Jingdong Liu Qiang Mall East: the king of e-commerce company is burning money –

In China, there is no 10 years, 10 a 100 million capital investment, Shui Yebie wanted a decent

Electronic Business company. 3 years ago, when I see the article published in major media, have claimed that the video site is big burn, burn machines and the like report, we are powerless and Lengran I smile. If they know there is also a name in the Internet e-commerce sub-sector, then they will not burn How to say how the video company. You could say: in e-commerce companies before their burn rate and amount pales.

E-commerce is not only destined to burn up the Internet industry, but also the longest development cycle. Of course, the department referred to in the main e-commerce refers to their own decisions based e-commerce companies such as Jingdong Mall, Amazon, etc., do not include platform-based e-commerce, such as eBay, Taobao, etc.. I have one of the most conservative point of view is: want to get a successful e-commerce company, at least 10 years, at least 10 million of cash burn. Please note that I said is the most conservative point of view. That is, most e-commerce company, if you want to succeed, the actual time needed will be well over 10 years, capital investment will be much higher than the 10 billion.

A longer period of time In short: a complete supply chain, from design, development, raw materials supply management, production, promotion,

Sell , Payment, distribution, and finally to end consumers, independent management-based e-commerce companies bear almost the entire supply chain in more than half of links: from the manufacturer's production line started off the assembly line has to reach the consumers, all sectors are involved . Resulting in all their own decisions based e-commerce companies can not bypass the threshold: large and complex information systems development (including UI / UE, BI, order systems, mining marketing system, storage system, distribution system, financial system, payment system , call center systems, CRM systems, after sale

Service System, etc., the development of these systems is not five years is simply not established) and

Advertisement , Purchasing, sales, inventory management, distribution, payment, service, and many other areas, without exception, these links need to be able to accumulate a lot of time to coordinate and improve gradually.

Supply chain management is a very long learning curve capacity is a typical J-curve. This J-curve over the hook, not 10 years of knowledge accumulation is almost impossible.

2, burn more According to the above description, we can basically figure out, only that an information system development, not 2 to 3 million is not make the past; the market cost of the most conservative method: Each year 50 million, 10 years also need 5 million; and the construction of large-scale logistics centers, it is the huge cost required. According to current estimates Jingdong Mall, a 10 million square meters of large-scale logistics center, including land, buildings, bank facilities and other ancillary facilities, at least spend 6 billion. China's vast territory, not four large-scale logistics centers, is difficult to cover the national market, which means the Treasury will need to cost a total of only 2.4 billion. Count two types of Treasury and distribution stations, not 30 billion, not simply build up a nationwide logistics system.

In addition, all financial costs such as taxes and various administrative expenses: such as the cost of human resources, etc. are also to 100 million each for the unit. Such a huge expenditure, even if a good margin, no more than 10 million of external funding in support of an absolutely impossible task.

In China, not 10 years, 10 million of capital investment, Shui Yebie wanted a decent (meaning a decent article is more than 20 billion annual sales, net profit of 500 million or more, which is compared line retail derived from the size of business) e-commerce company. We hurried drawings retained, Lao Liu anyone would dare bet.

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