HC CEO Guo: How to squeeze into the door of Business-to-business 2.0?

Chen Chenting

As one of the oldest business-to-business enterprises, after spending 11 years of successful landing in the market, and after 11 years to realize the Hong Kong gem to transfer to the Hong Kong Stock Exchange on the main board of the HC Network (08292. HK) now stands again at a starting point.

The same is true of Guo, CEO of Yu Huicong Network.

The application of the transfer board was confirmed by HKEx, Guo in the mail to employees wrote: "These days I have not slept well, a strong sense of crisis let me seem to return to 2006 years, and the feeling of life and death line!"

This is behind the business-to-business industry, Alibaba in Hong Kong, although only two years, the market environment seems to worsen, the company's push, the credibility of small and medium-sized enterprises to make the industry face greater challenges.

The Ministry of Commerce's "China e-Commerce report (2013)" shows that 2013, China's e-commerce turnover exceeded 10 trillion yuan, of which the network retail sales more than 1.85 trillion yuan. The industry's query is that less than 20% of the online retail market has been pregnant with Alibaba, Beijing, and other large number of well-known electric business enterprises, with more than 80% market share of the enterprise-level market how much imagination space?

The answer is to invest the future in trading and finance.

"b2b1.0 is the era of information and advertising, b2b2.0 is the era of trade and finance, HC Network is standing at the gate of b2b2.0, we fight to squeeze in." Having finished b2b2.0, I retired. Guo explains.

How far is b2b2.0?

The embarrassment of the current business-to-business market is evident from Alibaba's business trajectory.

Alibaba, one of the biggest cash-cow businesses, has been on Taobao's home. After Alibaba's sensational listing in the US in September this year, Alibaba has given the industry more access to the Internet, mobile Internet, O2O and other fields, but the business-to-business business it relies on is not as much ink.

Business-to-business is like "flies on the glass, there is no future bright", this is the founder of HC Guofanseng once in the business industry to say an astonishing phrase.

As a start-up earlier than Alibaba, into business-to-business but also late in Alibaba company, from 2003 to become the first listed Business-to-business Enterprises, and then to 2014 the success of the board, Business-to-business now is the trend of the HC network can not avoid the problem.

In Guo's view, the 1.0 model of the Business-to-business platform with information and advertising as its main revenue pattern has hit the ceiling. This year, business-to-business information advertising market size of about 24 billion yuan, of which domestic trade about 8 billion yuan market, and Ali accounted for 9.8 billion yuan, HC net accounted for 1 billion yuan.

Comparatively speaking, Guo more optimistic about the b2b2.0 era, the profit model will shift from advertising revenue to trading Commission, Internet finance and ancillary services. "Business-to-business and Business-to-consumer can do deals, and customers naturally enter the transaction after they have the necessary information." According to incomplete statistics, the size of the business-to-business transaction is about 100 trillion yuan this year, which shows that the business-to-business market deals more, the market is bigger, and the growth opportunities of HC and Ali are great. Even if you only do 1/1000 of the market, there will be great value. ”

In fact, the Guo has already made a fuss about finance and trading before the turn-board listing. 2013 HC Network and China Minsheng Bank to provide credit services for small and medium-sized enterprises; At the end of 2013, combined with the digital investment of Shenzhou 1 billion to set up a small loan company.

"In fact, two years earlier, Alibaba business-to-business companies are to do 2.0, but the capital market could not be bought, so Ali can only return the city, do revolutionary action." 1.0 is not on the scale, you do 2.0 will have problems. HC Online market is too early, often to and the capital market game, while running and changing clothes, even run with wear. Guo explains why the transition began at this point in time.

Radical merger and acquisition expansion

In Guo's view, the development of business-to-business must have the favor of capital. "b2b1.0 why slow, lack of capital promotion." The development of business-to-business must be favored by capital, and some people will have great development. ”

And from the gem to the motherboard to the Yu Huicong network, the expansion of the investor circle, the most direct benefit is financing, the full use of the power of the capital market.

To this end, Guo openly to the media, Hui Cong to the Hong Kong motherboard will launch after the radical merger.

In his understanding, the future of business-to-business there are three models, free market model, vertical Industry mall model and the model of self-electric business.

"Business-to-business free market model, China has Ali, Hui Cong Two is enough, it is difficult to survive the third house." HC focused on the free market model and vertical industry mall model, but also very optimistic about the self-employed. ”

To this end, HC has announced the subscription of the core city shares, the value of HK $155 million, the core city of the division was issued at that time 3.55% of equity, as the latter cornerstone investors. Branch through the core city is the main IC components of the business-to-business vertical electricity quotient, the annual turnover of nearly 10 billion yuan, with online transactions and financial services system.

In addition, on September 30, HC Network also announced the acquisition of Anti-counterfeiting technology company trillion letter information of 56% shares, to become its controlling shareholder, for the acquisition, Guo said the main is bullish anti-counterfeiting technology market, and the industrial line of the Hui Cong expansion.

"I want to be able to buy a type of vertical company for a quarter. Investment standard one is to expand the product line, do not involve the HC net before the business, another is vertical line, buy a product vertical company, try a lot of previously never involved in the industry. Guo explained.