"Godfather of Entrepreneurship" hanting: Every consumption upgrade is an opportunity to start a business

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In 10 years, I created 3 Nasdaq-listed companies with a market capitalisation of more than 10 billion, and many of the media called me the "godfather of Entrepreneurship". I can't afford this name, I'm scared and I often tease myself that I am "lucky". However, my adventure is not simply accidental and simple luck, today's China, it is a good opportunity to start a business. In 10 years, I have done 3 listed companies, but also a lot of Chinese entrepreneurial opportunities in a supporting.

We are like walking into a mining area where gold is everywhere, where gold is everywhere, you just have to pick it up, leaning is full of wealth. This is an entrepreneurial era, the opportunity to have the ability of people, should not hesitate to plunge into the entrepreneurial wave. Otherwise, when you are old and your grandchildren ask you, you will regret for a lifetime.

The rise of the rising: they love spending more

A few days ago to see a data: The use of Apple mobile phone, 80 of people, 78% of the total. At first not too convinced, come back to see the data of China, surprised: the hotel guests of China, the proportion of customers, also close to 70%.

When I first entered the hotel chain, I actually thought about product design with my own aesthetic and values. Typical customer prototypes are: More than 30 years old, male, flat head, college degree, new beauty suitcase, business casual outfit, Tumi mountaineering bag, with IBM laptop, business trip. Hotel decoration style, pricing, free internet, free computer in the lobby, free printing and photocopying services, are based on such customer prototype design.

More than 10 years later, the It man who had a small flat head had already entered the middle age, and as a typical customer of the economical hotel was not suitable. Sit down in the hanting lobby for a while, and you'll find more than 20-year-olds mostly. And many people do not seem to be on business trip, may be to travel, may be romantic tryst with their girlfriends, or play a night of the game, the morning to the hotel to take a bath and rest ... These 80, the subject of the consumer, travel diversity increased, the impulse of consumption increased, aesthetic interest, value orientation also changes.

80, the population and 60, whenever are very different: they are more willing to spend; Although most people are not very well paid, they do not live a life of hardship, they are more self, they love freedom, they are more open and positive, they are more personality ... They are a bunch of different people.

We also do not need to "pale", the new generation is also a person, not from the "star" guests. They are equally eager to be loved and recognized; they also like to eat and drink. Whether it is our age of 60, whenever, or now as a consumer of 80, a generation, or even the next 2000 years, human nature is interlinked. There is no deviation from what is in the nature of human nature.

"Institutional dividend" and "global dividend" promote entrepreneurial boom

Every age has its own theme. 100 years ago in China, the main theme was to overthrow the imperial power, the Republic, the Revolution; in the 340 's, the theme was war, and the people I was born with were mainly the Cultural Revolution, parades, slogans, character, and runaways. At that time, if someone said to start a business, it is impossible. A small business, also a capitalist tail, is to be cut off.

After the reform and opening-up, we began to pay attention to the people's livelihood and economy from the tide of revolution. Unlike in Western developed countries, China's production factors are long limited and binding, China's products, goods, service providers are almost blank. It's like digging in a pristine land, rich in resources, like mining on a bare mine, with gold everywhere. A little more sensitive people can find entrepreneurial opportunities; A little more diligent can do well. The probability of a successful venture is great. This is what people often refer to as the "institutional dividend".

Another driver of the entrepreneurial boom is the "global dividend". With the development of Internet technology and the change of Cold War thinking, the world economy is in the process of getting out of the country and the globalization. Technology, talent, capital, brand and other key factors of production, are no longer confined to a country or region, but to the rapid development, more opportunities, high profits of the place flow. After the reform and opening-up, China can no doubt compare with the early America, and become a new hotspot of talent and fund pooling.

The three listed companies I set up have been investing on international capital for the initial investment. IDG, Ding FAI, become VC, PE and angel investors from all over the world, including China, the United States, Europe, shareholders are our investors. We choose to be listed in the United States Nasdaq, the majority of investors are the United States, European funds, of course, including Hong Kong, mainland Chinese investors.

Chinese enterprises can not only easily attract international capital, the flow of talent is more so. In the early years of reform and opening-up, university graduates, including me, went to America to study in the ultimate dream. If you can stay in America and get a green card, it's more like staying in heaven. But nowadays many aspiring students return to China for employment and entrepreneurship. For example, our entrepreneurial partners Liang Jianzhang, Shen, are studying in the United States, and then gave up well-paid multinational companies to work, back to China to start a business development. "Institutional dividend" and "global dividend" superimposed together, led to China's entrepreneurial boom. Entrepreneurship is the main melody of our time.

