Rebuilding new eggs: "fatalism" to break the acclimatized of foreign-funded electric dealers

"Where you fall, you get up." Zhou Zhaowu, who was the president of the new egg China in March this year, only recognized this truth.

Perhaps even Zhou Zhaowu do not know, they are the new egg net rooted in the Chinese market since 12, the first few presidents. But he would never want to be a passer-even if the challenge is to let the new egg China from the "mire" of the acclimatized, as soon as possible across the break-even line.

Just after his new egg China president soon came a rumor that another foreign-owned E-commerce website "Fell"-a 50 million-dollar investment by Rakuten, Japan's leading enterprise, and Baidu, the company's website, was closed in April this year, with only 1.5 surviving.

And the fall of Le Cool day, again aroused foreign e-commerce enterprises in the Chinese market acclimatized to the waves.

Zhou Zhaowu admits the pressure is not small. After all, his new eggs in China, every change in management, is to break the fate of foreign electric dealers acclimatized "touchstone."

Self improvement

Zhou Zhaowu occasionally confused: why the new eggs in the United States to achieve profitability, new eggs China's profit is always out of reach? The gap between the two points, no exception to the foreign electric dealers in the Chinese market acclimatized?

He has been unwilling to admit that in recent years, the management team of new eggs in China has repeatedly changed the "pursuit of profit, customer experience" business model lost to "sacrifice profits, focus on growth" of the radical business model. Even before he served as China's president of the new egg, he was more or less aware of the plight of foreign electric dealers in the Chinese market.

In China, the electric dealers have lost money to make a yell, many means to reduce sales, the situation, Chinese users have been accustomed to free shipping, the day of delivery of the consumption habits, and in the United States, new eggs in the United States has always been the continuation of the user to pay freight and shipping 3 days of the

"If the new Egg China asks for new eggs the United States to increase logistics costs, the latter will be puzzled, why the new eggs in the United States Logistics Department sometimes through the Logistics Fee rebate rebate to achieve profitability, and the New Egg China Logistics Department is like a burning money machine?" ”

Zhou Zhaowu bluntly, the US side believes that the logistics cost of electricity dealers if less than 2% of the total sales revenue, electric dealers can achieve profitability, but the domestic e-commerce "blood spell" shipping charges free of charge with the day of delivery, so that logistics costs accounted for the proportion of total sales revenue increased to 3%-4%, the United States may feel that since the electricity quotient can not be profitable, why also invest in logistics sector?

What makes him more puzzled is that foreign electronic commerce strictly follow the relevant domestic laws, in the purchase of goods issued invoices to pay 17% value-added tax, resulting in a certain price competition of foreign-owned electric companies inferior.

As individual domestic electricity dealers can through certain procurement channels, the purchase of goods without invoices, resulting in new eggs China and other foreign electric dealers in the same price of goods than these electric quotient of nearly 17% higher, the result is the new egg China and other foreign operators of the original market share quickly swallowed.

The reporter learned that there have been new eggs Chinese employees to the new eggs, the U.S. executive reflected the problem, but the United States response, is the founder of the New Egg net "neat", the eyes can not tolerate "opportunistic" things.

"In the end, some foreign dealers found that vicious competition in the Chinese market was not enough to allow them to gain the expected operating profits, but rather to make their entire group's financial statements ugly, only to opt out of the Chinese market temporarily." "In Zhou Zhaowu's view, the success of E-commerce is not necessarily dependent on the pursuit of high growth rate--it reflects the Chinese and foreign e-commerce in the profits of the money-domestic e-commerce is able to endure a period of operating loss, as long as the site high traffic and high income growth, they will be able to earn money in the venture capital institutions pocket. However, there is no certainty that the foreign-owned power companies can only rely on the actual operating profit to gain the investment income. The sweetest laugh is the one who laughs last. ”

Perhaps this belief is the biggest driver of the new egg China still remains in the Chinese market.

But Zhou Zhaowu clearly, to let the new egg China in the absence of high-speed growth, to find a profit breakthrough, is not easy. At least in the domestic e-commerce loss to make a yell situation can not change the circumstances, Zhou Zhaowu can do, can only be "internal potential".

Before he became president of the new egg China, he is more or less aware of the existence of the new egg network some management omissions, from the individual and close relationship with the supplier of employees do not "seriously" tracking the company to track the return of money to the account, resulting in the new egg China lost some profits; to the individual staff late to work but lied about their time to

Zhou Zhaowu cannot tolerate these management omissions still parasitic in the new egg China. Soon he decided to dismiss a department director who lied about not being late. Although this was once interpreted by the staff as "the three Fires of the broom", Zhou needed to do so.

In his eyes, this is a prerequisite for the success of E-commerce-because the electricity business "not see" consumers, can only rely on the optimization of product procurement, merchandise website shelves, promotional strategies and logistics distribution system to improve customer satisfaction, if the company does not have "integrity, responsibility and justice", how to win the trust of consumers.

"I don't think the new egg China is facing an acclimatized situation, but we may encounter water and soil. Acclimatized is doomed to failure, but water and soil is not familiar with the internal management process can be optimized, and slowly achieve success. "In his new egg China self-improvement blueprint, a number of new operational process management measures have surfaced.

However, for the new Egg China's internal transformation, a person who worked in E-commerce in foreign investment is still feeling "palliative", the biggest reason for the faltering of foreign electric power companies in China is that management decisions are still tightly controlled by foreign investors and cannot respond to the "first time" of the fast-changing competitive environment of domestic e-commerce.

For the new egg China, this is also an invisible constraint on the internal business process change.