Reread the electricity quotient Bible

Since the advent of the Bible, the interpretation of the Bible has been numerous and voluminous. There is not only the interpretation of Scripture Classics, but also the interpretation of interpretation, people through reading the Bible to know God, know nature, know people themselves.

If a book is worthy of being called a "bible" in an industry, then there is no doubt that practitioners should be carefully studied. Bezos the book of the past years to shareholders is such an "E-commerce Bible." This is not a book, but a Bezos of every year's letters to all of Amazon's shareholders.

As a pioneer in electronic commerce, Bezos in a garage in Seattle in 1995, creating Amazon, one of the world's first e-commerce companies. Thomas。 Friedman wrote in the New York Times, saying that "Amazon is doomed to failure, others in the bedroom can build another amazon."

More than 10 years on, Amazon has become the world's largest e-commerce company, through long-term losses, not only the predicted failure has not come, and Amazon has evolved from a single online bookstore into a network of retail giants.

There is only one book in the Bible, but every one has a unique feeling through reading. The experience of all e-commerce practitioners through their own practice may be differentiated by industry segmentation and regional differences, winners have their own unique, the failure of the losers are not the same reason.

After Mr. Jobs's death, Forbes magazine Bezos as the most visionary and philosopher of the scientific and technological community. When the electric business industry returns to rationality, it is necessary to read Bezos's letter to shareholders in the past year. Listen to these wise advice, and the reader will learn from it.

1997

Amazon's customers reached 1.5 million in 1997, and revenue grew 838% to 147.8 million dollars.

This year's shareholder letter to the most representative, the letter expressed in the ideas and ideas throughout the Amazon over the years of development. The letter was also Bezos attached to the final shareholder book after the calendar year, to shareholders as a reference.

In the letter, Bezos proposed that the core concept of business enterprise should be to create long-term value as the core. Since then, whether Amazon is at a rapid stage of development, or after 2000 years of the dotcom bust, the term "long-term value" is frequently found in the letter.

"This value comes directly from our ability to consolidate and expand our current market leadership, the stronger our market leadership, the more competitive our business model is," he wrote. Strong market leadership leads to higher revenues, more profits, faster capital turnover, and a corresponding strong return on capital. ”

Studying Amazon's history will find that Bezos's ability to hold on to long-term losses is rooted in his philosophy of maintaining market leadership, regardless of short-term profitability. If the view back to the domestic, you can find that the domestic current leading e-commerce companies are more such ideas.

Traditional retail industry to see E-commerce, mostly with the mentality of watching jokes. They are most puzzled by the fact that these e-commerce companies do not earn money, the game spend money, this model can continue?

And Jingdong, when such a leading e-commerce companies are not profitable, to Jingdong as an example, comments generally think that jingdong "burning money" model is not sustainable, Jingdong last year sales amounted to 21 billion yuan also was rated superstition scale effect. In fact, large scale does mean stronger bargaining power and a wider distribution of warehousing and logistics. However, the current domestic e-commerce extensive growth, is far from the scale effect of reducing costs, improve the degree of profit.

Despite this, the pursuit of scale is still the most recent water Test E-commerce company's biggest dream. In the first few days suning easy to buy style of the groundbreaking ceremony, Suning President Jindong on the release Hao Yan, suning easy to buy 2012 years of sales to reach 30 billion yuan, 2020 to 300 billion yuan.

Although suning in the traditional advantages of the large electrical appliances in the field can be 6%-7% of the procurement advantage, but with the size of the Beijing-east more and more large, suning is also obviously worried about how long the procurement advantage can be maintained.

1998

After the rapid expansion of the Amazon business, Bezos understand that the next step in Amazon's background is to have enough capacity to protect the business further growth. In logistics, backend systems, supplier maintenance, category expansion He has put forward his own goals.

Many of the domestic e-commerce companies do not realize this early, to the scale effect of the way forward is the need for high-quality logistics, warehousing, information systems and adequate procurement to escort. Bezos foresaw the importance of Amazon's sales of only hundreds of millions of yuan in value.

Counter-view of domestic e-commerce companies, blindly playing price war, promotional means frequent, but the background supply is not a big flaw. Xun network has been due to the rapid sale of goods and burst cang, this matter many people still remember. It is also often the case that the logistics will be extended to a two-week period to catch up with several big promotions.

1999

This year's letter to the shareholder was very surprised, Bezos in 1999 not only foresaw the development of the Internet, and the first proposed the development of unlimited equipment to E-commerce opportunities, Bezos's vision let people admiration. In the early days of the internet, he foresaw that more people would be shopping at home than in the office in the future.

