It's not funny. Foxconn diversified strategy began to do electricity business

At the end of November, Hon Hai's Hong Kong-listed subsidiary, Chi Kang Group, posted positive earnings forecasts that the 2014 consolidated net profit would rise 80% to 100% per cent from last year, meaning Hon Hai has risen from its slump in 2012 and the group's two-year customer diversification strategy has begun to bear fruit.

Mobile phone business on the right track, the full blood of the resurrection of the Hon Hai can finally teng to expand new business opportunities, it is the first to aim at the electric business sector. Hon Hai has already made an expensive tuition fee in the field because of its deep-rooted business-to-business thinking that it is hard to do so, and this time, it has learned to be a good boy and no longer behind closed doors.

From Business-to-business to Business-to-consumer

From a strategic perspective, Hon Hai is to refocus the scope of the electrical business to its own good at 3C products, the establishment of a new brand of electricity, and widely satisfied with the internet talent. For example, the former Flying Tiger Tesco platform for cutting, set up a focus on 3C product sales of the rich networking platform. On the other hand through the acquisition of a mature business model of the 3C product marketing platform. For example, September 5 this year, Fu Zhikang through an overseas indirect wholly-owned subsidiary SP Analysys acquisition of a U.S. consumer electronics business site cexchange.com A total of 30% of the equity. The announcement indicated that the company was established in 2006 and engaged in the operation of electronic products such as trade-in, repurchase (including procurement and resale), renovation management, unsalable and returned goods management, and procurement and sales agents.

In addition, has many years of experience in hardware generation of Hon Hai also has a killer: the absolute professional leading equipment testing technology and supporting laboratories. The economic observer told the people familiar with the matter that Hon Hai is planning to use these resources to set up a consumer evaluation center independent of the electricity business. In the domestic 3C electric business structure has been set, blue ocean into the Red Sea today, Hon Hai Hope side attack to provide consumers with a new experience.

The back of the electric business is not only the new profit growth point, but also the transformation of Hon Hai, the opportunity to completely transform the plant gene. In the 2014-year report, released at the end of August, Fu Zhikang has said it wants to build a closed-loop mobile phone ecosystem, from production to logistics marketing to after-sale maintenance, and even to the mobile Internet ecosystem, such as social networks and mobile, to connect to end customers.

Then the Hon Hai and then the electric business can be a snow before the shame?

Electric business platform re-cutting

During the national day, Foxconn's new business platform of the company's rich network quietly online, the main 3C category of sales, Gou's electric business strategy finally returned to beginner.

The network is not the first product of a Foxconn electric shock. As early as 2010, Foxconn has launched a high-profile launch of the Flying Tiger Tesco platform, and from the same business model of the new egg China dug to Du Jiane as chairman. At that time, the new eggs in China's electric business development is booming, has data show that its 2010 accounted for the market share of 5.4%, after Jingdong, when and Amazon China. Foxconn's ambitions in the electric business sector are evident.

Unfortunately Du Jiane's idea soon clashed with the boss, from the new egg out of his want to take the Flying Tiger Tesco also dozen created a similar comprehensive electric business platform, and Gou's idea is only sell 3 C. After all, Foxconn does is the 3C product generation, the layout of the electrical business naturally preferred their familiar areas.

Flying Tiger Tesco publicly online a year ago in the group when the company also had a revenue of more than 60 million yuan and profit, but the beginning of 2010 but successive years of losses.

Return to Beginner

In July 2011, Mr. Gou authorized the second-in-command Tian Zhiyao, who was the Flying Tiger Tesco, to go out and start a new platform. However, things just picked up, Du Jiane that angry run away, Tian Zhiyao had to return to the Flying Tiger Tesco heavy Burden, the new business platform on the line was shelved.

Since then, although the flying Tiger Tesco, such as Du Jiane, to expand to the whole category, but take the internal staff of Foxconn said, is "half dead, on the verge of collapse."

It now seems that the new platform for the first to be independent is not stranded. Industry and commerce data show that the company is the corporate Tian Zhiyao.

In fact, the name of the net was not born. Last July, Foxconn in the name of the rich network of the Cat Mall, the main sales of its own brand rich visual (InFocus) mobile phones, flat, TV and accessories products, and to a good price to win the market reputation. This may let Foxconn see the hope of a comeback, and in terms of the volume of the world's largest 3C-generation factory, it is unlikely to be willing to be a long-term dependant.

