Refusing to blindly choose a good strategy--how to successfully transform e-commerce in traditional industries

In the traditional industry excavation of the first, the second bucket of gold began, I have been in the field of home building materials for more than 20 years, but as a resolutely transformation from the traditional industry to enter the field of E-commerce "daring" people, I tasted the ups and downs. Many experts and scholars talk about the traditional enterprises to carry out E-commerce, always desperately in the emphasis on the need to act quickly, do not hurry to make money, to invest, to strengthen awareness and so on, these arguments have a general guiding significance. For many traditional enterprises, in addition to the determination to invest in E-commerce, I think it is particularly important to recognize how to take the right way to develop the electric business. Here, I would like to share some of my experience in the field of electrical business:

First, do not blindly embrace the money to join the electric business industry

To abandon the tradition from high and new, as the highest level of traditional enterprises it is very difficult to make such a decision. When I was in Shanghai property market development in full swing, the establishment of a dragon group career at the zenith of the moment, I saw the traditional industrial transformation of modern electronic commerce inevitability. When I decided to go to E-commerce, I needed to be very clear, because I have a think tank, management, staff, partners, etc., which is not my personal gamble, but involves tens of thousands of employees, tens of billions of market value and social responsibility decisions. For traditional enterprises, there is more hidden risk behind innovation, the cost of failure of traditional enterprises and the failure of entrepreneurs is not an order of magnitude. Therefore, the traditional enterprises should be cautious to face e-commerce, I think not only is right, and is necessary.

Finding the orientation and method of the traditional enterprises ' Electronic business transformation

As we all know, electric business is a "burning money" industry, especially in the initial stage of entrepreneurship, the need to invest a huge amount of funds, equipment and talent and other resources. When the decision to enter the field of electrical business, there are quite a lot of confusion and problems waiting for the traditional industry operators: in the strategic, is to choose to build independent or into the electric business platform? Choose to outsource or operate autonomously? In talent, the lack of electrical business talent, digging around people or independent training, how the electrical business team to form? What is the organizational structure and how the team is divided? How are KPIs evaluated? In terms of sales, where does the site traffic come from? What resources can bring traffic to the electric business platform? What are the pros and cons of different platform channels? operation, how to develop a rapid response supply chain for the electrical business? The study of the platform tools, how to interpret the platform rules, how to manage the daily operation? In conflict, online and offline conflict coordination difficult, line online pricing conflict, online strategy on the impact of offline brands. These urgent problems to solve in front of the operators, must be in the field of electrical business before the understanding and consider clearly, can not just blindly believe that the first to do, take a step to see one step. I agree that traditional enterprises should have the courage to try, but I do not agree with the traditional enterprises to establish a "blind determination."

I believe that e-commerce can also not be separated from the business operation of the most basic two competitive points, that is, low-cost and differentiated. First, low cost, loss theory and real low cost is completely different, to lose money in exchange for low prices can hardly go to when, relying on "burning money" is not to bring e-commerce low-cost expansion and core competitiveness of the determination. In this view, any E-commerce company in China from the real "low-cost expansion and core competitiveness" to bring "core value" of the commercial Basic Law is still far away from the real success is still far; second, the difference, customer demand will inevitably lead to different customer segmentation, This is doomed to not be able to use the strategy of losing money to meet the needs of different customers. To do the electrical business site is a need for time, intelligence, team, funds, joint efforts to complete the work of the cause, indispensable, especially the time, I think for the development model has three key points, this is my decision to do before the electrical business to consider and put into practice: first, I think the electronic business site must have self-development and construction of the technology platform. In the use of the National Torch Program software industry base-Fudan Software Park to provide a large number of talent reserves and intellectual support for the network, I also work with the technical team to participate in the background research and development, the second is for the network as a large-scale integrated online supermarket, must have their own warehousing and logistics, in the management to unify, There is a unified pre-sale and after-sale; the third is for the network must be as much as possible to save operating costs, the financial advantages embodied in commodity prices and user experience, so that customers get the lowest price, the quickest shopping experience and the best service experience. Therefore, for the network does not worry about being overtaken, because it has a special advantage from technology to management, but also because of these advantages, so as to network in the electric Business industry competition, the fittest of the winter, but also to expand the size of new markets. For traditional enterprises, E-commerce must be done, but to do E-commerce, to find their own enterprise transformation positioning and methods, "burning money" is the least important core competencies, improve the real business in the field of power to differentiate the core competitiveness is kingly.

Third, timely expansion, bigger and stronger

For the network from the official online since 2010, just two years, in Shanghai has become a certain well-known electric business platform, how to be bigger and stronger, become my next need to consider the issue. As we all know, the current period of the electricity industry financing is not smooth, in the end of 2010, after the IPO boom, in the early 2011 there have been industrial capital to participate in the acquisition, investment in the electricity business boom. However, in the two quarter of last year, the investment of electricity dealers has cooled rapidly. The second half of last year began a series of failures. Although there is a "tomato door" to regulate the atmosphere, Jing Dong CEO Liu at the annual meeting of the electric dealers still said that the winter's cycle will be far longer than 2008 years of that time, I hope each peer can do a good job of 3-5 years of winter preparation. Compared with this view, my situation is undoubtedly optimistic, for the network has a strong financial support for the group, in the technical also has the right to control and good prospects for development. Today's electric industry adjustment period is only the optimization of industrial upgrading, the inevitable process of the fittest, all industries will experience, e-commerce industry or have long-term prospects for development. Which enterprise in this period of the Torrent Yong Jin, a firm foothold, will be able to further develop the enterprise lay a good foundation. Since for the network in technology and funds have a certain advantage, why can we not resorted, bigger and stronger?

