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    The Pain And Innovation Of E-Commerce O2O You Don'T Know About

    2015/3/9 17:06:00 23

    JingdongUSAE-Commerce

    Through in

    Electronic Commerce

    More than 10 years of experience in the field, I find that in the Internet era, many things have a very short life cycle.

    But is there anything that remains the same in this rapid change of business mode? The answer is yes.

    By comparing the proportion of online retail sales to total retail sales in China and the US, it is easy to see that China's online retail share is significantly higher than that of the United States (30% to 40% higher than that of the United States).

    In addition, the growth of China Mobile's network pactions is extremely fast.

    In 2011, China's mobile Internet paction volume was only 1/8 of that in the US.

    In 2014, the amount of mobile Internet pactions in China has surpassed that in the United States.

    This is somewhat surprising.

    Because the GDP in the US is much higher than that in China, and the total retail sales in the US account for 60% of GDP, while the total retail sales in China account for only 30% of the total GDP.

    Through such a comparison, it is found that China's electricity penetration is much higher than that of the United States.

    This shows three facts.

    First, although the retail industry in China has been developing for so many years, the retail channels under the traditional Chinese line have not yet been paved.

    The offline retail competition in the United States came into being in the 50 and 60s of last century, and formed a great wave in 70 and 80s. But China directly skipped this link and was constantly eaten up by online retailing.

    Second, China's real estate market lacks market competition, so very high real estate is directly pformed into retail format, resulting in a decline in the competitiveness of real retail products.

    For example, a slightly larger city, renting a good shop, the cost of one square meter per day is higher than 15 yuan.

    And the warehouse of e-commerce enterprises is less than 4 gross.

    The bonus of this part of the electricity supplier is one of the important reasons why buying things online is cheaper than offline.

    Third, made in China is amazing.

    This gives Internet Co the opportunity to seize the needs of users, thereby reversing the manufacturing industry.

    For example, the rapid growth of Internet Co millet also depends on China's very strong manufacturing industry.

    Back to the topic of category.

    The Internet penetration of goods of different categories is different.

    In 2007, the penetration rate of American computer products online was 45%, while toys, jewelry, shoes, furniture, medicine, automobile accessories and general merchandise were only 10% to 20%.

    {page_break}

    Now the world's online dominant mode is the Amazon mode and Jingdong mode, initially based on computer products.

    Toys, jewellery, shoes, furniture, medicine, auto parts and so on have not been bigger, or have been at the point of break even point, and have not developed rapidly.

    There are also some categories, and even consumers have not yet contacted the brand.

    Each category moves to the Internet or has its own rhythm and rules. If we catch this rule, the development speed of enterprises will be very fast.

    Pointcuts often determine whether or not the future can be achieved.

      

    JD.COM

    The development path can be divided into three stages.

    The first stage is self employment before 2010.

    Before 2010, the profit model of the whole business was not very large, and cash was used to control the large scale to reduce its wastage and circulation cost and form the commodity price difference.

    After 2010, Jingdong began to make brand. The growth rate of Jingdong was almost three times more than that of Taobao Ali. The main reason was that Jingdong had the opportunity to enter the category that was previously unable to do by itself, such as the clothing industry.

    By 2013, Jingdong suddenly discovered that it was necessary to cooperate with previous traditional businesses to meet the needs of users.

    The change of user's demand is the way to change the business mode and organization form of Jingdong. This is what enterprises need to consider.

    It is necessary to find suitable business models to meet this demand quickly and meet the changes of users.

    There is definitely no way to adapt to all times and needs.

    Now online sales are doubling every year, and this doubling is not only the advantage of market share, but also the change of the whole price system and user purchase system and decision channel.

    As for O2O, after research, it is found that the large electricity supplier companies do not have the advantage.

    The essence of retail is a demand.

    User needs include three points: price, selectivity and convenience.

    this

    Amazon

    From 1997 to 2007, the growth rate was very fast, because of the price advantage.

    In the field of O2O, selectivity and convenience are starting to become just as important as price factors.

    There is a great deal of design in the whole operation center, business mode design and contact point.

    So O2O is a very big battleground. Jingdong orders before 11 in the evening and arrives at 11 at second a.m. this is because there are tens of thousands of couriers in Jingdong. This is a new challenge.

    Jingdong knows well: weakness and ignorance are not obstacles to existence, arrogance is the only thing.

    Let's talk about the category again.

    This year's total retail sales in China are almost 23 trillion, and there are actually more than one trillion categories, which are worth a lot of money.

    In over one trillion of the categories, there is no large scale electricity supplier in the automotive market and fresh market, which is the main category of O2O in the future.

    The great challenge in today's business is culture.

    Before 2015, Jingdong earned all of their money.

    We invest tens of billions of dollars in Baidu, divide the public, and scale the flow costs through scale.

    Merchants sell things to Jingdong, and Jingdong earns money for warehousing and logistics.

    Any small business can reduce the cost of distribution and warehousing through Jingdong.

    Because only by achieving a super scale can we reduce the cost of distribution and warehousing.

    {page_break}

    In addition, Jingdong also makes the difference between programmers. This piece also needs independent companies to build a basic platform from the bottom.

    In fact, for Jingdong, we hope to reduce the cost through scale, so that businesses and Jingdong can enjoy the cost reduction and speed increase.

    There are three points to be attached to corporate culture.

    First, we should think clearly about all companies doing things and doing projects, whether in foreign enterprises, state-owned enterprises or private enterprises.

    Because only thinking is clear enough for the following people to perform.

    Traditional enterprises do research, discussion, planning, development, testing and so on, and the results can never be done because they are too slow.

    Later, Jingdong made some adjustments to compress the whole cycle to the month, and to satisfy users in the fastest way each time.

    We need to understand the needs of users.

    How many categories do users buy? How to place orders? What is the tolerance for customer service?

    According to the real performance of users, we should propose solutions to choose what kind of system to use and what kind of marketing companies to find.

    This process is getting bigger, more backward, and less changing, and this demand can be solidified.

    So how to satisfy and get users' needs.

    There are three modules. The first is to convey collective work by orders and meetings. Everyone sees the process of execution. There is no problem in execution. Every team and everyone knows exactly what to do.

    The second is to evaluate and coordinate, and lean entrepreneurship through user insights.

    The third is through the market trial and error, through the higher iteration, to make the whole adjustment.

    This is also a traditional budget and management framework that adjusts our pace with the market and users.

    So this has great challenges to the governance structure of the whole company.

    Enterprises need to split faster, more efforts to meet and find users' needs, especially the imaginative young people.

    Finally, the core is open cooperation.

    In the era of O2O, retailers are expected to play their own strengths, and we will explore the market together, and there will be big opportunities.

    We hope that through the O2O era, we will seize this opportunity with new ideas and more open thinking.

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