The vision of the Chief of the traffic

A few days ago in the newspaper to see two news, one is the Beijing Municipal Commerce Committee issued the "on the promotion of online retail business development", to encourage the existing information management of the traditional retail enterprises, the establishment of online shopping malls, to carry out online retail business The other is China UnionPay's high-profile announcement that it will assist its subsidiary Chinapay to vigorously promote online payment business. In my opinion, these appearances are a sign that Chinese e-commerce is about to explode. In the economic crisis environment, as a reverse economic cycle industry, the rapid growth of e-commerce, and most affected by the impact of the industry contrasts, the government naturally began to pay attention to encourage advocacy. But in the domestic big business environment is not developed enough, the Social credit system is not mature, the government's promotion is undoubtedly crucial. As with the highest penetration rate of the global network of South Korea, it is in the last financial crisis in South Korea's domestic economy has been hit by the big environment, the Korean government began to vigorously promote E-commerce, the Korean E-commerce market today, the unprecedented prosperity, is the so-called good wind by dint, send me to the sky. The state-owned financial enterprises such as China UnionPay will only add to the icing on the cake. It would not have been so much of a market that was close to 300 billion and growing at a three-digit rate every year. In the internal cause of external factors are available, China's E-commerce development will be on the highway, I believe no one will doubt. For a time, the company became an enterprise, capital, and media focus, frequently appearing in the mainstream media. Big to Sina, Baidu, Cbsi, Wal-Mart, Gome, Su Ning, the big three of these internet and traditional enterprise giants, small to zhongguancun only one or two retail stores of small bosses, have raised the banner of the Horn, to multifaceted, hunting the world. Can not realize that, not the people who want to come to the river, not enough awareness and preparation and sustained investment and determination, inevitably hit a badly beaten. Here, I have seen in the past few years in the public arena to hear the thought of some of the summary to share with you, I hope that we can be less blood flow points less than the school fees.

The Dark Horse has every year, and yesterday is especially much

Every year, the companies will have a few black horse, not according to the common sense of the card, to the low price of the aggravating, in a short period of time, the fame of sales soared, leading a two-year situation is very common, but a little longer time, Dark Horse into a short-lived yesterday. Last year's 3C Black Horse out of the most, counted down there are five or six, including the big it giants. Today again, these few are still strong, not to stop investment is dying, and some direct closure of business. In fact, from the Black Horse appeared, it has been doomed to this end, now is not a few years ago, with a low price of word-of-mouth spread can be quickly bigger and stronger era, the previous path to success of the case, there is a reference but not replicable. Five factors that affect users: price, speed, inventory, service, Web end user experience is integral, the price and ignore the other several factors, and then four factors rely on the accumulation of time and hard strength of the embodiment of no shortcuts. The first factor is not difficult to price, difficult is under normal circumstances only through economies of scale to obtain price advantage, it is not difficult to sell a loss to earn a yell. Once there was a view that it was hard to make money, because when the market leader wanted to make a profit, there were always those who came in at a low price and the leader had to do the same at a low price. In this view, even Amazon can be dragged to death, but in fact even the more powerful than Amazon's retail giants are not stupid enough to compete with Amazon. The seemingly correct point of view is to overlook one of the most important prerequisites: as a successor, how long can you spend with someone who is in front of the lead? Can't afford to consume? Is it worth the loss? It takes at least three years to grab a competitor's market by relying on a price advantage. People who have been painstakingly built for many years will not be destroyed in a short time, even if you grab some users, but also those who are only highly sensitive to the price is not loyal to the quality of the users, once you can not meet these users, they must leave, or you can only long-term loss of money to keep these users, not the economy, will only drag you down. Only through the comprehensive strength to healthy competition and vigorously excavate incremental market, not a day's work, need plowing. Keep in mind that it is a protracted war, not an explosive force, but endurance.

Congenital malnutrition in China's Business-to-consumer

Although the domestic environment of the two years is much better than before, but compared with other countries soft and hard conditions are still different, this gap I am afraid for a long time can not catch up. It is mainly embodied in three aspects: credit mechanism, payment/distribution and profit/cost.

