Trading Treasure next target: 10 billion

Service in the three or four-line cities, rural markets and migrant workers, trading treasure a few years of careful operation, 2012 to achieve monthly sales 100 million, the annual turnover of 2 billion, the total number of employees 2000 people. Their next target is 10 billion, hoping to create a bigger miracle.

Only products will become NA City demon stocks, poly-US excellent product impact IPO, early capital market, whether it is real estate, fresh electricity, or jewelry are in the Tens, China's e-commerce market is ushering in a new spring. However, Chinese internet users have been hailed as icebergs, floating on the surface of white-collar and first-line city market, in the center of the stage, by a large number of media, the public, the capital of concern, but the deep underwater three or four lines of urban/rural market and migrant workers, regardless of volume or consumption, are more large and real, They prop up the real internet in China.

Let's turn the camera to another world. In this world, the sale of treasure, is a barbaric growth of the electrical agents. They are the blind spot of the industry and the public, but the real mainstream of the world.

December 2010, the sale of treasure Annual Sales breakthrough 100 million, but in many internet people's view, this in the form of a simple WAP page, still a joke.
2012 Trading treasure to achieve monthly sales 100 million, PV800 million, the annual turnover of 2 billion, the total number of Employees 2000 people, for the seventh consecutive year to maintain 300% business growth.
Since its inception, the sale of treasure has been the internet giant Tencent, Sequoia and Far East holding group of multiple rounds of investment, the total investment amount of up to hundreds of millions of yuan
This once-shabby child has grown into a real underwater glacier, and its growth is far from reaching its borders, relative to the vast, barren market.

Actually, it's a huge market.

Beijing Red Barracks proud of the center of the city, a whole layer of more than 1000 square meters of space packed with dense staff, east and west of the 3C department and clothing department. In the northeast direction opposite the road, there is another independent mobile phone department. Here is the sale of treasure Beijing headquarters.

Zhang, founder of Tsinghua Science and Engineering, did not track his peers ' entrepreneurial path. 2005 is the SP business prime time, many entrepreneurs in the SMS ring in the rush to dig the first bucket of gold, but Zhang did not participate in these "make quick money" opportunities, in his view, a large deviation from the normal price of the SP business will eventually go to self-destruction. That June, he gave up the opportunity to read Shuoboliandu, founded the WAP gaming community le cool.

The entrepreneurial experience of the gaming community opens up Zhang's perception of specific groups. "At that time, about a hundred thousand of people came to visit, because I have to do product design, but also to go to a guest service." A user to tell you some of his perception, that time every day with the user in a piece, the simplest is a chat. It's okay to talk to dozens of of people at the same time. "He soon found that more than 90% of the users of the cool community are the" outer "groups of China's urban-rural fringe, whose values and habits are different from those of the city, and virtual goods account for only 10% of the demand. Through brief in the Cool forum sale adult supplies to test the water, 2006 end, Zhang for this batch does not have the PC, through the mobile phone Internet's three low group to set up the sale treasure, formally enters the online electricity merchant.

Zhang to buy and sell the treasure is defined as "a mobile device to the Chinese grassroots people to provide retail platform services online retailer." "Then I found out that the market was huge." In college, I do E-commerce. I learned to be a mobile phone ten years ago and didn't think that I would do it in ten years ' time. Did not expect to walk a lap, and finally walked back. “

Serving migrant workers: hitting the next generation of "the crowd"

Buy and sell core users in three-tier cities, more than 80, the third, from its mobile phone business positioning, and even covered to 00. This group has three characteristics: The population base is big, the consumption desire is exuberant, the consumption scene is special. According to statistics, the new generation of migrant workers for 100 million, urban industrial workers and the tertiary industry add up to 300 million people. Because of the back of the countryside, this part of the population without survival, career pressure, fresh things and the desire to upgrade consumption is no less than urban consumers, disposable income is relatively high, they can even use one months of wages to spend.

Zhang a two-point summary of the group's survival status:

First, the three low population is more unified, and the urban population difference is very big. Their social cognition, state of life, ideology, and cultural tastes, including the style and values of their actions, are very different in general. But they are in the food and clothing, in the pursuit of good things and sales structure, they converge.

Second, it is a process of semi-agriculture and semi-urbanization, and he can see the life that is also yearning for urbanization. Eyes, he could set out to pursue the goal. But his identity, his former habits, and his many policies and national development restrictions, in which half of the mixed state, mapping to his goods will be very special.

