A "B2C basic curve" with B2C format you see through the essence of evolution, but also reveals why the Internet will change the basic law of e-commerce.
24 years old to enter the Stanford Business School, when Chen would not dream of Europe three years after he and two other boys could even Liu Hui Dai Yusen and start with the cosmetics business. But did not think that this beauty services specifically for women, vertical B2C websites category "United States together superior product" (the original "U.S. group") on-line only four months, on orders of more than 1,000 single. According to each one is usually a combination of two products to be considered, the equivalent of 1000-2000 models of goods.
Predictions on B2C e-commerce: the outbreak of the light pattern 5 years
In so doing, the United States together superior products to achieve monthly turnover of several hundred million yuan, and maintain a rapid growth, but also because it is guaranteed authentic, customer price is usually higher than Taobao more expensive, to ensure the quality of service at the same time there is a certain profit margins. In the rapid development of four months to 70 scale, working bit soon is not good enough. At the same time very focused as cosmetics, the formation of user expectations and again to buy the loyalty of its traffic conversion rate is several times more than ordinary e-commerce site. United States together excellent products have been directors of New Oriental Education Group, Xu Xiaoping and other famous entrepreneurs to invest.
United States together to achieve superior product is currently sold primarily through word of mouth and step on the popular "buy" movement. As the service life category in this year's hot buy, like the United States together superior product that limited category, the time limit of light B2C company's rapid development is not an isolated phenomenon. Only for women's luxury high-end users have begun to famous online private sales picking up. For example Shangpin network, generally price their goods in 3000 dollars to several million yuan, limited to high-end consumers, and semi-enclosed "private sale" form. Network set up early is still the reference object is the product of Gilt United States and Europe Vente-Privee and BuyVIP. Online product line is currently less than six months have been Lei Jun and other investors in Series A investment.
A curve of four models
"We have to do is light B2C." Superior products together beauty products monk Chen Ou Zhao, founder of the network to the city invariably do their business model classification. B2C model of Zhao has studied the city in their own minds to the entire e-commerce world, drew a curve, it's vertical axis is the amount of stock units (SKU), the horizontal axis is the total unit sales of goods. This curve is dotted with four modes of B2C: the Amazon, represented by super-heavy B2C; to Zappos as the representative of heavy B2C; to Glit represented by light B2C; finally had earlier inspired GroupOn, later sub- Amazon acquired Woot, is ultra-light B2C ancestor.
The problem will lead from this curve. Why last six months there have been many light and ultra light B2C B2C, and quickly became popular? If the environment changes from the point of view, due to super-heavy and heavy B2C B2C maturity, its various components, such as supply chain, payment, warehousing, logistics are improving; At the same time, the cloud server costs down, gathered for the mass consumer purchased energy, creating a never before the convenience.
The cost of turning point in the United States in 2002, probably later, probably in China after 2007 show. For this reason, we see many of the "Light Company" or even "ultra-light company" was born at that time. We determine the next 1-2 years, B2C B2C world will see a light flash point of development for the first time, the United States GroupOn just a fuse. Aspect second half and next year's demand curve is the lower part of the region: from a large number of ultra-light companies, out of some high-quality lightweight B2C.
Recalling the historical development of B2C, we found that the rise of the king of ancient B2C with a number of environmental changes are the facilities provided, such as the Amazon early on the Internet to solve the three-dimensional product display and distribution of the next day delivery; Zappos by reverse Logistics need to try to solve the problem of the product can be returned; Jingdong Mall broke major appliances complex inventory management and logistics systems are imperfect in the establishment of large warehouses in China to reduce costs; Eslite achieved by reverse-customized products completely rely on the Internet to create a private label; GroupOn through social media and simplify the shopping process to solve the line of life services to businesses online marketing; and Gilt half hidden by the membership "private sale" form to solve the high-end luxury online marketing.
Sort of historical development context, we can see, such as the United States before 2002, because the dual physical and information technology resources are still not perfect, there are biased towards the type of B2C; 2002 years later, more focused on B2C innovative media , information services and business models above. Similarly in China, until 2007, it appears PPG, Eslite other light companies. Given above, from our perspective of the demand curve, further summary of these changes and innovations, we find that, after 2007 the trend was polarized extension, the "heavy" to achieve the ultimate of the Amazon and the "light" to achieve the ultimate Woot, GroupOn mode differentiation is more apparent. And each extension and the outbreak of the lighter side, in the next 1-2 years there will return to trend. Demand curve from the point of view, is slowly rising from the ultra-light to light, such as the United States, Gilt, yet domestic product, the United States together excellent products and other formats.
