thousand, which surprised the critics of Wall Street and Amazon, and restored the confidence of the market.

Since then, Amazon's financial control has been more artistic, and its quarterly net profit has been hovering between the positive and negative $100 million most of the time. Although the occasional "year-on-year increase" will earn some applause, it is still negative and positive, and there will be occasional large losses, such as the quarter that has just passed, so it will be criticized almost several times a year. But since 1996, Amazon's sales have increased by more than 20% per year.

In 2009, Bezos even wrote to shareholders: "in our 452 objectives," net income "," gross profit "and" operating profit "and other words have not appeared.

The trade-off between profit and scale can well summarize the main conflict points between Bezos and investors.

In Bezos's view, "profit is the blood of a company, but it is not the meaning", so all the money earned is spent in exchange for the continuous growth of scale; while in the traditional economic model, the value of stock depends on the profits created by the company so that investors can get dividends. Companies that do not generate profits have no investment value.

Conflicts arise.

This conflict will also become the main problem of the post market era.

After all, not everyone can stand up to all kinds of pressure like Bezos and keep moving forward.

The story of Jingdong and Dangdang may reflect the dilemma of the electricity supplier in the capital market.

In 2007, Jingdong changed its domain name from jdlaser to 360buy, and began its 360 degree burn.

It is necessary to establish a logistics system, a large number of advertising inputs and expanding business categories, so as to increase its scale in losses.

Coincidentally, in 2007, it was also necessary to implement the strategy of "going out and coming in", and began expanding the category of "department stores", "household appliances" and other enterprises, and reached the "first year of expansion" with Gome and other enterprises.

In 2010, Dangdang landed on the NYSE for $313 million, which should be a driving force for Dangdang to take off.

However, things have changed dramatically.

Over the next two years, Jingdong and Ali launched a frenzied price war and advertising campaign.

At this time, Dangdang hesitated.

In 2010, Tmall's predecessor, Taobao mall, will be free of freight as one of the entry requirements. When Jingdong launched its "free shipping" as a gimmick, the first launch of the "free shipping" service cancelled the offer. In 2012, foreign media reported that Yu Yu, co founder of Dangdang, said in an interview with CNBC television: "as a company executive and founder, what I have to do is to avoid the shrinkage of option value and affect employee sentiment."

And expressed the hope that "good performance and financial performance"; and Dangdang founder and CEO Li Guoqing has repeatedly publicly said that the price war will be "more rational than the opponent", and even in 2012 made the decision to enter and leave in Taobao: "of course we have to enter, the flow of large households, rent is not expensive."

This pursuit of profit is equivalent to giving the scale to the opponent.

According to the research data of AI consulting, in 2008, China's B2C e-commerce market accounted for 20.2% of the total volume of pactions, while Dangdang accounted for 14.1%.

In view of the high proportion of large commodities such as computers in the sale of Jingdong at that time, the small amount of products such as Dangdang books and general merchandise accounts for a relatively high proportion, while active users and orders must be stronger than Jingdong.

But in 2013, this data became Tmall 52.1%, Jingdong 18.3%, Dangdang only 1.9%.

After removing Tmall's platform website, Jingdong accounted for 46.5% of the market share of B2C shopping website, which accounted for 4.8% of Dangdang.

Even if the turnover is only 1/10 of the competitor, Dangdang will be powerless even if he wants to fight the price war and advertising campaign.

Today is different from yesterday.

When all the big business enterprises are standing in the spotlight of the capital market, what kind of changes will their strategy take when they face similar pressure?

For Amazon, it finally faced its competitors in the capital market.

In the long run, it will be a topic for investors to compare with rivals' market value and performance.

The next stage of competition will revolve around two themes: first, kill each other's stronghold.

In the case of Ali and Jingdong, Amazon is also stepping up its efforts in the biggest market in China.

This year, Amazon has launched a series of promotional activities with the theme of "entering China 10th anniversary", trying to expand its influence in China.

Second, the expansion of product categories can be turned into performance.

Amazon's KindleFire tablets and mobile phones failed to replicate the success of its Kindle e-book, giving people more opportunities to criticize their investment strategies.

Bezos, on the one hand, needs to protect the stability of the electricity supplier business to invest in his blood supply. On the other hand, he needs investment results to ensure that his growth rate is faster than that of his competitors in order to prove himself and the pressure is not small.

For the Jingdong, on the one hand, it needs to continue to implement the former.

On the other hand, it may still give investors a good profit performance.

In such a high share, how to attract users to buy more expensive and profitable products is a topic.

For example, Jingdong's expanding garment business is a higher product category than electronic products, and household appliances are a higher product category.

The former allows Jingdong to make more money in an order, while the latter can rapidly increase its platform trading volume (GMV).

Therefore, adjusting the product mix and input structure will become an important topic in this area.

Yes

For example, before going public, Ma Yun, who knew well about the advantages and disadvantages of listing, had secured the partnership system through his own efforts, eliminating the biggest hidden danger -- the sidelined management rights.

At the operational level, its income structure is quite different from the two, mainly from advertising, shop management proposals and other services. This has made its main objective always providing more services to help businesses earn at the same time.

This is also the meaning of "let the world have no difficulty in doing business".

The service based on big data has been the focus of Ali research in recent years.

In the next stage, the analysis and excavation of big financial data, logistics big data and big paction data will still be the key direction of Ali's breakthrough.

And then the market age for us onlookers, the performers are less mysterious, more pparent, there will be more data to analyze and deduce, in this case, the topic of electricity competition will be more exciting, which is indeed a blessing.