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During the recent years especially the recent two years, there has been a fierce completion between the traditional business model and e-commerce. Does your business stand it?<\/p>\n
In the 2017, this war will become a life-and-death struggle
\nThe completion will be more intense!
\nIn fact, in recent years the traditional business has been struggling in such a situation: to change or to die. There is 50% survival rate if changes have been made, or just wait to die.<\/p>\n
In traditional business mode, everyone in the manufacturing to sale chain is tired. The manufacturers are faced with high tax, high labor costs, too many competitors, low profit, and other problems; the retailers and distributors have to pay high shipping cost, rents, and then, add the costs to the price, making the price less competitive, in addition, they need to pay a lot for stock in traditional business models as per the manufacturers\u2019 policies. In the end, discounts in shops and stores make reduce the profit dramatically. Less discount, less sales.<\/p>\n
What makes the traditional business model unsustainable?<\/strong> Why traditional business model needs stock<\/strong> Why discount is necessary in traditional business model<\/strong> How to solve these problems<\/strong> During the recent years especially the recent two years, there […]<\/p>\n","protected":false},"author":5,"featured_media":8332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"acf":[],"yoast_head":"\n
\n\u201cStock\u201d and \u201cdiscount\u201d lead to this problem. Stocks cause low efficiency use of funds and discounts reduce the profit.<\/p>\n
\nTo be short, if someone needs to order some products, he have or some certain quantity so he can enjoy a lower price. Then, his retailer and distributor have to follow suit. This is why stock is important in the traditional business model.<\/p>\n
\nStock affects the return and use efficiency of funds, so, everyone has stock want to get them money back soon. Then, discounts start between all the sellers. And therefore, the prices become lower and lower, the profit become less and less.<\/p>\n
\nThe ideal new business model is to let the manufacturer to give a fixed price, and ship all products to the customers, all the retailers and distributors only need to promote and sell the products. In this way, they do not need to spend money in stock, or discount the product to lower the price.<\/p>\n","protected":false},"excerpt":{"rendered":"