E-commerce sinking heavily created township electrical stores, but they also took them to the era of the Ark.
Editor’s note: This article from the public micro-channel number “Alphabet” (ID: wujicaijing), author Tan Yuhan.
Dawu County is more than 100 kilometers away from Wuhan, and the hats of the national poverty-stricken counties have been worn for more than 30 years. Along the S304 road, it takes more than an hour to drive from the county town to Hekou Town.
At the intersection of the town center, there is a Jingdong home appliance store. Taking advantage of the location of the store door, there is a computer, the page that opens is the Jingdong homepage, consumers can check the price on the Internet.
The owner Liu Shengdong said that around 2015, customers began to use mobile phones to compare prices. When bargaining, you will say how much money is sold on Jingdong. Later, the store simply installed a computer to facilitate consumer inquiry.
The predecessor of this Jingdong home appliance store is “Hekou Gemei Electric” “, opened for more than 20 years, joined Jingdong in 2017 and changed its name. Liu Shengdong was an apprentice here and later became a boss.
Would you like to join Jingdong Appliance Store? This problem has plagued Liu Shengdong for two years.
2015 to 2016 is the most confused two years of Liu Shengdong.
National Bureau of Statistics data show that in 2015, the total retail sales of consumer goods reached 300.931 billion yuan, of which the national online retail sales amounted to 3.8773 billion yuan, accounting for just over 10%, but the growth rate reached 33.3%.
The analysis believes that the state has actively introduced a series of policies and regulations, which has greatly promoted the development of e-commerce. At the same time, with the growth of disposable income and logistics infrastructureWith further improvement in conditions, third- and fourth-tier cities will become the main growth drivers for e-commerce in the future.
In 2015, Liu Shengdong deeply realized the downsizing of e-commerce, “We have lost control of the price since then.”
Before 2015, the price of township appliances was firmly in the hands of the bosses: the information was opaque, the brand-name machine was rampant, and a TV can be sold for thousands of yuan. The early owner of Gemei Electric and the master of Liu Shengdong Peng Bo has accumulated thousands of net worth by two home appliance stores.
After 2015, the practice of home appliance business has changed.
Before 2015, the sales of miscellaneous appliances accounted for one-third of the sales of Gemei Electric, but after the e-commerce, consumers have a mind, as long as they add a small budget, they can think of themselves. Buying electrical appliances, the brand-name electrical appliances that cannot be found on the Internet are upgraded to large brands that can be checked for price, so they have purchased the latter.
The price of branded appliances on the Internet is very transparent. There is no room for price increases. It is even harder to sell them.
In the past, every year, the sales of various brands of electric appliances continued to run to Gemei Electric Store. Gradually, this group of people even lost their brand that they used to sell.
A set of data can support this phenomenon. From 2011 to 2012, in the refrigerator category, 80% of Jingdong’s sales came from 8 brands, but by March 2015, only Haier, Siemens, Midea, TCL were left. 5 brands of Meiling accounted for 80% of sales. The washing machine category is similar.
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After the Spring Festival of 2016, Xiao Xiaochao came to the store for the first time to give Liu Shengdong the opening advertisement of Jingdong Household Appliances Store. Liu Shengdong was still in conflict.
The e-commerce platform sinks actively and the urbanization process passively infiltrates e-commerce into the county towns and villages, but at that time it was limited by logistics conditions. For those who are located in towns and villages, online purchase of home appliances is still seen. See you, can’t touch, for example, in Dawu County, when the home appliances of Jingdong can’t be delivered to the county, let alone the townships, the home appliance business in the township market is still dominated by traditional bosses. It has been open for more than 20 years and has a group of loyal customers. Gemei Electric is naturally the beneficiary of this closed system.
But Jingdong helped change this situation. JD.com is responsible for the final journey of Jingdong Home Appliances in the county market. For example, the Dawu County home appliance will be transported from the Wuhan warehouse to the Jingdong Gang in Dawu County, and then sent to the county, township and village by Jingdong, and will be responsible for the installation and service. The sinking of logistics has made the residents of the county towns and villages have some new choices besides the township electrical stores.
Jingdong Gang of Dawu County was opened in May 2015 by Xiao Xiaochao. In the home appliance industry, he has been working hard for so many years, and he is the clearest among the profitable models of the dealers. Xiao Xiaochao slowly figured out a set of truths, “Jingdong help can break this huge profit model.”