Take 30 minutes to talk about our exploration of O2O.

Good afternoon, everybody! I spend 30 minutes to talk about our exploration in O2O, we start from this year's New Year's Day to formally set up the electrical Business Department, the beginning of the electric business strategy. Why do O2O? So for us, O2O is just a symbol, our current membership as the center, using mobile Internet to do a tool, this is to do is the electronic business, its current is to do accurate marketing, improve our physical stores and shop, serve our customers, the front desk for our members to provide personalized service, Middle Office is to improve efficiency, backstage is standardization.

I first talk about the confusion of traditional retail, because we are very heavy traditional retail business, usually speaking of traditional retail completely rely, Physical store coverage radius of 2.5 kilometers can not be too far, we work is also white-collar work time, whether it is physical space and time, there will be a lot of loss of sales opportunities, electricity dealers and mobile internet one morning to work time, lunch time, evening meal time, these stores for the entity stores these opportunities are lost, and so far not exactly a retailer , we are a porter, and our retailer perceives the needs of our customers, providing an intimate service, helping the brand, doing the value of the brand, and doing the precise service. Did not do today, we more think that we are brand of the Porter is an external warehouse, open the most expensive warehouse, open in the most expensive lot, we need to transfer the O2O elements. Retail three elements, customers, goods, fields, such as the cat or Beijing East, our online, offline stores, more from the brand, the usual retailer to the goods as the center, what goods will be sold, really we think the retailer should be customer-centric. So since customer-centric, we divide the guests into four kinds, the first one is called a passer-by, if in passing, do not click in with you a dime relationship, only to enter your store is your customers, conversion rate of 1 per thousand to 5% is unequal, the line will be slightly higher. We all like repeat customers, often come back, most like there is not only their own, but also pull friends. O2O is not the same, the traveler is from the back, customers to return to the technology, we have social programs. On the line his advantage users are able to identify data analysis, a large online problem, the cost of online garbage is very high, especially when the flow of dividends disappear after the cost is very high. Last year when we started talking about the electric business strategy, we skipped vertically, and the vertical one was not a good strategy for us because the point of time had passed.

We look at the advantages of the line, the first kind of enterprise, offline entity stores have irreplaceable advantages, shopping guide has more intimate service. Offline and your friends and relatives to buy things, offline features there is no way to understand the customer's information, the customer went after no way to reach. We want O2O to move the line down to the wire, precipitate the customer's data, and then analyze, and customers carry out a low-cost two times marketing. To look at the mobile phone, the previous five years of mobile phone research and development, China's largest mobile phone research and development company inside, the handset has the merit and the shortcoming, the flaw is the endurance ability only 4 hours, the endurance ability is too weak, the screen is very small, the computer shopping more than 10 inch screen, ten refers to the income, the flow unimpressed is spends money, his advantage time is the time which is fragmented, the space is infinite, There is a network can interact, identity is normalized, another important feature of the mobile phone is social, so the cell phone as a human organ to see, if you do sales tools, we participate in a lot of micro-letter activities, micro-letter is online to browse, so to do a very hard sales, but the phone is more scheduled, Need to interact with offline entity stores. So the phone has been like Apple 6 right away, tablets have been changing, laptops and flat-screen TVs, hardware upgrades, software is changing. The most frequently used is micro-letter, as well as the public comments, we believe that the hardware and software, no matter how, as a retailer we and the seller to interact with the media and tools, unchanged is the consumer, is with the consumer's eye to turn. So the physical store we want a variety of ways to leave the consumer footprint, hope that the online transplant to the offline, physical stores sweep two-dimensional code search products, recommended to good friends, you can share your shopping in micro-letters, if you share a purchase of something experience your friends like to watch. There are some interactive games in the shop, Beijing's shopping malls can be sent to the home, you can get the consumer's address, the core of the consumer's address to stay. Our members are bound, each store has a two-dimensional code parameter, and his staff to bind, in any store inside the consumption and initially registered stores have a benefit-sharing mechanism, the Internet has CPC and CPS, we have this model also introduced into the offline trading inside, but we introduced this mechanism, we are cooperating, If the member to this store service carries on three times the bad comment he still belongs to our member, but and the store no longer has the relation, hoped that our store completes the member's service.

