Zhang Yong: Investment in Haier elements for logistics

December 6, Alibaba and Haier Electric group formally signed 2.822 billion Hong Kong dollar investment, Alibaba Group Coo Zhang Yong (nickname Xiaoyao son) to Hangzhou colleagues made a phone call, usually a stern voice in his telephone tone seemed very happy. "The contract was very smooth," he said. This is the first time in 2012 to contact Haier for just one year.

Alibaba first contact with Haier, is Haier in the days of the cat opened flagship store. 

September 2012 Cat Electric City try to do C2B custom mode, one of the partners is Haier, the external launch of the 10,000 customized LCD TV, just 48 hours sold out, equivalent to a line of electrical chain sales for half a year. Especially in this activity, Haier used to send and install one of the services, door-to-door and free installation and commissioning, but also provide free testing of other home appliances products running state, electricity security and other services. This set of systems is Haier's own logistics brand "daily Shun."

At that time Cat Electrical City general manager Tan Yu (full floor) found this feature, especially the Haier Day cat shop access Day and night distribution services, the entire service level has been greatly improved. So the house went to Haier inspection, Haier's entire layout, service and supply chain management has a more comprehensive understanding.

From the end of Haier inspection, Tan Yu and responsible for the cat Zhang Yong to discuss how with Haier deeper cooperation. December 6 last year Zhang Yong left for Qingdao for the first time contact with Haier. 

In contact with Zhang Yong found that the development of the day and pay treasure very much like, are the group's original business supplementary business, and then do a strong future independent development. This made Zhang Yong feel "an interesting opportunity", and the investment was discussed as a confidential project for a year.

Japan and Japan Shun for Alibaba, is undoubtedly a particularly good partner, especially in the rookie network construction, in-depth to the three or four-line city of the capillary supplement. So Alibaba came out with great sincerity, with a total of 28.22 Hong Kong dollars investment and the establishment of joint ventures, focusing on supporting the daily logistics brand.

This business logic is very simple: everyone electric distribution and to the household and installation Services has been the weak spot of the electricity business platform, and day by day shun cooperation, can let the day cat user experience better, at the same time help the cat electrical city to attract more large household appliances sellers settled in. At the same time, Japan and Japan can also be faster to open, in addition to the third party's electricity business, but also to expand the scope of business to home building materials. To know that the sale of large appliances and commodities in the current online shopping market, is the annual growth rate of more than average.

The whole investment is led by Zhang Yong himself, which is a very important strategic layout for him.

Break through the industry pattern

For the hope to get through the electrical business upstream and downstream, the construction of the entire industry ecological chain Alibaba, logistics is a very important link. Prior to the Alibaba company to invest 300 billion yuan to create a rookie network, on the one hand, through the construction of the hundreds of cities nationwide to build warehousing facilities, on the other hand, the use of cloud technology to establish a data application platform, and contribute to the electrical business logistics warehousing and other companies.

If the "Rookie network" is a large backbone network, delivery of the "last kilometer" still need to be resolved. 

In the standard goods and commodity logistics, has a relatively mature "four to one", and in the electrical delivery and installation, has been the industry has no uniform standards, but also become a lot of electric business platform for the development of the power of the bottleneck. "Ali hope that through the daily logistics, to promote the entire logistics large service standards for the establishment of the cat and Taobao big household appliances and big-ticket goods, from the industry pattern has further breakthroughs." Zhang Yong said.

According to the Haier Electric published data show that its daily shun logistics in the country has 9 shipping base, 90 logistics distribution centers, storage area of more than 2 million square meters. At the same time, has established more than 7,600 county-level stores, about 26,000 township stores, 190,000 village-level liaison stations. And in the country more than 2,800 counties set up a logistics distribution station and more than 17,000 service providers outlets.