Zhang revealed that this batch of industrial workers and the tertiary industry waiter-oriented group income at 2500-3000 of the level, but the customer unit price than the first-tier city of the electric platform is still high, to 300 yuan; free chat time between 9 o'clock-24, which means that most of the activity time is also in this time period. Because there is no life most people spend money on economic consumption, consumer places in the industrial park of the Ministry of Urban and Rural integration.

Buy and sell Treasure's research work very carefully. Each quarter, will be wired to investigate, each time two to three sets of questionnaires, each set of 20-35 questions, a single survey sample between 5000-10000. Zhang summed up the research methods: different product page layout, user satisfaction, traffic changes, repeat purchase rate is the decision basis for the sale of PO products iteration. The company will even send "undercover" two times a year to investigate the survival status of migrant workers for one months.

Speaking of reasons, Zhang says this is determined by group complexity. 2005 Group majority use Nokia, now is the cottage machine, each handset's network throughput processing ability is different, to the picture format support dissimilarity, each factory area's network environment different decides the handset picture cannot be too big, the important content should put in the first screen, reduces the jump and so on the demand. In addition, the rapid replacement of Shanzhai machine, but also to buy and sell the service of the treasure constantly put forward new requirements. "Most of the speed is not particularly good, so engineers to screen size, the picture size and position control in a reasonable place, although now the 3G began to popularize, but also to consider the cost of saving their internet." ”

wap+ Call center: buy and sell a treasure-type mobile electric dealer

"I am an idealist, and I think there is no better service than human service." This is the charm of the offline industry, offline Retail is online retail, now the impact is very strong, not because it is not good, in essence, because its cost control model in some aspects of innate is not able to avoid, but in fact it should not. Suppose that commercial property is not allowed to charge for the next ten years, and the state bears it. Do you think the mobile industry is having a hard time? It's a word to avoid all the offline shopping malls of these things that you can rent, and the country comes full subsidy to you. ”

Buy and sell only WAP version of the product form, that is, it has to face the grassroots users through the phone to complete the order. is the grassroots user equal to the mobile user? Zhang the question on my outline. Zhang that: Grassroots is a social stratum, divided into front-line users, second-line users, three-wire users, four users, mobile users is a technical means of judging standards. "It's just that when a technology first appears, the price may be more expensive at first, possibly representing an identity." When technology into ordinary people's homes, the cost of a large scale down, it came down. Another technology to distinguish between the failure. This state was understandable in 1995, when it was 20 years ago. In 1995, I remember particularly clearly that it was more than 20 years ago, when I was in the 90 's, when I was working. ”

In 2004 and 2005, mobile users turn into grassroots users. Zhang that the biggest particularity of China Mobile Internet is reverse, it is not originated in our traditional sense of high-end people, whether it is income, social status, or to say knowledge, but inverted. Precisely because at that time the city's internet population has begun to popularize broadband, but in the life of urban-rural integration, PC relative to mobile phone is not a high permeability of things, "although at that time the screen resolution, slow speed, but you can not deny that it is a mobile Internet product experience and service of the primary form." ”

The payment page for the sale of PO is only one page. User point to select goods directly into the shopping cart, and Taobao need various certificates, account secret authentication practices different, details page only name, address, mobile phone number. After submitting the user will receive the Callcenter confirmation, including the order confirmation, the payment method, the shipping address, this provides the safeguard for the customer psychologically.

Callcenter for the sale of treasure is difficult to replace the status. Select a large number of callcenter this type of "heavy" mode to deal with orders of the electric dealers are rare, ctrip because of its more than 30,000 people callcenter Center by the industry worried about its profit costs, the sale of PO callcenter employees also more than 1000 people. But in fact, the sale of PO and the early customers like Ctrip, a lot of information needs to be confirmed manually. "A lot of orders if not through the telephone confirmation of customer service, courier delivery only to find people, if the use of traditional Internet order Processing method, delivery failure rate will reach 60%." Through the artificial telephone service, buy and sell treasure can eliminate half of the waste single, specific effectiveness, if not enough risk control factors, delivery success rate will drop, and reverse logistics cost is very high, dynamic inventory costs are also affected, Zhang pointed out that if the price fluctuation more sensitive goods, Is fatal to retailers, as capital efficiency is falling and price costs are likely to increase.

