It's only a matter of time before store 1th is captured by capital in two years.

Shop number 1th founder in the start-up two years on the transfer of absolute control, 1th stores did not become the next Jingdong.　　The electric-business bubble burst at the same time as the halo of the world's top 500 vice presidents. The 1th store, founded by Gege, is a "fast fish" for the industry, and it grows fast, but does not continue to swim alone.　　This is not accidental in the bubble of E-commerce. Low-ebb entrepreneurship is easy to create miracles.　　Store No. 1th was officially launched in July 2008, but only 2 years later, Ping An group, the latter occupies 80% of the shares, and put ping an drug network into the 1th shop, as part of the network supermarket.　　Whether you believe it or not, the truth is there, peace has become the real owner of Shop No. 1th. But it will be abandoned by the owner. May 18 This year, Gege in Beijing announced the cooperation between store No. 1th and Wal-Mart. Just a few days before the conference, Liu revealed that the negotiations between the BoE and Wal-Mart failed because the other party demanded holding.　　Store 1th claims that Wal-Mart is only a small amount of capital, the two sides are strategic cooperation.　　According to the industry, Wal-Mart never do not have a holding rights of the acquisition, its normal path should be: Take the peace of the plate, gradually holding determined to do "online Wal-Mart" Shop No. 1th ... Gege to the "entrepreneur" reporter first resolutely denied. "I'm not leaving, this business is part of my life." It can be said that, throughout the negotiations, the contract, Wal-Mart has never proposed to hold, to buy the total number 1th stores. This is an opportunity, not that you want to work with Wal-Mart to work with Wal-Mart. He went on, and said, "This world is really going to turn away from everyone ... I think the most important thing to do, if you take up a lot of shares, to do a small business is not interesting. Shop No. 1th or to do a great career, in this middle I am an engine, the staff also believe that the vision of the enterprise, I lead everyone to go forward, do not know how far to go, until I do not move, another person continue to push the enterprise forward. He seems to have figured out a retreat. "If I don't deserve to be in this position, if there is a better person, a more visionary, a leader, a better person, he can lead the business and make it go faster and better ... Let him take care of it, I will be more assured.　　"For Gege and partner Liu Junling, the process of going from a multinational professional manager to an independent entrepreneur to a professional manager, it seems like it's back to the point." "Steel Harp" gege is not tall, the skin is a bit dark, look very bright eyes, it does not look like a 50-year-old person. The people around him called him "just".　　Just like music, playing golf, is very professional bridge hand, more than 40-year-old special to learn the piano, it is said to play well. Shop No. 1th became a "steel harp" and stopped short. "I am Gemini and have a double personality.　　"Just say it yourself. I just said that I am half a scholar and half an entrepreneur. He has a very strong professor, attention to detail, a little bit rigid. "In fact, Gege is very meaningful, just fierce to see." "An employee at shop 1th said,"He is the Chairman of the board and has a daily user experience. He is more pragmatic, not high-profile, also do not shout slogans.　　"He often responds to user questions personally, looks at the user experience data every day, writes it to the office blackboard, hooks up staff salaries (including backstage administrators) and user experience, and invites third-party agencies to do the reviews. He has just been a professor in the United States for 15 years, mainly teaching management science. He also created the industry, in the home of the basement of a set of aviation software, the first set sold 1 million dollars, and then sold to a set of tens of millions of dollars. He also spent a year at Amazon headquarters in charge of supply chain management. 2006, has just been dug by Dell to do the global vice president. He met Liu Majestic, the president of Dell China.　　The two left Dell at the same time in 2008, creating an online supermarket store No. 1th. But the beginning of entrepreneurship is always very confusing. The first plan for shop No. 1th was not a network supermarket. They have considered vertical e-commerce, such as computer-related, and both have industry backgrounds and supply chain advantages.　　The background of the world's top 500 executives has also attracted many followers to join shop number 1th. According to Gege's idea, from the subdivision field into the electric business platform to a certain extent will encounter the bottleneck of expansion, such as background technology, warehousing, logistics and so on, and if the beginning of a comprehensive class, it will have scalability. They decided to make a all-inclusive "online supermarket" directly from the difficult point.　　