Guoqing: Don't go the way of China's electric dealers in the past ten years

April 3 News, Dangdang co-founder and CEO Guoqing at the nineth session of the SME E-commerce conference, said the core competitiveness of the electric business is category. It is understood that this Congress has been held today in Zhengzhou, Henan International Convention and Exhibition Center officially convened. The theme of the conference is "great change, a new era of cross-border electricity merchants", bringing together more than 1000 Cross-border electric Shangping Taiwanese, independent stations, suppliers and service providers to participate in the new form and the hottest topic has become the focus of the electric business industry. At the meeting, Guoqing published the main speech entitled "2014 of electricity quotient and capital".

Dangdang co-founder and CEO Guoqing

The following is a transcript of the speech:

Moderator: Thank Jiaojin for your speech. The next guest will be the first keynote speaker of our event today, and I suggest you get ready to tweet or micro-mail before he plays.

He founded the enterprise subversion of the traditional bookstore, he started his business in 1999, has Li Mouth, and he can acrimony can be basically the headlines. Today we are very honored to have the Guoqing, the co-founder and CEO of Dangdang. Let's have a round of applause.

Moderator: Today you only have 20 minutes, so I hope you spray a bit more ruthless.

Guoqing: Then you must remind me in a quarter of an hour.

First of all, thanks to the Henan provincial government, thank billion power network invited, each year, the forum is the industry exchanges, sharing, one of the most important platform, especially thanks to billion power network in these years to do the efforts. So I said I would like to come, I did not know Zhao Jiancai governor also in.

I share three points, before sharing, I would like to say that Henan E-commerce, whether SMEs or e-commerce, to seek the advantage of the latter is the time. Some people say that this opportunity is fleeting, he is the Guardian, said first seized the platform, not everyone has a different stage. Think about two years ago Dangdang Development Mobile Internet, mobile internet release recruit, find a person very expensive, is a programmer, salary 25,000 month. Two years on, the wireless internet came to three last month: Director, products and technology. It's cheaper than a programmer who dug two years ago. Of course, in the gathering of these talents Baidu, Tencent did not make less contribution. Similarly, China's e-commerce in five years ago, if you ask the Internet in Henan, ask the click-through rate, may no one understand, these are the Internet under the thinking. Now there are a lot of internet talent in every company. Henan Small and medium-sized enterprises want to develop electricity directly in the when, Jing Dong directly dug people on the line. But digging to Zhengzhou from Beijing is very difficult, Beijing dug to live in Zhengzhou, there is a regional difference, no relationship let Zhao Jiancai governor, Jiaojin director of the temptation, get a technology center, is to leave talent in Henan, so we recruit some talent, these people will sooner or later job-hopping.

Back to my three points of view today: first, whether cross-border or domestic, whether electric business, traditional retail or traditional manufacturing, I have always advocated differentiated competition, to create competitive advantages and thresholds. Do not go the way of China's electric dealers in the past ten years, do not make mistakes we made.

Differentiation, this is a basic theory of Mike, all the concept of competition is differentiated competition, this has been recognized by everyone. But Chinese people like to duplicate, Super imitation Show. But you find that the success of the cottage is to find his imitation of the object of the soft rib and regain their advantage. There is no difference in the past, when the book once sold the best, now is also the best. When I was selling books ten years ago, I came to Henan to buy books, Henan People's Chart Society said: You can sell 5 million a year? Brag. And we can now sell 5.7 billion, last year the book sales volume is 200 million volumes.

Chinese books In addition to the textbook is the main Xinhua bookstore, online and offline store books when accounted for 1/3, if not the system distribution, the novel this bestseller when the National Line and under the line of 50%, Henan Publishing book 40–50% is relying on us to sell to the country and overseas. So I didn't come here to let them know, otherwise the big cup of white wine really can't drink. However, everyone to do the electric dealers want to sell books, you say is not my character bad recruit everyone hate me. In the absence of Jingdong before, Ma Yun's president when regarded as the number one enemy, in fact, that time Taobao flow than when the much bigger, I really did not he bold. He had to sell books, I said, what do you do for sale? To leave the Ali Department for six months a year to learn when. Jingdong also want to sell books, Su Ning also sell books last year, the stock market to listen to these people have to sell books, others have 1 billion U.S. dollars, 2 billion U.S. dollars, you have 20 million or 30 million U.S. dollars, immediately the stock price fell, and tumbled. The struggle passed, three years, when the market share has also increased, when the public listed companies, the report is open, my book gross profit margin is 20%, the original is 26%, indeed very beautiful, the result gave me a dozen 20%, do not make money. Jingdong gross margin of 11.5%, Amazon Gross profit margin of 12%, even the logistics costs are not enough. What's going on? Why does my book sell so well? It doesn't matter, we don't analyze the books today.

I am not bragging, I touch this book paper, a Smell I know which publishing house book. Once, the television interview I did not have this item, temporarily take three books let me guess which publishing house book, all guessed right. Each publisher has its own style, including cover design, paper and so on. When now moved to the clothing field, I touch this fabric, a look is batik ink style This is the Mann, not only Dangdang to do this, Dangdang's profit also against the competition. I told Liu, what are we doing here? Amazon, you die pinching my books. My mother and child supplies three years ago also once sold to the first, we put mother and child supplies as an important category, the result of the melee three years, so the Chinese electric power business in addition to Jingdong, Amazon must thank me to attract their strong firepower.

Then three years down again I said old Liu if my mother and child supplies to do the first, you should be the skin care products as your target category, will not be out of a poly-American excellent products, Poly-American superior products than we three who are more. If this is the time when Amazon China treats food as an important category, and the money resources are matched to the food category, there will not be a shop. Why? Don't you read the Michael competition theory? Don't understand, we think you understand, he must be right. His target category must be good. The past 2 billion U.S. dollars in Beijing east, which in any industry, in the United States is also a big money. Have not proved that Michael theory is wrong, is what I want to do for what target category.