Devott Insights: The Difficulties and Thinking for the Mode of “Wanda E-commerce”
Source: View: 289 Date: 2015-06-19

Recently, the departure wave of the CEO of Wanda E-commerce has attracted many attentions for the mode of Wanda E-commerce. According to the information collected from different areas, the reason why its CEO departure is Wanda has not adapted to the e-commerce thinking. And the thinking modes between e-commerce group and traditional management thinking in Wanda are different. However, CEO of Wanda Group has introduced that e-commerce built by internet people can only know to sell products. Actually, the confliction between two concepts is the difference of thinking between 1.0 e-commerce and the 2.0 e-commerce. For the past of 1.0 e-commerce, actually it is to do e-commerce of sale channels that puts offline sale modes into online. The 2.0 e-commerce is to accomplish O2O mode that gets through the channels of online and offline. Online platform is the front desk of delivery; the offline shops can provide more functions of experiences and exhibition hall.

The e-commerce mode provided by Wanda is fit for the mode in the 2.0 e-commerce. From the development plan of Wanda, e-commerce is not only a simple sale orientation. The real mission is to gather customer flow online, to form Wanda membership system and then to explore and analyze data from membership system, and finally to open new consumption areas from new emerging industries such as finance, culture, and sports.

The concept of Wanda is perfect but lacks of traders, so it has long way to go. Currently, Wanda develops function that provides information and services from square activities, business information, shopping guidance, preferential discount and gift exchange in order to get more membership flow. However, the layout of this closed O2O mode is too small to far away from targeted distance of Wanda. For long-term, it must be necessary to open platform than then to occupy more market space. This not only enlarges flow but also increases viscosity of users and also can promote business from offline shops. After opening platform, it not only improves the experiences from medium and high-end customers for O2O, perfects e-commerce mode of Wanda, but also occupies market of low-end customers who have sensitive feeling for price war from traditional e-commerce then increases flow of platform and explores more data. We can see that Baidu has made plan for this aspect and used position business of Baidu map as base to accomplish online introduction from offline shops. In my own opinion that this is also a way for Wanda to open e-commerce platform, and a good method of win to quickly grasp opportunity in internet era. Let’s see the change.

This post is a personal or group view of Research and Advisory members and don't necessarily represent Devott's positions, strategies or opinions.

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