Rapid development of e-commerce realizes the dream: sufficient capital and fierce competition

in the last 10 years of the 1nternet, someone once conducted an experiment on how human beings can rely on the 1nternet to live at home; Today, the experiment is becoming a reality for many people

after 10 years of cultivation and the popularity of the 1nternet, consumers’ online shopping behavior has been cultivated, and online shopping is not only a fashion, but a living habit. At the same time, the bottleneck of e-commerce, such as network payment, credit identification, logistics and distribution, has been solved to a certain extent, and e-commerce is about to enter a period of rapid development

as Fang Xingdong, a senior 1nternet expert, said, “the 1nternet is not only giving birth to an 1nternet industry, but also a great social change. Like printing, telephone and electric power, it will comprehensively change and affect human communication, entertainment, leisure, business operation, international politics and other aspects.”

according to the data from China e-commerce research center, in 2010, the transaction volume of China’s e-commerce market reached 4.5 trillion yuan, a year-on-year increase of 22%; Among them, the transaction scale of online retail (online shopping) market reached 513.1 billion yuan, with a year-on-year growth of 97.3%, almost double that of 2009, accounting for about 3% of the total retail sales of social commodities in the whole year, and it is expected to exceed 100 billion yuan in the next two years; 1n addition, the number of personal online stores also reached 13.5 million, a year-on-year increase of 19.2%

e-commerce ushered in a big explosion

in 2011, e-commerce is undoubtedly the most attractive branch of the 1nternet. After more than 10 years of continuous accumulation, e-commerce finally ushered in a big explosion. With the enthusiastic pursuit of capital, all aspects of e-commerce, whether it is a comprehensive platform, comprehensive B2C mall, vertical B2C, network brand, or traditional brands and retailers, third-party payment enterprises, logistics companies, companies providing solutions and services for e-commerce and other related enterprises in the industry chain, are willing to invest heavily in this market

at the same time, over the past 10 years, the category of e-commerce has been continuously expanding. From selling books online, to selling electronic products and even clothing and department stores, and then to more subdivided commodities, it has gradually penetrated into every level of people’s life needs. 1t is no exaggeration to say that the vast majority of products and services of people’s life, clothing, food, housing and transportation, Can be obtained through e-commerce

in such a development process, the e-commerce mode has also evolved. The group buying, which emerged in 2010, is a form worthy of special attention. Group buying has formed a subversion from B2C to C2B and changed the game pattern in the industrial chain. After the baptism of the thousand group war, the pattern of group buying industry is gradually clear

sufficient capital and fierce competition

to some extent, the smart life at home depends on the development of e-commerce, and the cost is not low to create this “home economy” of online purchasing

first of all, in order to open up the market and win the recognition of customers in the early stage, online shopping is necessary to use the strategy of low price and low discount to attack the market of traditional enterprises; Secondly, online shopping has accelerated food consumption. Traditional enterprises have accumulated brand, popularity and market share by operating for more than ten years or even decades, but online shopping may only take two or three years; Third, compared with the operation of traditional enterprises, online shopping has much higher requirements for logistics express delivery. Fast, safe and accurate delivery is closely related to good customer experience. However, at present, domestic logistics and other related supporting construction are far behind the development speed of online shopping, As a result, more and more e-commerce enterprises begin to list self built logistics facilities and teams as “required courses”

in April 2010, online B2C Jingdong Mall announced the company’s latest round C financing, with a financing amount of US $1.5 billion, of which US $1.1 billion has been received. The investors include six funds including Russian investor Digital Sky Technology (DST), Tiger Fund, etc., and some well-known social figures, of which DST group has invested US $500 million

the $1.5 billion financing of Jingdong Mall is the largest single financing amount of its own company and China’s 1nternet market so far. 1ts investor, Russian billionaire alish Usmanov, revealed in an interview with the media that he invested US $500 million in Jingdong Mall and obtained 5% of the shares, which means that the valuation of Jingdong Mall has reached US $10 billion

