introduced a new entrepreneurial project "Small Transaction" this morning - a personal life trading platform. When I saw this product, I remembered a visit I had with Xie Li, who is currently the executive vice president of Heart K Group and the founder of Chunpai Life Wuhan Technology Co., Ltd.Xie Li should be regarded as a typical representative of post-80s entrepreneurs, college students, and self-made entrepreneurs. He entered the e-commerce industry very early. He was born in 1984 and became the "most awesome underwear king" in 2009. He rose from a poor student to an upstart with a net worth of tens of millions. As a result, he was invited to become the youngest vice president in the history of K of Hearts Group, which enabled this traditional enterprise to successfully transform into e-commerce. In 14 months, it took 14 months to increase the e-commerce business of K of Hearts from almost zero to an annual turnover of nearly billion.
In the Taobao system, the survival of small C2C merchants is becoming increasingly difficult. The following are some of Xie Li’s views on the development of C2C e-commerce:
In the Taobao system, it is becoming increasingly difficult for small C2C merchants to survive. This is indeed the case, and it has a tendency to spread. You can calculate an account. According to different categories, different corporate stores, specialty stores, etc., the current qualification requirements for entering Tmall include a deposit of 150,000 or 100,000, and an operating fee of 60,000. Therefore, if you want to open a store, you must prepare at least hundreds of thousands of real estate. After preparation, you still need to maintain inventory. Often, the inventory turnover of a small and micro enterprise is about 300,000 to 50,000 yuan of goods. In addition, there are a series of other expenses, such as 15% commission for each order, decoration of prosperous stores, through trains, marketing, etc. In other words, the gross cost of running a small micro store is one million. If you want to build a large store, the cost will be higher. If
wants to become bigger in Tmall, it may want to do a Juhuasuan. Juhuasuan currently charges RMB 80,000 to RMB 200,000 in remittance fees for a health product. This is a one-time investment with no return. The second is the deposit guarantee. The deposit for a product is 300,000, and it is guaranteed on a recurring basis. In other words, after this product is guaranteed with 300,000 yuan, another 300,000 yuan will be required for the next one. Also, a deposit is required during Double Eleven. The money is equivalent to being frozen on it. The most I ever paid on Taobao was a deposit of 1.2 million, which was all frozen on Taobao. The deposit of 1.2 million yuan is frozen, which is a very high threshold for a college student or laid-off worker to start a business.
Now when individuals open a small C2C store online, they will find that competition is very saturated at this time. What are you fighting for at this time? In the past, the fight was about who wakes up early, gets up early, and reserves talents. What are you fighting for now? Whose supply chain is strong? But the reality is that laid-off workers or newly graduated college students have finally found the supply chain, but after the supply chain becomes larger, they are likely to start e-commerce on their own. Or before you realize it, your competitors have already opened stores online. Since the threshold for opening a C2C store is low, competition is very strong. As a result, there is such a large supply, but the demand is certain. At this time, the price will inevitably drop, forming disorderly competition.
Why does Taobao not support the market? Because it is difficult to support markets, it is very difficult to unify standards and supply chains of goods. There is no authorization mechanism for a brand, and there is no invoice tracking link, resulting in uncontrollable flow of goods, and a lot of parallel imports, bad goods, and fake goods. Even consumers will make their own choices.
So, we can see what is really heading towards the top of the e-commerce pyramid? It is a traditional enterprise, which has a brand, a very sufficient supply of enterprises, and a very sufficient capital. From a platform perspective,
is an inevitable choice to abandon or not pay attention to this merchant group. The C2C market is a complement to the B2C market abroad.
C2C market originated from auction. The earliest model is the eBay model - individuals have idle goods or have moved, post these goods on eBay, let many people auction them at a low price, and finally form a transaction price, and then sell them. What is sold is not standardized products, but prices determined by demand and supply. A personal flea market or flea market is an individual-to-individual market. It is not a market that regulates transaction behavior, nor is it a large-traffic gathering market.When the
eBay model arrived in China, it turned out to be a deformed C2C market, which is based on pricing rather than auctions. In fact, prices are determined by demand and supply. At this time, strictly speaking, the pricing of a single product does not belong to the C2C market, but to the B2C market. At a flea market, it's a game between the two parties, but when you buy something in a store, you get what's on the sign.
In the development process of China's C2C market, it was always a choice between the flea market and the B2C market. It indeed played a very important role in the early e-commerce development from 2009 to 2011. But now, as consumers' e-commerce consumption habits have been cultivated, e-commerce is not only about price temptation, but also about convenience and speed. E-commerce returns to the essence of business, which is customer experience. Therefore, the era of disorderly price competition in e-commerce is gone forever. The development of the
C2C market may be more inclined to return to the early stages of e-commerce, such as flea markets or second-hand goods market models such as Ganji.com and 58.com. When it is necessary to provide customers with a continuous good customer experience in the form of a mall or store, rather than a one-time experience, then the B2C market must be an option.
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is a technology blog that focuses on discovering and reporting innovative companies in the TMT field. Its authors are located on both sides of the Pacific. They use the attitude of fishermen to quickly find the next big fish for readers.
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