Multi Channel Business Disputes

Mcglaughlin, the first listed B2C company, now faces a threat of delisting because of its stock price below $1. If there is no reversal, it may also withdraw from the capital market in the capacity of "the first share of the electricity supplier to withdraw from the market". The company's earnings report showed that net revenue of US $37 million 100 thousand in the first quarter of this year dropped by 22.8% compared with the same period last year, with a net loss of US $4 million 200 thousand.

When Jingdong, Taobao, Dangdang and other electric providers have spent tens of millions or even billions of dollars, when they start the promotion war, Mcglaughlin has never acted. Even marketing campaigns such as advertisements are so common that they are low-key. Many people suspect Mcglaughlin is already facing financial difficulties.

People can't help asking, what's wrong with Mcglaughlin? Electricity supplier industry Can you hold on?

In fact, since 2006, Mcglaughlin has been developing towards multi-channel retailers. E-commerce, mail order and physical stores have been combined to be known as the 3 leg walking multi-channel mode. Walking on 3 legs, Mcglaughlin wanted to add more business types to complement each other, but the result was not satisfactory.

In the retail outlets of the network and physical stores, there is no distinction between product categories, and similar products are sold in the network and entity stores step by step, resulting in a substantial squeeze on the profit margins of the entity stores, which has led many franchisees to go away indignantly. And, in Fashion dress In the case of advantages, however, due to the average strength of multi-channel construction, the advantage is gradually weakening in the fierce competition of e-commerce.

Mcglaughlin did not seek to develop YISHION electric business. Instead, he formed the online and offline mode through multi-channel layout, but was also considered to be the right hand to hand and ultimately hurt his own interests. In the first quarter of this year, sales of Mcglaughlin's 3 models decreased year by year, including 35.1% and 15% of Internet sales and self employment and franchise sales respectively.

In such a severe electricity supplier war, diversified development is not just Mcglaughlin's. In May 28th, Dangdang's own brand Dangdang superior products was formally launched, while Suning also said it had to build its own brand. Brand clothing 。

E-commerce has become a trend in many fields, but it has also been questioned by the industry. The same as entity enterprises, if the electricity providers blindly expand channels, but relax the operation and management of the main business, then risks and losses will also be mercilessly patronized. The time of the transformation of the electricity supplier is pressing step by step. I am afraid that only by ingenious layout can we avoid Mcglaughlin's self serving scene.