Adidas net loved SKOMART and E-business how to live through winter aroused market concerns. Electronic business industry once was pushed under spotlights to experience the enchanting scenery, but now it seems to be sat on a “roller coaster”. The e-business’ “cold wave” comes earlier than expected. Electronic business how to pass severe winter to meet spring has became a hot debating topic nowadays.
On December 13th, while Adidas went against the trend, Adidas first authorized SKOMART to expand nets sales market with it. Adidas has brought a warm stream to e-businesses in this cold winter, so the significance of positive guidance is self-evident. E-business industry is really menaced by the cold? Being faced the cold, e-business in what way to break out of it.
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Trace the origin of e-business “severe winter term”. The frontrunner of domestic footwear B2C SKOMART’ CEO conveyed his comprehension to e-business “severe winter term”. In my opinion, severe winter theory should be divided into two sections, and handled with sense, because winter is only a matter of e-business fund’s winter. The industry’s good tendency attracted investors and proprietors’ mad expansion, but they can’t see profitability perspectives in the short term, so it is people’s inner struggle, not e-commerce’s severe winter. As far as I can see, e-commerce is walking in spring.
A brief retrospect about e-commerce’s progressive track in China, it is not hard to estimate that a lot of domestic e-businesses depended on huge advertising expenses to fight for search traffic and drew more investment. Afterwards, in return, they enlarge to strive for value-added development route, so investors and e-commerce traders expect to win through short-term running. On the basis of insiders’ analysis, nothing else than this kind of “money burning” business model was the root of e-commerce’ severe winter experience.
The above argumentation can be proved if we haphazardly turn over an advertising marketing cost account of an e-business company. In first-tier cities such as Beijing, Shanghai, ads of e-commerce have sprung up just as mushrooms after a spring rain since last year, attracting people’s vision fields one after another. E-business ads are pretty showy on outdoor signboards. In 2011, VANCEL spent 1 billion RMB on ads, while this data was 200 million RMB in 2009. This kind of state is cast in the same mold. The CEO of Okay Buy said that in 2010, 20 million RMB was put into advertising investment, while 100 million RMB was declared to invest in advertising field in the beginning of 2011.
Upright B2C type of e-commerce businesses need to advertise endlessly to bring search traffic for their websites, and being like dancers with “red shoes”, e-commerce businesses couldn’t cease their “dancing steps”. Meanwhile finite advertising resources raised higher, and unit cost soared faster due to e-commerce groups’ rapid swell. Marketing cost

By Haadi