recalling the situation of e-commerce industry around 1999, the initial capital for Ma Yun to establish Alibaba empire was 500000 yuan, which is not worth mentioning in the eyes of many e-commerce companies today. 1n the first half of 2010, the online group buying website hand-in-hand claimed that its valuation was nearly 1 billion US dollars when he was under one year old; 1n May this year, after setting the largest financing record of $20 million in round a in the B2C field, vipshop, a domestic famous brand discount mall, officially announced that it had won a joint investment of $50 million from Sequoia and DCM

according to the data from Qingke investment database, there were 14 financing cases in the field of domestic e-commerce in 2010, ranging from millions of US dollars to tens of millions of US dollars. Since 2011, e-commerce enterprises such as Jingdong Mall, VANCL, lashou.com and haolemai have obtained huge amount of financing, and the single financing scale is more than 50 million US dollars

however, it is interesting that most e-commerce enterprises have not made profits or large-scale profits at present

the reason for the slow profit of most e-commerce companies in the current market is very simple, which is to burn money for scale. After spending money on scale, we should strengthen the control of the supply chain and get low price and low discount; Use money for promotion and advertise in subway, TV, 1nternet and other places; To occupy key cities with money and rush to the second and third tier areas for rapid expansion; Use money to rent or build warehouse, set up logistics distribution team and so on

logistics is probably the most expensive part of e-commerce enterprises. Domestic e-commerce enterprises have invested heavily in logistics and warehousing. Jingdong Mall, Fanke, Dangdang, Alibaba, haolemai and other enterprises have built or plan to build their own logistics. At the beginning of 2010, Liu qiangdong, CEO of Jingdong Mall, which has been famous for holding high the banner of “self built logistics”, threatened to raise the threshold of e-commerce enterprises. “A decent e-commerce company (with annual sales of more than 20 billion yuan and net profit of more than 500 million yuan) needs 10 years to be the most conservative, burning more than 1 billion yuan.”

Suning Electric, which only officially entered the field of e-commerce last year, also revealed that by the end of 2010, Suning had four logistics bases and 10 under construction. The company aims to build 60 logistics centers between 2013 and 2015

these battles of scale and magnitude can not be easily participated by e-commerce enterprises without financial strength

the fighting is obviously more and more fierce, but some people said with a smile, “now the competition level of the whole industry is no longer just a small fight like opening a shop online to sell things, but has been upgraded to the enterprise level.”< Some people suggest that there are three signs to judge whether an e-commerce market is mature: first, B2C e-commerce accounts for a significantly higher proportion than C2C e-commerce; 2ã€?There are more kinds of goods and integrated B2C mall coexists with vertical B2C mall; 3ã€?Traditional brands and traditional chain retailers can find the right position in e-commerce sales for the first, in the mature e-commerce market, the proportion of B2C e-commerce is significantly higher than that of C2C, such as 80% in the United States and 60% in South Korea. 1n 2010, two B2C websites, macallin and Dangdang, were successfully listed in China, and Dangdang’s market value exceeded US $2 billion. Experts predict that B2C has great growth potential in the next five years, and the industry as a whole is expected to grow at a compound annual growth rate of more than 60%, with the total scale expected to exceed 400 billion yuan in 2013 if you still have the impression of three years ago that you buy Dangdang and 3C products in books and watch Jingdong and Xindan, you will be out of date. Nowadays, most of the shopping needs of 1nternet users can be met in one stop on these websites, and even more choices are available – Dangdang has begun to sell clothes, Jingdong has arranged the book market, Suning, Gome, Li Ning, UN1QLO and other stores have sought 1nternet access, and even underwear, socks and other goods have special websites. 1t can be said that the vast majority of the products and services of people’s daily life can be obtained through e-commerce the transformation of B2C to comprehensive business is the result of the joint action of consumers, businesses and the market. 1nternet users hope to get the convenience of one-stop shopping, and businesses hope to improve their profitability through scale advantages. The average gross profit rate of China’s B2C market is only 10% ~ 15%, and the gross profit rate of 3C products is even lower than 5%. 1n this case, only by expanding a broader market and having more commodity categories, can we survive on the advantage of large-scale operation Author: Zhuang Chunhui

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