A small loss: a big tree net an electric quotient failure story for college students ' market

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"Guide" the first domestic dedicated to the university campus market of the electricity business site, in September 2011 on the line, the end of December 2012 its Sina official microblogging stop update.

At the end of May 2013, Shangxiang, a senior electrical business person, said on its microblog that the tree network was close to closure. Tree Network official customer service in the Dark Horse consulting, said the company is in the adjustment. and the tree net left staff to I net revealed, Big Tree Network has only, general manager Wang Xiaodong suspected has resigned to join a newly established company.

It is understood that the tree network by the Suzhou Wisdom Still Information Technology Co., Ltd. (hereinafter referred to as "Suzhou Wisdom") operation, the real investors behind the Jiangsu and group.

Wang Xiaodong (Data map)

The data show that the group has a number of subsidiaries including Suzhou Wisdom, formerly known as "Changshu New Century Footwear Co., Ltd.", founded in 2000, is a promotion and sales Anta, Li Ning, Nike and other domestic and foreign first-line sports brand products as the core business, set chain operating retail, quasi-financial services, commercial real Estate , participation in investment, information technology, catering, audio-visual entertainment, hotels and other diversified projects in one group of enterprises.

Said the big tree network Deep Throat employees, and the company in Jiangsu Province is the absolute No.1 in the footwear dealers, sports brand online sales king. In this surging electric business era, the offline business do a good job to extend the line, do not want to miss the opportunity. The tree net is born under this background and thinking. 1983 Health, and the Group senior management of the youngest deputy general manager Wang Xiaodong was entrusted with the task of the Electrical Business Project "Big Tree Network" operation.

The idea of the big tree net is very clear. China and the group are best at the business is Anta, Li Ning, Nike and other sports brand products sales, and consumption of such products are the main students and other young groups, then to lock the consumer group, relying on the huge online sales network, around the "college students" market to do online business, starting from college students shopping, extended to social, job search, Entrepreneurship and other services, as the Chinese university students shopping, making friends, the first platform for growth.

Wang Xiaodong was entrusted with the task of the electrical business, the formation of a team, to find two important characters: Cui Vice President and Shi Vice president. The former is to do some English learning newspaper Distribution Agent started, familiar with the National University Market channel operation; the latter has done eight years of shoe distribution, can get a full range of various sources. A channel, a source, plus the back and the group of strong funds, Wang Xiaodong team is not simple.

They soon built pyramid-style offline sales teams: In the form of a branch of the country will be divided into 14 large districts, a large area of radiation 2 to 3 provinces, provinces and cities, the city division manager, tube to each school, the school to develop students part-time to do campus agent, basically the national colleges and universities are covered by the completion, including Xinjiang, Tibet and other fields have developed campus agents.

April 2011, The Big Tree network began to open the experience shop around the university, to September, the number of experience shop reached about 10.

At the beginning of August 2011, the tree network called all branches in the company headquarters (Suzhou Changshu) opened a national mobilization conference, the content is about the big tree net on the line, the staff morale is high. But by the middle of August, the tree network was not online. Continue to wait until August 20, the end of August, the tree network is still not online, at this time has recruited a lot of people, the site has been delayed online, has led to a little slack team.

At the beginning of September, the website finally on-line, the system is not finished, the mall did not build good, on a special selling area, mainly selling sports shoes. Because there is accumulation and the promotion of the team under the line, quickly sold in full swing, the staff described "like a good buy, but better than the good music business". But while a lot of orders are pouring in, problems are emerging. Website system is often hung up, payment, order modification problems, the most deadly or inventory synchronization problem, the previous page and backstage sales data mismatch, resulting in the result is: more sales, no goods. The problem was not resolved until 2 months later. However, a backlog of orders in September was not processed until the first January 2.

Is the company's technical strength insufficient? On the contrary, deep throat staff said that at the Changshu head office, a total of only 100 supposedly people, the technology accounted for seventy or eighty people. Suzhou side, there is a SNS community team, also raised a dozen people. The salaries of these technical teams add up to 1 million a month. In addition, when the website is not online, it cost 2.4 million yuan to buy 4 top-level servers.

Deep Throat employees believe that these costs, combined with the huge sales teams of the 14 branches mentioned earlier (fixed wages for the first two months, then fragmented, based on merit), "each branch needs to be equipped with hardware, travel needs reimbursement, utilities to reimburse, campus needs to send flyers, posters, Need a variety of logistics, cost plus together, very large ", the tree network was dragged into a capital black hole in the beginning.

