Shun Fung Optimization President Li: The logic behind the electricity business

Shun Fung do electric business This matter, last May chattering opening, but with the electrical business responsible for the replacement, and slowly return to low-key, as Shun Fung Group has always been the same style.

Shun Fung optimization of the first president is Liu, he was in charge of the electrical business of the identity of the Conference on the line, to the outside elaborated the many advantages and vision of Shun Fung optimization, in accordance with his planning, preferably in Beijing, will soon be extended to Beijing, Shanghai, Guangzhou and other first-line cities.

But this "high fight" move did not quickly realize, and in the top 5 months as the preferred person, Shun Fung Group suddenly replaced the preferred person in charge: Shun Fung Group vice president, airline chairman Li to replace Liu, concurrently preferred president.

This initial change in charge of the practice, usually will be interpreted as "performance is not ideal", especially for the courier to do this cross-border, industrial chain downstream can extend to the upstream of the industrial chain, usually also be marked with question marks.

For the outside of such a view, in charge of the electric business after the first interview with the media Li Dong smiled, he thought that this is "opaque" caused, "because we do not know about Shun Fung."

Last October, the optimal prototype of the electrical business was basically completed, the next optimization needs to be with the group of Large network (Shun Fung optimization of the group's short name) docking, and maximize the use of large network resources. From Shun Fung Group strategy to consider, the optimization of the end of the first stage, the next need to have the group resources of the person in charge to promote, that is, "not fully understand the electrical quotient", but according to business requirements can call the Li up.

Data show that Li from 2007 to join Shun Fung Group as vice president, and is responsible for the preparation of Shun Fung Airlines, 2009 Shun Fung Airlines obtained the approval of China Civil Aviation Authority, Li as the airline president. After the transfer Shun Fung optimization, Li is still the chairman of Shun Fung Airlines.

"Now this stage, regardless of platform or team building, have begun to make more use of large network resources, whether the supply chain, distribution or warehousing capacity, need to integrate, here, including transport and aviation resources coordination." "Li Dong says he needs to keep the selection and the big net running, and use the big Web resources to validate the business model and do some business expansion and experimentation outside of Beijing."

Why do you want to do electric business? Li Dong smiled and said, "the group sent me." "In fact, it's no surprise that I've been sent to do electric business, Shun Fung in the electric business strategy has been very clear, this is not a person I am doing, but the team is doing, my more important role is to form this team, to play the strengths of each person, and the electricity and the abundant business model to achieve effective integration. ”

For Li, he belonged to the "young man" in the airline company, but to the optimum, most of the employees were from generation to generation, and he became the "oldest person". Aviation is a very stable, relatively conservative and strict regulations of the business, the small security risks are strictly controlled, Li in charge of the aviation business, at night the phone rang will feel inexplicable tension. The electricity quotient is different, is one can try and even try the wrong business continuously.

"Management requirements are slightly different, preferably this side of the error tolerance larger space, allowing more to try new things." Li Dong said that the most stressful business for him was how to recruit the right people, especially the business people and the food industry, and how to give full play to their talents and motivation.

"To do the site needs passion, shun Fung's values need to do a solid long-term, we do not need to pursue a rich man overnight." At the same time also need to give everyone a good learning to rise in space, provide a platform for employees here can also be made into the industry's big shot. "Li Dong said, and these prerequisites are recognized shun Fung's cultural integrity, solidarity and dedication, sunshine, pragmatic, just as with the development of several years but not to advertise, not listed, not financing shun Fung, low-key but with executive power."

Shortening supply chain with logistics network

For the external concern of a variety of electronic business data, such as customer unit price, user number, gross profit margin, cost, Li has not been disclosed.

In his view, the past 10 months is a "validation" process, the key is to see whether the electrical business model of Shun Fung is feasible. "At this stage I do not want to get the data to compare with the big electric quotient, because there is nothing comparable."

What is the advantage of Shun Fung as an electric dealer? There is no doubt that Shun Fung Group's strong logistics system, such a perfect logistics system, is a lot of electric dealers to do. Tencent CEO Wu Night Light even in an internal speech stressed that the future if there is no logistics capacity, do not go to do electricity, and Beijing east is invested a huge amount of money in the construction of logistics system.

But with the logistics system, you can do any kind of any category? Shun Fung Group has discussed this topic in depth, and the conclusion is: other categories such as clothing, 3C and so on have a relatively good electric quotient, but high-end food and fresh class but not particularly outstanding performance of the company, it is important to do food need to keep fresh, the logistics and distribution has a very high demand.

