Assessment of JD mall and Taobao.com
Arisa 李佳佳 013411233
Abstract
In this paper I will assess the two groups presentation .They are JD and Taobao.com . Personally, the two group ‟s performance should scored „credit ‟ because they introduced the website both from the background of the website, business model, product strategy, price strategy aspects and proposed the problems of the enterprise‟s business model, which reflect actual problems of both enterprises. My work is to make some addition of their analysis .mainly on the profit model and business model. Because to achieve the strategy of the two companies (to maximize the trading volume and monopoly the e-business market in china), these two sub-strategy is essential while the two groups did not analysis them perfectly.
Values of my work
To evaluate the two e-business‟s business model and give my suggestions to improve the existing business model .then give personal proposal about the taobao.com‟s self logistic system and JD ‟s self payment platform. All of these can help readers understand the strategies of the taobao.com and JD mall comprehensively.
Summaries of the two groups’ presentations :
Firstly ,the two groups introduced the background of the two websites .they are the Chinese top Online retailers and established in china in around 2000,which are in 1998(JD) and 2003(taobao.com) respectively. At that time the internet just set up in china.
Taobao.com
Taobao.com founded by Alibaba company. It has created miracle in the Internet e-commerce enterprises. Its user groups tend to consumers, or a daily operation more by consumers to dominate the taobao.com. "Ali Wangwang", "Alipay" are the major power “weapon” of taobao.com. The most characteristic should be "Ali Wangwang" this instant messaging software, contact or message to the buyers and sellers are very convenient. In addition to "Alipay" for the buyer to provide payment guarantee. buyers in the purchase of more without any menace from the "rear". That is the beginning of the creation is regarded as the most successful domestic network investment projects, in addition to creatively launched the "pay treasure" products, will risk network transactions is reduced to a minimum, but also to carry out all-round
cooperation with ICBC, China Merchants Bank, improve the individual transactions online payment platform.
Apart from alipay and ali wangwang, the features of taobao.com are Free strategy, membership .
JD mall(360 buy Jingdong.com)
As the largest market of B2C 3C products (computer, communication and consumer electronics )online shopping China professional platform, 360buy JD mall in traffic, click through rate, sales and industry visibility and influence, all come first on the list in the domestic 3C online shopping platform.
The features of JD mall are including cheaper price , immediate sells channel, by cresting new consumption habit for promoting.
In conclusion taobao.com which is a platform to win, to rely on its huge ecological chain with the vertical B2C for the market. While JD mall is more fight in isolation. In the purchase of goods, inventory and delivery, customer service areas should bear the responsibility.
The above are the main content of the two website presented by the two groups. Personally both of them have done a good job .But maybe they can do some improvement in the following aspects .
Profit model
For taobao.com the main source of income or with advertising revenue. Besides, there is charging bail.
From taobao.com profit model point of view, Taobao.com through sharing taobao.com over 56000000 members, and high-quality goods, 7 days no reason to return service and shopping integral activities to attract high-end consumer network. At the same time, taobao.com to bring better safeguard to the business domain of business. But adding Taobao.com and the use of Taobao.com business services are required to pay a certain cost. First of all businesses to join Taobao.com business domain to the third party to pay a RMB 198 fee information confirmation, used to check the user's identity information. Secondly, according to the level of service and use the shop, pay different fees and deposit. The Taobao.com merchants are divided into three classes, each class to enjoy the service is different, pay service fees are different accordingly. Taobao.com shop will be in accordance with A, B, C margin of three shops, each charge different amount of deposit.
In addition to guarantee the profit model, taobao.com since 2007 July officially launched the online advertising business, will be the site of important Banner advertising and search results of the right advertising sales. The network advertisement service is the first profit model taobao.com officially announced, mainly refers to the development of network marketing channels, including the flagship store brand construction, agent recruitment methods, such as help advertisers to enhance the brand, to help customers to promote sales. In addition, taobao.com to advertisers introduced value-added service plan, including brand promotion, market research, consumer research, community activities, etc..
At a low price and even sacrifice margin way to get large-scale sales, thus obtains the profit. In addition, by manufacturers rebate and other subsidies to profit, this is JD mall profit model.
JD mall CEO Liu Dong Qiang thinks:” B2C is the essence of retail, B2C company is a channel”. It is mainly reflected in two aspects, one is supply chain effect, on the other hand is cost control: the supply chain efficiency refers to improve inventory and cash flow rate, which is the retail way. The second is the cost control. High margin does not have the significance to the retail sector.
