Chang Xiang Network: "Close to perfect" mode

Abstract: Two years ago, the reporter participated in China venture capital and private equity medium-term forum, a total of net Cheong founder Lindong and Guo Yu was a grand conference star.

Two years ago, the reporter participated in China venture capital and private equity medium-term forum, a total of net Cheong founder Lindong and Guo Yu was a grand conference star.

At this meeting, Lindong and Guo Yu gave the guests a bottle with a special number of red wine, and vowed to the guests when their company listed, some guests holding red wine will be lucky to win the prize.

Two years later, the reporter and Zhejiang cast circle of people to eat and chat, there are people who are not polite to point out that Chang Xiang Network and the total network is "a joke in Hangzhou circle."

This is like a roller coaster evaluation may be a bit cruel, especially for Cheong Cheung Net, the company was once the Asian version of Forbes, the Heaven, now become extinct. Founder Lindong out of day-to-day management, founder Guo Yu also pondering how to be a professional investor.

Chang Xiang Network because of focus on travel management, stood on the opposite of Ctrip, but the final "perfect mode" did not stand firm, but also did not form a real challenge Ctrip.

For business travel management, is not a very beautiful quagmire?

"Near perfect" mode

Chang Cheung Network was founded in 2007, is a business and government-oriented travel management services company.

The cause of the establishment of the company has two versions. First, the original creative from Zhejiang Network One of the Zhouxiao, by Lindong and Hangzhou Rui Hao Hotel chairman Shao Xiaodong jointly funded 10 million yuan to create.

The second version, also described in Forbes, Asia. Lindong the Green Sheng Company a manager in Beijing on business trip, bought 1200 yuan false invoices back to reimbursement. Beijing police cracked this counterfeiting fake invoices after the dens found Green sheng, Green Sheng was fined 2340 yuan. So Lindong began thinking about a plan to stamp out false invoices and control travel expenses.

The mode of Chang Xiang Net seems to be a total win mode. Enterprise customers in the bank to establish an account, through the bank credit, to Chang Cheung Net account open. Staff travel tickets and hotels through the Chang Cheung Network system to book, employees inform Chang Xiang Network travel time and lodging location, Chang Xiang Network also according to the level of staff to specify their travel quota. During the whole business trip, the employee does not need to pay the bill.

Enterprise Cheong Xiang Net finally adopt the pattern of the month knot, hotel Cheong Xiang Net has a period of account. Every link, Chang Xiang can get a leisurely time and operating space.

Lindong has emphasized in many occasions, Chang Xiang Network for hotels and enterprises have provided a series of "free" service. The hotel has received more customers, while the overall travel expenses of the company decreased by more than 20%, travel management cost decreased by more than 50%, significantly reduce travel cash advance.

Chang Xiang profit point is to obtain hotel agreement price and sales to the enterprise price difference.

In the January 2008, the seemingly winning model was also covered by the Asian version of Forbes ' three-page cover.

By May, Chang Xiang Network announced a high-profile announcement of the Kai Peng Hua Ying and Qing branch 30 million U.S. dollars investment. June, Chang Cheung Network announced the first investment in Hangzhou to guide the fund of 6 million yuan in the capital.

But according to press access to public information, and finally Peng Hua surplus only cast 5 million U.S. dollars, reporter Xiang People understand, Chingko once did have investment, but finally cast a number of internal also did not open. Finally, even Hangzhou's Guide fund, Lindong later mentioned not in place.

In all these unfavorable circumstances, Chang Xiang Network also announced to September 30, 2009, to the Zhejiang Province Enterprises to issue 100 million of the ticket consumption coupons, to promote travel management E-commerce industry.

Its Chang Xiang Network chief operating officer Zhang Qiang said, through Cheong Cheung net each booking a ticket to deduct 30 yuan cash. This move by many netizens refer to as "gimmick".

2010, according to media reports, its investors as early as the end of 2008 due to dissatisfaction Lindong business performance, so that the latter gradually fade out of day-to-day management, Lindong also subsequently as a student tutor's identity and active in the major media suites. and Guo Yu identity, suddenly become 100 million RMB fund trader.

It seems that the brilliance of Chang Xiang Net is suddenly a remembrance. In fact, the development of the back in the second half of 2007 revealed.

