Dangdang is a loyal imitator and follower of Amazon; Yu Yu, her co-president, is a gentle returnee who speaks in both Chinese and English. She claims to be the best at learning and believes in the value of this quality. According to Patrick, the old shareholder of Dangdang, the chairman of IDG Company. According to J. McGovern, IDG, which is engaged in publishing, exhibition, market research and technology venture capital, first invested in a China database company that produces electronic catalogues, which include every book published in China.
A few years ago, Patrick visited this company and said, "Your products are really useful, but now there is an online book company called Amazon (Amazon.com) in the United States. The company not only provides a brief introduction to the contents of books and periodicals, but also directly operates the online book purchase business. " Half a year later, Patrick was surprised to find that this database company has been completely transformed into Dangdang Online Bookstore Company (DangDang.com). Seeing this, you can't help but admire the power of open access to investors, and you can't help but be surprised by Dangdang's keen adaptability and ability to seize opportunities.
In line with the spirit and will of "carrying the network to the end", Amazon began to expand its territory in Britain, Germany, Japan, France and other places outside its homeland to find new profit growth points. When Bezos aimed at China, he found it difficult to pass the pure Amazon model.
So, what better way to buy its loyal followers than Amazon? And for China. Com, starting with venture capital, increasing the operating value of capital and selling the company to make money is not only a good choice, but also a temptation.
Amazon online bookstore, founded in 1995, is a successful representative of global e-commerce. Readers can buy nearly 1.5 million English books, music and movies on Amazon. Starting from 1999, Amazon.com began to expand the product categories it sells. Now, in addition to books and audio-visual products, Amazon also sells more than 20 categories of goods such as clothing, gifts, children's toys and household appliances online. In 2003, Amazon's website sales are expected to reach 4 billion dollars. Among them, book sales can account for 8-9% of the total book retail sales in the United States.
1999 1 1 Dangdang went online, and Amazon was earlier than him. Amazon is the forerunner and Dangdang is his follower.
Over time, Dangdang has been constantly improving, and focusing on market segments is the cornerstone of development. Take Dangdang as an example, although it has occupied more than half of the online book retail market, the scope of goods currently operated by Dangdang is still slightly thin. Taking the book market as an example, Dangdang has relatively little involvement in teaching materials and supplementary categories, and there is still a lot of room for development. At the same time, Dangdang also has great advantages in the upcoming digital publishing business; On the other hand, vigorously enter the department store market. The market scale of household products, cosmetics and maternal and child products can reach more than one billion yuan, and the gross profit margin of these department stores is relatively high. However, in the days when he was still struggling with e-commerce when he sold books, Amazon launched an innovative and bold promotion strategy to provide customers with free delivery services and continuously lowered the threshold for free delivery services. So far, Amazon has adopted this promotion method three times. The thresholds for the first two free delivery services were $99 and $49 respectively. In August, 2002, Amazon reduced the threshold of free delivery by half, and began to implement free delivery service for customers whose total shopping price exceeded $25 to promote the growth of sales business. Free delivery has greatly stimulated people's enthusiasm for consumption, allowing netizens who are skeptical about e-commerce and worried about the high price of online shopping to quickly join the ranks of Amazon consumers, thus expanding Amazon's customer base to 40 million. This has produced huge economic benefits: in the third quarter of 2002, the sales of books, music and film and television products increased by 17% compared with the same period of last year. The promotion and influence of logistics on sales, "logistics is a tool for enterprise competition" has been best interpreted in Amazon's business practice.
Dangdang promises all goods "one fake and one penalty".
800 large and medium-sized cities in China can realize "cash on delivery"
800 large and medium-sized cities in China can realize "door-to-door return and exchange"
Automatic intelligent price comparison system ensures the lowest price of the goods sold.
In this regard,
When it is not as good as Amazon. Although Amazon operates a wide range of goods, it maintains a low return rate because of its proper selection, reasonable price and good quality, and its delivery service meets customers' needs. The return rate of traditional bookstores is generally 25%, up to 40%, while that of Amazon is only 0.25%, which is much lower than that of traditional retail bookstores. The extremely low return rate not only reduces the return cost of enterprises, but also maintains a high level of customer service and obtains a good business reputation.
Among the two commercial enterprises, Amazon is the pioneer of the market. He created the market, and Dangdang began to establish the market after him. Although Amazon is the overlord of online book sales, Dangdang is not bad. He also won many honors, both as a pioneer and a follower. Their development and success are obvious to all, but I personally think that followers in the market will have more room for growth.