How To Break The Prisoner'S Dilemma In Real Business?

The demand for funds for electronic business is almost astronomical. The traditional department stores are unable to compete with the electricity suppliers who have completed many rounds of huge financing.

At the annual meeting of green companies in 2015, Wang Jianlin, chairman of Wanda Group, said that Wanda is transforming into the Internet Financial direction and exploring the O2O mode. In this regard, Alibaba group chairman of the board of directors Ma Yun immediately asked Wang Jianlin, "how much do you want to pay for O2O?" Wang Jianlin replied, "I am not prepared to pay too much price, but the price is too high and I will become poor."

The battle for the richest man in Wang Jianlin and Ma Yun has become increasingly fierce in every ranking list, while the bigger game behind Wang Jianlin and Ma Yun is quietly occurring between traditional enterprises and Internet companies. Commercial real estate and department stores have always been the business cards of Wanda and the most typical representatives of traditional businesses. As the leader of traditional enterprises, Wang Jianlin's answer of "rich and capricious" can also be understood as the general aspiration of traditional business management.

Wanda is just the epitome of thousands of traditional enterprises trying to enter the Internet outlet.

Even Wang Jianlin did not dare to pay too much for the transformation. It is proving that it is not easy for other enterprises to prove it. Although the decline of department stores' performance is due to the strong development of the electricity supplier, but Wangfujing, Wanda, Yintai and other domestic department stores chose to enter the e-commerce market, but after many years of development, most of them did not break through. Today, the development of department stores in e-commerce is more and more embarrassing.

According to the 2014 annual report released by Wangfujing department in March, although Wangfujing stores spare no effort in promoting the whole channel strategy, but from the earnings data, Wangfujing department store The construction of e-commerce projects is still facing serious problems of loss. According to the annual report data, in 2014, the loss of Wangfujing e-commerce project construction has reached 42 million 62 thousand and 800 yuan.

The "Internet +" outlet is showing strength in the stock market, but outside of the conceptual hype, back to the fundamentals of the company's operation, the blind Internet transformation is on the way. Traditional enterprise It may not be appropriate, or even "die faster". Wang Jianlin's transformation thinking is just the opposite. Traditional business Has been deeply trapped in the prisoner's dilemma. On the one hand, Internet companies are already on the verge of victory in the city, and on the other hand, the transformation to the Internet is limited by business thinking and the original business models. For the most popular and flexible Internet business, it is not so easy for traditional business, a huge market "follower" to want to be a pig on the draught.

Just as Wang Jianlin did not dare to pay too much for the transformation of O2O, only about $125 million of the 1 billion 900 million yuan raised by Liqun department store in 2014 was upgraded to e-commerce platform. For large e-commerce sites, 125 million yuan of funds is only part of the business test water. Even the start-up Internet companies can easily get tens of millions of financing.

More importantly, the problem is not the shortage of capital supply. For traditional department stores, the business model of heavy assets has its advantages in the past, but now it has become "endless". The department stores that rely on rentals to buy their own homes are already struggling to do their own business. Nowadays, the transformation of electricity suppliers to do self catering business means that they must start from scratch to establish a procurement system and logistics system. If you want to build second "Taobao" and build platforms on the Internet, it will be more valuable for brands to set up flagship stores on Tmall than on Wangfujing department stores.

Land and rentals are important revenue sources for traditional department stores. However, compared with the light assets of the websites, the shops and shops are becoming a huge burden on the brand. Even a lot of time, the traditional stores are becoming the "fitting rooms" of the electricity suppliers. This is huge for brands.