The trend of e-commerce is quality, fine differentiation, non-standard, living

Cai that the trend of e-commerce is quality, fine differentiation, non-standard, and living. E-commerce is just beginning to be standardized, people are easy to compare, but often fall into the price war. The most non-standard products are services, E-commerce will increasingly live.

Cai that the key factors for O2O success are five points:

First, there are enough operators of the capacity of the merchant's loyalty, adhesion.

Second, there is enough to operate the user's ability, customer loyalty and stickiness. To be able to do Beijing Shanghai, does not mean to be able to do other provincial capital cities. The merchant takes root area, each place merchant has different geographical attribute.

Third, a healthy and sustainable business model. Group buying mode transplant to China became deformed, many group buying businesses were killed, group buying can not meet the essential needs of businesses and users. Group buying fostered the market, so that businesses realize that internet marketing, but group buying is advertising products, not E-commerce products.

Four is to have enough capital strength. Cut into consumption decisions and transactions, must have the strength to nurture the market. The capital market is at a low ebb, prepare for winter.

Five is the team comprehensive strength competition.

The following is the 152th it Longmen record:

Liu Xingliang: welcome you to participate in this issue of our it Longmen, this period we have been forced to this hall inside the hall, this room there is a corner, I personally feel very awkward, Lenovo we are dry but only to compromise. We and you are talking about social E-commerce, this is a highly complex philosophy of the proposition, this period we are invited to the Cai CEO of the Philharmonic to share with you, we applaud.

Cai: Hello! I was also involved in the IT Longmen for the first time, and I knew that the event held 150 Doyan and was becoming more influential in the industry. Nice to meet you, I was going to take two hours as an interactive link, the organizers still want to have a primer let me tell you about our thinking about this topic, so I prepared a simple ppt, the embryonic form is last year I attended the first China O2O Conference of a speech, the name of the speech is " Half is the sea, half is the flame, with this topic to share with you the social electronic commerce of the blue Sea of opportunity or to say blue ocean such a proposition.

Before I speak, I would like to ask how many of you are entrepreneurs here? How many Chinese Internet companies have been listed today, such as Baidu, Tencent, 360 of employees? Before you say or want to know what you want to understand the content, I know the more said will release some, there is no more want to listen to something?

M: I want to know about the transition between the Philharmonic and the living.

Man: 020 is the big field, this model is established and I want to know what you think.

Male: Philharmonic live in the field of mobile internet positioning.

Cai: For us, there is ah in last November 31 announced from the Baidu part of the demolition, and then as an independent operation of the company, so we do not call Baidu, called there Ah. We have the whole brand is now fully upgraded to integrate into the Philharmonic live this brand, our users of the main brand title to live with the Philharmonic, AH will also carry some of the product role, is probably such a positioning, first with the family to clarify.

Since the sponsor proposition is socialized e-commerce, I still have some interpretation of this proposition. Of course, different people on the social e-business understanding is not the same, from my personal point of view, I still more appreciate the word Zuckerberg said, he says from the forecast, the next outbreak point will be in the social E-commerce, in the end what are the key words carrying this social e-commerce? There are a few:

The 1th is why this trend is present. At this time, if anyone wants to become an Internet overlord, what do you think is the key indicator? It's actually online time. The Internet, by its very nature, cannot be separated from its media attributes, and the value of the Internet is to swallow more Internet users ' online time, which is also an increasingly important proposition. For example, previous games, including the current video, including more apps for the search derivative, we are all competing for Internet time online. We find that the rise of social networks, represented by Facebook, is the most able to swallow online time on the Internet. So socialization no longer becomes a simple product code, but the trend of the Internet exists, which is my first understanding.

The second aspect, because the internet is essentially a media attribute to represent attributes. So the so-called have the media value, the biggest piece is later advertising for advertisers. What kind of advertising is the most effective? Is it a simple recommendation or some other factor? From the development trend of Internet media, Word-of-mouth marketing and the recommendation of acquaintances increasingly become the most effective advertising gold. If the word of mouth as the most important e-commerce advertising determinants, support socialization has become the development trend of the Internet.

