Looking At The Future Development Mode Of E-Commerce Through Sunning Price War Of Jingdong

In the field of B2C business, the dispute over the territory has become increasingly fierce. Tmall, Jingdong and Suning have been fighting against each other and set off the strongest electricity price war in history.

This phenomenon reflects the fact that China's e-commerce is currently dominated by the "price war" model.

Behind this phenomenon is some kind of business mechanics.

The most basic mechanical relationship of China's e-commerce is the relationship between the pony and the cart. E-commerce accounts for less than 5% of the paction volume, while the entity business is 95%.

Price war dominates China's e-commerce, which is determined by the relative relationship between the pony and the cart.

We can analyze this relationship from two aspects: one is to explore the small horse of electronic commerce, how to be restricted by the big car of entity business, to explain the decisive factors behind the price war of electric business; to explore how the horse is to fit the big car, to make it have to fall into the price war, to explain the reality of the price war of e-commerce; and the two is to explore how the horse can use the new strategy to embody wisdom to drive the big car and get rid of the fate.

It explains the value source of the rationality of the Chinese Electronic Commerce out of the price war.

Where does B2C e-commerce go? It's good to say that B2C is just a pition business model, and the real business model in the future is C2B (CustomerTo Business).

B2C because of reality, so it is reasonable; because C2B is reasonable, it will become a reality.

B2C is just a pitional business model.

1, the traditional constraints of electricity supplier development

1) the electricity supplier planets are surrounded by solid stars.

If the strength is measured by paction volume, the current strength of e-commerce and physical business is about 5% to 95%.

Compared with the total retail sales in the society, the proportion of online retail sales is still low.

According to the Ministry of commerce data, the total retail sales of consumer goods in 2010 amounted to 15 trillion and 450 billion yuan, while the B2C data was only 104 billion yuan, accounting for only 0.7%.

In the home appliance industry, SKYWORTH and Taobao, pat, Jingdong mall and other online channel cooperation, sales accounted for only about 4% of the total; the total sales volume of Jingdong mall is only 10 billion yuan, accounting for less than 1% of the home appliance sales market, accounting for less than 1/7 of Suning Appliance Sales.

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In 2009, the sales volume of domestic clothing market was 13000 billion yuan, while apparel network retail accounted for.

The proportion of retail sales is less than 3%.

This is to provide a new explanation for the price war of Tmall, Jingdong and Suning: if 95% share of the entity business is prevalent, price war will take place, accounting for only 5% of e-commerce.

It does not depend on the subjective willingness of Tmall, Jingdong and Suning itself.

The most typical example is Ma Yun, who has always advocated small and beautiful, but is influenced by the reality of the country.

Tmall, Jingdong and Suning prevailed in the price war. Without a word, in a word, they contended that they were old.

Why is it so? Because our country's entity business has not yet got rid of the traditional circulation mode characterized by the pursuit of big pursuit, the price war as the means and the extensive operation as a whole. It is just like the sun moving around the earth, attracting e-commerce to run against its own nature and running in the laws of the real economy.

This is Tmall, Jingdong, Suning electricity price war behind the invisible macro hand.

2) the planetary trajectory of gravity center in solid flow industry

An analysis of the planetary trajectory diagram of the gravitational center of China's entity circulation industry can clearly confirm this point.

From the reform of circulation system and the main tasks, supporting policies and safeguard measures of the circulation industry, we can observe the traditional circulation genes as part of the 95% part of China's circulation industry as a traditional agricultural country and a traditional industrial country.

If China's circulation industry is likened to a galaxy, the star in the center is the so-called "modern circulation system" with the core of modernity. Its modernity, or the modern characteristics of industrialization, is manifested in the national backbone network, which is dominated by the entity business form (rather than the virtual business form).

This entity network concentrates on cities and light scattered rural areas. Its implicit premise of modernization is different from that of developed industrialized countries. It is not the diffusion of elements from urban to rural areas under the help of e-commerce, but rather from rural areas to cities (big cities, small towns).

On the contrary, on the platform of Taobao, we can observe the opposite trend of the world. We can see that the growth of the three or four tier cities is several times the growth of a second tier city. In the next three years or so, the sales of China's three or four tier cities on Taobao should surpass that of the second tier cities.

This is precisely the direction of "miniaturization and decentralization" which has been abandoned by the mainstream and resurrected under the condition of information productivity.

The 95% part of the positioning of the modernization of circulation is strategically different from the requirements of e-commerce.

The modernization of circulation is mainly targeted at the low goal of supplementing industrialization. E-commerce, as a planet on the edge of stars, serves only as a partial factor outside the strategic elements, serving and obeying the modern positioning of the "semi agriculture and semi industry". Therefore, even if the electronic commerce technology is technically, it can completely break the real time and space constraints of resources by means of virtual retailer, realize the equal development of urban and rural areas, distribute resources in a distributed way in a mobile space, and get rid of the Chinese manufacturing extensive operation characterized by the price war, so that the industry will be surrounded by the star which is too small to be the center of the galaxy.

