Dunhuang Net Wang: E-business is not profitable is a disgrace

Starting early, Wang determined to do a inquiry, trading, payment, logistics, including a station to complete the credit environment of the small wholesale trade online platform. She left the position of BEA China Business development and marketing Director in 2003 and founded the Dunhuang Net in 2004. At that time, "online 365 days Canton Fair" type of foreign trade information providers, such as Alibaba is a brilliant wind.

In retrospect, "as many people say, there is really only a glimmer of light when you start doing this." "Most people may think you're not going to be successful in 99.99%, but I'll turn to the other way: at least I have 0.01% lives," she said. Why don't you try it? "I will do everything I can, unless I am completely sentenced to death and finally out of the game."

After a long period of time, Wang found that "he was born a wild boar", will give up doing a good job to toss, but also very insistent. And colleagues have good people, the French business school in the "entrepreneurial success" standard and Wang, "The result is 90% in line". She is a born entrepreneur.

A very striking feature is "ambitious", which has a clear goal on the first day of its existence, not only for China and global trade, but for global and global trade. On this platform, the future "Italian shoes can be sold to Malaysia, American goods can be sold to Russia, and the Chinese can import other countries ' goods." Similar to most ambitious people, Wang is more petite than expected.

Hold on to a spark in doubt

The first 1.5 of entrepreneurship is Wang's most painful time. Nobody does it, much less discuss it with people: internal questioning, and a wider external disagree.

"The first thing to do is to feel. "Wang does not deny it. And her "not understood" and "Pat the head" behavior, with the car product awareness and other people to join and change. 2006 when the Human resources department of the Dunhuang Network to find Cheping, he did not agree to join at the beginning, even when the Chinese product director of ebay, he also did not know what "Dunhuang net to do." Later joined, according to his own words, is already supported by data: the micro-economic trend has arrived. The number of sellers on ebay's cross-border trade has soared 7 times-fold in the 5 quarter since 2004, and has seen "super sellers" with a monthly turnover of more than 100,000 to 400,000 dollars.

But before the time reversed to that, the Dunhuang network is indeed "internal and internal". Domestic sellers of this model is also skeptical, the first few sellers of Dunhuang nets, are Wang to the Yangtze River delta area "Ruanmoyingpao" back, and even had to promise later on the other side of the phenomenon. In the initial stage, the Shenzhen office of the Dunhuang Network has even adopted the way of "purchasing part of Seller's goods". And the capital side also do not buy, until 2006, the Linchi and Ru Hua Ying and your appearance. As Cheng Zhanlun, managing director of TMT Investment, said, the Dunhuang net, "from the commercial model of advertising to the business model of trading", even in the U.S. market to large-scale development, the number of successful enterprises are not many.

"Is this thing my wishful thinking, daydreaming, or really feasible?" "On the eve of the Dunhuang online line, Wang said the feeling was like" waiting for someone to give you a sentence ", not seeing the results but being exhausted.

"No profit is a disgrace."

Compared with many "predecessors" of the foreign Trade business-to-business, the Dunhuang NET has implemented the system of "charge after transaction completion". The Business-to-business platform, including Alibaba, collects membership fees as its profit model, but "attracts sellers to the Dunhuang net, just the beginning of our work". Although VC people also pointed out that this kind of post-fee system "in the United States is not no, just in other forms of business." Colleagues have been skeptical for a long time: are sellers willing to pay fees? Is there a large enough market space to support a large company?

Show Network vice President Shangxiang said, so do "the site needs a lot of courage," Wang also admitted at the beginning "This is the hardest thing", but for the enterprise is a must first solve the problem, because this point for its follow-up development has the greatest impact. The Dunhuang net initially this model may have a rapid difference from other business-to-business platforms, "but if this is not true, we will not do." Because they want to do a highly scaled business model, "if only to make some money, there is a lot to do." On the other hand, she did not want to be slowly consumed by death, "the sooner the better."

But as the volume of the Dunhuang network expands, there seems to be more and more questions about it. For example, they also suffer from the pain that other peers are experiencing: buyers ' complaints are starting to appear in various forums because of "buying fakes".