You know, the impact of the increase in broadband alone can depend on the life and death of a large number of companies. Until around 2010, domestic E-commerce companies began to test water mobile client shopping. Shop 1th is one of the first companies to experience the best in this area. No. 1th Store research and development of the "unlimited 1th" virtual supermarket, not only to use mobile phones on the Internet browsing goods, orders, and can be a combination of two-dimensional code technology, scanning the hands of two-dimensional code information, the system will automatically retrieve product information. It's the best way to play the phone's existing functions.

2000

This year, the internet bubble burst, in 2000 the United States a total of 210. The collapse of the COM company, I believe that many people are fresh memories of the tragic scene. Amazon has also been affected, and its share price has fallen by more than 80% per cent in a year. Amazon has invested heavily in two. COM company living. COM and pets.com both closed during the year.

This year's shareholder letter is particularly worth studying because Chinese e-commerce companies are in a similar environment this year to Amazon. Although the environment has not been bad to the extent of the year, but since the second half of last year, the investment channel has suddenly tightened, electric companies to the U.S. listing and financing of the road was abruptly cut off.

As in the United States of America, it seems that the pessimistic statement on E-commerce all of a sudden have been validated, Lok Amoy Network President Bi Sheng even put forward "e-commerce is a scam." But Bezos said to shareholders, "whatever the standard, Amazon is in a better position than ever before." ”

Look at the difficulties Amazon has done, what Bezos think about, may make domestic e-commerce companies more confident.

This time, perhaps it is the company's hard skills, the best time for fine management transformation.

In addition, Bezos also reflect on the original merger problems. Traditional enterprises want to enter the E-commerce industry, because of the lack of experience, will probably take the acquisition method, Su Ning recently released the upcoming acquisition of some e-commerce companies to do large-scale news as soon as possible. However, as Bezos said, we must not underestimate the time and difficulty in carrying out these "enclosure movements", the acquisition is just the starting point, and the perfect integration of the resources after the merger is the real problem. This is likely to be a long war.

How to persuade shareholders to face difficulties with themselves in difficult times? Bezos the perfect answer. He clearly told shareholders that we have our own brand, customer relationships, technology, warehousing and logistics facilities, financial advantages, Amazon, and the determination to stay ahead in this emerging industry and build a great and timeless company.

2003

There is a word that is presented by Bezos and is schooled by all e-commerce companies, and that is the "user experience". In order to better user experience, Jingdong Liu and every guest of the aged are willing to invest heavily self-built logistics. Happy to buy luming and Li Shubin is the imitation of the United States Zappos, to the shoes in such a segmented market to try to build logistics, and to provide three pairs of shoes at the same time, the user at will try to wear, returned services.

Until now, whether or not e-commerce needs to build logistics is a vexed topic. Both the supporters and the opponents have their reasons. But one thing is certain, online shopping is a very low level of user loyalty, the more in such areas, the more important to maintain an excellent user experience. Most of the time, these relate to people's emotional aspects, can not be quantified by financial data, but the real concern of the company's development prospects.

The most recent industry discussion is whether Jingdong can surpass the day cat (Taobao Mall). From the logistics factor, Jingdong of course is a few street days, but the cat has the user feedback, and user evaluation is directly related to the credibility of the merchant, thus establishing a complete ecological environment. Jingdong's user evaluation is to let people sigh, even if there are so many bad comments also do not see the east to explain or improve, such evaluation system to what use?

In addition, the impact of users repeat the purchase rate of thousands of factors, domestic e-commerce companies mostly think that prices are the biggest factor, so desperately to send shopping vouchers, to organize rebate activities, these activities can win the hearts of users? Will users be loyal to such sites? These arguments I am afraid to the end of the "winter" E-commerce, a group of E-commerce companies fall, before there is a conclusion.

So what does the user experience contain? How to improve the user experience? See what Bezos said.

2007 to 2011

By Bezos to shareholder letters over the years, we can clearly sense that Amazon has transformed itself from a retail company into a technology company. 2007 Amazon launched the kindle.2008 year launched the second generation of kindle,2009, which released the new features of Internet services including cloud services. The latest issue of shareholder letters was named the Power of innovation.

It can be said that Amazon has been ahead of China's e-commerce companies for at least 5 years, technological innovation has not only created a better user experience, but also for Amazon to find new profit points, such as cloud services.

Amazon has rebuilt the American electronic publishing industry through its own growth. "Bezos is a man who has the guts to do things that Wall Street doesn't understand or recognize, such as AWS and the Kindle, each time proving his vision is right," Lee said. This time he was betting big on the Kindle Fire of the Christmas push, once again challenged by Wall Street. I'd rather bet on Bezos than on Wall Street. Shenyin, a famous media man, also said: "We are doing pirated e-book Shanzhai reader, Amazon is reinventing the publishing industry, this is the difference." ”