Who Will Share The Cake With Vip.Com?

Just by buying this business model, Vip.com Market capitalization has broken through tens of billions of dollars, becoming the fourth largest Internet company in China. The third quarter earnings report just released shows that vip.com's total net revenue in the third quarter was $882 million 600 thousand, an increase of 130% over the 383 million 700 thousand US dollars in the same period last year, and net profit attributable to vip.com shareholders was 27 million 700 thousand US dollars, an increase of 130.3% over the same period last year of 12 million US dollars.

There is no doubt that flash buying market is very large. Under the impetus of vip.com, Jingdong flash purchase, Tmall special sale and many platforms, the flash purchase has become a huge market with potential growth potential. Especially after the double eleven, the market is seriously overdrawn, so that business inventories are soaring. In order to ease the pressure on inventory and capital occupation, flash buying naturally becomes the best way to clean up inventory.

The first research report on China's Internet time sale market has also proved that the flash market is promising. According to the data, since 2008, the domestic sale market has achieved three digit growth for six consecutive years. In 2013, the market reached 37 billion 800 million yuan, up 100.5% from the same period. AI predicts that the size of China's Internet time sale market will exceed 180 billion yuan in 2016.

In the third quarter, vip.com's revenue amounted to about 5 billion 400 million yuan. Obviously, vip.com's market share is not big. In addition, some data from vip.com's earnings reflect the hidden worries of a single flash buying mode. Especially when Jingdong, Tmall and Dangdang and many other B2C giants have made efforts to buy flash business, vip.com's excessive reliance on flash buying has become a huge hidden danger.

In the two quarter of this year, vip.com's first and second tier cities accounted for 51% of the total revenue, three and four plus 49%. In the three quarter, the proportion of vip.com's first tier and second tier cities combined was 42%, while the three line and four line combined were 58%. On the surface, the sinking of the market to the three or four tier cities is good. In fact, on the contrary, the users of the three and four line cities are sensitive to the price, and the consumption is too weak. This is a business risk that can not be ignored. According to vip.com executives, cosmetics and clothing are the largest category of vip.com and the most profitable category. At present, the gross profit margin of vip.com cosmetics is close to 20%, and the gross profit margin of garment business is 25%-27%.

Obviously, whether it is commodity category or the number of users, vip.com's performance growth has encountered bottlenecks. Although vip.com mobile terminal sales accounted for about 57% in the third quarter, surpassing the PC terminal, but how to import a better source of tourists is a problem that vip.com must face up to.

In the flash market, vip.com's advantages are being weakened by rivals such as Tmall, Jingdong and Dangdang. In the just concluded double 11 promotions, Jingdong flash sales increased 10 times from last month, ranking among the first camp in the domestic flash market. Tmall sales still exert strength, and the sale on cars attracts many consumers' onlookers. In addition, the sales performance of Dangdang commodities exchange increased rapidly.

Perhaps many people think that vip.com, which focuses on flash buying, is an insurmountable mountain for Jingdong and Tmall. In fact, for Jingdong and Tmall, flash shopping has no threshold. As we all know, Jingdong and Tmall hold huge traffic resources and considerable number of active users. Double 11 promotions, Jingdong flash purchase performance growth of 10 times, which is enough to illustrate the problem.

In the future, in the flash buying business, vip.com's real rival is not Tmall, but Jingdong. Jingdong has been supporting B2C for half a year through its direct camp and excellent logistics experience. After launching the flash purchase business, Jingdong expanded rapidly with the existing supply chain system and applied excellent logistics experience to flash buying business. Because of this, Jingdong flash shopping will be the first camp in the flash 11, and share a slice with vip.com.

Compared with vip.com, the advantage of Jingdong flash purchase is not only reflected in the two aspects of supply chain system and logistics distribution. More importantly, Jingdong has strong advantages in terms of users, ecosystems and after-sales services. The key point is that Jingdong's user scale is much larger than that of vip.com. Vip.com's earnings report showed that 9 million 300 thousand of the third quarter was active, and according to Jingdong's third earnings report, third quarter active users increased by 109% compared to the same quarter last year, 46 million 100 thousand. The huge scale of users is doomed. JD.COM It is a strength faction in the field of flash buying.

Earlier, in order to snatch the user, Jingdong flash buying business has the lowest discount point, and the account period is only seven days. This series of preferential measures has attracted many suppliers for Jingdong flash buying business. And the implementation of one to one operation support to maximize the service business. After the merger of Tencent's e-commerce business with Jingdong, WeChat and QQ entry became the two high quality traffic entries for Jingdong flash buying business. By contrast, vip.com bought the music bee club, earning only one million members.

It is not hard to imagine that Jingdong's flash buying and vip.com's duel, plus Tmall's special sale, and the continued efforts of Dangdang products will bring unprecedented competition to the flash buying business. From the user level, the core competitiveness of flash buying is no longer a simple low price, but a comprehensive competition between price performance and user experience. So, like Vip.com Such a simple flash purchase platform will face more severe challenges.

Jingdong, Tmall and Dangdang pay much attention to flash buying business, which will not only make the flash shopping competition more intense, but also make the flash buying business usher in a change era. At the moment, Jingdong is developing flash buying business in accordance with the standards of its own platform, and has raised the flash buying business to a new high point. Tmall and Dangdang are sure to follow up. Will the single flash buying mode still support vip.com's bright future?