Analysis of the road of e-commerce in the steel industry

In the past ten years, the transaction volume of China's e-commerce market has been stable and growing rapidly. In 2007, the scale of the e-commerce market exceeded 1.7 trillion yuan. The promulgation of the national “Eleventh Five-Year” e-commerce development plan in 2007 marked the formation of the government's overall promotion of e-commerce. The application of e-commerce in enterprises and the promotion of economic and social development are increasingly obvious.

The B2B business model is characterized by a large amount of single transactions, a higher demand for quick withdrawal of funds, and a strong focus on the security of large funds. Most domestic entities usually adopt face-to-face negotiations and transactions in business activities. The two sides establish cooperative relationships on the basis of in-depth understanding; while B2B e-commerce promotes inter-enterprise transactions through the Internet, and enterprises enter virtual network platforms. Issues such as the security of funds, qualifications, and credit ratings have gradually surfaced. Learning C2C's secured transaction model will be one of the solutions to the problem. The introduction of a third-party payment guarantee mechanism will fundamentally solve the problem of B2B e-commerce's fund security and information accuracy, which is an effective way for B2B e-commerce to get out of the dilemma.

The domestic integrated online B2B market structure has been formed, and the vertical online B2B market has not yet formed a specific situation. At the same time, vertical online B2B will be more suitable for serving large-scale trading markets due to the deepening and specialization features of its services, so it is promoting building materials and chemicals. While the industries such as raw materials are developing at a high speed, enterprises with a certain scale will also appear in these market segments. Exploring the vertical online B2B market is also the inevitable direction of many vertical portals. The vertical online B2B is more in line with the professional requirements of the industry B2B. Compared with the comprehensive online B2B website, the vertical online B2B pays more attention to the professional customer group, provides more professional products and services, and also understands the needs of customers in the industry chain. At the same time, the vertical B2B website also has a larger scale than the comprehensive B2B website. Small, it is easier to improve their own services. This laid a good foundation for the deepening of the industry.

The Chinese government is also paying more and more attention to the development of e-commerce, and the environment in logistics distribution, credit certification, electronic payment, laws and regulations is becoming more and more perfect. In order to promote the development of domestic B2B e-commerce, the China International Electronic Commerce Center (CIECC) of the Ministry of Commerce has developed and operated a third-party payment guarantee trading platform---Guofubao, which is also the only state-owned and ministerial-level payment platform in China, capable of trading funds for customers. Provide adequate security. The main customer groups of its payment system are the service industry support platform and the vertical online B2B platform.

In April 2010, Guofubao reached a strategic cooperation with China Steel Spot Network, which created a new trading model for domestic vertical online B2B websites, and successfully introduced B2B guarantee payments into the e-commerce model of vertical online B2B websites.

China Steel Spot Network was established in May 2006. Changsha Steel is responsible for investment and operation of Network Technology Co., Ltd. In August of the same year, the website was officially launched. It is positioned as a comprehensive platform for the national steel industry with spot resources as the mainstay and information as the supplement.

China Steel Spot Network has carried out a series of bold explorations and breakthroughs in steel e-commerce. In May 2007, China Steel Spot Network pioneered the steel search marketing model, launched the steel information database, steel resource library and steel search alliance; A one-stop publishing of merchants, industry information alliances that can be queried by hundreds of sites. After four years of development, the website has nearly 90,000 registered users, and the website operation mode and style are deeply loved by users.

In 2009, the company established an online member credit system and cut into spot transactions. In April 2010, it launched a steel spot supermarket with Guofubao. The supermarket was the first steel spot trading system to introduce third-party payment in China, and it was the first to realize steel. The smooth transition of traditional trading to online spot trading. The supermarket successfully entered the trial operation in July 2010; with the launch of the steel spot supermarket, China's steel spot network entered a period of rapid development, and its comprehensive strength ranked among the top three in the country.

As the impact of the financial crisis on the entity is still in the process of recovery, B2B e-commerce, as a new growth point and growth driver of China's economy, is becoming a relatively low transaction cost, a simplified trade process and huge profits. Another hot spot in the national economy has shown great vitality. The vertical online B2B website will lead a new wave of e-commerce with its accurate business positioning, professional industry knowledge, perfect customer service and low-carbon development trading mode.

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