Overall, B2C format is freed from material bondage, into the boundaries of media and information services, to develop for a number of formats. Next, we will go deep into this part of B2C basic curve of the tail, to see how the evolution of e-business model by adding new constraint born.
Predictions on B2C e-commerce: the outbreak of the light pattern 5 years
The severity of the constraints determines the number of model
Is well known, like Amazon, B2C Jingdong Mall and other heavy goods early, starting from a single category, then slowly release the category, providing more services, until recent years become a "Power by Amazon". In other words, to "heavy" type of B2C, actually continue to release constraints. The more severe the B2C model, the less its constraints. The recent popularity of buy other models, by contrast, geography, time, category, quantity, and so are many constraints, it is ultra-light mode.
Analysis of the B2C model constraints, is nothing less than a few dimensions: time, sales, sales region, SKU, customer base segmentation, price, different services. In fact, the increase is often the first qualification for the B2C itself reduce costs, such as full-time sales of a commodity means that there must be inventory, the cost of inventory took place either in the B2C business, or occur at the supplier. B2C companies always want to try to be quick to put goods sold, increase turnover, but the full-time sales of a product, inventory turns will be restricted to a limit within this time limit may be the production, distribution of time delay.
One of the most realistic example of good music to buy ─ ─ CEO Li Shubin said in 2007, good music to buy start-up, he did not buy the supply of goods in a warehouse agent, or even a lot of brand shoes, agents also put their shop floor. Good music to buy on the most primitive means of getting goods: a wagon as early as 8 am to 12 full-Beijing run each store the goods, sometimes the store staff busy, needs, and so the car can not, instead, a circle back to see, shoe shop has been sold. As the supplier can not do its docking inventory systems and B2C, B2C companies can only transfer the stock to their side, in order to ensure that users can get goods on order.
Traditional home appliance stores may limit the number of working days to 40 days it is difficult to reduce, and out of geography, the physical constraints of the cloud business, turnover rate can be infinitely upgraded. And as Jingdong Mall, good music to buy this B2C, the company had its own is fast, but it was too much emphasis on traditional suppliers of physical and geographical limitations, "slow down." The GroupOn clever is that it will not shop on the ground of the stock transfer to their side; Gilt even for the user, from the famous designer of luxury goods at the custom limited edition, factory production is good on delivery, but also do everything possible to Avoid stock.
Limited supply, limited to a maximum of one day served, SKU number 1, the service provided entirely by the shop on the ground, gathered more than enough as long as the target consumers, in theory, that can be infinitely high turnover rate. In fact, the limit is not the final number of consumers, but the sum of all the desire of consumers to buy energy ─ ─. The potential of the human desire is infinite, good e-commerce model is the human desire to find the gap on the dam, and then focus on implementation, to drill into big cracks.
Qualification in order to concentrate more on the nature of implementation, in order to better user experience, the formation of the user's expectations, in many e-commerce sites to build brand uniqueness. For example, the actual user can only remember three of B2C selling cosmetics brand, and ultimately experience a little better or a first-mover advantage, so that users can open the mailbox every morning look at the 10 o'clock today, buy what products. The long run, the formation of fixed habits and psychological expectations of B2C brands, will become the most frequently purchased one user.
But interesting is, historically, B2C companies are always eager trend of lighter to heavier. Such as the 1999 birth of Zappos is just a limited vertical category, followed by or towards heavy-duty; China emerged in 2007 Eslite limited to its own brand, men's shirt category, but then gradually expand the category, and even become a platform ; even GroupOn the typical ultralight B2C, and now has started the liberalization of restrictions, essentially selling a product is no longer a day.
It is easy to explain this trend. Because fewer restrictions, access to a larger income, the more opportunities. When a business under certain limited conditions, be excellent, its brand awareness, flow accumulation, cash flow is sufficient to support its re-opening part of the limited time, its bound to pursue greater opportunities to cross.
Dialectic of light and heavy
B2C is considered heavy in the past is a hard business, all looking for low-cost, high-profit light mode. Based on what we see "B2C basic curve," light mode does exist, and will be a substantial outbreak, but that does not mean that weight is not necessarily the economic model does not mean that light can always remain asset-light model.
Chen reason not hesitate to invest in Europe buy cosmetics business, because he found that "never had cash flow beginning such a good Internet business." Indeed, the demand curve from head to tail the evolution of the model, cash flow patterns also changed: from the whole into the shed to feed the whole a whole, and then scattered into a whole.
