Shang: The "cross-border" of the vertical electric quotient

(Transferred from 21st century Economic Report) 2013 is the winter of Chinese alcoholic enterprises. Traditional liquor sales channels encounter attack, restricted by the three public consumption impact, to high prices, higher rebate, the relationship between the group buying mode has been hit, in addition, due to labor costs and rent costs, liquor stores and flagship store profit margins are shrinking.

The crisis of liquor companies has become an opportunity for liquor dealers. With the decline of group buying and entity retail mode, liquor industry gradually marketization, wine electric trader ushered in the outbreak period, in addition to Maotai, Wuliangye, Luzhou and other liquor giants have net, wine electric market scale has gradually formed and rapid growth. Jiuxian NET Chairman Shang this year is called "Alcoholic Shangyuan".

This is his 13th year in the liquor business. In 2009, Shang founded Jiuxian NET, began to profit in 2011, reached the outbreak this year, the first three-quarter results year-on-year growth of 250%-300%. According to Analysys International calculation, Jiuxian network in China's liquor dealers close to 50% of the market share, in other words, the internet every two bottles of wine has a bottle from the Jiuxian network. On the day Cat platform, the Jiuxian net occupies 40% of the liquor sales. In the past off-season promotional month, Jiuxian net sales amounted to 5000 tons, equivalent to a medium-sized winery a year of sales.

Shang the deep strategic cooperative relationship with upstream supply chain as core competence. At present, Jiuxian Network has and more than 500 wine enterprises to establish a direct supply relationship, including Maotai, Wuliangye, Luzhou and other front-line liquor enterprises, more than 80% of the wine from the winery direct supply.

In an interview with this newspaper Shang recalls: "2011 This time, we have to beg for the winery," two years later, is most of the winery active door-to-door for cooperation, even the French wine association with more than 20 enterprises to come to cooperate. At the same time, including Jingdong, Suning, a shop and other integrated electric platform liquor suppliers.

Jiuxian Network for wine Enterprises to provide two kinds of ways, one is the agent of liquor dealer Channel Retail, and the second is to do the liquor-type electrical business in the field of the whole solution. In addition to agents, Jiuxian Network and E-commerce service providers, through the product spreads and some of the service costs profit. According to Shang forecast, the current Chinese wine industry production caliber of sales is more than 470 billion, alcoholic electricity market share can reach 50 billion. He hoped that no matter in the supply chain, open platform cooperation or brand building, can rely on the first advantage, establish a strong barrier.

"Electricity quotient and wine merchant"

"21st Century": Jiuxian network Business-driven core advantage is with many liquor companies, whether the first-line companies, second-tier companies, have formed a strategic partnership, why they can so trust and form a deep strategic cooperative relationship?

Shang: First of all, we want to have a strategic partnership with these companies. The second is based on various factors in the industry, liquor industry generally cold, in this winter because of the restriction of three public consumption, buy the sale is difficult to dry, stores because of the cost of upgrading in the closing, in such a large background, E-commerce is the most promising growth point of the industry.

On the other hand, the development of electronic commerce, especially from last year's double, made most of the biography

Enterprise is strongly stimulated, Taobao day cat more than 19 billion of the sales is too exciting! In this context, we feel that net words in the future may be eliminated, so willing to try.

"21st century": net words can also with the cat Ah, why would you form a strategic cooperation, and is the exclusive authorization?

Shang: Because we have more than 10 years of the foundation of the wine business, we know very well how to serve these alcoholic enterprises. We give liquor category of the overall solution of electronic commerce, not only their Internet channel agents, but also their overall internet channel operators, we help them in Beijing East, the cat opened shop.

A liquor enterprise attaches great importance to the electric business is only two methods, one is to open their own shop, one is to let the platform to help him sell. It was easy for him to open his own shop, but it was very difficult to serve, and we said, we serve you. Working with the Jiuxian network means partnering with almost every E-commerce platform in China.

21st Century: What do you think is the biggest pain point of liquor companies in the electric business? What can you do to meet your greatest needs?

Shang: The first is that we can help him to improve a part of sales; the second is the national influence, so that regional brands can cover the whole country low-cost; third, we can help him maintain the stability of the internet price plate, liquor companies are most worried about the internet after selling wine to the traditional channel to hit the ground. We for best-selling products to do the image, help manufacturers to maintain market guidance, for exclusive products for profit, Jiuxian net their own pricing, for the inventory of products to do promotional pull popularity, driving consumer demand for low-cost, through a series of strategies to obtain manufacturers satisfaction.