However, Callcenter's role is not only in the order filtering mechanism, in addition to telephone services, callcenter business is also covered by mobile Internet communications services, the proportion of online communication has accounted for the sale of treasure 20%. Through the micro-letter public account, the client's IM and user communication. With the penetration of mobile internet services, the social tools that buy and sell services are also changing, Zhang said. Mobile phone QQ users reach 85%, micro-letter is 65%, new branding, digital marketing also around these ways. Compared to other online electric dealers, Zhang that the sale of treasure in this respect has advantages: "The sale of treasure is accumulated for a long time." It's like carrying a pig to find the temple door, perhaps we recognize the temple is very clear, but does not mean that others can not find the temple door, he may find the cost of temple doors higher, or find a little slower, but this is the vertical level, this is not inverted level, just a cost problem. So the key is actually said that you can for this user characteristics, to develop the goods he needs, this development is quoted, not you do, you can group goods. We call the group goods, the group goods is your product the organization match does not match. And then you can use the services they accept, let them buy goods, and then serve them well, this is a complete chain. ”

Zhang predicts that the final service will still move towards the voice age. Used to be the data exchange of IP base, now is the micro-letter voice. The same is the voice, trading treasure more pay attention to the service of people, employees require as far as possible to reply with words, because the latter experience more freedom. "It depends on the social scene, the voice and the text is chosen by the user, and he has the option." But if you say a word, it's like he has no choice. For example, we are in a meeting now, we are discussing, we have a good chat. At this time, my wife sent me a voice on the micro-letter, I am embarrassed to listen. But if she writes something to me in words, I can see it, so leave the choice to the user and try to make the user comfortable. ”

He points out the problem with retailing now that offline retailing does not die from service or shopping experience, but because of the high cost of one link, the advantages of offline retail services are not lost. The callcenter of buying and selling treasure is the most humanized attempt of online service. Zhang pointed out: "Especially in China's grassroots people, is the urbanization of the population, they themselves see the urbanization of life, but not fully entered." This desire makes it necessary for them to be better cared for and better served. What is the best service? I think people's service is the best, better than the service of the machine. The shopping experience of the big city is increased by 10%, so the promotion is 30% or even 50% for the peasant workers and the people below the three or four-line city. So this is our service center, is callcenter it to realize the value. ”

"Its essence is to increase the sense of service in the process of purchase, which will bring about greater economic effect." Online electric business has a similar approach is Taobao's waiter culture, but Taobao's small two are each store small two, the practice of buying and selling treasure, is the small two intensive up to do. "The specific form of service is not important, it is dynamic, today is the telephone micro-letter voice, tomorrow can be replaced by other forms." ”

In addition to satisfying the human service, Callcenter also assumes a risk-judgment mechanism, which, in current fashion, is big data. But in fact, this is only the application of basic data, such as the needs of new users can be supported by the current data, to determine what is doubtful, different categories of goods, different price segments of the goods at different risk values, the simplest one principle, the higher the customer unit price, the higher the rate of regret.

The Battle of reach: Full competition of warehousing, advertising and service

Zhang the competition between retailers and retailers as "competition for user services, not competition on the touch of users". He called the retailer a touch, the touch of the flow of information and the touch of the physical flow, and the service reach. In the highly developed media resources today, the touch of information in his view is not difficult to achieve, but in the crowd in the service process, the need for artificial judgment to do profit increase, and finally risk control. These are not done by the machine, the machine can not complete, it depends on people to complete. For the old member, the machine can be limited to improve its judgment sensitivity, but still can't compare with people. In people's service, Zhang that face-to-face communication than on the PC is RTX, QQ, mail, understanding the needs, how to better complete the service reach will be the most important point.

Buy and sell treasure in advertising to spare no effort. Responsible for mobile internet advertising is Zhang Tsinghua alumni Li North, according to the U.S. advertising founder Shuyi previously disclosed in the media, the sale of treasure is its largest customers, the annual delivery of about tens of millions of yuan, the cumulative number of years down the advertising fee has played 4~5 billion. However, the cost of investment is large, but does not mean that the sale of treasure is the choice of a rough form of the promotion route, instead of Zhang for their own set of precision put a lot of energy into the model. According to Zhang revealed that the 2007 wireless advertising market chaos, data fraud, no pricing standards, no subdivision services, blind purchase of traffic will only be white pay water charges, now buy and sell treasure already can through their own advertising effectiveness analysis system to analyze the real conversion rate of partners, through the decomposition of the behavior data, Buying and selling the treasure is even more familiar to the specific effect than the media.

