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China 20 Years Internet Book War

via:博客园     time:2019/4/23 18:33:47     readed:202


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According to the 16th National National Reading Survey, the average adult reading in China is 4.67, which is less than 0.2% compared with the same period of last year. Compared with the number of 12 adults per capita in the United States, there is still much room for growth.

According to data from Global English Editing, in 2016, China's book publishing volume has surpassed the United Kingdom to become the world's second largest market.

From papermaking to digital reading, Chinese civilization has experienced a climax and a trough, and has become a dream catcher in recent decades.

The children of Shenzhou are studying for the rise of China, and they are also using the Internet to change the world.

The past of Internet book e-commerce is a period of history that cannot be ignored in the rise of the Internet.

Network effect

In 1994, Bezos quit his job as a high-paying Wall Street, creating Amazon in his garage, and his wife as an accountant and a big butler.

They struggled together, working 12 hours a day, and rarely taking vacations on weekends, which is "007" as it is now popular.

According to data from Media Ownership and Concentration in America, the size of the US book market in 1994 was approximately $19 billion.

Bezos chose the book market as a starting point and considered it. For example, the book industry is mature but the physical bookstore has not yet formed a real giant, the standardization of the categories is high, the consumer groups cover a wide range, easy to store, and low management costs.

Amazon initially received orders via email, stocked them to book wholesalers based on orders, and then sent them to readers through the postal system.

Compared to physical bookstores or postal book purchases, Amazon's efficiency comes from the network effect, and the infinite network collects scattered and fragmented demand across the United States, allowing a long tail market to be presented. This allows Amazon in the garage to quickly grow into an important book retailer in the United States. Based on past sales data, Bezos is convinced that consumers can accept online shopping. The next step is to meet this demand.

The Amazon website was officially launched in July 1995. This move has been fully affirmed by consumers. After one week of launching, the daily turnover of the website reached US$12,000.

The ups and downs of Amazon have inspired many people to join the Internet industry.

Also in this year, Li Guoqing, the former vice president of the North University Student Association, discovered Amazon by browsing Yahoo's webpage. There are hundreds of thousands of books on it, just like the discovery of treasures.

Ma Yun also just saw the power of the Internet in the United States and returned to China. In an interview with TV, the 21st century is the century of computers.

When most people are still asleep, some people are already on the road in the dark.

In 1996, Li Guoqing graduated from the New York University MBA, and Yu Hao, who had several successful investment cases on Wall Street, quickly married.

This year, the prestigious Jinshan Software Lamor Lei Jun has written down the famous "My Ten Years of Programmer's Career", while Ma Yun founded the Chinese Yellow Pages in Beijing, and Liu Qiangdong just graduated from the National People's Congress.

Everyone dropped the money in their hands and the game of the Internet was ready to begin.

Western learning

In 1999, the book retail industry in China was only 21.6 billion yuan, while the same indicator was $23 billion in the United States. The huge gap also means that the market space is broad in the future, there are precedent template replication, and the fire of the stars can be reduced.

In China, Amazon's apprentices have suddenly increased.

This year, the Chinese Yellow Pages founded by Ma Yun failed, so he returned to Hangzhou to establish B2C's Alibaba.

Liu Qiangdong continued to struggle with Zhongjing Village's “Jingdong Multimedia Production Room” with seven people.

Li Guoqing returned to China with Yu Hao and founded Dangdang. The main business is online sales of books and audio-visual products.

At that time, the netizens did not understand the newly-created websites of Alibaba. Instead, a B2C website called 8848 selling software and books was more noticeable. Its chairman was Wang Juntao, a netizen.

In November, Intel CEO Barrett visited China, saying that 8848 is “China's e-commerce leader”.

After the famous Internet bubble in the United States in 2000, the company also gradually declined and disappeared into people's minds.

The course of history has not stopped because the individual has disappeared, and it constantly chooses species that are suitable for the environment to survive.

In May 2000, Chennian and Lei Jun's Joyo.com officially launched, using the slogan “Beyond the Ordinary Life”, the main business is also books and audio-visual products.

(Because the old man thinks that Lei Jun’s name "excellence" is not "modest", the company founded many years later is called "Vanke.")

Dangdang successfully obtained the first venture capital and started a new round of rapid growth.

In 2001, Dangdang and Joyo became the largest online book retailer in mainland China.

Joyo.com and Dangdang have officially started the same battle.

Spring and Autumn Hegemony

In the early 21st century, China not only gradually recovered in the Internet bubble, but also exploded in the online book retail market.

In 2004, Dangdang's book retail advantage became more and more obvious, and the book business has begun to lead.

