After the price war, the e-book industry suddenly became more lively. "Hanking" began to learn a good example from the Amazon.
The price cuts will drastically reduce hardware manufacturing profits, and the discourse power of the content operation link will be highlighted. The vertical integration effect will attract players.
Price reduction game This year, the earliest announced e-book price reduction was Hanwang and Patriot. At the end of April at the e-book summit in Yangzhou, the two companies stated for the first time that the reasonable price of the mainstream 6-inch e-books should be around 500 yuan, so as to increase volume.
The representative of Shengda’s Shell Electronics was silently present. In the end, the first to kill the price below 500 yuan instead of them. Last week, Shanda announced that its 6-inch e-book price was adjusted from 998 yuan to 499 yuan, and then launched the same amount of content-giving terminal. Hanwang relapsed.
E-books may have early warning. At the end of April, Liu Sicheng, chairman of the major EINK screen supplier, revealed to this newspaper that capacity will be tripled this year, and shipments will be mentioned from 30 million last year to 30 million. The screen and chipset integration plans initiated by Yuantai and Freescale began mass production, which will drive down costs.
Mainland supporting companies are also driving down parts costs. After the shipment of EINK driver chip makers, Wisdom has forced EPSON to reduce from $6/piece to $3/piece within one year. At the same time, mainland China's EINK screen manufacturer Guangzhou Ao Yi also has mass production conditions.
However, the price reduction actions of the Hanwangs may present inventory risks. Fan Daxin CEO Cao Kanyu said that for months, end-users are actively digesting inventory.
The newspaper was informed that Shanda’s current sales promotion is the inventory of the previous foundry by Inventec. The number is small, less than 20,000 units, there is no inventory pressure, and the price of 499 yuan is equal to the market promotion. Shell insiders said that the inventory was gone soon.
This allows Grand Free to adjust the strategy. It has already stopped the Inventec foundry agreement, and now Guojie Hui, the new CEO of Husk Electronics, is looking at new foundries. It is said that Guo Zhaohui made a military warrant to Chen Tianqiao and said that the sales volume of the Bambook e-book series will be expanded to one million units within one year. It seems that the electronic movement of the shells must be dense.
This will make the lead Hanwang extremely uncomfortable. In mid-May, Hanwang reduced the price of some e-books by 15% to 40%, and some products were sold at a loss. The reporter found that the lowest price of Hanwang's products after the price adjustment is 599 yuan, but only 5 inches. Before the grand offensive, there was almost no effect.
Hanwang insiders acknowledge that price is a problem. Last year, Hanwang strengthened its spare parts resources and “attacked†its opponents. It had accumulated a large number of screens. It was not expected that the gift market had shrunk severely. The personal consumption market was again hit by the iPad. Shipments did not reach expectations and inventory levels rose.
At present, Hanwang is still holding hundreds of thousands of stocks on hand, and the original purchase price of more than 40 US dollars per piece has now dropped to 30 US dollars per piece, resulting in heavy losses. A rival executive revealed that the Hanwang had offered 8 to 12 million U.S. dollars in price protection compensation in May but was rejected.
Everyone learns about Amazon but the profit changes of the e-reading industry chain still encourages people to come and go.
"The development of the e-book industry has only just begun." Li Yi of the China Mobile Internet Industry Alliance said that it seems that the role of players in the domestic e-reading industry has not yet been fully established.
The grand nature of repeated price wars is a representative of vertical layout. Its overall advantages in publishing, original content, and service platforms are comparable to non-Hanwang rivals. Although the latter also established a content service platform, it is still more like hardware than Shanda.
Shanda Online CEO Wang Jingying had previously claimed that the Shanda e-book itself could not be profitable, but more than just nurturing the market and incubating the "cloud bookstore." During the price reduction period, Shanda Literature announced that it had lost no time and announced that the bookstore had more than 10 million downloads.
However, there are also fears of grand "Lord." The Dangdang that Li Guoqing presided over by “E-commerce mouth†began to come in.
As a leader in the book B2C market, Dangdang’s resources in upstream publishing and book sales channels are considered the closest to the Amazon model. Two years ago, the outside world had always believed that it would enter this field. However, it was very cautious at first.
In 2009, Li Guoqing told the reporter that when he talked about the concept of e-books, he said that there was not much enthusiasm, and even said that he would not be involved in the e-book market. However, early last year, Dangdang set up an e-book strategic planning organization, which officially revealed its intention to enter the e-book market on the eve of the IPO at the end of the year. In recent days, the e-book business has been listed as one of the six major business divisions in the Dangdang Business Structure Adjustment Program.
