In September, China’s e-commerce market was still very competitive, but the situation has changed.
Dangdang, which announced the transformation of all categories and launched category subsidies, quietly stopped its aggressive steps, reduced the scale of competition, and began to further consolidate the market for its main business.
Seeing this situation, Amazon, which is similarly positioned, also slowed down its efforts slightly and focused more on integrating the acquired Joyo. At the same time, the Huaxia team submitted an application to the headquarters to expand warehousing, but has yet to receive a response.
The competition between these two B2C companies has not stopped, but has only slowed down. The competition between eBay and Taobao, the other two C2C companies, has become increasingly fierce.
eBay's market capitalization is 4 times that of Amazon, and after experiencing the failure of the Japanese market, they pay more attention to the Chinese market. Sometimes there are personal inquiries from President Whitman, who has been keeping an eye on Taobao's trends to carry out targeted attacks.
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However, eBay has also shown its stubborn side as an international giant, claiming that it will not open a store for free like Taobao, but will invest more resources to help the stores on its own platform promote and make profits.
"Zhou Xin, what do you think? Who do you think will win between eBay and Taobao?"
On September 6, Fang Zhuo completed the matter from TSMC’s Mr. Hu, pointed out a clear path to the Luzhou industrial chain, and invested some of the funds that Yike Investment originally planned to use for Dangdang financing in the company he was about to start.
IC design company.
This part of the capital is divided into two parts. The initial investment is 10 million US dollars, and the later stage promises to negotiate with other venture capital for three times the investment amount.
Although Fang Zhuo has a good relationship with venture capital firms such as IDG and Capital Today, he cannot force them to invest in a project with an uncertain future. If Hu Zhengda can really show some ability and improvement, then he can lead more resources.
Hu Zhengda had no objection to this. He was confirmed to have invested US$10 million within five minutes of the conversation. This was a far cry from the dry-tongued talks in Pengcheng. What else could he not be grateful for?
When he left Shanghai, he wanted to go to Luzhou first to determine some investment policies. He also met his brother Hu Zhengming by the way and planned to talk about the future development of the mainland's IC industry and the significance of ice cores.
It was only after Hu Zhengda met with Mr. Fang that he learned that Bingxin had obtained permission for equipment procurement and technology introduction, and had crossed a hard threshold.
As the vice president of marketing at TSMC, he certainly knows that this is not easy. There are only two companies in the mainland, SMIC and Bingxin.
Looking at it this way, Mr. Fang really has the means, and the prospect of ice core is indeed worth looking forward to.
As the saying goes, if you give a peach, you will get a plum in return.
Hu Zhengda understood Mr. Fang's investment in him, so he naturally wanted to talk to his brother about his family's shortcomings and life dreams.
Fang Zhuo was very pleased with this. After dealing with Yike's affairs for a day, he called Zhou Xin, who had just returned from a business trip in Yangcheng, to Hang Lung 23.
As of today, the business of the medical department is divided into three major parts, the profitable medical system information construction, the flat online sales of medicines, and the loss-making online appointment registration. But in general, the medical department can be responsible for its own profits and losses, with a slightly small profit.
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Zhou Xin knew what Mr. Fang meant before he came and knew that he was considering the development of medical vertical e-commerce.
Now when I heard about the competition between eBay and Taobao, I couldn't help but laugh and said: "Brother Fang, didn't you already say at the West Lake that eBay would be the biggest giant to fall in the country, and Taobao would definitely win."
"I said it was me, what about your own thoughts?" Fang Zhuo asked.
"I also think Taobao wins. eBay has obtained exclusive advertisements from many big websites, and also spent a lot of money on TV advertisements. It looks like it doesn't spare any expense." Zhou Xin thought for a while, "Taobao, its publicity is really bad.
The down-to-earth atmosphere, streets and alleys, various small websites, and Internet cafes, well, it feels a bit like a rural area surrounding a city."
Zhou Xin continued: "Moreover, it is not free to open a store on eBay, which will probably have a big impact."
He paused and finally said: "But it won't be easy for Taobao to win. I heard that eBay and eBay are connected. The number of registered users has almost exceeded 10 million. Last year's statistics were that eBay's market share was 72%.
Even though Taobao is very dynamic this year, it can’t be more than 60%.”
Fang Zhuo glanced at the president of the medical department and shook his head slightly: "Last year, eBay's was 72%. It also spends heavily on publicity and store support, so how can Taobao win?"
Zhou Xin smiled and said: "Taobao has also raised funds, and it has a lot of money."
"Money is the most basic aspect." Fang Zhuo changed the topic here, "I am considering entering the B2C e-commerce industry. What role do you think medicine should play in this?"
Zhou Xin's eyes lit up and he said seriously: "Brother Fang, although our medical department is not very impressive, the foundation is still good. I was thinking of waiting for you to come back from Dangdang to talk to you, but I didn't think that Dangdang.com would give me the money directly.
Refused."
"Dangdang is better than Medical, both in terms of unit price and transaction volume, but we have an online sales license for medicine, which is unique. We use Medical as the main body to do B2C and expand into all categories. This year, it will not be possible until next year.
It may not be possible to gain momentum in the second half of the year.”
This is the answer to "taking medical vertical pharmaceutical e-commerce as the main body to transform all categories of e-commerce."
However, the more straightforward he is, the clearer Fang Zhuo's thinking becomes.
He returned to talking about Taobao and eBay: "eBay said it would provide support to stores and resources to stores. They took their fees for granted because they provided services that exceeded the cost."
"But the focus of Taobao's competition is not this. It is not to snatch their stores from eBay and snatch their high-quality store owners."
Zhou Xin was slightly startled, and suddenly understood what the boss meant.
Fang Zhuo pointed out: "Taobao's competitive strategy is to increase sales. They are digging more shop owners to open stores on their platform, rather than poaching eBay. This is the reason why Taobao is so vibrant now. They are gradually increasing sales.
It can be made according to the volume market.”
"eBay's focus is on the existing market, and they also welcome new customers, but their focus is on fear that Taobao will steal their own people."
"Taobao's free store opening attracts newcomers, people who want to do e-commerce but are hesitant when looking at eBay and Taobao."
"For example, I just want to give it a try. Of course I choose Taobao. If I succeed, I will be fine. If I don't, forget it."
"This momentum is gradually gaining momentum, and small and medium-sized eBay stores will also be attracted."
Fang Zhuo has a judgment on the current situation: "I suspect that Taobao's current market share may have surpassed eBay's, and the transaction volume in September may also exceed eBay's full-year data last year. This year's e-commerce market has a huge
Explosion."
Zhou Xin was a little unbelievable: "Will it be so fast?"
"Well, it's just that fast. In addition, eBay is indeed a bit difficult to use. I've been following it these past few days and asked about it. Their backend store management system is not smooth and the experience is not very good." Fang Zhuo said, "This is even better.
It is the threshold for incremental entry, and Taobao is relatively simple.”
Zhou Xin silently estimated that if according to what Brother Fang said, Taobao may increase by more than 10 times this year compared to last year, which would be too scary.
This chapter has been completed!