For this purpose, the Dunhuang Network has established a trust and Safety system, in which each seller of the Dunhuang Net has a corresponding credit rating, "The buyer can choose different sellers according to the risk preference". At the same time, the Dunhuang network will be 1/3 of strong human resources into the customer service, through MSN, online communication or mail to solve the problem of buyers. The idea of car sense is very simple, become passive and active. "We can solve problems proactively through our customer systems, but it's relatively difficult to solve problems that are dispersed across forums." "And there is an old saying in China called" bad news travels thousands of miles. "

"Enterprise development strategies always have to combine existing resources and capabilities continuously." "This is a process of gradually expanding bargaining power," Wang said. For example, the original Dunhuang network in Cross-border Logistics can only choose the "simplest" express, in this way accumulated some orders, they can gradually go and "more advanced" cooperation, such as gradually introduced after the air, sea, LCL, warehousing and other services. To date, the Dunhuang network can provide customers with EMS, DHL, UPS, FedEx and other companies 40 percent-80 percent discount, but also PayPal in the Asia-Pacific largest partner.

Despite the rapid growth of online trading, do they make money? In 2009, ebay China's online turnover of 900 million U.S. dollars, its Chinese president also claimed that 1000 of ebay's Chinese employees to create more profits than the 18,000 employees of the competitor created profits. Alibaba's previous March performance report shows that the company's annual revenue of 2009 is 3.875 billion yuan, with a net profit of 1.013 billion yuan.

As an unlisted company, the Dunhuang Net has never disclosed its profitability, although Wang said: "We have quite good income and forecast." It is said to have reached a break-even at the end of 2007. "It's hard to rely on a single idea, our style is clear: what kind of input will be rewarded?" And then you run out of your feet. "As an E-commerce veteran, Wang that enterprises, especially E-COMMERCE enterprises can not profit is a disgrace," commerce meaning itself is business, business ' s business.

Brightness: Reverse cycle growth

2008 is a watershed for the Dunhuang net.

As a result of the financial crisis, most of China's small and medium-sized enterprises are difficult days, but the spring of Dunhuang net is coming ahead. This year Dunhuang online trading volume jumped and stood on the 1 billion-yuan level. During the financial crisis, the Dunhuang net monthly growth rate of more than 20% per month, "Daily orders are million."

The financial crisis, partly replaced the Dunhuang network marketing work. On the one hand, a large influx of foreign buyers adapting to the Dunhuang net model. According to statistics, the largest 3,000 importers in the United States accounted for the market share of Chinese market in 2008 fell by 10%, and more and more importers began to try a small number of frequency of the form to avoid risk. In China Commodity Distributing center Yiwu, this kind of change is especially obvious, most purchase "all from original one hundred or two hundred package reduced to 10 20 packages". The financial crisis has also made the "online shopping" more popular, these dispersed buyers around the world "one-time procurement is small, but the procurement frequency is very high."

At the same time, China's supplier behavior is also changing. A garment enterprise in Ningbo, Zhejiang, prides itself on the production capacity of "novelty and renewal", while Fujian's umbrella manufacturers have begun to accept orders as low as hundreds of dollars. "We judge that future purchases will be more frequent, which requires a more flat and networked procurement channel," he said. "Because in any case, China's status as a global production base is no substitute for a while, China still has a large number of small and medium-sized enterprises to rely on exports for a living."

Alibaba's data exactly confirms Wang's judgment. According to its 2009 annual report, Alibaba's total number of paid members in the fourth quarter and the whole year respectively net increase of 36,311 and 183,181, while last year's fourth quarter Alibaba's Chinese supplier member also increased 11,242, the chain growth is 13.2%, the whole year net increase 53,000 Chinese supplier member. Alibaba 2009 years of income, "export pass" has become a strong engine of its growth, which is Ali into a small and medium-sized enterprises to build a foreign trade E-commerce platform.

"This crisis has in fact accelerated our expansion. Wang said, just like the SARS in Alibaba, the U.S. financial crisis in Cisco, Google. The buyers and sellers did not have the "online" demand, then the Dunhuang network needs to educate them, but after the financial crisis this demand suddenly burst out, whether buyers or suppliers are everywhere looking for relevant channels.

This way, the Dunhuang network is still very lucky, after all, no one can predict the arrival of this crisis. But the question is: is the Dunhuang net ready? "Without this crisis, our breakout point may not be in 2010 but the two, and the financial crisis just brought the outbreak forward," he said. "Wang said.