To create the No. 1th store, for the future, hundreds of millions of people in China can stop going to the supermarket.

"I am the most annoying shopping." Create Shop 1th, is to the future of hundreds of millions of people in China can no longer go to the supermarket, at home to fix everything. "1th Shop co-founder and CEO Gege said.

Turn 0 to 1.

The two disappeared into public view in November 2007, when Liu Majestic, then Dell's China president, and Gege, then Dell's global sourcing vice-president, abruptly resigned. In July 2008, they returned with a High-profile "Shop No. 1th" announcing a "cheaper online supermarket than a supermarket".

"A good partner is the cornerstone of a successful venture!" Gege is very grateful to have such a partner Liu Majestic, and on several occasions that the two people "good feelings." As for their acquaintance, it goes back to 2003 years. That year, Dell founder Dell The Gege, who previously served on Amazon, to Dell. Later, a chat, Dell asked Liu Junling: "Do you know our new global sourcing vice president?" So Liu went to the office to visit him. Since then, two people often chat together. One day in 2007, two people together as usual, Liu Majestic suddenly said to just: "Let's start a business together!"

"His ideas inspire the entrepreneurial genes that flow through my veins," he said. Gege immediately promised Liu Majestic's proposal. They abandoned Dell's generous pay and benefits and moved to a more than 10-square-metre office in Shanghai's Pudong Zhangjiang high-tech park. With only one table, two of people sat face-to-face, thinking about what to do with their business.

"We must do a mature business, even if we can not convince, we cannot afford the opportunity and the loss of time." "More than 10 hours a day, constantly writing business plans, constantly making assumptions, doing market research, research data, four months later, E-commerce has become a mutually convincing area."

"Amazon's experience tells me that e-commerce must be something of a scale, not a vertical category, because once you have the platform, the flow and the trust of the customer, you have nothing to sell." "At just the 1th store as a whole category of online supermarkets, the main food, beverages, beauty and care, such as FMCG.

July 2008, store 1th officially online. Gege and Liu Majestic hands-on, their own design logo, recruiting staff, distributing leaflets, to the warehouse picking, inventory, and even personal delivery. A visit to the Trade and Industry Bureau, in just being a young staff reprimand, feel very humiliated, but on the second thought: "You can not let go, how to start again?"

E-commerce is about the scale of efficiency, in order to rapidly expand, almost all of the electricity business sites are desperately burning money, the price of war with users and orders. Because of this, the first problem facing the electric business entrepreneur is how to raise money? Shortly after the establishment of store 1th, it faced financial difficulties. Once, Gege and Liu Mountains to Shanghai Puxi to see a more than 30-year-old VC partner. They prepared a very full PPT, the core competitiveness, business model and market analysis written clearly. However, after meeting, talk about a few minutes, the other party lost interest, began to give them "class": "You are professional managers, know how to do 1 to 10, but do not know how to 0 into 1!" "I had an entrepreneurial experience in America," Gege argues. But the other side mercilessly said, "Here is China, not the same!"

They spent 3 months doing catalog marketing before the 1th store was online. "We worked day and night and made 300 pages of very exquisite catalogs. Because before in the big company to stay accustomed to, so very generous: the first time then printed 100,000, each cost more than 10 yuan, so more than 1 million yuan to burn out. Gege recalls.

In addition to printing costs, distributing a copy also requires a few dollars. In order to save money, Gege sent their own staff, "I also sent a directory in the community, one night, I also took a professor at the University of Washington, a friend to send a catalogue, each carrying a student bag, but in the end was the community security to stop." ”

Gege expected the order to fly like snowflakes, but soon found out that he was wrong. "The catalogue is solid, and e-commerce should be dynamic." ”

Out of the trap of catalogue marketing, shop 1th tries to cooperate with Internet enterprise, and promotes on the platform of Tianya, Sina, Xun and so on. This time the right approach, the number 1th shop customers from 10,000 to 100,000 in half a year. After another six months, the number of users has reached 1 million.

