The greedy snake of the Business-to-consumer

The recent business is more than, look at the lively is understandable, but there are help the birds who pretend to know what to build out of what expansion door, blocked door, financing door, broken chain door, price war door and other kinds of doors, you are a lame carpenter or a bankrupt anti-theft door factory? A look at these people is not a childhood has not played a greedy snake, the estimated cell phone are used moto. In essence, it is a greedy snake game, in order to correctly explain this theory, I deliberately used my mother 5300 played 10 minutes to revisit the rules of the snake, Last play or school use of 6210. This article is also my 5 years of experience in the industry development process of the inevitable phenomenon of the summary and reflection, since it is the individual stage of view, naturally has its historical limitations, not to measure whether rigorous meticulous, only to no-holds happy.

Scale out big snake: eight heads of snakes

Snake Rule 1: Eat as much beans as possible while not touching the boundary. The pursuit of the size of the Business-to-consumer is like a vampire's thirst for blood. This is because the customer is the typical marginal cost of the first decline and then rise and then decline in the reverse smile curve, also because in this information flow highly symmetrical, the user transfer cost of zero of the complete competitive business, only large enough to be safe enough. In exchange for the best way to scale is the price, not in yy service yy Zappos, Zappos growth curve is not beautiful, at least with the category of killer-type. Now the fastest-growing foreign-speaking and eye-catching ball is a luxury discount for gilt, put in the domestic also set up, luxury is the promotion of fashion brands, designer Brand is the upgrade of consumer brands, the domestic popular fashion brand discount Vipshop and Ihush only 2 years or so, The growth curve is straight up. But the premise is that there must be gross profit, gross margin in a period of time can not offset the cost is normal acceptable, but on the negative profit margin to sell goods or the obvious loss of the large coupons is more than two suicide behavior, so that the sales and users are meaningless. In addition, please have the students who have the closure of the school do not break all day to focus on such willful words, your focus Dili Zappos two years before the growth slowed down also sold the computer, but this is too far from selling. In other words: AMZN 99 (after 4 years on the line) began to expand the category, now in most categories is not the first and second, while another focus on Dili Newegg was AMZN and bestbuy.com together with the blast chrysanthemum. The general practitioners of the world, including China, have reached the same conclusion through practice: Extended category to improve cross sales/increase sales/adhere to the user's help is considerable, of course, the premise is the choice of goods, not a head to the heap of SKU although also can quickly Chong sales, but the category structure was destroyed; Customer unit/Net interest rate drops sharply , shortage and unsalable more and more, after the sales pressure becomes bigger, the user experience changes the bad karma also will follow. In particular, general merchandise, the consumer should not choose too low-end goods, and the ubiquitous market stalls competition, whether the price/cost/Quantity/convenience has no advantage, the quality is not protected, but should be positioned with the quality of high-end department stores, and department stores to compete in price/cost/quantity and the use of price /cost/quantity/convenience to gain market and user by overwhelming advantage, at the same time good supplier management, out of warehousing QC and periodic inventory ABC analysis, to ensure the optimization of supply chain, preferred suppliers; This applies to vertical companies as well, in fact vertical customers at home and abroad are limited by industry bottlenecks, more or less will expand the category along the product boundary or the demand boundary two dimensions, the too subdivided category will eventually be swallowed up, for example in the United States and China are happening: in the field of 3C segment such as camera/Phone line/LineProfessional retailers are disappearing, instead of big 3C retailers. In addition, Asian users and European and American users in the online shopping habits or some behavioral differences: European and American users are more willing to use the search function, because their national more emphasis on personalized, adventurous spirit, to explore to find, so in some professional strong field or some live good vertical , while most Asian users prefer fixed paths with class navigation. Relative to common ground, the known dependency, but also the need for a one-stop shopping platform, so the combination and vertical will be in 20% of the main merchandise on the fierce competition, and vertical to the general consumers in addition to deepen the vertical long tail category depth outside, Also need to increase the base of overlapping competition, that is to say, the related category extension. The top monster in Japanese mythology the eight-strong snake has eight heads, and the food chain of the owners is not likely to have a poor, malnourished little head, but a large head. When evolved into an eight-strong snake, your user ID will become the Internet/E-commerce passport, and gift card/points will become the Internet and even offline monetization, like AMZN gift Card is actually the same as Wal-Mart's shopping cards as the U.S. consumer holiday and daily gift-giving standard choice, this time you can realize that the big is beautiful. The United States of the eight major snake AMZN competitive elements will always be: Price, category and service. But the ultimate value of AMZN is not his price; category and service, but he is big enough, user use rate is high enough, is the best choice of online shopping, consumers leave it will feel life is not convenient, low price, many categories; good service is only the means by which he creates the ultimate value. The big sound, the avenue is invisible, let the consumer need you without reason, rather than need you to advertise the so-called core competitiveness, those are only basic competition or only stage effective.

