Why Did Jingdong And Vip.Com Hand In Hand To Challenge Alibaba?

According to the world clothing shoes and hats net, in June 2015, Zhang Yong, who was just a month of Alibaba group CEO, said in public: "businesses sell the remaining merchandise in double eleven.

Vip.com has achieved their business model. "

Two and a half years later, Jingdong and

Through the way of capital operation, we announced the success of hand holding. Now, the electricity supplier of the market is recognized as the second and third generation of e-commerce providers to jointly challenge Alibaba.

To some extent, this is not the only choice for Jingdong, but it is the best choice for vip.com. Jingdong (WeChat) will become vip.com's mass.

The best export brand, and as Jingdong in the layout of fresh clothing and other products are getting more and more finished, Jingdong's demand for vip.com is getting smaller and smaller. From another point of view, this is also the best time for Jingdong to start with vip.com. Vip.com has changed many times from "demon stock", but it has not been very successful. Only the core business of "three or four line city" + "dress" still maintains a certain position, which has brought vip.com's share price to its lowest point recently.

In the face of the question of why vip.com will accept direct competitor Jingdong's investment, vip.com's answer is a strong complementarity in terms of product category and user structure: "vip.com 300 million members have more than 80% female members, clothing wearing and beauty makeup are vip.com's core advantages; Jingdong started with 3C digital category, and male users account for a relatively high proportion."

Business is easy, but business is hard.

In the most beautiful years of vip.com, its market capitalization was close to 18 billion US dollars, more than 60 times its lowest point, and its market value was only inferior to Tencent, Baidu and Qihoo 360.

When vip.com was launched on the end of 2008, it did not cause much concern in the industry. The business model of "famous discount + limited panic buying" was not uncommon. Some group buying websites had also focused on this field in the early days, but vip.com carried it to the end.

According to the investment report issued by the Deutsche Bank, vip.com has in fact dominated the retail discount market in China.

Thanks to brand bargaining power and high repurchase rate, vip.com gross profit is more than 20%, far higher than other Jingdong B2C platforms such as Jingdong and Dangdang.

The core competitive edge of vip.com is the women's shopping eco circle consisting of Oriental fashion, Lok bee net and vip.com. This ecosystem includes all kinds of merchandise and has its own system.

But after that, vip.com seems to have reached the ceiling of growth. With the saturation of users in the three or four tier cities, the conservative marketing cost has begun to become radical, resulting in a decrease in gross margin.

And in its core competition of clothing category, or the sale area, Jingdong, Tmall, Juhuasuan and other electric providers are eager to try.

To make matters worse, the most popular part of the fight is the fight between the eldest and the second.

It seems to be on vip.com too.

According to the monitoring report of China Electronic Commerce Research Center, Tmall + Jingdong has a total B2C share of 74.7%, which is unbreakable. Although vip.com ranked third, it is not as good as 1/10 of the previous two.

In recent years, vip.com's pformation has been constantly moving. In terms of expanding categories, it has launched such channels as beauty makeup, parent-child paradise and home life. It has cut into several fields, such as cosmetics, mother and baby, home and 3C home appliances. At the same time, it has also made efforts in cross-border e-commerce, focusing on post-90s, net red buyers, consumer finance, and logistics independence.

But in fact, from vip.com's page, we can see that vip.com's core business is still clothing category.

However, 20 consecutive quarters of profits have proved at least that the core competitiveness of the high priced passenger unit is to maintain the directional advantage, and the use of high repeat rate to revitalize the platform activity, plus KOL's "authentic appraisal day group", vip.com is still an indispensable pole of China's electricity supplier.

The money bag of her economy

It is said that in the Jewish business practice, it is clear that the two most profitable goals are: mouths, two women.

Coincidentally, Ma Yun also said publicly: "women get the world".

In recent years, the electricity supplier has emerged "her economy": some economic experts believe that women's economic independence and independence, strong consumer demand and consumption capacity means a new economic growth point is taking shape.

From the needs and consumption groups to divide, the vigorous development of women's consumption demand has led to a series of new consumption trends, providing unlimited opportunities for businesses, but also poses greater challenges.

In 2013, Liu Qiangdong ridiculed, "most retail platforms, more than 50% of male users are losing money, and only half of female users have the opportunity to make money."

According to a survey, 89% of clothing items that women most like to buy online are Jingdong's most valued areas of growth.

At the end of 2013, when he was the vice president of Jingdong group and general manager of open platform, Ying Ying Chun released internal mail, he said Jingdong was "softening". The core goal of this "softening" is clothing, beauty, life and other industries, so as to wash its inherent 3C flavor.

Alibaba stakeholders have revealed that Taobao pages are based on women's aesthetics, and advertisements also have strong feminine traces. This is because the "power" of female users is very important to Alibaba.

In 2011, Jingdong announced that it began to expand to the whole category. In 2015, the third party open platform (POP) was established, and Jingdong group CEO Liu Qiangdong said that sales of proprietary and open platforms accounted for 50% of the total sales of Jingdong.

All along, Jingdong's flagship 3C category accounts for more than 50% of its sales, but the price of 3C category is more pparent, and its gross margin is low. Over reliance on 3C appliances will make Jingdong continue to lose revenue.

The clothing category as the first category of e-commerce sales, a wide variety of commodities, gross profit is higher than the 3C category.

In addition, the seasonal consumption of clothing makes the consumption frequency of clothing higher than that of 3C category.

Jingdong's softening strategy has made some achievements. Data show that last year, double 11 Jingdong clothing household category orders accounted for more than 40% of the total station.

Among them, women's clothing orders become the first category, and cotton coats and down coats are the three major categories of women's clothing in winter.

In March this year, Jingdong fashion department independently split out from the clothing and home business division, which was interpreted as "rip a hole in the costumes of Tmall's advantage".

But this year's double 11, which has been the fastest growing clothing business in the world, has suffered a serious setback in recent years. Liu Qiangdong said at the meeting after this quarter's earnings report that the growth of clothing sales of Jingdong almost stopped in the current quarter.

The good news is that Yang Donghao, chief financial officer of vip.com, once said that more than 80% of vip.com was female users. Most of the Jingdong retailers did not abandon vip.com's platform. After joining vip.com, the growth of female users will become the main source of Jingdong's increment.

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