Breaking

  NetEase’s latest financial report reveals the fact that since the e-commerce business was launched in 2014, NetEase’s overall gross profit margin has dropped from 72% to 42% in 2018, while the net interest rate has dropped from 41% to 9%. Not to mention the dilemma, there is a giant Ali outside, and there are 2 billion US dollars in his pocket ready to “take over” at any time.
  The same is the Vipshop of e-commerce, and also ushered in the “fantasy” scene of data growth. The latest financial report in the second quarter showed net revenue of 22.7 billion yuan, up 9.7% year-on-year. However, there are statistics, only In the past seven years since the listing of the product, the market value has fallen from the peak of 15 billion US dollars to the current 4.792 billion US dollars, the market value has evaporated 68%, the revenue growth rate has been falling all the way, and the number of active users in the quarter has almost stagnated.
  In addition, giants such as Taobao, Tencent, Baidu, and Jingdong are also facing the disappearance of the Internet demographic dividend, increasing traffic, making customers more and more difficult, and overall growth slowing down or even stagnating. This is the Internet age. The overall anxiety.
  As a result, breaking the growth dilemma has become an important strategic issue for most companies, especially those that rely on traffic to survive, they have to reconstruct the existing business model. In the past, almost all brands were trying to get traffic, following the AARRR model, and taking the Acquisition first. Today, they are starting to practice the RARRA model and putting Retention in the first place. In other words, in the past, it was traffic thinking. The larger the traffic, the higher the conversion rate. Now it is operational thinking, and it pays more attention to the refined operation of users to realize the lifetime value of users.
  Therefore, the effective prescription to break the growth dilemma still needs to return to the “deep cultivation” of users. Only when users get more value experience, his repeated purchase rate is possible, and more new users will continue to Influx, thus achieving good fission.
  In the face of the dilemma of growth, what companies need to do is to follow the trend, not to go against the wind, so that there is a greater chance to achieve a break and be invincible.