Stepping Into The New Normal Business Mode And Avoiding Disruptive Destruction

The electricity supplier is a disruptive innovation for traditional retailing, which is essentially different from the traditional offline retail in terms of user acquisition, product selection and after sale.

Also because of the enormous convenience brought by disruptive innovation, the electricity supplier industry quickly gained the user's attention at the beginning of development.

Today, the development of electricity providers to such a scale, and the traditional retail industry's resistance, means entering the "strategic stalemate", the two party should be changed from hostile state to mutual coordination.

The electricity supplier industry needs the cooperation of high-quality products in the retail industry to complement each other, while the traditional retail industry needs to reform its own business mode with the help of the electronic business platform, integrating traditional retail and electric business, and achieving win-win results.

First, the new mode should break through the continued low price of the electricity supplier.

The low price is very attractive to the users, while the traditional retail enterprises are not able to cope with the price war.

Strictly speaking, the electricity supplier has gained the pricing power of the product nowadays, and the pricing of the manufacturer first refers to the electricity price system.

But the consequence is that the electricity supplier will become bigger and bigger, and if it is not handled well during this period of change, it will bring about many social problems.

Therefore, under the new normal, if the electricity supplier wants to coexist peacefully with the retail industry, it is first necessary to break its own low price war.

Then the problem is coming. The low price is the killer of the electricity supplier. How to make it? Vip.com's sale mode is worth learning from the industry: special sale is still low price, but it is a time limited snap up. After the sale, the price of the product will return to normal, that is to say, through the dynamic sales mode to alleviate the impact of constant low price on the retail industry.

In this way, the sale mode can be regarded as a part of the product marketing of the manufacturer, and a large number of initial users are obtained through the sale, and the subsequent recovery of the price system does not affect the sales volume of its traditional channels.

The two can live in peace.

Although traditional retail seems to be a bit of a disadvantage, traditional retailing still has a high voice in some commodities, such as beauty makeup, such as big brand clothing, such as well-known maternal and child products.

On the one hand, these categories of prices are relatively stable, and do not want new channels such as electricity providers to break their own price system. On the other hand, behind the stable price system is the support of layers of agents.

This also means that traditional retail channels still have many exclusive channels for commodities.

If we want to seek sustainable development in these categories, we must break through the monopoly of traditional retail commodity supply through innovation of its business mode, so that we can be convinced and cooperate with them.

As mentioned before, vip.com mode, through its business model innovation, has set up a buyer team of more than 1000 people and most of them from the traditional retail industry. It has the ability to cooperate directly with the brand, plus the characteristics of quick sale and quick payment, and the high quality user resources of high repeat purchase rate and high unit price, which is supported by many brands.

The electricity supplier gets the market of commodities, and the business mode innovation of the electric business enterprise, its market return is also obvious.

Strictly speaking, the monopoly of traditional retail brand channel can also be regarded as a monopoly on product quality, because users are obviously inclined to trust the brand recognition sales system under the monopoly of products.

To break the monopoly of the retail industry, we need to strengthen self-discipline and strictly manage the supply chain.

Taking vip.com as an example, it recently announced the introduction of an international authoritative third party quality inspection agency, Switzerland SGS, to conduct independent third party rolling sampling inspection of the mother and infant products sold by vip.com, and with the "brand authorized genuine" and "Pacific genuine insurance" constitute the "quality guarantee Golden Triangle" for the mother and baby.

The intention is obvious that in the business mode, it is necessary to break the monopoly of traditional retail products, and to break the monopoly of quality in the quality inspection mechanism.

As a matter of fact, the mainstream e-commerce mode has won the favor of users from the business mode and user habits, thus creating a shock to traditional retailing.

Due to the considerable benefits of traditional channels, the traditional retailer lacks motivation in the area of electronic commerce. However, traditional retailing still holds more than half of the retail share, especially in special products.

The electricity supplier and the traditional retailing should be a cooperative relationship now. It also means that we should abandon the old business mode of the mainstream electricity providers to seize the traditional electricity market. At this stage, there should be a new electricity supplier norm to promote the integration of the two.