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    Will Taobao Grow At A High Speed?

    2015/3/12 21:23:00 22

    TaobaoMarketTrend

    The emergence of Taobao is a commercial miracle. It has opened up channels for commodity producers, sellers and buyers. With the help of Taobao platform, all kinds of commodities are directly displayed to customers, with transparent products, transparent prices and transparent user evaluation. Through the Taobao platform, users can directly select the lowest price, the best user evaluation, and the best quality product. The user is very dominant, shopping experience is very good, short time can browse a large number of goods, time efficiency is very high, it is important to save a lot of money, time, and physical strength.

       TaoBao After its emergence in 2003, it has been developing at a high speed. In 2014, Taobao's sales reached about 1 trillion and 170 billion, becoming the main contributor of Ali group's sales. But Taobao's growth rate has been declining since 2012, 1 trillion in 2012 and 1 trillion and 100 billion in 2013.

    In 2003, when Taobao launched the Chinese e-commerce platform, it promoted the development of many electric business enterprises, many of which were developed by filling the blank space of Taobao. For example, users can't buy them in Taobao. Price Low quality brand name products, so the emergence of vip.com, now the market value of tens of billions of dollars. Travel and vacation demand On the Taobao, the management is chaotic, unable to get consumer trust, so Ctrip, where to go, eLong appeared, the market capitalization total billions of dollars. Businesses need to gather popularity in a short time to promote their goods and services, so the group buying network appears, and the US group estimates the market value of US $7 billion.

    Taobao can not provide catering booking and comment services, so public comment has appeared, the market value is also close to tens of billions of dollars. Taobao is unable to provide credible, standard, and comprehensive electronic products, and its biggest competitor, Jingdong, has appeared in the market with a market value of more than 40 billion dollars. Taobao was unable to provide book sales for all its customers. There are more and more enterprises to fill Taobao blank, the emergence of specialized electricity providers, changes in user consumption habits, and the emergence of O2O concept and micro business mode. The golden age of Taobao's fast growth is about to end.

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    Yesterday, PEAK's 2014 earnings report showed that by December 31, 2014, PEAK authorized the number of retail outlets to be 6004, compared with the end of 2013, a net decrease of 8. According to the city level, the number of retail outlets in the first tier cities decreased significantly from 227 to 165, with a drop of 27.3%.

    In its announcement, PEAK said that in 2014, the company continued to prepare for its future growth and further enhance its brand image by closing smaller retail outlets with less efficient outlets and offering larger retail outlets. It is worth noting that PEAK, which has been emphasizing the development of the two or three tier cities, has not only contracted the front line in the first tier cities, but also has seen a marked decline in the number of retail outlets in the second tier cities. From December 31, 2014 to December 31, 2014, the number of retail outlets in second tier cities was 700, down 60 from 760 in the end of 2013, down by 7.9%.

    By contrast, PEAK's expansion in the three tier cities is continuing. The company's retail outlets in three cities reached 5139 in December 31, 2014, an increase of 114 from 5025 at the end of 2013, an increase of 2.3%. "China's second tier and three tier cities have been the focus of PEAK's marketing in recent years, because these cities are faster and less competitive than the first tier cities. Therefore, most PEAK authorized retail outlets are located in second tier and three tier cities. PEAK explained in its announcement.

    In recent years, the sports industry which has experienced a rapid development is facing a wave of closing shop. Although many brands have experienced a period of adjustment, the trend of closing stores has weakened. But with the influx of international brands such as fast fashion, the pressure of domestic sports brands is still not small. As PEAK said in its announcement, the sporting goods industry is facing a new market segmentation. "On the one hand, the industry is suffering from the impact of fast fashion and e-commerce channels; on the other hand, international sporting goods giants have long been eager to penetrate into the two or three tier cities and actively compete through online businesses." PEAK said in its announcement.

    According to the announcement issued by PEAK, the net profit of the company decreased from 311 million yuan in 2012 to 21.3% yuan in 2013 to 244 million yuan in 2012. According to the combing of the Beijing Commercial Daily reporter, it was found that PEAK's net profit has declined for third consecutive years since 2011. In the 2014 year, the profit attributable to PEAK shareholders was 321 million yuan, an increase of about 31.3% compared with 2013.


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