Service to business: the greatest opportunity in this age, it's just the beginning

? (Zhang Haitao, vice president of IDG Capital, on Supply chain finance)

Shong, founding partner of IDG Capital, had predicted that "business-to-business will be born next bat". According to the June 3, 2016 report issued by the AIDS advisory, China's business-to-commerce market in 2015 is on the rise of the channel: on-line ecommerce transaction size of 12.31 trillion yuan, the growth rate of 33.7%;B2B investment volume increased by about 300%, the total amount of money increased by about 7 times times.

It is expected that by 2018, China-to-business turnover will exceed 20 trillion yuan and maintain a steady growth rate of around 20%. The business-to-consumer market growth rate reached a peak in 2014 and is expected to decline to 11.2% by 2018. In the first quarter of 2016, 38 business-to-money projects were financed with a total financing of over 4 billion yuan.

Chen Zhonglin, founder of the World High-wire network, said on May 27 that the 2016 national commodity-to-business e-Commerce Summit Forum was the greatest business opportunity given to this generation in this era. The author adds: Business-to-service is the greatest opportunity in this era, and everything has just begun.

China's business-to-business service pattern formation

What components are included in business-to-business services? At least, including SaaS services, business-to-commerce and supply chain finance, covering the production, trading and circulation, finance three major links, but also the components of the industrial Internet. Among them, the SaaS service realizes the whole industry production management informationization, the business-to-commerce electricity quotient connects the entire industry transaction and the circulation link, the supply chain finance becomes the whole industry financial system, these three forms the Chinese business-to-commerce service pattern is forming ("the industry" refers to the manufacturing industry, agriculture and so on any industry or industry).

Why is that being formed? In the first place, the 2015 was widely regarded as the beginning of China's SaaS service and business-to-commercial e-commerce. The first-time, not because there have been no SaaS services and business e-commerce enterprises, and because they are both long-term investment and long incubation cycle, to the 2015 around the emergence of a concentrated outbreak of the trend.

According to a recent report published by the Institute, the domestic SaaS service providers have seen a total of nearly 160 companies from 2013 to 2015, with fewer than 10 companies appearing each year. The SaaS financing event was also concentrated, with a total of 111 in 2015 and 38 in the 2016 quarter.

In the 2016 national Commodity business e-Commerce Summit Forum, which was jointly organised by the "Commodity shopping district" and the "one-to-one", the list was released for the second time in the "2016 National Business e-commerce Top 50". The list of iron and steel, chemicals, coal, agricultural products, food, textiles, cement, wood and more than 20 industries 50 business-to-business entrepreneurs, most of them are not established in 2015 in 2015 to obtain an explosive development.

Looking for coal mesh, looking for plastic nets, looking for coal nets, agricultural products collection network, China Chemical Trading network, such as a large number of business e-commerce Enterprises in this forum have said that in the early stage of entrepreneurship and the initial development period, The plan started in 2016 to enter the internet link of supply chain finance and industry chain value-added service from two kinds of pure transaction mode: Matchmaking and self-employed.

Li Junbao, President of the Network Library group, believes that the industrial Internet will be the next stage in the development of business e-commerce. The core value of the industrial Internet lies in the whole network big data based on the industrial Internet, the supply chain and the industry chain service.

Supply chain financial monetization and business-to-business services

Why is it that business-to-service is the greatest opportunity of our time? According to the 2016 National Commodity business e-Commerce Summit Forum on the data from relevant practitioners: China's chemical market of 20 trillion; construction industry related to building materials, civil engineering, decorative decoration, such as up to 17.6 trillion; the agricultural food market scale of 10 trillion; electronic equipment, coatings, The size of fabrics and other industries are also about 1 trillion. By comparison, the total retail sales of consumer goods in China in 2015 was also 30 trillion.

On the basis of the pre-service and business-to-business e-commerce, gathered a large number of enterprises, personnel and information generated in the upstream and downstream industries, how to the accumulated flow of cash, the entire industry, which spawned the supply chain finance. Zhang Haitao, vice president of IDG Capital, appeared in April this year's "2016 China Enterprise Service Summit" for SaaS Services and the "2016 national commodity-to-business e-commerce forum", where he talked twice about the same topic-supply chain finance.

Zhang Haitao believes that supply chain finance through the grasp of the supply chain, more in-depth and more accurate understanding of the industry risks, thus giving the business-to-service enterprises to do "Industrial Bank" opportunities. At present, the traditional business-to-business industry, including manufacturing, agriculture, chemical industry and so on, is a huge amount of capital, while the bank loans are mainly for enterprises with fixed assets mortgage. To get through the whole industrial chain through the Internet, we must solve the problem of capital circulation in the industrial supply chain.