Online Snake: SNAKE eater

If more than one online version of the greedy snake, on the basis of Rule 1 plus Rule 2: At the same time do not touch the boundary of more than two of the snake to grab beans to eat and prevent collisions. In the e-commerce dividend period of growth market, we are catching new customers, competition is not intense, but the dividend period will not be very long, and then inevitably into the stock market, competition will only become more brutal. After all, the border is too big eventually limited, no fence of the market constantly influx of resource consumers, and want to grow at a high speed, and eventually evolved into a public cup. In the context of less food and more appetite, the serpent must become a snake eater, eating a snake that has eaten and full food, but has not yet digested it, and has led its descendants to form a group of armed snakes. When an industry into maturity, large enterprises in order to maintain high-speed growth will certainly annex small and medium-sized enterprises, whether it is brutal offensive or relatively civilized mergers and acquisitions, the United States E-commerce market seems to have many sites, have their own space, In fact, many vertical industry No.1 or No.2 are actually AMZN Group,ebay and Gsic are also the same, have their own vertical stations and affiliates, and in the United States E-commerce growth fell to single-digit times TOP100 growth has remained above the industry average level, And most of the last 100 were stagnant or negative, and everyone's growth must be at the expense of eating the little ones ' market share and the market space they left behind when they died. Boxer's students will certainly say that the Chinese market and the United States are not the same kind of blabla, yes, our vast and large country is not the same as the United States, because America's infrastructure is at least advanced and equal, marketing resources are at least effective, and our infrastructure is primitive and backward. Our marketing resources are high cost, in the backward business environment, more likely to create monopolies. But now, the domestic enterprise of the company of business, also blew up the Horn of industry integration. On the other side, with the exception of a handful of traditional retail giants likely to act as snake-eaters, most traditional retailers may be more likely to be eaten up by the pure-business giants, which, after all, are a dispensable dessert for the former, but a main dish for the latter. In the future, snakes are unlikely to forage as leisurely as they are now, getting worse living conditions, less food, and avoiding the hunt of giant snakes or single or snake herds all day. If you don't grow up to be a big snake now, you'll soon be caught up in the woom with a big mouth, and that's one of the reasons why today's vertical companies are speeding up financing and getting as much as possible, and no one wants to be food for the future.

