Reborn Entrepreneurial Giant.

Chapter 463 Dealing with Competition
2011 is undoubtedly a year of dramatic changes in the e-commerce industry. On the one hand, the industry is growing rapidly, on the other hand, polarization is widening the gap, and on the other hand, logistics bottlenecks restrict many e-commerce companies, such as Amazon, Dangdang, Vancl, Mecox Lane, Suning, Kuba.com, Xiu.com, Haolemai, Yixun, and Yihaodian have either built their own logistics or will build their own.

Tongda Network integrates social express to help them grow. There are not many e-commerce platforms that have been attracted. Weak competitors such as Vipshop in Yangcheng have expressed their support, but unfortunately they can neither pay nor contribute.Fortunately, major courier companies such as Sitong Yida are willing to cooperate. Xiangjiang Investment and Yunfeng Fund invested in the courier company, and the courier company invested in Tongda Network, but Ali did not join.

Qu Li is already very satisfied. With so many e-commerce companies in China, most of them will be eliminated anyway. It doesn't matter whether they join the "Tongda Network" plan or not.

Dangdang’s “bleeding listing” raised less than US$2 million, and basically lost the possibility of challenging Jumei Taobao.The reason is simple. Jumei successfully issued 10 billion US dollars of corporate bonds before the crisis of China concept stocks, and there is no shortage of money in the short term.

Eslite Vancl has been platformized since last year, selling daily necessities, and now it has started small-scale layoffs. It is impossible to lay off employees when the industry is so prosperous.

Another two competitors worthy of attention, one is Suning and the other is Amazon. After Gome entered, Suning Appliance became the largest electrical appliance chain company in the country. Jumeigoudong sold about 200 billion 3C home appliances last year, and the entire industry has experienced huge changes In the face of changes, it is inevitable for Suning to develop e-commerce business.

Qu Li discussed the pressure brought by Suning.com with Lu Qi, Da Dongzi and others.

"Their operating system is many times worse than ours, and it is inefficient..." Da Dongzi commented on Su Ning unceremoniously.

China is the factory of the world, and the pressure of competition is greater than that of Europe and the United States. It is rare for traditional retail giants to be successful in e-commerce. It does not mean that Suning.com should not touch e-commerce. On the contrary, Suning should enter this industry in a more radical way.The most important thing is to let the online and offline business have a synergistic effect, rather than internal friction with each other.This requires entrepreneurs with excellent management capabilities and teams with strong execution capabilities...

Suning's management is too old, maybe they don't understand e-commerce at all, but how fast is the domestic e-commerce industry's rapid response capability?You can refer to the 996/007 work system.Without an excellent Internet person at the helm, I am reluctant to invest in e-commerce infrastructure. Failure is...

Although they look down on Suning.com, they have an advantage. They have many offline stores and annual sales of more than 1000 billion.

"Suning's e-commerce department is an independent procurement..."

"Damn it!" Qu Li couldn't help but marvel, this group of dudes wanted to compete in efficiency with a pure Internet e-commerce company like Jumei Goudong, where did they have the courage.

"Including the logistics distribution system is re-built..."

You can't live by yourself, Qu Li sighed, and focused on the next discussion target, Excellence Amazon.

Jumei went to the United States and killed Amazon by surprise. Bezos used his dominant position to prevent major sellers in the North American market from cooperating with Shopee. If it weren't for the support of Glory, how could there be 40 billion US dollars in sales a year.But before there was Facebook, then there was Google Shopping, and Qu Li adjusted Shopee several times to introduce local Chinese sellers, which finally put Bezos and other Amazon teams under pressure.

The North American market is definitely the main battlefield, but it is necessary to put pressure on Jumei in the Chinese market. When two companies are on the stage, it is impossible for one side to only defend but not attack.

Amazon has increased its investment in Excellent Amazon, and at the same time launched a global store opening plan to help more Chinese sellers sell their products to the United States.

In fact, they rely on their market position in North America to compete with Shopee for Chinese sellers. Even sellers who sell on Shopee will receive emails and phone calls from Amazon. It can be said that they have launched a close fight with Shopee North America.

Qu Li and Lu Qi were very helpless. Many of the high-quality sellers they got through the double screening of Juhuasuan and Jumei were attracted by Amazon and opened stores on the two platforms at the same time.

The only good news is that Joyo Amazon has insisted on the development path of self-built logistics, which will undoubtedly increase their operating costs.Looking at Amazon’s financial report for the first half of this year, the revenue is close to 200 billion U.S. dollars, and the net profit is about 3 million U.S. dollars. It seems a lot. But if they want to compete with Shopee in the European, American, Japanese and Korean markets, how much can they invest in China?

Excellence and Amazon are nothing to be afraid of, but Qu Li is afraid of their troubles. For example, they can raise service standards arbitrarily because of their low market share. If you say whether Jumei will follow or not, the cost of following up will be more than a dozen of theirs. Times, not following will affect word of mouth, and even give them a chance to grow up.

Ma Yun said that he couldn't find a competitor with a telescope. Dadongzi said he didn't pay attention to Taobao, he must be bragging, but the competition between companies is not just 6*18, double 11, the real killer move may be Hidden in a place that ordinary people can't see, Cainiao Network has hit Goudong's core advantage of logistics services, but at the same time it has also achieved Pinxixi.

"We should still stick to doing our own thing well, Goudong Electric..."

There is no doubt that Goudong Electric is the fastest growing segment of Jumei. Even without Quli, Goudong has soared from 100 billion last year to 309 billion this year. Guangdong Province has an obvious location advantage. Even if the growth rate of 300% cannot be achieved, it is a certainty that the growth rate of this year will exceed 200%.

Stimulated by the sales of Jumeigoudong's electrical appliances, Suning increased its investment and determination, and made a lot of publicity in the media, targeting Jumei directly.

"Does Goudong Electric have any difficulties now?" Qu Li asked
The division of powers and responsibilities between Qu Li and Lu Qi is not clear. Lin Bing, Da Dongzi and others all report to Lu Qi, and Qu Li can directly intervene because he is often not in Yangcheng and runs around the world. There is no contradiction.

"Can Jumei Logistics allocate more distribution capacity internally? I know that Jumei Logistics is under pressure to make profits, but the development of Jumei Goudong Electric is more important..."

Is this questioning his decision?Qu Li didn't expect Dadongzi to be so direct.This year, all B2C e-commerce companies across the country are limited by the poor domestic logistics environment. The boss of SF Express said that 90% of e-commerce companies build their own logistics, which shows that domestic e-commerce retail sales have not reached the upper limit.

"The sales volume of Jumei platform exceeds [-] million, and the number of sellers with [-] billion exceeds that of Taobao Mall? Don't just focus on your own one-acre three-point land. Improving the ability of Jumei logistics is more important than improving short-term GMV..." Qu Li sincerely believes that the positioning of "a technology and service company based on supply chain management" is better than becoming an e-commerce retail company.

The e-commerce industry will become more and more introverted in the next ten years, and there is no end in sight in the short term. Competing for technology, efficiency and price, isn't it all about the "supply chain" competition?

Seeing Qu Li criticizing Da Dongzi, everyone was a little surprised. After all, everyone in Jumei could see that Qu Li attached great importance to Da Dongzi, and even introduced him in his New Year's Eve speech.

"Then I have no objection!" Dadongzi sat down
"Has the processing capacity of Jumei Logistics met expectations?" Qu Li then asked

"The number of express packages we have handled this year has nearly doubled last year..."

(End of this chapter)