3rd, because E-commerce payment means more and more mature, later payment will no longer be an exclusive secret. In this context, as logistics becomes more and more mature, we can see that socialization has become a key factor influencing a user to make a final decision.

Perhaps from Zuckerberg's analysis, including Facebook's listing, it also analyzes Facebook's own path to commercialization and plans for its future vision, and it can be seen that he is also paying more and more attention to the application of E-commerce. At present, China's domestic development has just begun, including the social electronic commerce that we see is just embryonic state. In my understanding, socializing does not mean having to do social networking, including the current Philharmonic, including the familiar ecommerce Web site, and I don't want to be a social network from my point of view, because social networking isn't something we're good at, and there's a lot of social networking in China, such as QQ, everyone, These are the representatives of social networking sites. So for us, maybe socialization is a more important proposition than a social network. How to understand further socialization? The so-called social network its success is based on the strong relationship between the middle, more emphasis on two-way friendship, such as QQ, everyone is such a form, and its most important value is the relationship between friends and acquaintances, the resulting certain word-of-mouth effect must be the strongest. With strong relations as the social form of the chain of relationships, and more mainly in social networks, Facebook is a typical representative. The social network based on this strong relationship can derive a lot of applications, the game is a kind of Angry birds on Facebook is doing very well, E-commerce is also a, so this kind of industry has a very strong extension.

Based on strong relationships, do we still have some features that we can use? I call it a weak relationship, such as focusing on a certain person, such as Weibo focusing on a star, or even being obscure, in a field where you feel that he is the object you follow, a one-way relationship is more important than a two-way one. Another important feature is that this is not based on strong relationships, but more on one hobby. For example, our company moved, from the Baidu mansion to move out to the nest, we stationed near the nest, we are most concerned about where to eat lunch, like fitness how to exercise. If the bird's nest of the talent is particularly familiar with beer and skittles, he will be our focus on the object, is based on a certain kind of life needs to form the relationship. For example, there may be a new mother, any new mother to upgrade to the time of mom, there are all kinds of distress, there are too many problems to solve, which is why many young mothers have depression, because there are too many things different, this situation may be a mother and child of the talent can help her solve this problem. The interest map may be in the strong relationship outside a blue sea, can carry a lot of e-commerce or life class applications.

In the middle of the entire social platform, whether we are Philharmonic or other websites, it is theoretically difficult to be strong, but the social platform can still help us do more things, such as we are gradually discovering a platform for socialization, based on interest, Based on the location of gradually become more and more users in the daily life of the side, people's lives are no longer lonely island, but with a variety of things around the relationship.

From the social electric business and our mainstream products can be seen, now do the field of life is only our family, other homes are basically e-commerce, or traditional e-commerce shopping guide form. Of course, whether this form of local life is successful or not, the path we choose is not the right thing to say. Of course this is the threshold of the highest, because it involves a huge line of operating capacity, I will say later, it is not a simple internet products can be hosted.

Although there are so many social platform brands exist, each site can reflect the different temperament, for film review, including Watercress is also in the revision, there is a very good to do a very detailed website, is time network. Their success shows that even in the middle of a field, do enough to have their own temperament, can also attract a part of the user to create stickiness.

The value of social platform content and interaction is huge, social platform and traditional media platform is very different, content is generated by users, and users can often produce high-quality content, This is different from the traditional Internet 1.0 times, but also different from the simple UGC, is that anyone can produce the kind of people in the above to see whether it is good or false, it is difficult to distinguish. I can see the traditional media platform user stickiness is relatively low, because the content is too broad, it is difficult to produce high-quality content. And we see the future development trend of the Internet, must be high-quality content-oriented, coupled with the nature of socialization so that the content of high-quality not only can be presented, but also more communication power. The most typical of this is Weibo, which relies on forwarding, commenting, and fan relationships to produce a very large spread. We have reason to believe that when the social platform and this kind of dissemination together, perhaps can produce a kind of magnet effect, can put the user firmly to stick to above. So we don't have the ambition to do a second social network outside of QQ, and we don't think we can do it, but social networks still have to try.

