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On B2C breaking changes pattern

This is a

attention to the foreign e-commerce market and the traditional enterprise, also met some friends, including the United States B2C company, overseas C2C platform big sellers, logistics company boss, investment manager VC, an analyst at consulting firm, the traditional enterprise business trader. And a variety of different perspectives of the intersection, the collision of a lot of sparks, some of their own point of view, a number of phenomena with a new view:

1 China B2C profit margin:

everyone said that China’s B2C profit is too low to make money. In fact, this is a misunderstanding. First look at the margin: South Korea and other countries B2C mature electricity supplier industry average gross margin of only 10% – 15%, can still profit. The average gross profit Chinese B2C Bimei Han higher, problem is small, the information base is weak, the application of IT system, to control the supply chain capacity is insufficient, cause the cost is too high, the efficiency is too low. These external and internal problems, need a long time to solve, improve operational efficiency and reduce operating costs to optimize the supply chain (inventory turnover rate; per capita order processing capacity; reaction speed, etc.). Only when the operating efficiency is high enough, the operating cost is low enough, the advantages of B2C can be displayed. This is why the United States NEWEGG gross margin is half of the net interest rate of BESTBUY is twice the reason why. The second is: net profit in the mature markets of most commodities are retail net interest rate is very low, rely on economies of scale high net: AMAZON; WALMART; TARGET and COSTCO of the net interest rate is 3%; BESTBUY is 1%; ZAPPO is 5% (if you count into a one-time amortization deficit); domestic diamond B2C to emulate BLUENILE is 4%. (the net interest rate low line is the main reason of low cost, online net interest rate is the price, is short of scale (mode) decision cost; cost (efficiency) net profit margin decision; decision price; price decision scale cycle).

2 Why build logistics:

we can see that the domestic TOP B2C in addition to compare investment in cheap Dangdang (Dangdang commodity characteristics on delivery requirements are relatively high), excellence; Jingdong; customer; red child Newegg; have their own distribution team and the company continues to expand. Why did we put the self built logistics? Compare Sino US logistics gap: the United States is the basin environment, a hundred years of history of the highway, completely covering the whole country, the logistics market developed (FEDEX; UPS; DHL four express company which have decades of History); Chinese mountain environment, more than dirt road highway the environment, and the mountainous area, backward logistics market (the first express company is not more than 20 years), due to market demand and supply capacity of a serious mismatch. In this environment, Chinese express company in the cost; speed; service; the risk can not meet the requirements of B2C, so I can not "specialize in". So >

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