Li Guoqing hesitated for two years, probably looking for differentiation. Compared to Shanda, Dangdang is currently focusing more on the role of content channels in order not to touch the interests of the traditional publishing industry. The Dangdang e-book division’s internal conference last month established a plan for the near future. The e-book city of Dangdang will be launched in September, and will also produce an independent reader. Li Guoqing revealed that the price will reach 299 yuan. Dangdang.com's vice president and e-book business leader Yi Wenfei said that the current progress of Book City R&D is being stepped up.
Compared to Shanda and Dangdang’s vertical integration, Hanwang has some anxiety. Facing the hardware terminal as a rival of cabbage, it is facing a way out.
Since last year, Hanwang started building its own bookstore, but so far it has had little success. Insiders said with emotion that this is not the advantage of Hanwang. In fact, as early as five years ago, Hanwang had proposed internal service or Internet transformation through business expansion or foreign investment, but it has never been implemented.
Far from saving water near fire, Hanwang is seeking cooperation in the industrial chain. Recently, it has continuously cooperated with Shanda Literature and Dangdang. However, competitive cooperation makes it difficult to look good.
The cooperation between Hanwang and Dangdang may be difficult to bear fruit. Informed sources said that there were major differences between the parties in the cooperation negotiations. Dangdang hoped that Hanwang would supply its OEM hardware with two LOGOs on the product and be bundled with the contents, but the price of 299 yuan put it embarrassed by the Hanwang. Because this price line can only be done by the cottage factory, and more than 20 dollars / piece of defective screen, and do not seek profits to be able to do, Han Wang obviously can not accept. Sources said that negotiations between the two sides have still not broken the deadlock.
The cooperation with Shanda is similar to that of thunder and rain. Since 2009, Shanda Literature and Hanwang have been trying to establish a joint venture company, but they have no fruit because of their reluctance to give up their controlling position.
“It is obviously not appropriate to use the Hanwang as the benchmark for the domestic e-book industry.†Li Yi believes that the ideal benchmark is for the Hanwang and powerful content to reach in-depth cooperation and combine into an “Amazon-like modelâ€. However, Hanwang or other end-users need to slacken their hardware scale growth.
It seems that this is like the logic of having a chicken or egg first, but before the role of the industry chain is clear, the exploration of the Hanwang will probably pay a price.
The price cuts will drastically reduce hardware manufacturing profits, and the discourse power of the content operation link will be highlighted. The vertical integration effect will attract players.
Price reduction game This year, the earliest announced e-book price reduction was Hanwang and Patriot. At the end of April at the e-book summit in Yangzhou, the two companies stated for the first time that the reasonable price of the mainstream 6-inch e-books should be around 500 yuan, so as to increase volume.
The representative of Shengda’s Shell Electronics was silently present. In the end, the first to kill the price below 500 yuan instead of them. Last week, Shanda announced that its 6-inch e-book price was adjusted from 998 yuan to 499 yuan, and then launched the same amount of content-giving terminal. Hanwang relapsed.
E-books may have early warning. At the end of April, Liu Sicheng, chairman of the major EINK screen supplier, revealed to this newspaper that capacity will be tripled this year, and shipments will be mentioned from 30 million last year to 30 million. The screen and chipset integration plans initiated by Yuantai and Freescale began mass production, which will drive down costs.
Mainland supporting companies are also driving down parts costs. After the shipment of EINK driver chip makers, Wisdom has forced EPSON to reduce from $6/piece to $3/piece within one year. At the same time, mainland China's EINK screen manufacturer Guangzhou Ao Yi also has mass production conditions.
However, the price reduction actions of the Hanwangs may present inventory risks. Fan Daxin CEO Cao Kanyu said that for months, end-users are actively digesting inventory.
The newspaper was informed that Shanda’s current sales promotion is the inventory of the previous foundry by Inventec. The number is small, less than 20,000 units, there is no inventory pressure, and the price of 499 yuan is equal to the market promotion. Shell insiders said that the inventory was gone soon.
This allows Grand Free to adjust the strategy. It has already stopped the Inventec foundry agreement, and now Guojie Hui, the new CEO of Husk Electronics, is looking at new foundries. It is said that Guo Zhaohui made a military warrant to Chen Tianqiao and said that the sales volume of the Bambook e-book series will be expanded to one million units within one year. It seems that the electronic movement of the shells must be dense.
This will make the lead Hanwang extremely uncomfortable. In mid-May, Hanwang reduced the price of some e-books by 15% to 40%, and some products were sold at a loss. The reporter found that the lowest price of Hanwang's products after the price adjustment is 599 yuan, but only 5 inches. Before the grand offensive, there was almost no effect.
