Wanda Electric Business O2O Ambition: to build the world's largest O2O electric Company

August 29, Wanda Group, Baidu, Tencent held a strategic cooperation signing ceremony in Shenzhen, announced the joint investment in Hong Kong to set up Wanda E-commerce Company. Wanda Electric Business plans to invest 5 billion yuan a year, Wanda Group holds 70% stake, Baidu, Tencent each holding 15% stake, while the account, payment and other aspects of cooperation. Wanda Group chairman Wang, Baidu chairman and chief executive officer Robin Li, Tencent board chairman and chief Executive Officer Ma jointly attended the signing ceremony. Wang said that in the future, the total investment of the electricity quotient is 20 billion, and the new chief executive of the Electric Company will be Donze as CEO of Wanda Electric.

Build the world's largest O2O electric Company

Wanda Group is the world's leading real estate enterprises, China's largest cultural tourism enterprises, the world's largest cinema line operators, is expected in 2014 to Wanda Plaza, hotels, resorts, consumers will be more than 1.5 billion people, Wanda has become the largest offline consumer platform; conservatively estimated by 2020, With more than 5 billion consumers per year, Wanda will become the world's largest offline consumer platform. Baidu as the world's largest Chinese search engine, with the world's leading technical strength and the most extensive data platform, is China's largest internet demand portal, but also the largest application and service distribution platform, the daily response to search more than 6 billion times, lbs positioning service monthly PV more than 10 billion times. Tencent has the largest number of users, the most active Internet products, as of June 30, 2014, its instant messaging services QQ monthly active account reached 829 million, mobile social communications services micro-letter and WeChat combined monthly active account number of 438 million. Three in their respective fields of the absolute leading enterprises, will be powerful alliances, give full play to their respective advantages, to carry out the depth of the corresponding products integration, jointly create the world's leading O2O e-business model.

Wanda, Baidu, Tencent will be through the account and membership system, to create payment and Internet financial products, the establishment of General Integration Alliance, large data fusion, Wi-Fi sharing, product integration, flow introduction and other aspects of in-depth cooperation. Tripartite will jointly build online, offline integration of account and membership system, to explore innovative Internet financial products, to establish the largest universal integral alliance and Platform; Meanwhile, Wanda, Baidu, Tencent will also set up a large data alliance, to achieve the advantages of large data fusion, and common to build line under the integrated user experience.

Donze, chief executive of Wanda Electric, said line online fusion is the future of commercial terminals and electric business development of the inevitable trend, Wanda has the world's largest offline commercial platform, through with Baidu, Tencent two giants to cooperate, Wanda will become the world's largest O2O electric platform, the real realization of O2O landing, Explore the O2O development model for the industry. Wanda Electric Business will be opened in the country this year 107个万 Plaza opened the electricity business services, 2015 opened Wanda All square, hotel, holiday place of the electric business services, to achieve a full coverage of Wanda consumer terminals; During the trial run this year, Wanda Electric Chamber of Commerce will be more than 40 million, next year will be more than 100 million. Wanda Power Online, will be with Wanda Financial sector, launched a series of Internet innovation Financial services. will also launch a Wanda member equity and multiple account management "one card", the Unified Integration Alliance, the internet to raise investment business and other new platforms, new business, new services. Donze also revealed that Wanda Electric business has registered a cool new name, will be in the Wanda full online release.

Why does Wanda have to be an electric dealer?

Earlier, Wang issued Wanda Group report, the report's most interesting is that Wanda announced that it will continue to fully develop the electricity business, High-profile announced the first investment of 5 billion yuan, and the United China's largest number of electric companies, the target is three years to find a profit model.

Why does Wanda have to be an electric dealer? The reason is very simple, Wanda's main business is real estate, especially commercial real estate is the key to the success of Wanda, commercial real estate is more complex than residential development, especially in the early location, investment, and follow-up services, good business, for their own merchant service is particularly critical, otherwise the subsequent income is unsustainable. And Wanda is facing the problem is currently all commercial real estate, shopping malls are facing problems, more and more shopping malls, into the physical fitting room, the cost of rising, the expectations and satisfaction of the merchant is difficult to achieve, a large number of commercial and tenant contradictions are also so.

The impact of Internet electricity dealers, in particular, Wanda business by the super traffic demand is very high mode, the transformation of the transaction is affected, but Wanda Electric business's core purpose is to serve their own merchants, as for ordinary consumers, is only a source of traffic, at least from Wang many foreign speeches, Also fully embodies his confidence in the flow of his own people.

