"Electric business Veteran" Again War Lake, Huang Jo: I do not have the blood of investors

"I do not have the blood of investors, or the people of the dry industry, so has been looking for a new opportunity, now there are 28,590 domestic electricity dealers, to do the No. 28591 house is not my purpose." "To the tiger sniff say this sentence person is the original Dangdang COO, Day Cat (original Taobao Mall) founder general manager Huang Jo."

Huang Jo, 54 years old, has nearly 30 years of retail experience. In June 2011, he joined the investment in Warburg after his departure. "I came out from the electric circle, went to Warburg investment for three years, from my own speaking, there is so Yigujin, is to revolutionize some of the existing practice of electricity." "Huang Jo told Tiger sniffing, he began in May 2014 to prepare his own entrepreneurial project" Hundred "(bainbai.com), and in November on the online test, just some imported goods sales. Since the middle of March this year, the revised version of the hundred-percent official business, in the existing commodity platform, the introduction of "Special Purchase Club", that is, members of the electricity producers, paying members to enjoy the website shopping parity discount-station side said, to ensure that the shipment price and purchase price consistent, hundred do not earn a penny difference.

Surprisingly, Huang Jo said, the angel investors are not aware of the hundreds of the model to do the above adjustment, but also thought it is a common import commodity electric business platform.

Simply put, hundred is a member of the rapid consumer products online retail platform, there are "member of the Electric dealer" and "cross-border power quotient" double brand.

Why is hundred and jet different?

"Member of the Electric dealer" as the name implies, the electric business platform will pay members to provide price concessions or special services, for consumers, in addition to the general registered members of lower prices than the goods, its service experience and related rights and interests more easily protected. And for the electric business platform, by reducing the consumer purchase screening, the purchase decision time cost, unifies the low price and the directional service to glue the user, thus improves the repurchase rate. Online retail, Germany Metro supermarket and the United States Costco supermarkets have successfully adopted the "Membership system."

Tiger Sniff has reported that a member of the United States called Jet's membership of the electricity business, it has not been online, three rounds of financing accumulated 220 million U.S. dollars, and has 350,000 early members, the article describes:

Jet will not be open to everyone: After a 90-day free trial period, a membership fee must be paid to continue to use. In return, however, Jet's price is 10% to 15% lower than that of other stores.

Huang Jo says hundred and jet are not exactly the same. ' The jet model doesn't work in China, ' he said. Members first in the jet to put forward their own needs, fill out their own address, and then jet based on database data calculations, matching the nearest member, the most time-sensitive, the most appropriate price of the merchant, pushed to the member, as long as the completion of online orders, merchants will be door-to-door. In fact, Jet is more like a location-based shopping platform based on lbs, requires a strong database marketing and operational capabilities, and currently there is no such an open retail data platform in China, offline retailers do not have such a perfect data background. ”

"While both hundred and jet are based on member-Service electric companies, we offer our members a one-stop shopping service for their basic lifestyle," he said. "Huang Jo Introduction," Hundred Member Service ' Special Purchase club ', the charge has 80 yuan/half year and 150 yuan/year these two kinds. Members and Non-members have two sets of price system, the price difference between 25% to 30%. Because all the goods are imported high quality, so hundred is to do the middle class consumer groups, regardless of ' cock silk '. ”

At present, the hundred main "grain and oil non-staple food, snack foods, Chong drinks, washing day, frozen seafood" five categories, more than 600 categories, the next step will be extended to more than 1000 categories. Huang Jo told Tiger Sniff, from the data of the public testing phase, hundred percent of the customer unit price in 160-180 yuan between, conservative estimates, hundred members of the annual shopping frequency will be more than 8 times.

At this stage, hundred of the goods are mainly to take the customs and trade channels, after financing, more than 80% of the funds will be used for storage construction, to direct overseas mining. For the present very fire "limited-timed special sale" mode, Huang Jo said, hundred will not adopt, and will not build a burst, corresponding to do "daily recommendation." Hundred is to create a simple and fast shopping environment, rather than cultivate users only care about prices and blindly follow the habit. In the future, hundred will work hard at the mobile end, but also to do an open platform may, but the prerequisite is to ensure that the shipment price and purchase price consistent.

A few insights into retail and electrical business

If you have 30 years retail experience, and Ma Yun, guoqing and other electric business entrepreneurs have worked together, but the latter is not the same, although he has been in the shopping malls for many years, the body still has quite obvious speculative, rational breath, often in those entrepreneurs to change the rules of the game in order to more aggressive when the idea is not to play.

His venture, claiming to be "redefining retail", comes from his own thinking about electricity dealers, especially the FMCG. Here are some of his share points.