In February, Tiger Technology, a subsidiary of Tiger Fund Management, injected 11 million shares and became a shareholder of Dangdang. After the financing, Dangdang began to explore online retailing of more categories such as daily necessities.

According to this path, it should become the largest e-commerce company in the country.

In North America, the two largest physical chain bookstores (Borders and Barnes & Noble) were forced to breathe and even collapsed, and the international business in the past two quarters was not satisfactory. The Internet development space of China's 1.3 billion consumers is the most ideal choice for his international business.

The teacher of the year came over, and the students seemed to know more about the way the land survived.

The earliest Amazon was looking for Li Guoqing and the couple, and opened a $150 million price to buy the majority of Dangdang's shares. This requirement exceeded the bottom line of Li Guoqing and they eventually rejected Amazon's offer.

Amazon had to turn to find the second Joyo. At this time, Joyo just reached balance, with revenue of 150 million yuan last year. Lei Jun was not satisfied with the speed of starting this business for many years, and finally chose to use $75 million. Sell ​​the Joyo.

For Lei Jun and Chen Nian, it is also considered to be in line with business logic. Dangdang lost a local company opponent, came to the opponents of the year, and many people lurked in the surrounding.

Also this year, Jingdong Multimedia began to enter the field of e-commerce. For the players in the book e-commerce field, this is just an ordinary news, because Jingdong's main business is 3C electrical retail.

Maybe people at the time were not aware of it,The essence of the Internet is to connect everything, which means that the world is flat, and all fields will live on a plane.

In 2007, Jingdong was renamed Jingdong Mall, the domain name 360buy.com.

Dangdang established a 40,000-square-meter logistics center in Beijing, and even Jingdong did not have such a large logistics warehouse. Later, through reflection on customer complaints, Jingdong realized that logistics is an important part of e-commerce to provide user experience value, so it firmly adhered to the road of self-built logistics.

In the United States, Amazon released the first generation of Kindle in November of that year. The trend of digital reading has since started, and there has been another track for online book retail competition.

After several years of business access, Joyo.com officially changed its name to Amazon.joo.com directly to amazon.cn. From here on, it is just becoming Amazon China.

Bezos also visited China twice, creating momentum for Amazon China's business, and Amazon's status and carrying expectations are evident.

At that time, Amazon China was very popular with efficient and fast logistics. A book with a few dollars could be cashed in, but obviously it was a way of burning money.Capital cannot continue to invest if it does not have a clear market position.

Faced with fierce competition in the Chinese market, Amazon China can't afford such a high cost, and it has been changed to a certain amount of money later, and the rest needs to pay extra postage.

Logistics is a must for book e-commerce, because it is the core cost of e-commerce, e-commerce has no store rent and sales of labor and hydropower, mainly relatively easy to manage warehouses and sites with very low marginal cost.

From the perspective of business models, book e-commerce has great advantages over the investment in various fixed assets of physical bookstores.

The sky above the physical bookstore industry is covered with smog. According to statistics, in 2007-2009, the number of physical bookstores in China decreased by 10,000.

"Destroy you, it has nothing to do with you." This sentence in "Three-body" is reflected in the book e-commerce war.

Consumers used the mouse instead of the two-legged vote to choose the direction of future consumption.

War without smoke

Consumers' enthusiasm for the Internet, as always, has also led to the successful listing of many unicorns.

On December 8, 2010, when Dangdang was listed on the NASDAQ, it became the first B2C business in China.

At this time, Dangdang's book business revenue reached 10 billion, and its market share has exceeded 50%. Because the concept is good, the fundamentals are also good, and Dangdang has received a lot of attention from investors.

Surprisingly, JD.com, which is busy in the 3C e-commerce field, announced its entry into the book e-commerce field on the same day, and announced that it would enter the online book market at a price 20% cheaper than its competitors. Confrontation.

Liu Qiangdong’s declaration of war made Li Guoqing’s joy of ringing the clock lose its color. He did not understand that Jingdong’s good 3C billion-dollar market needed to grab the 20 billion “small” cake of online books.

Liu Qiangdong said afterwards that he wants not the book market, but the users. Because the frequency of users purchasing books can develop the habit of online shopping, which contributes to the overall business development of Jingdong Mall.

Jingdong’s declaration of warfare is not a reckless book, but it is prepared. Liu Qiang, who is the vice president of Amazon's books in charge of excellence, has many years of experience in the book industry and is ready to carry out price wars with Dangdang.

Liu Qiangdong may have a deep understanding of Amazon's flywheel effect.In the Internet world, the user experience can win the market.

Facts have proved that JD's choice is right, using the good experience provided by Jingdong's own logistics center in recent years, and the absolute low price, suddenly let a large number of netizens enter Jingdong.