Initially, shop 1th was ambitious and intended to start a full category sale as soon as it was online. But few suppliers will rely on this obscure little web site. This forced the new focus on the daily life of the fast consumer goods business. But the gross margin of the FMCG is too low, IT system, warehousing and logistics cost calculate down, the loss rate of Shop No. 1th is even higher than other operating 3 C, clothing of the electric business website. "If the turnover rate is high, the cost is reduced, and the purchasing bargaining power is increased, it will add up to the same." "This is gege comfort own under the whole strategy, after all, focus on daily fast consumer products of the electric quotient few, differentiated positioning can make store 1th avoid death in the opponent's price entanglement." (This digest from Jiang Hongjun, "Caijing" reporter He Shulong, Xinhua reporter Feng Xiumin co-authored "Chinese Internet Business Hero Biography" book)

Entrepreneur Roddick said entrepreneurship, "first of all, you must have fun." Second, you must put love into the place where you work. Again, you have to go in the opposite direction to everyone else. ”

From the broad vision of the whole category to the focus on daily necessities, the strategic shift in number 1th is also in part a shift from professional managers to entrepreneurs. Of course, the small vertical category to do fine, the whole category will not be too far. "There was no bargaining power in the past, and now we have no less bargaining power than any business." "We don't have to worry about suppliers anymore," he said.

At the 10 anniversary forum of the Yangtze River Business School MBA, Gege published a speech entitled "Ten Entrepreneurship". His first enlightenment is called: Entrepreneurship is a marathon, not hundred meters.

He thinks he can do it because he loves it, "Jobs said, and the only thing that made me come to this day is what I loved." If you do not find it, you have to continue to find, do not give up, in the future when you find, your heart will tell you. That's the passion you're looking for. "Gege to explain," is to eat the time also want it, sleep also want it. The first thing I think about every morning is to go to work in the office, because I thought a few good ideas yesterday to realize. I know that today when I go to work, I will encounter many difficulties, some technical problems, some personnel problems, all kinds of problems will have. But I am eager to meet these challenges, without these challenges, I do not need to do, anyone can do. Cross-flow, the square shows a hero. ”

American writer Mark Twain said: "Don't give Up your dream." When the dream is gone, you can still live, but you have ceased to die. ”

Online Wal-Mart

In the early days of store 1th, the slogan was "Online Wal-Mart".

Wal-Mart, the world's largest retail chain of global turnover, now has more than 10,000 malls, employs more than 2.2 million people, and its size and business philosophy have made countless entrepreneurs praise. Jindong, the founder of the domestic chain of Su Ning, has said that Su Ning will be called "China's Wal-Mart", Ma Yun in 2008 is more Hao, "Alibaba will surpass Wal-Mart within 10 years."

In theory, electric companies do not need to be like Wal-Mart in the global distribution of their own sales network. Only need a unified official website, can display more than Wal-Mart more complete goods. And once the volume of users has soared and the scale can rival Wal-Mart, its benefits will naturally be comparable.

But it is because of the huge profit space to see E-commerce, countless entrepreneurs and capital influx, in order to encirclements users do not discount means, so the price war and other vicious competition means, e-commerce business environment has also plummeted.

Weak Gege want to rely on their own strength to build an "online Wal-Mart", it is not easy to do? In front of shop 1th more realistic problem is: because the electric industry capital giants everywhere, the competition is brutal, the emerging enterprises difficult to find financing.

In May 2011, Wal-Mart, which was intent on entering China's power industry, took a stake in store 1th, with 65 million dollars in 1th stores and 20%. Store 1th is finally getting on the edge with Wal-Mart for the first time.

