But Where Is The Vip.Com Road, Which Has No Choice But To Return To Sell Itself?

The days of pure e-commerce platforms are getting worse and worse. Online users' dividends will be exhausted, the cost of traffic will be high, the access of new users will be difficult, and the operating costs will gradually increase. This series of problems will be difficult to avoid in the future development of the pure e-commerce platform.

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The latest report was released, with a net profit of 681 million 600 thousand yuan, which is vip.com's 23 consecutive quarterly profit.

It is not easy for vip.com to continue to make profits in the competition of electronic business platform, but the scale of net profit is different from that of Ali and Jingdong.

With the rapid development of many businesses, it has become the first tier supplier of electric business. Far away from vip.com, vip.com has to take action in the third place.

Chairman and CEO of vip.com

Not long ago, at the mid year strategic meeting, vip.com announced that it would return to the sale of the first place, which will continue to focus on the sale area.

The competition of electronic business platform is becoming more and more intense. Can vip.com return to the starting point and be able to pick up a whirlwind? Vip.com faces more and more rival threats. Can it still defend its territory in the vertical field? Where will the future of vip.com go?

Vip.com used to have a market value of nearly $20 billion, but in just three years, its market value has shrunk by nearly 3/4, and its market value is currently only $about four billion.

Vip.com was once known as an electronic business monster, but its development is no longer the darling of the stock market. Its development is no longer optimistic.

Such a big stock price volatility of vip.com is still due to the low expectations of investors for its future expectations. When expectations change, it will naturally affect volatility.

The embarrassing situation of vip.com is that although it has been making profits, its growth rate is slowing down, and there is nothing new to prove that its profitability can be maintained.

In order to increase business profits and expand user groups, vip.com has also been actively trying to expand its category and expand from vertical e-commerce to platform based e-commerce, which is basically the general rule of vertical business development.

It seems to be an omnipotent criterion, but it is a pity that vip.com is not happy on this road.

First, other competitors, Ali, Jingdong firmly occupy the position difficult to shake; two is vip.com's own positioning is still a special sale, other products do not have a special advantage to attract users.

Vip.com's original customer group is a female user, and the main business is mainly clothing products.

In order to expand products, vip.com has also launched mother and baby, footwear, cosmetics, sportswear and sporting goods, home products and other products.

Although the products on the platform have been expanded, it seems that vip.com has not played an important role in enhancing its wings. It has not yet made great breakthroughs in the competition of all categories of electronic business.

According to the market share of the domestic electricity supplier platform released in the first half of 2018 according to research company eMarketer, the latest data show that Alibaba Group continues to dominate China's online shopping market with 58% market share, while Jingdong accounts for 16.3%, of which vip.com occupies only 1.8% of the total market share.

The gap between vip.com and e-commerce giant Alibaba and Jingdong is too great. If we continue to invest more in the whole category, it may only increase the cost of expenditure, and we can not narrow the gap with ALI and Jingdong.

In addition to the pformation of the road is not smooth, in fact, vip.com's advantage in the main business is also gradually weakened.

Vip.com also knows that it is not wise to focus more on areas that are not good at it.

In the face of the continued decline in share prices, vip.com needs to find a direction for shareholders to approve. The return to sale may be a struggle for vip.com, but can it really save it?

In, the location of vip.com was really unique, attracting many female users successfully. This precise positioning also made it a leader in the vertical field of e-commerce, helping it to go on the market smoothly.

But vip.com later made various attempts from different fields to increase business revenue, but it didn't have much effect.

In order to have a place in the field of e-commerce, vip.com will adjust its strategic development priorities, return to the "special sale" strategy, focus on "buying good goods", and open online stores to focus on selling special clothes.

Once again, the focus of business returns to special sale may not be able to save its current development.

After several years of rapid development, the electronic commerce platform has become more and more subdivided in various fields. Even in the field of sale, many types of platforms have been derived.

For example, jumei.com, discount 800, Chu street, Juhuasuan, etc., they are also snatching market share in the field of sale.

Although in recent years, vip.com has also launched cooperation with more clothing brands, further increasing the types of products on sale, but Jingdong, Ali giants provide similar vip.com models, continue to exert strength in clothing and footwear category, and weaken the living space of vertical providers.