Wanda Plaza because of the huge scale, in all parts of the country have distribution, so it is easy to form a commercial network, in line with the Internet thinking, the final formation of the Wanda Electric Business also has a platform trend, but services in Wanda's own system platform, rather than our traditional significance of the electric business platform.

According to the report planning, to 2020, Wanda to form real estate, cultural tourism, finance, retail, electric business five major sectors, it is obvious that Wanda Electric business, is the exclusive commercial real estate platform of the electric business.

Wanda Electric Business Why Choose O2O mode?

From the report, we can see that Wang is going to join other domestic electric power business giants, set up Wanda Electric business, rather than their own, from this point of view, Wang also realized that the group will have more opportunities, this is a good supplement. But in fact, the electrical business is a product of the consumption of flow, the other electric platform of the diversion function of the real effect, remains to be seen. From another point of view, the cooperation of the other platforms Wanda Electric, can become these big electric platform of level two channel.

"When Wanda is strong enough, or if we invest in a bank, we can have the bank and US issue the same card," Wang said in the report. I want to make a little request to the electric company, now must ponder innovates a more convenient, quicker, more useful card. What is useful, is better than using other cards, this card in the National Wanda Plaza, hotels, resorts consumption, home purchase can be universal, consumption and discounts, points, lottery, value-added services, etc., which in itself is a big business. In a few years, Wanda has nearly 200家万 Plaza, more than 100 hotels, plus 8 to 10 open resorts, billions of passengers a year, these consumers are our customers, can send hundreds of millions of cards, which is a huge resource and advantages.

Unlike the Internet in the traditional sense of the electrical quotient, O2O and based on the O2O model of the electric dealers, in addition to goods, more emphasis on services, for the internet companies, large O2O platform to the disadvantage of landing on the line at the end of the service capacity, because in addition to providing a platform to solve the business, Based on the service of the business process is more critical, O2O to provide not only cold express, but also the internet has been advocating the social, really into the offline.

As for Wang to send hundreds of millions of cards, I think it is not difficult: all registered to get cards, through consumption activation, such as providing Wanda main stores, vouchers, discount cards, lottery, etc., as long as the use of card consumption can be activated, this way, almost will not cost too much, as ordinary consumers, and why not? Wanda in this respect, not only has the resources, but also the entity shop, the staff whole, merges to the normal operating cost can. Compared to the Internet to burn money to attract users, transformation, activation, loss and other maintenance of the current situation look, really very good. Or you think of your wallet in all kinds of consumer cards, really inside are more than 0?

And the benefits of the card, can standardize the current Wanda's own settlement system, but also the formation of capital precipitation, a card to form 10 of dollars of capital precipitation, for Wanda, 100 million is 1 billion of the capital, not to mention the formation of this card based on other consumer profit distribution?

Based on the advantages and resources of Wanda Plaza, O2O is indeed the choice of Wanda Electric business.

Wanda and Baidu Tencent cooperation suffer?

After hearing the news that Wanda, Tencent and Baidu will announce the establishment of an E-commerce company, electric Shang The biggest feeling is Wanda do O2O electric quotient finally some enlightened, no longer completely own alone reckless, but also worry, Wanda whether really understand how to do, recognize the role in the O2O system, whether it really " Emancipating the mind, seeking truth from facts, and looking forward "to embed itself in the O2O system for long-term development opportunities?"

Now Wanda to work with Tencent, Baidu cooperation, is sure to suffer, because Tencent and Baidu have online flow of traffic and online users, this is Wanda do not have to do O2O electrical business but must have something, so must cooperate, but Tencent and Baidu is actually to the Wanda commercial real estate industry and department store business mode of business access to their own platform, Wanda's passenger traffic into their own O2O platform of the user flow, is equal to Wanda merchants to Tencent and Baidu, the customer also dedicated to Tencent and Baidu.

On the surface, this is indeed a loss of business, but the O2O of life service is to be the first to obtain technical support and integration into the O2O online platform system, and then can continue to "reform and opening-up." This leads to the first concern of electric Shang, is Wanda really understand O2O how to do?

