Mass electricity supplier era has come to the retail industry will give way to creative electricity

Beijing on November 20th news, Vc firm Andreessen Horowitz (A16Z) partner Geoff Jordan (Jeff Jordan) recently on its official blog published some insights into their mode of operation of the emerging e-commerce company. The main contents are as follows:

 

a16z we are very optimistic about the prospects of e-commerce, we believe that the industry is about to accelerate the development of.

is partly due to the competitive market dynamics. I had previously published blog, compared to e-commerce participants than competitors entity has a huge advantage in cost, especially can effectively control the real estate and labor costs, so compared with the entity retail commodity prices have obvious advantages. The network is increasing investment in the majority of specific industries, in order to accelerate the pace of erosion of the physical retail share, and reduce the living space of the physical retail industry. The impact of fluctuations in sales in the real retail industry is very large, and its income statement (P& L) is difficult to bear the pressure of contraction of water. This also resulted in the physical retailers in e-commerce forced, easy to cause the scale of operation is shrinking or facing bankruptcy. We believe that this situation will intensify, more and more physical stores will have to withdraw from the market due to the rise of e-commerce.

Another reason for

is that e-commerce is constantly innovating. At a16z, we often refer to the early stage of e-commerce as "e-commerce 1" or "nerds for" (e-commerce). Consumers usually enter keywords in this type of e-commerce site, and the site will display the goods that match the consumer’s requirements. This era due to the leadership of the two e-commerce giants and ended.

now, we can see the great innovation of e-commerce sites, so we call it "e-commerce 2" or "else for" (e-commerce everyone). Creative entrepreneurs to open up a completely different business model for the development of e-commerce, which also brings huge returns for the development of the company. Here are some examples:

direct procurement (Direct Sourcing)

E-commerce 1 that almost all retailers are selling other products. Today, more and more e-commerce companies directly design and procurement of products. Through direct contact with the manufacturers, cut off all kinds of middlemen, they often can create a simple and efficient supply chain. In this regard, we appreciate the most e-commerce company is the electricity supplier Warby glasses Parker. Warby Parker bypass the old industrial supply chain, to provide consumers with high-quality, stylish glasses. And these

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