Simple understanding, such as to find steel nets and other business-to-service enterprises, not only very well understand the industry, but also has the production volume and the amount of money, including industry data, and even master a variety of inventory, water, receivables and other information, so the level of risk control is higher than the bank, level two banks or private lending. Because of the full information and the goodwill established in the industry, business-to-service enterprises can give better interest and effectively enliven the whole industry.

Moreover, despite the large scale of e-business and SaaS Services, the business model itself has a thin margin. Business-to-business commodity trading is a perennial transaction, and buyers and sellers are already familiar with the cost and price, and the profit margins of e-commerce services are limited. SaaS Service is a new information mode, the market acceptance is still low. The supply chain finance is actually based on big data of the industrial risk trafficking, in the receivable, coping, inventory and other links to provide financing services, it is easy to obtain high profits through interest income.

Sun Tong, founder and CEO of the Agricultural Products Collection network, my founder of Plastic network, Li Tiedao, president of the Easy Coal Network, Yangs, and other business-to e-commerce founders have argued that the biggest opportunity for business to e-commerce in the field of supply chain finance.

Industry informatization has just begun

The United States and China also have 30 million small and medium-sized businesses that need information services, but the US has a market value of $170 billion, compared with $3.5 billion in China, according to the institute's data. China's chemical, coal, agricultural products, food, textiles, cement, wood and other sub-sectors of the industry-wide informatization level is very low, has just begun.

SaaS Services, E-business and supply chain finance together, really opened up China's industrial informatization overall situation. According to true Shun fund founding partner Li Yingjie observation, so far, many industries in the domestic information has not been completed, and even no unified scanning code. There is a 2011 listing of "My Steel Network", in fact, is the iron and steel industry Sina, nearly thousands of reporters scattered around the country to collect steel information, completed the steel industry informatization process.

Then look at the penetration of e-commerce industry. Trustmobi Molbase, founder of Changdongliang, said that the most successful steel industry is only 15%-20% of the e-commerce penetration rate, many industries, e-commerce penetration rate is less than 5%, some industries even less than 1%. SaaS Services, E-business and supply chain finance actually promote the industry informatization, solve the industry problems such as overcapacity, rising cost, high financing cost, environmental pressure, and opaque information.

Lu Cungi, the market director of China's chemical trading network, said the core of China's business-to-commerce electricity is "lowering the bill and efficiency". and business e-commerce should be the entrance of enterprise-class SaaS services, through a platform for all departments of the enterprise, including OA, CRM, ERP, marketing, finance, etc., can achieve "drop this, efficiency" purpose.

Looking for a steel mesh to optimize the traditional 30-to-two-month cargo circulation cycle to 15 days, which means that the same amount of money can be transferred two or more times in the same time period. Find the plastic network to build five modules of integrated IT system, the realization of data connectivity and integration. Through a set of systems can avoid risk, improve efficiency, now looking for plastic network one day self-order can reach two hundred or three hundred orders, turnover also doubled two or three times times, and the past day also no more than 30 orders.

The world high-iron network launched the industry in-depth service, the original national more than 600 railway parts factory, each need about 50 million of the material preparation, now through the analysis of the big Data platform, only 500 million to 2 billion of the flow of funds to solve the problem of 30 billion of material. And before each project requires 5 procurement staff, now based on the world's high-net platform for a total of only 30 people can be.

Trustmobi Molbase Future plans to transform itself into a Super data center that shares its own IT systems with all external vendors and further builds supply chain support systems. The essence of this idea is to become a data hub, through the data to open transactions, marketing, information, SaaS Services, supply chain finance, logistics warehousing and other sectors.

In short, now to reshape the steel, chemical, coal, agricultural products, food, textiles, cement, wood and other industrial development structure and model of the time. This is not only China's overall national economic restructuring and development needs, but also because of cloud computing, big data, mobile Internet, smartphones, internet payment and other basic IT platform has matured, the lack of new business models and software applications.

True Shun Fund founding partner Li Yingjie said, business e-commerce is to do trading platform, has done a period of time to become a SaaS, this SaaS includes the front desk CRM and backstage ERP, is the whole element of the open. If we can embed the process of business e-business into the workflow of the enterprise, plus the supply chain of the whole industry, this will be a very high barrier solution.

SaaS Services, E-business and supply chain finance are combined, or will create China's own software giants. (Wen/Ningchuang, the first titanium media in this article)

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Service to business: the greatest opportunity in this age, it's just the beginning