Traditional Giants Blow Up E-Commerce Bubble

"If we say domestic Electronic Commerce There is a bubble in the industry, so the bubble has just blown up. " Ma Xiaohui, vice president of Xiu Xiu net.

In 2010, venture capital invested about $1 billion in domestic e-commerce websites. But this year's domestic e-commerce Investment The amount may be 10 times that of last year, and the biggest source is the comprehensive OCS of the traditional industry giants.

　　 Radical traditional giants

Ma Xiaohui recently had dinner and chatting with several traditional manufacturing enterprises friends. These friends have been learning from him about the operation of the third party platform for online shopping and e-commerce.

"This year has become the first year of traditional enterprises' comprehensive intervention in e-commerce. Many manufacturing enterprises have invested in the purchase of their own B2C platform, or the third party online distribution platform has been incorporated into their sales system." He said.

More cases are corroborate. Li Jinkui, vice president of flash shopping marketing of mobile shopping company, told reporters that Procter & Gamble has recently imported all the products into the company's flash shopping platform, while more daily chemical companies are also negotiating.

Li Jinkui said that the main reason why Procter & Gamble chose to purchase flash phone shopping is that Procter & Gamble has a perfect online sales logistics platform in China, and it only increases the sales channel of a mobile phone shopping. Consumers purchase orders through flash shopping platform, and P & G online sales logistics platform completes the remaining links such as delivery.

It seems that this involvement is very reasonable. Consumer habits are changing due to the popularity of mobile Internet. E-commerce has become a form of sales channel that traditional giants must face and accept.

But there is always some big leap forward. In June 19th, suning.com general manager Ling Guosheng threw out a number of shocking figures in the industry. He said that conservative estimates suggest that the annual compound growth rate of domestic online shopping will reach over 180%. The sales volume of suning.com will reach 60 billion yuan in 2013 and 300 billion yuan in 2020. In 2011, suning.com's target was only 8 billion yuan.

Ling Guosheng pointed out that the core of e-commerce is the processing speed of information flow and logistics, as well as the service ability of the background. According to the plan, Suning will set up 60 logistics bases in the country by 2015, and invest 1 billion 200 million yuan ~18 billion yuan in 3 years to establish 6 ~8 cloud computing databases.

"300 billion yuan of sales, household appliances online shopping It only accounts for 50%~60%, and the rest is department stores and books. Ling Guosheng's theory shows that the traditional giant's radical in e-commerce is not only sticking to its traditional industries, but rather pointing to the Jingdong giants such as Jingdong mall, Dangdang and Taobao.

Not only Suning and Gome are developing e-commerce in a big way, but at present, household electrical appliance enterprises have basically set up e-commerce departments, or have opened their own businesses online, or sold on the third party online platform.

Liu Liang, President of Donlim power, pointed out that many household appliances have been monopolized by several household appliance brands in traditional sales channels, and there are no market opportunities for other new entrants. On the contrary, new channels of e-commerce have given new opportunities to new entrants. Therefore, the power to enter the microwave oven market is borrowing e-commerce channels.

　　 Is the risk rising?

But the traditional giant's full screen is regarded as the power to blow up the domestic electricity business bubble, or will lead to more private capital investment, and the risk will be bigger and bigger. Earlier, a number of coal bosses in Shanxi have been involved in this area.

Data from the Shenzhen e-commerce industry association show that as of the end of last year, there were 3700 e-commerce companies registered in Shenzhen, and last year there were at least 400~500 homes in e-commerce enterprises that failed or transformed last year, but the number of newly born e-commerce enterprises is also at 300~400 home every year.

"Conservative estimates, about 20% of e-commerce enterprises in Shenzhen have been flat or profitable." Gao Shenghan, Secretary General of Shenzhen Electronic Commerce Association, pointed out that because of the fierce competition, the average business age of these enterprises is less than 3 years. So far, no e-commerce enterprise has entered the top 5 of the country.

Su Daode, Secretary General of China industry website strategic alliance, said that due to the rapid pace of expansion of e-commerce in China, the cost of operation of e-commerce enterprises is high, especially the doubling of human cost.

"It's really scary." Ma Xiaohui pointed out that the traditional industrial giants' human reserves are generally biased towards traditional sales. In order to speed up, the traditional industry giants tend to dig into people without cost. "For example, the requirement of a domestic chemical enterprise to recruit e-commerce talents is that no matter which website you have worked on, the salary is doubled."

CNZZ, an independent third party advisory body, also pointed out in an analysis report released in April that to successfully operate an online retail website requires a lot of manpower, material and financial resources. It is more difficult for small and medium-sized websites to stand out from the outside world, especially the construction of logistics, which will be a bottleneck for the development of small and medium-sized websites.

Ding Feng, head of Guangzhou Ding Ding network, said that e-commerce enterprises are now competing in supply chain construction such as logistics, warehousing and so on. The cost of human resources is getting higher and higher. On the contrary, to attract customers, online prices are lower than other competitors, resulting in smaller gross margins and greater risks in online sales.

Liu Qiangdong, founder of Jingdong mall, has been criticizing the crazy involvement of those traditional giants. He said that although the market cake is huge, it can accommodate many enterprises, but there will be great integration in a few years. The professional e-commerce enterprises will have more advantages. This is the embodiment of the division of labor in the industry.

The traditional industry giants will also further promote the development of e-commerce in China. The traditional business tycoons' e-commerce format also needs the help of the third party e-commerce sales platform and information platform.