No. 1th Store Chairman Gege: Electricity quotient tends to mature rational innovation is the foundation

The investment community August 28 News, 2013 to send the annual meeting in Beijing new Yunnan Crowne Plaza Hotel held. No. 1th Store Chairman Gege said at the meeting, China's e-commerce slowly tend to rational, tend to mature, the electric business more pay attention to customer experience, pay more attention to build their core competitiveness, pay more attention to the foundation, one of the most basic work is innovation.

The following is a transcript of the speech:

Hello everyone, very happy also very gratified to see the past six months to a year of time, China's e-commerce slowly tend to rational, tend to mature, the electric business more pay attention to customer experience, pay more attention to build their own core competitiveness, pay more attention to the foundation, one of the most basic work is innovation.

Why is innovation so important? First of all, I think innovation is the lifeline of an enterprise, this is not exaggerated, not too much, why so say? A known example is the once extremely brilliant, almost monopoly of the film market Kodak, the earliest invention of the digital camera, because the fear of innovation leather their own life, The result was that he was killed by others. Nokia, once the largest mobile phone market in the world, because the emergence of smartphones without continuous innovation, the result is now out of the mobile phone market in the top 10, innovation is an enterprise lifeline, this is not exaggerated.

2nd, I think the advent of the Internet is revolutionary, because its information spreads the speed of light, has real-time big data, more relies on the technology the drive, the electronic commerce is not only simply puts the line many models to carry on the line, it is revolutionary, has spawned many modes innovation, the Operation innovation, the marketing innovation. It's hard to imagine a variety of business models, B2C,C2C,B2B,B2B2C and so on, as well as O2O, online fusion, virtualization of merchandise, social shopping, localized services, and mobile shopping, new things. Need to keep up with this trend, even to lead the trend.

I would like to share some of the best innovation cases in the industry, No. 1th Shop How to achieve innovation, one is my old club Amazon in addition to providing shopping services to end consumers, but also for sellers, advertisers, site owners to provide marketing services, logistics services, warehousing services, online payment, cloud computing, a number of models of innovation. There is also a British website Ocado, one to enter this site when you register he began to build consumer portrait, including family composition, shopping preferences, quickly put each customer label, for the future to do customer precision services to lay the foundation.

How does store 1th innovate? We believe that innovation is not a slogan should be implemented, corporate culture, innovation platform, a variety of marketing innovation, business model innovation and so on. First, before starting a business, my partner Liu and I spent two weeks to consider what our corporate culture is like, how to let us in the future may be evergreen, we consider after writing down 8 words, integrity, customer, implementation, innovation, innovation has become the cornerstone of our corporate culture. We set up an innovation center, build an innovative platform, innovative platform can invite all of our 8000 employees, 40 million of our customers, partners to give us the idea, our two team a team to evaluate the idea, this is the team of experts to their creative realization, the need to invest money to do an assessment, Submitted to the decision team, the decision team hatched those projects based on their strategic importance and ROI decision. 30 to 40 projects are hatched each year, and the project is finally completed, and if the project succeeds it becomes a model of our formal operation.

From the innovation culture, there are a lot of conforming materials, including the Organization Innovation Forum, inviting excellent industry leaders to talk about the innovative case, the process of innovation, analysis of many outstanding enterprise innovation cases and guiding significance.

I give a few examples, such as this is our launch of the unlimited 1th stores, the original mobile phone scan just out of the virtual shelf wall has a physical size of goods, you can let customers enjoy the fun at the same time, a key shopping. The customer from the PC to move above, launched the Unlimited 1th Shop 1.0, in Beijing 27 meters long virtual shelves on the wall of the dazzling goods can be bought, the subway's isolation window, waiting for the subway can buy. We shake through the cell phone can drop out a cans of cola, snacks, small commodities, so that customers enjoy the fun at the same time can be quickly spread, some shopping malls one day there are more than 10,000 customers shaking.

We not only stay in the wireless 1th Shop 1.0, development to 2.0 how to let it fall into three-dimensional virtual supermarket, you can take the mobile phone, map Guide to that place, where there can be virtual shelves wall, you can see the merchandise, click to Buy, and 0 cost, the idea to get the best use of Cannes International Advertising festival Media Awards. We have an idea called Trial Center, we have large manufacturers they have a large number of new products need to get customer feedback, to see Customer repeat purchase rate, repurchase rate, what the customer feedback, we according to customer demand, business needs to launch a trial center, this year at least the distribution of 1000多万件 goods, Large can be to more than 1000 pieces of money a small to a few dollars, customers are very welcome, but also to the merchants a lot of analysis of customer behavior and data.

We want customers to help us choose what kind of goods is the most suitable for customers favorite. We set up a platform called China good Goods, by the merchants to provide video of innovative products, by customers to audition, experts Select, customers want us to sell what kind of goods, more than 1000 businesses to provide their video.

There is also a social e-commerce, according to the customer's past purchase, search, collection of various behaviors to more humorous, close to customers, personalized to interact with the customer, on Sina Weibo, micro-group purchase, micro-customer service and so on.

This is the innovation of Operation Management, PIS, price intelligence system. We real-time online capture more than 60 sites more than 17 million of the merchandise inventory and price information, backstage according to our company's price strategy and price model in real time for the commodity pricing, and if we do not have the goods we based on the search for the best-selling goods to decide what kind of goods to introduce.

There is also a name OTB (Open to Buy), we have found the management of inventory in the past, because our commodity department both pipe production and sales, often found that the purchase of goods is not what customers really want, a lot of backlog, so the use of OTB, according to the needs of users, according to the existing inventory to determine how much the purchase of goods, When old goods are not clear, there is no budget to buy new goods. After doing our inventory health significantly increased, turnover reached more than 20 days.

From the supply chain innovation, we began to use RF technology to do the warehouse with voice control picking and sorting, laser scanning to do sorting, and some new technologies such as put to light improve our efficiency. Last year our operational efficiency increased, operating costs fell by 37%. This is the way we and business cooperation innovation, just now the king of Dunhuang began to take the platform model for a lot of business services, we have a SBY (business will win) platform, which has our warehouse management system, distribution management system, marketing system. Front end we have logistics services, warehousing services, distribution services, according to the different characteristics of commodities, may be bulky goods, precious goods, FMCG and so on to take different services.

We have nearly 4,000 suppliers, there are a large number of goods, each time we want him a small, high-frequency delivery can reduce our inventory, take the method called the first kilometer, our logistics door-to-door pick-up to take a small amount of high-frequency, reduce our cost and inventory.

We think that innovation can not be a slogan, we know his importance, he is a cornerstone of the electrical business, but he is not a slogan, the need for enterprises to have this mechanism, there is an innovative platform, you have to invest in innovation in order to succeed in innovation.