Again read the form of E-commerce, e-commerce this piece of my experience will be more, not because I am a net to buy people, I took over Baidu E-commerce in the internet before I have not bought anything, only bought a book. But through close contact in the last two years, I really see a lot of e-commerce changes in the state of the business. Plus I have been in the traditional company before joining Baidu, may not understand the concept of business is not particularly difficult, e-commerce substantive solution or business issues, in which will involve a large number of internet people can not understand the concept, such as inventory turnover. We often see a lot of pure internet people doing internet business is not very successful, that is, he can not understand the very core of traditional business concept. For example, the turnover rate of inventory, why Jingdong can do inventory turnover 1 time times faster than others? It is precisely because his inventory turnover rate is 1 time times faster than others, he can sell lower prices than others, can maintain such a business efficiency, this is from another level to interpret the low price of Jingdong strategy.

In the field of E-commerce, there are a lot of traditional internet can not see the huge iceberg under the water, the threshold is quite high, you could see now do e-commerce successful entrepreneurs or entrepreneurs, often have a strong traditional field of experience and background.

Every form of E-commerce has its existence, such as business-to-business, business, including now a new concept called O2O, will exist at the same time, but which form more access to the Internet, now apparently O2O is the most attractive eye of a more hot form.

I share my opinion on the trend of E-commerce, the 1th no doubt, quality is the trend of e-commerce development, which is why the value of Taobao mall more than Taobao truth. We know that in addition to price factors, E-commerce also has a key factor is convenient, if these two factors can be satisfied, the user with this high consumption of the crowd, with the entry of some traditional e-commerce business owners, quality will become the development of e-commerce industry a very important trend.

The second trend is fine differentiation, this was particularly prominent in 2009, when a large number of broken down the vertical web site flourished, there are selling electrical appliances, selling socks, selling toys and so on, you can think of the business can be found in the E-commerce industry, including selling socks, toys have. You like me 2010 years to take over E-commerce, if I still want to do e-commerce, what do you think the business can be successful? I said that in daily life there is a gathering to buy and sell things, the move to the Internet will certainly be successful. For example, under the line there is a place to sell electrical appliances, gome, suning, then developed up the Jing-dong, the line has a book city, online from the book as a cut mouth can grow into excellence and when. There is shoe city under the line, there are selling shoes on the line, there is no field to do under the line to try, must be successful. For example, under the line there is home decoration city, the line gathered in the local line can certainly do. And I entered the Baidu before, is called Dr. Lun's company when vice-president, is selling glasses, the line so many glasses shop are concentrated selling glasses, so I said there are also selling glasses on the line can sell good. All these tell us that E-commerce is not a new thing, but the people's lives have changed the same, the original people think online can buy things, online can buy, this is the second trend of more and more fine differentiation.

When I was talking about it, people thought why there was a thing a few years ago someone sold, such as selling books later sell electrical appliances, and some things such as glasses, home decoration, only individual people on the internet to sell, this is the third trend I mentioned is non-standard. The earliest is the easiest to understand, for example, for example, buy a iPhone4, you say iPhone4, we all know what it looks like, what function configuration, you said to buy a book, this book called "Jobs Biography", we all know what the book specifications, you buy in any place are the same. So, it's because of standardization that it's easier to make comparisons online, and people are buying these things online.

But with the development of E-commerce, you will find that the easier to compare the goods, in fact, often fall into the final price war, because there is nothing to compare, plus you pay logistics are similar, what comparable? can only be compared to the price.

So often some traditional entrepreneurs ask me: You see this product is not suitable for sale on the internet, I said you first judge yourself is a standard product is not a standard product, if you are a standard, you must not try to do it yourself, because the sale of standard products can only be Giants, the first to win the market is definitely not to win in the gross margin, Must win in the inventory turnover, scale and so on. It is impossible to make a business network of vertical standard products. If the sale of non-standard goods, such as home decoration, every home decoration is not the same, the user is difficult to carry out an objective comparison, there are geographical constraints, in this case you can protect their own gross margin.

So I support a lot of friends, if you have non-standard goods or something, or something, you can try to do their own business electronic web site, he can protect their own profits, margin is to ensure that their own enterprise fundamental development factors. What is the most difficult margin to compare? That is the service, is the life service, this is the Philharmonic to do the work.

