A speech called "Innovation map after the transformation of electric business platform giants"

This morning, at the fifth session of the Electronic Business conference, Weimin, vice chairman of Suningyun, made a speech called "the innovation map after the transformation of the electric business platform giants", the whole speech reviewed the course of Su Ning from the traditional retail company to the Internet, and reflected the mistakes that Su Ning made in the whole transformation process. It is from these mistakes that constantly change their understanding of the Internet.

Weimin said that in the first transformation of Su Ning, just want to the internet is mainly as a supplement to the offline channel, when exposed is line offline under the "hand in hand" of the pain, the direct result is a decline in profits. After the price war, Weimin realized that "in the Internet era value is not only price, but also value." Free things may succeed in the past, and it's getting harder today. ”

Therefore, the concept of retailing has changed from "goods to products, from price to value, from service to experience". He stressed: "The Internet is a tool, each tool brings the habits and skills must be different; in the internet, traffic is indeed changing, but also very important, but more important than traffic is the brand, from customer management to brand management"

The following is Weimin's live statement:

At first we made a transition to the Internet, and we all did two channels on the line, while the consumers intercepted. However, as we line up with the same strength of the promotion, we found that the concept of dividing consumers into two channels is not reliable.

The middle of the brain is very painful. We still have to cross the two legs, so we first merged the procurement in March 2013, then in June 2013, we merged the architecture and announced the opening in the three quarter of 2013.

Declare open this is to use the model of Internet enterprise, still can't say right or wrong.

How from a retail enterprise to Internet Enterprises, Suning from 2010 to 2013, has been a strategic transformation.

I think the strategic transition is right, though it's not good from the outcome: our profits are falling, but strategically, there is nothing wrong. Why is the strategy right and no good results?

I'll talk about that. Su Ning in the process of real transformation of the Internet, the past some things to re-examine and reflect: in the past we do retail, now we also do retail. Retail is actually the interaction of goods, funds and information, how to do well in retail, the most important thing is goods, prices and services.

But, on the Internet, is it possible to do that with these things? Not really.

From the commodity, we used to do commodity thinking, the product function more the better, the more the price is better. But actually is not the product function more the better? No, we have seen consumers from the use of products to scrap, even some features do not know, but also for the function of the bill.

We are not saying that simply do the commodity, but from the commodity thinking to product thinking, the so-called product thinking, this product is to solve what kind of consumer demand.

We used to talk about prices, think prices are very effective means of competition, not only Chinese people are accustomed to price competition, Americans are the same.

But now the price competition is becoming more and more extreme. Previously said that free thinking, and now also to the price of competition, prices, of course, the benefits to consumers, enterprises also have benefits, but also have to make up. For example, taxi tools, from research and development, there is not much cost, in the market to spend a little time to promote, you can get user identification. But in the cost of this product in China, so many promotional costs.

The same product, is not necessarily free? We believe that the current hot in the Internet era value is not only price, but also value. We used to be simple cheap, low price, but the internet began to appear not cheap. If the entity retail enterprises always turn the price into an important means, can not turn the price into an important guide to value, line will be offset online.

From the service, we have done the service standard, strict standards on the line, but do a standardized, rigorous, customers have not felt? Do customers need it? From the entity of the service to the Internet age, we are talking about the experience, is the customer feel the service, is received through the service to pay.

From goods to products, from price to value, from service to experience, this is the experience we have come through over the years. The Internet is a tool, each tool brings the habits and skills must be different, and in the midst of their transformation, how to make the transition become successful, if there is no new skills in the details, can not achieve results.

It is widely believed that we have done more radical in the Internet transformation. Is not radical, we are not good comment, we are a step ahead of many enterprises, at least than other people earlier to make mistakes, than others earlier experience the lesson, here to share some lessons, for everyone to help.

The first is the question of free, is not everyone to do anything must be free from the point of view, must be free? In fact, this shows that you do not really capture the needs and needs of customers, is the pain point and itch point.

Free things may succeed in the past, and it's getting harder today.

In the past, the user can be cultivated in a few ways; today, almost more than 900 million of online users, how much is the cultivation of free cultivation? This is a question that needs rethinking.

The second view of traffic, the traditional internet thinking, but also with Li Ka-shing's shop thinking similar, lots, lots, plus lots.

This statement is true, because the lot is traffic, but the lot is changed, in the city of 1 million people, the city's business circle 20 years will not change, but in the city of 5 million people, shopping district will not change?

In this way, in the Internet, traffic is indeed changing, but also very important, but more important than traffic is the brand.

In recent years, we have been discussing the phenomenon of millet. The success of Millet, everyone said is the success of the Internet, but it and which internet company is the same? In fact, the success of Millet is operating the customer itself, the formation of traffic, to which platform has not been critical.

The flow of the problem is not unique, the flow of money must be low value, from the customer management to brand management.

Finally, everyone is talking about the internet thinking, speak a little queasy, is not a bit of anti-internet thinking problem, not really to reverse, is to use the Internet as a tool this, have more profound experience.