JD mall seize two curves of supply chain efficiency and cost control, let JD mall has done: 1500 orders in IT system to digest every powerful; more than 30000 kinds of online sales of the product category, product price than the retail line cheap 10%- 20%; the rate of inventory turnover is 12 days, and the supplier spot the knot, Gome, Suning's inventory turnover is 47 days -60 days, accounts for a period of 112 days; cost rate than Gome, Suning 7%, wool interest rate remained at around 5%, to provide more value to the industry chain of suppliers, customers.
Evaluation of business model
The strengths of taobao.com business model
1. Continuous and stable growth of Taobao.com user. Taobao.com made a
commitment to the user, do not charge a fee for three years. This greatly reduces the user cost of shop, is a great temptation, which stimulated the Taobao.com user growth in a large extent, also actively collect the user's voice, a special user comments in forums, there are specialized personnel responsible for reply, firmly stabilized the user's heart.
2. Procurement, logistics cost to reduce the price advantage of rising. The current
local taobao.com, will all product collection in a body, the production of local goods as the main source of spring, so as to save the cost of logistics, the commodity selling price all manufacturers selling price.
3. Amoy own humanity and meet the actual needs of the user tools. In the drastic
competition environment, Amoy fixed net through the timely communication, between the buyers and sellers, the upstream and downstream enterprises to establish a good profit model. The client and the user's personal work closely together, greatly improve the efficiency of communication.
4. Taobao.com simplifies the supplier or the seller's work, shorten the transaction
time. The supplier or the seller only product release, and local city operators directly face-to-face transactions, to deliver the goods to the sub station operators, to receivables. Then the operators around the product to the wholesale and retail.
5. Taobao.com threw a perfect channel system. The effective integration of the
many on-line and off-line scattered resources, at the same time, to meet the consumer demand, given a more convenient option.
The weaknesses of taobao.com business model
The model Looks perfect, and is incomparable with other business model currently .Taobao.com also gradually try to solve the problem of e-commerce, logistics and distribution are fakes flooding is not immediate, cultivate a lot of dealers and
consumers Chinese Internet. the contribution is indelible, but the final channel, product not the platform can itself handle. If the policy changes and the e-business have the ability to build their own system of electric business platform, the channel of taobao.com will be lost. In this way, taobao.com should learn from the JD mall business model. of operation JD mall mainly has the following characteristics:
1. Insight into the market, accurate positioning
JD mall first entered the market by 3C as a starting point, the vertical B2C, both with the online shopping market requirements, but also to make itself relaxed to operate.
2. People-oriented and innovation
Many industry JD mall opened first, in essence, "people-oriented" concept, continue to provide consumers with personalized service, constantly enrich the customer experience, which continue to maintain customer relationship, which is in line with the requirements of the network era of competition in the market.
3. Use of the capital, the rapid expansion
At present, JD mall has in succession in the purchase of 1200 acres of land, to build logistics platform, will be able to support the hundreds of billion in sales. In addition, in 2010 JD mall customer service center will also be comprehensive expansion, call center agent will upgrade from the previous 150 to 400, at the same time in the domestic B2C enterprises took the lead in realizing the 7 x 24 hours service. In addition, including order consulting, customer service warranty, return service, customer service support will be all-around upgrade.
The weakness of JD mall
3G seeking high profits is very difficult, especially in the Internet today's low prices to win market circumstances, as if Gome, Suning stores on store brand may get some businesses and users, but the landed cost is too high, it is difficult to reach the goal. Site operating costs, and the self built logistics costs are too high.
Measures to improve the drawbacks
For taobao.com, it should strengthen the credit supervision by establishing the self logistics like JD. The majority merit is to control the whole trading process. Through the unified acceptance of orders and goods from sellers, Taobao.com logistics center can check the quality of goods, if it does not meet the conditions, they will return the goods. If it pass the test, it will be unified package and delivery.At the same time, to prevent the high cost of self-logistic like JD. Taobao.com ‟s self-logistic should set several branches in major cities. Here is the rendering .
At the same time ,JD should owns itself „s payment tools .in this way ,it can saves a lot of cost for its cooperation parties such as post stations and it can also improve the security of trading. Besides with its 3c products sold features, JD can develop the o2o business model in a large scale .that is consumers can browse the electronic goods on JD mall and make a reservation or order on it ,then JD gives the consumers a order number .with it buyer can buy it in the physical shops .if they are not satisfied with the real commodities ,they can ask for refund .
REFERENCES
[1]
[2] 杨阳. 淘宝网物流配送模式分析[J]. 商业经济,2011,23:33-34.