Capital-bred snake: Python madness

Greedy snake hypothesis Rule 3: The existence of the cheat accelerator. While it is true that foreign Internet giants have been defeated in China, the other is the fact that China's excellent internet companies are bleeding foreign capital. The giants of pure companies, no one is accelerated by the acceleration of capital, which is the same in any country, do not forget that AMZN in the profit before the loss of 3 billion of dollars, do not forget that Gsic was listed in 99 to melt 100 million U.S. dollars after the money into logistics/systems/marketing/mergers and acquisitions. In China, in particular, capital is now in an endless frenzy because of China's specificity: China's traditional retail companies lag far behind foreign countries, and the top 500 retail giants in China, which do not move thousands of of thousands of stores, are no longer ranked. Not to mention that Chinese traditional retailers have lost 10 years of online retail sales with pure-business competitors, and that traditional retailers have been busy expanding their happy enclosure, losing the chance to stifle the brutal rise of pure business from the start. In this case, the pattern of China's electricity quotient is likely to differ from that of other countries: the brutal growth of pure-business operators will occupy half of online retailing, and the number of VIP seats left to the pure consumer will be greatly increased. So, capital is more willing to cast a gamble in the Chinese market, than ever before in the United States a bigger bet, a TOP10 not only AMZN a pure company of the future, to help the pure people who have run out of scale to build the cost threshold is high enough to be daunting, using huge sums of money to monopolize marketing resources and talent, the gap between the supply chain , smashing systems and logistics advantages, the use of a strong first-hand advantage at least within a few years of the traditional enterprise space compression in Amoy, so that the future of pure enterprises whether the scale of profit, market share, the imagination of space or capital market performance can make investors satisfied, this is pure and VC common vision. This is not an exaggeration, with some of the best traditional retail businesses that have done this year's teeth-biting budget, and a pure consumer in the same field, who received a round of financing for the year at least 5 times times lower. Now the capital involved in this market is not the normal VC class, don't say you have the money, you work hard to carry the box sewing clothes to make that point, in the eyes of the World class Capital consortium is really not a money; don't say you have industry resources, because those resources are often effective under the traditional rules, the online is not so good, Sometimes it represents backward productivity. Traditional enterprises have Taobao Dad, pure business also have VC dad, the game formed a Amoy Tao inside the Amoy cross to the balance of the struggle. Finance is the king of all industries, the power of capital is invincible, unless the capital market has decided that the industry is unprofitable, so in a few years, although the traditional enterprises in the enthusiasm of the electric business is more and more high, at least at present, pure business with the help of the capital still has an overwhelming advantage, see can in the time window to grow enough strong enough. But don't forget, although the capital market is sometimes a wild chicken cold wind, but more often rational calm and cruel, the final long-term evaluation of the enterprise must be the most objective and reasonable, capital and capital market recognized enterprises for a period of time does not make money, but must have the potential and hope of long-term profits, and eventually become a profit-making printing machine, at the same time now VC will generally invest in a number of different classes of enterprises to carry out risk hedging. Before the listing, the enterprise development if more than expected VC docile like son; If the VC is close to the expectations of the same as the uncle often steer corrections, if far from the expected to wait for the VC dad to repair it. After the listing, the capital market to give the market value of shares like mother-in-law welcome daughter-in-law to package a red envelope, first let you happy, after the relationship between the mother-in-law to see if you are virtuous capable than other daughter-in-law outstanding. For the enterprise that attempts to deceive capital, the capital will certainly give the most severe retaliation behavior, draw up a beautiful parabola scar, believe recently everybody has seen, cheat sometimes is useful, but can maintain how long? After all, in the face of capital, even capitalists are small. In the end, many of the puffiness, rather than the strong nouveau riche "beach-goers", will be mercilessly torn off the swimming trunks, in the elimination of the war to expose their poor stunted small JJ, watch it, in this year and next two years naked swimming. The great ship of war is about to start, and the power and arms of the big powers are limitless, and the "Vietnam" and "Iraq", who think themselves a new generation of military powers, will be beaten backwards for decades. The arms demand brought about by the tide of capital, led to the entire industry costs of high inflation, everyone can say that this is not normal, but this is the reality, but do not worry, and when the Jin Chao receded, leaving behind is the erosion of the already built tall embankment threshold and cost down to a reasonable level.

