Is the bag going to be sold? CEO Reflection Mode Error

January 23, Fast Schoolbag CEO Xu Zhiming on Weibo on the public "Hawking" Fast schoolbag, in the industry caused no small repercussions. The start-up company, which was founded in 2010 to be an "online 711", has become a focus in the industry with its unique "one-hour delivery" service.

"If it is the last two years to create a fast schoolbag, I will not choose to build the distribution," "If there are 5 million more, fast schoolbags may be able to endure," its founder Xu Zhiming recently said.

"(but) for entrepreneurs, all ' if ' are meaningless hypotheses. "When it comes to the entrepreneurial experience of Fast schoolbags, Xu Zhiming said sadly.

Is the "1-hour delivery" mode wrong?

"The pattern is related to the time point. 2010 I do 1 hours to send a little too ahead, so when the martyrs. Xu Zhiming laughs.

June 9, 2010, the fast bag set up, the slogan is to create "online 711", but the first year the main sale of books. Operating ideas are free shipping, self-built logistics and warehousing. In the 2011, the fast-schoolbag tried to do marketing on the burgeoning microblog, a cannon red, saving a large amount of company-initiated marketing costs.

"I never doubted my own pattern. Xu Zhiming said that the service is valuable to customers, but also a point of transmission, but the implementation of the way there are times limitations.

In the last two years, the distribution of electrical business, short-term distribution needs are more and more exuberant, Jingdong Mall, Suning easy to buy, Amazon and so on are pushing fast delivery service. But the 1 small delivery model was too difficult to implement in 2010.

A very clear background is: 2010 China's smartphone has not been popular, the whole idea and operation of the bag is based on the PC, can not be combined with geographical location and mobile phones to solve the problem of efficient allocation of human resources.

Xu Zhiming recalled that he had tried to notify the distribution by SMS, but the implementation of the effect is poor and chose to give up. At first, he divided Beijing into more than 30 areas, each of which was responsible for a piece of the area where the goods were kept at the distribution staff's home. However, due to the high demand for personnel stability, this model is changed into centralized warehousing, which increases the storage cost.

Is it appropriate to lead the book?

In fact, 1-hour service also leads to a lot of problems, such as the use of this service to do book distribution is appropriate, distribution team how to build, charging mode and logistics how to match.

However, in the early days of the beginning of the book to choose Books Distribution, Xu Zhiming has its own reasons.

Before the establishment of the fast schoolbag, Xu Zhiming has been in the book industry more than 10, and launched the Dragon Media online bookstore. He believes that books are characterized by extremely standardized and priced goods. Consumers can see in advance what book books are and are able to visually view discounts.

In addition, book Sales is on sale, the knot period is relatively long, this is not sufficient for the initial capital of the fast schoolbag is very important. And the earliest use of electronic commerce in China with a group of people are buying books crowd.

In the "Jobs biography" listed in the three days, fast schoolbag sales more than 20,000 copies. This is a gratifying achievement. But the Han Shu package has been questioned whether the user's demand for a distribution book Service is too narrow and whether the buyer really needs an hour to deliver the service.

For fast schoolbags, the fatal problem comes.

As Xu Zhiming says, there are actually not so many bestsellers to maintain this high sales. More importantly, people who buy books are less sensitive to delivery times. One-hour service is not a strong demand for this segment of the population.

Overwhelmed by the self-built distribution

Dangdang CEO Guoqing has publicly said that China's book market scale of only 30 billion yuan, and operating too difficult, the industry is characterized by 800,000 varieties, low prices, low gross margin. But in this low margin of the book industry, Xu Zhiming has made a decision that he now regrets, the self-built distribution team.

For the self-built distribution team, Xu Zhiming has obvious regrets. It is understood that the human cost of fast schoolbags to account for the entire operating costs of 70%-80%. This is a bit overweight for startups, especially startups that don't have enough money.

Xu Zhiming admits such a point. He said that over the past few years the main compensation in the manpower, in this piece of the annual fast schoolbags to be affixed to 3 million, five years a total loss of 15 million.

In an interview in 2012, Xu Zhiming said that the faster the cost of delivery, the less it would be to distribute 12-14 per day to the test delivery staff. But the speed of the rapid development of schoolbags has not let the distribution staff to achieve saturation, but to the logistics and distribution staff of the fixed wage is not less.

Xu Zhiming said that the fast schoolbags do not have enough money to change the distribution model, the annual cost of human resources in the huge amount of money to let fast schoolbags in the strategy of some "do not open hands and feet."

Xu Zhiming said he was very appreciative of the e-generation mode of cooperation, that is, the driver is a part-time, e generation driving orders by the driver, according to each single will charge the driver information fee.