We hope that in this market has just begun, or not at the beginning of the time, to fully study the life of services this does not have any comparable "commodity" goods, how to use e-commerce means to achieve consumer decision-making, ordering and even consumption, this is also very difficult, not small companies can do. Frankly speaking, we in the split before, in Baidu internal also spent more than 1 years of time to study this thing, that is, life services How to achieve e-commerce, is not also like ordinary goods online to allow customers to choose, to order, to trade.

The fourth trend is to live, the previous E-commerce we understand is online shopping, is to buy a commodity, it is simply considered to be offline procurement of an online channel. Now the electronic commerce more and more life, and people's daily life of every aspect, bit by bit is getting closer, more and more into people's lives in the middle.

Taobao is also a great company, it is the great thing is so early cut into the consumer-to-consumer of the field, change people's Way of life, at least let a considerable number of people, especially young people change the way of life. Even in the United States, traditional e-commerce accounted for the total social consumption is only 8%, space is still very large, in China is about San, in addition, the larger space is people's daily consumption of all aspects, there are too many aspects in the Internet level has not been achieved, we have reason to believe that, may be in the day-to-day consumer areas, There are many areas that can help people solve their life problems and change their lifestyles.

It is based on these points of judgment, Philharmonic live the emergence of the birth. In the Philharmonic live, we have to avoid the unreliable things, not reliable business, this is so it is only recommended a reliable life service in a place. Second, we think that in the middle of subdivision, life service itself is a subdivision of the field, the middle also contains a lot of subdivision areas, including marriage, mother and child, leisure and entertainment food and so on. The difference between each industry is also relatively large, so we need to pass a product, suitable for the majority of the needs of our industry, but also need to deep into every industry, it is very difficult. If we can't do this, we can't become the brand of life, we also hope that we can adapt to the development of this non-standard.

Will socialization plus O2O be equal to the E-commerce solution of life services? From this point of view, we also do not have a good solution now, but this is what we want to do, how to integrate socialization and O2O before. First of all, I am in charge of Baidu's first year Baidu Alliance, there is a great change in this I am not a so-called success of the experience of the sharing, but not a successful person here, but just like everyone else an entrepreneur, a lot of things we are practicing, some still in the imagination, not success, nor experience, Just to share and think.

How to solve it? Theoretically speaking, the O2O essence is very simple, that is how to lead the online users to the offline consumption. So, what is the core of O2O, at this point I and a lot of people engaged in O2O this field of view is very different, especially to do group buying. They understand that the core of O2O is trading, I understand a link before the transaction, and the essence of O2O is consumption decision, which is the essence of O2O that I understand. Why do you say that? Why is it called O2O? Can take a look at the Internet now what form can carry O2O? For example, search, in fact, can also be hosted, users search on Baidu, go search I want to find an early education center, want to find a shop under the line, he is not looking for the line under the shop, when he through various links to judge an early education center is very consistent with my baby's growth needs, went, this is not a kind of O2O? From this point of view, Weibo is also a kind of, Facebook is also, the representative of the social network is also a kind of even the most traditional web site directly hanging a banner can also be loaded, but these are not O2O mainstream model?

The second is in the traditional E-commerce field, there are actually some people who sell goods try O2O and very successful. such as Kelan diamonds. This high value commodity e-commerce site, when they do e-commerce, they feel that their value is higher, one thousand or two thousand or even tens of thousands of dollars, the user is difficult to resolve only through the environment of the Internet to purchase it, so they built a relatively successful business model, that is, in the city built a experience shop, the price is relatively cheap, And then through the online publicity, some promotional and so on the internet means, so that customers formed a decision, can also pay a deposit, the user's real purchase behavior is actually the user ran to the physical store to experience before will buy. So is this a 02O? It seems to be in theory.

Group buying is a kind of O2O, the rise of the time to pay is a deposit, if not to this money can also be refunded to you, the real consumption is done online. From this point of view, O2O is not a new word, a fashionable word, but only already exists in the middle of many Internet products. Why is it so hot now? is because in fact no matter what form, my experience is that you want to do O2O must solve the consumer decisions, online ordering, online formation of transactions, not to allow users online transactions, this view may not be the same as some people stressed.

