Opportunities and challenges in traditional industries e business innovation model in paper industry

in many traditional industries, industry overcapacity, backward is not rare, many of the industry’s development has encountered the bottleneck of their own, and the most in need of a new model to provide solutions for these traditional industries. However, the current e-commerce is becoming more and more advanced, and how these new types of e-commerce combine with the traditional industry has become a problem that all industries are considering. The development of these industries contribute in a certain extent, e-commerce model adhering to the "saving is creating", how to more efficient? One of the links is to reduce the circulation, to make products with minimum link, minimum transportation cost to the end user. But also faced with a problem, that is, scattered downstream demand, procurement of small quantities, unlike big agents have the strength, no bargaining power, but at this time, the new e-commerce model – Procurement alliance. Similar to other sectors of the group purchase, small set of orders in the lower reaches of the formation of large orders, improve bargaining power, reduce the circulation of middlemen, purchasing alliance is a product of the time to be born, is committed to the integration of paper industry and improved to make the largest contribution.

but for the traditional paper industry is still facing a problem, that is for paper is a big deal, a large amount of the transaction, and the paper is not standardized products, for small and medium enterprises, each product will have color and thickness difference, so every time in the before ordering to see samples, so as to decide whether to order. For the paper industry, 33% of people are occasionally online, and for this industry, the acceptance of e-commerce is also very difficult. Therefore, only the use of "online and offline combination" of the operation will be successful, online as a product display window, offline entity transactions.

purchasing alliance model:

Procurement Alliance is similar to group buying, small orders converge into a single large, improve bargaining power, so that each participant in the industry to get the lowest price required products.

1: buyer: the same product is available at a cheaper price.

2, paper mill: batch production, reduce production costs and inventory risk.

3, order next month order: advance payment, lock price, advance purchase price will be more preferential. When the price rises, the purchasing price remains unchanged and the purchasing price is also lowered as the price goes down.

online trading up, trading guarantee becomes a big problem, the use of third party organization, for bulk products, the guarantee fee is more expensive, but for the current level of the paper industry, difficult to sell, profit, fear is difficult to use the third party guarantee, so it also hindered the development of electronic commerce in the the traditional paper industry, however, each paper industry people in the efforts to explore, how to make the traditional paper industry wings. Therefore, we are committed to solving the following 4 problems: standardization of products, settlement of logistics, large quantities