The past products for the king to the channel for the King to consumer-centric, now put forward the era of consumer sovereignty, buy Nike Adi Consumer, more than a few, the ego claims very strong consciousness, this is our hope in the future, we hope that the line under the choice of brand selection shop, the advance or pay the full amount or a drying list. Only a little can not do is to try to wear, this situation changes in trading mode, the previous to the physical stores, should be system-driven business to do accurate service, the core of our CRM system, to members as the center. This time the entity stores, China's official website, including Jingdong shop, micro-letter and so on, are and our entire company's services to interact with such a medium, the physical store is a medium, the mobile phone is also a medium, the PC is also the media, different media access to rights and services are integrated, unified Central system. So O2O into three big chunks, one is to build online sales and service capabilities, there is a to the core of our new crm,7 month just on line, each store to get through, and we build their own O2O order management system, his purpose and members of two-way interaction, the previous message is two-way, We believe that micro-letters and other apps are two-way interaction, offline stores gradually have the ability to digitize.

Then we have just said to consumers to provide free choice, online and offline, we build Skynet, air capacity, we build a O2O total warehouse to serve the country, we will build two warehouses in Beijing and Guangzhou, north China to deliver goods in Beijing, South China, Guangzhou to deliver goods. At the same time, if you go to the Baidu map, you can see here a map, the original mode, the entire entity of the store, we call the net, sales-oriented, then fragmented, is unordered, we want to use the O2O mobile internet A new definition, formerly from the sales to the car 4S shop Experience Sales Service add information , physical stores give a very good sense of trust and sureness, Taobao often buy fakes. So the purpose of the grid is to match the phone with your purpose precisely. In this case, the conventional theory, physical store products can see, touch, take the walk, if there is no goods to be allocated, can be resolved to buy. It's more important to finish the whole width line, see, Touch, delivered to the 24-hour service, to the official website, including cooperation with the Beijing-east, including our micro-letter platform to solve the width of the problem, so that the line becomes a companion under the line, and this benefit is all belong to the entity based on the attributes of the store, to resolve the conflict of interest O2O the most challenging is not the technical problem, but the conflict of interests. Back to the physical store inside, the physical store just Li Shubin also did some pre-order, physical stores we want to do some pre-order through the mobile Internet, such as new to some limited, you are a VIP customers, you like this pair of shoes, if you like the micro-letter booking, and then you go to the physical stores to take goods or returns. Each season physical stores have some goods to sell, the original model pulled into the warehouse to find other discount stores or online consumption, this time we lost profits. At the end of August this year, some of the more popular styles for Brazilian football match must be sell and sell quickly through the way of flash-buying. Shoes are low frequency consumer hope and consumer interaction, every day playing games, we think the young people in the game grew up, we want to play the feeling.

For this reason we put a lot of tournament and wallpaper constellation gradually into and consumers better interaction, O2O partners and various large platforms have cooperated, the entity stores and information in the Spring Festival before the full line, we now the entire store marketing information, merchandise digitization, has been all through. This is the beginning of August 7, we and the public reviews do the drainage test, based on our information, for one of the 15 stores to do the test, that is, through the way of mobile internet to the physical stores to do the consumption, is the process through a very successful. Just now, the synergy of O2O interests is change, the first we are retailers, we can not do without the support of the brand, only the retailer success he will succeed, our perspective only the success of our brand will be successful, we are talking about the goods of the information text video to the network, we go to our server above, We go to the physical store through two-dimensional code can scan browse collection and so on, access to accurate membership and transaction information, this information sharing to the brand to quantify the allocation of product analysis and new product development, such words form a synergy. Thousands of of the franchisee, there is no professional talent, investment in large funds, they lack of security, so I hope there is a big tree can enjoy the cool, we hope to play the role of a leading brother, our brand will begin to open next year, to form a positive scale. In addition to the construction of our central bank concept, there are consumer points and behavioral points, just before the point is related to behavioral points, you share the dissemination of comments, and so on, we will give you the points, these points will get the corresponding benefits.

In this way, we think that after we O2O, members and fans can work with other industries, the first part of the exchange of goods, the second interest to the membership of the Communion. The change of the concept of Internet enterprise brings about the change of organization process. Then the iron also has its own hard, need long-term operation of the customer's ability, this is long-term. 14 words is one of the darkest painful, for me the closed loop of technology, 15 I think is a preliminary presentation, to 16 there may be a feast for O2O, then enter the stage of consumer sovereignty. This concludes my share, thank you!