Research On JMEI’s Profit Model

With the rapid development of domestic e-commerce,the different e-commerce business models arose,vertical B2 C business model is one of them. Vertical B2 C business is to build their own procurement channels, then sale products by themselves. Due to the vertical e-commerce need to purchase goods for storage and sales,so the scale is restricted. Many vertical e-commerce transformed into platform e-business type under the cruel competition. JD once sold electrical appliances,now it became the second largest platform e-business type. Dang Dang was once known as the bookstore online,now it had become the comprehensive platform which sold many goods even the cosmetics. Now after the “winter”of e-business,vertical e-commerce has few survive. As a result,the vertical e-business model has been questioned, that is sustainable or not?JMEI was founded in 2010,it was a selling cosmetics enterprise of group purchase model, then it changed into vertical e-business model,which said to create a professional service group in cosmetics industry. JMEI has created a significant performance since it was set up,which became another superior e-business star after the VIPS. In the year of 2014,JMEI was listed on The NYSE in the United States,which become the only listed enterprise in the NYSE that seven quarters consecutive profitable before other e-business enterprises. Even after the list it has always maintained a outstanding performance.Through collecting JMEI’s information and financial report,we analyzed the internal and external environment in the process of its development,the SWOT analysis method is used to compare the profit model with the same industry vertical B2 C enterprises and the whole B2 C industry.We find that JMEI has superior profit pattern advantages like low-cost access to the user,the supplier’s bargaining ability is strong,the disadvantages are the relatively high proportion of operating costs and the customer price is lower than others,on the other hand cross-border treat is still chance of big promotion,and in rural development has a great threat. So JMEI is suitable for follow its characteristics and personalized service to win the market.