The difficulty lies in how to open up the situation. "What store?" Shop number 1th? Which number 1th? "At first, Zhang often encountered such inquiries. He has worked in shop 1th for 3 years. At that time they wanted to do catalog sales, but there was no sample book, Gege's wife came up with a way: to put dozens of pieces of white paper together, looks like a book. He took this thing to tell the supplier: This is our catalog sales brochure, in the future your product will be printed on this, through the 1th Shop network platform sales.　　The supplier rolled his eyes and ignored him.　　However, Zhang was the first supplier, a floor of the building materials manufacturers promised to 1th stores 30,000, to help him share the cost of the catalog and shop 1th sell floors. Yes, store 1th sells floors. There were ten categories: in addition to food and beverage, kitchen and bathroom cleaning, there are maternal and infant toys, electrical appliances, home and so on. It was a difficult journey. The early 1th shop to take a variety of business, as long as there is business to do. There is a GF bank to staff welfare, with a beautiful basket to do packaging, but also posted on the "Fu" word, the basket is afraid of pressure, the original car can be loaded with 500 copies, can only install 300. It looks more like a gift company, a little far from the online supermarket that "changes people's lifestyles." A former employee said, "Before 2009, 1th stores only 900,000 of the turnover in one months, and most of the group purchase results." "In the first few fortunes. "We were on line in July 2008, followed by the financial crisis in September and October, when a lot of ideas didn't happen," he said. The first thing to think about is how to survive. "At the beginning of the 1th shop line of the way to do online business, marketing means backward, customer conversion rate is too low, online one weeks have noOrder。 Gege very anxious, to Liu Junling call: "No orders ah, are our own colleagues under the order." Is our business model wrong? "The change took place a few months later.　　Several executives entered the 1th shop to adjust the strategy, the contraction front, and eventually locked the fast-moving consumer goods, playing the "online Wal-Mart" banner. According to Gege's expectations, the upfront large capital investment, do large-scale, and constantly spread the background technology, operation and logistics costs, and ultimately flat, and then profitable, this break-even point in the revenue of 6 billion yuan.　　However, around October 2009, it was the saddest time for store 1th: the First Investment (RMB fund) was spent and the second investment had not come in. Without money, we must rely on dreams. But the halo of two of the top 500 executives in the world has quickly dimmed, and the management of the two has been a lot of complaints. A former employee said, "What we have just asked is very real: how big is the sales?" Not too much attention to culture, rarely talk about the future of the vision and things like that. Staff 6:30 off work, if you leave after work, he won't say you, but he thinks you are not dedicated. There are many reasons to open you, not dedicated is one of them. "At that time, shop 1th had more than 100 employees, and then to more than 60." In difficult times, the company cut off a team of 28 people in one day. "Cut off so many people in one day, both of them do not come forward to explain, let personnel to resolve." "There's a lot of things like that. The former employee said, "On the Mid-Autumn Festival, the company gives everyone a 50-dollar shopping card to buy their own company's mooncakes." One year the Spring Festival a penny benefits are not, Liu Majestic wrote a very hypocritical letter to employees said difficult ah what. You think, then only 50 employees, one person hair 50 pieces only 2500 pieces. They play golf every day, less golf staff money is not it? This is against our values.　　"There is a huge flow of talent in the electric business, but it's obviously bigger in shop 1th, where the middle-class staff was almost entirely changed." Their entrepreneurial skills are also being questioned. "You see Gege's business card on Amazon Global vice president, Dell Global vice president, but he is only a supply chain, in fact, not familiar with the brand, the retail." Liu Majestic originally in Dell's main job is government PR. No successful experience can be replicated, we are actually stones. But what is their strength? Is 500 strong management, even more than Liu this gang strong.　　"said a start-up veteran at shop 1th.　　