From the car to the road, music and electricity business transformation "do subtraction"

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This is a new brand of less than a year on the market, "build the Chinese baby's own safety seat", Chen Ankun for this has been prepared for more than 10 years. As the founder of Road Music, Chen Ankun Frankly, he caught up with the good times, in the right time to make a correct decision.

Find the tuyere that blows the pig

"To find the tuyere that blows up the pig, instead of blindly rushing into action." "For entrepreneurship, Lei has more than once in various occasions to emphasize the importance of this" find Tuyere. "

2005, Chen Ankun had hit such a tuyere, until today he handed up the business card can still see the eight-year operating site brand-car home.

"At that time, we are optimistic about the rapid growth of private cars, the car related to the surrounding supplies will be a good opportunity." "In fact, Chen Ankun really caught up with this wave of e-commerce and automotive supplies development opportunities."

Even in the absence of brand effect, product category complex car peripheral industry, do integrated shop also let Chen Ankun over several years to make money days.

With the car around the industry to increase the number of competitors, the original does not have too many thresholds, gross margin is not very high, at the end of 2010, Chen Ankun Obviously feel "business is one months than one months difficult to do."

Until 2011, the car-headed business began to lose money, the reality forced Chen Ankun have to think about what to do next.

"The transformation is certain, we believe that with the car related to the surrounding industry or should have the opportunity, but specifically how to turn, where to turn, we spent a long time to solve." "This time, in front of Chen Ankun and his team is a fork in the road, each path has its own different way."

Car Forum, car friends Community, automotive electronic products ... These are the Chen Ankun and team research in the negative direction.

"What kind of ability to do what kind of things, our team is rooted in the product of the people." "Although a word can simply sum up Chen Ankun's choice at the time, the process has actually been going on for several months," he said. Until finally, they locked the traffic safety, even child safety seats this subdivision direction. "This is the increase in the level of material, security awareness, every family faces the inevitable demand for consumption." ”

According to the data provided by the road music, China has become the world's largest child safety seat production country in 2011, but most of them are printed on the word "Made in China" sold abroad, compared with 95% of developed countries, the use rate of Chinese child safety seats is less than 1%. More than 18,500 children under the age of 14 die each year from traffic safety accidents, 2.5 times times the death rate in Europe and 2.6 times times that of the United States.

All along, there is no traffic laws and regulations to enforce the safety of children by bus. July 1 last year, the first domestic "motor vehicle child occupant restraint system," the imposition of mandatory standards, seems to let many people see the possibility of further implementation of mandatory norms.

"This is a certain threshold of the industry, but also has great market prospects." Chen Ankun added that the current market for child safety seats accounted for about 600 million, and at an annual rate of 100% natural growth, "in fact, those imported brands are mostly in the domestic production, the market has not been nurtured, even foreign brands have not been able to open up the situation in the market, we have good products, That is to compete with big brands on the same starting line. ”

More importantly, Chen Ankun believes that the signal of the policy will help nurture the market, "as long as it is a little earlier than the tide", it is possible to be brought to the wave to seize the opportunity.

To do subtraction, there are "homes"

The transition is not easy, even in the existing car surrounding areas to find a hole deep dug down.

Chen Ankun's luck and accumulation are not bad, and soon found a large domestic child safety seat of the Foundry factory. "We have been with this factory for nearly a decade, but have never thought of joining forces before, so we have set the direction of development, cooperation will be natural." "If more than 10 years of industry infiltration is of any benefit to Chen Ankun, then finding a breakthrough in product development, design, production and professionalism is the most important aspect," he said.

Soon after the establishment of the road music brand, Chen Ankun began to "do subtraction" for the original company. Gradually withdrew and closed the original car brand, declined new suppliers, and even liquidation and collation of the original inventory and old customer resources. From the original management of thousands of SKU items, to now the main more than 10 products, internal staff streamlining is also a necessary link.

At present, the road music in Shanghai office mainly retains the technology development, product development and some customer service, marketing team personnel. In the words of Chen Ankun, leaving only a part of the original, "cut off the other part is to focus on doing the journey of a thing, this is the second venture, there will be shed to have the harvest." ”

Today, road music has launched nearly 10 independently developed products, each need to be sent to Europe through the international ECE Standard certification of the various tests, as well as the National Quality Management system certification, each set of collision safety test needs million yuan input. To this, Chen Ankun admits: "Do not love dearly, also cannot love dearly." To do a good product, this is necessary and indispensable input. ”

and foreign import brands at a rate of around 3000 yuan price compared to the road music of similar products are mostly priced in between 800 to 2000 yuan. For Chen Ankun, this price makes money, "but not a lot of money." Child safety Seats This is the repeat purchase rate of almost zero industry, product sales growth depends mainly on Word-of-mouth marketing and brand effect. Therefore, to abandon high profits, open the market with cost-effective, even in the market and product level, road music is still using "subtraction" to try to establish their own market.