Reborn Entrepreneurial Giant.

Chapter 463 Dealing with competition

2011 is undoubtedly a year of drastic changes in the e-commerce industry. On the one hand, the industry is experiencing high growth, on the other hand, polarization has widened the gap, and on the other hand, logistics bottlenecks have restricted many e-commerce companies, such as Amazon, Dangdang, Vancl Eslite, Mecoxlane, Suning, Kuba.com, Catwalk.com, Haolemai, Yixun, and No. [-]haodian have either built their own logistics or will build their own.

Tongda Network integrates social express delivery to help them grow. There are not many e-commerce platforms to attract. Weak competitors such as Vipshop in Yangcheng have expressed support. Unfortunately, they can neither spend money nor contribute.Fortunately, major express delivery companies such as Sitong Yida are willing to cooperate. Xiangjiang Investment and Yunfeng Fund invested in the express company, and the express company invested in Tongda Network, but Alibaba did not join.

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

Dangdang "bleeds to the market" and raises less than 2 million US dollars, basically losing the possibility of challenging Jumei Taobao.The reason is simple. Jumei successfully issued US$10 billion in corporate bonds before the China Concept Stock Crisis. It will not be short of money in the short term.

Vancl Eslite started to become a platform last year, selling daily necessities, and now it has started to lay off employees on a small scale. It is impossible to lay off employees when the industry is so prosperous.

Two other competitors worthy of attention are Suning and Amazon. After Gome entered the market, Suning Appliances became the largest electrical appliance chain company in the country. Jumei Goudong sold about 200 billion 3C home appliances last year. Huge changes have occurred in the entire industry. Changes, Suning's development of e-commerce business is inevitable.

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

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

China is the world's factory, and the competitive pressure is greater than that of Europe and the United States. For traditional retail giants to do e-commerce, success is a rare phenomenon. This is not to say that Suning.com should not engage in e-commerce. On the contrary, Suning should enter this industry in a more radical way.The most critical thing is to create synergy between online and offline businesses rather than internal friction.This requires entrepreneurs to have excellent management capabilities and the team to have strong execution capabilities...

Suning’s management is too old and may not understand e-commerce at all. How fast is the rapid response capability of the domestic e-commerce industry?You can refer to the 996/007 work system.Without outstanding Internet people at the helm and unwilling to invest in e-commerce infrastructure, failure is...

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

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

"Holy shit!" Qu Li had to marvel. These idiots wanted to compete with a pure Internet e-commerce company like Jumei Goudong for efficiency. Where did they get the courage?

"Including the logistics and distribution system, it has been rebuilt..."

Qu Li sighed and turned his attention to the next discussion target, Excellence Amazon.

Jumei went to the United States to kill Amazon by surprise. Bezos relied on his advantageous position to prevent major sellers in the North American market from cooperating with Shopee. If it weren't for Honor's support, how could it have achieved sales of US$40 billion a year?But there was Facebook before, and Google Shopping later. Qu Li adjusted Shopee several times to introduce local Chinese sellers, which finally made Bezos and other Amazon teams feel the pressure.

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

Amazon has increased its investment in Joyo Amazon and launched a global store 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 are fighting closely with Shopee's North American site.

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

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

Joyo Amazon is not something to be afraid of, but Quli is afraid of them causing trouble. For example, they can take advantage of their low market share to arbitrarily improve service standards. Do you think Jumei will follow or not? The cost of following up will be more than ten times as much as theirs. Times, if you don't follow, it will affect your reputation and even give them a chance to grow up.

Ma Yun said that he couldn't find competitors even with a telescope. Dadongzi was definitely bragging when he said he didn't pay attention to Taobao. But the competition between enterprises is not just about 6*18 and Double 11. The real killer move may be Hidden where ordinary people cannot see, Cainiao Network has attacked Goudong’s core advantage of logistics services, but at the same time it has also made Pinxixi successful.

"We should still insist on doing our own things well, Goudong Electric..."

There is no doubt that Goudong Electric is the fastest growing sector in Jumei. Even without Quli, Goudong has soared from 100 billion last year to 309 billion this year. Jumei’s traffic and Quli’s popularity exceed that of Dadongzi. Guangdong Province has obvious location advantages. Even if the growth rate cannot reach 300%, it is certain that the growth rate will exceed 200% this year.

Stimulated by Jumei Goudong's electrical appliance sales, Suning increased its investment and determination, and did a lot of publicity in the media, aiming directly at Jumei.

"Does Goudong Electric have any difficulties now?" Qu Li asked

The division of power and responsibilities between Qu Li and Lu Qi is not clear. Lin Bing, Dadongzi and others all report to Lu Qi, and Qu Li can directly intervene. This is because he is often away from Yangcheng and travels around the world. There is no contradiction.

"Can Jumei Logistics allocate more distribution capabilities internally? I know Jumei Logistics has profit pressure, but the development of Jumei Goudong Electric is more important..."

Is this questioning his decision-making?Qu Li didn't expect Dadongzi to be so direct.This year, all B2C e-commerce companies in the country are limited by the poor domestic logistics environment. The boss of SF Express said that 90% of e-commerce companies have built their own logistics. This 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 Taobao Mall? Don't just focus on your own one-third of an acre. Improving the capabilities of Jumei Logistics is more important than increasing 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 increasingly involution in the next ten years, with no end in sight in the short term. The competition is about technology, efficiency, and price. Isn’t this all about competition around the “supply chain”?

Everyone was a little surprised to see Qu Li criticizing Dadongzi. After all, everyone in Jumei could see that Qu Li valued Dadongzi and introduced him specifically 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 parcels we have handled this year has been nearly twice that of last year..."