Big Business Is Launching New Services Strategically.

According to the world clothing shoes and hats net, last year's global

In the format survey, we emphasize

Platform is an important entry of consumers' shopping path.

Because of its high convenience, expanding coverage and private ownership

The introduction of their dominant position is growing day by day, which is still the theme of this year's fashion pure e-commerce and multi category e-commerce platform.

For example, Amazon is expected to become the leading apparel retailer in the United States. Its market share is expected to exceed 8%. India electric supplier Flipkart occupies 40% of India's online fashion sales.

However, due to the maturity of the market and the intensification of competition, the potential of earning growth driven by tourists has begun to be saturated.

The next stage of the development of the e-commerce platform is to diversify business models through know-how and knowledge to enrich products and services for consumers and brands.

The game is in progress.

The evolution of the platform has brought about the opportunity to create higher profits at the same time of expanding the scale to replace the rapid growth in recent years, which has no significant profitability.

According to the analysis of McKinsey s Global Fashion Index, the profit of the electricity supplier is always lower than that of the entity retailer. The average profit before tax and amortization in 2017 is about 4%, while the traditional retailer is about 8%.

Of the 16 publicly listed e-commerce providers, there are 3 businesses with more than $100 million in revenue.

For example, the profit margin of Yoox Net-a-Porter 2017 is -5.2%, while the year-on-year growth rate is 35.6%.

Some private businesses are also unprofitable. For example, according to the report, the EBITDA of Farfetch (IPO) in 2017 was about -14%, although its revenue has increased by 74%.

Although investors in the leading e-commerce industry are often patient with profitability, the valuation of some small and medium private providers reflects poor performance.

It was reported that fab.com, which used to be worth $900 million, was sold to PCH at the price of 15 million to 30 million dollars in 2015. Rue La bought Gilt Groupe at a price of less than 100 million US dollars in 2018, far below the 1 billion dollar of a valuation.

In such a wake-up call, big business is launching new services strategically.

They take risks in areas of competitive advantage, such as Farfetch and Zalando's white label products, or to enter areas with structural opportunities, such as Alibaba's XPressBees.

They also invest heavily in technology in the entire value chain, aiming at improving operational efficiency and simplifying customer experience.

In fact, the expansion of Alibaba has promoted the digitalization of the whole retail industry in the whole country. This has been illustrated by the investment in various payment solutions (Paytm, Kakaopay), logistics XpressBees (XpressBees) and quantum computing cloud services (SenseTime).

Among other recent initiatives, Flipkart's new AI plan reflects its internal use of machine learning and other advanced technologies to monitor products and expenditures.

The plan aims to encourage data science and promises to invest hundreds of millions of dollars to build new artificial intelligence solutions.

In other cases of diversifying electricity suppliers, Flipkart Holdings Myntra acquired the mobile terminal content aggregator Cubeit in 2016, and bought InLogg, a logistics company that integrated logistics providers in 2017.

In Europe, Zalando is promoting marketing and order fulfillment solutions, establishing partner programs, and acquiring AI start-ups.

The company says it wants to become the Spotify of the fashion industry. Its strategy focuses on four key areas: product information classification, demand growth (such as localization marketing and data driven marketing), digital experience and convenient services.

In September, David Schneider, co-founder of Zalando, told BoF: "we want to create an entry for consumers, and at the same time, it is also the most compact platform for brands.

According to the analyst's report, in the long run, the non core services are expected to contribute about 10% of profits to Zalando in five years, the current figure is 2%, and will increase at least 250 basis points for pre tax profit (EBIT). "

Finally, Farfetch has always been the trump card service Black&White provides the white label business solutions for luxury fashion brands, which enables Farfetch to take advantage of its technological capabilities beyond its core products and services.

In April 2018, the company launched the Dream Assembly, and acquired Curios in July to expand its influence on social media in China.

Stephanie Phair, chief operating officer of Farfetch, said: "what I find interesting is that we have entered a dialogic trade, and customers are increasingly creating a one to one shopping relationship through SMS and one to one requests."

He refers to a company called Fashion Concierge recently acquired by the company.

Similar clues led to many initiatives.

Most large electric providers have launched data and analysis products and services. Their expansion has the support of the parent company's scale and ecosystem.

The supply chain and the payment process are both the focus of innovation.

In addition, many companies support their consumption proposition by promoting private brand and content platform to create new revenue streams.

Most importantly, they show a clear intention to become the preferred platform for consumers in the increasingly competitive market segments.

Nevertheless, the smaller electricity providers still have room for survival.

Mike Smith, chief operating officer of Stitchfix, a private styling service company, said: "as long as they provide differentiated services in terms of emotion, presentation and trust, smaller e-commerce providers will continue to play their role.

Not everyone needs to adapt to the large-scale platform business model based on logistics, speed and search.

Looking forward to 2019, we may see more related and overlapping business ecosystems accelerating.

Competition may become more intense. Businesses will compete to become the preferred platform for consumers and brands.

The most popular thing in the industry will be integrated value-added services, eliminating the friction between consumers and suppliers through effective use of big data analysis.

This may lead to further mergers and acquisitions activities, and each will compete to find the best complementary object for the existing platform.

As valuations decrease and some smaller companies fail, vertical vertical electricity suppliers are likely to have some form of shuffling.

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