However, the same way of burning money is not applicable to Dangdang. At that time, Dangdang hoped to carry out price wars in turn through Jingdong’s core business such as mobile phones.

However, the volume of e-commerce and 3C e-commerce, which is mainly based on books, has been too large for many years. The mobile phone supply chain is far from mature. The end result is that Dangdang cannot continue to burn money and return to the main business silently. .

This kind of invasion of Jingdong is like a dimension reduction blow, so that fast fish eat small fish, and it is big and small.

Amazon, which was forced into the price war, seems to have been a supporting role for several years. Like most foreign companies that are proud to enter China, Amazon hopes to serve the public in its own way. However, it ignores the different needs of local users and gradually loses its hearts.

The final outcome, there are signs a few years ago.

Amazon China’s market share is getting smaller and smaller, and the flywheel is not Amazon in China.

Book wars are not only about price wars, but also between product iterations.

Paper and bit

In 2011, Amazon released the revolutionary Kindle Touch, which completely turned the page through the touch screen, and the reading experience of the e-book was greatly improved. (The following "e-book" refers to the Kindle ink screen e-reader)

People at the time generally had a question, would the e-book be completely replaced?

The vested interests generally hold concerns, and the new generation generally carries expectations.

Amazon has been the leader in the market by iterating the Kindle once a year, still benefiting from its flywheel effect.

Amazon took advantage of the platform and Kindle sales, once monopolized the publishing price of e-books. Until the electronic publishers protested collectively and renegotiated with Amazon, the price of e-books continued to rise, returning to the same price as paper books.

That is, at that time, people began to gradually understand the role of the new thing of the Kindle.

It can't completely replace paper books, it can increase the frequency of people opening books, and even increase the sales of paper books.

Studies have also shown that the reading efficiency of e-books is not as efficient as paper books. Is this gap caused by current technology limitations, or is it caused by human beings' "paper dependence" for genetic training for thousands of years? There is currently no more accurate answer.

According to the current situation, paper books and e-books will promote each other for a long time to come.

Data shows that paper books are still the first choice for most people, and you can also see that e-reading has become the main way of daily life.

The Kindle has been used by many people as a moving artifact, a business trip, and even used to cover instant noodles, indicating that it does not provide a "sacred" reading experience.

The Kindle can only be mentioned as a highlight in Amazon China's business, and the rest of the business is not satisfactory.

In 2012, Dangdang launched the Dangdang Reading Client APP.

In January of that year, Taobao Mall changed its name to Tmall.

In June, Tmall Bookstore went online, selling 60 million books, and cooperating with more than 50 domestic and foreign publishers and more than 20 independent B2C shopping sites.

Tmall began to enter the game. The difference is that it inherits Ma Yun’s idea of ​​“making the world a business that is difficult to do”. It is only a platform, and even Dangdang can enter.

After 2013, information about China's business has disappeared in Amazon's financial report, and Bezos has not come to China for many years.

In 2016, the pattern of e-commerce has become Tmall and Jingdong hegemony. Dangdang was delisted with a market value of 536 million US dollars, only 1% of Jingdong's market value.

The end of an era is also the rise of another era.

Budding and rebirth

After nearly 20 years of rapid development, the Chinese book industry is no longer an inconspicuous market. The number of books published has increased dramatically. The homes of heavy readers have a large number of idle books. Many people fall into the old books and do not want to be used as waste papers, and they do not deal with too much space.

Demand has been, but it has not been well met, and it is the normal state of the domestic second-hand book industry for a long time. The common form is that a large number of fragmented shops or stalls exist in the corner of the city, and there is no scale or king.

However, this format is in Japan, and there are teachers who are worth learning.

In the recession of Japan, Bookoff, a second-hand bookstore with C2B2C, which has a high market share, has been born. Bookoff is characterized by refurbished second-hand books and re-sold them on the shelves like new books. The price is cheaper and greener than the new books, and people are beginning to pay for this new option.

In 2017, Chinese apprentices in the field of second-hand books also started their business in the context of China's economic growth.

C2B2C second-hand book e-commerce, represented by more fish catching, has taken the lead in the book-selling book boom of the writers. The most famous incident is that Jiang Fangzhou’s book sales have caused everyone’s buying.

More catching fish is the idea that good books are worth recirculating, and gradually gain the favor of more young groups."The reason I love you is not to change because of your changes, but your skin is filled with interesting souls.Perhaps in the future, more people will agree.

More fish catching 3 rounds of financing, won the favor of the famous VC and Tencent, and is currently developing at a high speed.

I mentioned in the old article "Catch more fish, you didn't learn". There are two points worth paying attention to. The first is the circular trading system based on precise demand. This is different from turning, idle fish, etc. Also do the e-commerce of the second-hand book C2B2C business. The second is that it can connect buyers and sellers and establish social relationships.