Charging mode and capital chain

2010, the domestic electricity business competition brutal, Jingdong, Dangdang and so on do not charge freight, fast schoolbag can only keep up. In addition, in the early development of fast schoolbags, customer unit Price is not high, if the charge will be lost a large number of price-sensitive customers. But in the follow-up development process, although the fast Schoolbag's customer unit price has been improved, but still did not choose to collect the expense.

There is no freight revenue and gross profit and the number of passengers is not to be a reason for the lack of funds for fast schoolbags. The start-up fund for the Fast Schoolbag is 3 million RMB.

Start to do book distribution, for Xu Zhiming, on the one hand is familiar with the choice, on the other hand, some forced ingredients, because the capital restrictions lead to fast schoolbags can not choose other more suitable commodity category to sell.

In addition to the speed of delivery, fast schoolbags have tried 1 hours to send medicine. The reason for the failure Xu Zhiming himself talked about a lot, in addition to distribution mode, the 1-hour concept was also some ahead of time, he also thought he was in the mobile internet age ideas change not fast enough.

In the fast-bag business in a few years, the capital operation has not been very smooth. Xu Zhiming revealed that the April 2011 bag had signed a 3 million-dollar investment letter with an investment agency, but in July the investment agency broke the contract. As the fast-schoolbags have turned down other investors, they have not been able to get other investments very quickly in the ensuing time.

The lack of funds so that the fast bag can not be in the mobile Internet tide when the rise, in time to enter the mobile field.

The model of a similar emerging company

For fast schoolbags, many of the patterns it has tried have become a hot area today. The recent rise of many companies have more or less can see the shadow of fast schoolbags, such as love fresh bees, Community 001, the community worry-free, the United States Instacart.

Just got 210 million dollars financing Instacart main fast delivery mode, and the model of the fast schoolbag is somewhat similar. The difference is that the company at the beginning of the charge of freight, and the distribution of people to take the way the package of cooperation.

Without their own products, Instacart does not need to build warehouses, and its main purchase is the Xu Zhiming that the gross profit of the daily groceries. Instacart's main income comes from freight rather than goods.

The difference between the love of fresh bees is to draw a large number of communities in the convenience store as a distribution point, the general requirements of groceries to the convenience store to earn their own distribution fee, love the fresh bees themselves operating relatively characteristic food.

Now, these similar companies have become the pet of venture capital, but the Han Shu package is desperate and forced to sell money because of no follow-up funds. This makes Xu Zhiming quite feeling. He said that the climate, geography, people and, for entrepreneurs, "particularly important."

Looking back on his entrepreneurial experience for nearly 5 years, Xu Zhiming a little bit of advice for startups--must have a particularly sharp, clear positioning that can poke users into pain points. And for his future, he said he wanted to see the decision of the buyer in the future.

"I'm not going to start a business anymore because I'm too old for the internet industry," says Xu Zhiming, who prefers to be an angel investor and invest in other people's dreams in the future.

The entrepreneurial experience of the fast Schoolbag

January 23, Fast Schoolbag CEO Xu Zhiming on Weibo on the public "Hawking" Fast schoolbag, in the industry caused no small repercussions. The start-up company, which was founded in 2010 to be an "online 711", has become a focus in the industry with its unique "one-hour delivery" service.

The one-hour service is not the first, there were many similar companies around 2010, such as 2000 years of "E Country one hour", but these companies have long disappeared in the wave of internet development. And the ups and downs of the fast-schoolbags became a microcosm of the start-up companies of that era.

Fast Bag Development Timeline:

June 9, 2010, the fast bag set up, the slogan is to build online 711, but the first year the main selling books. Operating ideas are free shipping, self-built logistics and warehousing.

In the 2011, Fast Schoolbags tried to sell on the burgeoning microblog, saving a large amount of marketing money. This year, the school bag began to invest funds to build the technical team.

March 2012, the fast schoolbag got 9 million RMB financing, began to realize the convenience store idea expands the category. As a convenience store merchandise customer Unit price and gross profit is relatively low, fast bag began to do imported food, customer unit price and gross margin have been greatly improved.

This year's data show that the number of fast schoolbags staff of 80 people, distribution team of 60 people. In the whole cost of manpower accounted for 70%-80%, warehousing costs about 10%.

2013, the fast schoolbag performance reached 10 million yuan, but did not find an effective way to quickly increase the number of passengers, which is Xu Zhiming the most fatal problem. This year the school bag on-line the independent research and development PC and the mobile end system.

September 2014, the quick bag of capital chain rupture, first announced the "one-hour distribution" service stopped, and later in September, a substantial layoff, distribution team were all cut off.

In January 2015, Xu Zhiming decided to sell his fast schoolbag.