Dead Snake: Gu Tou

Snake rule 4: Snakes need to be flexible enough to eat the larger and the head of the snake can not touch the body. At least in these years E-commerce is still in the incremental market, market demand in the blowout, for the customer has been formed, do not worry about order acquisition capacity, the most is the increase in user access costs, but should worry about the order processing capacity and order processing costs, that is, physical growth can not keep up with the number of growth, typical mouth big stomach small, Light indigestion and heavy stomach. Especially in China, where infrastructure is so backward, from supply chain to commodity, from system to logistics, from management to talent, it is not enough to meet the demand of the customers, but the cost is higher than most of the affordability of the people. In this case, the consumer will inevitably sacrifice service level and user experience to control costs, all the resources into the market expansion to obtain users and infrastructure expansion; consciously or unconsciously ignore the management level and talent training reserve, through the employing heap to solve the system Process and system solutions: instead of helping 10 people do 100 of people, it's just a matter of piling up 20 people to do 40, in which case you can't expect to improve efficiency and management, and reduce costs and error rates. A little bit of foresight of the consumer, to build, is to field bogey horse racing, user experience better than others, short board longer than others can win, but built without a map without a guide without experience, since the construction of the wrong trial and error is also growing pains. But you know, a business is a value chain, synergy chain, efficiency chain, cost chain, like the snake bones support the body, the snake is responsible for mobile, flexible enough to be able to easily. Chinese companies are still business firms, instead of electronics companies, but also in employing to carry boxes, instead of using it to carry boxes, boxes more and more, moving boxes more and more heavy, snake bone more and more heavy, but no light of the snake, so that the day will not be able to support, not to move is a collision. Most of the business to swallow the future through the overdraft of the market can not digest, in the full competition stage of the eve of the death of tendons or in the delicate operation of their own dismemberment, eventually turned into a big defeat. and a small number of companies in the capital to grow into the real big snakes must be carried out from beginning to end with the strategy to set goals, use positioning to meet demand, use marketing to build brands, to occupy the market with prices, to set thresholds by size, to win competition with speed, to use data to drive operations, to support growth with technology, to manage costs with management, and to improve efficiency with systems.

Finally, a few facts to make a summary: 1. The surface of Nice AMZN to accommodate even a lot of small, but for the big guy must be offensive annexation; 2. The largest U.S. market is also limited to the next AMZN a eight major snakes, other markets are the same, there is no double; 3. Those traditional retail businesses that do well in the United States, a big reason is that the card is competing to defend AMZN's long offensive, a AMZN can make all the traditional American retail giants gripped, the business is market-destroying, and the blind to walk self-deception is no good fate. Domestic channel has entered the multifaceted Zhongyuan era, the results of the future and the world will not be any big difference, up to three years, the Channel War will be the dust landing pattern ding. The feast will start on time three years later, only the largest; most of the best, the cheapest party can be invited, tickets are not bought to come more is not stolen, but with blood, their own blood and other people's blood, dressed in blood-stained dress big mouth to laugh loudly, late people are not welcome. The traditional brand and network brand will shine, flourish, competitive front-end marketing capabilities, product to the packaging output capacity of goods, supply chain integration capabilities and strong operational capabilities, with my big Brother Zhangxiaojun classmate said: Towering trees, it is difficult to have, flowers, spring came. However, although the banquet is more hospitable, inviting more guests, more time to prepare, but also more requirements for the banquet of elegant temperament noble family pedigree good soft whispers, disheveled behavior vulgar bad reputation prohibited.

PS:

1. This month's Web site: linkchic Elegance 100 and Big J Small v American Clothing volume retailer, the first is the fashion leader of the horse-horse, MA elder sister entrepreneurial women's fashion apparel with shopping guide site, in the United States or there is a successful case drops; the second is the Chen Tenghua of the students to start a business, when the market jumped out to start, This courage is enough to give strength; the last one is a three-crown Taobao ladies, the biggest feature is their own model of the wife of the small V, beautiful and naughty little Rong, can be bitter her family Jing brother Big J, maybe the next seven princess.