Iv. the key points and core competitiveness of enterprises to be bigger and stronger

In the decision-making of enterprise expansion and development, how to choose New development region and new market is the key. In Shanghai, the introduction of policy focus on supporting E-commerce industry, in order to network in Shanghai Electric business in the rapid development of the field, I focus on e-commerce development more mature in Beijing region. The development level of e-commerce in Beijing is in the forefront of development in the whole country, and it is in the leading position in the influence of the enterprise, not only the well-known business enterprise, but also the scope of service covers all over the country, which drives the development of economy and related industries in other areas. In addition, the development of E-commerce services in Beijing is relatively complete, in the electronic payment, warehousing logistics, customer service operations, it technical support and other service industries have a strong strength. The Ministry of Commerce and the Beijing municipal government set up the "e-commerce" special topic in the first China (Beijing) International Service Trade Fair ("Beijing Intersection"), held the "2012 China (Beijing) Electronic Commerce Conference", and the Beijing Ministry of Commerce is also committed to building Beijing-Tianjin-Hebei Rim E-commerce Circle In this favorable background, I choose to enter the fierce competition of E-commerce stronghold, in this piece of land on a firm footing, no doubt for the network among the well-known E-commerce platform plays a decisive role.

In the development of new markets and areas of the process, for the network will continue to play a technical advantage, to the beginning of 2012, the company has obtained more than 10 national software copyright, including E-commerce, ERP fine management software, WMS Warehouse management software, TMS Logistics management software, CRM customer service Relationship management software, call center VV Sharable, POS Retail system management software, shopping mall management software, ticketing xplus development software, auto dispatching software, remote monitoring management software, fingerprint identification attendance software, etc. and access to "High-tech Enterprises" identified, AAA credit rating. Under construction and "for the Network Mall" and other dozens of entities operating on the basis of the first independent research and development in the industry set the Internet, things networking, traditional industries, E-commerce in one of the operating network platform and management software system, by experts authoritative certification, the system ranked the leading position in the country. In order to improve the core competitiveness of enterprises, the network has successfully signed a strategic cooperation agreement with University and Shanghai University of Engineering and Technology, and has carried out extensive and in-depth cooperation. Company as a university software professional undergraduate, graduate and doctoral students of the directional training base, the formation of school-enterprise cooperation. At the same time, for the network and the Chinese Academy of Sciences Micro-systems and Information Technology Research Institute of Internet-oriented contracts, these technical advantages, has become the network to survive the most important core competitiveness.

To continue to play for the network of warehousing and distribution advantages, the company established 500,000 square meters in Tianjin, the new northern distribution base, the initial realization in Beijing, Tianjin area to implement its own logistics distribution, in July for the network Beijing station officially online, for the network of its own logistics experienced the test of Beijing rainstorm, become a fast and safe delivery representative. At the same time for the network is to implement in the overseas and domestic synchronous listing plans, for E-commerce as the main "for the net" in the United States listed on Nasdaq, Software Systems research and development-oriented "for software" in mainland China gem listing. In order to achieve the listing target, the company has been speeding up the pace in the country, 2012 will be in Beijing, Tianjin and other first-line cities to establish branches, with steps to the two or three-tier city development. Plan the investment of each branch is not less than 100 million yuan, operating area of not less than 150,000 square meters.

The correct strategy choice and development model

In the new market open territory, the early adoption of Low-cost marketing strategy is essential. As mentioned earlier, relying on "burning money" can not achieve "low-cost core competitiveness", for the network to rely on the Shanghai electric business in the field of high-quality suppliers of resources and technology, operating low-cost operating advantages in the Beijing market can also be low-priced goods, fast distribution and high-quality services to win the market, This in the early stage of Beijing new station shop celebration has been a good embodiment, and will be carried out in Beijing to let the promotional activities will fully use these advantages, will be the price of the entire network to the lowest.

At the same time, for the network is also vigorously develop the joint venture model, with the existing advantages to promote the development of the joint venture, for "for the net" rapid expansion of the scale, the future with the joint venture to achieve a win-win situation, to create a solid foundation for profits.

At present, for the network is still in the beginning of the recent progress of the development process, on how to choose the right way to the development of the electric business, I am still in the stage of stones, after all, China's e-commerce industry is relatively young, each entrepreneur is learning to do, and then experience and experience the most suitable for their own enterprise development model. So far, for the development of the network is on the rise, in a large number of electrical business site disappeared in the industry in the winter, I would like to take their traditional business transformation of E-commerce, a little experience and experiences to share with you, welcome all of you in the industry with me to discuss the success of traditional enterprise transformation.