How Can Taobao, Jingdong And Vip.Com Appear From Offline Retail Evolution?

Vip.com recently released its 2015 third quarter earnings report, with a total net revenue of 8 billion 670 million yuan, up 63% from 5 billion 330 million in the same period last year.

As of the third quarter of this year, vip.com once again refreshed the electricity supplier's record, making profits for 12 consecutive quarters.

Meanwhile, vip.com's operating profit increased by 241% to 436 million yuan in the third quarter of 2015 compared with the same period last year. Gross profit increased by 63% to 2 billion 160 million yuan compared with the same period last year. Net profit rose 90% to 317 million yuan compared with the same period last year, and the key indicators of various company operations continued to grow strongly.

Under the influence of favorable financial results, stock prices have rebounded steadily, and all major investment banks have been optimistic, continuing to give a buying rating and raising their target share price.

Data shows that the emergence, rise and flourishing of vip.com, which is famous for its special sale mode, is no accident.

Turn around and look at the whole line.

The development of Taobao, Jingdong and vip.com will not be difficult to find. The gradual emergence of the three, everything can be found regularly.

It is precisely because of compliance with the law of development, vip.com's development prospects are considerable.

Stage 1: bazaar VS Taobao

Before the birth of money, people needed everything through barter, while the fixed exchange place was the earliest form of the market. After the birth of the currency, the bazaar mode became more and more standardized.

The bazaar is the most crude mode of human early business, and its form has continued to this day, and the market still exists in towns and towns where pportation is still underdeveloped.

The market is the early form of the commercial platform. It only provides stalls, relies on stalls to collect rents, businesses do not have brands, and needs to rely on themselves to shout.

At that time, the backward productivity of the economy and the low consumption ability of the consumers led to stronger consumer targeting.

The same is true of Taobao, which was born in the early days. On a deserted Internet land, Taobao built an original market. Taobao did not intervene in the business operation of the business, only the very basic online paction service. The early merchants did not have any brand names. Anyone who wanted to do business could set up shop in Taobao, and the quality of the products offered was uneven. Its early function was at best a simple supplement to offline retail.

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Like the bazaar, Taobao has the mastery of the commercial population flow and relies on real estate rent-seeking. Of course, this kind of rent-seeking is different from traditional facade leasing, and it is free to shop. But Taobao relies on store dress, through train advertisement, invoicing and storage management and other value-added services to achieve profitability.

The basic function service is free and makes use of value-added services to make profits. This is also a typical way of playing Internet.

The second stage: department store VS Jingdong

The first revolution in western Retailing was marked by the first department store in Paris in 1852. In department stores, consumers can buy almost all daily necessities, and department stores sell standardized sales and inventory management. Consumers can buy almost all the necessities of life in department stores, and have perfect after-sale services.

The second and third retail revolution brought by super supermarkets and supermarket chains can be seen as a derivative of standardized services in the retail industry.

Compared with the bazaar, department stores have more management requirements such as warehousing and logistics personnel allocation. The "quality management" brought about by the "high quality" consumption experience is unmatched by the "light" of the market, and it solves the problem of the efficiency of the purchase to a higher extent.

Another feature of department stores is the greatest degree of standardization. The products sold are universally characterized. Of course, because of this universality, consumers are still necessities in consumption behavior, and are characterized by high purposeful and price sensitive characteristics.

Department stores solve the problem of the efficiency of the retail industry, and the emergence of B2C mall, such as Amazon and Jingdong, corresponds to this stage.

Jingdong is an online department store, which builds warehousing, logistics and distribution at a high cost, so as to solve the problem of efficiency that Taobao has not solved. Its efficient delivery service and better delivery on the same day meet users' demand for quick demand. The consumers who choose Jingdong are waiting to pay for their perfect logistics and after-sale system.

Jingdong mode is similar to department stores, and users are captured by improving user purchasing efficiency and perfect services. Jingdong also has not given up the market mode at the same time. It has a business like Taobao, which belongs to the market + department store mode.

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The third stage: Shopping Mall VS vip.com.

The early market and department stores, in the final analysis, are all about the efficiency of the retail industry. The demand of consumers is more focused on the consumption of necessities. But after the economic development has reached a certain level, people's thirst for experiential consumption is also gradually increasing. Among them, the representative is the Shopping Mall shopping center established in the developed countries such as the United States in the 50s and 60s of last century. It usually includes large supermarkets, brand stores, food street, cinemas, coffee shops, game rooms and other entertainment shops, and is one of the mainstream retail consumption forms in developed countries.

In shopping centers, consumers are more of a shopping attitude. It is the process of experiencing consumption and creating the demand of consumers' consumption of non essential goods.

This experiential consumption is moving.

Times have been more thoroughly aroused, catering O2O, entertainment O2O, hand travel and so on are experiential consumption, back to the field of electricity supplier, the early Taobao's rough market form has long ceased to exist, poor low-quality, non differentiated merchants have been eliminated, the experience consumption of brand traders has risen, but because of the single mode of Taobao Jingdong diversion, it can not afford all the quality brands, and brands are eager for more opportunities. Under such circumstances, vip.com and other e-commerce sites were born.

The similarity between vip.com and Shopping MAll mode is that the crowd of Shopping Mall Mall is basically shopping style shopping, and the consumer oriented vip.com also belongs to shopping style, which is not sensitive to price and has strong purchasing power.

Secondly, the biggest difference between vip.com and other e-commerce sites is that they do not set up search boxes, and this is also a screening strategy for target users. Users who use the search box generally have a clear purpose of consumption, while the user group targeted at the product club is created to meet demand instead of creating demand.

The potential energy of vip.com comes from the development of brand electric business.

The Bible once said, "what is already there will be later; what has been done will be done in the future.

There's nothing new under the sun, "the whole online retailing."

Development is also like a reprint of offline retailing development. Business platform complies with the simple and complex evolution rule. In the early stage, it only meets simple paction needs, while in the medium term it is standardized demand. When all infrastructure is completed, the experience economy will eventually become popular and the brand will emerge.

The pursuit of high cost performance for brand, quality and experience is the opportunity for vip.com to continue to develop rapidly.