The next breakthrough in the Internet Nuggets B2B market, the new "Blue Ocean

      

In recent years, under the background of the rapid development of e-commerce in China, verticalization and segmentation have gradually become the development trend of the industry. The development of the Internet in the next three years is the beginning of the B2B innovation war, the focus of services, product standardization, and the industrial chain. Efficient integration has won the key “development” for the verticalization of e-commerce. Internet companies all hope to seize this slogan and allow them to achieve outstanding results in the market.

Wu Fang at the 2017 China (Guangdong) "Internet + China Zhi Zhi" Summit Forum
Keynote speech

The new pattern of B2B e-commerce in the next three years

Unlike the operation mode of consumer goods and e-commerce, which has become the “Red Sea” trend, the mode of operation of e-commerce related to industrial products is still “blue sea” in China and has not yet been broken. Traditional enterprises are full of expectations for the industrial Internet. They believe that the "Internet +" action plan can promote the restructuring of China's economy. However, traditional enterprises have great difficulties in internetization. Traditional enterprises' thinking about “Internet+” must first be viewed from two perspectives: First, whether it should respond to the call to reshape enterprises and use “Internet +” to transform and upgrade, but This will waste a lot of manpower, material resources and financial resources. If it is not done, it will embark on a path of no return. Second, we can push down traditional industries and use Internet thinking to do it again. Subversion has created a new business model.

Traditional enterprises should be transformed on the spot or pushed back? Ms Wu Fang, COO of the South China City Network, mentioned in the 2017 China (Guangdong) “Internet + China Zhi Zhi” Summit Forum keynote: “The current B2C has been the situation for the Red Sea, but In the B2B field, especially in the traditional industries, we did not think we should push back. We hope to embrace the Internet, embrace the traditional manufacturing enterprises that can cooperate, and go to the middle of the market to push the market to a more technological and high-speed development pattern. According to Ms. Wu Fang, “Internet+” is not a simple Internet enterprise to transform traditional enterprises, but a systematic project. Traditional enterprises should learn the Internet’s technical tools and methodologies, instead of pushing back, and there will be More traditional businesses need to really embrace Internet thinking to improve existing operational efficiencies. The "Internet +" resistance is not small, but it also shows that the traditional industry can not be subversive, and finally the integration of the Internet and traditional industries will inevitably occur.

Industrial Internet is an economic behavior among enterprises. It involves many links such as contracts, finances, and warehouses. The transaction process between enterprises is long. Compared with B2C, it requires a process of cultivation and improvement. High product prices, low visibility, long time consumption, asymmetric supplier information, high labor costs, and lack of procurement financial control have always been the “heart disease” of traditional enterprises. “We need to integrate resources. Fast, quasi-, er, and provincial methods are used to accelerate the rapid establishment and management of the supply chain so that more companies can benefit from it.” Ms. Wu Fang, South China City Network, believes that in this Internet revolution, supply chain resource integration The B2B e-commerce model has emerged as a result of this shareholder's ethos. It has solved the industry pain points for many traditional enterprises “quick, accurate, and ambiguous” and opened the door to new developments.

Do you own or platform?

In each attempt to seize the market opportunities, the choice of operating mode has also become the focus of B2B e-commerce business practice and exploration. Today is nothing more than two kinds of gameplay, is to simply do their own platform, or to engage in self-employment? This topic has been discussed in the B2C field a lot, the platform is like Ma Yun Ali-style: infinite variety of products on the platform, users are free to choose, however, Since the products are not controlled by the platform, the quality will be uneven; self-operated such as Liu Qiang Tokyo East: the products in the mall are within the control range, personally purchase, personal delivery, self-built customer service, can provide a The product experience of the station purchase, however, because the mall needs to select a third party partner, the category may not be infinitely rich.

(South China City Coo Wu Fang)

"Being self-employed does not mean that traders, and not being a platform to earn commissions on profitable ways, must look at the positioning of companies in the process of e-commerce development in the selection of models." Ms. Wu Fang said that South China City Network Platform and self- Camp two routes, in the hardware self-operated mall this section, product quality is within the control of the area, but also based on the mall "brand, quality, service" business philosophy, South China City Network attaches greater importance to brand value, which is conducive to increase the viscosity of the industry This is the benefit of doing self-employment. When the self-operated model develops to a certain extent, it needs to be more open, allowing more outstanding and e-commerce-conscious enterprises to be added to operate independently, to process and integrate data, and to form an intelligent management platform. The advantages of the model are most directly reflected in the matching and digestion of traffic. In the view of Ms. Wu Fang of South China City Network, “doing self-employment or platform” is a false proposition. Regardless of the mode, suitable is the most important.

To understand why scale!

After the operation model is well positioned, the next step for companies to consider is the industry scale. Internet technology companies have been rapidly expanding after pinpointing market pain points. The Shanghai e-commerce platform for commodity e-commerce has already been listed. MK Industrial Supplies supermarket Zhenkun Line has completed a round of financing with RMB 360 million in rounds of financing, which was started with a matching transaction. Stencil is also just around the corner seeking better capital.

Ms. Wu Fang of South China City Network stated that in the early stage of the market, investors are looking at the rapid expansion of the company's products and the rapid expansion of the market. The development of the market so far, the scale is only a virtual statement, investors prefer the highlights The characteristic enterprise or innovative operation mode can be technology, can be a product, or can be an innovative concept. “Scale is not an absolute value.” Ms. Wu Fang believes that scale is important, but the efficiency and profit model is the Internet company. The foundation for survival. Compared to the rush to scale, Internet companies should first focus on improving the user experience and viscosity, through data mining and analysis, to develop accurate product strategies and marketing strategies to improve the efficiency of e-commerce platform.

Supply chain integration B2B e-commerce development trend

The vigorous development of the Internet economy and the continuous deepening of supply-side reforms have given e-commerce companies more opportunities for development. Supply chain integration and optimization have become an inevitable trend for the development of B2B e-commerce in the future. Currently, there are some B2B e-commerce platforms in China that have evolved from the trading platform stage to in-depth services. In response to specific B-class customer needs, they have been cultivating their industries through market segments, focusing on the advantages of their respective categories and providing specialized and refined products and services. “The Internet + is activated with innovative thinking, and there is boundless possibility in the future of the Internet.” Ms. Wu Fang said that the innovative B2B e-commerce one-stop shopping platform represented by the South China City Hardware Mall will lead the industry in rapid and healthy development. Resource integration, structural adjustment and upgrading continue to advance, and transformation, upgrading and innovation drive new vitality for the sustainable development of the industry.

“South China City Network relies on the B2B one-stop innovation model established in the rich physical market under the China South City Line to integrate the nation’s hardware industry resources and rely on the nationwide warehousing and logistics distribution to reach a healthy ecosystem for the entire industry chain e-commerce operation.” Ms. Wu Fang introduced Today, B2B is not just a solution to information asymmetry, from sales management to customer service, to supply-side production supply chain reform. This is a set of solutions for companies to increase efficiency, reconfigure resources, and reduce costs. A business model is more like an ecosystem and can better serve the partners in various industry segments.

Based on the technology dividends brought by the cloud, mobile Internet, and big data, and continuously creating favorable conditions for B2B enterprise-class service platforms, it is leading the Chinese Internet startup companies into the best golden age. Who can seize this blue market gold market? Today is just the beginning; tomorrow, full of possibilities!