Why choose to go with Ma then?

Only with a good understanding of history can we have a clear insight into the future. Today, we mainly talk with everyone from the point of view of Internet history.

In 2006, when Internet users in China immediately surpassed Internet users in the United States, I joined Alibaba.

According to the relevant information we can know that China spent seven or eight years, PC Internet users surpass the United States. It took less than two years for China to have more mobile smartphones than the United States. These two are China's Internet population structure, determine what the Internet can do what industries, what industry is not popular. Population structure is everything.

Why choose to go with Ma then?

Internet companies are divided into four categories: the first category, new media. Most companies that make the media are in Beijing.

Second, new entertainment. Including game companies and video companies, mainly in Shanghai.

Third, new communications. Guangdong Telecom management is relatively loose, Tencent QQ, Netease mailbox to WeChat are the main communication features.

Fourth, good business. The Internet to the hands of Zhejiang, that is, doing business, represented by Alibaba.

Therefore, the four major internet genres in China are mainly grouped into four areas that are politically friendly, able to engage in communication and can conduct business. Any new Internet model company can be classified as one of them.

Today, talk to everyone about four types of e-commerce in this one.

China's retail sales have risen 1.8 times over the past five years, and online retailing has risen 19 times over the past five years. My 05 years with Ma, before the B & Q made seven years of retail. Why join Alibaba? Because of a bet.

Year Taobao and B & Q turnover is 8000000000. Ma said you estimated how much you will need to invest in doubling the performance of B & Q, how many people you add, and how much time you spend. I forget about 40 stores, with an average investment of 20 million U.S. dollars in each store, at least 200 in each store, and three years in quick service. Ma said that as long as I add five servers, no one alone, can be doubled in six months, the result was doubled in three months. At that time I felt that the traditional retail may soon become a dinosaur, so I decided to join Ali. Some recent friends in the retail circle said that national statistics say there is still more than 10% retail growth, there must be moisture. Actually, I do not think there is too much water in this area. Where did the retail growth go? The first went to the cities of the fourth and fifth tier. The second went online. If you do not have online, fourth and fifth tier cities do not, the growth does not matter to you. Third, fourth and fifth tier cities have experienced the growth of traditional retail. Most of the cities in the second and third tier cities have been taken away by the Internet. Then let us look at the fourth picture to understand why it will be taken away?

"After 85" will lead to qualitative changes in electricity providers

Four stages of e-commerce

B2C e-commerce development has gone through four stages.

The first phase of non-mainstream crowd to buy non-mainstream products.

Non-mainstream mainly refers to the young people who have graduated from high school and have just worked for two or three years. All of our island-relatives with strong purchasing power are the mainstream people.

The first phase of the Internet is generally a newly graduated child, Amoy second-hand goods, buy a little bargain, their products are non-mainstream products, this stage lasted until 2006 and 2007.

Why? Because China by the year 2000, almost no Internet. You go and see that today's famous Internet companies saw their birthday is the same, they all rose in 1999, in other words, China had no Internet before 2000.

The population of China's Internet is not what we normally understand. Since the 80-year-old was 21 years old in 2000, most of his contacts with the Internet started from work, so the post-1980 generation is working on the Internet. People born after 1985 are the real Chinese Internet generation. At that time when I was in Alibaba, see Tencent rely on the game so earn money, anxious incredible, Ma said you are impatient useless, our future users, is still small, still playing the game, we dig in front of a Pit wait for them, they will fall sooner or later. From the fourth quarter of last year, they fell, the fourth quarter of last year, Ali's entire profit, more than Tencent. This result is not entirely because of Jack Ma, we often joked that you do not have to do this outcome will happen. There is no Ma Yun in China, e-commerce will be successful, but may be groping for several years. The real decision is the age structure on the map, you will not work late, then the chance is gone. In 2001, Shanghai had a great e-commerce company called 8848, which is more cattle than the current Amazon because they were 020 at that time. However, all this started too early and the population behind it has not yet grown up. First go to the martyrs are generally.

Including a lot of now starting to do mobile Internet because too do not understand this map too early. This picture you have no way to change, so we must take advantage of it. The understanding of China's Internet population structure determines the layout and start of what you do.

The second stage is the mainstream crowd occasionally go online to buy non-mainstream products. What is the mainstream products and non-mainstream products? You left it can live products that are non-mainstream products, the book does not see most of the knowledge, but really not starve, clothes do not wear a problem, do not eat something, So the book is non-mainstream products, and clothes, food is the mainstream product.

The third stage, non-mainstream crowd buy mainstream products. After this stage 85 began to work, they began to buy mainstream products. This phase brings a huge myth to anyone who engages in internet and e-commerce, selling only cheaper things and discounts online. This is not the Internet's fault, nor is it a problem with e-commerce, as the post-85s at this time can only afford cheap things. 25, 26 years old, not to buy cheap things online, where he will buy cheap things.

The fourth stage, the mainstream crowd buy mainstream products.

This time the mainstream crowd is not referring to all of you present, but has been thirty thirty-five post-85. The changes that the Internet has made to our generation are still very young. We use the WeChat account only, using the Weibo, which is incomparable with the next generation of 85, and this trend is irreversible.

One of the judgments I made when I was in 2008 is that 2015 is the node of quantitative change to qualitative change in China's e-commerce. Why? Because 80 years after 30 stand, people born after 85 into 30 years old, they become the mainstream of this community.

