Vip.Com Has Become The World'S Only Self-Employed B2C Business For Three Consecutive Years.
As we all know, China's electricity supplier industry competition environment is fierce, Ali Jingdong two giants far ahead of the industry, pioneers either become martyrs or acquisition, such as patting, good fun buy, easy fast, or increasingly marginalized, such as Dangdang, wheat bag and so on.
Vip.com, founded in 2008, is almost the only exception. It not only survived but also lived very well. Besides the platform electricity supplier Ali, vip.com was the only one to achieve sustained profitability. It is also the only self dealer in the world to achieve continuous profit in the 12 quarter.
As a website specializing in sale, what is the secret of vip.com riding a dust? What is vip.com planning for the future?
In the seven years since its establishment, vip.com has registered more than 100 million members, with orders exceeding 200 million, the number of employees increased from 25 to more than 20 thousand, and the net revenue in 2014 has reached 23 billion 600 million yuan. In the first quarter of 2015, net revenue was more than 26 billion.
Vip.com's secret weapon to break out of tight encirclement is actually differentiation.
Even Jingdong, which started their own businesses, can't afford to start an open platform, but vip.com still insists on self financing. Vip.com is even a bit anti Internet, such as no search.
Vip.com, who does not follow suit, seems to have been very independent.
Taobao emphasizes that diversity, omnipotence, and mass products are different. Vip.com has always been a boutique route.
Vip.com's position, drawing on the experience of the traditional retail market, vip.com vice president Feng Jialu believes that the business and the traditional retail market in business development logic is similar.
There are three forms of offline Market: grocery market, supermarket and shopping center. Behind the upgrading of formats, the basic demand of commodity richness is enhanced to the degree of professionalism, and finally to the evolution of shopping experience.
And the development path of the electricity supplier is basically similar. First, there are all kinds of market fairs, and then there are Tmall and Jingdong similar to the big supermarkets. Vip.com does not provide mass products. At present, the brand of cooperation is not more than 10 thousand. However, the brand and good shopping experience of the selected sale have quickly gained a large number of loyal users. After four years, vip.com went on the market in the United States. Its share price rose from 228.6 dollars in March 2012 to 228.6 dollars in early November 2014, and once became the highest share price in the stock market.
Seven years after its establishment, vip.com has no search function, which seems very anti Internet.
The reason is very simple, vip.com wants to reproduce the experience of casual shopping under the line, because vip.com users account for about 8 of the total number of women, while women who have certain spending power do not always think about what they want to buy when they go shopping, but when they go to the likes and the right prices, they will buy it.
Feng Jialu believes that in Taobao, Jingdong and other mass goods platform, the search is targeted at a clear demand for consumption, such as holding a shopping list to go to the supermarket to buy daily necessities, what is missing at home, what to buy, while vip.com meets the demand of non rigid or shopping style.
Since the satisfaction is not just consumption, it is decided that vip.com's category is non-standard products.
Besides luggage, clothing, shoes and clothes, vip.com is entering the field of mother and infant.
In many maternal and infant electronic business platforms, milk powder and paper diapers are the two largest trading products. Vip.com also sells milk powder and diapers, but children toys and
Children's wear
Children's shoes and other non-standard products are the key points of vip.com.
And this is caused by surprises.
Shopping style shopping
To attract vip.com's female users, every day to visit, vip.com's repeat purchase rate reached an astonishing 90%, which is also the key to vip.com's net profit.
7 years after its establishment, vip.com has been insisting on the sale mode. This simple mode has been imitated, but it has never been surpassed.
Just like in the United States, luxury goods are opened in Fifth Avenue, which is a bustling area, but they are open to outlets in remote locations far away from downtown.
There is a new product on the flagship store of the platform electricity supplier. As a special sale platform, vip.com is selling special discount products on sale, and because it is a special sale mode.
Discount?
It is temporary and will not affect the terminal price of flagship stores. Therefore, it is easier to persuade merchants.
Secondly, time limited sale means scarcity to users and reduces their hesitation index.
When the self-employed Jingdong and Amazon are making an open platform in a hurry, 95% of vip.com's products still insist on self run, and this mode will continue. Why? The temptation of the platform is really great, for example, it is enough to improve the product richness, and rapidly improve the scale and performance.
However, vip.com has resisted the temptation, because self financing can maximize the quality guarantee. The one thousand buyers only select 10 thousand brands, more like foreign retailers, and also make vip.com and the general Internet electricity providers different.
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