Dangdang Gome Cooperation Online 3 Months Online: Short Term Difficult To Change The Electricity Supplier Pattern

The long-standing Dangdang and Gome online shopping union alliances finally settled.

In March 1st, Gome online shopping mall In an email sent to this newspaper, the United States has made substantial progress in its alliance with Dangdang, and the news has been confirmed by CEO, Han Depeng and Dangdang, President of Gome online store in. According to Guo He, senior public relations director of Dangdang, the new Electrical City, which is working with Gome, should be launched in the first half of March.

In fact, this is only one of the cooperation projects that Dangdang has vigorously opened up the B2C platform this year. It is understood that Dangdang will cooperate with 3C, clothing, wine, food and other vertical B2C websites this year to rapidly enrich Dangdang products. The B2C website, which sells footwear as its main feature, will be stationed in Dangdang this week. The finalizing of cooperation with Gome online mall signifies the success of Dangdang shopping street mode.

These actions show that Dangdang speeds up the expansion of large-scale integrated e-commerce platform. Many industry insiders interviewed by this newspaper said that now is the key period for the major electricity suppliers to seize the largest market share and impact sales volume. Dangdang's cooperation with vertical electricity providers will make Dangdang's sales increase qualitatively. With the abundance of its products, competition between Dangdang and Jingdong, Tmall will also intensify, but it will not change the current electricity supplier competition pattern in the short term.

Loss of serious alliances vertical electricity providers

"Dangdang shop street or business activity is a major move to promote the 2012 development. A large number of well-known companies such as Yue Tao and dream bazaar have been added to enrich Dangdang product line." Dangdang chairman Yu Yu said recently.

"Dangdang has also done an open platform before, and now it is expanding this platform to rapidly enrich the types of goods so that users can have more choices. This is a very big thing for us this year. " Dangdang senior public relations director Guo He said.

According to Guo He, Dangdang's open platform has two main categories: one is its own brand, such as Lenovo, which has an official flagship store in Dangdang. The second category is vertical dealers, including electronic business, such as shoes, 3C, red wine, clothing. And Dangdang called "shop street mode", that is, cooperation with vertical electricity providers, "this year will be launched in large areas".

Yu Yu has said before: "we invited them to join Dangdang shopping street. We can see that some B2C companies and retailers have more knowledge of purchasing than Dangdang, and they can supply products for customers. Therefore, whether they are using electrical appliances or red wine, as long as they are good B2C companies and affordable, Dangdang will invite them to join our shopping street.

According to Guo He, the cooperation between Dangdang and vertical electricity providers is mainly sales. Dangdang's current partners are divided into warehouses and non warehouses. Warehousing merchants send goods to Dangdang storage center and use Dangdang's payment system and logistics services. And not warehousing, mainly refers to vertical electricity providers, such partners do not use Dangdang warehousing.

"Users place their orders in Dangdang, and use Dangdang's payment system to deduct the cost and return it to businesses. Dangdang For partners to open the background rights of the website, the cooperative business side is responsible for the delivery. If the other party needs it, Dangdang can also provide logistics services. " Guo He said.

Last September, the Taobao Mall (now renamed "Tmall") also announced that 38 vertical B2C websites were in place. Tmall.com 。 Dangdang did not disclose the specific proportion, but Guo He said: "Tmall has increased the threshold for businesses to enter the market, and Dangdang is the lowest in the industry." According to the industry practice, different categories of goods will be different. The proportion of gross margin will increase, such as clothing. The gross profit of 3C commodity is lower, but the proportion of the single item is large and the proportion will be lower. It is understood that 3C and clothing business is the main type of development cooperation of Dangdang this year, and others such as red wine, food and so on are also expanding ranks.

Jia Jinghua, a well-known IT commentator, thinks that Dangdang has expanded the mode of joint venture because the performance of Dangdang has been bottlenecks. Dangdang is an electric provider whose main advantage is books. But now, Jingdong, Gome and Ningdu have more books and more competitors. The advantages will be squeezed smaller and smaller. "

"Dangdang is still in a state of deficit after its listing. The way of cooperation is to increase performance and beautify financial reports, because sales volume will be improved after the promotion of shopping street mode. There will be a pull in share prices. " The analysts said.