Why do I say O2O is online ordering, offline trading? It really stems from the fact that I have been in the traditional industry for many years. We know that selling goods and selling services are essential differences, if you have done in the service 0 bred, all the store owners in the traditional industry will be training. The biggest difference between the service industry and the commodity trade is that the production process and the consumption process are produced simultaneously. When we go for a haircut, a barber, he gives you a haircut. You are also consuming, so there is no stock in the service industry concept, or the concept of inventory of traditional goods. If there is stock, what is inventory? The stock is his time, if a barber shop, restaurant or foot bath center, wedding Photography shop point, he rented the house in that place, no one to spend, then he can not produce, and there is no way to form a trade, there is no way to obtain income, this is the essence of a service industry. So why I do not agree to say is O2O do services must be online transactions, this is a bit of a fool, not even production out, how the transaction happened, it is impossible. To be a good O2O, first of all to understand the nature of service, you understand how to make it production, you only have to make it production, the time to use it in stock, it is possible to generate revenue.

Another feature of the service sector is information. We know that today China's e-commerce environment has been sent to enable the product information online, everyone online to buy goods, any product can be searched. But the life service industry is not the same, so to solve the life service industry E-commerce problem, the first thing to solve is information. We feel that the online information is too asymmetric, users do not feel that the Internet Life Service information is too little, or too much, not that it is not suitable for their own, but still feel too unreliable. A lot of information is messy, is false, you are cheat have no place to express your opinion. The O2O of Life service industry first solves the problem of information symmetry and information availability.

How to guide this information to be reliable? Comment Mode is not the future mainstream solution to this problem model? I personally think it can solve some of the problems in the industry, but it is difficult to solve the whole life service areas of the problem. From the essence of the product can not overcome the problem of authenticity. There are also many who question the pattern: How did this comment arise? There's really no way to tell. In the middle of the current industry, the user has no choice, plus in the catering industry, after 10 years of accumulation, did precipitate a lot of praise, but this model in other industries to expand it is very difficult, because this product model has limited the authenticity of the expression.

Another is wireless, just a friend asked wireless in the Philharmonic live positioning, wireless for us is very very important, this is my personal most concerned about the field, you want to do local E-commerce wireless is essential, the future value even greater than the PC end. Wireless present is anytime and anywhere can enjoy, filter information, can only for local information screening, this local not only fell to a city level, but also is the community level, or even 500 meters within the site level of such an information aggregation. Additionally, wireless can be used to fragment applications. So wireless on the whole field, whether it is Philharmonic or for other companies are also very important, our wireless team just set up soon, but also our most concerned about the team, the future of the application of wireless load must be very heavy. The last sentence summed up, for the life service China's E-commerce solution, I think we must solve the problem of consumer decision-making.

So what are the factors that make a successful O2O? This may frighten everyone, the real analysis seems to be a lot of important factors, each factor is not a simple thing, let us see an example is Ctrip, if you say which is China's more successful O2O site? I personally think it is Ctrip, no outside of the hotel information through a product integration form, more easily compared to the present in front of the user, so that the user is very good choice I want to live in the hotel, room type, recognized prices, online generated a consumption decision, ordered, and then travel, to the local occupancy when the time to produce a settlement , so the settlement is done offline, online formation decision, offline trading. Ctrip is also in a certain field, vertical field first cut, and then extended to the entire tourism industry, the formation of a complete O2O solution, this kind of thing is reliable, can be made. Even if we take Ctrip as an example, we can see how difficult it was when he started, but fortunately there was not much competition.

Therefore, you want to do a good job O2O must be clear analysis of their own: there is no ability to run good business, have the ability to operate with customers, both indispensable. If you're just an Internet person's mindset, feel that I have special access to the user's ability, like Baidu, users are searched above, or QQ, users are above, or I have a good website resources, I am a traditional community from the people, you can do O2O? No, O2O. Consumers to solve the consumption decision, a very very important node of consumer decision-making is the merchant, see you have enough information about the merchant, as well as business operators and management to expand the ability.

