E-commerce in how to drive to transform and upgrade traditional industries

IDC released in Beijing “e-commerce driven transform and upgrade traditional industries”, the report (hereinafter referred to as the IDC report) according to the report, as the deterioration of the traditional industry overcapacity problem, and the growth of the consumer personalized demands, demand driven (C2B) industry development pattern will become an important direction of transformation and upgrading of traditional industries in the future.

it is clear that China’s online retail has become an important social phenomenon reflect the trend of the economy. IDC report data show that in 2013 China’s online retail market size of 1.85 trillion, more than the United States as the world’s largest online retail market. It predicts that by 2020 China’s online retail market size is expected to reach 5.5 trillion yuan.

look from using the network of population age structure, in 2013, the Internet coverage of nearly 32% in 90 after the crowd, is expected to more than 40% in 2014. From 2003 to 2013, 10 years, 20 to 40 years old of mainstream consumer crowd the Internet penetration rate rising, the proportion in the next decade will also increase. IDC believes that with the coming 90 and 00 after the Internet “indigenous” gradually become consumers such as the core, e-commerce industry brought by the change trend will be more potential unstoppable.

consumer groups the age structure of migration is not the only reason why consumption idea change. IDC believes that with the improvement of the people material life level, consumers are not satisfied with the previous single simple standardised products, for personalization and experiential consumption demands. And the emergence of electronic commerce, not only let the consumer get more bargaining power, also meet the demand of the long tail or personalized consumers to buy. Electronic commerce rapid development, at the same time, China mobile handheld mobile phone or any mobile terminal by each user, can be traced to each customer, make the development of mobile e-commerce market is not simply from the PC to the mobile side migration, but with individual consumers as the center, to provide a more personalized products and services.

IDC report points out that because of that, the electronic commerce can use the power of the consumer, impact the traditional industry the existing business logic and enterprise operation mode. The growth in consumer side, bound to lead to demand drive (C2B) become the future direction of the industry.

the so-called C2B refers to flexible production, personalized marketing and socialization of new supply chain business model. In now, some to adapt to the faster, more know the use of e-commerce enterprises, has already begun with the characteristics of Internet interaction, realized the innovation of the product and business. In clothing, furniture, agricultural products industry has appeared some try water C2B customization enterprise. Such as women’s clothing brand aqua, furniture company is home delivery, etc.

in the next decade, the consumer is king

if, 10 years ago, but also in cultivating consumers get into the habit of shopping on the Internet, so in 10 years, consumers are likely to become leading consumption and fashion trends, the pushing supply chain change. Five years ago, have to do is to have the goods online electricity sales, the Internet as a sales channel, then five years later, the aggregate consumer demand of electricity, may well become a business model and promote the main power in the upstream industry transformation and upgrading.

the IDC report argues that, as the market gradually mature, if just sell goods have shown on the Internet is the key to the enterprise competitive advantage. In the new stage, if you still stay in the electricity as sales channels, in the future competition will feel very difficult.

IDC report stressed that the current ongoing industrial revolution, its essence is a consumer as the center of the traditional industry reconstruction, this trend will become increasingly obvious with the further development of the mobile Internet. And e-commerce brought about by the industrial revolution is essentially a consumer use of the Internet technology process of maximizing its own spending power. During this period of industry is bound to be relevant parties to bring the “pain” in the process of transformation.

IDC report suggests that for traditional industry enterprises, should be fully aware of the industrial revolution eventually power from consumers, so the transformation and upgrading of industry can also at the consumer level under more kung fu. Such as integration of O2O channels, strengthen the management of customer services; Let buyers to participate in product design and transformation, gather the long tail needs, create a niche market and C2B custom; Create a personal brand, to carry out the new way of marketing, and so on.

in addition, as the Internet, cloud computing, emerging technology industry such as large data, the influence of the traditional industry definition and increasingly blurred boundaries, cross-border development and industrial convergence is more common. So IDC believes that the current thinking of Chinese traditional industry transformation and upgrading, we should improve the quality of economic growth, from the enterprise microscopic perspective to guide the push them go the way of transformation.