Vanke VANCL reduces commissions: triggers its website to shake

Vanke Eslite recently posted an announcement on the official website to reduce the commissions of its website alliances (webmasters, apparel agents, brand franchisees, etc.) from 16% to 10%, which is so far China's self-built "net." The "Emergency" e-commerce company has substantially lowered its "rebates".

Vanke Eslite's website Vjia (V+) recently announced a new affiliate commission policy, with the overall ratio down from the previous 15% to the highest 11%. In addition, orders using gift cards also enjoy commission sharing.

In the e-commerce industry, "Network Alliance" is recognized as an effective way to convert the traffic brought by the Long Tail Effect. The well-known domestic B2C websites have announced an increase in the “net league” construction, which is used to counter the rise in the price of advertising on the Internet. According to informed sources, the net sales created by the alliance accounted for approximately 10% to 15% of the total sales of Vanke. Lowering the commission by 6 points will at least give Vanke a profit of 20 million.

However, where the guests are still a little lower than the commission, the cries of the chieftains have come and go. On July 22, Fan Kesha, the rival of Vanke, called together more than 200 network alliances and held the “First China Women Online Shopping Alliance Alliance Marketing Conference”, announcing that the net alliance commission was as high as 20%.

The imbalance of interest distribution will disrupt the Vanke Alliance?

As the chairman of Bazaar and Marketing EVP (Executive Vice President), Yan Xincheng described the website alliance: “Network alliance and word-of-mouth are the people's foundation for the existence and development of e-commerce.” Entering 2011, the price of portal media advertising is generally higher than that of 2010. More than %, "Network Alliance" based on CPS (Pay for Sale) is an important marketing channel for e-commerce companies to combat the rise of Internet advertising prices.

Jingdong Mall CEO Liu Qiang Dong also firmly believes that CPS-based marketing tools will have great development in the future. He predicts that the "Network Alliance" may be in the second half of 2012.

In the "Network Alliance" marketing, the distribution of benefits is the core of the operation. Jinsha Jiang venture partner Zhu Xiaohu gave a report to the Southern Metropolis Daily. Normally, the franchisee's profit = sales amount divided into percentages (ie commission); and sales = traffic × click-through rate × conversion rate × average order amount.

As a result, Vanke Eslite will reduce its website affiliate commission from 16% to 10%, which may be too dangerous. Informed sources told Nandu reporters, “Where the customer’s current sales growth has slowed to 50%. Prior to this, the net sales created by the alliance accounted for approximately 10% to 15% of the total sales of Vanke.”

At the same time, the competitor Dream Bazaar is exerting himself, and he even aims to disintegrate the Vanke Network. At the "First Chinese Women's Online Shopping Alliance Affiliate Marketing Conference," Yan Xincheng promised more than 200 webmasters, clothing agents, and brand franchisees that "the commission share of Dream Bazaar will reach 20%. This year's advertising promotion fee is expected to reach around 200 million yuan. , will boost sales by more than 3 times."

Game of scale and profit

However, in the eyes of investors, “The bloody era of e-commerce has come. This year, 5 B2C companies in vertical fields will continue to saturate their funds, and then they will continue to be dead in the top five, and finally with the portal. Like online games and online travel, the trend of 'three pillars' is being formed.” Zhu Xiaohu told the Southern Capital Reporter that there is no doubt that where the guest and Dream Bazaar have rushed to the top three of the clothing B2C, the competition between the two is inevitable.

However, public information shows that where the customer's sales in 2010 reached 2 billion yuan; and Dream Bazaar's sales target this year is 1.2 billion. There is still a gap between the two companies' existing scale. “But the top two and the top three in the market segment, no matter how large-scale, the ultimate challenge is profitability. Now that e-commerce investment and financing has become increasingly cautious, the profit requirements of the website have been placed on the desktop by investors. "Focused media CEO Jiang Nanchun said in an interview with Nandu reporters that the core of e-commerce is the matching of supply chain and demand chain, and the higher the matching efficiency, the stronger the website's profitability.

From this point of view, the commercial essence of Dream Bazaar and Vanke is almost the same. What they earn is "relying on the added value of the brand based on information services." The "customer unit price" is a concentrated expression of the profitability of the website brand. As a result, “Customers who have low customer prices will have to lower their rebates” and “scale” in exchange for “profits”; while those with relatively lower sales and higher customer prices will be given a better dream Bazaar. 'Inviting investment' policy, 'Lee Lee' to obtain 'scale'. "Industry sources said, 'Network Alliance' war, in the final analysis is the will of capital.