2. Recommended this month? Book: "One wins nine defeats", "out of Control", "ten years of my career" and "bizarre Behavior 2", the first is Uniqlo's autobiography, read No other feeling, I feel that China's brands do not need to imitate what fast fashion, the basic Fashion Classic section is the largest market; the second is the Internet Bible, 20 years ago, we predicted countless new trends, new models, too much power; the third version I read 5 years ago, I feel very dull does not stimulate the force, then I think the circle trap/win or lose God horse is the workplace, now this book out of the revised version, buy again to see again, more and more empathy, The workplace is actually a long period of self cultivation process, the workplace is the battlefield or the Peach Garden only in a read, the people in the workplace can also find a brighter; the last author, 18 years old, was hospitalized for long periods of extensive burns, and in the long time he wrote two books that were so strange and bizarre, Reminds me of my last period to pay Bao a small boss said I am sure no girls have time to write so much, is the drop, you said the right, to reward you for a moment, Mody ~~3. January 6-8th, the school started the first singing: "Traditional enterprises how to do E-commerce", 3 days closed small class training. Send old Xing, wheat bag old leaf, Qi Jia Deng Zong, Massosun total etc nearly 15 industry celebrities gathered sweep, I also was invited to participate in evening interactive Café exchange sharing, collision thought. Over the years, the traditional enterprises do not good electricity business, nothing more than three questions: can do? How do you do it? How to do it well? Listen to the lectures, make it clear to open again to do not late, less detours less mistakes.

4. Taobao Super Online, I believe that shop 1th and I bought a network to express no pressure, who's making this thing? supply chain; SKU; warehousing; distribution; constant temperature; cold chain; batch management; near-effect period, that request is not the general high, the margin value is still very low, but also and home supermarket to PK price and speed, it is difficult to vinyl off the cost , Taobao or the supply chain to think simple, this thing on line is able to quickly start but not make money, not how happy business.

5. The first eye to judge Amoy brand good or bad simple way: see it hanging how many Wang Wang, the better the brand flourishing less. 1. The more famous the brand, the more it does not need to be flourishing; 2. The clearer the foreground product Description/user Help the more clear and clear the more the need for Wang Wang; 3. The more Wang-wang means the worse the background system/process.

6. When the advantage lies in the supplier relationship and logistics cost control ability, the outstanding advantage lies in the powerful IT system and warehousing automation/self-built distribution. When the pursuit of cost control, excellence is the pursuit of the user experience, I believe that in the long term excellence is necessarily more than when, but to be fair, in addition to the AMZN kind of smashing money law, no enterprise can sacrifice cost for the user experience. Any WAY, the last one months of last year, China's BSkyB sky belonged to the When.

7. Jing Dong Book Ink fragrance, horizontal knife immediately 80 million, excellent egg pain outfit calm, when chrysanthemum another red. After this year, China's amzn,amzn Sky belongs to Jingdong, and in the future there will be two amzn in China and China. 8. For the last time on the new island, and an entrepreneur from the VC friends Chat, I said to him: you heard the people in the next table said when, where the guests, Jingdong, Taobao Mall, like the bus when the ladies talk about the stock market bubble burst before? But don't worry, only naked swimmers will never get through the cold winter, only those who are not strong enough to fear the winter.

9. Recently heard a new twist, some traditional enterprises to buy offline, big customers even download coupons to the store to purchase sales are counted to the site sales, in order to prove their NB, one of their own exerting force others are God horse cloud. It looks beautiful, chew, interesting. Hope is not true, otherwise it will be too happy.

10. Traditional HR and internet talents are doomed to many contradictions, whether from values, ability qualifications, ways of doing things, code of conduct, career development or salary system standards. They are not people with the value of money to make people, but at the cost of the price for this person to make money, so do not expect them to keep pace with the times, find people, please get people, hold people, stay.

11. Differences between good and bad companies: excellent companies and poor companies are working overtime, the former proactive overtime preparation, the latter passive overtime to make up; excellent companies and bad companies are wrong, the former initiative smart trial and error, the latter passive confused wrong; excellent companies and bad companies have their historical limitations, the former initiative to kidnap the future , which was passively abducted by the past.