Before contacting store 1th, Wal-Mart had negotiated with the board of the Jingdong Mall for more than half a year, although the valuation and other issues were all agreed, but Jingdong Mall founder and CEO Liu Can not accept Wal-Mart's offer of the overall acquisition or progressive holding of the terms. This is quite similar to the time when Amazon was trying to buy Dangdang when it entered China. The guoqing were unwilling to hand over control, and Amazon instead acquired a network of excellence that was then lei and aged. and Wal-Mart in Beijing east there after eating the cold shoulder, the eyes turned to shop No. 1th.

In February 2012, Wal-Mart announced an increase in its investment in shop 1th, with a 51% increase in holdings, which is actually a piece of China's peace. People in the industry said that before Wal-Mart entered store 1th, China Ping An 1th stores 80% of the shares, and after the increase in Wal-Mart, China's Ping an shares to 39%. On this basis, left to Gege and Liu, a small stake in the mountains. This confirms the plight of Gege's introduction of China's Ping an investment in 2010. There were comments that-"it was a compelling decision because store No. 1th was out of money." "and Gege to this noncommittal.

Ping An group chairman Ma once said: "The important significance of investing in a shop is to develop health insurance." "Ping An group of 1th stores to support a plus, ambitious Ma also once rely on the 1th shop to build a safe medicine network and Ping-an medical network, in an attempt to build their own health industry chain." But because the market is not mature, Ma's plans to push slowly. After Wal-Mart intervened, China's peaceful homeopathy played a master of capital operations-giving off some of the stakes and keeping the rest of the day looking forward to the IPO of Store No. 1th.

It seems to be a good business for many, but a lot of people question whether the tiny stakes will continue to assert their right to speak at number 1th. In response, Gege said: "The real leadership lies in your vision, vision, and the right to make decisions, not the stakes in your hands." "Gege also to Mr Ma's own ratio, claiming that the proportion of Ma Yun is less than 5%, but no one will doubt his control."

Wal-Mart is confident of holding the future of store 1th. Wal-Mart executive vice president and CFO Charles Holly said: "In E-commerce, we have three clear priorities." The first strategy is to penetrate and expand in the core market. ”

In addition to relying on the 1th store, China's regional electric dealer headquarters and Sam member stores online shopping in the Chinese market expansion, Wal-Mart also hopes to put its own two other strategies in China to implement gradually: the construction of new technology platform, as well as the improvement of service system. (This digest from Jiang Hongjun, "Caijing" reporter He Shulong, Xinhua reporter Feng Xiumin co-authored "Chinese Internet Business Hero Biography" book)

Charles Holly said Wal-Mart would continue to invest in E-commerce technology and mobile commerce. He said: "Technology is not our advantage, but I believe we have found the direction." ”

The "Perfect service system" strategy in the more fashionable words is "O2O". Although the retail giant has been "electrocuted" for less than three years, it hopes to leverage its massive physical retail network to pry digital items. Today, Wal-Mart is experimenting with mobile payments and socializing. Store No. 1th will certainly enjoy the fruits of these strategies in the future.

Taj and Orland, a management strategist, have put forward the famous "strategic Gap Theory". They believe that enterprises in the analysis of competitive environment and evaluation of their competitiveness, often found that in a highly competitive environment, relying entirely on their own resources and capabilities to achieve strategic performance and its strategic objectives there is a certain gap between the strategic gap. This gap to a certain extent restricts the enterprise fully relies on its own resources and capacity of self-development Road, therefore, strategic alliances to "fill" the strategic gap is an important means, through the complementary advantages of all parties to the alliance, can achieve their own strategic goals. The greater the strategic gap, the greater the incentive to participate in strategic alliances.

Gege said: "30 years ago when I was in Cornell University, the most desire is to go to a once very great company, a high company to do internships, the company called Kodak." "And 30 years later, do not dare to leather their own lives, so the others have been the life of Kodak has been completely forgotten." Dell and IBM, in similar circumstances, have been on the road to transition in times of trouble. In this sense, Wal-Mart is doing something visionary and bold, and if the future can be integrated resources, with the 1th shop interaction, store 1th will be expected to become another Chinese power business giant.