In the second half of 2007, Chang Xiang Network model encountered obstacles. Companies are unwilling to open their accounts to Chang Cheung Net, the hotel is also more inclined to cash settlement. So, Lindong to Chang Cheung Net first advance funds, the end of the month and the enterprise settlement.

The development of things went downhill, Chang Xiang Network failed in the client resources to attack the city, but the rear began to fall. Due to frequent advances in funds, accounts receivable increased, the risk of bad debts suddenly rise. By the end of 2007, the capital chain was close to breaking.

Until March 2008, Chang Xiang Network due to the inability to continue to cushion funds, with the Zhejiang Province ICBC cooperation, the introduction of joint credit cards, that is, enterprises or individuals according to credit to overdraft travel expenses, and then with the bank settlement.

To a large extent, as a result of the solution to the problem of cushion, but also to attract customers, including Fosun, Alibaba and other clients signed, to help Chang Cheung Network in 2008 to invest.

But in the 4 months after the injection, someone burst material, Kai Peng Hua Ying stop to Chang Xiang Net injection, the internal implementation of large area layoffs. The news spread quickly, let Lindong also sit still, evening 8 o'clock also hurried to Hangzhou a newspaper to clarify "rumors."

Obviously, the lindong was not able to block the past this time.

Whose cheese did you move?

Around Chang Xiang Network business model Summary, many industry people summed up a lot of technical doubts and weaknesses.

After the 2008 Cheong Cheung Net received the injection, the global Travel Network executive editor He Fang questioned.

In her view, Chang Xiang net to customers free installation Travel Management system, information induction and authorization, in the industry is only "pediatrics." Built on the basis of enterprise resources to obtain price advantages, Ctrip, American Express and other competitors can also be applied.

She is more skeptical of what Lindong says is a big flash in the model, namely the addition of the banking system. "ICBC for Cheong Cheung Network customers to provide specific travel expenses of the credit line, Chang Xiang Network in providing services to customers without the need to advance any costs." This mode of operation in the industry has long been not a innovation, in this interest chain, we have not seen how the banks to profit. Chang Xiang Network as a beneficiary, the risk is left to the banks and customers, this business model can really be lasting? ”

According to her understanding of the business Traveller Service, the key to influencing the expansion is how to solve the financial pressure, not the sales and booking system. In other words, how to solve the problem of capital settlement is the key to determining the ultimate success or failure of business models. Service networks, service processes, and vendor relationships are equally important.

This argument is quite reasonable. Through the development of Chang Xiang Network, in the capital settlement problem on the Chang Xiang Net fell, accounts receivable high build forced Lindong to subsidize many times, or from the bank pull loans emergency. And the client side, those big names signed the user finally did not become the long-term customer.

However, the director of a tourism distribution company based in Shanghai offers another perspective. He says the model is usually preferred by the boss, but the people below are not active. He also pointed to the problem related to the current fashionable "grey income" topic.

Lindong has said, Cheong Xiang network cooperation, travel personnel's itinerary, accommodation, etc. for the company is transparent, the cost is also transparent.

"If they are fully promoted, the vendors who sell invoices at the station Pier will probably have a lot less business," he said. Because the entire cost of travel is transparent, business travelers want to buy invoices and so on, corruption travel costs, it is difficult. "Lindong said.

However, a Cheong Cheung net of a former staff also found that business owners have the will to use Chang Xiang Network system, but the employees below may not be willing to use, they will even find all kinds of excuses to resist.

It is naïve to think that the travel outsourcing system of Chang Xiang Network provides new technical support for anti-corruption work. If the government system also uses the Travel outsourcing service of Cheong Cheung Net, which can be controlled by the travel consumption, the expenses incurred by civil servants will undoubtedly be transparent and open, and government agencies can obviously save the financial expenses of travel.

An intriguing fact is that, although Chang Cheung Network has been claiming to study the government's travel plans, but also for government clients, but in fact has not been too many state-owned enterprises and government orders.

In fact, whether the government, state-owned enterprises, or private enterprises travel management, there is a gray trap area. In the absence of integrity and strict supervision, you cannot take away a cheese that belongs to the majority, and offend a large group other than the Big boss.

Is this Chang Xiang network represented by the business travel management industry has been slow to rise the important reason?