after the announced late last year round C $60 million in financing, domestic imports from bud electric business platform honey baby announced to peer opens the first round of price war, will be held on March 16 solstice 18 first import diapers section, and says it will launch “500 million stock + 100 million yuan subsidy” favourable activity, the scale in the field of cross-border electricity is huge.
for month turnover than honey bud, 500 million total trading stock up quite so after 5 months. Since web site launched in March 2014, bud honey baby just a year old, the latest official figures platform has 1.6 million members, covering 13 fine classification, there are about 30000 SKU, month $amount, 80% of the orders from the mobile terminal, 85% of sales revenue from proprietary.
what should let the is still in the early stage, company to the industry to compete? Besides well-funded, CEO Liu Nan says the change about the strategic considerations behind the price war.
why must compete on price?
in diapers, for example, most of the maternal and infant electricity sector average gross margin is only 3%, and the vertical increased maternal and infant electricity and integrated platform into the melee, the competition will be intensified, in this case, must seek a new way to break.
Liu Nan believes that price war is still electricity compete with the best effect, because the price war can not only reveal strength and can eliminate a weaker, is equivalent to a price war all-round who’s been swimming naked. In addition, she also think that this is not only a lower price than those who, order quantity and purchasing power of the upstream supply chain even more crucial.
as a result, her claim to the 2015 diapers business team is never earn a cent, the core is to improve the overall market share at a low price.
why playing up?
is very simple, in the past year, bud honey baby after three rounds of financing, among them, online before challenging funds and perilous peak huaxing $ten million investment; In June 2014, $20 million B round, childhood C round of $60 million in December. Financing amount is rising, chests.
not only such, honey bud at present is to take advantage of the supply chain system. Unlike most of the overseas scattered on the market to buy hand-made, honey bud is the skill of the whole chain through the self-management model.
in diapers, for example, the company from Japan vendor business direct purchase, and abroad set up trade companies have control of export and import links, ensure quality goods at the same time reduce the layers of premium of middlemen, so can put the goods price pressure to a minimum. Change time to open a massive price war is among the traditional hierarchy complex war on distribution pattern, while ready for the competition ability, take advantage of their supply chain, jeopardizing the interests of the other party or unable to take.
compared with competitors, honey bud mode seems very “heavy”, personally control and operation of the link too much. Appreciate the practice of jingdong Liu Nan believes that “heavy” is dominant, is competitive, is also a moat.
why foundation is good?
diapers and milk powder, as a category of maternal and infant electricity is the most important, currently in bud honey baby platform has accounted for 40% of all transactions, at the top of the first big category (products occupy the second category), but the proportion in the domestic and imported electric business platform is relatively low, and even some platform diapers milk powder accounted for 70%.
in this case, the honey buds take their proportion is not too much of a standard product business to compete with rivals, even diapers losses, other business can make up for, the influence is limited, but rivals may can’t stand it.
“not dozen milk powder diapers will die, will only make milk powder diapers die faster” this sentence or that import and some problems in the status quo of electricity.
low for too long the strong-arm reaction to the
Liu Nan profess, honey bud after too low-key, to what extent? Is financing the other people all don’t understand why can so smoothly. Then feel often sometimes also don’t know what to say, had to say life is good, but actually believe that investors are not fool, honey bud accumulated strength in supply chain is still not fully burst, or is not fully open to the outside world to know.
new competitive weapon
the above mentioned milk powder diapers just 40% of the honey bud, the rest more non-standard products business, in bud and honey do further expand category, such as clothing textiles and household department category. Now on the open platform for tenants, this year will do to expand in proprietary.
in Liu Nan point of view, the product can bring but profit space is little, push the new product will ultimately decide the ability of mother-to-child vertical electric business gross margin, has a large number of users professional vertical electrical business will have a bigger space at a premium.
in the product section, honey bud was launched late last year the function of strategic networks, the main scene consumption and social images, encouraging mother bask in your parenting life scenes, and the use of “parenting artifact” marking. At present, through the image tag data add to cart already accounts for 30% of the total.
in addition, on the delivery period of control optimization, honey buds will be in ningbo bonded area self-built warehousing business. Liu Nan revealed, which belongs to the first in the field of national electricity, it will bud of honey in the domestic stock mentioned significant role in promoting, shipping, etc.