Depth analysis what to save your e – commerce

March 6, 2017

some time ago, a lot of people in the network flow legend, e-commerce winter is coming. Although I do not fully agree, but think carefully, this speech is not Weakness lends wings to rumours. In early 2011, e-commerce and group buying site is still a hot investment in the field, the valuation of the relevant companies have been higher. But after a delay, VANCL handles IPO, letao CEO Bi Sheng also issued "the wrong".

"as a branch of business, group purchase website in this year’s rapid freeze the online retail market into the trough. Capital market began to shrink, the number of commercial enterprises began to decline in advertising investment, which is undoubtedly the advent of winter signal." Analysys analyst Chen Shou thinks so.

analysts believe that the reason for the electricity supplier companies to enter the winter is constantly rising marketing costs and increasingly fierce price war. Dangdang.com CEO Li Guoqing said: "Internet advertising is becoming more and more expensive, but in order to do more large-scale business enterprise by the investors to burn smashing advertising, and excessive burn, and lead to large losses." He also believes that this is the main reason for the electricity supplier industry winter.

more than the phenomenon of the electricity supplier industry in the development of the situation is indeed experiencing great difficulties, with the electricity supplier industry to describe the winter does not seem too much. But in the end, what are the reasons for this situation?

personally feel that the current situation of the electricity supplier industry with the current domestic e-commerce business model has a great relevance. Now the general situation is that we do business in the burn, wanted to do large-scale in the shortest time, occupy the market share. So they burn generous advertising investment, plans to build the warehouse, set up under the line of various departments, with a number of media publicity, etc.. These big movements are basically burned investors money. Some people say that China’s e-commerce platform to create a new model of the economy, it does not make money in the main business, it actually earned VC, PE money. Of course, this is also the way to make money. But, how about, such a model can be a long time? This pattern can be sustained? Once the formation of a bubble, investors will be more cautious on investment behavior, and less than the financial capital to sustain the development of the enterprise, wait for it only in the cruel winter wash off.

current environment, the electricity supplier industry to develop, it is necessary to change the extensive mode of operation to the fine business model. Overall, we should pay attention to the following points:

one, the change of capital model

before the model is based on the electricity supplier companies earn VC, PE money to maintain the development of enterprises, and its main business is basically a loss. This model must change. Not to take the line of business, the appropriate combination of regression, "up by the nature of the business to make money," farewell "hoodwinked by the money era.

two, the cultivation of brand appeal

brand appeal has intangible value, will bring the relative stability of the business

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