Dangdang 2011 Annual report shows that Dangdang net accounted for 1.6% of the B2C online retail market share in the 2011 fiscal year, ranking fifth. But Dangdang's success in books and department stores did not extend to the 3C field.

Its fourth quarter 2011 earnings report showed that Dangdang net loss in the fourth quarter amounted to 130 million yuan. In 2011, the total revenue of Dangdang net in 2011 was RMB 3 billion 600 million yuan (US $575 million), an increase of 59% over the previous year, a net loss of 229 million yuan (US $36 million 300 thousand), and a net profit of 30 million 800 thousand US dollars in the same period last year.

It can be seen that Dangdang's loss in the fourth quarter of 2011 has accounted for 56% of the total loss in 2011. This shows that the fourth quarter "seriously dragged" Dangdang's annual performance. Dangdang CEO Li Guoqing said that the rapid growth of the department store industry in the four quarter of Dangdang caused the overall loss rate to increase, which is the main reason for Dangdang's loss.

Export traffic is afraid of being married.

"Independent operation is not as good as open platform in the direction of scale, but the difficulty of open platform lies in multi stakeholder coordination, system docking and customer service protection." Chen Shou, an analyst with Analysys International, presented. Obviously, Dangdang has regarded the expansion of this category as a life-saving straw.

But Jia Jinghua believes that the open platform is "palliative," and will create traffic for others, and become a platform for other people to import traffic. There is a certain risk. "

For this concern, Guo He told our reporter, "pull the vertical website in, will the users diverge, will the users buy a happy shoe after Dangdang, buy it directly on Le Tao's website next time, but we think that the comprehensive electricity supplier has its own advantage compared with the vertical class, that is, it can provide one-stop consumption and users have more choices. Of course, there will be some competition between them, so we will strive to do all the products in the vertical field. "

Guo He believes that Dangdang users are relatively high income, high education, high consumption of three high groups, the industry is a valuable crowd. In the network operation, electricity supplier conversion rate, Dangdang conversion rate is relatively high. This is also a reason for attracting vertical electricity providers.

As for the platform instead of the self run mode, Guo He said that cost saving is not the main reason. "The cost advantage brought by the joint venture mode is not the most concerned. Instead, vertical electric providers can do more professionalism in their field. For example, the reason why we choose to make platforms on clothing and other categories is that clothing is a professional profession. And our Team experience Consciously, there are no vertical websites that are professional and rich, so let the most professional people sell products on Dangdang.

"Another, we will consider the cost of time. If you talk with each category brand one by one, cooperation with vertical e-commerce can quickly increase categories and save time. At the same time, the cost of operation is also low. No warehousing, no need to use Dangdang warehousing and logistics, just provide platform and background, merchants upload photos of their own products. The pictures they make may be models, more beautiful and more fashion. Guo Heru said.

It is reported that Dangdang's requirement for the incoming electricity supplier is to ensure that the price is "comprehensive minimum". "You can't ask every commodity to be the lowest in the market, but according to the comprehensive evaluation of sales volume, if the lowest one is. This is the minimum requirement for businesses to enter. " Guo He said.

According to the introduction, according to the industry custom, after entering the business, it is necessary to pay the margin, and the margin is used for the consumer compensation. Dangdang will also carry out a set of training for cooperative businesses including user habits, image selection and promotion. The only criterion for choosing a cooperative business is user experience.

Users who buy the cooperative e-commerce products on Dangdang can accept the unified customer service service. Users encounter problems, Dangdang will solve the problem. For example, users may buy goods at the official flagship store in Lenovo, customer service may be transferred to Lenovo first, but if the other party is not satisfied with the solution, it will take full responsibility.

Moreover, it will provide door-to-door clothing and unconditional return according to Dangdang's service standard. We are also the first to propose that when users return goods, they will pick up the goods and return the cash.

Dangdang said that there was a certain expectation of sales, but it could not be disclosed. At present, it is not urgent to rely on this to make money. "In the short term, we do not want to make too much money from it. Mainly to expand their categories, enrich the choice of consumers.

It is understood that in order to improve the service level, it is mainly the speed of supply. In February, Dangdang set up parallel warehouses in Southern China and East China. Beijing is the most complete department store in the past, but shipments outside Beijing are slow. The warehouses in East China and Southern China are almost the same as those in Beijing. In April, there were 10 such warehouses nationwide.

