Jingdong mall competition strategy and risk analysis


we can roughly be divided into the electricity supplier platform type, self style, and brand electricity supplier three categories. Platform based electricity supplier to Taobao as the representative, the most effective play to the advantages of the Internet, the annual fee and advertising fees earned businesses to use platform, Taobao and Tmall have big enough users and businesses in the base, the network effect, the basic form of monopoly in the field, Tencent, Jingdong, Dangdang, Amazon is also a small amount of China platform of business income, but the advantage of the platform and Taobao huge difference. Where the customer is the representative of the brand business, mainly to earn a premium brand, early to establish brand image, promotion costs. Self electricity supplier more retail form, mainly to earn price difference, the gross profit level is low, the model mainly depends on the scale and efficiency to improve profit margins, but on the whole is the low profit business model, self Jingdong’s largest electricity supplier website is still operating at a loss.

one, electricity supplier ecosystem circle


business circle of ecological infrastructure investment (logistics, IT) —> user experience / system to enhance the efficiency of order —> scale growth —> purchasing power / variable cost reduction of —> sustained "low" —> new users / repeat purchase of large-scale —> —> —> / cash flow financing; and input…… Scale operation and improve the efficiency of the system, the electricity supplier website is the formation of a virtuous ecological cycle of the two core links, but also the premise of sustainable cash flow.

in the analysis of Jingdong competitive strategy, we first summarize the business logic of proprietary business. It says that, compared with the platform type electricity supplier, self electricity supplier more emphasis on retail trade, infrastructure related fixed investment is huge, especially for logistics and IT system input, can effectively improve the system efficiency and the user experience, so that the size of the order increases, scale not only reduces the variable cost, but also can make the electricity supplier to obtain the bargaining power in the procurement and supplier, and the cost savings to low commodity prices continued to improve website customer feedback, repeat purchase rate, make the website gradually with the advantages of scale, which can force a continuous cash flow of investment, to further enhance the user experience, to achieve large-scale efficient operation.

domestic electricity supplier website is basically at a loss of operational stage, the scale of the operation and efficiency of the system is worth operating in the domestic electricity supplier website reference. Amazon is aware of the importance of the start-up period of the ecological cycle of the electricity supplier, in 2011 the company achieved a net revenue of $48 billion, a net profit of $630 million, gross margin stable above 22%, operating cash flow net inflows of $3 billion 900 million, more than the growth rate of net profit growth.

two, Jingdong business logic


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