The Growth Trend Of The Online Business Is Declining.

Do you remember how the electricity supplier and the offline retailer were irreconcilable? For example, Ma Yun once said: Taobao electricity providers to compete with the traditional retail industry, the goal is to "eliminate all intermediaries".

In August 17th, suning.com Tmall flagship shop was officially launched, and it took only one day to become the top ranking of the big household appliance sales in Tmall business. Before that, their old rival Jingdong invested $4 billion 200 million to invest in the 10% stake of Yonghui supermarket, a fresh giant under the line, so as to speed up its O2O entity business.

If we turn back the timeline again, we will find that this kind of attack is almost becoming the consensus of the electricity supplier: Gome online and Hwang Guang Department store have formally concluded cooperation; Tencent and Baidu jointly Wanda Group Group "Teng million" try to break O2O.

Ali's second quarter earnings report showed that the number of active buyers increased the turnover of China's retail platform to RMB 673 billion yuan, an increase of 34% over the same period last year. In 2015, the total volume of Q1 spanactions was 600 billion yuan, an increase of 40% over the same period last year. In 2014, the total volume of Q4 spanactions was 787 billion yuan, up 49% over the same period last year.

Ali's competitors, and those small and medium businesses that Ali followed, are also facing the anxiety of this decline in earnings growth. In the first half of 2015, China Internet retail The amount of 16459 billion yuan, an increase of 39.1% over the same period, the growth rate dropped 10 percentage points over last year.

This is pretty bad for the electric business that has been in the wild type of development. The fact that they need to face is that the development of online business is likely to enter a bottleneck period, perhaps an unfortunate decline period. Of course, the sales scale and user scale of many enterprises are still growing, but the growth rate and growth rate are slowing down inevitably, especially in the first tier cities.

Why electricity providers On-line Growth will be declining. One of the reasons is that the cost of the online industry is increasing rapidly. With the increasing cost of labor and logistics, the proportion of the service consumption that accompanied the economic growth is increasing, and the price gap factors that drive the online crazy buying for a long time are shrinking and becoming more rational. In addition, the tax paid to electricity providers to strengthen supervision has continued. All of these will drive the close of the online and offline spreads.

Another reason that can not be ignored is that after the whole industry has developed to a certain extent, or after the scale monopoly is formed, the business of large business enterprises is beginning to converge and the direction is resonating. For example, Ali platform started, and then increased the proportion of Tmall B2C, and Jingdong did the opposite way, and it has been promoting for many years; Jingdong self built logistics first, and Ali is relying on the rookie set up in 2013 to achieve the pursuit of warehouse distribution system.

In other words, with the intensification of market monopoly, the challenges faced by these providers are convergence: that is, the motivation to rely on the Internet to promote the strong growth of the business is insufficient, the ability to solve problems on the platform is declining, and the lack of capacity under the line becomes a common short board.

And you know, Wall Street and capital markets want to continue to listen to the story will never be such a story, at this time, choose from the line to the bottom line, become the electricity supplier brand to find their new profit growth point of the only way.

Under the left hand line and the right-hand line, thus encroach on the corner of the user's life and achieve a O2O huge commercial empire, this is almost all. Online retailers The ultimate dream of giants.

Such a vision is wonderful. Logically speaking, the value of the electricity supplier under the layout line will cover the following aspects, that is, the establishment of the experience center, the settlement of the last mile problem and the establishment of brand image. If we can achieve a breakthrough in these three aspects, we will undoubtedly be able to obstruct the rapid development of the electricity supplier business.

But the actual situation is quite likely to be quite difficult. Whether it is the choice of resources under the self built line or the joint operation of existing entities and offline entities, it is a matter without any experience and reference.

In addition, the gross amount of cooperation between electricity providers and offline retailers needs to be solved not only by the consumption path, logistics, and the connection of big data, but also by the distribution of interests and the integration of innate retail genes.

What kind of benefits will the combination of online and offline bring? How can we wait? Let's wait for time to give us the answer.