Store No. 1th is not jingdong: This is a game of capital Games 1th is not jingdong, it is only a Yangtze River Delta region, an online retailer, last year, sales of more than 800 million yuan, compared to the Beijing east of the tens of billions is only a fraction of the size. Gege admits that no one was watching them when they first started a business. One investor said to him: "You are all fit to be professional managers, you will do 10 from 1, but not 1 from 0." "It's really risky," he knows, "not just the payoff, but the bigger risk is a career." My previous experience has been smooth and successful, but store No. 1th hasHuge risk of failure. "He was cautious and was never willing to disclose any data in store No. 1th," he said. "We can't publish too much data because it's not yet time, and store 1th is still losing money," he said. "It is revealed that shop 1th from the establishment to the present three years of sales are: 4 million, 40 million, 805 million, each month is at an average of 28% of the speed of growth, including Jiangsu, Zhejiang and Shanghai sales accounted for 70%." "We can turn two to three times times this year and make a profit in the next two or three years."　　"Gege said.　　But the price behind the growth of store 1th is high. "Wal-Mart's gross margin is only 25%, from the front (sale itself) of only 5-10 points, backstage (rebate, shelves, promotional fees, etc.) has 10-15 points, net profit only 3 points. Shop 1th do is to a profit-making industry deduction.　　"said an analyst in the retail industry. "Shop number 1th is a start-up for FMCG, unlike books and 3C, is not a standardized product, storage and distribution is cumbersome, and each warehouse must have its own procurement to ensure the purchase of the cheapest local goods." A former employee said that if a bucket of oil from Beijing to Guangzhou, the logistics cost of more than from Guangzhou to the United States, China Expressway a year fine 430 billion, equivalent to all medical security money.　　In this case, shop number 1th needs to invest far more money than when and Jingdong. "This cost is far higher than clothing products, ordinary parcels only 2, 3 kg, but 1th stores have 7, 8 kg, big and heavy, each single cost at least 8-12 yuan." "He calculated a sum: At that time, shop 1th customer price is about 150 yuan, there is no margin in the background, only big supplier will give you rebate, front margin 10%, a single at most earn 15, logistics cost to remove 10, the remaining 5 dollars, to cover operating costs, research and development costs, promotion costs are clearly not enough, a mess.　　Shop number 1th is on average a single loss of more than 30 pieces. An industry personage says, the Internet is a network platform, the consumer buys the thing to go to the top three to look for, the small electricity quotient can only do long tail, slowly relies on the difference competition, the big can only depend on the discount, the discount is bleeds the war. Now most Internet companies are in the enclosure to find new customers, but at the same time the market costs are also rapidly increasing, each new customer will spend hundreds of yuan. "How did you get the money?" Very simple, the consumer's money you can not make, the platform class company raises the customer to run, the Logistics party, the media side you cannot make, then you can only take the investor's money. After all, it's a game of capital. Gege often said that E-commerce competition is in fact the background technology competition, customer experience is the competition, the entire supply chain system competition.　　In fact, his heart is the most clear: now is the competition of capital. But the premise of taking money is the customer capacity. It is said that an electric dealer can raise more than 1 million dollars per additional 10,000 consumers.　　So the electric dealers must discount promotion, enclosure to find more consumers, even if the fake also to heap up. Store 1th official news has 8 million members, repeat purchase rate 50-60%。 If the customer unit price 150 yuan, according to each old customer every month to shop 1th to buy a product calculation, its annual sales should be 7.2 billion, instead of 805 million (according to the industry estimates, this figure is also high).　　Obviously, repeat purchase rate has moisture.　　Platform-type electric dealers also have a fatal problem: it has no pricing power (excluding the introduction of its own products), the price of products depends on the cost of purchase, the demand for funds more intense. Of course, "such as jingdong companies do not need to find capital, because all the former invested capital party will actively help it to find the next capital side, otherwise the previous capital party all Changbai cast." "Ping ' an" holding No. 1th store held until 2010, the turnaround came.　　Ping An group invested 200 million yuan, occupies 1th stores 80% equity. Almost, shop number 1th becomes a safe e-commerce platform. Ma has been interested in integrating an information platform to build a healthy industrial chain, in which the construction of the medical Information network is completed by a store.　　At the beginning of 2010, Ping ' an bought the 1th store equity, will become the "peace department", and borrow its drugstore "shell" quickly launched Ping ' an drug network. After talking a lot of VC, Gege seems to have no choice. "It was a compelling decision because store No. 1th was out of money. This is a real problem, all ideals must be based on reality. What can you do when a man's money is all burnt out? If you don't have any more money, you'll be killed by your competitors. "If when this book is 10 Yuan, you ask Liu to sell 15 bucks?" said one insider. Does he have the guts? Gege also, no 1th shop also have no courage to raise prices, so must finance, insist on low prices, continue to burn money.　　