How much time does it take to make a decent B2C

Mr. Liu Qiangdong, President of

Jingdong on the blog last week mall a new article on E-commerce mall "Jingdong Liu five — real burn king" caused no small controversy. The key point of the dispute is to make a decent B2C, need not 10 years 1 billion. In fact, Mr. Liu Qiangdong also stressed in the article, he refers to decent refers to annual sales of 20 billion, net profit of 500 million B2C. This "decent" refers to the entire commodity on the downstream value chain, to affect the entire online shopping market of the industrial chain, the starting point and only want to make a profitable small B2C; expected value; time; problem; resources; return; the value of anti risk ability is completely different. How much time does it take to be "decent" depends on the industry environment and market maturity.

first we look at China’s online shopping market development process and the status quo at least 5 years in china. We take AMAZON as the example, from 1995 to 1999 of 5 years, the market cost is the highest of its operating costs, the percentage of sales in 10% – 40%, because at this stage the market is not mature, to spend a lot of money to the education market, education of users, this time AMAZON is an MKT company (this is also the AMAZON sales growth of more than 100% 5 years). This stage of the whole B2C industry concentration in the initial stage, everyone in the capital market under the support of the fight to fight to promote burn, occupy the market share. Experienced a major reshuffle in the Nasdaq stock market bubble in 2000, a large number of B2C bankruptcy. B2C industry concentration from the initial stage of the transition to the expanding period, we also spell promotion to fight internal strength, competition is the ability of the supply chain. AMAZON since 2000, the cost of logistics and technology to replace the market costs become the largest logistics operating costs, sales in the proportion of 9% – 15%, in the proportion of sales in 5% – 10%, this time AMAZON is a logistics company / technology. Now the United States B2C industry concentration has entered a mature stage, TOP500 B2C occupy a market share of 70%, from NO.1 AMAZON ($20 billion / year) to NO.500 MUSICNOTES ($10 million / year) AMAZON family occupy the entire market 11%. (in the United States except TOP500 was defined as no influence on industry of small and medium-sized enterprises, have no statistical significance at AMAZON) is an IT service company, the electronic commerce experience / own technical / logistics / user output to the tens of thousands of small and medium-sized retail enterprises. From zero to annual sales of $20 billion, net profit of nearly $700 million, AMAZON spent 15 years, nearly $2 billion in investment. AMAZON finally airness, while others may not be so lucky, for example, BUY.COM established in 1997, successfully listed in 2000, due to poor financial performance in 2001 to withdraw from the market, "