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Gong Wenxiang: Two Intermediate Opportunities In E-Commerce

2011/1/31 10:08:00 50

E-Commerce Business Retail

Not long ago, I sent a micro-blog in the United States.

Internet Retailing

Of the top ten, 8 are below the physical line.

enterprise

Operating B2C sites (such as WAL-MART), pure B2C only Amazon.

In 2010, 6 of the top 10 Internet retailers in the UK had entity chain stores.


But in China, there is no traditional retailer.

brand

Shang's sales website entered the top 10.

As far as I can predict, in the next 5 years, China's e-commerce will be the four pattern of "Taobao, B2C platform, traditional retail channel and traditional brand business".


On Taobao, the two modes of selling traditional brands to online sales, using traditional shop resources around the Internet to sell goods, have gathered a large number of entrepreneurs. On the other hand, e-commerce is very popular now, pushing up the threshold for entrepreneurs to enter, especially on the B 2C platform.

If someone tells me to plan to enter e-commerce, I will tell him that no 20 million will just stop playing.


So the future opportunities lie in the traditional retail channel and the traditional brand business.

You don't believe me? I'll tell you two real stories.


Mr. Liu, formerly a clothing category manager of an e-commerce company in Southern China, is very familiar with the clothing industry and is also familiar with e-commerce.

He found that many clothing brands in Shenzhen had to open shop in Taobao mall, but they had no expertise.

The boss of a clothing company, which sells 2 hundred million of the next year's sales, found Mr. Liu responsible for the brand's e-business. But Mr. Liu was reluctant to work and offered to contract his Taobao flagship store. The terms of cooperation were: Liu promised Taobao flagship store sales every year 2 million, and the manufacturer paid him 20% of the sale price.

Because of the high popularity of the clothing brand, Liu completed about 1000000 of his sales in the first year and basically raised his own "electricity supplier team".


Mr. Lee, the former director of 4A advertising company, has no practical experience in e-commerce, but he has drawn several friends to do e-commerce, and has set up an e-commerce company to build an e-commerce outsourcing operation.

Because of previous business contacts, Mr. Lee and a boss who want to develop online sales makeup brands have a good personal relationship, so he acts as an online dealer in the cosmetics business: all online distribution channels such as Taobao store and B 2C website.

In the first year, Li's new company sold nearly 5 million yuan. He began to develop several famous brands "contracting" the role of his network distributors in the new year.


I checked some data. L'OREAL's flagship store opened in October 2010, and sales in the first month were close to one million. I found Mentholatum's flagship store opened last year for half a year, and its monthly sales volume has reached nearly ten million last week.

The two flagship operators are from a newly registered electricity supplier in Guangzhou.

Traditional enterprises, especially "famous" and "large" enterprises, are not "starting to do" but "how to do" the starting point of e-commerce, which means that e-commerce is really becoming a "standard" in traditional enterprises.


However, because many traditional enterprises have no talent or ability to do so, there are many enterprises that choose to outsource.


The two stories I talked about are higher than Taobao's "distributors" or "shopkeeper" who use the traditional shop resources to open online stores, and for the pure B2C platform, the starting point is relatively low, which is regarded as an economic and applicable entrepreneurial opportunity.


Why is it economical and applicable? Let's take a look at the way of entrepreneurship that I have to seize this "two opportunities": 1, start a shop in the Taobao mall in the name of the enterprise; 2, build an online shopping mall instead of the current corporate website, so as to integrate the supply chain; 3, set up online channels: let your products enter the B2C platform such as Dangdang, excellence, etc. 4, small-scale test the water SEM +C PS promotion, at the same time exercise their own team, sales volume reached 100 single / day, and began to exert force.


That is to say, doing online sales for traditional enterprises will go through 5 small and large processes: one is selling pictures, the other is warehousing and goods free; two is selling and marketing, there are no warehouses, three goods are sold, there are warehouses, four are selling supply chains: eating stocks, cash in stock, and strength is starting to become "reliable"; five selling brands: let manufacturers design and produce products brand with added value concept exclusively for you.


Aside


Ten years, one billion


The e-commerce market in early 2011 will continue to be hot in 2010. With the influx of large amounts of money, the cost of user acquisition has been increasing continuously in the field of e-commerce.

The high promotion cost has set higher and higher threshold for e-commerce B2C entrepreneurs. The founder of V ancl revealed that the sales volume of VCM in 2011 reached 1 billion yuan.

"I very much agree with Liu Qiangdong's words: B2C website has no ten years, no one billion yuan do not play."

Bi Sheng told the media.


Foreign trade, B2C?


Perhaps because of the popularity of angel investor Xu Xiaoping, the B2C website of foreign trade will emerge from the Lanting Pavilion.

However, in Shenzhen and other places, foreign trade B2C websites such as dealextrem e.com, chinavasion.com and focalprice.com have been making a lot of money. For them, it doesn't matter if they can't open their websites in China, because their customers are consistent with "external development".

According to Gong Wenxiang survey, a large number of such e-commerce companies visit 400 thousand people per day, and overseas conversion rates are over 1%, 4000 orders per day, sales of 200 million to 300 million yuan per year.


Logistics is about to break out.


In January 2010, after 12 years of storm, the D D S express company was "fallen" because of the chain break of its customers. But on the other hand, when you call the express phone on the eve of the Spring Festival, the other side will tell you that you have stopped serving.

This is just one of the characteristics that logistics can not keep up with the development of e-commerce.

Not long ago, Ma announced that Alibaba will invest 20 billion -300 billion yuan with its financial partners, and gradually establish a three-dimensional storage network system in the country to promote the accelerated development of e-commerce.

The importance of "last mile" to the role of user experience does not seem to be questioned by E-business people.

More and more actions mean that there are many symptoms and opportunities in the logistics industry.


Third party payment


Although the central bank's "non financial institutions payment services management measures" to the third party payment industry has brought about a restlessness, but it does not hinder the industry of several large players' vision for the future. According to Enfodesk Analysys think tank data report, the year 2010 paction volume of 10858 billion yuan, an increase of 96%.

Big players have stepped up their efforts, and their services have long been out of the realm of e-commerce and are heading for a wider range of payment applications.

It is said that in the new year, fund sales will be another "star product" ready to be launched.

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