The electricity supplier can not get rid of the Chinese manufacturing mode in the circulation field, that is, the price war mode.

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China often considers the reform of circulation system and the development of circulation industry, but the common problem is the lack of a new orientation of modernization.

For example, some opinions issued by the former Ministry of internal trade on "deepening the reform of the circulation system and promoting the development of the circulation industry" ([1995] ninth of the internal trade office) are the outdated concepts put forward in a clear sense: "the core issue of the modernization of the circulation industry is to increase the efficiency of circulation."

The existing problems, as Zeng Ming pointed out, "it is difficult to see the future of e-commerce by using technical means to make the retail links more efficient than before."

Because the modernization of the world's circulation industry is no longer efficiency, but the opposite direction of price war.

Because according to the viewpoint of improving efficiency (rather than improving efficiency), the circulation system is a simple system, which is suitable for centralized and large-scale traditional industrialization mode.

Such a way of thinking is contrary to the Internet: "in order to play the role of the main channel, the state owned circulation enterprises must change the present situation of miniaturization and decentralization, and rapidly improve the degree of organization."

It is guided by the "beauty", "beauty" to the price war to achieve economies of scale, and as a requirement to "improve the scale of business operation capacity", "strive to be able to play the scale advantages, comprehensive advantages of large enterprise groups".

The electricity supplier will only increase its "weight" from 5% to more than 50% when it develops at a high speed, so as to turn the planets around others into stars that allow others to surround themselves.

2, B2C electricity supplier to adapt to the traditional reality in the way of price war.

1) the current situation of price war in the United States

At present, the B2C market is in the initial stage of development.

One of the characteristics of the primary stage is that the electricity supplier service enterprises compete fiercely for market share, big but not strong.

In competition, only large enterprises can survive. It leads enterprises to enlarge their goals and enter into competition.

With the support of venture capital, businesses invest heavily in manpower, logistics and promotion.

Price war is a "big" word.

At the same time, it is difficult to be strong (profit).

On the contrary, competition is mainly in the direction of profit loss.

With the support of venture capital, B2C enterprises continue to reduce prices and promote sales.

"Although the daily sales volume is nearly 6 million, it has been losing money and the number of losses has reached hundreds of millions of yuan," Fan said.

"Jingdong's gross margin is no more than 10%, while Gome and Suning's gross margins are about 17%.

The real advantage of electronic commerce is to improve efficiency (i.e. efficiency relative to complexity, or sensitivity), and the more complex and diverse the advantages are, the better the advantage of e-commerce will be.

In pursuit of beauty only, e-commerce efficiency is not necessarily higher than entity commerce.

2) B2C's adaptation to four aspects of reality.

The electricity price war reflects the adaptation of e-commerce to reality under the conditions of underdeveloped countries.

The first aspect of adaptation is price competition.

The rise of group buying is the expression of e-business adapting to physical business.

There are profiteering in the intermediate links of entity commerce, which has led to the flourishing of e-commerce websites with rich user resources and the mode of low price competition.

The most active areas of network sales mode innovation are not differentiation and individuation, but various price competition modes, such as group buying, time limit snapping, spike killing and purchasing mode, which not only attract the attention of many netizens, but also expand the marketing power and sales volume of websites.

From price competition, the innovation of electric business will be reversed to the extensive direction.

For example, taking department stores as an effective way to increase sales and enhance risk tolerance.

For example, Dangdang books are becoming less and less occupied. Through the expansion of department stores, there are already 1 million 500 thousand kinds of commodities.

The second manifestation of adaptation is cost competition.

The cost advantage as an auxiliary function of e-commerce is the first to play out.

For example, the turnover rate of some electrical appliance manufacturers is 50 days, due to the inventory turnover rate of Jingdong mall is only 11 days, while the entity business is 50 days, so the traditional retail enterprises such as Suning, Gome, WAL-MART, intime department store, Carrefour and so on have been involved in the B2C field.

On the contrary, the differentiation and diversification advantages of electric providers are limited by traditional conditions.

The third performance of adaptation is in the channel, the electricity supplier widely adopts the form of combining online and offline.

For example, Mcglaughlin invited more than 400 entities to join the store and extended the entity business to the one or two and three tier cities.

The fourth manifestation of adaptation is self built logistics.

Due to the underdeveloped physical commerce and the poor development of the third party logistics, the development of e-commerce platform enterprises is often restricted.

Some B2C enterprises have to spend huge sums to build their own logistics.

In recent years, Jingdong mall has used 70% of its financing funds for warehousing and logistics construction, and has completed the layout of first class logistics centers in 5 cities such as Beijing. At present, its three-level logistics system has covered 50 cities throughout the country.

From these four adaptations, we can see that it is not the electricity supplier that drives the traditional business with its unique advantages, but drives the traditional business with relative shortcomings, that is, the lower cost than the entity business.

This leads to serious competition in the homogenization of B2C platform enterprises, manifested in the same category of goods and business models, and no differentiation competition is formed.