There is a saying in the industry, we are the most understand the wine, wine, the most understand the electricity business, we are a cross-border enterprise, two industries have to play.

Business driven steering Technology driver

"21st century": as a power company, after the expansion of technology, logistics this piece of what improvement or upgrade?

Shang: In the first half of this year, we have less than 20 technicians, starting from the third quarter of this year, to increase the emphasis on technology, to the present technical department has nearly 70 people, to the end of the year will reach 100 people.

In addition, we have made a lot of improvements to the technical department, especially the improvement of production efficiency. Like the warehouse department, we used to get 10 orders from a single prosecutor, push the truck to take the product from the shelf to the basket, probably the same product has three orders, he may be a product walk three times, causing a lot of waste, we did a small upgrade, the 10 orders merged, Similar products will be shown on this piece of paper, thus enhancing the efficiency of 30–40%. Similar to this small upgrade does give us a lot of convenience to improve efficiency.

When the scale is not large enough, only hundreds of people may feel that the value of technology is not too great, but thousands of, a small change may reduce dozens of workers. I think when a company reaches 1000 people, we should attach great importance to the value of technology.

We are a business-driven electric company, because we are very good in the supply chain, but now, we feel that the power companies to improve efficiency is to rely on technology-driven.

"21st century": The existing technology system is like Su Ning to have the strength of the international software developers to buy software programs, or independent research and development?

Shang: We are independent research and development of WMS System (Logistics Warehousing management System). First, we do not have money, Suning spent a few billion to do this thing, we do not have so much money; second, the software we can run, but also can continue to upgrade. Originally I also advocated the technical department to go outside to buy first, they must insist on doing it, so we do it ourselves.

"21st century": Do you think that many new technology issues are applied to company operations, such as cloud services and large data mining?

Shang: It can really bring value. For example, we work with an advertising company to launch Internet advertising, through large data analysis, quantitative display of our advertising position. Previously in the portal can buy a banner ads, one months need 4.005 billion, but if this banner ads for women and children to see, then white look, they do not buy wine Ah! We work with this company to achieve accurate delivery, for those who have bought wine, have been to the Jiuxian network of people to show this ad, very effective, and save 80% of advertising costs.

Logistics outsourcing, Warehousing first

"21st century": some electric business enterprises such as Jingdong will own logistics system as the core competitiveness, you will consider the future of the laying of their own logistics channels?

Shang: I do not think that self-built express is the core competitiveness of enterprises, may be in the past, in the future is not necessarily. In the past to build a courier because the third party service is not good, courier services to keep up with the speed of the development of the electricity business, so simply do it yourself. However, China's two-year logistics express industry development speed is very fast, basically every province inside have one or two professional landing with the company. We estimate that by 2015, the third party Express Company's service level than the self-built courier cost Lower, better service, more professional management, when the self-built courier may be the past successful competitiveness into the future burden.

21st Century: What bottlenecks do you think the company will develop over the next three or five years?

Shang: At present our biggest bottleneck is the warehousing, the storage area can match with the turnover. Our performance has been growing at a particularly fast pace, warehousing first, but it is very artistic to step in first. If you are too big, in case of an accident, if you step on the small steps, the consumer experience will be bad, a large backlog of orders can not be sent out.

"21st century": What is the rhythm of warehousing expansion?

Shang: Basically to a little bit ahead, our orders are expected to have a calculation, there is an assessment, calculate how many orders you can handle a square meter, such as through the growth of these years can calculate the next year is probably what kind of order quantity, pour out to need how many million square meters of storage area.

"21st century": your requirements for warehousing are very high, these storage assets are not to be purchased?

Shang: Generally we are rented, because too many fixed assets investment is not suitable for us. For example, we use 200 million venture capital investment may build a building, the lease may be 5 million, but if the use of 200 million to do liquidity turnover, this year brings the benefit is a 200 million, net profit on a billion, we have to use the money to the place.

Our company is first of all a liquor company, not a real estate company, in order to better sell good wine in the future, we may go to do some fixed asset construction. But we don't do it for the betterment of real estate. Jiuxian net lifetime only liquor, and wine is not related to sell.

21st Century: Are you going to do a flagship store or experience shop like this in the future?

Shang: Never. Because I really can't do it, I can't learn it. The offline shop is another set of business models.