Electricity supplier under a big event subdivision vertical integration

the following articles from TechCrunch, author Boris Wertz is the founder of venture capital version one. Compiled by Tiger sniffing:

electricity supplier over the past year in the field of innovation over the past 10 years.

first, flash sales and purchase limit site to the vertical field brought this industry need fresh air, since these areas reached the Amazon and eBay have not changed much, now there is a whole generation of new electricity supplier game player. Heard of Nasty Gal, Warby Parker, Indochino, Stella Dot, Chloe Isabel, Frank & & Oak, Julep, Beachmint, Shoedazzle, ModCloth, Everlane, Bonobos or J Hilburn? They get together in 2012 can generate more than $1 billion in revenue.

these pure network brand and retail value chain vertical integration, the integration of the links including manufacturing, brand and distribution. The stores were driven out of the supply chain; they took the product directly from the factory to the consumer. The prices of these high quality products, whether they are glasses or T-shirts, are quite low.

The following three reasons for

can explain why vertically integrated electricity providers are an attractive business model.

1, a unique product line means no need to fight against Amazon

any physical retailer is difficult to compete with Amazon in price. The situation is similar to online retailers. E-commerce giants are almost unbeatable in price. Chris ·, quoted by an entrepreneur, said: "as long as there is a commodity bar code, Amazon will beat you. "Vertically integrated retailers do not have direct competition with amazon. Their unique products, which can not be found in other places through Google search, by virtue of this, these pure electronic retailers can survive even if surrounded by giants.

2, a unique product for a unique brand laid the foundation for

Warby Parker has its own brand, which is also owned by the the Shave Club and Bonobos Dollar. One of the key benefits of being an online niche retailer is that you can build a brand that is completely different and easy to identify, and can foster customer loyalty.

although the store may have the advantage of experience in creating cool shopping, but today iPad aesthetics and various kinds of Internet social sharing shopping site, has the advantage to the online retailers.

3, minus redundancy = better price and gross profit

traditional retailing

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