Traditional wine dealers, how to transform to make annual sales of 10 billion of vertical liquor and water utilities

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I black Horse Note: Vertical electric business has been criticized difficult to succeed, but the Dark Horse Camp two students Honghong founder of the Jiuxian Network, in 6 years, the success of the sprint to become China's largest wine and water utilities, the annual sales are close to 10 billion, and Honghong also declared that "do electric dealers must be profitable." Now Jiuxian network is trying to drink O2O.

(pictured as "entrepreneur" founder and Black Horse Shang)

September 2009, Jiuxian Network was founded in Taiyuan, Shanxi Province, 6 years of continuous evolution. Jiuxian Network recently received a sum of 1 billion yuan of financing, this is the public inquiry to the liquor dealers get the biggest financing.

This finance, Jiuxian net to reference drop taxi promotion mode, burn 40 million hit to O2O platform "wine fast", subsidize consumers and wine line. Up to now, the Jiuxian Net has obtained 6 equity financing, the cumulative amount amounted to 9.300 million. The Jiuxian network is by far the most money-raising liquor and water utilities.

Recently Jiuxian network President Honghong in the Jiuxian network and the Dark Horse camp organized activities, sharing their own four entrepreneurial experience, as well as the Jiuxian network of six business, with six means to the layout of the traditional wine industry.

The following is a transcript of Honghong speech:

Four startups, all in the innovation channel

I am Hebei handan people, but then started the business has been in Shanxi. 1996 as a student from a private school, on a year, feel boring, of course, and classmates come out to start a business, in March 1998 for the first time.

When everyone still uses the BB machine, I have taken the big cell phone, and then take the plane to dictatorship. But unfortunately, this business has only been done for six months. But now I think it is a very interesting business, and I have four of startups are related to channel innovation.

The first business is to sell second-hand books, at that time, the fashion magazine of coated paper came out after the month, has sold not moved, it is necessary to return, the magazine has no way to destroy, because the people who collect the waste papers is not coated. OK, I think of this business, from the magazine to five cents a price recycling magazine, and then seven quick money sold to beauty salons shop and foot care shop, when the original price of the magazine is more than 20 pieces. The idea is good, until later we students to the industry bigger and stronger, become all the old books in China, used magazines are thrown to us, but, I did not earn money, six months to lose the business. After the loss, the mentality fell to the bottom of the time, hoe today has nothing to feel. Then we started looking for work, but it was very difficult to find a job in Zhengzhou.

From the boss to find a job, we feel very shameful, so for a place where no one knows to get ahead and choose a very competitive Taiyuan. In Taiyuan, the yellow tabloid, and the boss pit half the wages. At that time to know the owner of dumplings, selling dumplings is also a channel innovation. Three whole and miss to now very big, ten years ago has been very big, and our dumplings are no brand, no factory, there is no guarantee of a three products, and we do not dare to cooperate with the supermarket, with the supermarket cooperation first to charge into the shop fee, another need to press the account period. We will find a way to the dumplings to the hotel, seized the hotel itself is making dumplings long time is often the guests urged this pain point, called frozen dumplings hotel. And different from the three whole missing dumplings are machine bags, our dumplings because it is hand-wrapped, basically the same as the hotel bag. The first time we put dumplings on credit to the hotel, the second time to collect cash, we use this method fast arbitrage, spent seven months to the dumpling factory from seven or eight workers to nearly 200 workers, did not spend a penny of advertising, that year in Taiyuan sales of far more than three full and missing. But after we were thrown out, now I have to thank the boss, if he hadn't kicked me out, I might be the CEO of their company and sell dumplings in Shanxi.

After being driven out of Shanxi Pepsi Liquor Group, was founded by three people. I took more than 50,000, another man took 10,000, and one said no money, took a second-hand computer price 6,000 into the stock. 10 years later, this guy has got tens of millions of of the money, after we founded the Jiuxian net, this friend he personally has the development to go, at that time only then left us two people, according to Shanxi mode, that friend continues to account for 10% of shares, I continue to occupy 90% of the shares, at that time Company 2 million, we set up Jiuxian net.