The O2O of Life service is in the final analysis three things, the customer makes an appointment or purchase what service, where the consumer consumes these services, how the consumer pays the service, therefore, the core of the O2O business is the online platform, the merchant and the payment system. From which you can see that this one, Wanda actually does not occupy what advantage, because Wanda not only lacks the online platform and the payment system's unique technology and the user group, more serious is, the merchant also is not Wanda's unique, the Internet enterprise may completely with the merchant individual cooperation, only then the docking cost is high only, For example, the United States and the general public comment on such a model, in the Life service O2O field, the cost of business docking is equal to the sale of O2O logistics costs, therefore, reduce costs to enhance the docking efficiency will be the future O2O mode of transformation and upgrading of the key.

Therefore, Wanda must take advantage of their good relations of cooperation with many businesses, and quickly become a cooperative docking service providers, this kind of "dirty live dirty" next, let the Internet enterprises taste both when the platform and reduce the cost of sweetness, quickly improve their competitiveness.

If Wanda has the first step to do dirty work dirty embedded in the entire O2O system of "ideological emancipation", then to find out what kind of commercial real estate developers in the O2O system of the role of the problem, we need to continue the second "ideological emancipation."

Become a link platform and merchants docking service provider, Wanda is an advantage, because now most of the life services category, such as cinemas, KTV, restaurants and so on are mostly concentrated in shopping malls, there are consumption scenarios and a large number of traffic, that is, shopping malls naturally formed a region of the O2O offline platform, The commercial real Estate group, which owns a lot of shopping malls, is equal to a O2O offline platform with a large docking merchant, we can solve the problem of the cost of the merchant's decentralized docking, and have the right to speak in the whole O2O system, and Wanda has to do is through the capital operation, such as self construction and acquisition, Make your own offline O2O platform bigger and better, assuming that the entire Beijing district is almost Wanda's shopping malls, businesses are in Wanda Shopping mall business, some businesses are Wanda acquisition or self-built Enterprises, then this advantage will make Wanda in the O2O competition in an invincible position.

In this way, some would question why Wanda, who had a great advantage, would have to do so. Now it's time to buy an online O2O platform and expand your site's edge. This is not a cost-effective and risky proposition. Because now the O2O system is still in the initial stage, this period, online and offline to do their best to do the most good thing is to become a business docking service provider, become a region to control the flow of the entrance of the Overlord, then, with the O2O of various scenarios and service innovation of the continuous improvement, Wanda simply waits for the opportunity to gain control of the online platform and payment system through capital operation, the whole life service O2O commercial industry chain belongs to Wanda all, even if this kind of idea cannot realize, Wanda is also the O2O commercial line of the bottom end of the giant.

Wanda to "emancipate the Mind", and then "seek truth from facts", but do not always "stones", since not bad money, then o2o the development of electrical business, please "all look forward."

Can three "cobbler" reach a "Zhuge Liang"?

In the field of electric O2O, has been fighting with Ali, but also suffer from no big strokes available, this and Wanda joint venture to set up a new electric business company, Baidu, Tencent is in the holding regiment sniper Ali's rhythm Ah.

The former Wanda power supplier was formed in May 2012. 2012, Wanda Group opened 2 million annual salary to recruit the CEO, the entire electric business people know, and interviewed more than 40 candidates. December 2012, has been the manager of E-commerce Technology, Google Headquarters, Alibaba International Trading Technology senior director Yi Yitao as Wanda Electric business general manager. But in June 2013, it is rumored that Wanda's CEO Yi Yitao has left the company, Wanda Power by Wanda Group CIO Zhu Strategic temporarily take over. Since then, Wanda Electric has undergone a number of adjustments, including the online network, but its CEO has not made public appearances. The public voice involving Wanda's business affairs was Wang personally by Wanda Group chairman. For so long, with a strong offline resources of retail, real estate tycoon Wanda Group's electric business strategy or tepid, no improvement!

