Where d vertical business why universal tragedy how to break through


vertical electricity supplier focused on market segments, the industry and product understanding is more profound, and therefore more likely to make features to meet the needs of a particular type of user groups, there is the market value of its existence. But in the electronic commerce rapid growth of more than 10 years, the development of vertical electricity supplier has not been satisfactory, although vip.com, jumei.com and a few industry star, but unhappy is the most, we have seen the sale of red child Suning, Mcglaughlin gradually wither, where the customer is experiencing a transformation of the storm, more a large number of former stars such as cotton, poly mesh products, carved out of people’s vision.

recent two years, the momentum of integrated business platform has become more and more fierce, robbed almost all of the limelight, accounting for most of the market share. In their squeeze, vertical electricity supplier is a quiet, almost no strength to fight back, the living dead is dead, but also suffered a continued decline in traffic and turnover. What is the reason? How to break the vertical


vertical electricity supplier business logic dilemma

vertical electricity supplier enterprises today’s predicament is caused by multiple factors, including business models inherent defects, but also has its own business problems.

1, vertical electric mode of war

vertical electric is compared to the comprehensive electricity supplier, compared to the latter of the whole category covering most of the vertical electric focusing on one sub category, also because it makes the vertical electric providers have some natural defects need to be overcome in the business model, so that a lot of people in the discussion is not a "vertical electricity supplier pseudo proposition".

first, consumers have a natural demand for one-stop shopping, because only the most convenient way, plus a comprehensive business platform on a variety of effective membership incentives to stimulate more consumers to complete all commodity purchases on a platform. In the choice of goods, consumers are more likely to face a rich variety of goods, rather than a few choices, this line is the same, so we see the line of business more and more concentrated to fixed values, but it is not perpendicular to the electricity supplier advantage. For the vertical electricity supplier, also often faced with category management confusion, because in general the 20% best-selling category accounted for 80% of sales, if cut off the remaining 80% categories, the category richness was greatly reduced, affecting the user experience. If you add 80% of the remaining category, will lead to a substantial increase in inventory costs. In short, because of these reasons, the integrated business platform has an increasingly strong scale effect, the user’s stickiness is also increasing.

then, for retail to complete the transaction needs to have enough traffic, whether this is online or offline truth is the same, but the flow structure of online and offline is completely different. The most important thing under the line is "lots, lots and lots". In essence, it’s people. When they choose the location, they are doomed

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