Buy and sell the distribution of PO are used to pay the way, the total price contains freight, so the margin relative to the city of electricity quotient low about 10%, which for the company's warehousing and distribution put forward higher requirements. Trading treasure from the beginning to do warehousing, currently in the country about 100,000 square meters of warehouses, distributed in East China, South China, north China, the Southwest warehouse is also under construction. In Zhang view, the cornerstone of the retail company includes warehousing, logistics, distribution of the three major links, the traditional warehousing and logistics, category management, after-sales service, for remote areas to build more uniform storage structure, the choice of more distribution competitiveness of distribution companies to solve the circulation problem is the focus of this work.

Distribution, to Jingdong as an example, distribution to do their own, the middle of the backbone of logistics is still others do. Trading treasure in the past to choose the country's most widely covered postal service as the main partner, now has a distribution team more with the three or four-line city logistics cooperation. Zhang has its own judgment on distribution: a large number of logistics companies are now sinking to do very much, very quickly. Jingdong out of delivery on the 100 pieces, they go out 100 pieces, but also can bring back 30 pieces, the range of income. So they are very efficient in operating, just like you shipped a car from Beijing to Guangzhou, after you shipped over, you come back when you are empty? The real logistics people will tell you, not, I want to come back from there with a car goods.

So the use of two-way networks, must be open to the community of this specialized distribution company tilt. Zhang to the future development of China's distribution industry is full of confidence, "I think we will not be in the distribution to expand the scope of the independent construction of this kind of thing, because this era does not need, you need to work with professional people to cooperate." But do not rule out the future in this place, we will have some funds, capital above the cooperation, it is possible. But this is the case, I think professional people do professional things. ”

From mobile power to independent brand

Self-brand as a retailer to improve profits, reduce the cost of a means has been widely used, traditional retailers such as Carrefour, Wal-Mart, Tesco, independent brands accounted for about 20%-30%, while the purchase and sale of the brand in the 3C and clothing sales accounted for 50% of the sales, although the proportion of the purchase and sale of But Zhang admitted that the independent brand is not its original intention, is forced out. Retail industry is not to do independent brands, unlike traders, trading treasure development of their own brands, from four purposes:

Increase gross Profit margin
Maintain the balance of products
Developing a blank market
Maintain supply chain stability
Zhang in the sale of treasure and brand manufacturers in the process of cooperation found that the brand manufacturers only three or four line of the city as a dumping site, once the inventory pressure has been resolved, the subsequent supply has become a problem. At the same time, many of the second-line brand advertising has not been able to cover the urban and rural areas of the group, in the eyes of consumers, their brand awareness and trading treasure of the independent brand is not obvious difference, that is, generally speaking, the brand recognition rate is low. Medium-end brands of goods in the sale of treasure on the penetration, but the manufacturers do not because of the sale of the user group to treat the difference between them. In the trading treasure commodity system, the difference between the different categories of gross margin is very large, including clothing and cosmetics, the highest margin, to more than 50%. The gross margin of 3C goods is between 15% and 25%, because the customer unit price is higher, the sales account for about half of the total sales. Consider the independent brand strategy, is to refer to these guidelines, not Pat Head said, do independent brand must be how.

Pingwest asked whether the future of the ownership of the brand will become more and more high, Zhang to deny attitude. He believes that the ownership of the brand's share is a dynamic process: "I am a retailer, to what mountain sing what song, I am not a brand, brand business is to pursue the brand upgrade." To the retailer, to tell the truth I sell the goods are sold, there is a century of retail, very few hundred years of the brand. Is that retailers live longer than brands. Why? Because it's very focused on buying and selling. ”

At present, the sale of the most prominent brands in the brand to calculate the January 2014 launch of the big Q mobile Phone, the 5-inch four core, 720p resolution, the price of 899 Yuan flagship smartphone mobile phone market 10 days sold 30,000 units, up until recently, the big Q series has sold 500,000 units. Zhang to do the starting point of the mobile phone, or from the discovery of market segments have not been met, "buy and sell the treasure has also introduced a customized or OEM mobile phone, but after the hand or found that the product of the consumer insight is not enough, or by the supplier stability of the impact." "If Callcenter and warehousing are ready to complete the work of flat touch consumers, then hardware production such as mobile phones is testing supply chain management standards," he said.