[3]
[4] http://www.cnki.com.cn/Article/CJFDTotal-SYJJ201316016.htm
[5]
Assessment of JD mall and Taobao.com
Arisa 李佳佳 013411233
Abstract
In this paper I will assess the two groups presentation .They are JD and Taobao.com . Personally, the two group ‟s performance should scored „credit ‟ because they introduced the website both from the background of the website, business model, product strategy, price strategy aspects and proposed the problems of the enterprise‟s business model, which reflect actual problems of both enterprises. My work is to make some addition of their analysis .mainly on the profit model and business model. Because to achieve the strategy of the two companies (to maximize the trading volume and monopoly the e-business market in china), these two sub-strategy is essential while the two groups did not analysis them perfectly.
Values of my work
To evaluate the two e-business‟s business model and give my suggestions to improve the existing business model .then give personal proposal about the taobao.com‟s self logistic system and JD ‟s self payment platform. All of these can help readers understand the strategies of the taobao.com and JD mall comprehensively.
Summaries of the two groups’ presentations :
Firstly ,the two groups introduced the background of the two websites .they are the Chinese top Online retailers and established in china in around 2000,which are in 1998(JD) and 2003(taobao.com) respectively. At that time the internet just set up in china.
Taobao.com
Taobao.com founded by Alibaba company. It has created miracle in the Internet e-commerce enterprises. Its user groups tend to consumers, or a daily operation more by consumers to dominate the taobao.com. "Ali Wangwang", "Alipay" are the major power “weapon” of taobao.com. The most characteristic should be "Ali Wangwang" this instant messaging software, contact or message to the buyers and sellers are very convenient. In addition to "Alipay" for the buyer to provide payment guarantee. buyers in the purchase of more without any menace from the "rear". That is the beginning of the creation is regarded as the most successful domestic network investment projects, in addition to creatively launched the "pay treasure" products, will risk network transactions is reduced to a minimum, but also to carry out all-round
cooperation with ICBC, China Merchants Bank, improve the individual transactions online payment platform.
Apart from alipay and ali wangwang, the features of taobao.com are Free strategy, membership .
JD mall(360 buy Jingdong.com)
As the largest market of B2C 3C products (computer, communication and consumer electronics )online shopping China professional platform, 360buy JD mall in traffic, click through rate, sales and industry visibility and influence, all come first on the list in the domestic 3C online shopping platform.
The features of JD mall are including cheaper price , immediate sells channel, by cresting new consumption habit for promoting.
In conclusion taobao.com which is a platform to win, to rely on its huge ecological chain with the vertical B2C for the market. While JD mall is more fight in isolation. In the purchase of goods, inventory and delivery, customer service areas should bear the responsibility.
The above are the main content of the two website presented by the two groups. Personally both of them have done a good job .But maybe they can do some improvement in the following aspects .
Profit model
For taobao.com the main source of income or with advertising revenue. Besides, there is charging bail.
From taobao.com profit model point of view, Taobao.com through sharing taobao.com over 56000000 members, and high-quality goods, 7 days no reason to return service and shopping integral activities to attract high-end consumer network. At the same time, taobao.com to bring better safeguard to the business domain of business. But adding Taobao.com and the use of Taobao.com business services are required to pay a certain cost. First of all businesses to join Taobao.com business domain to the third party to pay a RMB 198 fee information confirmation, used to check the user's identity information. Secondly, according to the level of service and use the shop, pay different fees and deposit. The Taobao.com merchants are divided into three classes, each class to enjoy the service is different, pay service fees are different accordingly. Taobao.com shop will be in accordance with A, B, C margin of three shops, each charge different amount of deposit.
In addition to guarantee the profit model, taobao.com since 2007 July officially launched the online advertising business, will be the site of important Banner advertising and search results of the right advertising sales. The network advertisement service is the first profit model taobao.com officially announced, mainly refers to the development of network marketing channels, including the flagship store brand construction, agent recruitment methods, such as help advertisers to enhance the brand, to help customers to promote sales. In addition, taobao.com to advertisers introduced value-added service plan, including brand promotion, market research, consumer research, community activities, etc..
At a low price and even sacrifice margin way to get large-scale sales, thus obtains the profit. In addition, by manufacturers rebate and other subsidies to profit, this is JD mall profit model.
JD mall CEO Liu Dong Qiang thinks:” B2C is the essence of retail, B2C company is a channel”. It is mainly reflected in two aspects, one is supply chain effect, on the other hand is cost control: the supply chain efficiency refers to improve inventory and cash flow rate, which is the retail way. The second is the cost control. High margin does not have the significance to the retail sector.
