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Dangdang continued loss of focus on vertical segmentation is the way to win

dangdang.com was once known as the Chinese Amazon, become the first batch of the successful listing of business enterprise, its success in the Internet business for many generations to follow suit, but the listed dangdang.com has become the development of the road turning, now many years of continuous losses has reached a total of 650 million dangdang.com the degree of loss, although dangdang.com CEO said in 2013 can dangdang.com turnaround, but this time window is obviously not expected, the final profit is only the senior leadership of wishful thinking, then what caused the continued loss of dangdang.com.

electricity supplier’s tragic competition caused by the book market is divided

in the past two years, sustainable development of electronic business has brought a lot of Jingdong, suning.com and the bright younger generation, and Bowser have become important giant Taobao rival dangdang.com, in addition to the book industry vertical business platform, these direct competitors are the cause of the attack on dangdang.com, although the book market reached 30 billion in 2012, but from the domestic and foreign business platform to nibble, dangdang.com and not much left, in this competitive context, dangdang.com want to maintain high profits, it is not possible, which is currently operating dangdang.com electronic books is one of the key factors appear difficult.

transformation of third party platform failure


encounters fierce competition for dangdang.com unconsciously into the melee, these rely on third party sales platform electricity supplier giant has a relatively price advantage, which makes dangdang.com clearly felt serious crisis, so dangdang.com began to transition to concentrate on the book dangdang.com also began to engage in a comprehensive business platform, such as the increase of clothing, cosmetics and other industries, seems to do so can effectively increase dangdang.com flow rate, can give dangdang.com to bring more sales, but with the construction of the third party platform, its maintenance costs and technology costs continue to rise, but the platform of the goods and the Jingdong and Tmall still has a big gap, which led to the current Dangdang marginalization of the most important reasons.

focus on vertical segmentation is the way out

actually dangdang.com CEO has been with the vertical segments of the operating strategy, in the implementation process also manifested this point, but unfortunately did not take this path, if dangdang.com as an independent sales volume, so its credibility and loyalty will rise sharply, because of the current third our business platform itself also has many shortcomings, especially there are many problems on the management of third party, even with a commodity, in an independent sales platform to purchase the trust is clearly higher, this is also a lot of consumer spending on the Internet, the price does not necessarily play a leading the role of credibility and loyalty is the key.

so the transformation of dangdang.com is really a failure, if continued to force in the book market, attention to fine "


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