Bi Sheng: Amoy 4 years of 2 transformation either die or the Bureau

As an entertainment director of the United States and Asia, Bi Sheng attended the film "Listen to the Wind" internal viewer. US-Asian Board chairman Li Guoxing to the state is very high Bi Sheng said, you are not honest in Baidu stay, run out to do business and investment, investment in several companies are very profitable, do their own company has not been making money.

"Does that mean you have a good investment perspective, but you have a problem with your business skills?" Li Guoxing asked. "Your uncle's." Bi Sheng replied, "This proves that the man is willing to take the challenge and is willing to overcome the hardest thing." ”

Since the July 2008 Lok Tao Network officially on the line, it seems always not so smooth: there is always a cheerful, hopeful beginning, but always in a few months after the problem to adjust direction.

For example, the beginning of positioning as a toy, entrepreneurship 3 months close to break-even, Bi Sheng found that Chinese parents would rather give the children a variety of cram school, also unwilling to spend more money to buy toys, to a huge bottleneck can no longer grow. So in the Lok Tao online half a year later, Le Amoy team began to do research and find direction, and finally in 2009 transformation Footwear consumer.

To get Bi Sheng excited, the shoe city will be more than a toy for a week's income. Zappos, the shoe-type vertical consumer website that was bought by Amazon, was the focus of media talk, he felt this direction was right, because the first footwear is easy to standardize, warehousing and logistics will be relatively light, in addition to the use of Lok Amoy model, so that its funds and Yahuo situation will be better than the procurement system.

According to Bi Sheng, to the first half of 2011, from the sales scale to do the vertical footwear of the first consumer. But it was not long before he had a transformational idea, the core reason being "no money". That period of time to continue to try to authorize the original brand, such as Angry Birds (micro-bo) shoes, and so on, finally at the end of last year, Bi Sheng did not endure the external shouted a voice: E-commerce is a scam!

The fierce reaction of the market to the "electric quotient scam" has been felt by everyone, more importantly, this view allows many investors to begin to re-examine the electric business sector, many investors began a project has been invested in the company's cost, gross profit and other data, found that "really is not to make money", The comments even affected the IPO or financing process of some electric companies.

But Bi Sheng to clarify, his emphasis on the "electric quotient is a scam" theory, refers to the pure vertical purchase and sale of the consumer website, the original people think that the cost of doing electricity online is higher than the line, which is precisely the opposite conclusion, the cost of the electrical quotient of high 20%-30%.

According to Bi Sheng calculation, the current vertical purchase and sale of consumer electronics company Cost = Logistics 10%+ Warehousing 10%+ Reverse Logistics 3%+ Customer Service 1%+ Technology 4%+ Manager 10%+ Marketing 10%+ The collection of fees 2%+ packaging 1%, the cost of about 50%, and in the entire electric business sector, gross margin can exceed 50 % of the category is very few, in the mad price war, the margin is more weak, on average can reach 10% is good, so the net profit is-40%.

And even endure a huge loss to become the industry's first, can not reduce these costs, waiting for the still is not profitable ending.

This is also Bi Sheng determined to transform the biggest power, Amoy this June launched 5 footwear Independent brand, opened the transformation of its own brand of the prologue. From because "do not understand", follow the upsurge to do electricity business to two times transformation, Bi Sheng is a pair of Lotte, his logic is, see the front is dead, transformation can have more survival hope, why not happy?

"E-commerce is a bitter business, since I chose this road, or I will die, or I will break its Bureau, this is my character decision." "Bi Sheng said.

Bi Sheng dictate: Why Change own brand

The value of being acquired by vertical Business-to-consumer is not

Transformation are the second time, you see I am very tired, in fact, I am very hign, although constantly in the transition, but in fact, in the right direction to go, at least make toys and do vertical consignment class is wrong.

Take the market cost point, usually everybody's market cost is 20%, can below 20% already Amitabha, when your margin is below 20%, but the market cost is higher than 20%, this is a business? Online shopping is not a scam, online shopping is a trend, I said the electric quotient scam, just say pure vertical purchase and sale class.

No matter in which industry, it is a scam to do business without making money. Set to the purchase and sale of the vertical consumer, it applies to this truth, so I said it is a scam, but also someone to refute me, we look at, China's E-commerce from 1999 onwards, from the first E-commerce site so far 13 years. Is there a company that is really profitable? Then why do they contradict me?

There are a lot of electronic business platform is from vertical to turn over, the platform refers to what? is to reach a certain level of sales, and then to eat other people can not eat, that is, to turn themselves into a real estate business, in order to lose the former as a retailer's baggage, in order to make money. But the platform this pattern has already ended, the future has the potential in addition to Taobao and Jingdong, the remaining one will be in when, the Amazon, Suning produces.

What about the rest of the Business-to-consumer sites after the platform is set? Not even the value of being acquired. Why? On the platform, on the technical people have, on the warehouse people have, on the logistics of their own building, on the category of people have, then why buy you?

Lok Tao to do at the end of last year, I think there is a big problem. At that time, Amoy's finances are pretty good, that is, if everyone is handicapped, I am below the waist paraplegia, many are neck below high paraplegia. Mainly is the high cost of living, to know that I take Internet advertising has always been lower than others, but the cost has been high, but not to do the market investment can not let people know that they are, this is a dead circle.

