1st Close Wave of Electronic Gadget Company in China, Hootoo Outlives

According to the date providing from Shenzhen E-commerce

Industry Association, by the end of last year, there are over

3,700 electronic and gadget webshops registered in Shenzhen,

China, while near 500 e-commerce companies bankrupted or

restructured last year, in which Hootoo.com survives.

The general Secretary of Shenzhen e-commerce industry

association, Miss Gao said there is only 20% e-commerce

companies can survive in face of this closing wave recently

years, that’s the case with the traditional business. Specifically,

30% e-commerce company closed within one year after

registered, while 60% would die within three years, in which

Hootoo.com (http://www.hootoo.com/electronics-gadgets-c-

193.html ), who is one of the professional suppliers of retail

electronics, survives.

The reason of this closing wave results from traditional

businesses which are increasing to strengthen the capability of

operating internet business. Shen Ren, who is the Godfather of

Chinese Internet Marketing, said China has turn to scale

application stage from basic construction of network, platform

and tools and reputation accumulation. Who should apply, who

should benefit first. From 2009 to 2013, small and medium

enterprises have the best chance to open the e-commerce

windows to strengthen them. While as long as some giants who

occupy advantageous brands, capitals, talents and channels

dive into the river of internet business, the chance windows of

SMEs would close one by one. Therefore, if the traditional

businesses still remain the present situation in this emergency

gateway to operate network transformation, it’s doomed to be

defeated by emerging network enterprises. The core of global

business competition lies in network not office in the future ten

years, which are the most important symbol and capital for

global enterprises.

There are at least three problems need to solve first for SMEs

to survive from this closing wave.

First of all, Extreme Lack of Talents

It’s rare for some comprehensive university to get rid of the

recruitment of Business English Major Students nowadays.

While there are rare talents both mastering business and

electronics. How to calculate suitable talents to meet the

demand of e-commerce development becomes a vital issue.

Take the Hootoo.com for instance. As one of medium

enterprises, who emphasizes in electronics and gadgets since

2001, in order to avoid this closing wave, the Human Resource

Department expands to attract much more excellent talents to

strengthen the Hootoo sales team, which is composed of 20-30

year-old dynamic and talent team leader by Janice, the Director

of Sale Department. What’s more, undergraduate degree is the

minimum.

Secondly, Stereotype Attitude to SEO and SEM

In the past time, it’s really possible for some SMEs to raise page

rank to operate e-commerce business as long as post some ads

in search engine like Baidu.com or Google.com. While once the

results are unexpected, they would back to traditional market

negatively. In order to solve this problem, like hootoo.com,

SMEs can pay more attention to develop third-part and

systematic E-training system which is direct to Entrepreneurs

and marketing director to seize the commanding heights of

third-party training.

Thirdly, Move the Internet “Middle Men”

As the irresistible trend of RMA appreciation and raising cost of

human resource in China, it’s necessary for domestic

enterprises to move the internet middle men to communicate

with foreign customers directly, build self own internet sales

platform like hootoo.com to make favorable profits.