However, when the Ministry of Commerce approved the purchase of Wal-Mart, there is an additional condition, that its holding of the No. 1th Shop can only engage in direct sales, but not open platform. Therefore, "No. 1th Mall" has been operating independently since its establishment. "This is not a good deal for Wal-Mart, because its holding is 1th stores, not 1th Mall, for Wal-Mart, 1th is not within their control, from the surface data, the 1th Mall of all the revenue seems to have nothing to do with Wal-Mart." "said one analyst.

It's like putting a spell on the cooperation between store 1th and Wal-Mart. But Gege does not have to worry that Wal-Mart will easily give up the huge assets of store 1th.

The question he needs to think about is: will one day be forced to hand over control of store 1th? Or, now, his position at shop 1th is similar to that of a professional manager.

You don't call the supermarket without fresh

Someone asked Gege: "How does shop 1th rank customers, shareholders and employees?"

Gege said: "Customers must be the first, because there is no customer you can not do the business, which means that both employees and shareholders are worthless." The second is the staff, because there is no talent can not do things. If there are customers and talent, the enterprise is stronger, each shareholder will benefit. ”

Gege so much attention to customer experience, is definitely not to say. He focused his strategy on line Line 1 on two things: Customer experience and supply chain management. "We feel that the customer experience is too easy to be shouted slogans, we do not want to shout slogans, just want to do." "We have just hired a third party to do a user experience survey for shop 1th and have linked each employee's pay bonus to the Customer Experience Index."

It has been a long and tortuous period of three months to promote this associated policy. Because each downward promotion will be between departments to evade. For example, the IT department thinks that the customer experience has nothing to do with itself, it's a matter of distribution and customer service. But Gege insists that customer experience is a comprehensive consideration, and everyone has to assume responsibility, even if the HR and other support departments have a responsibility to help improve the customer experience.

"You can choose for yourself, but you have to accept this idea if you want to stay at store number 1th." "A meeting ended with endless discussion and prevarication," he said. As a result, customer satisfaction rose from 84.4% at the beginning of the year to the end of 92.2%. "Very effective!" Gege said.

At store 1th, there is a weekly review of the week's business, called VOC (voice of customer), for the first half of the week-listening to the customer. Staff will make a clean report of all customer experience metrics and customer experience surveys. Even, the customer's complaint recordings will be played directly. In addition, all executives at store 1th are required to regularly go to warehouses, distribution and customer service, and to ask questions and improve solutions. "Customer experience problem, you need to solve this bit by bit, 365 days every day to improve." "Gege said.

At the beginning of store 1th, before recruiting the first employee, Gege and Liu had done a very important thing--to build a corporate culture. They spent two weeks writing a two-page corporate culture, then felt too long, so reduced to half a sheet of paper, and finally condensed into eight words: integrity, customer, implementation, innovation.

Gege want to let store 1th in the online supermarket this field to maintain the lead, the next major will be the fresh electricity business. He said: "No fresh is not called the supermarket." "The Pursuit of Shop No. 1th is to provide customers with one-stop shopping convenience services." Shop No. 1th is not lack of daily necessities, but fresh has always been a soft rib. In fact, fresh electricity dealers are regarded as the most challenging and potential vertical category. Many entrepreneurs want to take a piece in this field, and many people like to make fresh and O2O business Association.

Gege is very optimistic, but there are many difficulties to overcome:

First of all, the competitors of the fresh electricity dealers are not only the other fresh electricity business platforms, but also the community and localized fresh shops, which means that the fresh electric dealers will have to move the huge market and the supermarket cheese.

Secondly, the biggest problem faced by fresh electricity suppliers is food safety. Need to have quality goods, enough ecological farm resources to ensure the quality of goods. Fresh electricity business of cold chain cost is a common product cost several times, each fresh products require a higher professional ability, only the user size is large enough to be diluted this cost.

Finally, the fresh electricity dealer requests the high turnover rate. In the event of an inventory backlog, losses will be difficult to predict.