According to the data, the current proportion of food in the electricity quotient is less than 3%, and Shun Fung Group considers this an important opportunity. In fact, Shun Fung Group has been "food" complex, hope to bring high-quality food to users, in Hong Kong launched the "Shun Fung e Business Circle" platform. On the other hand, Shun Fung group downstream infiltration of the "convenience store" entity business, but also related to food procurement and sales.

The biggest advantage of these "predecessor" business to the Shun Fung optimization is that has been built to complete the food procurement system, and this system is actually based on the network of Shun Fung Logistics any one has a safe and healthy or special food areas, can be from Shun Fung in the local logistics outlets, the establishment of procurement capacity, There is a dedicated person responsible for direct procurement, procurement of goods for the Shun Fung platform and the Hong Kong electric business platform and other internal requirements.

"With the logistics ability to shorten the supply chain, this is a very important business model for us." "Li Dong said. In Li's view, "shortening the supply chain" is the "innovation" of the electric business. He thinks the electric business platform is just a channel, and other electric dealers in the promotion of innovation, such as micro-BO micro-letter and mobile clients, are just a technical aspect of the promotion, when a trend of the arrival of Shun Fung optimization as long as the following do, but the supply chain innovation is the most difficult.

Li Dong stressed that the essence of doing an electric business platform is to shorten the supply chain, eliminate the intermediate link, the best to the supplier and customer two-way docking and selection, thereby reducing the middle of the logistics costs.

"Why do I say the current data doesn't matter?" Because we value the advantages of shun Fung can be reflected. "Li Dong said," For example, we have no category of quality supervision and bargaining power, there is no reduction in supply chain transport, customs clearance and inspection capacity, there is no last kilometer to the customer's hands. ”

Preferred Group Business Experience

"Shun Fung do not one-time, want to quickly get rich and sell, but to do a substantial growth point to do." "When asked if Shun Fung Group is giving performance pressure, Li Dong said. He also stressed that Shun Fung optimization currently has more than 700 people's team, the two years more task is to do infrastructure, including the team, customer experience, supply chain management, processes and systems.

But has been in the trial operation phase of Shun Fung optimization, has recently walked out of Beijing, in Shanghai, Guangzhou and Shenzhen to launch the normal temperature food distribution services, but fresh food is not in the opening service. In fact, this also conforms to the Shun Fung has always been "cautious" approach, Li Dong said, if the entire process is recognized by consumers, Shun Fung optimization will be appropriate to do the promotion and extension.

For Shun Fung Group, the preferred business is not only a business growth point, but more importantly for Shun Fung Group to develop electrical business logistics to do "process experience", accumulated experience for other electrical business customers to provide services.

Before 2012, the electric business is not the focus of Shun Fung Group, to be known for its safe and fast, the whole process has IT system tracking Shun Fung Group, more oriented to small and medium-sized enterprises, commercial customers. Shun Fung Group has done statistics, only a customer unit price of more than 500 yuan, the total weight of less than 5 kg of merchandise, the Electronic business site is more likely to choose to use air transport. And when the company has just developed, users and electrical business customers want to be able to cheap, rough packaging, logistics slow to endure.

But this situation in the past few years has been rapid improvement, with the above examples of the electricity quotient of the customer unit price, 300 yuan is already a considerable proportion, and in the case of service experience, the electrical business site for the quality and timeliness of the burden of part of the freight.

Another of the data to stimulate the Shun Fung Group is that last year the entire express industry's growth reached 50%, of which the electrical business to express the industry's contribution to 72%, this is a very large number, so the group began to adjust to the beginning of last year to transfer to the electricity business, such as the beginning to do economic express, and establish Shun Fung optimization.

"We do electrical business is also in order to experience the entire electricity market." Li Dong said that, in particular, the supplier market from upstream to downstream of the supply chain process, Shun Fung Group can optimize the understanding of integrity. "Our main business or logistics, but the electric Chamber of Commerce to provide a very good experience, but also want to bring the group of customers of the company's sales volume." ”

Li Dong said, all do the logistics of the electric Business Company, Shun Fengdu full of respect, but also hope that they succeed, at the same time, Shun Fung also willing to provide them with logistics services.

As for profitability, Li also said it was not the current focus. He said that if Shun Fung optimal supply chain to do a good job, and to achieve a certain amount, it will certainly be able to achieve profitability. "When we were airlines, we didn't expect to make a quick profit, and of course we were profitable the next year," he said. Shun Fung Optimization We did not expect a year of profitability, which required a process. ”