Looking into the "real face" of iron and Steel electric business--Visit the CEO Wang Dong

　　Whether it is the industry's plight of the force, or the relevant enterprises to seize the opportunity, the 2014 iron and steel industry is too "fire". According to incomplete statistics, up to now the country has more than 170 new E-commerce trading platform for Steel. 　　 　　And many people in the industry believe that in China's steel industry, the support of huge capacity, the future of iron and steel manufacturers have a lot of room for development. However, one side is the power of the market expansion of the bustling, highlighting the emerging industry how thriving, on the one hand, there are constantly discordant voice, perspective of the industry's competition is fierce. 　　 　　Recently, about a listed company's iron and steel electric business platform suspected of trading data fraud information, once triggered the industry and abroad for the new round of iron and steel manufacturers. 　　 　　Today, what is the real iron and steel electric business? As a traditional heavy industry, does the steel industry have a cognitive misunderstanding of the electric business? How should we embrace the age of electricity? Recently, the reporter on the above issues, interviewed for Steel Net CEO Wang Dong, please the industry "Answer FAQ." The concept of electricity dealers from the capital market according to Wang Dong, iron and steel electricity merchants belong to a new branch of steel Internet. Iron and Steel Internet was born a long time ago, in the 2011 before the main steel sales information (including bidding mode, etc.), warehousing and logistics information, industry information Services, forward electronic disk four categories. 　　 　　However, the birth of iron and steel dealers was relatively late, the standard sense of the birth time of iron and steel began after 2011. Before 2011, a lot of steel internet companies have made a positive attempt to iron and steel, but because the steel in the obvious seller's market, steel mills and long association households in a strong position, so these attempts basically did not bear fruit. 　　 　　Since 2011, steel gradually entered the buyer's market, especially since 2012, the steel industry began to enter a Top-down pursuit of high turnover of the environment, in this environment, the real significance of the iron and steel companies emerged. Iron and Steel electric business, as the name suggests, is operating iron and steel dealers. 　　 　　So what is the electricity quotient? Wang Dong believes that the concept of electrical business is not only "electronic commerce" so simple, the electric business is a concept from the capital market. According to the introduction, the concept of the first from the U.S. capital market, to Amazon and ebay as the representative, in exchange for the domestic standard electrical business is Jingdong, Cat, Taobao, No. 1th Store, where guests, only goods will, Poly-Mei excellent products and so on. Electricity quotient is a merchant in essence, the main theoretical basis of its existence is to be able to quickly help suppliers to ship at reasonable price level, to occupy more market share and stabilize market price for suppliers. On the basis of this theory, the seller can obtain the support from the buyer and its viscosity from the supplier. 　　 　　From the development of foreign and domestic electric power companies, in any industry, the rise of the electric quotient will generally trigger the rapid concentration of downstream orders and the market-oriented merger and reorganization of upstream suppliers. There are five misunderstandings in the cognition of electric quotient "electricity is sellingGoods, the real electric dealer, positioning is so clear and simple. 　　 　　"But Wang Dong believes that as a traditional industry, the current iron and steel industry in the knowledge of the electric quotient still have a big misunderstanding." 　　 　　One of the misunderstanding: the steel plant sales management information as a power provider. Wang Dong believes that the steel mills are manufacturers, electricity is to help steel production of goods to sell businesses, manufacturers and businesses are completely two concepts. Electric dealers are destined to rely on a lot of steel products to form the scale of the advantages of integration of the market to meet a large number of buyers of different steel mills to purchase the demand for goods. Steel mills since the construction of information management tools it is difficult to introduce more peers into the future, can not reach the scale of the advantages, also can not meet a large number of buyers for different steel products procurement needs. 　　 　　Even if a number of steel mills for the integration of the agreement, its operation will be very long, operating efficiency is more difficult than a single third party power provider. According to Wang Dong, from abroad to domestic, since the birth of electricity, in addition to the Apple mobile phone and millet mobile phone, very few manufacturers from the success of the electricity-building. And Apple and millet, but also because of its strong personalized brand and the continuous iteration of the product and product add-on store services such as the result of such a standard of steel is the basis of industrial raw materials can not match. "Steel does not have fashion, personalization and other factors, manufacturers want to use product iterations to manipulate the market's ability to almost no." Therefore, steel mills should take the initiative to embrace the electric business era, active and real cooperation between the electrical and commercial, from the pricing, settlement, goods flow and other aspects of the active search and electric business, which is in line with its own short-term interests and long-term interests, but also in line with the spirit of national policy. 　　 　　Wang Dong thinks. 　　 　　Misunderstanding of the second: the long-term electronic disk to understand as the electricity quotient. The electric dealer must be a stock or a fixed product of the transaction, the real electric dealer will not participate in any financial property related transactions. Jingdong Mall launched the Beijing-East White paper and Alibaba launched Ali small loans, the two financial products and the steel industry has been discussing the order financing and chattel pledge online financing, etc., is not a concept. 　　 　　