news June 12th, Alibaba’s chief executive, said Ma, in order to strengthen the domestic online shopping consumer groups gathered and improve the sales network, the most self mutilation strategy cannot but out of pocket for the seller to provide profit space.
although Alibaba has become the leader in the electricity supplier industry, accounting for 37% of the electricity supplier market share of B2C. In the electric business price war between the electricity supplier alone if rife, enterprises and enterprises consultation, will break the market price system. Businesses for the sustainable development of nature will be retained, profit space has almost reached the critical line. If the price is too low, then the manufacturers will be difficult to profit from product sales, but now the electricity supplier is not mature business model, a public electricity supplier has been difficult to jump out of this self destructive cycle. In the near future I also write an analysis of this situation, if you are interested in the search for the electricity supplier continued price war is to go on the road of self destruction in china.
and MA in June 12th issued a statement, the central idea and I analyzed last week, "electricity" in the argument is basically the same. Now the electricity business has been unable to fall into the vicious circle of price war, in the final analysis is the core technology behind the domestic electricity supplier model, domestic resources, overcapacity. Many enterprises take the price war means to gain market share only, but through this way to get customers adhesion is very low, when other cheaper businesses will not hesitate to lower priced businesses.
so the reform pattern of the electricity supplier is to maintain the sustained as pressing danger, if the price war pace, I believe that in the near future, the electricity supplier will usher in a similar predicament with "Chinese manufacturing" experience before. In fact, the country is not only a cottage mode, the mission network in 6 years ago, the world’s first O2O electricity supplier model, is a completely innovative model, there is no cottage any foreign ideas. And through a long time baptism, O2O model has become a mature electricity supplier model, but also more and more attention to the market, and even will develop into one of the most important mode of electricity supplier in the future.
also, as RedTech’s Karen Denis says. Taobao’s talent shows itself in many electricity providers, but also on the no inventory management in the operation time can almost ignore the inventory cost completely, which also agree without prior without previous consultation with the O2O model.
finally, if we stand today, looking forward to the future development of the electricity supplier, in fact, has been very clear. Although it is impossible to fully define the name of this e-commerce model, it can not be a good interpretation of the language. But from the perspective of consumers we expect in the future, and I believe you also have the same vision: the future vision retail stores will gradually fade, experience stores and warehouse stores will extract the commodity market. Before we go shopping, we will be able to know the relevant information on the Internet through a variety of network devices, and then through a global integrated shopping