Regardless of the changes in technology, these three points remain central to retail competitiveness. Can a business model such as b2c, vertically, help consumers realize these benefits? The billion state power network received some responses to the most basic questions from the founders of two vertical b2cs in the industry。
Note: due to interviewers ' requests, it was not possible to publish names, so the following two articles were replaced by k and f, respectively. Texting: big red。
View one: vertical b2c will not die
Billion state power network: is the vertical b2c purchase of older customers extremely low for three consecutive years
K: not to mention three years in a row, vertical b2c does not have a high proportion of repeat shopping users except for individual items. The 30 per cent double-purchase rate is a pass line and over 50 per cent should be considered excellent. Without the supply chain, without the money, it's hard to play。
Billion state power network: how many of these are treasure hunting, the role of kyoto
K: let's not start with this conclusion, let's start with a few appearances, with our own example: the official online line is only a year and a half, and the goods are sold on websites like qingdong and qingdong. Consumers must know that they even shop regularly in qingdong and qingdong. Why do they have to shop on the official network? Why do the orders and users of the official network continue to rise
Billion state power network: you are too strong in traditional brands, so you can use product differentiation to do this。
K: not to be so simple, but to be precise, the difference in brand (positioning) and user experience on the site. I am afraid to say that brand and experience are good and can only be expressed in a different way. You just said there's a treasure hunt, it looks like there's everything there is. Vertical electricians are high-quality web pages. I'm not saying that vertical electricians are good. My problem is nothing else. I'm just refuting your thinking about vertical electricians。
Billion state power network: i am talking about the value of building a vertical b2c for the vast majority of products。
K: you do not explain, but tell me the answer. Now that a lot of brands work as electricians, mostly cleaning and using them as sewers, do you think it's right or wrong in the long run
Billions of state power grids: dumping can be long-term, but produces limited value。
K: okay, here comes the second question. Would it be more permanent and better if, ideally, traditional branders included electrical channels in the overall distribution system, designed, developed, sold according to normal sales, supply chain processing logic, and, of course, misdirected, or interoperable online, etc.
Billion state power network: yes。
K: okay, here's the third question. If the second point is considered good, or the direction of the future, then consideration should be given to the characteristics of the supply chain, where the goods are produced, where the production is anticipated by the order and where the order is generated by the flow, can you tell me how to ensure that the flow is matched by the order to the supply chain
Billion state power network: do you think this is the value of building a b2c
K: i'm not saying that i can build a billion b2c, but that the platform has platform value and game rules, and my b2c has its own b2c value and game rules。
Finally, we sold nearly $400 million last year, and skycat wanted us to sell 1 billion, but skycat didn't have a traffic plan, or why should i produce 1 billion or buy 1 billion
Ben: go on。
K: because more than 70 per cent of our products are new, the electronics are highly integrated with the sub-linear supply chain. But i say now that if a platform electrician does not want a brander to sell sewers around them every day, at a low price and a low price, he will have to work with the brander to study how to sell according to the life cycle of the product, respecting the brand's sales patterns。
As for the current problem of vertical b2c dispersion of traffic and the low percentage of network sales, for vertical b2c, there must be an external route. Which route would you say not? It is not possible, it is unrealistic, and the key is to pay attention to the proportionality structure in the development process. It's like the flow of an electrician's website, which must be divided into direct access, sem, seo, navigation, edm, cps alliances, referral traffic, portals and vertical displays. I certainly hope that 100 per cent of all traffic is direct access, edm, inductive traffic, seo, which is free of charge, but is it possible? If that's the case, it's over. The central point is that, as a brander, or as a large channeler, business must be in their own hands, or more than 50 per cent control when working with others, so that it can be sustainable。
Billion power network: the core value of a vertical b2c is still in the word “vertical” — so much as you say — and in one sentence the big white phrase is that a vertical b2c plays more deeply than an integrated platform, for example, by opening up front-end traffic and back-end production, and ultimately improving supply chain responsiveness. Skycats play big data and are expected to provide similar services to registered vendors. In terms of technical and financial power, can a vertical b2c run through the skycat
K: we've been working with skycat for four years, and we know their problems very well. If skycats do not change, sooner or later they will only be branders' sewers, but they realized the problem in the second half of the year, saying that the core of their work in 2013 had risen from a purely sales platform to a consumer-connected platform. Kyodong, who is now behind skycat's ass, can't say at least if skycat is in the lead, but i can't say whether they can't see it, or whether they're under a lot of pressure。
Returning to this question, it is true that there is little time for vertical b2c, core competitiveness, and a clear advantage in the supply chain and user experience, be it channel or brand b2c, both of which require money and not small money。