From "Made in China" to "China service"

Another dividend is the "demographic dividend". It not only nourishes the pomp of "Made in China", but also breeds the wonders of "Chinese service". China has used a lot of cheap labor to achieve the world's "Made in China" miracle. The earth is full of industrial parks, everywhere in the opening of factories, investment; from the clothes of African chiefs to Christmas children's toys, from European yachts to the best-selling iphone in Apple Stores, none is "Made in".

"Made in China" does solve the employment of many towns and rural people, accelerates the process of urbanization, and brings a large amount of foreign exchange reserves; before the land finance, the local government revenue mainly relies on the manufacturing industry. But manufacturing can create a handful of wealthy business owners, and many of the workers on the assembly line are still not high on the middle class, and the low-cost advantage of cheap labor, cheap land and tax incentives is hard to keep, and the rugged development model is causing great damage to the environment, The smog that haunts many cities is one of the consequences.

Therefore, with the "Made in China" will be the vast number of Chinese people from "food and clothing" to "well-off", the service industry's huge space has emerged. The population is now more than 300 million, almost the size of the nation's population. In the future, China's urbanization is more than 50%, and the urban population will be over 600 million. These population bases form the world's largest consumer power. This group of people's consumption will drive the world's largest service industry chain. This is the "China service" concept that I put forward in 2008.

"China services" will be more diverse practitioners: There are hotel attendants, there are offices in suits and lawyers, there are open shop, open a restaurant of small business owners, there will be start-up company CEO and investors. "China service" will bring a multi-level full employment, but also to all sectors of society to bring the corresponding income, the formation of the middle class mainly depends on the development and growth of the service industry.

The service industry is different from the manufacturing industry, the consumption of resources such as energy and land is small, which can alleviate the influence of the manufacturing industry on the environment and greatly improve people's quality of life. "Made in China" is actually a poor Chinese people to make cheap products for the whole world, and "Chinese service" is just the rich Chinese people make their life better.

Whether it is the state-run ICBC, China Mobile, or foreign-owned Yum group, including private Tencent, Alibaba, has become a world-class enterprise ranks. They are all nourished and accomplished by China's huge consumer population. With a huge population, China will form a huge market for domestic demand. And this market, will nourish many startups, among them will appear many services giant enterprise.

As a result, China's entrepreneurial opportunities are more in the service sector. "Made in China" has come to a low growth, slow growth of the inflection point, the future in the service sector has more opportunities, more space, and services enterprises have the opportunity to grow into world-class enterprises, world-class brands.

Mass consumption is easiest to do on a large scale

According to the research report on contemporary Chinese social strata, I sorted out the scale chart of the Chinese people: 21% of the population lives in poverty, and the workers, farmers and unemployed, unemployed and underemployed who are underemployed need only to maintain the basic means of subsistence, such as eating, dressing, sleeping, etc. It is difficult to have great commercial value. And the top tier accounts for 7%, the demand will be very personalized, and often "worship", consumer standards and value system will be in line with international standards. Start-ups are often harder to match with international brands PK. Recently, 8 of the central government has made the consumption of some senior people move downward, returning to mass consumption.

As a result, China's consumer main body is 72% of the middle and lower levels, plus the 3~4%. This part of the population constitute the main body of Chinese consumption, but also the most should be concerned about the group of enterprises. For example, in the hotel, hanting customers have covered some workers, migrant workers, business staff. With the rising minimum wage and the shortage of front-line labor, the future income of this group will continue, which will further improve their consumption of the Chinese court such as the proportion of economic hotels.

Will this social structure change significantly in the next 10 years and 20? Even in our lifetimes, I believe there will be no structural change.

First, it is not easy to drastically reduce the population below the poverty line. At present, the State guarantees their basic life by means of transfer of payment. To promote employment, we must ensure the rapid growth of GDP, at least 8% annual average. Such speed, the country may not be affordable, for the environment and the destructive impact of resources, is not the future direction of government development. Therefore, China will have a large proportion of the poor in a longer period of time.

In addition, will consumer upgrades lead to high-end brand transfer? The answer is clearer: to make 72% of the population rich in Europe, for a developing country like China, with a weak foundation and a population of more than a century, it may take centuries to catch up with Europe and the United States.