Hanwang insiders acknowledge that price is a problem. Last year, Hanwang strengthened its spare parts resources and “attacked†its opponents. It had accumulated a large number of screens. It was not expected that the gift market had shrunk severely. The personal consumption market was again hit by the iPad. Shipments did not reach expectations and inventory levels rose.
At present, Hanwang is still holding hundreds of thousands of stocks on hand, and the original purchase price of more than 40 US dollars per piece has now dropped to 30 US dollars per piece, resulting in heavy losses. A rival executive revealed that the Hanwang had offered 8 to 12 million U.S. dollars in price protection compensation in May but was rejected.
Everyone learns about Amazon but the profit changes of the e-reading industry chain still encourages people to come and go.
"The development of the e-book industry has only just begun." Li Yi of the China Mobile Internet Industry Alliance said that it seems that the role of players in the domestic e-reading industry has not yet been fully established.
The grand nature of repeated price wars is a representative of vertical layout. Its overall advantages in publishing, original content, and service platforms are comparable to non-Hanwang rivals. Although the latter also established a content service platform, it is still more like hardware than Shanda.
Shanda Online CEO Wang Jingying had previously claimed that the Shanda e-book itself could not be profitable, but more than just nurturing the market and incubating the "cloud bookstore." During the price reduction period, Shanda Literature announced that it had lost no time and announced that the bookstore had more than 10 million downloads.
However, there are also fears of grand "Lord." The Dangdang that Li Guoqing presided over by “E-commerce mouth†began to come in.
As a leader in the book B2C market, Dangdang’s resources in upstream publishing and book sales channels are considered the closest to the Amazon model. Two years ago, the outside world had always believed that it would enter this field. However, it was very cautious at first.
In 2009, Li Guoqing told the reporter that when he talked about the concept of e-books, he said that there was not much enthusiasm, and even said that he would not be involved in the e-book market. However, early last year, Dangdang set up an e-book strategic planning organization, which officially revealed its intention to enter the e-book market on the eve of the IPO at the end of the year. In recent days, the e-book business has been listed as one of the six major business divisions in the Dangdang Business Structure Adjustment Program.
Li Guoqing hesitated for two years, probably looking for differentiation. Compared to Shanda, Dangdang is currently focusing more on the role of content channels in order not to touch the interests of the traditional publishing industry. The Dangdang e-book division’s internal conference last month established a plan for the near future. The e-book city of Dangdang will be launched in September, and will also produce an independent reader. Li Guoqing revealed that the price will reach 299 yuan. Dangdang.com's vice president and e-book business leader Yi Wenfei said that the current progress of Book City R&D is being stepped up.
Compared to Shanda and Dangdang’s vertical integration, Hanwang has some anxiety. Facing the hardware terminal as a rival of cabbage, it is facing a way out.
Since last year, Hanwang started building its own bookstore, but so far it has had little success. Insiders said with emotion that this is not the advantage of Hanwang. In fact, as early as five years ago, Hanwang had proposed internal service or Internet transformation through business expansion or foreign investment, but it has never been implemented.
Far from saving water near fire, Hanwang is seeking cooperation in the industrial chain. Recently, it has continuously cooperated with Shanda Literature and Dangdang. However, competitive cooperation makes it difficult to look good.
The cooperation between Hanwang and Dangdang may be difficult to bear fruit. Informed sources said that there were major differences between the parties in the cooperation negotiations. Dangdang hoped that Hanwang would supply its OEM hardware with two LOGOs on the product and be bundled with the contents, but the price of 299 yuan put it embarrassed by the Hanwang. Because this price line can only be done by the cottage factory, and more than 20 dollars / piece of defective screen, and do not seek profits to be able to do, Han Wang obviously can not accept. Sources said that negotiations between the two sides have still not broken the deadlock.
The cooperation with Shanda is similar to that of thunder and rain. Since 2009, Shanda Literature and Hanwang have been trying to establish a joint venture company, but they have no fruit because of their reluctance to give up their controlling position.
“It is obviously not appropriate to use the Hanwang as the benchmark for the domestic e-book industry.†Li Yi believes that the ideal benchmark is for the Hanwang and powerful content to reach in-depth cooperation and combine into an “Amazon-like modelâ€. However, Hanwang or other end-users need to slacken their hardware scale growth.
It seems that this is like the logic of having a chicken or egg first, but before the role of the industry chain is clear, the exploration of the Hanwang will probably pay a price.
Guangpu Electronics Co., Ltd , http://www.fjledlight.com