However, Xiaomi has a firm stance on the road of “selection”. Compared with the “rural encircling the city”, Xiaomi has products in mature online shopping users, which strives for higher unit price and higher consumption level. Quality users.
It is worth noting that Xiaomi has become the platform of choice for some smart hardware manufacturers to release new products. According to the introduction of Xiaomi’s products, some new products have obtained good market feedback on the platform, and the corresponding manufacturers have successfully obtained financing. Among the many players in the field of boutique e-commerce, the differentiated competition point of Xiaomi has been highlighted.
But Netease’s carefully selected growth path tells you that the boutique e-commerce platform is not so good, and the cross-border e-commerce platform is also experiencing the integration process of big fish eating small fish. In this case, how much opportunity does Xiaomi have to expand the whole category? Can its differentiated competition points help the goods go further?
– 1 –Before Ding Lei “re-creating a Netease”, there will be a billion-dollar e-commerce dream of Lei Jun
Even if there is no e-commerce gene, it does not affect NetEase and Xiaomi.
When NetEase first bet on the e-commerce business, it did experience a period of rapid growth. Before 2014, Netease’s main sources of revenue were: games, advertising, and innovative businesses. The game’s total revenue was as high as 90%. In 2015, Netease officially launched the cross-border e-commerce platform NetEase Koala. Since then, Netease’s e-commerce segment’s revenue has started to grow rapidly.
In the financial report, the proportion of innovative business including e-commerce in Netease’s total revenue increased from 9% in 2014 to 37% in 2018, and the proportion of game revenue was further compressed. 60%. NetEase e-commerce has become the second largest growth engine after the game.
At the same time, according to data released by Ai Media Consulting, NetEase Koala has occupied the first place in the cross-border e-commerce market for three consecutive years since 2016. In the first quarter of 2019, NetEase Koala ranked first in cross-border e-commerce with a market share of 27.5%.
However, behind the growth, there is a slowdown in the growth rate of NetEase’s e-commerce revenue, and dragged down the overall profit of NetEase.
Netease’s strict selection was launched in April 2016. By 2017, Ding Lei was very optimistic about the development of NetEase’s strict selection, and said that Netease’s GMV targets in 2017 and 2018 were 7 billion and 20 billion respectively. But by the end of 2018, not only the 20 billion small targets were not realized.