12. Everyone love to buy and small exerting force, Facebook is becoming more and more network retailers directly sell goods platform, I believe that in the near future, the domestic b2c/Amoy sellers can also be happy and everyone on the direct upload/sale of goods, this is the perfect combination of e-commerce and SNS, Each do their own professional good things. Tencent also launched a SNS friend, slogan can be: "Tencent friends, let friends fly." To say a digression: generally called "Friends" film and television drama is not a friend for the money for the girl for the belief for the moral of the end of the dog blood plot is the picture of a friend a nameless dead horror film ~~13. Recently saw two odd person enchanting: one is the Hua of innovative factory, Google employees, the model, born Childe, temperament alarming, low-key modesty and introverted, thinking logic is extremely clear, learning speed reaction ability is very fast, Murong complex style; another is my old tub-friend, the Apple Jobs ' death, Cult leader Generation demon, the gas field is strong, love to create a dream love, love small theater and ballet, Love wine also love Spanish black pig ham, love Mercedes-Benz S530 also love Mercedes-Benz Smart, mouthful "pan Donkey Deng Idle", the drift nets to do the wind and the wind, Old Goblin one, old bully under the small Snake essence, The bark of a woman in the ghost (here is the truth).

14. I asked a PR company chick: What is cloud computing and internet of things? The girl answered with a no-brainer: The cloud is shared, and the object is control. I rub, I can not suddenly so brilliantly summed up, this is the will of the great universe ...

15. A child secretly loved the girl to send a postcard to brother, above painted a magpie, wrote the line word that Brother is Honghu, not a finch. Thank you sister, Castle Peak does not change the green water long flow, but the elder brother wants to be quail ... Another brother if there is a day of entrepreneurship and have the honor of a successful listing may not invite you to participate in the celebration banquet, because the elder brother is afraid everyone said brother too two, you understand.

16. The Fengtang I enjoyed said the following: "One of the important tasks of the staff is to give independent, reasoned, logically rigorous and creative business judgments on major decisions." However, the more important task of the staff is to foster an independent spirit, free thinking of the decision-making environment, cultivate and maintain a dare to challenge the idea of the environment, is very valuable. The position of good staff should be to know the elements, relatively independent freedom, a little pride in the bones. ”

17. The old Fengtang: "I hope those who like to use the" Hotta "to teach the young, and therefore feel very mature Chinese one day can understand the fact that: some birds come to the world, is to do it to do, rather than to avoid a bullet. "The Path of success: Celebrity's help; The first two do not say right and wrong, the latter two must be necessary, has never tasted good to learn skills. Man's life is to climb the ladder of responsibility. A meaningful job is not to inject water into a bucket, but to ignite a flame.

18. See the sentence: You always have to be the victim of others ' growth path. That's good, being a victim is also a growth, braver, firmer, more pliable, more powerful, more skillful, like my year. Since the past is not brought into the dream, the mood, even if a heavy smile into the empty, great victory has always been a great sacrifice.

19. Do not chase what you desire, you will never have it, do not ask, answer is always no, do not go forward, will stay forever. Just figure out three things: what? What do you want? Give what? The strong do not need to predict the future, because they can create the future. Losing is not shameful.

20. Pay tribute to the Zhang duty, who had hatched the eggs at the University of egg-laying, because of these conscientious and dedicated people, so that our society, which has been overloaded by the heavy load of the ship can continue to drive normally.

21. Although reluctantly, I still adhere to the 2010 painting on a not round, the theme of the year: profound trauma brought about by the transformation of life, a large half a year of degradation, just want to change turbid wine limelight. Now wake up, people want to martyrdom, first endure after the toughness, flowers have reopened day, no one more juvenile. Fighting in the 2011, not demanding perfection, not stop progress, do not need to think about, and will not forget, let the past, let the future come.

22. Jean, Hu Zhengrui Feng, Wan lan in extreme danger.