The precise requirement is that the multi-catch fish uses the user's annotation to identify the demand, and the current warehouse supply is priced by the internal system algorithm.

In theory, as long as the system has enough data, the more accurate its pricing, the greatest benefit for both buyers and sellers. Compared to most e-commerce companies can only do a one-size-fits-all price recovery and sales, the way the machine is priced is obviously more efficient.

The smoke of second-hand books has just floated, but the taste is familiar.

58 The transfer of books in the same city began in 2018, with the advantage of WeChat's import flow and business accumulation in 58 cities, and the online second-hand book business was carried out with a similar multi-fishing operation mode. Up to now, it has recycled 3.5 million second-hand books and sold 2.3 million second-hand books. Currently, the business leads the second-hand book industry.

It is worth noting thatThe inventory of second-hand books is likely to become bad debts. After all, consumers think that books that are not worth buying are cheaper and will not be bought again.

Alibaba's leisure fish is known as C2C second-hand trading, while the second-hand book C2B2C is operated by recycling treasure. Whether the future C2C second-hand book model can become mainstream, now you need to ask a question mark.

Who is the future of this market? We don't have to rush to find the answer. It is their wonderful game that reflects the dramatic changes in market demand.

To know,Second-hand books sell not only books, but more importantly, lifestyle.

In the past few years, the physical bookstore format has not died, and coffee and handicrafts have returned as a new way of life.

Amazon, which lost its pricing power for e-books, began to rethink the breakthrough in the physical book business, so Amazon Books, the Amazon physical bookstore, was in North America.

In 2017, the State Council issued the “13th Five-Year Plan to Promote Equalization of Basic Public Services”, emphasizing the need to promote reading and support for the development of physical bookstores.

Xinhua Bookstore closed some stores, upgraded some stores to join coffee and cultural surrounding retail, and the textbooks that rely on the largest block of Chinese book maps are still very moist.

Eslite Bookstore crossed the physical bookstore's bull and bear market, and finally lived the pilgrimage site of Wenqing people's hearts, and at the same time became a model for diversified book management.

The owner of the private entity bookstore, Sisif, currently has 200 stores and has become the largest direct chain bookstore brand in private bookstores.

Dangdang is not behind, there are more than 160 physical bookstores by the end of 2017, and 1000 physical stores will be completed by 2019.

The battle seems to never come to a dead day, the history is going round and round, the economy is ups and downs, and we are covered with joys and sorrows.

Hope today

In 2017, China's book retail industry has reached 111.185 billion yuan, an increase of 413.72% compared with the year of 21.643 billion yuan in 1999.

China's book e-commerce also developed and grew in this process, giving 1.3 billion people the power of civilization.

Lei Jun has already used the Xiaomi mobile phone to seal the leader, and the rivers and lakes called Leibus.

The experience of the old age is ups and downs, and as he wishes, he will eventually become a guest.

Tmall books came to the fore with an open attitude, occupying half of the online market with 35 billion yards of ocean, which Dangdang contributed the most as a book sales champion for many years.

When the 20-year-old Dangdang was unable to sell Hainan Airlines, he was still the largest share of online books. Li Guoqing withdrew from Dangdang and Yu Yu regained business. However, Peking University's talent is not idle, and now his Weibo is also a channel he is familiar with after the 90s.

Jingdong has firmly occupied the second place in China's e-commerce business, but the book business has not been fierce in the past. The self-built logistics has been losing money and can only liberate "brothers". Liu Qiangdong has also been sued for sexual assault cases. Recently, new videos have been brought. Reverse, the road ahead is uncertain, and can only wait for the judge to decide.

Amazon China's market share has declined from 20% in its peak period to 0.7% today. On April 18, 2019, it announced its withdrawal from China. Only the Kindle and overseas purchases were retained. Even the Bezos, who had been struggling to start a business, divorced. It is.

The electronic reading represented by the Kindle has become a daily choice, but it does not occupy the eyes of the people as expected. Instead, the mobile phone tablet and other readings complement the layout of e-reading.

The physical bookstores carry the new hope of "new third space" and "literary highland" and return to people's minds.

In the field of second-hand books, there are books running all the way, and the leisure fish is closely followed. Only the fish catching is not anxious or not. Maybe it is not the same track.

Twenty years of turning around, the smoke of the book war is still rising, but we have not thought that the biggest winner is actually you - one of the most common consumers of online book consumers in China, enjoying the growing class of books Rich, fiercely competitive market dividends, so you can get the most extravagant experience at a low price - reading experience.

I hope that you can find happiness and self from reading, and we are not afraid of the awe of the Chinese book e-commerce.

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