B2C electric providers get rid of the traditional direction of gravity:

Big data era due to small and beautiful C2B

Although traditional business is powerful, it has unconquered shortcomings, such as Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, said: "most of the wealth created by society is consumed in the circulation sector, which is a heavy burden on the Chinese economy, impeding the pformation of the economy, and pushing up the price level and impeding the release of consumption."

But in the Internet era, this is not inevitable.

E-commerce is not bound to take the road of price war. When it is adapted to reality, it can also play its own rationality.

With the further development of e-commerce, small batch and multi variety of e-commerce will rise.

Amazon sells more than 30 million commodities, but Jingdong mall has only 100 thousand kinds of commodities. The potential of China's market is small and beautiful.

As long as we play the role of e-commerce, we can get rid of the traditional attraction of entity commerce.

In this direction, the most fundamental way out for B2C is C2B.

China's e-commerce service enterprises represented by Alibaba are exploring this new direction.

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1.

The real business model in the future is C2B.

B2C itself is just a pitional form to real e-business.

The reason why it is attracted by the attraction of traditional business mode is that, like traditional business, it is based on B, starting from B, and finally arriving at C.

The difference between e-commerce is, fundamentally speaking, not simply improving the efficiency from B to C, but fundamentally reversing the position of B and C, and taking C as the core, from C to B, to achieve "production and reverse" (the reversal of the relationship between producers and consumers).

2, four links in the C2B value chain.

1) the first driving force of the value chain: consumers as the source of information flow.

Zeng believes that the B2C standard mode is the mode of operation in the traditional industrial economy era. With the development of Internet in the future, the voice of consumers will become stronger and stronger. The first driving force of the future value chain will come from consumers rather than manufacturers.

B2C is just a pitional business mode. The real mode of e-commerce in the future is C2B.

"Future business mode customization will be the mainstream.

Its requirements are personalized demand, multi variety, small batch, quick response, and platform collaboration. This is the future we can see. "

The key of the C2B mode in the front end (i.e. the client information collection end) is to aggregate complex and diverse consumers through the aggregation technology of Web2.0, which makes the traditional consumers in a weak position to reverse.

Group buying is a little desirable. It is a primary form of production reversal.

In fact, SNS and search engines take consumer behavior as the starting point of economic process, and finally lead to the production and elimination of business forms of producers.

From the point of view of B2C, it can be understood that putting the order in the starting point of the economic process and realizing the unity of man and man.

2) the second link of value chain: information flow reorganization -- massive unstructured data processing industry.

When the problem of the first driving force is solved, what will be faced next is the massive data processing of consumer behavior.

E-commerce in the era of big data is to process and process large amounts of unstructured data through cloud computing.

After the increment of data processing industry, data flow will play the role of integrating capital flow and logistics along the new direction of production reverse, and will eventually reorganize the business flow.

3) third links in the value chain: the reorganization of business flow -- advertising, channels and supply chain integration.

According to Zeng Ming's prediction, in the reorganization of business flow, advertising, channels and supply chain will be changed in turn.

He believes that the B2C standard mode is a large-scale, pipelined, standardized and low-cost mode of operation in the traditional industrial economic era, and inventory is a fatal point in its natural mode.

Inventory is that people can not be unified, and through the reorganization of business flow, the elimination of inventory is essentially the realization of individual integration.

The first thing to change is the advertising market. Google has fundamentally changed the traditional business mode of advertising through the business mode such as Pay for Performance (P4P). Advertising has shifted from an Value Proposition, which is more inclined to Branding, to a precision marketing platform.

The second step of electronic commerce is actually the networking of retail platforms.

The next step is the real-time collaboration platform of the supply chain. In other words, only when e-commerce comes from the network retail to the real-time collaboration of the supply chain, every link of the value chain can be truly realized on the Internet. It is no longer an isolated island under the line and line.

According to Zeng Ming's theory, when these three streams are connected, it is the era of big data that we are talking about.

The business mode that big data really supports is C2B, not B2C.

Because if you want to really mass customization for so many consumers, you really need a reconfiguration of the industrial chain. The deep excavation of the intermediate data and the rise of the geometric series of matching accuracy are the infrastructure needed for this business mode.

This is the future we can see.

4) fourth links in the value chain: Customizing according to the order, and integrating people with one.

A person in a single person refers to a producer or a consumer.

In the end, B is the business of all walks of life, will achieve the order production.

According to one order generated by consumer information, we allocate resources and organize production in the whole society.

Before the reversal of production, most manufacturers can make a one hundred thousand or five hundred thousand lot order for Taobao sellers, but it is impossible for a Taobao seller to make a list of only five hundred, not to mention only one.

Under the condition of production and reversion, suppliers with flexible production capacity can meet their production capacity of multiple varieties, small batch and quick response.

The traditional supply chain basically revolve around 28 days or so, and the Internet demand is 7 days or even faster in the future.

At present, the production and consumption reversal and the combination of man and nature have been fully realized in Haier's manufacturing.

B2C electricity supplier where to go? The future will not be a simple continuation of the past B2C, but may be a leap and reversal to C2B.