As for the understanding of the cost algorithm, why other people have to adhere to, I do not understand, perhaps we still want to gamble. I don't talk about any of my opponents and peers, I think everyone is very bitter. I am more fortunate to wake up earlier.

I'll be a power dealer, or I'll die.

Will the transition feel painful? No Ah, my personal pleasure is to challenge the difficulties, when there is no difficulty I am not comfortable, I was ill. My team is very willing to follow me to go, you see us two times transformation, my senior executive leaves one not, everybody is a dream, to say the start-up company salary is not high, I in Baidu time also very low, later?

E-commerce is a bitter business, since I chose this road, or I will break its bureau, or I will die, this is my character decided, dead at least brilliant one, this is my idea.

Since I was a free brand, my mentality has been particularly low and stable. Frankly speaking, I am also a veteran of the Internet, formerly pure Internet play, playing traffic I also think very strong. But now it takes more than 10 20 years to make a brand, and it may be quicker to do it through the Internet, but assuming it will take at least 5 years.

That is to say, there are two roads in front of you, a road will be dead without doubt, a road is out of the electric business platform circle, since can not be profitable, the business left to Liu left to ma (Micro bo) to do. Like a desert planet, Liu and Ma Yun set up two universe companies, the delivery of water this thing was done by them, what are you doing? It's okay to provide water.

I've been in this circle for 4 years, and if you're looking for a vertical representative, Amoy is a former company. But it's certainly not the right way to make money or never make money. Then I'll choose the second way.

I have just said that since online shopping is a trend, there are opportunities to cultivate brands in the online shopping market. I can only have this road, not only me, but also the other vertical to the same way to go, there is no second to go. If you continue to do vertical, you will die, that is, to lose your money, for Nike, Adi to carry boxes.

Brand needs to put the mentality of the long-term in fact, the Internet brand and the traditional brand is the same, if I go to open shop in Oriental Plaza, everyone will think I am a traditional brand. In fact, I have now received no more than 300 mail, do traditional shoes line shop people to do our agents.

But we are not going to march down the line because I don't understand. First of all, my team is the internet background, did not do offline retail store management experience, which is more complicated for us, so I do not want to do this thing. But I sell on the internet, can only be the Internet brand? No. Because it depends on which day I enter the line, if one day I have a comprehensive team, and the demand for agents more and more strong, I certainly do.

Brand is very difficult to do, must take a long-term attitude, the first need to have a financial basis, that is, it can make money. Because of the Internet's purchase price of the problem, in a certain scale, my own brand to calculate down also only 2%-3% net profit. But it's a lot better than vertical business-to-consumer, always a negative number.

We do not have the problem of being forced and not being forced to do so. Just as you ski, the ski road is very slippery, you have slipped down, slippery snow? You have to find a way, you have a big stone in front of you, you have to go out and killed, you are not forced to turn, that is forced to turn is wrong? There is trouble without turning.

Our investors are also supporting me, at the beginning of the year I made a sum of 30 million dollars of financing, the day we a director said, Vertical business website CEO of the Capital Reserves list, Bi Sheng you are sure to row the top three. This money will at least leave me with no problem for the next 12 months to 24 months. And after the transformation, the results are good, the 5 brands on the June 25 line to now less than 1.5 months, there are 5 million of the revenue.

My mind has been very good, I still in micro-blog nonsense. At this age, mentality is a way to decide if you can do something. What do your team think of you if you complain every day and you're done with your tears? We had a two-day expansion, and I danced with our CTO, and he played steel. Why not? It's hard to start a business no matter what.

I'm telling you, apart from the two or three big power platforms I just mentioned, what do other vertical operators think? People will find this industry more and more difficult and pessimistic. My employees don't think so, my staff is very happy, because Amoy find the way, should be happy. Is that right? This is still two kinds of mentality, one is the transformation to find a way, one is not yet found, you think which will be better?

I do not comment on the status quo of good music buying, because the relationship between our two families was too subtle, but now I can think of him as a partner. He is willing to sell my shoes, I am willing to authorize him.

Keep the market cost up to 20%

Now Lok Amoy 5 products Independent brand I have not yet distinguished, this is my strategy. Pushing a brand is prone to problems, I will push five, then the first balance of resources six months, and then look at the natural performance, and then the fittest. At the same time I will be on the new brand, through the fittest, the hand has been guaranteed four or five brand operations.

Talking about the mood problem, now pricing right in my hands, can not feel good? There is my entertainment circle resources, positioning career shoes brand precisely, we need to ask the star to do the endorsement, that beautiful and capable image is who? There was only one person, Xu Jing, who happened to be my friend.

Now Le Amoy operation is the team in the work, I mainly grasp the direction and rhythm, too fast or too slow I to adjust. How to judge too quickly or too slowly? I look at the data. We have a strong operations support department to do the entire data analysis. Every hour, the system will automatically send mail, the relevant data to tell me, I see changes.

The data that is too fast or too slow is the market cost ratio. A brand company's market cost accounted for 20% or so, this is I see a lot of brand growth process of the general number, if you are higher than this number is too fast, the supply chain can not keep up, below this number is too slow, not conducive to brand development.

I never participate in any electric business party, I have to work, after work to take care of the children, take care of the children I have to exercise, there are other investment, entertainment business to do. I can sleep at ease, not who support me, but my staff can have a future. Outside, even if more people support me, what is the use of the company dead? Outside of my support, my employees have a future, I will be very happy.