1. Credit mechanism: China's whole Social credit mechanism is weak and even missing, on the one hand, it has not established an effective credit system linked with the enterprise/individual, enough transparent information degree and the protection measure to credit mechanism itself and the disciplinary rules on destroying credit, on the other hand, due to the relative backwardness of national economy and cultural quality, Frauds that undermine trading rules and ethical principles are often seen, and our media tend to be particularly interested in the darker side of society, leading to a skeptical distrust of all matters involving property interests. Take China and South Korea to contrast, the South Korean online users of the highest age group is 30-40 years old, and the age of 40-50 years also accounted for a small proportion, while the Chinese online shopping users mainly concentrated in the 20-30-Year-old and under 20 years old. Korea's mainstream online shopping group is the most consumer power, and China's mainstream online shopping group is the youngest and most receptive to new things, I think the difference between the two do not need me to say that we naturally understand. In developed countries, the bank is the online shopping direct participant, plays the very important role in the transaction safeguard, but our bank seemingly has not been too much, as long as the bank own assets not to suffer the loss, to the user's transaction loss is not the concern, causes the user only to rely on the suspicion all to protect oneself. Visible credit bottleneck is a very serious problem, this is the whole social environment problem, not a few enterprises can change the industry, to rely on the government, financial institutions, industry and media joint efforts. Only the society has established the credit mechanism, the mutual trust idea between people, the Chinese person will develop rapidly.

2. Payment/distribution: Due to the lack of credit mechanism, the most affected is the payment and distribution, Alipay and C.O.D. are typical Chinese products. Because China is a debit card rather than a credit-cards country, banks pay online fraud-fighting, and Alipay replaces the bank's role in some way. But even Alipay can not fully guarantee that fraud will not occur, C property is not lost, and for B is zhanya funds flow and disputes after the dispute is also miserable. So c are more willing to choose to pay on delivery, at least the interests of C can be guaranteed, but for B, the delivery of cash means that the additional handling charges, the rebate time and user rejection/courier company stolen losses and other risks, and can provide delivery of goods to the delivery of courier companies Limited selectivity, leading to most of the company's business dealings with express companies in a quasi vulnerable. and the logistics industry itself, China's logistics environment is more than the highway, not like the history of the Chinese mainland countries such as the United States, logistics is highly developed, and not like island countries such as Japan and South Korea and Taiwan, thousands of retail store support line online shopping. In order to guarantee the speed; Delivery cost; service and rebate time, large business such as Jing Dong Red children and so on through the self-built distribution to meet the needs of their businesses, it is helpless. It's also interesting to say that logistics has become one of the core competencies of the industry as it becomes a bottleneck in China.

3. Profit/cost: The profit margin of China's consumer is quite low due to the disorderly price war and non profit orientation of domestic operators and the irregular distribution of retail channels. At the same time, due to the constraints of various factors, the cost of Chinese business is very high, especially in the operating costs, distribution costs and promotional costs. Operating costs: The number of orders per person to process orders, the United States is 3 times times that of China, the equivalent of 1 of people to the cost of 30 orders, and you put the cost of 1 people on 10 orders (the profit per order is lower than others), this is because China's software and hardware conditions are too backward, For example, the U.S. consumer Warehouse management using automated assembly line technology, the demand for manpower is small, inventory error/Loss is also small, and the Chinese consumer's storage is basically rely on human flesh propped up. Distribution cost: By the domestic logistics environment constraints and user pay habits of the difference, the distribution of Chinese consumers is a loss subsidy, unlike the U.S. distribution is to make money, and Fedex/ups and other express companies to negotiate a discount, and then accept the user, buy more and more, the user is willing to accept. Promotional costs: This is related to the overall maturity of the Internet, the majority of American consumers orders from the alliance/comparison shopping/sem effect marketing, and in China, the effect of marketing access is not strong enough, the customer also has to do the burning money education market, new customers to get the cost of basically more than order profits. In the United States, Amazon attaches great importance to marketing companies, the market cost does not exceed the total cost of 15%, I believe that the Chinese market on the size of the company will exceed the total cost of more than 20%.

Analysis of four problems in traditional enterprises four key points

Listed above the business of the current situation and problems, I believe that we have a certain understanding, will be prepared. Let's talk about the preparation and the main point of being a business-to-consumer before you do it.

Question 1. Do you know enough about the Business-to-consumer?

Before you have the idea of going into the business, don't worry about blowing the horn, trying to investigate the history of the business, the status quo, the problem, the expertise, the market size, the growth rate, the profit/cost, the competitor intelligence and all the necessary information. This will determine what you do not do, how to do, if a line is wrong, then the faster the farther the effect is greater. Vancl is able to come up on a good start, one of the factors is ready to do well, VANCL originally spent a year to fully understand PPG, all the details are clear before officially started, can follow PPG go right way, avoid PPG made mistakes.

Question 2. Is it a slogan or a determination?

