keyword 1: business
B2C itself is a business, which most people understand, but how to look at this business? Simply look at a B2C project can be done, can be analyzed from the following elements:
margin = number of users * user contribution margin
user contribution margin = order amount * gross margin * repeat purchase rate
so a good B2C project should be: the market capacity, high order volume, high gross margin, high repeat purchase rate of the site. We can according to these elements to analyze the current more successful B2C website, generally in the 4 elements of a few have a good advantage. If these 4 factors are the general project, cautious suggestions.
keyword two: positioning
simply said: positioning focus on the market and competition.
analysis of the market is basically the same as the first point of view, from the number of users, the amount of orders, gross margin and repeat purchase rate considerations; competitive analysis is mainly to see whether the industry has B2C oligarchs and C2C. B2C is fierce competition of the market such as books, audio and video, at present to wade this muddy water is not too big opportunity. In China, it is difficult to do B2C to avoid Taobao and other C2C, and how C2C differentiation is a major issue of competition.
keyword three: plan
recommends 1 B2C projects with a long term plan and good financial budget, including early, medium and long term. Under normal circumstances, the initial rate of return on investment will be relatively low, which is particularly evident in the performance of B2C, many of the current B2C projects are prone to major problems:
A early burn
many a B2C person will be at an early stage regardless of the cost of burn but has little effect. It is recommended to increase the "water test period" in the early stage, and then try to understand the true meaning of the "initial", otherwise it will be found to spend a lot of money;
B while walking to see
a lot of B2C projects are holding the feeling across the river mentality, as an emerging B2C industry, individuals are very encouraged to test the water. But after the trial, we must decide to do or give up. If you do, you must develop a long-term plan, especially to do a good job in the early stage of low return on investment. At present a lot of small B2C it is difficult to develop the most reason is the lack of investment, can only hope that through the way of "snowball" development, but only the initial characteristics of high investment low returns so that these B2C struggled in the "flat line", and it’s hard to have a big development.
keyword four: stage
mentioned above the 4 stages of the B2C project: water testing, early, medium, long term.
water test period:
has a "test the water" to enter new B2C project proposals, many B2C project launched "burn" (directly into the early.