[China] is well known, the traditional cabinet industry needs a large number of stores under the line to do support, to achieve the next line of sales. At present, a large number of lines under the cabinet brand, sales in the network accounted for the proportion of the traditional brand sales are very small, the cabinet industry is only just beginning. Then find a suitable business model, for the cabinet enterprises, is essential.

Vertical electricity suppliers to streamline product sales channels

Vertical business platform refers to a subdivision of an industry or a market segment specializing in e-commerce trading platform, is the industry exclusive e-business solutions. Vertical e-commerce platform has three main business models.

If the cabinet enterprise adopt the vertical business model, then the location can be expressed as: the use of network channels, with a strong ability to integrate resources, with higher quality, lower prices, better service for consumers to provide all the goods and services and related cabinet. Vertical electric can provide better services with lower prices, because of the change of transaction mechanism of the original industry, mainly to streamline the cabinet product sales channels of industrial chain, and introduces the supervision and evaluation mechanism of the internet.

 Consumer transaction costs can also be reduced

Compared to the traditional sales channels, vertical electric business advantage is to reduce the transaction costs of consumers: transaction costs include search costs, bargaining costs and execution costs: (1) search costs. Electricity suppliers to establish an evaluation system, with their expertise to help consumers make the initial screening, greatly reducing the cost of consumer search. (2) bargaining cost. Cabinet enterprise terminal price contains a large number of dealer costs, the emergence of electricity suppliers to reduce the dealer links, and with less cost experience stores instead of stores, to reduce the price of the product to the consumer. (3) cost of implementation. Also appearing in the electricity business, regulators and play a role of mediator, effectively reduce the execution cost of consumers.

In summary, the advantages of vertical electric business platform is obvious, and bound vertical electricity suppliers in the gradual demise of the conditions, so there are people dare to boldly predict the vertical class electricity suppliers are the mainstream of the future. Cabinet industry business development opportunities and challenges coexist. At present, although the degree of the electricity supplier industry is still low, but for the industry, the electricity supplier era seems to have come, whether traditional sales channels will be collapsed, for small and medium enterprises how to cabinet rapids on the changes in Yong Jin is the priority among priorities.