So, the use of independent domain name www.flnet.com rich network October 1 low-key online. Foxconn insiders told reporters that the flying Tiger Tesco has not disappeared, but Foxconn's electric business has been cut: Mother and Child, home, clothing and other still stay in the Flying Tiger Tesco, it digital are concentrated to the rich network.

But the 2014 electric business is more sinister than four or five years ago, to know that Gou once had the acquisition of Beijing and east of the chips, and now, Jing-dong not only steady sitting in China, the head of the electricity business, and did the U.S. listing.

Missed the golden opportunity period of Foxconn electric power business rise?

On the surface, the net uses the same model as the Jingdong-Self plus third party. This is also the mainstream model of today's Business-to-consumer Mall, in which case, Foxconn is difficult to make subversive innovation.

The reporter has logged in to the rich network to discover, its website style also has plagiarism other electricity merchant's suspicion. For example, the icon above the home page of the Rich network is an English hello with a circular line below, it is easy to associate with the Amazon logo, the lower case of the letter A with a circular arc line below. "There is no clear main strategy now." The said Foxconn insiders reported on the economic observer.

Prior to that, a major reason for the defeat of the Flying Tiger is said to be the product of the supply channel compared to the traditional manufacturers do not prevail. The hardware maker would not have promised the best distribution channel for its foundry, and according to public reports, Foxconn could only find two or three-level agents. At the same time, because he has long adhered to the "do not compete with customers" concept, in the Flying Tiger Tesco platform's best-selling brand is always missing its traces, even if there is no price advantage.

This is also the main reason why Foxconn is offering its own brand rich visibility.

According to people familiar with the situation, Foxconn, a new platform for the company, has been talking to Mr. Gou several months ago, stressing that if the business is to be done, it must be supported by the entire supply chain. "After three or four years, the Chairman finally understood, it should be said to be heard." That's why we started selling iphone 6. The iphone is best for us to sell, but it hasn't been sold before. Said the Foxconn people to reporters.

The reporter sees on the net on the rich, the Apple 7.9 inch, 16G ipad Mini 3 sell 2888 yuan, compare Jingdong, Amazon have no advantage.

Open culture

But the economic watch reporter has learned from the exclusive channel, Rich Lian network is not willing to do the second Jingdong, or to go East Jing-dong mode few win the possibility. Mr Gou is making another team to create a consumer center for consumers in the network, using Foxconn's years of work to understand technology products to attract users to the new platform, while enhancing user experience and stickiness.

can refer to similar objects such as Zhongguancun, currently around the consumer center is building a team, digging around technology writers and other talent. "We want to develop not just the mall-style Jingdong model, we would like to say it is possible to combine the concept of a technical media, social community concepts, such as reviews, the Sun list or evaluation of the content." Based on the Fuji Kang some professional laboratories. "At the same time, the Foxconn mid-level Lintairon, who is responsible for setting up the platform, told reporters that he asked the new consumer center to try to eliminate the shadow of Foxconn as an independent third party agency." The worry is intriguing, as Foxconn's own brand has not been a high-profile push.

Lintairon's official position is the CEO of Foxconn's project incubator platform Kick2real, the Internet origin, which was set up in the same period last July, like the rich network.

The dream net and the rich network like the urgent transformation of Fuji Granules seized the two lifeline, has been firmly occupied by the generation of factory culture Foxconn finally began to be the internet thinking of the breach.

In the past, the Corps of the Foxconn Electric Power team was criticized by the factory, who had been born too many, and had few internet people. The difference between the factory and the Internet, one is closed, one is open. Three years ago, the departure of Du Jia bin was the result of the defeat of the Internet culture after the fierce collision between the two cultures.

According to Lintairon introduced, rich network operations are mainly responsible for the original Flying Tiger Tesco deputy general manager Yujaven. She is Du Jiane from the new egg China brought over the horses, but also leader left the Flying Tiger after the purchase of a few of the Du family in Foxconn one. "Mr Gou's pressure on the Fortis team not to give revenue for 3 years, and then to judge it as unsuccessful, the three-year cumulative KPI is not the number of sales and sales." To be a distributor is to cultivate an open culture of Foxconn. ”

The company has yet to publicize it through open channels, but Mr Gou is said to have spent most of his energy on the electricity business and is expected to be exposed soon. The market will not buy it, it is still unknown, but it is alleged that Mr Gou personally in the end of the business, winning the battle on the significance of the transformation of Hon Hai.