Such a depth of three or four lines of the city's network, not a year or two can be established, and the whole of China only two sets of large household electrical appliance logistics Distribution system, in addition to Haier Day Shun, the other is Su ning. Although some enterprises such as Skyworth also has a local system, but there is no national network, and deep into the three or four-tier cities.

Another point, although the Suning line has more than 1700 stores, but at most can reach the second-tier cities. From the purchase section, the increase in China's consumer market potential is the three or four-line region, but this part of the region without suning, online shopping can not be sent, the day will be able to all through the day, the cat can be combined with the daily release of consumer demand. This cooperation will bring an objective result, the three or four line area net buys obtains the promotion.

Another day of the advantages of the day, is door-to-door and installation integration completed. To know that in other electronic business platform to buy large appliances, delivery usually by the electric business Platform is responsible for, but the installation will be separate to the appliance business booking, experience is not smooth.

As a result of household appliances as a standardized product, daily Shun in other brand installation obstacles are not big, Zhang Yong also hope to borrow this investment to redefine the delivery standard of large appliances, that is, delivery must be to the households, must be installed.

According to Zhang Yong, the day before the double 11 has begun to access the cat system, double 11 of 130,000 items are transported through the daily logistics, this is a very good start. Of course, the cat will not force the seller to use day to day shun, but to establish some standards, if the daily logistics can not reach the overall service capacity, will still lose a lot of development opportunities.

In the future, Zhang also hopes to be able to launch the aging service in different areas, so that everyone's distribution of electricity faster.

Zhang Yong predicts that in the future, everyone's electricity will account for 35%-40% of the entire industry, which will be a huge figure. And day by day system of increasingly perfect, will also help home building materials and other categories, breakthrough in the development of logistics evaluation.

Accelerated opening of day and day

Daily Shun as Haier Electrical logistics brand, in fact, has already seen the open market. According to Haier Electrical senior revealed that long ago, the day has been determined to outward development, but the external voice is not this publicity so large, and in this investment to set up a joint venture before the date of the day has been a third party orders.

According to the above high-level introduction, this year, the overall income of the business is about 2.9 billion yuan, of which about 20%-25% from the third party business. These third parties include home appliance manufacturers, distributors and electric dealers, of which the electrical business station to the overall third party business volume of the proportion of not more than One-fourth.

For Haier Group's logistics brand, to do the third party open to face the biggest problem is how to make the competition with Haier's home appliance brands believe that their data will not be leaked to the Haier Group.

"This is the issue we have always attached great importance to, as a long-term development of the company, data privacy we must pay special attention to, but also strict adherence to the principle of data confidentiality." Haier Electric senior said, and Ali joint venture to establish a new company, Haier Group will be as customers to settle.

Although the current proportion of the third party business is not high, but from the channel, the dealer's development speed and no electricity business fast. From day to day shun internal planning, I hope that three years from the third party's business ratio can reach 50%, and the 50%, the hope that including the days of the cat's business can reach 50%.

For the introduction of Ali Investment, Japan and Japan will be mainly spent on the establishment of warehouse distribution system above, the most important aspect of the consideration of their own investment in vehicles and other aspects of the cooperation with distributors. On the other hand, IT systems are established and possible acquisitions are made. "We think that China's logistics market is too fragmented, and that we should consider more cooperation and mergers and acquisitions in terms of regional effects." ”

When the joint venture and a number of standardized work done, day Shun will consider how to work with the cat business cooperation, especially in the field of home building materials, has a very large potential for development.

From day to day data show that the current distribution and installation costs accounted for about 7% of the value of the goods, and now the entire household building materials distribution costs around 10%, day by day Shun more confident that this cost can be reduced to 8%.

On the other hand, the revenue from the installation of value-added services, in Hong Kong household building materials, the installation fee can reach about 10% of the value of goods, although the mainland due to the competitive situation is different, but in the future will also improve in this respect. "The provision of service fees is an objective law, which needs to look at the user's choice, but the future will be very large market." "Haier senior personage said.