That year, Ctrip and the same art dragon in the airport hairpin, in Baidu to buy keywords, on the one hand, user access from Baidu to, on the other hand through the interception of the way, because all people who want to live may have to go to the airport, the railway station, so the use of a very stupid method, even though the 10 cards issued, only 1 to register effectively, This is also a good way to retain users. At the same time Ctrip what is the strongest? The ability to control the most powerful business, so some large hotels do not dare to offend Ctrip, because Ctrip has become their biggest channel, when he has the ability to control businesses, the two points stacked up to do O2O.

When we do this industry, you are not sufficient to manage and operate the Merchant's ability, you are not sufficient to operate the user's ability, are to consider, especially the life service. Life service also has a characteristic, the geographical attribute is very strong, you can do well Beijing Shanghai, not necessarily completes other city, because the geographical attribute is too strong. The merchant is rooted in every region, the user of each place, have each city different attribute, different culture, you may be in Beijing may be the traditional palace dish popular, but the palace dish is in Shanghai to fall out of favour. Why I said the Life service domain is the most difficult domain, theoretically has the very good operator household system, has this mechanism in, has this team, you have the ability to operate the user, but also manages each local local attribute in, this is very not easy.

In addition, I would like to emphasize that this may be related to the origins of my business, in order to do a good business model, it must be a healthy and sustainable product and business model exists.

Buy the rise of many people said, simply in Baidu do buy it, there are hao123, Baidu and other resources can certainly be done. But I do not do group buying or do not want to do group buying, especially the transplant to China to come after must be dual-lose, for users and businesses have no real value, in fact, verification is the case. We have investigated a large number of businesses, perhaps we see some of the scenery, publicity up some businesses do this product operation is very good, to bring their own popularity, but more business is miserable, the regiment took my old customers all regiment away, to buy people to spend, the old customers look at the heart is uncomfortable, I used to spend the money. Plus the crowd are one-sided pursuit of low-cost, old customers a look this consumption and I am not a grade, the shop is originally serving them, and now do not want to come. And the consumers who are fooled by group buying also want to he has done a group purchase, after the non-group purchase I do not come to this, coupled with the blind on the purchase, resulting in a decline in service standards, including a large number of volumes, I believe that enough to buy or have a lot of blood and tears in the history of the inside, luckily we did not do group

Buy the business of the marketing demand is not satisfied, theoretically, users like, in fact, users are not really like, so cheap can go once but find service dehydration, find others do not queue, you still have to queue, found that with their own imagination is not the same, the user also lost the freshness. So, under this group buying mode, we find that the user is actually not sticky. A user group to buy the roast duck, he saw this roast duck and cheap to go, he also enjoyed the satisfaction of the purchase, you said he would mind me this group buying is where to find a vote? Will not mind, the user on the group buying site is not viscous.

Group buying this mode into China has gone sour, abnormal development, did not form a winning mode, it is a double loss. What in the world is a winning model for a healthy, sustainable win? is to truly meet the needs of users, and really help businesses business model, perhaps this is the Philharmonic live to try the future of the business model, I do not know whether to succeed, even if I do not know how to do, but I know what should not do.

Whether there is a strong financial strength to do the protection, is also one of the key factors. To have a relatively strong financial strength. At present, the e-commerce capital market enters the low ebb period, many e-commerce websites are unsustainable even some companies begin to lay off workers, fall into the realm of bankruptcy, because in China, E-commerce is not yet a profit model, or need to burn money in the industry. Like Taobao over the past 10 years to burn the amount of money we do not know. Do O2O you want to cut into the consumption decisions and the final deal, we must cultivate this market, have the strength to nurture the market, have the strength to prepare for winter, there is the reserve of the funds to nurture.

The final key factor is the team, a lot of people ignore this, think that have a product idea can enter the O2O market. In fact, several of the above can be solved, the team is the most difficult. In the whole O2O field, this team must have strong enough product ability and strong enough operation ability, two legs are indispensable. Traditional internet simply rely on technology, products can be done, in O2O this field of light products absolutely can not, must have a strong operational capacity, you said the operation is very strong is it OK? Also no, essentially, the more to the back of the comprehensive strength of the competition, your products your technology, data mining ability if you are stronger than your opponent can come from behind. To do O2O depends on whether your team is good enough to match, the operation involves two aspects, all in all, the team is very important.