Such good music to buy goods is bought, the whole into the shed, that is, the full amount of settlement to the supplier, and then scattered collection from consumers; famous private model is to sell the whole buy-out supply, and then within a few hours focus a lot sales, close out of the whole into a whole; and GroupOn supply is not to achieve outright, but focus a lot of money consumers pay to GroupOn account, and then with the actual experience of consumers to shop on the ground service, GroupOn again batches to pay the ground stores, GroupOn model with a natural pool of cash.
Jingdong Mall, Amazon, etc., in a certain category of goods before most mainstream channels, have come up with a lot of money to buy goods. Benefit is adjusted according to changes in stock price; risk is that once the inventory management of any accident, the backlog of goods, no new cash flow came in, it is possible to miss the timing of orders to suppliers. Such good music to buy brands need to attend once every six months new orders, otherwise it can only store so hard to the ground channel scan cargo. Therefore, the calculation of inventory management must try not to go wrong, because it affects the company's cash flow statement is the core of B2C companies fatal.
But things are always pros and cons. Because of heavy B2C always walk on the cost curve of the blade, the risk of money-strand breaks at any time, so they have a good inventory management. Good music to buy from 2008 to today the establishment of inventory management systems, SKU but dropped to 4,000 from 5,000, according to Li Shubin think this is the case of the supply chain, adjust the number of the most economical.
On the other hand, light mode to obtain high profits do not think you can sit back and enjoy the beginning of its ─ ─ discount must be returned to consumers at lower, middle and late re-balance the need to rely on the exclusive, to provide differentiated services in order to retain customers. Scarce material resources, and superb management skills, outstanding management talent, and even CCTV or specific areas of core media advertising resources are limited, and must go to compete for assets.
Invested heavily in customer experience is one aspect. This point the most "Internet" approach is like the U.S. footwear B2C websites Zappos, the profits were put into service - once sent two pairs of shoes for customers to choose not to return to direct, through a period of time not like you can unconditionally return. Li Shubin said, once sent two pairs occupy the biggest cost is not a commodity to sell, will reduce the rate of turnover, the consumer is more rational, willing to pay for the services of the United States can be achieved. China is still price-sensitive consumers who need the market to mature. In fact, in the United States Zappos is because the profit goes into service, not separately listed successfully, eventually acquired by Amazon.
Increase the assets of the reasons above there is a more important underlying reason is that consumers are still more likely to believe that long-term appear in the mainstream media, providing a better service experience of the company. Because in a big manufacturing country, China, genuine goods and sometimes even professional B2C companies are difficult to judge. Therefore, B2C companies must guarantee and reliable brands, or an agent cooperation, and through long-term popularity of such knowledge to the outside world to get consumers to trust. To some extent, these long-term investment needed to build relationships and consumer confidence, are constantly changing them lighter weight.
B2C will light everywhere
So the basic curve in the B2C model ─ ─ four super-heavy, heavy, ultra-light, light in the end a period of time which model is the future development of the hot spots? From the current development trend, the ultra-light mode is bound to the light mode conversion to sustainable development; and heavy-duty and super heavy-duty model is increasingly becoming a minority in the business of the game, but the formation of the support platform, will further promote the light pattern outbreak.
In fact, in the B2C world, light and heavy, always a dialectical question, is not eternal. Maybe when all the brands of the ERP are seamless and B2C businesses, when Jingdong Mall of B2C storage entity can be sold to specialized companies to operate their own is only responsible for data mining; Eslite perhaps more to launch their own brand design products, will acquire assets of heavy plant; may buy a good music experience to set up shop at the headquarters level, a special brand of shoes repaired. Anything is possible.
All this changes the premise of the industrial chain of specialization more detailed. Now show a trend, there are important assets of the B2C platform has begun to appear as a background value. To have such good music to buy for the Pathfinder and other famous brands shoes manufacturers do network channels, front-to back-end services to build the entire system, so-called "cloud inventory" of the platform. Eslite has a similar V + as the generation of many brands such as shipping and inventory back, front-end management system. The establishment of these basic services platform to promote the lightweight B2C emerging generation. Especially in a category with more than one million consumer groups, revenue from 1 to 20 U.S. $ 2 billion B2C, will serve as intermediate forms abound.
These lightweight B2C buy some from other ultra-light mode of evolution, such as GroupOn has accumulated by users every day to relax the constraints of selling a product. Their work email pushed by consumers to different people give their best for today