The former is standard Internet finance, using the buyer's long-term procurement data for the BI analysis to establish a new and different from the Bank of the credit system, and the latter is the traditional financial services. 　　 　　Misunderstanding of the third: the storage processing information as a power supplier. "The electricity merchant itself is a merchant, its existence root reason lies in can help the steel mill sale, does not have the sales ability, all is the empty talk." "Wang Dong believes that Jingdong mall set up many years after the start to do warehousing logistics, it is because their sales scale has been large to the traditional storage can not accept the huge increase in orders, so have to build high intelligent storage, and the steel industry is far from that step." 　　 　　With the industry down, a large number of warehouses are in idle losses. "In fact, in my opinion, the efforts of many enterprises in intelligent warehousing are likely to be doing nothing or pioneering work." Warehousing and processing of the online must be generated around the order flow, order flow did not reach a series, intelligent storage is just aA ' beautiful vase '. Study the development process of Amazon and Jingdong, and understand the relationship between order flow and warehouse logistics. 　　 　　According to Wang Dong, the board of directors looking for steel Net has two seats at the same time also is the BoE board member, therefore in this respect understanding will be more profound. 　　 　　Misunderstanding of the four: the understanding of information services to the electricity business. "Electric companies in the operating management mechanism, product development mechanism, transaction management mechanism, capital operation mechanism and so on are completely and information companies are two concepts." In my opinion, the transformation of the information companies is actually in the development of the market for the real electricity dealers, belonging to the "Living Lei Feng". 　　 　　"Wang Dong believes that the old information company claimed to be the electric dealer, to cater to the concept of capital markets, and even the tray financing of the flow of water to the business to create income, these are not knowledgeable, heavy is cheating market investors, risk violating the law." In the iron and steel industry, information companies have generally been established for a long time, the main staff to edit, the way to profit for membership fees and advertising fees. Wang Dong believes that it is very difficult to transform the information company to the electric business, Sohu Sina is such a large information portal, and has not successfully transformed into higher market value such as Taobao and Jingdong model. 　　 　　Because, for the development of the electric business, it is very important to grasp the stage, because the development of electric business in addition to the internal construction, as well as the issue of phased strategic financing, which is a difficult task for traditional information companies. In addition, the strategic transformation of information companies into the direction of the electrical business will also face huge internal management risks, such as the large number of staff placement problems. 　　 　　Because the income of the electricity dealer does not come from the price information, the transformation of the information company to the electric trader is bound to turn from the information member charge to the electric business income, and the original information type company's large quantity edition can transform into the trader's possibility is very low. 　　 　　Misunderstanding of the five: the information provider to understand the electrical business. Wang Dong believes that the current steel mills rush to "electric shock" and improve their own information construction level, but also to individual it enterprises to their own packaging into the electric business opportunities. But to be clear, the electric dealer is the traditional steel trade model upgrade, is essentially to help the steel mills to sell businesses, and not just to help steel mills to provide a set of technical solutions. "Ask, if the steel mills only get a set of technical solutions, it is also necessary to do their own sales?" There is no concept of electricity quotient. In fact, the steel mills to carry out the sale of information transformation is very cautious, because it involves the internal planning control, finance, pricing, the original agent management and other complex issues, the use of inappropriate information tools, sometimes it will affect the normal business development and management risk. 　　 　　And with the real electric business cooperation, will not bring these problems. Electric business and traditional steel trade has two major differences between the electric and traditional traders, are businessmen, as businessmen, from the marketing theory, the need to provide manufacturers with funds, channels, strategies, three aspects of contributions, in these three aspects, the traditional traders are completely unable and has risen. Wang Dong believes that the electric dealer is the traditional steel trade model upgrade. 　　 　　So, compared with traditional steel traders, where is the upgrade of the electric quotient? 　　 　　One of the upgrades: the interests of manufacturers and electric dealers are highly consistent. Whether the price of steel is rising or falling, there is a long-standing dispute between steel mills and traditional traders over conflicting interests. Especially in the steel production capacity of the large environment, the price continues to slump, manufacturers and businessmen will become increasingly contradictory, greatly increased the operation of the steel plant risk, such as production planning failure, Inventory qi and so on. 　　 　　The most important of these risks is loss of market share and loss of price dominance, which can become extremely difficult in the future when a lost market is recovered and prices are restored. And the steel mills and the electric business cooperation can avoid these business risks. 　　 　　