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[Abstract] public comment on a leg in the food field in depth, the other leg to marriage, tourism market March.
Over the past year, the concept of O2O has been renewed. The giant's scramble to layout, the emergence of startups, all the public comments on this veteran player again to the important position of the industrial chain. With Tencent's strategic investment, and the injection of a group of start-ups, the company's layout in the O2O area is becoming clearer.
Just completed the reform of the Division can well reflect these changes, the public comments from the second half of 2013 onwards, has set up information Platform Division, trading platform Division, hotel Tourism Division, Marriage Division, scheduled business and promotion division. Which trading platform Business Department mainly to do the following group purchase, payment and other business, promotion Business department mainly to do business marketing promotion, including keyword ads, coupons, display ads.
Public comment on the structure of the adjustment, clear its tone in the next few years-walking on both legs. A leg, is continuing in the field of food in depth to expand, that is, to buy, book, takeout and other services in depth; the other leg is the horizontal expansion in the industry, to marriage, tourism and other new areas of the march. At the same time, in the business model, to buy, booking-oriented trading model and the traditional advertising model, for the public comment it is difficult to distinguish which is more important. The two models contribute to the basic income level, and from the Division of the Division, you can see that advertising and transactions will be in the long-term public comments on the important position.
In Zhang's words, "We're splitting up, and we're going to advertise and do deals, and these two things may not be the same as the nature of corporate DNA." ”
In addition to balancing the relationship between trade and advertising, there is a lot more to be done in the coming period. How and Tencent to explore more product level of cooperation, horizontal industry expansion of the focus on where, the catering sector how to penetrate the existing external selling point meal services, these problems have to be better solution.
2014 will still be a year for the public to comment on rapid action and change.
The following text comes from the oral essentials of Zhang's meeting with Tencent technology:
Two modes of public comment
Our division of business reform, a class is to go to products, a class is to go to different industries. Product line, or around a few of the core needs of beer and skittles, which is to help make consumer decisions, booking, take-away, group buying are related services. This is the core of the industry, consumption frequency is relatively high, decision-making faster, but also our most concerned about the industry.
The other is a different kind of industry. For example, marriage is a relatively different industry, decision-making is relatively not so fast, the frequency is not so high. We've been doing this for a while, and last year we took it apart and made a big architectural adjustment. We used to go by functional line, but it didn't feel fast enough, and now the split (marriage division) suddenly changed from double-digit growth to triple digit growth.
Hotel is TripAdvisor mode, through UGC reviews to help you make hotel selection, and then to OTA diversion. But China's current level of consumption may not be met, and we will do it as a long-term project.
All of these industries, a kind of how to do is a type of advertising mode, the other kind of how to do is a trading commission. This is related to the industry, if it is more low-frequency advertising mode better. such as marriage, I can do the transaction, but the merchant is easy to escape. And this transaction is very heavy, you lead the customer to the offline, whether can trade success or depends on the services and so on line.
So we say consumption of the lower frequency of the industry, the more an advertising model. Of course, we also hope that advertising can form a closed loop, can see the effect. Decoration, parent-child, marriage and Promotion division, how to do is advertising. Another category, such as reservations, takeout, group buying, in fact, are trading Commission. Either way, that's the two patterns. In terms of revenue, advertising and trading are roughly half the same.
Trading is not necessarily better than advertising.
Trade and advertising depends on the industry, some industries should be advertising, direct access to the trade fairs have a variety of problems, such as marriage. Real estate I feel the same, drainage to the offline users buy, the platform is difficult to control, ultimately depends on the offline services.
Trading is not necessarily better than advertising. We used to be, get married first make an appointment, then the user went offline to pay, feel like a step closer to the transaction, but this nature or advertising, consumption frequency is relatively low and the amount of large, business is easy to escape a single. Just like the car website to you (note: Distributor) a lead (note: The car vertical site to the dealer to bring the sales leads), the charging mode is not to pick up the point, so say or advertising. Of course, people still want ads more accurate, but not necessarily every transaction should be done commission.
We're splitting up, and we're going to advertise and make deals. These two things may not have the same attribute requirements for corporate DNA.
Advertising may be "slow is fast", need to accumulate a brand. Transactions must be fast, advertising general gross profit margin is relatively high, and the transaction of money is a penny out, the two models together to do or quite split. China does not currently have a company that deals with two pieces of advertising. Jingdong is their own trading, Ali is actually rent, the essence or advertising.
The transformation of company DNA
We are now merging from one DNA into another. We dismantled the division and made it more flexible to make decisions. In addition, the rewards and punishments system has also changed, the former staff year-end award is 3.5 months, the lowest 1.5 months. Now the minimum is 0, the highest 16 months. The third is the change of personnel, some people entrepreneurial passion is not, some people do not match the ability, so the staff also some adjustments.