From an idea to a project, the speed of 100 days

2005, we became Shanxi's largest wine agents, traditional channel agents. In 08, when the sugar drinks in Chengdu, we drank a lot of people bragging, we said to sell liquor to the world's first. At that time, the world's first is a foreign wine business, turnover is 17 billion U.S. dollars. At that time we were still a few billion turnover, I said that the goal is too big, set a China's first goal, so we set a target of 10 billion.

Set 10 billion goals when we are in the study of what kind of means can do 10 billion, one is to run a winery, like Maotai as cattle, can do 10 billion, but also not a day can be done, this road is over.

Second, in the wine industry can copy an electrical industry hub, or gome model, do a chain of wine, can do 10 billion, and later in the study of wine chain in the process of discovery, in China to open a chain bar, no one can earn money, because the single shop turnover is too low, rent, operating costs are too high, we all earn no money, So we were afraid to do it. Then because in the Tsinghua class to listen to Professor Zhu Yuan information Management, I think this is a good idea, online liquor does not need rent, a comment covering the whole of China, this is a 360 mode of how Tiancheng, is the 360 of the sixth sense is vital, I think this business has a chance, boldly said, let's try it.

After the lesson about 100 days, founded the Shanxi Jiuxian network. At that time some media and industry forum thought Jiuxian Network to do industry boss is a joke.

Not only do the wine industry drop by taxi, six kinds of business to transform the traditional wine industry

Jiuxian network to everyone's feeling is a network of retail enterprises, that is, liquor, in fact, liquor is only one of our core business, is the first business. In this business, our business accounts for about 50% of the Chinese alcoholic internet retail market. That is, whether you buy in Jingdong, Suning bought, or bought in a shop, the cat bought, most of them are from the Jiuxian net, the highest time Jiuxian net of liquor accounted for nearly 40% of the cat's share. We've been talking about the essence of the consumer is retail, the essence of retail is cost control, not IT companies, if you want to use the culture of bone company to manage your E-commerce company will fail.

Retail is the world's oldest business, in China, which is the lowest labor cost of the industry. The choice of the Business-to-consumer, means that with high wages, high treatment no fate. Jiuxian Network currently in Beijing, Shanghai, Guangzhou, Tianjin, Wuhan, Chengdu and Taiyuan has a total of seven operating bases, warehouses total 200,000 square meters, almost should be the world's largest wine bank. Can put down 10 billion of the wine. In this business, we take about a billion of of the business. The country has more than 40 cities have been able to reach the next day, 200 cities can achieve 3rd, remote areas can be reached by 7th. The business of liquor is not the same as that of other industries, to now basically hard to make money, because the packaging of wine and other products are not the same packaging, it is a fragile object, compared to the General Electric dealer, vertical electric business in the packaging cost more advantages, so this is the professional existence of wine cellar. Our packaging is a rigorous and professional experiment to ensure safety. Prices are probably Wal-Mart prices, liquor prices are probably 25% lower than the average price of Wal-Mart, 25% lower than Wal-Mart offline supermarkets, especially the price of imported red wine is about 50% of the price of the store.

The second business is value-added services--brand operations, we are the largest network wine consulting company, operating team about 400 people, to help our customers do value-added services, Internet equipment, and even help them to do the network on the shop, on behalf of the operation, which is also a very important part of the company's core business.

The third business is on the mobile internet, and our "wine is coming" is a wine-buying artifact, for example, when you eat in a restaurant, if you buy a bottle of Wuliangye in a restaurant, it will take about 1100 yuan, but if the wine through our fast, and then search out the nearest wine line where, to buy Wuliangye, Probably need 650 yuan, drink two bottles of Wuliangye words will save more than 1000 yuan. For the liquor, it is a liquor-selling artifact, in the past you opened a store, passive type of business, but today to sell the wine to this way can be used in the vicinity of the food and beverage outlets to drain these people to the store.

In fact, the wine is fast to have an expert in the back. Once with Professor Zhu Yuan drink, I asked Zhu, I said you to O2O how to see? We want to do O2O in the future, to open thousands of stores nationwide, it is an impossible thing, to open a shop in a line, open more than 2000 stores, that I am exhausted, that must save how much money. He said why do you have to open your own shop? Using the internet thinking is not about what you have, but about how you can integrate what, he spoke, I immediately enlightened, he said you look at a taxi, it does not have a taxi, but it is the world's largest taxi company, then you can make your wine fast to the drip taxi mode to do. A pat on the head, I am very excited. The next day began a discussion with executives, and on the third day, our President's office took 20 minutes to get through the project, until June 9, 11 cities were on line, from drinking an idea to becoming a reality and a 100-day pace.