Many times, the traditional enterprise to do business is often the brain of a hot, shouting gongs and drums loud, make a big move, yinianbanzai down not too smooth, there is no enthusiasm, and finally halfway out of the voice became a device. Should be the enterprise's important strategy for business, long-term adherence to see the effect is rewarded.

Question 3. Just want to do or must do?

Want to do or must do, decide how big. Some traditional business owners, people are very open-minded also have the courage to take the lead to promote the development of online business, day-to-day operations to give strong support. But being involved in offline business is a conservative attitude when it comes to making big decisions or making changes. I have served a traditional enterprise, online sales to achieve tens of millions of a year, accounting for the overall 30%, can be said to be the domestic traditional enterprises to do the most successful, thanks to the boss's delegate and full authorization. But in a few decisions that can be a big boost to online business, bosses hesitate every time to miss out on some good opportunities for development. In private conversation he repeatedly stressed that the line to the line to big, I always ask him: "Online for you, just want to do or must do, the two results vary greatly." "Every time he was honest, he didn't have a clear answer," he said. Until a number of changes occurred, the company decided to adjust the center to put online business. The same enterprise, at the inflection point of opportunity, choose to go left or right to go the result is completely different, often decide to choose is to think or must attitude.

Question 4. Can you afford to turn around?

In the process of doing the business, because of the contradictions and conflicts inherent in their own businesses, it is inevitable to undergo a painful turn process, mainly in the early stage, the online business has not shown the effect of the same time offline business under impact. At this time the most easily shaken retreat led to short naught. It is essential to find out if the contradictions between online and offline business can be transformed into complementary ways to promote coexistence.

Important 1. The introduction of professional talents and trust support:

Any enterprise, the core team is the most important. What kind of person is suitable, how to employ is the key. For example, VANCL has a strong team of stars, more than 20 members of the president's office and senior executives from the distinguished, when, red children, PPG, the home of the famous enterprises such as the Sea LAN. But this team can only play the biggest role in Vancl, because most of them are internet people, more accustomed to the play of internet companies, and work together for many years with close, mutual trust, while aging also can play the strengths of these old subordinates, give their full authorization and space, and VANCL is a new platform , without any historical bondage. Is the so-called honey, my arsenic, such a team put to the Saint-Angelo and other traditional clothing enterprises, it is estimated difficult to accomplish, and may even make a huff. Personally think that the traditional enterprise is more suitable to find a company with both the successful experience and the business of the leader to form a new team and give full authorization to trust support, but also within the enterprise to find both familiar with the enterprise situation can coordinate internal relations also have the pioneering challenge the spirit is willing to accept the new deputy to assist

Important 2. Continuous Determination and commitment:

Business is never a fast-growing industry, but an industry that can see benefits for at least three years, even if it takes longer to reach economies of scale. In the meantime, what is needed is constant input. Do not invest money, only to cast is not the place, has not achieved the goal. And the purpose of the development period should revolve around sales volume, the number of members, popularity and other indicators, profit is not the most important, so the enterprise in a certain period of time it is best not to the online part too big profit pressure.

Point 3. Balance and distribution of internal resources:

Traditional enterprises to do business, online line under the conflict, often on the line in order to "overall situation" to make compromises, resulting in the company and the line of competitors not competitive. And in the internal resource allocation, is usually the online part of the leftover, a vicious cycle, resulting in "poor business". Online and offline should be viewed as equal two complementary businesses, not just a supplementary business. Ideally, resources and policy should even be skewed towards the online sector.

Point 4. Good business fundamentals and information base:

The biggest advantage of the traditional enterprise is its powerful industry resources, if the offline business is not good enough, there is no way to support online business. And the enterprise of the information management system is very high, and offline business docking also on the system has a certain requirement, such as online inventory under the line and internal allocation, CRM sharing.

As we have said so much before, we may find it difficult to do business in the middle of the development, because the development of the enterprise is a curve that the marginal income increases first and then decreases. It is because the future of the Business-to-consumer is too great that it is too difficult. The United States Newegg 2 billion U.S. dollars a year in sales, some product lines (such as chassis) has accounted for 20% of the U.S. retail, and China is the world's largest and fastest-growing consumer market, unlimited space. I believe that in five years China will have at least two to three tens of billions of customers and 10 more than 1 billion of the size of the business and at least The. The biggest consumer market, high-speed growth of the sunrise industry, who does not move? Chairman Mao has a cloud: the length of the scenery should look to the volume. To treat lofty things, we must use long-term vision, positive attitude, there is unlimited hope.