Study On Decision-making Of Diversification For Internet Retailers

With the development of Internet technology, the number of Internet users growing, the network has become an important part of our lives. Because of its fast, convenient, no time limit , so it is more and more accepted by consumers. Online retailer started in 1999,Since 2011, it has maintained a rapid pace of development. The maturing of the online retailing, the online retailer develop diversification of the business development.Diversification strategy has been widely adopted by the online retailers in recent years. But the the results of the implementation were significantly different. If you want fully enjoy the benefits of diversification, you have to pay attention to the related issues during the diversification process. This paper consider the diversity theory as the guide, based on the date of online survey of 503 online retailers which began their business with cosmetics industry and 581 apparel stores in Taobao.com, make a study of the degree of diversification, type of diversification, opportunity of diversification and product decision of diversification of the C2C online retailer. compare the two sectors of the similarities and differences. This article will focus on the the degree of diversification, the type of diversification, the opportunity of diversification and the product decision of diversification of some Taobao shops which use the cosmetic and apparel industry as their initial business,. Namely, the professional development of online retailers is the foundation for future work on diversity; Enterprises with the enough resources and strength select into the diversification; Mature enterprises to develop diversification strategies; Maximize the customer value to carry out diversification.The study found that the online shops should operate on the professional development road based on enhance their core competitiveness. And then choose a wide range of business areas to operate at a right time, before they get into the unrelated diversification area which fit to the corresponding core competence, they should gain lots experiences of related diversification.