So no matter what industry you are in, you just have to look at your consumer base at how old? You know you have a few years of preparation. For example, I invested last year, China's largest wedding photography Kim, who is also our island pro. Why? Because 85 is now the peak of marriage, their wedding choice unlike we used to be married, go to a lot of bridal salon than the price set. Their wedding quality requirements are particularly high. Including Wang Jianguo our children's king, do not worry. The maternal and child market is not yet fast yet, but soon after 85, the peak of childbearing age is coming, and as soon as that moment comes, they will be more sticky online. So just have an island pro asked me what I recently looked at? I was looking after 85 what else is about to buy. After 85 something to buy, this vertical field of e-commerce will become the mainstream.

Guard against traditional enterprises, "four do not see"

Consumers have four stages, businesses have four stages. The four stages of business and consumer four stages are consistent.

- Four stages of business

The first stage is invisible. When consumers are non-mainstream groups to buy non-mainstream products, businesses have not seen e-commerce. Kids ass around the kids to buy something online, it is not my product, I do not sell, this is the first phase.

The second stage is despised. I have seen a lot of big brothers doing clothing, clothing industry, said the water is deep, where customer's old is selling books, how could he sell clothes. Including Gome and Suning, are equally despised by Comrade Liu Qiangdong who just came out. Therefore, this stage is seen but disdainful.

The third phase is about 2009 to 2010 or so. Taobao annual "double eleven" are for everyone to clear agent. Then there are a lot of people come to me and say how do I do clothing do more than a dozen years to do a turnover of more than a dozen billion, casually a business online now is the turnover of 20 billion. So this time everyone is unable to understand.

The fourth is not seen. Just can not see how to go in the future. We are here are the island neighbors, virtual immigrants to the island. If you consumers have already emigrated to the Internet, you have not immigrated to the end, eventually your business, your brand your product will be eliminated.

- The key two steps in transition

China B2C e-commerce of the four modes

The first step, there are four types of e-commerce B2C, first distinguish which kind of their own business.

The first category of platform, in short, is online commercial real estate. Why Ma and Wang Jianlin bet, because Wang Jianlin is offline commercial real estate, Ma is the online commercial real estate, two real estate big brother gamble. Real estate big brother how to play? Generally do MALL, regardless of pricing, inventory, nothing to control. Such companies are more like Internet companies. Everyone has a look at Lynx made so much money, many big guys came to me, said how much money you give Ma I multiplied by you three, how much Ma Yun in Taobao, we give you the same dollar you do it again No, I said I can not do it, not my incompetence, but because of the passage of time. What is the secret of commercial real estate success? Not how beautiful the design of the MALL, the biggest secret of success is that you buy enough to be cheap. Now the age of the Internet on the PC side of the enclosure has come to an end, when the development of an active user Taobao only need 2 to 3 yuan, equivalent to 200,000 yuan a mu of commercial land. Now it takes 100 RMB to develop an active user, which can not be done even with a good operation team of 70. Because the "land" is too expensive, the era of building MALLs on the PC side has passed. It is still cheaper for mobile users to develop active users. However, such a cheap "land price" will not exceed one and a half years. A year and a half later mobile Internet soliciting costs, drainage costs and PC proximity.

The second category is online retailers, for example, No. 1 store, Jingdong. Many online retailers are really losing money and drinking, where is the way? Also very simple, similar to the Carrefour in front of our hotel, which is the world's best-selling Carrefour. What are their models? Retailing does not make money. It builds retail to the second floor, third floor, and rent out the first floor. It is also very profitable for me to use the rent, so the next step for online retailers is to run there Go, use my passenger to do MALL.

The third category is to do online brands. For example, a free brand where customers. If e-commerce platform to do quickly to enlarge, but the brand should be fast. Do not care about the brand is how much you are, but you are not fast enough. Today I have invested 8 projects now, B2C E-commerce has not voted, because a does not meet the true standards of value creation, are blind to do the scale, but do not know the scale of the benefits?

The fourth is O2O, online and offline must get through.

The second step, find out the characteristics of your industry.

As a traditional industry, we should pay attention to what kind of traditional industries you belong to. Because some of the traditional industries of his original model is very vulnerable to the impact of the Internet.

There are four different levels of impact for this purpose.

The first category, for some products easy to be immortal industry invited digital data there is no way. For example, I used to live in foreign countries before I like to rent a disc, now disc pirated DVD are gone.

The second category, the company's products are extremely standardized, will be disappeared, 3C easy to standardize things. I have a colleague after 85, said he never entered the supermarket in this life, only to the convenience store. This is very scary, standardized products do not need to go to shop consumption.

The third category, the product is not standardized, but also have a long tail effect. Such products will benefit from the Internet, this time the offline experience becomes very important, many big fashion boutiques, flagship stores, experience shop or to open, but do not expect to generate sales from the store.

The fourth category, if your industry is product plus service, then you can benefit even more from the Internet. Line shop not only will not die, but also to develop vigorously. Because he sells the service can not be replaced online, such as wedding photography, such as catering, washing head, the computer can not be high-tech to that extent.

in conclusion. Ma proposed e-commerce, that is because he had no business before, he is barefoot, basically smashing the field. And you are a business, I suggest that you consider the issue of electronic commerce, rather than e-commerce. You are nothing without you to hit the ground you are e-commerce, you have a physical store line, the original business that kind of business electronic. How to understand? To the Internet to find your original bottleneck is to solve your problem. The Internet should solve your problems rather than create new problems for your existing businesses. So I believe that is island and island's pro, if it is a traditional business, the first should consider not to become e-commerce, but to consider what my original business platform which links can be used to solve the Internet e-commerce. E-commerce belongs to Jack Ma, business electronic belongs to everyone.

This article is Wei Zhe on September 14, 2013 at the "Zheng He Island Internet Club" was founded on the theme speech. Concerned about Zheng He Island WeChat, please search zhenghedao or Zheng He Island