We are in the wine to start, the speed is far beyond our imagination, did not make two years to understand things, spent 100 days has become the industry first. Up to now, we have more than 50,000 terminals on the platform, opened 20 provincial capital city, this month can open all the provincial capital city, can achieve nine minutes delivery, if nine minutes to send, compensate you 90 dollars, if this wine in time to send the past, reward 350 dollars, and drop a taxi the same pattern. This is the threshold to pull up, and recently took a lot of money, the goal is to constantly the barriers to the competition, the size of their own rapid expansion, so that people do not want to think. By the end of this year, it is expected that there will be 300,000 terminals, 300,000 wine Guild to move to this platform, our goal is to achieve more than 10 million users, 300,000 terminals.

Today we released our version of the wine is fast to 2.0 version, 3.0 version should be introduced at the end of this month, it is not only to buy wine artifacts, but also a drinking artifact. For example, you can ask for wine in addition to wine before drinking, and when you get a bottle of wine you don't know about wine, a sweep of it will tell you about the wine and the game of drinking, and when you drink to about 90 minutes, start the drink, and 90 minutes to remind your brother not to drink high. If you drink too much, you should arrange for a ride. All in all, I hope the wine is coming soon, not just a wine-buying platform, but a drinking entertainment and life platform, the wine industry internet brand.

Block four business is about building Internet brands, to create the wine industry millet. Internet age, a good wine products, the first to have a good concept, to have a good story, in addition to the difference, the key is to have a very high cost performance. We follow the operation of Millet to do, super cost-effective, absolutely lean. Recently we have a new product called Xiao Tang, two bottles of a catty half, a very beautiful box, only sell 99 dollars, completely subversive, bought you will feel the jackpot, this is the Internet product development.

The fifth business is our first open business, the business-to-business business we have been doing for a long time, and our business-to-business business is the business of 1 million of Chinese wine lines from the Jiuxian network. The flow of alcohol requires a very large industrial chain, one, two body, three body, to this wine line inside already very expensive, the ex-factory price of 100 dollars of products, to this terminal has become 340 to 500, but out of 100 dollars, only sell 115, directly dry to all the county all the Ibedovan terminal. This is not officially online, it will be online before the end of the month.

This business is used to differentiate with us, so we have a new brand called weight wine tradition, specifically for wholesalers in the country, retail terminals. After this business, the retail store wine line to get 200 dollars of wine, I can almost give 100, this is a subversive business.

Our sixth business is a relatively small business, is to catch the popular, called C2B, private customization, in fact, I have always felt that the essence of C2B is the customer, but that the content of your service has changed. Private customization is basically we help customers do a box, for example, your child over the full moon, you want to order 16 bottles of wine, a box of wine, I can put the elements you require, all put on the bottle or box above. Private customization is not a price war, a service, a feeling for the customer.

Hold the idea, stick to the principle

Together, we from the first thinking, the second brand services, the third O2O, the fourth type of liquor industry in the millet, the fifth of the Business-to-business, to the sixth kind of C2B, the final result is one thing, using the internet means to transform the Chinese wine industry, Use the internet means to the Chinese wine industry every detail has been reformed.

Will the means of Internet in the future change the production environment of Chinese liquor I don't know, maybe there will be f2b in the future, but there must be a chance. The idea of Jiuxian Net, a group of people only do one thing in a lifetime. Xian net customers are social elite crowd, often said, Shing ah, you so many customers waste, sell that health care products, gross margin is also high, but also to improve customer unit price. You don't have to talk about things like that, we only sell liquor, we don't do anything else. This is the principle of our company, so when we face a strong and comprehensive opponents, the most effective way is to do specialization. Because the Chinese wine industry market is probably 1 trillion, if the consumer accounted for 10% of the industry is 100 billion, even if only to do business is a very great company, not to mention that we have six ways to transform the industry, if we take up 30% of the industry, this is 300 billion, the world's fifth. Any industry is faced with the opportunity to upgrade the Internet, and it is much less expensive than we used to be in traditional ways to change.

Finishing: Shirting