Therefore, mass consumption will be the mainstream of consumption. This group of customers is very sensitive to price, so cost-controlling companies will be more promising. It has been summed up that "made in China" is characterized by "well enough", as is the characteristic of "Chinese service". In the mass market, speed and market share is the key, based on Low-cost "good enough" will be a big way.

Then look at the success of Taobao and the prosperity of group buying, also have the typical characteristics of mass consumption: first, the population base is big, the second is price-sensitive. These two factors have also contributed to the birth of several of the world's largest Internet companies. Tencent's QQ and micro-letter, but also the same logic at work, based on the Big V and elite development of micro-blog is gradually ignored. In China, who caught the majority of the middle and lower strata of the population, who got the golden key to success, who opened the heap of treasure wealth of the door, no wonder Jack Ma founded the enterprise called "Alibaba".

Every consumption upgrade is an opportunity to start a business

Although the main body of consumption is the middle and lower classes, but with the deepening of urbanization and new technologies, new products in the global synchronization, Chinese consumers, especially middle-level consumers, the trend of consumer escalation is also very obvious.

The most typical is the communication tool. 90 's waist not a Motorola "Call machine" is the standard of business people, and then a little bit of the triad is the common "mobile phone"; Nokia's appearance has subverted Motorola Eminence's situation, the handset began to be lightweight, popularized; down to Nokia is Apple, Completely changed the way people use mobile phones: can listen to music, can take pictures, can surf the internet, mail, etc., not to mention how convenient the cloud system. From "Call machine" to "tyrants gold", is very typical consumption upgrades.

In the hotel area, do you remember the early guest house? Enter the room to the aunt carrying a string of keys to help you open the door. There are usually several beds in the room, and people who don't know live together; The hot water won't be there for 24 hours; The bathroom is not in the room. Han court such a budget hotel after the emergence of a thorough improvement of the Chinese travel accommodation, travel quality of life has been greatly improved, so that the hotel opened on the bursting, sometimes even a room difficult to ask. However, in recent years, many complaints, that the economy of cheap hotel facilities, the grade is not enough, the unit travel standards are not used. But the traditional 3~4 star hotel and the price is high, the facility is complicated and old, the service is old-fashioned. At this time, we launched a mid-range brand-the whole season, a new design and temperament, the integration of the Oriental simplicity of the United States and Western comfort, High-tech, affordable, low-key and peaceful. Once launched, is also praised and added, Shanghai, Beijing, the entire quarter opened two or three months on the full house.

In recent years, the trend of leisure vacation is also very obvious. The middle class has a house, a home, leisure and money to enjoy the holiday. We have launched a holiday brand "diffuse heart" to meet the needs of leisure and vacation.

Picture of all Seasons Hotel Shanghai Zhao Ka Bang Road Branch

Urbanization led to more people to join the consumer population, the middle of the production of some people to promote upward. China's consumption trend will be the integration and interaction of these two trends. We can use consumer upgrades to create new business models and subvert traditional business models.

Mobility, socializing gives entrepreneurs the opportunity to challenge the big guy.

With the development of new technologies, especially the popularity of smartphones (which, according to statistics, have been close to 400 million of smartphone ownership), the way people communicate is changing, the way they are traded, and lifestyles are changing.

Newspapers are being phased out, people are moving from paper media to the Internet, now transferred to the mobile terminal; In the subway, the bus, in the past everyone chatting, joking, now everyone in the bow to play micro-letter; The original taxi basically by waving, now use mobile phone to call the car; The original meal, the restaurant by friends recommended, Now look at the public comments on the phone.

The mobile end of China's reservation in less than a year time, has been nearly 40% of the proportion, the future may be more than 50%, based on the telephone call center no longer expansion, nor need. Ctrip spent a huge amount of money in nantong construction of the tens of thousands of-person capacity of the call center, the possible utilization rate will only be getting lower.

Internet-based microblogs were quickly replaced by micro-letters based on mobile internet. The advantage of micro-credit is social circle, not purely from the media. How many can big V have? The most common communication in life is the social circle. In the United States, this is also the case: the Web-era search King Yahoo was easily replaced by Google, and Facebook, Twitter and other social networking sites, but also make Google less dazzling bright.

The trends of mobility and socialization not only subvert the existing Internet landscape, but also provide entrepreneurs with a chance to challenge the big guy.