Dialogue opens new CEO Lin Jie: The entrepreneurial story behind the 1 billion-year running water

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Editor's note: Dingdao is doing a "innovation China" series of interviews, the presentation of products or innovative services, are 100% of Chinese original, in foreign countries can not find similar models to imitate learning. Dingdao This entrepreneurial story series only talk about mature cases, and these projects can continue to scale profits, but also can produce corresponding social value, so the protagonist of the story is basically an old uncle, no 80 and the new sharp figure.

So far I've collected three cases (welcome to share more of the unknown, with the "innovation China" characteristics of the case, the three cases are the first-hand car trade into a standardized transaction of the new CEO Lin Jie, the beer into the Starbucks model online experience Museum Hellobeer Beer CEO Cheng, By the traditional advertising company transformation to do offline entity infant and pregnant chain of Millet CEO Li Zhiheng.

Today I will share with you the first entrepreneurial story about Shanghai's new CEO Lin Jie. Lin Jie is a veteran of Internet industry entrepreneurship, now the cause is called "open a new second-hand car to sell", to help those who want to sell cars through a standardized testing and valuation process, and then introduced the merchant bidding system to the owner of the car to bid, this innovative model, although just started not a few years, But now every month to sell cars 1500 second-hand car, the average price of 80,000 yuan, water has been over billion.

It is well known that China's second-hand car market has a market share of hundreds of millions of every year, almost all parts of the country have large and small second-hand car trading market, under normal circumstances, car owners go to the second-hand market to sell cars, businesses will check the cars in and out, the road run a few laps on the car will be estimated It may be that the same car can be put in different market valuations will vary greatly. Disorderly market competition and non-standard testing process, resulting in second-hand car trading market in China, no one can really make the industry boss, the market is still in uneven environment development.

This article will talk about the opening of the new CEO Lin Jie this market, fast cut. Set up a new second-hand car to sell the site (in fact, the site is just a carrier, core also online), at the same time in Shanghai and other southern cities to establish a line of the store (testing center), the owner through the website booking, and then drove to the offline detection, the entire detection process through the information system to achieve a standardized process, In 30 minutes, the car's problems are centralized detection, and then the test report generated electronic version, sent to the server cloud. Behind the clouds is more than 300 second-hand car merchants, these second-hand cars through the computer or mobile phone can be real-time view of the owner of second-hand cars related information, and then bid on the vehicle, the highest bidder.

The biggest change in the new model is: The whole process, the second-hand car merchants and the people who sell cars do not need to meet, they reached a deal! It is an intermediate bridge, but the bridge is indispensable.

One day in late June, I had a deep communication and dialogue with the new CEO Lin Jie, and through the conversation, you might be able to explore the story behind the new model. The following is a transcript of the dialogue:

Dingdao: Open the new main is "30-minute detection", I have been to some markets, they often from outside to inside the test, and then on the road test, the entire process down may be 30 minutes not necessarily complete, open a new 30-minute test behind how to achieve? Is there a structured system for standardized testing? Different brands of different models of the car how to do the test, the existing system can complete different types of car testing?

Lin Jie: We do have a set of standard process, at the same time we use a large data algorithm, the background according to the same vehicle, similar vehicle detection history, according to the detection technology in the past detection differences and technical capabilities, prompts the detection of technical personnel corresponding detection path, testing items. And we have a professional PDA to record and standardize the inspection process and project. These cumulative data, over time, can improve our detection efficiency and accuracy.

Dingdao: If the merchant successfully bid to the owner of the car, back after a period of time (a week or January), found that the car is out of order, this case open new is how to solve the problem? How to take responsibility? Are you happy in the process of buying the relevant insurance or other precautionary measures?

Lin Jie: You said this could be a 1 per thousand chance. In general, there are several possible dispute issues:

① technical issues, technical issues are divided into two categories, including technical standards and technical implementation issues, the reason for disputes, the whole responsibility to open new commitments.

②, consumer information disclosure is not complete: accident, mortgage or theft (owners do not know). To be responsible for the coordination with the consumer, we will first refund the merchant.

③, national policies and regulations are not clear: some vehicles because of the unclear state policy, can not trade, consumers can only bear losses (very clear government responsibility). We will be responsible for the return of the car with the customer and the first refund to the merchant.

Dingdao: Why do you only do "sell used car" things instead of "buy Used Cars"? In my opinion, a new 30-minute inspection system can also be used on the car dealers, and then let us consumers to buy their second-hand cars.

Lin Jie: We mainly put the second-hand car industry chain into production, circulation, consumption three stages, we believe that the reason for the existence of the industrial chain is to use used cars as a reasonable distribution of goods. Our company only do industrial chain upstream, production phase. We believe that the production phase is the largest, the most concentrated customers, and more likely than retail to scale. In my opinion, we open a new core business is: Supply chain management, management of information flow, logistics, capital flow. Among them: information flow can be extended to the new car business, logistics can solve the transfer and transport of vehicles in different places, capital flow can be extended to consumer loans, supply chain loans.

Dingdao: How many users are there now? How many people are going to drive a new car every day? Generally speaking, how much can the owner sell more than the other channels by driving a new car?

Lin Jie: We are now one months 1500 turnover, the monthly service of 3,500 new customers (license plate). We have a direct quotation of 5% to 10% higher than the second-hand car market, 10% to 20% higher than the 4S shop.

Dingdao: Where is the core profit point for a new model? Can bulk copy form scale profit? In addition, if the domestic out of the same type of platform, by bat such a giant support, open new how to deal with?