JD mall seize two curves of supply chain efficiency and cost control, let JD mall has done: 1500 orders in IT system to digest every powerful; more than 30000 kinds of online sales of the product category, product price than the retail line cheap 10%- 20%; the rate of inventory turnover is 12 days, and the supplier spot the knot, Gome, Suning's inventory turnover is 47 days -60 days, accounts for a period of 112 days; cost rate than Gome, Suning 7%, wool interest rate remained at around 5%, to provide more value to the industry chain of suppliers, customers.
Evaluation of business model
The strengths of taobao.com business model
1. Continuous and stable growth of Taobao.com user. Taobao.com made a
commitment to the user, do not charge a fee for three years. This greatly reduces the user cost of shop, is a great temptation, which stimulated the Taobao.com user growth in a large extent, also actively collect the user's voice, a special user comments in forums, there are specialized personnel responsible for reply, firmly stabilized the user's heart.
2. Procurement, logistics cost to reduce the price advantage of rising. The current
local taobao.com, will all product collection in a body, the production of local goods as the main source of spring, so as to save the cost of logistics, the commodity selling price all manufacturers selling price.
3. Amoy own humanity and meet the actual needs of the user tools. In the drastic
competition environment, Amoy fixed net through the timely communication, between the buyers and sellers, the upstream and downstream enterprises to establish a good profit model. The client and the user's personal work closely together, greatly improve the efficiency of communication.
4. Taobao.com simplifies the supplier or the seller's work, shorten the transaction
time. The supplier or the seller only product release, and local city operators directly face-to-face transactions, to deliver the goods to the sub station operators, to receivables. Then the operators around the product to the wholesale and retail.
5. Taobao.com threw a perfect channel system. The effective integration of the
many on-line and off-line scattered resources, at the same time, to meet the consumer demand, given a more convenient option.
The weaknesses of taobao.com business model
The model Looks perfect, and is incomparable with other business model currently .Taobao.com also gradually try to solve the problem of e-commerce, logistics and distribution are fakes flooding is not immediate, cultivate a lot of dealers and
consumers Chinese Internet. the contribution is indelible, but the final channel, product not the platform can itself handle. If the policy changes and the e-business have the ability to build their own system of electric business platform, the channel of taobao.com will be lost. In this way, taobao.com should learn from the JD mall business model. of operation JD mall mainly has the following characteristics:
1. Insight into the market, accurate positioning
JD mall first entered the market by 3C as a starting point, the vertical B2C, both with the online shopping market requirements, but also to make itself relaxed to operate.
2. People-oriented and innovation
Many industry JD mall opened first, in essence, "people-oriented" concept, continue to provide consumers with personalized service, constantly enrich the customer experience, which continue to maintain customer relationship, which is in line with the requirements of the network era of competition in the market.
3. Use of the capital, the rapid expansion
At present, JD mall has in succession in the purchase of 1200 acres of land, to build logistics platform, will be able to support the hundreds of billion in sales. In addition, in 2010 JD mall customer service center will also be comprehensive expansion, call center agent will upgrade from the previous 150 to 400, at the same time in the domestic B2C enterprises took the lead in realizing the 7 x 24 hours service. In addition, including order consulting, customer service warranty, return service, customer service support will be all-around upgrade.
The weakness of JD mall
3G seeking high profits is very difficult, especially in the Internet today's low prices to win market circumstances, as if Gome, Suning stores on store brand may get some businesses and users, but the landed cost is too high, it is difficult to reach the goal. Site operating costs, and the self built logistics costs are too high.
Measures to improve the drawbacks
For taobao.com, it should strengthen the credit supervision by establishing the self logistics like JD. The majority merit is to control the whole trading process. Through the unified acceptance of orders and goods from sellers, Taobao.com logistics center can check the quality of goods, if it does not meet the conditions, they will return the goods. If it pass the test, it will be unified package and delivery.At the same time, to prevent the high cost of self-logistic like JD. Taobao.com ‟s self-logistic should set several branches in major cities. Here is the rendering .
At the same time ,JD should owns itself „s payment tools .in this way ,it can saves a lot of cost for its cooperation parties such as post stations and it can also improve the security of trading. Besides with its 3c products sold features, JD can develop the o2o business model in a large scale .that is consumers can browse the electronic goods on JD mall and make a reservation or order on it ,then JD gives the consumers a order number .with it buyer can buy it in the physical shops .if they are not satisfied with the real commodities ,they can ask for refund .
REFERENCES
[1]
[2] 杨阳. 淘宝网物流配送模式分析[J]. 商业经济,2011,23:33-34.
[3]
[4] http://www.cnki.com.cn/Article/CJFDTotal-SYJJ201316016.htm
[5]