These three pieces add up, the corporate culture will also change, formerly more like a media company, more relaxed freedom. Now everyone will be more spell, the wolf more sufficient, decision-making is also faster. We are all micro-believers now, and I often jump to a product group that is two or three lower than my level to solve one thing. Decisions can be faster, more flat and more borderless.
Public comment on the opportunity of horizontal expansion
The expansion of the new industry, we will probably do so many this year.
Beauty (public comment on the hairdressing category) this piece has many opportunities, recently also came out several O2O start-up companies, there until the shop, there are door-to-door, there are many opportunities for entrepreneurship.
KTV, this category is not small. But now many KTV systems are very rotten. So some startups are doing the whole KTV back-Office system. We are looking at a family at the moment and they are doing well.
Film of course is also one, the emergence of the film group buying market, is entirely because of Chinese film market price anomalies. No money is made for the movie group. But itself is a very good way to draw the passenger flow, the equivalent of the real store explosion.
There are also cultural performances, especially in Shanghai, Beijing, we see this kind of demand is constantly up, this consumer group and comment on the user is also closer to a point.
We will see more industry with the upgrade of consumption, the more consumers value the pursuit of quality. Pure cheap, discount this concept, we feel will go down, slowly will become less mainstream, the industry we are mainly to see above these several industries.
What about the takeaway market?
Our takeaway position is to do the platform, the more we do takeout companies the better. The market for takeout is broadly divided into four categories:
A class of takeout belongs to a large chain of restaurants, such as KFC, McDonald's, a tea sit, generally such companies tend to do their own takeout, there may be a third-party company to help them do the system or even call center. We have also invested in a third party company, the "Wisdom Dragon", who has a business like John the stick.
There is another category is hungry mode, students take-away. Students are born as a takeaway market, characterized by a low profit margin. Charging mode is not through trading commissions, like hungry is the service charge. It may take a while to generate a business model in the future. Students are far from us, our core user group or white-collar. Public comments and hungry for the cooperation of the people is a win, we do not have to spend too much energy to put these businesses in.
The third category, is the dinner takeaway, home food, point me is this type of model, our platform to pick up my bar, the data is good. In fact, this distribution is still very complex, more complex than the distribution of electrical dealers. It is very complicated to have high time requirements, obvious peaks and off-peak periods, and improved personnel efficiency.
The fourth category is white-collar sales, high-end fast food, about 30-50 yuan, generally this shop itself has the ability to sell, own distribution team, and our user groups are also more matching. We're going to do this on our own, because this one is profitable and the buckle is good and no one else is doing it in Shanghai. We are doing more of this profitable business ourselves.
Therefore, we sell more or do the platform, more businesses to come in, so that consumers feel very rich. We sell on the main or do white-collar takeaway this profitable business, do not intend to expand too much.
(Tencent Technology Note: 2012, the public comments on the discovery of the opportunity to sell the market, but because of the shortage of resources had to cut into the relatively light of the scheduled business. At the end of last year, the public comment on "Takeaway" was first launched in Shanghai. In May this year, the public comment on the 80 million-dollar stake in the takeout platform, "hungry", and to achieve strategic cooperation. Then 50 million yuan to invest in a meal app "Big Mouth". At the same time, the public comments through the platform to further improve the sale of the business, but the self-employed still to be able to make money for white-collar sales mainly. )
Still exploring the form of fusion with micro-faith
The strategy we propose this year is "up to flow", in fact, the flow of traffic in other places, we feel that this traffic will remain there, we do not expect this traffic will become our own traffic. But this docking is mainly to meet the light scene or long tail demand, such as you are in the map, originally you are looking for, you see there are restaurants and hotels, directly on the map to use these services. Map first or find a place, to find beer and skittles or long tail demand.
We think that a company can only have a core positioning, such as Taobao is shopping, micro-letter is to do social, Baidu is search. But this platform can also have beer and Skittles service. But this and directly do eat and drink is unable to compete, this kind of thing big platform is not good at, also is not the user brand core localization.
The main purpose of our cooperation with Tencent is to socialize. Like now micro-letter, sign in there there is a cooperation, friends Circle will be shared after a merchant link. Then in the "discovery" entrance will also have a cooperation, but now also look at the specific form, Jing Dong put a "shopping" entrance, but the feeling is still relatively hard, we are still looking for a better way of social integration.
Traffic is not the most important, short-term flow of up to 20% or 30% is possible, but we are more looking forward to long-term development. Like a circle of friends to share add merchant links, this logical feeling is smooth, we will continue to do some social links to get through.
Our social elements have been missing, but this is impossible for us to do, social is also a very important part of eating and drinking. So we can have a docking with micro-letters. In addition, I do not think that micro-letter can complete all O2O, he is mainly social, O2O may be subordinate attributes, if the future can make money, is how to divide the money problem. When we communicate with Tencent, we find that they also want to understand that not all things have to be done by themselves.
This is also now a more obvious trend, through cooperation and capital, into a community of interests.
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