Short term difficult to change the electricity supplier pattern

According to the reporter, clothing and 3C are the main categories of Dangdang joint expansion, and the cooperation with Gome online mall has secured an important city for Dangdang's expansion plan.

It is said that the negotiations between Dangdang and Gome online mall have lasted for six months, and Zhang Bing, director of sales and marketing of Gome online shopping mall, who is responsible for the specific negotiations, said that the whole process of negotiation and cooperation was carried out under the condition of extremely confidentiality.

Jia Jinghua believes that the negotiations between the two countries last longer may be due to concerns from GOME. "Gome is now in urgent need of expanding its online share, but Gome already has it. Gome online shopping mall Both of them are running independently. If they are stationed again, there will be some conflicts, which will not balance each other well. Their internal contradictions and conflicts have not been solved, and have added new troubles. "

Chen Shou sent also believed that Gome's electronic business would inevitably conflict, but "it would not be a major problem".

The details of this cooperation, Gome and Dangdang, declined to be disclosed. However, analysts believe that the cooperation between the two is not as simple as opening a store. Dangdang new electric appliance city will be built by Gome online mall.

Although Guo He did not disclose more details, he said that the cooperation mode with Gome online mall is just like other vertical e-commerce partners.

According to this estimate, Dangdang new electric city will be responsible for warehousing, logistics and other links by Gome mall, while Dangdang is involved in the sales division. "Cooperation with Gome online mall should be launched in the first half of March." Guo He revealed.

Li Ronghai, a IT industry analyst, said that it is the key period for the major electricity suppliers to seize the largest market share and impact sales volume. The strategic intentions of Gome online store and Dangdang are obvious. Gome online mall hopes to make the biggest online appliance retailer quickly. Dangdang hopes to achieve the first scale on the overall sales plate.

Chen Shousong, an analyst with Analysys International, believes that this cooperation is good for both sides. Electronic Commerce (e-commerce channel) strategy is through docking with Dangdang platform, so that its supply chain value is realized. For Dangdang, "directly use the advantage of Gome's supply chain, and strive for less than 5 years."

After Dangdang shopping street project expansion, commodity category and Tmall, Jingdong mall coincidence degree is higher and higher. The competition between them is bound to intensify. Dangdang will not affect Jingdong and Taobao at present. It will not change the current competitive situation. " Chen Shou sent to our reporter.

AI consulting data show that in the field of B2C, Tmall accounted for 53.3% of the market share, Jingdong mall accounted for 17.2% of the market share, ranking third of suning.com was only 3.3%, while Dangdang was 1.6%, ranking fifth. There is still a big gap between the top two.

Whether cooperation is sustainable is the key.

Guo He, director of public relations of Dangdang, told our reporter that cooperation with vertical electricity providers is not a short-term strategy. "Win win together, help vertical electric power enterprises bigger and stronger, which at the same time will bring greater sales and profits to Dangdang."

Guo He said that with Dangdang cooperation, vertical electricity providers have saved market and operating costs, and they can also pull traffic to their websites. Dangdang's traffic will be diverted to the cooperative electricity supplier. Investment in advertising fees will also be reduced. "Roughly calculated, profits are no less than sales on their own platforms."

The clothing business, which is mainly selling shoes, will also enter Dangdang this week. Yue Tao CEO Bi Sheng told investors newspaper that he is willing to work with Dangdang for a long time. This is a good thing for both sides. It is understood that Le Tao has been stationed in Tmall in the form of shop.

Guo He said that Dangdang could choose several vertical electric providers to cooperate on the same category. "The standard we choose is to let consumers have more and better choices (variety quantity) and lower prices. Of course, the service of entering the business is also one of the most critical factors, so if a business can do that, it may be exclusive, otherwise it will need complementarity."

Jia Jinghua pointed out that this may cause conflict with the Dangdang cooperation between the electricity supplier, "for example, fan shirt is selling, other clothing electricity suppliers are also selling, different clothing suppliers enter the shopping street, how to allocate advertising space and bunk, there will be competition."

"At the same time, there will be trouble in price war. Similar categories of goods, Dangdang will require partners to participate in promotional activities, which is not good for users of the original website. Vertical electricity providers will come in, which does not mean that this model can last long. Whether long-term cooperation is the most important thing. Jia Jinghua is the analysis.