Japan Lotte defeated Chinese reason

Business" money earns cry out" how far to go?
In April 27th, Japan's largest Internet shopping company Lotte Lotte and Baidu announced, in China set up a joint venture of B2C website music cool days off, Lotte defeated China will be attributed to the intense market competition and music cool day operations performed worse than expected.
Lotte defeated.
Music cool days store by Japan's largest e-commerce enterprises Rakuten2010January with the Chinese partner Baidu online network technology company formed a joint venture,, both sides is collective and contributive 50000000 dollar, Lotte and Baidu had respectively51% and49% of the shares. In October 19, 2010, Le cool days shopping on-line.
From its website can see, Le cool days within the mall products include apparel, jewelry, home furnishing, home appliances, digital, maternal, cosmetics, audio books, jewelry, automobiles and accessories such as a full catalogue online shopping goods. Lotte and the baidu implement responsibility, Baidu company is mainly responsible for the music cool day entrance and discharge problem, and Lotte is responsible for the mall business.
In the early days of promotion music cool, backed by the world's largest Chinese search engine Baidu 's music cool days, not only enjoy the baidu account number and communicated, registered users can log in directly to Baidu music cool days platform, and there are many promotion resources, such as contest price rank, advertising, display advertising, web site navigation, box computing, Aladdin's show.
At the same time fun cool day by Lotte practice13 years of " business management system" ( RMS ) to help businesses to develop effective marketing strategies, and introduced to choose logistics provider and"7 days unconditional return policy, such as" consumer protection policy.
But with the Taobao, dangdang.com, Jingdong Mall, shopping mall and other Su Ning, Gome 's all spare no effort through the promotional war and extensive advertising to gain market share, Le cool days of long-term investment inadequate preparation, both with and without extensive advertising, there is no large-scale Rangli promotions, baidu through into the enormous flow there is no change order.
According to Analysys International Show, in 2011 China's B2C trading volume reached 240070000000yuan, Alibaba's tmall mall access to nearly 40% of the market share, Jingdong Mall is ranked among the top second, reaching 14.7%, and enjoy cool days market share is less than 0.1%. From the Alexa website, Le cool days recently three months rank glides nearly ten thousand.
A call to" China United Daily" said, with the domestic business through the web site regardless of the cost, even his holiday to cheap promotional marketing practices, Le cool days although in the product category and Jingdong Mall be roughly the same, and Japan Lotte and Baidu two" giants" to do the backing, not money, but did not through the promotion battle with domestic counterparts fought on the same commodities, result cannot be given the lowest market, lack of market attractiveness. But music cool day in user training is done well, has just entered the Chinese market a year expect a substantial profit, it has the Japanese way of marketing indiscriminate set for the Chinese market, can not adapt to the Chinese consumer spending habits, but also to some extent resulted in its ultimate defeat at china.
The birth of more than a year, Le cool days of localization strategy was also unsatisfactory. In addition to create music cool day Japanese executives began by Chinese executives replacement, chief operating officer Zhang Yuhao from baidu. In addition, Le cool days of localization strategy and no more substantive content. Finally the Lotte Group was forced to announce, because the performance is not as good as expected, considering the shareholders' rights and interests and to predict the future, decided April 27th zero hour to terminate music cool days the city services.
Who is the next music cool days?
See music cool day of defeat, the domestic business enterprise that has less of a competitor at the same time, also begin to examine their own development path. The current business industry" money earns cry out" model of the expansion can be sustained?
Since the end of last domestic appliances industry into the development since the winter, Jingdong, VANCL, Newegg mall have outgoing funds shortage of rumors, although has been denied, but also from the side confirmed the" money earns cry out" model has been difficult to continue. In addition, the domestic business enterprise"1000 net side", commercial pattern are as like as two peas, so only through the big price war fighting to capture market share.
It is reported, this year 4month, by two large domestic appliance giant Gome and Su Ning took the lead in a price war has been pulled open prelusive, Su Ning 's slogan is: the network breakdown price, why the east than the west of amoy. When2011 since second half of the year, the capital market to applaud not draw a large audience of business industry towards cold tightening, investment, business enterprises have begun to shrink costs for the winter capital, product prices become a large business enterprise tacit " unspoken rule", Su Ning and the United States and draw further apart to make price war greatly, means that the domestic appliances industry usher in a new round of reshuffle.
It is reported, in 2011 of China's B2C online retailers trading volume, tmall92000000000 yuan to trade the forehead to occupy the domestic market share of 55%, while the Jingdong Mall in30900000000 yuan trade the forehead to occupy the domestic19% share. The other top Su Ning, Gome shopping mall. Su Ning and the United States and online mall shopping with its" global procurement scale"," cost intensive" and" reserve" three aces, will in the future for profit growth of competition in the market occupy a favorable competitive position.
Some pessimists argue that, for other domestic business, now have no retreat, can only support to death. Domestic business field soon there will be second, third to the death of" Le cool days". Maybe when the market into a few oligarch times, this" money earns cry out " mode will end.
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