Billion state power network: the future of a vertical b2c still sounds tight。
K: you're out of order. Users can be inertial. Let's continue today. Some shoes, for example, are b2c, long-established, big users, but useful? But it's fast, not more than a year. Some of the traditional brands are the b2c platform, which explores and innovates beyond existing business, and where the mission and meaning and value are present, they dare to be b2c。
All i've been saying is that vertical b2c is a hypocritical proposition, and i don't think so. But vertical b2c must also wash cards and evolve, because the fittest survives because of consumer demand。
View two: vertical b2c is bound to be a tragedy
Billion state power network: why do you say it's only a matter of time before you close the b2c vertically
F: why do consumers buy their own products from skycats? If anyone can answer that question, he can survive。
Billion state power network: what about providing good enough products, good enough services, and a better website shopping experience? It's the vertical b2c idea。
F: what is the difference between product, service and shopping experience, doing a vertical b2c alone and opening a shop in skycat
It's not the same as ikea and carrefour。
F: websites and malls are not a concept. Does the united states have a single shopping mall against amazon? I'm talking online. Underline, but offline. This is due to the geographical location of the line, positioning style and renovation costs. Carrefour can also add an ikes-style floor to the 4th floor, but how expensive it is and how high it is. It's not hard for them to have a skycat and a mall。
Billion state power network: but the problem is that none of the b2cs is an ikea, so carrefour beats himself。
F: you're right. There's not enough time. Whether it is a channel-based vertical b2c or a own brand-owned vertical b2c, there is a potential for growth. But the domestic electrician environment is changing so fast that around 2007 the electrician seemed to be a new continent, and by 2012 skycats, poachers, kyoto, suning, and other large platforms were locked in and controlled the electricity company's flow entrance. It has taken only six years from the beginning to the end of the industry, during which vertical b2c must complete its task of controlling the supply chain, the operation of the electrician, and the logistics infrastructure. Any of these three things are expensive and time-consuming. I see that many people who call b2c a bunch of morons, and i find it difficult for him to do it in such a short time. There are also lucky people, such as liu keung-dong, who have taken a lot of money to build their own logistics, who have burned their money, but who have played a little bit of brand name in their old days, and who have not earned the same benefits as other vertical b2cs. By 2013, under the pressure of the crocodiles, the official network was largely out of business。
Bn: how much do you think is enough? How much time
F: different businesses have different answers, more money and time needed for a channel-based vertical b2c, because they can't control the goods, for example, by buying good money for five or six years to make the first-line sports brand listen. Not to say that selling other people's products, even under the banner of bailey, is an advantage in the traditional supply chain, but if you don't continue to invest in them, you can't buy them much of a platform, at best by selling their own shoes, because the market does not give them enough time to sink users. For b2c, the first is good product, the second is good brand meaning, and the third is good sales, while no one has done well in the past six or seven years, compared to some brands。
Billion state power network: summarizing what you mean, you think that in china's e-commerce environment, channel-based vertical b2cs are doomed because of time and financial constraints, while their own brand vertical b2c is not ready for the product and missed the best opportunity。
F: yes. The vertical b2c core value of a free brand lies in the brand, which can be done at all times, but at all costs later。
Billion state power network: in 2012, li xiaobin spoke about vertical b2c as a fraud, saying that as long as three problems were solved, one was how to estimate sales and make a particularly accurate order model. The second is how to reduce delivery costs. The third is how to improve efficiency。
F: don't take people's words lightly. Some people talk to themselves. They can't say what they're doing. He mentioned only a small part of the problem of running the website, and vertical b2c needed to solve many problems in order to be profitable and sustainable. Moreover, the ordering model itself is based on supply chain-based management experience and vast data, and this is the game of chickens, eggs and egg, how can you find and keep large users by fighting prices alone? It's impossible。
Billion state power network: what are you going to do with your own official network
F: we can't do it without our own core product, and we're pushing our own product. Our definition of the network is “a model room for our own brand”. In addition, with good membership, members can benefit from better services and discounts and do better than skycats or shops in kyoto。
Billion state power network: how many are you now? How much
F: more than 100 people, about 50 per cent of maori。
Billion power networks: fewer people than ever before。
F: first to survive, why are there so many people? We've got three people in technology, more art, eight. We use technology to improve efficiency and institutional motivation。
Billion state power network: what do you think about the future of vertical b2c
F: vertical b2c of a standardized product, which in the short term can be profitable by optimizing some management processes, such as reducing the cost of acquiring new customers, optimizing the supply chain, etc.; in the medium term, by working with large websites; or in the long run, by being brand-owned or dying sooner or later。