√ Family will become a breakthrough in the rapid elimination of goods

At present, the Chinese online shopping in the majority of the population, they formed a family, fast consumer demand highlights, so Huang Jo's first judgment, fast consumer goods will become after clothing, cosmetics, books, 3C digital, the next hot spot of the electric dealer. The most important difference between FMCG and other commodities is the family unit, not the individual.

Huang Jo's second judgment, these years domestic consumer's consumption ability in the upgrading, now many consumer's performance is somewhat misshapen. For example, many people spend ten thousand or twenty thousand dollars to buy a LV bag, and those people's income level is not enough to support the consumption capacity at that time, so as people's consumption management awareness, upgrading of imports of goods will certainly rise, but will not focus on luxury goods, but focus on the needs of basic products.

√ Changing the relationship between retailers and consumers

In the past, retailers were trying to make money for consumers, and the two sides were opposite in price. Huang Jo Design Hundred, consider to radically change the relationship between retailers and consumers-become consumers are retailers (platform) employers.

After the two sides become employment relations, they will stand on the same side. In order to ensure the rights and interests of the employers, retailers must start from the consumer's point of view and try their best to make shopping easier for consumers, buy the lowest price, the most reliable quality goods, and remove the increase in retail prices. Huang Jo:

"I charge you 150 dollars a year membership fee, spread to you a year in my place to buy 5000 dollars of merchandise, there are 3%, plainly your fare increase rate is only 2% or 3%." If it is not a member, in this 5000, the fare increase rate is 30%, you have to pay more than 1500, and in the member here as long as pay 150 yuan membership fee, I will earn your that point membership fee. ”

√ Break the "low into high out" retail rules

From ancient times until now, no country, no division of the industry, "low near High" is a business to follow a principle. Return to the question of fare increase rate. Generally speaking, the rate of increase in cosmetics is 50%, the normal rate of increase is 25%. "Huang Jo said" in this case, all the goods are not to increase prices, in order to sell, but also can not be owed, users need to bear their own postage. ”

"In individual cases, the price of the same item on other platforms is lower than that of the hundred, which may be our higher price, or the other side's malicious promotion." Members can call a complaint, verify that if it is not the above reasons, then this member can become our buyer, and encouraged him to share this item to the ' Special Purchase club ' members. Huang Jo added.

"Making retail a service, not a sale" is the direction of Huang Jo change retailing. Because, most of the electric business is through advertising to attract customers, to earn the difference. Avoid marketing costs higher than net profit, and the loss of the situation, the typical example is Jingdong.

√ Fully transparent website, the formation of Word-of-mouth marketing

Huang Jo said: "Now hundred members of the equivalent of their own boss, the boss hired us to buy things, it is impossible to buy and then add 20% to the boss, we will all the cost of all transparent open, purchase orders can be for members to see, distribution is using Third-party Logistics, the offer is also full transparent." ”

In accordance with Huang Jo's vision, to provide members with full transparency services, on the one hand, can break the concerns of members, the other side is to gain their trust and form Word-of-mouth, in the social media to share the spread. But this is also the biggest difficulty, because hundred chooses the membership model, abandons the retail spreads the revenue channel, the profit ability indirect restriction to the marketing investment. Low-cost access to users will be a life of the book. In this way, the line mainly rely on the user Word-of-mouth, line by the conversion of precision casting.

In Huang Jo view, the threshold of the model of the hundred members of the system is to test the ability to select goods, the second is to the consumer psychological control ability to be strong. Get the first batch of original members is the most difficult, their first stage goal is to obtain 100,000 members, 500,000 members will be able to support the normal operation of the site, 5 million members, the site can lay an absolute competitive advantage.

Digression

When asked about the hundred's core team, Huang Jo told Tiger sniffing:

"Our team is not one of my old subordinates, this is not the same as most start-up companies, the average person to start a business, the boss to find a few little brother over too common." I think the entrepreneurial reality is based on a common ideal, the so-called ' brother company ' thing, the old subordinate is to you have personal feelings, but he may not have the same entrepreneurial ambition and ambition.

We are basically looking for experienced, not experienced people. For example, my core team has come from the physical retail, but also from the Orchid Pavilion set potential, poly-Mei, glutinous rice, but they are not those company executives, that is to say, I use skilled, but I do not use a high proficient.

Why? To say that the cost is too high, we can not afford it. Second, the Dan is too high he has passed the time of his own work, more is to guide others, we start a business is to really work, not senior operational level of people.

Entrepreneurship without the old men, with skilled, but not a high proficient, these two points may also be the 54-Year-old entrepreneurial motto of the veteran.