Lin Jie: Open a new platform, the current average vehicle transaction price of 80,000 yuan, after the transaction, according to the fixed proportion of car price charge car service. We are currently 4%, starting in 09, our annual price increase, from 0.5% to the present 4% steps a step. In general, the higher the price of a consumer's car, the more we earn, we are in line with the interests of consumers. and the core ability to open a new platform online, more time online is just a portal.

Open new now staff, Shanghai has 250 people (including headquarters), Shenzhen has 50 people. The new cost is not as big as outsiders think. ① if only the direct operating costs related to the car transaction, including marketing costs, opening a new 100 yuan income, 52 yuan is the cost, has 48 yuan of gross profit. (which cost 39 yuan before the transaction cost, 13 yuan after the transaction cost). ②, we are retail enterprises, we each store maturity of 3-6 months, each shop in the annual flow of 100 million or so, similar to the flow of retail enterprises to at least two years to maturity, we have little risk of open shop. ③, our Market size (refers to the second-hand car production phase), China is currently around 300 billion, the next 10 years to 1 trillion or 2 trillion is normal, we will focus on the development of the market. In short, mature fast retail stores, you can reduce the cost of trial and error, not good, if the maturity is 3-6 months, can quickly decide whether to close the shop, so the risk is small.

In other words, our competition online, not on the line, bat such giant enterprises will not pose a threat to us.

Dingdao: When is the new time to expand from the south to the North? So that those of us in Beijing can also enjoy standardized selling services?

Lin Jie: China's second-hand car market is a regional market, the market boundary is divided by the region, divided into Shanghai, Shenzhen, Beijing, Chengdu, Zhengzhou, Wuhan, several regional centers. Second-hand car in the region circulation accounted for more than 90%, the trans-regional circulation is very small. The occupation of the regional centre is to occupy the regional market and the regional channels are unified. Of course, the future of Beijing market we will certainly enter, if not into the Beijing market, open new to the national development, Beijing market we will be very cautious to enter, there is enough certainty will formally enter.

Dingdao: said that the new model, we also talk about Lin General's some personal stories. Lin always first share your study experience, where did the university read? which major? Did you meet some interesting things during your schooling and have an impact on your future venture?

Lin Jie: I graduated from Beijing Machinery Industry College (Dingdao Teacher Note: Now the Beijing Institute of Mechanical Engineering and the Beijing Institute of Information Technology merged to form the Beijing it University), the time of school sophomore when not good reading. When I was a senior in Zhongguancun, reselling the memory, this matter to me has a very big impact on my future entrepreneurial confidence.

Dingdao: Lin always before opening a new, and others co-founded 51 car network, before doing some pioneering projects. What is your motivation every time you start a business? Have you ever thought about what to do if a startup fails?

Lin Jie: Entrepreneurship is divided into two kinds: 1, the beginning of the end. 2. Start with the end. The beginning of the end is speculative thinking, with the current resources and ability to judge opportunities, seize the opportunity to earn more money. I have been like this before the start of the new, the end of the beginning is the strategic thinking, goal-oriented, to create social value as the goal, do not care about the results, only concerned about the process, I am now.

Dingdao: The process of entrepreneurship is not plain sailing, in the course of many years, the forest encountered what problems?

Lin Jie: The Problem of life and death several times, mainly lack of money, fortunately, I have accumulated a number of years of business contacts, these problems are friends to help survive. In fact, my main resources are in Beijing, because the new arrived in Shanghai, to help my friends are Beijing.

Start-up in the process of entrepreneurship, a lot of VC to find, but do not understand us, do not think we value a lot. They suspect that C2B is not large, and because the United States does not have a mature model to refer to, so that VCs do not have a suitable valuation model for us. And most VCs need to be fast and hopefully we'll be happy in the rodeo. These VCs are completely different in our business philosophy, and eventually I didn't accept investment from VCs.

Dingdao: Open a new model if you really want to big, in fact, need a very strong operation team, Lin always in the recruitment of any confusion or experience can share?

Lin Jie: People are our biggest bottleneck, my experience: enterprises in the management of the stage of efficiency, can not rely on capable. To standardize the talent: the value of the concept of consistency, management tools, consistent language communication methods.

In two years, we have three events, in order of precedence:

1. Standardized production of cadres. Through the creation of 6sigma management system, management consulting company has entered the arena.

2, it integration construction. 1.5 To create a unified business system, our existing business systems to integrate into a system, the original system overturned. We have been preparing for two years.

3, to build a mobile internet-oriented marketing system. We are now mainly in the hard, the next two years, we want to use content to obtain users.

Dingdao: Finally, let's ask some questions about the overall situation in the industry. We know that the U.S. second-hand car market is very hot, there are many sophisticated second-hand car market, the United States used car trade why so hot? What can China learn from the United States?

Lin Jie: American Car consumption culture is 100 years older than us. We can learn from America's success in chain, it integration, supply chain extension.

Dingdao: China's second-hand car trade, open the new advocated this O2O model can become mainstream?

Lin Jie: I do not have the exact definition of O2O, as long as customer demand-oriented, it can become mainstream. We only focus on the production phase of second-hand cars, we certainly hope that our model is the main mode of production phase, we also think so. But I have no say in the stage of circulation and consumption.

Summary: In China's internet industry, there are always a group of people behind the silent work is not known, but it is this group of people become the Internet to get through the business of the key, and ultimately this group of people regardless of success, we should pay tribute to it. (The author of this paper is the dean of Dingdao Shiweibo: Dingdao Division of micro-letter public: dingdaoshi123)