Again, Baidu, Baidu since 2007 into the electric business, Baidu, le cool days, Philharmonic live, Yao Point 100 ... This one after another brief "electric business child paper" has died out. Baidu has put words within three years to defeat Taobao, but let everyone see indeed Baidu repeatedly defeated, repeatedly defeated repeatedly war of the road of the electric business. In other words, the Niang still has the foresight, but the action is slow. Baidu began to enter E-commerce in 2007, it is not too late, unfortunately, until now also does not really belong to Baidu's own electric platform to make the public well-known! is it true that Baidu has no electric quotient gene and the search technology gene is deeply rooted. ”

In fact, Tencent Electric Business road is not good where to go, Tencent "electric shock" than Baidu also two or three years earlier. Tencent has been plowing for nearly 10 years in the field of electrical business since 2005, when the first online project was tapped. In the five or six years prior to 2011, Tencent's own power-building platform has not been mixed up. To 2011, Tencent changed its strategy, began a large number of investment in electric business enterprises, Xun Network, high-peer network, F Group, mom nets, box-office net, etc. have been nationalized by Tencent. According to incomplete statistics, Tencent has participated in investment in at least 20 e-commerce companies, including online travel and mobile power providers. Then to March this year announced strategic investment in Jingdong, will be built from the electric business platform packaging into the east. To look back on the road of Tencent Electric, experienced from the construction of Consumer-to-consumer platform, to invest in, acquisition of a number of vertical electric, and then completely give up the power of the platform will be the electric business to turn to the alliance of the process. It's not easy, but it's still hard to do.

Back then, Wanda Old King and Ali old horse to bet 100 million, lingering still in the ears, really memories. Today Wanda Childe "national husband" constructed micro Bo Spit trough "online shopping computer table sent too slow", micro-Bo frequent vocal exerting force; Before long, Wanda Wang announced that Wanda would spend 5 billion again "studying" the road to the electric business, not excluding the possibility of working with the internet giants. Today, announced Wanda shareholding 70%, Baidu, Tencent each shareholding 15% set up a new electric business company. The big three do electric dealers must mention that is the title of Zhuge Liang "Alibaba", the power of the war will be more and more, three "smelly cobbler" can come to the "Zhuge Liang"?

Retail line traffic tycoon. Wanda in the country has nearly Bailai Plaza, 2007 set up a "thousands of department stores", 2010 years after the speed of 15 stores, become the top five of China's department stores chain industry. Under the line flow for Wanda, really "that is not a thing", how to this huge line of traffic into the line, and then to realize, will be "heads" the focus of the electrical business.

Search for big data barons. Baidu search occupies nearly 70% of the share of search for the future "heads" electric traffic, while a strong Internet technology and operational team to build a large electric business platform, these "it is not a thing".

Social Big data tycoon. Why is Tencent still passable? Because he has a "man". As a social male, the penguin has no shortage of users, at the same time, the user viscous strong, with a large number of user data and traffic, but also has micro-letter, micro-payment such artifacts, to the future "heads" Electric guide users, traffic, open the relevant access port, "It is definitely not a thing."

Wanda has funds, offline resources, Baidu, Tencent has a large number of users, massive data, massive data and user analysis capabilities, and has a lot of excellent internet operations, technical personnel, combination of "offline access + Online access + search" mode, from resource integration, Wanda + Baidu + Tencent group to intercept Alibaba, belong to the strong combination of the team. "Not always in turmoil", the electric business is the major battleground. Traditional retail, real estate tycoon and search giant Baidu, social giant Tencent group to step on the electricity trade routes, whether sniper Ali, this bureau should be very interesting, wait and see!

What do three big guys say?

The conference's protagonist is three "China's richest man": according to the previous "Forbes" released 2013 China Rich List, Wanda Group founder Wang to 86 billion yuan. The previous Bloomberg billionaire index showed that Robin Li and Ma had been the richest man in China with Wang. All three parties believe that Wanda Electric business is only a demonstration of O2O, this platform is well after, can be opened to other industries.

Wang：

Rest and chat, Ma said this business with us this is not very appropriate, it will make people misunderstand, the name will be pondering.

O2O e-commerce largest cake, the world's major business platform built, but O2O platform has not, One-third is the alternative consumption, look at the electricity quotient is basically the book home, clothing, but we do not forget, more like dining, movie and television culture, such cannot replace, can line fusion has not seen, such a platform does not appear, So it's called e-commerce platform.

In the future, this cake is the biggest in the electric business. Experience class consumption will more and more, not simple commodity consumption, future O2O not cut, like American culture consumption. BAT three platforms, and many others, are just beginning, are thinking about how to work offline.

Now see the real O2O platform out, the opportunity for everyone is equal, we are willing to do this effort, to have a real internet thinking, now claiming to do O2O are online companies, that the public opinion is only online can do. In fact, no, Internet thinking has no formula.