"The advantage is that the resources of Ping ' an and store 1th can be docked, for example, the cardholder of ping-an credit card can use points to shop at store 1th, but the disadvantage is obvious: shop 1th lost control. Gege has refused to recognize the passed of controlling power, saying peace is a strategic investor. A person familiar with the situation said, "to find peace at least than VC strong, very simple, Gege also want to work at their own pace, VC besides the money can add what value?" Peace is not necessarily just money, when shop 1th has more than 30% consumers from Ping an employees. Ping An each year to send an employee a 700-dollar welfare card, are designated to shop 1th shopping.　　"When the money is in place, shop 1th begins to expand, sales are rose and employees from hundreds to more than 2000 now." Gege said: "The country also more than 10 electric dealers can get the drug network qualification, very lucky 1th store got." Shop 1th is usually cheaper than pharmacies 5 points above, but now there are two obstacles, first, the market is still early, need to cultivate customers, and the second is to buy medicine online can not use health insurance card. "The drug net installed in shop No. 1th was not as smooth as expected. The general manager, who was dug up from the Golden Elephant Pharmacy Network, also worked for 3 months before leaving the shop No. 1th.　　The person who originally made the drug net then walked 70%-80%.　　Such a situation is far from the big picture of Ping an "triple net in Oneness". "Peace did not get what it wanted, shop 1th so far on itThe main business should not help, a fraction of the main business of peace is much bigger than shop No. 1th.　　"said the insider analysis. As a result, ping an started looking for potential buyers for shop number 1th. Tencent is said to have been one of the best candidates, and Ma also visited the Shanghai headquarters of shop 1th in March 2011 and MA.　　Since April, Tencent and shop 1th have even started to collaborate on group buying and some of its ports.　　But Wal-Mart came in.　　Be "Wal-Mart": Leaving is only a matter of time since the announcement of the partnership with Wal-Mart in May, the fate of store 1th has become a mystery. A pile of media chasing Gege asked: "Ping an holding No. 1th store?" How much does Wal-Mart share? Will the future control store No. 1th? At just the end of the sitting posture, stressed that we do not talk about the specific amount, proportion, etc. He later told the entrepreneur: "At present Wal-Mart has not talked to us about this issue, it is only a small amount of capital, the two sides strategic cooperation." "There is still hope for the cooperation between store 1th and Wal-Mart in the future, but with my knowledge of store 1th, it will be sold to Wal-Mart in the future," the person said. Wal-Mart has historically never done anything to invest in a company as a small shareholder. "Gege realized that" the development of China's e-commerce in such a few years, stand still can, it is difficult to reach a foothold. The whole market can only accommodate so much, the larger the scale, the stronger the bargaining power, the lower the operating cost, the wider the coverage, so the competitiveness is stronger. It would be difficult to continue if (store 1th) did not enter the forward cycle within a few years. "Now is the 1th store vigorously invested in the time: in Wuhan, Chengdu opened a warehouse, will immediately in Xian, Shenyang continue to open, distribution range also to increase more than 20 cities, to allow customers to enjoy the day or the second day service." Early start-up Gege spent a lot of energy and financial resources to do background technology, put a research and development team to Wuhan, helpless financial crisis as a whole removed. Now he rallied, and put a 400-person research and development team to Wuhan.　　He also launched the "Infinity 1th" handheld client, allegedly 30,000 downloads per day. But when Wal-Mart entered the company, the relationship between store 1th and Wal-Mart was subtle, whether it was holding or not.　　In May this year, Wal-Mart expanded its distribution range from Shenzhen to Beijing, and at the end of June announced the establishment of Wal-Mart's global E-commerce China headquarters in Shanghai.　　The trend is not only in the 1th shop to seize the best opportunity, or a few years later, China's internet industry will only have one more warning case.　　After all, the transfer of "absolute control" is a dangerous thing. Gege wrote a micro blog: "Entrepreneurs must have a good mentality to face the challenge." Although we devote ourselves to the cause and hope to make it succeed, we must accept the fact that there must be a lot of ups and downs in the process of entrepreneurship, and it may be successful or fail. Entrepreneurial success is ' weather, geography, people and ' complex, is not an integral, not creative good enough. ”