King Wei: Electronic is the future of traditional business

Absrtact: Wiegelweige leave Alibaba, can successful transformation? If there have been doubts about this in the past two years, the performance of the Fund in the third year after its establishment was sufficient to dispel the suspicion of others. PPS was bought by Baidu, 91 wireless high price by Baidu wholly-owned

Wiegelweige leave Alibaba, can successful transformation? If there have been doubts about this in the past two years, the performance of the Fund in the third year after its establishment was sufficient to dispel the suspicion of others.

PPS was acquired by Baidu, 91 wireless high price by Baidu wholly-owned acquisition, 500 Lottery Network (WBAI. NYSE) landed on the New York Stock Exchange. In the second half of 2013, the three projects of the Royal Fund were withdrawn.

Originally "untimely" Jia Royal Fund, but become PE winter bright colors.

Before the establishment of the Royal Fund, Mr. Wei had served as the CEO of Hundred Homes (China) and the CEO of Alibaba Group. Since his CV is both offline and online, his judgment and investment in E-commerce has been a concern of the industry.

This newspaper interview with Wei, see how Mr. Wei analysis of e-commerce development pattern, how to evaluate their investment 91 wireless and 91 wireless in Baidu's major strategic significance.

More emphasis on Electronic business

"21st century": the establishment of the Royal Fund, E-commerce as one of the three major areas of investment. Now over three years, what is your view of E-commerce different from the original?

Mr. Wei: All E-commerce, to see from the offline, so as to know which stores should exist, which should not exist, or should be in another form.

In this way, retail businesses can be grouped into four categories:

The first category is the real store will be replaced by the Internet, these areas will be invested in pure Internet companies-the newsstand selling lottery tickets will be replaced, so we voted 500 lottery network; pirated DVDs will be replaced, we have a video site.

The second category is in a period of time, the entity shop and offline shop who can not replace who. For this type of enterprise, both sides can not be cast, but it may be able to combine the two successful enterprises.

The third category is catering, wedding photography and other online services are dependent, the Internet can be transformed it.

The fourth category can be sold online, but offline is the extension of the brand, to give customers a certain experience. Apple, as a company with so much internet genetics, has opened so many flagship stores, but the turnover of these stores can be ignored by people who don't count on ――80% to buy things. Therefore, Amoy brand should be open shop, but not as the line to sales as the standard view.

Ma Yun proposed e-commerce, but we more value business electronic, is who can use the Internet method to the original business bottlenecks break through-we are basically around this line to the traditional industry with the Internet for transformation, promotion-we consumer goods is so, see the same way.

In consumer goods if subdivided, it is necessary to see the mobile Internet, which is the internet itself, such as 91, we have the mentality of transformation. We do not invest in pure technology companies, I think the technology itself is good, but technology is used to solve problems, the focus is to find each phase of the problem.

"21st century": What do you think is the trend of the next phase of business computerization?

Mr. Wei: The next stage is always said Business-to-business services, which is the worst use of technology, tourism is one of the industries, other industries there are many. The service between enterprises is facing the transformation of the Internet.

Consumer goods include many industries, we have always considered inefficient industries, such as wedding photography, gross margin is very high, the net profit is not high. Why not high? It opens stores, whether it is Suzhou, Shanghai, Beijing, wedding photo studio must be on the best road, sounds very cool, very awe-inspiring, but the store cost is the operating income of nearly 50%.

In fact, the use of the Internet, if the order on the network to reduce the number of stores, there are conditions to improve profits, or let consumers. So the consumer goods industry is also facing the transformation of the Internet.

91 is not only Baidu mobile portal

"21st century": Ka yu Fund 91 wireless in less than a year, to get several times in return, why did you watch it?

Mr. Wei: Actually bullish 91 is not difficult. Those who invest in the Chinese market, if not 91 in 2012, are certainly not qualified investors. It's hard to get a lot of money out of 91--then 91 at a high rate, and there's plenty of cash in the parent company--our money is still in.

"21st century": Why can the Royal Fund Invest 91 wireless?

Mr. Wei: We're not going to vote for a company. We watch and see if we can help. If we can't help them to do better, he is not short of money, then why does he accept our investment?

Usually we do three things for entrepreneurs: 1, business model transformation or upgrade; 2. Efficiency improvement; 3. Introduction of important strategic resources. For example, 91, his model does not need to be transformed or promoted, but efficiency can be further improved.

"21st century": Can you say specifically which aspects of efficiency need to be promoted?

Mr. Wei: The world's best Internet companies have account systems and membership systems, such as Facebook, QQ, micro-mail and Weibo. No account of only Google and Baidu, because it is a search engine does not need to login. Google has tried many ways to build its own account and membership system, but not very successful.

Why do Internet companies want accounts? Have an account you only really have users, just know who the user is, otherwise, like the toll on the highway, the application store is the highway toll, good, although good, but the high-speed running car and you have no relationship.

91 of the team is aware of the importance of this issue, but how to make users like the account system? The question we gave 91 was "how do we get users to sign in voluntarily?" Therefore, we have made two recommendations. Now 91 of the most interesting features-there is no other application store: one is its cloud services, if you change the mobile phone, from Samsung to Apple, can help you do a lot of migration, but the premise is to login, do not log in how he knew it was you? To implement this feature, you must log in. Second, because only need to change the phone to log in, usually still do not log in. So you'll find that 91 assistants have a 91 fund that can shave every day, and the gold coins can be redeemed for other paid items. Through this system, the customer has to log in, otherwise the gold coin falls in whose account? These two suggestions are now starting to really exert

We will also introduce strategic resources. The 91 model can be replicated in Southeast Asia, and we have also introduced 91 of our funds to investors: Richard Li and PCCW. This is an important strategic resource for helping 91 to expand its business in Southeast Asia today.

"21st century": PE investment enterprises to exit through mergers and acquisitions, often because of their significant strategic significance to the buyer. How do you see the strategic significance of 91 to Baidu?

Mr. Wei: A lot of people simply think that 91 is just Baidu's contention for mobile portals, and I feel far more than that. Search and App Store who will become the main entrance to the mobile internet is still arguing, but if I am Baidu, have enough money, I will put aside the argument, two entrances.

But 91 may not only be an import problem, but more importantly, the development of mobile Internet is the search and accumulation of large data.

My own bold prediction, mobile search must no longer be a search box. In fact, every app today is a small integrated vertical search. For example, you open a map, press a button next to "Restaurant", all the restaurants appear, no longer need to enter the restaurant, the map can be implemented search, search becomes ubiquitous.

I believe that search engines and algorithms such as Baidu will be able to implant and open to app developers. If all of China, even the world's most important application developers are using Baidu, so that Baidu's search, data accumulation ability to become stronger, will produce greater significance.

Call data is very important on the Internet, no matter what function you call me, or what the data you call has produced, you have actually exchanged data with me. Then 91 hands on the millions developers, in this level and Baidu to cooperate, call Baidu's underlying data or algorithms-may not be known to cooperate with Baidu, but it does not matter--this to Baidu further upgrade large data search is very important.

Second, I said just now that there are two very good internet companies around the world that have no accounts, 91 have not before, but through our proposal, 91 has. Then and Baidu combination, with the help of 91 member system and account system, Baidu can know who the user is. This is the first time Baidu has a direct access to Internet users, individual users of the tools.