"These vendors are not doing well enough or they are making this machine lame, although the price may impress the user, but your machine can actually do better, or do a more balanced and so on, but not." In that price segment of the machine, I think it is not good, this is the problem. Secondly, supply is unstable from the point of view of supply. Because our sales scale is very big, about two years ago, is 2012 years, we and some domestic brand mobile phone companies, we can continuously every day to pull the sales department to the front. But for us, this is not the most favorite situation, as the retailer's most valued is the stability and sustainability of sales. ”

Accepting multiple funding: more strategic resources

Zhang said the initiative to accept Tencent Holdings is only a very conventional capital operation, the most important or use Tencent flat social media resources, August 2013, 100,000 red meters in the QQ space first and in 1.5 was snapped case to leave a deep impression: Tencent has QQ, QQ space, mobile browser , WAP version of Tencent Network, QQ Music and other media, covering 98% of Chinese netizens, including the sale of PO users and mobile phone QQ users completely coincide, in the user reach rate and active degree can be sold to the three or four-line city and the sale of the case to launch exclusive marketing. And in advertising, Zhang told Pingwest, because of the different lines of business, the sale of treasure did not enjoy special treatment, the current 95% traffic is to buy the way of commercial acquisition, Tencent is also the largest advertisers wireless end.

"We and Tencent is a very commercial cooperation, if there is any difference, and other companies and Tencent cooperation between the difference is that the degree of trust may be very high." First, know how to solve the problem. The second is to have the benefit mechanism to do the safeguard, therefore may to the Tencent media use efficiency to be even higher. But advertising or market cooperation are standard processes, all the same. ”

On the other hand, Tencent can also bring the channel experience to the trading treasure. "The biggest experience I've had over the years is that the words from the real-world industry need to be precipitated," he said. This kind of operation of our mobile phone, may start to sell mobile phone since 2008, then by 2012, sell for about 4, 5 years after, oneself start out of some kind of idea, want to do something in this aspect. If the industry has a very high level and good accumulation of enterprises, it can give you a lot of information, is the greatest help to you. ”

For MediaTek, a strategic partner, it is conceivable that more of the stability of the hardware supply chain, millet in 2013 meters 3 due to Qualcomm's capacity was delayed 3 months delivery time. But Zhang says at present, the big Q mobile phone is only just beginning, far from the level of the suppliers, and MediaTek's cooperation more fancy its hardware field resources: "will certainly involve the chip company's things, manufacturers do not support, business will not do, your volume is larger, Your demand for the stability of the supply chain and the constraints of the upstream and downstream sectors of these industries are more prominent. "According to Pingwest understand, even its early-round investor Sequoia Capital, in the early development of the purchase and sale of clothing independent brand cooperation manufacturers also played a role." Sequoia to Zhang recommended its investment in a number of clothing, cosmetics footwear manufacturers, is one of them, to meet the time to buy and sell treasure to find the demand for OEM.

From 2 billion to 10 billion, not online, is retail

Although the sale of treasure is still a slight loss of the state, but compared to 3 years to profit information service platform Taobao, the market to the Jingdong such online retailers more comfortable time. Zhang to buy and sell PO set the next target is 10 billion, to achieve this goal is the first to do? Zhang think to increase sales, a total of only three ways, one is to attract more customers, the second is to increase the customer unit price, the third is to increase the rate of repeat purchase. At present, the sale of treasure is mainly not the promotion of the problem, but to improve the user's conversion rate and repeat purchase rate, at the same time should adapt to the changes in customer groups, in the face of early age of users aging, to supplement new products. The electric business owner of the underwater glacier has much to do with the future growth of the frontier.

In the early days of enterprise creation, Zhang had a tangle of product forms. Taobao type of point-to-point information services, or Amazon-style online retail business. In the end he chose the latter. He once said that "online retailers, no matter how many attributes, the first is the retailer, the nature or the retail, user demand, cost control, any online retailer will also comply with industry norms." "With the proliferation of" internet thinking "and everyone talking about new technology and changing the world today, Zhang is acutely aware of the nature of business, the real need to serve real people in the underwater world of glaciers, or the biggest reason I have to wait and see.