Liu Qiangdong Intends To "Save The Wei And Save Zhao"?

Facing home appliances and 3C

Is the call of the publishing house meaningful?

Jingdong Dangdang is actually a deaf ear.

Last Wednesday, disputes between Jingdong mall and a number of publishers continued to escalate.

The dispute, which began at the end of last year, was being carried out under the heavy artillery bombardment of capital by Liu Qiangdong, heading towards a new direction: leveraging the distribution pattern of the book industry's interests.

"We never gave them books directly."

According to the joint statement of the twenty-four publishers, the sixty percent off Cap marketing strategy adopted by the Jingdong Mall for the book industry is not only authorized by them but also suspected of "unfair competition", which will not only hurt the interests of the publishers, but will also hurt the interests of consumers.

"Many people accuse Jingdong of damaging the book industry price order.

Actually, what we want to break is monopoly in book industry.

Liu Qiangdong responded that Jingdong mall will publish its book strategy in a week.

In fact, similar strategies have been adopted before, and have led to a huge industry paradox: the traditional channel abandons the publisher and chooses to purchase from the network channel, even buys the book that the network channel sells at a low price, and then returns the goods price to the publishing house through the traditional channel.

Although the final discount problem has been concerned by the relevant departments, it has ended up in the end.

For publishing houses, this joint statement makes little sense in addition to showing its position and showing to other channels.

Liu Qiangdong clearly knew this. Two days later, he announced the Jingdong's book strategy.

The book strategy is clearly prepared.

Jingdong seize the opportunity to disrupt the monopoly interest chain

Last Friday, Liu Qiangdong announced on his micro-blog that his book strategy was divided into four parts, including 3% of the direct subsidies for sales, the turnover of funds from the Library Department to 1 billion yuan, and the book period to half of Dangdang. In addition, there was a $1 million donation to the writers union and a secret investment and acquisition project.

From the perspective of the whole strategy, Liu Qiangdong not only wrote accounts for himself, but also restructured the distribution of interests in the whole industry. This is obviously not a decision that can be made in just two days, especially the direct subsidy to the author, which directly breaks the distribution pattern of the existing industry.

In the current book price fixing Bureau, the cost structure is as follows: the author accounts for about 7% to 15%, printing accounts for about 15%, plus the management cost of about 15% of the publisher. Before entering the channel, the total cost of the book is about 45% of the price. On this basis, plus 15% profit, the wholesale price of the access channel and distributor is 60%, that is forty percent off.

According to this, the sixty percent off sales of Jingdong mall have been below the cost price, disrupting the order of fair competition in the market and seriously damaging the interests of publishers and readers.

Liu Qiangdong explained that Jingdong did not want to disturb the order of the book market. "What we are really going to break is the cancer of the book industry."

"From the perspective of the whole industry, the profits of books are much higher than those of other markets."

One industry insider said that a few years ago, industry experts continued to attack that the domestic book market had basically become a monopoly: the books on the traditional bestseller list were monopolized by several publishing houses, and the new books were selling well, and the criteria were basically broken down.

"Our club has three or four books on the bestseller list, and the copyright that we took ten years ago depends on this main profit every year."

Those people said half jokingly.

Price reduction comes from self built logistics.

Enter the book industry upstream ambition

Liu Qiangdong's bombardment of the so-called "cancer" is obviously a deep consideration, and 3% of the sales volume is allocated to the author. For books, it is almost just a bad check, and many bestsellers are absent.

How does Liu Qiangdong cut the cancer in the book industry?

In his view, there are two points: one is to increase royalty revenue; the two is to improve the cash flow of publishers.

"More than 50% of Jingdong's book orders are bought by 3C and daily general merchandise. This part of the logistics cost is almost zero, so that it can save 6% of the cost of" Lao Li "(Dangdang net), which can be divided into 3% of the authors. Secondly, Jingdong's 13 years experience in inventory management in the 3C field can significantly increase the turnover rate of book inventory, thus reducing the account period.

Liu Qiangdong has obviously made up his mind. In order to win the author, he even donated 1 million yuan to the author's Rights Protection Union in his personal name. The goal of the alliance is mainly aimed at Baidu, whose boss Robin Li has just injected money into the Jingdong mall.

Although Liu Qiangdong still attributed the book strategy to the competition with Lao Li, it has obviously gone beyond the battle with Dangdang and excellent sales channels, and may intentionally enter the upstream industry.

Perhaps, as some industry insiders speculate, Liu Qiang's "major secret investment and acquisition project" is not unexpected. It may be in the book industry, or even privately owned booksellers, and take the opportunity to attract a number of popular writers.

Online 3C was attacked by Suning, Gome (micro-blog).

Is book promotion for expediency?

In some industry circles, the book industry is clearly not the ultimate goal of Liu Qiangdong.

Statistics show that Liu Qiangdong completed the strategic layout of 3C products in 2008, began to build a logistics distribution system in January 2009, announced the layout of the national logistics in March 2010, and then in November 2010, department stores, food and books on-line, and also added a sub website to sell clothing, and even launched a group buying business.

However, other businesses are not moving. In the past six months, Liu Qiangdong has remembered two things about Jingdong Mall: financing and book promotion.

This is, of course, related to Liu Qiangdong's move for half a year. Maybe this is the real intention of Liu Qiangdong.

At the end of last year, an industry personage once analyzed, Jingdong's book sales were very small, and the loss promotion was not too much loss, but for those who had been listed and the main source of profit was books, it was not the same thing, but why did Liu Qiang Dong suddenly attack Dangdang?

"This is actually Wei Wei to save Zhao, because its main business 3C has been attacked by Suning, Gome and other predators."

The survey shows that many consumers who like to compare prices have realized the disappearance of Jingdong's 3C price advantage. But for the rest of the consumers, the slogan of "book promotion" is undoubtedly an excellent concept replacement. Although it can not last for a long time, Liu Qiang East needs only to complete the concept of "the most perfect logistics service".

Because Jingdong's logistics is an independent company, eventually, even if all the strategies of Jingdong's business have failed, logistics is enough to ensure Liu Qiangdong's future. I'm afraid this is his final layout.