Wang Dong believes that electricity is equivalent to steel plant sales abroad, in order to obtain sales commission, not to earn the price difference, steel mills are the price of the dominant right. "The electric business itself is by the scale to win, to large-scale sales mainly, not only to keep the steel market share is not lost, but will go all out to help the cooperation of the steel plant occupy other market share." According to Wang Dong, from looking for the development of steel network experience, because manufacturers and the interests of the electrical business is highly consistent, since last March with two steel mills to cooperate, to the present cooperation of the steel mills has nearly 30. 　　 　　Find Steel Network has been rapid development, steel mills in cooperation has steadily stabilized the Shanghai and East China peripheral market share. "Market share determines the price of the right to speak, so the steel mills sales achieved" Zisheng price "effect. 　　 　　At present, some steel mills have been working with the steel network to study how to occupy another regional market, combined to find a large number of steel network procurement data research and development and product improvement direction, as well as the need to set up processing centers to increase profits and so on. 　　 　　Upgrade Second: The electrical products turnover rate is higher. "The electric dealer pursues the turnover rate, the traditional trader generally pursues spreads the profit, therefore the real electric dealer turnover rate must be far higher than the traditional trader." "Wang Dong introduced, in the era of steel supply, the industry has no real pursuit of the high turnover of the power, hoarding goods to be up to the steel mill to the general pursuit of traders." 　　 　　But the era has changed, overcapacity led to the steel into the buyer's market, but also the Peugeot steel industry officially entered a pursuit of high turnover in the era. By virtue of its capital operation advantages, data advantages, modern management advantages, the pursuit of scale and turnover, and the industry trends and steel mills in the short-term long-term interests of the full agreement, so this is also the main reason for the development of the electricity business. To find steel nets for example, to find steel network is a standard Internet venture mode, also known as the "Team + venture capital" form, such as the beginning of this year to obtain the Sequoia capital, such as the famous venture investment 35 million U.S. dollars of joint investments, the fund is pure financial investment, not involved in any business management, only provide resources and background support. In this mode of capital operation, to find a steel network team can concentrate on the expansion of the scale, not too much consideration of profits, and the steel mills today's interests endAll the same. and listed companies or state-owned enterprises, capital operation is not as flexible as the VC model. 　　 　　That's why all the world's big-market electricity dealers are the root cause of the VC model. In the field of data operation and modern management, the Internet company with VC model can easily come to the Internet for the general talents from the market. For example, any one of the electric dealers listed, before the listing will probably have more than 50~100 or even more million annual level of senior executives, state-owned enterprises and listed companies in the plan to put into the electricity business, I am afraid to do a good job of the internal system reform and billions of or even more funds "burning money" The capital Operation Road under the mode of VC is already very mature, and there are different levels of investment fund relay in different stages of financing. 　　 　　So, with the real electric business confrontation, even with Su ning such financial resources, also be Beijing East dozen of the stretched, because in addition to jingdong itself, behind it is Chi dollar of various capital funds for backing. 　　 　　According to Wang Dong, unlike most people, venture capital funds are the most happy to see people investing with their companies to "burn money" to nurture the market, they are very understanding of "burning money" and the relationship between future income composition. The development of electric business will bring about subversive changes the iron and steel electric trader undoubtedly represents one of the important trends of the future development of China's steel industry, and the development of iron and steel will bring great changes in many fields. Wang Dong believes that with the rise of the electricity quotient and the scale of the market order, the speed of the upstream steel-market annexation and reorganization will be greatly accelerated. He expects to have the first steel plant reorganization case around the electric-business platform next year, and will become the norm for 3-5 years to come. 　　 　　This truth and Gome, Su Ning after the rise of the home appliance industry after the merger and reorganization similar, pay attention to cooperation with the electric power mills, the size and market price dominant advantage will become stronger. In addition, Wang Dong's development of the entire industry has a personal forecast, the rise of iron and steel dealers will accelerate the transformation of a large number of traditional traders to the speed of service providers, these traders will provide terminals for the delivery of processing services such as cushion, and service providers will also merge integration, the emergence of large-scale service agencies The status of institutions in the industry, such as banks, will be reduced rapidly after a point in time, until they are marginalized by the industry. In addition, the steel spot field of financial properties will be accompanied by the rise of the electricity quotient gradually weakened, market speculation factors gradually decay, chattel pledge gradually die out, the impact of futures on the spot will gradually reduce until the steel back to a normal basic commodity properties.