In March last year, Jingdong split the clothing and home business part into the Department of dress adornment and the Department of home life.

The Department of dress and adornment includes eight major business departments and related support teams, namely, the clothing department, the clothing department, the sports and fitness department, the shoe and luggage department, the luxury jewelry department, the watch business department, the international brand department, the big clothing brand and so on.

This is enough to show Jingdong's attention to clothing category.

Vip.com wants to continue to increase its own advantages in the field of sale, brand resources and user traffic is a key factor, but unfortunately, user traffic has become the common difficulty of the e-commerce platform.

Compared with the diversification of user groups in the whole category of e-commerce platform, the user groups of vertical electricity providers are naturally single.

Among vip.com's current user groups, female users account for the majority.

Vip.com CFO Yang Donghao also revealed that more than 80% of vip.com was female users.

The excessive dependence on female users, especially the lower purchasing power of lower age users, has hindered vip.com's further development to a certain extent.

The growth of new users is slowing down. From the annual report of vip.com, it can be seen that the number of active users in 2017 (once buying behavior) is 57 million 800 thousand, which is 11% higher than that in 2016, compared with 52 million 100 thousand in 2016, compared with 42% and 51% active users in the previous two years, the growth rate has obviously slowed down.

To rely on new users to drive business volume is also a great challenge, and the electronic business platform is facing increasingly difficult customers.

At the same time, due to the rapid development of other platforms, to a certain extent, a number of vip.com's old customers have been taken away.

With the growth of vip.com business facing the ceiling, the company has developed to a certain level, and it is difficult to maintain high-speed growth.

Vip.com plans to open a special store online, possibly to a certain extent, because the new retail hot trend prevails, and the electricity giant Alibaba and Jingdong have laid the layout under the Internet. Vip.com naturally does not want to miss the new retail business opportunities.

Only the traditional clothing entities such as HM, ZARA, UNIQLO and so on have been the source, channel and experience of the deep ploughing that they have been online for years.

At the same time, for vip.com, there are still challenges for online downloading special clothing, whether it can achieve a strong supply chain, streamlined inventory turnover and low price advantage. After all, it needs to have certain resources to precipitate, and it needs to have a certain market research on the clothing market, and it can see clearly what kind of clothing the consumers are most interested in.

It can be said that the challenges faced by vip.com online can not be ignored.

For vip.com, how to stabilize its own advantages and gain business growth is the key direction of its future development. It is still very difficult to catch up with the third of the electricity supplier. But if we can grab some market share, we can prove that it still has room for development.

In the future, vip.com may take the following three aspects as a breakthrough.

Although clothing is the main market for female users, as more and more male users increase their online shopping frequency, they actually buy Apparel products online as a demand.

How to attract more male users is indeed a direction. They may be more interested in sports products than female users, and combine some activities to increase men's purchase needs and stimulate their consumption on the platform to increase vip.com's business income.

The biggest beneficiaries of social networking providers are not many spells, so that it not only gains the volume of traffic and the volume of orders, but also allows them to go public in a short time.

For vip.com, Tencent's stake in Jingdong is at least partly guaranteed by giants in the electricity business camp, especially WeChat, which provides a platform for third party services.

How to make further use of Tencent's social resources in the future will be a focal point of its efforts.

Small program has become a new entrance in the mobile Internet era. Vip.com must grasp this business entrance and how to make full use of the platform to give full play to its own advantages.

Although vip.com is now the largest number of platforms to cooperate with clothing brands, how to cooperate with more famous brands is still the key point, such as luxury brands.

Recently, there are also a lot of big brands starting to get involved in the field of electricity supplier. Vip.com should actively cooperate with them. Luxury brands can help vip.com attract more users with purchasing power, and improve vip.com's credibility in the protection of genuine products. This is indeed a good direction of cooperation.

It is easier for vip.com to put all the fighting energy on a target in the return sale, but it is easier to stop the opponent than the scattered force, but the sale area is not as good as that year. Now many competitors are jealous of this bonus.

What weapons vip.com will use to grab the market will be the weight of its further distance.