Taobao launched the annual "Double 11" into the electric Shanghuan Purchase festival, and November 11, 2011 is a special number, almost all the electricity Shangdou advance the promotional plan, tree nets in late October to do activities. After Baidu promotion, micro-video virus marketing, Big Tree network traffic growth of five or six times times, new users and orders have a lot of growth.

After this battle, the tree network management began to attach importance to operations, and then to the direction of operation reversed. December, the tree network set up operations center, the customer service, logistics, media, business and so on all the whole into the Operation center. By January 2012, The Big tree net specialized from Xun net high salary to dig a few people, one is still Xun's top. At the end of January is the Spring Festival, after the Spring Festival, these several high pay to dig the electrical business talent, seat has not sat warm, was informed of layoffs.

"This thing is not kind, after all, people have just come here soon." But the tree network had to do so, the reason is very simple, the money has been burned tens of millions, after all, the big tree net and group investment in a subsidiary, in the money, will be invested in the parent company moderation. Not and the group has no money, but this electrical business project, so that the real big Boss can not see the hope-you this person is not, the daily cost is too big, cannot support. The Deep Throat staff explains.

According to the Deep Throat staff analysis, perhaps more than 10 million for many internet-born electric business owner is nothing, but in and is the traditional trade origin, or customary in accordance with the traditional business perspective, spend a penny to do a matter, is not accustomed to the Internet to burn money way.

At this point, the big Tree network for the comprehensive Platform for college students end of the dream, her four sections: Mall-Tree Mall is dedicated to the market for college students Online mall, making friends--the tree network SNS Interactive platform root tie campus life, so that college students convenient to find friends, find a fellow; Human resources-free for students to provide professional assessment, career planning, job search and other services; Flea Market-college students are free to reuse and redistribute all kinds of daily necessities that they do not need. Only online on the mall.

Since March or April 2012, the tree net should have been cut almost, the remaining main staff transformation to do distribution, relying on the resources of the group, a more than 10 brand, the tree network to become the middleman of the goods, Taobao many businesses are from the Big Tree Network, the road has changed the direction of the electrical business.

Before and after September 2012, the Big Tree Net also on-line a new project, takes the Hangzhou Xiasha University City as the pilot, does the campus to sell, wants to use this as the cut-in point to rekindle the university student comprehensive platform electric business dream. Try for six months, no loss how much also did not earn how much, this matter also put down.

Deep Throat staff summed up the reasons for the failure of the tree network, there are several:

First, the market forecasts are too idealistic. At that time thought is, each university student must wear the sports shoes, the national more than 30 million university student, as long as has 10%, even if 1% person, buys the sports shoes on above, this market is very big. Actually this is not a problem, but you have to think, to cover to 30 million, you have to spend a lot of operating costs? This is a very large number.

Second, the traditional enterprises to do electricity business, some ideas are difficult to change. For example, the same is done marketing, traditional enterprises and the Internet assessment standards are certainly different. In the Internet, a lot of things will be measured by the effect, but the traditional companies will be measured by sales, the concept or the old idea, is to spend a penny to do one thing, but not on the internet to do so, especially such as the size of the plate is not such a project. Another logical mistake is that the tree network is trying to pull the market out of the line, which is a very serious problem, the conversion is very low and takes time.

The third, internal reason, too quick, too fast, the plate is too big. If the initial search for one or two cities to start the pilot, slowly to do, the effect may be better. But the plates all of a sudden spread to the country, the cost is huge. At that time, there is a cost of materials, each branch needs to be equipped with hardware, travel needs reimbursement, water and electricity needs reimbursement, campus need to send leaflets, posters, need a variety of logistics, cost plus together, very large, all of a sudden spent millions of is nothing.

Its four, light operation, heavy technology, which is very serious. The Big tree net still does the traditional enterprise's thinking, oneself make out of the things themselves more assured, in fact, the technology of the electrical business has been very mature, may spend a 300,000, there is a company packaged to you do, you do not have to spend so many people to maintain, directly responsible for the operation on the line. From the ratio of the resources of the tree network, about 40% used in the development above, 30% with online, 15% used in internal consumption, 5% with online, how could not die!

Finally there may be a university student market positioning problem-to do college students business, can only do fast business, such as takeout, you want to cultivate a loyal customer in college students is very unrealistic, may not be able to cultivate a freshman, sophomore training succeeded, but a junior, senior and gone, mobility is too big, one stubble after another, You will struggle to get tired every batch of students.