Vip.Com Closed Down For Strategic Adjustment?

Recently, there was news that

It will terminate the "punctuality purchase" project from August 10th, and all supplier contracts will be terminated in advance.

Soon, vip.com officials confirmed the reliability of the news. The company said that the "stop on sale" project was stopped because of the adjustment of the company strategy.

The company will start the process of refund of goods returned from suppliers and the refund process of margin from the 3 point of August.

At that time, the company's relevant business, warehouse and other personnel will assist each supplier to complete the exit procedure according to the process, and refund settlement will be carried out normally.

Vip.com, once a highly touted domestic sale platform, has been controversial in recent years.

But these doubts are not only aimed at vip.com, but also reflect the market's concerns about the future of vertical electric business.

Transformation and innovation have become the problems that the industry has to face at this stage. Vip.com's terminating the "punctual purchase" project also reflects the pformation of this industry into a sprint stage.

Buying and selling the prisoner's dilemma in vertical electricity providers

Punctual purchase is a APP designed by vip.com to produce sharp goods. The APP offers many products such as food, clothing, shelter, pportation, entertainment, learning and playing. It attracts users with lower price discounts, and is committed to creating low price explosions.

At the beginning, the purchase of punctuality was an attempt by vip.com to find new profit growth points. Of course, it was also affected by the rapid development of electricity and Commerce in recent years.

Vip.com's original advantage is in the field of trade in services, but today, under the influence of the global financial crisis, the profit margins in the field of trade and clothing have been greatly limited.

,

The rapid development of Suning and other large e-commerce platforms forced vip.com and other vertical electric providers to expand their business areas.

But the selling point of punctuality is in conflict with vip.com's own positioning. The lower price model of the goods is attractive, but it also allows users to question vip.com's price positioning. Is vip.com's commodity price still falling?

For vertical electric providers, this goods group buying mode is like killing the goose that lays the golden eggs, and has fallen into a prisoner's dilemma in the competition with the large and whole electronic business platform.

Small and beautiful and big and all become a dilemma, but in today's highly competitive electricity supplier industry, the latter has become the most common choice of most people.

Small and beautiful vertical electricity providers hide opportunities and risks

The vertical electricity supplier's heyday began with vip.com's landing on Nasdaq, and investment circles and domestic business circles all shouted for vertical electricity providers. Vip.com enabled many vertical e-commerce entrepreneurs to see hope and future.

Until the success of jumei.com IPO in 2014, the domestic vertical electricity supplier development really reached its peak. More and more vertical providers hope to land in the capital market.

However, after 2014, this subdivision industry is facing a comprehensive reshuffle. The new stars such as Yue Tao and Yue Feng have been falling down. In 2015, vip.com, jumei.com and other representative enterprises also saw a slowdown in sales growth.

Take vip.com as an example. Since landing in the capital market, vip.com has been known as the "monster stock" title. Its stock price reached a record high of 30.72 US dollars in April 10, 2015, and its market value was as high as 17 billion 879 million US dollars.

But by the end of 2015, vip.com shares had fallen to 50% of the high point, with a market capitalization of only $8 billion 835 million.

There are three reasons for the decline in its share price.

First, the growth of operating revenue has declined sharply.

From the first quarter of 2015, vip.com's operating income grew at a slower rate of less than 100% for the first time. After that, vip.com's performance growth rate continued to decline rapidly.

Although the first quarter of this year's annual report shows that vip.com achieved 14 consecutive quarters of earnings results once again refresh the electricity supplier industry record, but its revenue growth slowdown is still an indisputable fact.

Second, the limitation of profit space.

Vip.com's development has entered a stable period and its gross margin has been maintained at 25%. This data has been maintained for 14 quarters, although vip.com has made many adjustments and enrichment to the product structure, but there is no obvious improvement trend.

Third, the growth rate of users is slowing down.

According to vip.com's first quarter report, the total number of active users in the quarter increased from 12 million 900 thousand in the same period last year to 19 million 700 thousand, an increase of 52% over the same period last year. However, this figure is still significantly slower than the 180% growth rate in the first quarter of 2013.

But vertical electricity providers are not only risk, there are still many opportunities in some areas.

For example, with the opening of the "two child policy", the mother and infant electric providers greet the spring. After experiencing the 2015 reshuffle shuffle, the maternal and child type electricity supplier entered the final "settled" period in 2016.

According to the "H1 maternal and infant electricity market report" released in 2016 by the Express Highway Research Institute, the scale of China's maternal and child e-commerce pactions reached 360 billion 600 million yuan in 2015, a growth rate of 98.3% over the year, and the electricity business in 2016 is expected to reach 964 billion 500 million yuan, and the growth rate is 167.47%.

The growth of the electricity supplier market has become the main growth point of China's mother infant market, and the market for maternal and infant supplies has been exploded in 2016 under the continuous influence of the second child policy.

The addition mode becomes the magic weapon of vertical electric business.

For the future development direction of vertical electric providers, the industry has been discussing for a long time. The basic controversy is whether the mode of integrated electricity supplier and vertical electricity supplier is better, whether there is no standard answer for whether to continue to subdivide the market or to seek big and full.

Market segmentation can provide users with better services and achieve high customer stickiness. However, the development of the model will lead to a bottleneck stage and it is very difficult to achieve breakthroughs.

The large and full mode has a high entry barrier at this stage. Alibaba's Tmall, Taobao and Jingdong have formed an insurmountable scale. To pform and defeat them is a very arduous task.

Today, some business platform pformation ideas have chosen the addition mode. Under this mode, the electronic business platform adds new synergy fields in the original fields, resulting in a different implementation of 1+1>2.

{page_break}

For example, the electricity supplier + community + online offline experiential content service mode, which is based on the baby and infant electronic business, is based on the first time when mothers need to learn how to choose infant products and how to choose an electronic business platform. Honey buds set up the honey buds circle community, encourage mothers and babies to reach users and grassroots users to share the experience of selecting and purchasing goods, and introduce graphics, videos and live broadcast to enhance user stickiness.

At the same time, according to the offline experience demands of mothers and infants, enhance the offline experience and interaction to meet the rigid demand of children's experience.

Another development of vip.com in the field of financial services is also an addition. In 2014, vip.com applied for the payment of licences and began to enter the Internet financial field.

Vip.com 160 million accumulatively registered users, the number of active users up to 36 million 600 thousand, this user group has become the basis for its early development in the field of Internet finance.

In this user group to do deep, thorough, to achieve differentiation.

Vip.com has a 80% share of female users on the platform, while women are becoming the main force of financial management. It has launched a personalized financial product with "simple choice, simple product and safe funds". The mode of "consumption + financial management" will also become the focus of vip.com development in the future, which will add new impetus to the company's future growth.

2016 is the turning point of the development of the electricity supplier. During this year, many large platforms have achieved joint development, and online and offline have entered the fusion period. As a sub field, the vertical electric providers will also face rapid pformation. The choice of the right areas will become the key to win the increasingly fierce competition in the future.