5 billion yuan, why do you do electricity business, you are not real estate? In fact, building a team for six months, we ask the line to the line, or line down to the line, are wrong, must be fusion. Wanda Electric Business selling services, do not buy goods. Like the mall parking, users go down two hours in line, including down to find the car park can not find, the experience is very poor. If O2O, online positioning, through mobile phone positioning to find a car.

I said to Ma and Robin Li How it turned into a smart square, and Ma said it was Wisdom Square. Many people said that Jingdong, Ma Yun sell things, you can sell them? Some people say we set up two years, not, we began to trial, software and so did not develop, next year will be officially online. Need to have two or three years, fast 1.1 two years, what will be the form of the time I think I will answer clearly.

So big consumer market, this year more than 3 billion yuan, no real O2O. Our electricity business has not included our start-up fund for five years, as well as external investment, with a total investment of more than 20 billion, but few retail companies of our size. The general retail industry itself can not afford to see if you could not do it, in addition to Wanda himself, but also to set up a development platform, travel and so can come to our platform.

Li：

Integration is a trend, not a single direction, not to say that the line to go down, or line down to the line. I am speaking internally that this is equivalent to building a bridge that is docked from two directions, which is the best that represents the future trend of mobile internet trends.

Baidu decade trend, trying to convince the entity to the line, now hundreds of thousands of offline enterprises, through Baidu Internet, but I am very worried, it technology updates too fast, real economic pace is not fast, I am very worried, so I said, do not embrace mobile internet will be eliminated.

Small businesses like flower shops are embracing the mobile internet, but big businesses are slow. I think the big business hug is a sign, we three six months ago that this opportunity is good, mobile internet growth faster, Internet technology innovation, new technology and business models from China, and the past is very different.

A few years ago I went to the United States, and they always said, "What's in China, you always copy America." But it is not the same now that American entrepreneurs often come to China and say what innovations China has produced, which is a very encouraging time, and I often say that we are in a very fast-growing age, and that one year's innovation is equivalent to 10 years ago.

AI development is very fast, such as Wanda Plaza, a girl wearing beautiful clothes, I take photos can see where there is selling; movie poster, I'll take a picture, and I can find out where to sell the movie tickets. We have come out of the PC age.

PCs connect people and information, but the mobile Internet is connected to people and services, not just to provide inquiries, but to provide services. Like buying a movie ticket, you can choose to sit, I think this trend is just beginning, internet companies and the real economy more perfect. Offline there are many entity enterprises, there is no effective way of operation. For example, air tickets, each aircraft always have dissatisfaction, how to make each aircraft full, improve income.

How to use technology, this is the challenge to us, I also want to use this way, let us see, the future for many years, a lot of enterprises in a new standard, line online under the combination of more perfect, and constantly create new glories.

Ma：

The outside world says, three tyrants again to launch an attack on the line, no, they did not see the trend, we think that the word electrical quotient is not very good, in fact, is to become intelligent, intelligent or business, very complex, can not rely entirely on internet thinking to do, the internet before the substitution of traditional, I think it is only an initial stage.

The internet, mobile Internet is not a mystery, can be understood as electricity, before the same can be done, stocks, banks are running. Can you beat all these industries with power? No, who can take this opportunity in this field, who will go farther.

I fear every big player, they are very qualified, not all of us can do. As you can see, we have made a great change in our thinking this year, and we have been able to work with them. We will connect a lot of partners. In the past year or two, we have had contact with chairman Wang, we think Wanda is only real estate, in fact, it has developed many cultural industries.

Offline and online, there are many opportunities, such as entertainment, we are both online and offline entertainment are the largest, are tens of billions of sales, there are great business opportunities, this can see a lot of opportunities.

Micro-letter put forward to connect everything, so that more intelligent services, not only culture, retail, and hospitals, communications, there are a large number of O2O opportunities, using mobile internet technology, so that people's lives more intelligent, I think this is a very meaningful attempt, there is no case can be referred to abroad.

Not afraid, I think the domestic many models in the global lead, micro-letter and QQ to break out a road, domestic as well, as long as the user needs to seize.

In fact, not just Wanda, he is just a demonstration, this platform, the other can be used, can be opened to other industries, today's cooperation, we and Baidu, very few have a big cooperation, this is the first time to work together.

The internet believes that competition and integration is a trend in the future, we do not need to compete with the Internet to see the smoke.

(Source: Titanium Media, electrical business update, tiger sniffing nets, Phoenix finance)

(Original title: Wanda Electric Business Ambition)