Wu 15 Q: The life of the retail business of the three or four line

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

Wu leaves the handle net, starts the seventh time to start a business. This time, he said, completely backwards. The past six startups are starting from a first-tier city, the need for large sums of money, pay attention to rapid scale. And this time, Wu said, walked into the three or four-line city, do not need the money to invest, the goal is small and beautiful.

The upside is not because of past entrepreneurial lessons, but because different business forms require different gameplay. This time, Wu to do in the three or four-line city of clothing and building materials chain, he provides a technology platform, purchasing power to the local shops, play a revolutionary retail business O2O game.

O2O can aim at traditional retail

Billion power network: Many people say that can not understand what the United States and Canada music to do, you can say more clearly point?

Wu: In fact, the people who understand this field, just a layer of window paper, a little broken. O2O do not look at the service industry, buy to do good, and do not just want to do coupons, this has no core. In fact, O2O can aim at the traditional retail, no matter how the development of e-commerce, shops before, there will be, you dare to say that the Apple Experience store will die? Full street can not only suning gome, there must be other forms of shops.

My venture, plainly, is to the three or four-line city open clothing stores and building materials stores. Unlike traditional chain stores, we take a combination of online and offline, 100 square meters to a small number of 2 tablets, users can not find a favorite style, online selection and the next single, but also the line up and down a single shot. The United States and Canada to provide technology platform, its commercial core is to use O2O means to solve the traditional retail efficiency is not high.

Billion power network: You say the traditional retail industry to blow to the O2O wind, why have such a judgment?

Wu: China's retail industry has changed so much over the past decade that my wife has been buying from China to the United States for the last ten years and is now buying things from the US to China, which is three times times the price difference, the most hated being made in. Why is that? China's retail industry is tired, big City commercial real estate is too expensive, the city center the most cattle shoppingmall shops are losing money. On the contrary, the three or four-line urban urbanization is fast, the demand is big, commercial real estate price has not gone up. There is a need for the Internet and good goods and services. So I ran to the three or four-line city to open a clothing store and a building materials store.

Billion power network: You say the technology platform, specifically solve what problem?

Wu: Like the two of us in this café, how many people walk through the door? The boss must not know. For traditional stores, there are three key issues, one is the flow of people, the second is the ping effect, the third is inventory. Traditional retailing rarely looks at human traffic and conversion rates. We will make full use of mobile Internet to achieve data management, through technology, platform, process to the traditional retail industry to improve the above three problems.

Billion power I: You said these remind me of Suning's electric business practices, the United States and suning practice similar?

Wu: Not the same thing, Suning is to do is the channel brand, and the United States and Canada music is more like a brand shop, positioning in the high-end, like gap relative to the U.S. positioning, selling products mainly controlled by our production, there is a cooperative brand.

Transformation of the three or four-line city retail trade

Billion Power network: Warehouse to be built from?

Wu: We will not do warehouses, offline stores and suppliers to assume the warehouse. We are looking for experience and results and offline cooperation shop, has been the initiative to find us.

Billion power network: All over the shops have direct battalion, but also allowed to join? How many offline shops?

Wu: We take the form of exclusive regional cooperation. We do not call the franchise shop, but call the cooperative shop, do not accept the franchise fee, but to take the local shop and the way to do. The core is to maximize the benefits, open a few shops by their own decision. The United States and Canada to do is to maintain the control of the channel, local shops must recognize our culture and processes. Consumers online orders, local offline shop also has a profit-sharing. The United States and Canada's business needs to be scale, scale to benefit, no mobile Internet, this model can not do.

Billion power network: The United States and the joy of what can pry the three or four-line city shops?

Wu: The biggest problem of traditional clothing shop is inventory, smart shop owner is half sell brand products, half sell their own things, he can live. Stupid shop owner 100% sell brand merchandise, do well at the same time also pressed a pile of goods, he does not make money.

As mentioned above, the United States and Canada to use the Internet technology can give them three major benefits, one is to eliminate inventory risk within two years, to zero inventory, and two years of high efficiency over Uniqlo. Line 100, online 100,000, we make money together. Three is to help the shop complete personalized member management system, I particularly like county, mouth spread in the county in the effect of super good.

#p # subtitle #e

Billion Power network: Why choose clothing and building materials?

Wu: I saw a lot of industries, not all industries are suitable to do O2O. Building materials Repeat purchase rate is low, must be offline services. Clothing is very interesting, divided into brand categories and functional categories, functional categories to see prices and quality, brand-type clothing pay attention to fan son, is a cultural cause, need to experience offline. So, I think these two kinds are very suitable for doing O2O.

Billion power network: Why do two industries at the same time?

Wu: Think two opportunities are very big, O2O Montreal is the opportunity, we are small team to do projects, in the future may also open up to other industries.

This time I've overturned the past

Billion power network: What City are you going to be in, south or north?

Wu: Not yet, but we try to do it fast.

Billion power network: Have you investigated in the three or four-line city? What do you mainly see in the survey?

Wu: I have been to the country famous poor areas, where there is no gome suning, but Haier. I particularly admire Haier's channel distribution. As for the contents of this survey, it is not clear yet, another three months. China's rural people to leave the country to work outside, home in the county to buy a house, the pace of urbanization is very fast, we all saw the opportunity of the three or four-line city, so I said the Gale is coming.

Billion power network: In the past you start a business from a first-tier city, this is you to do three or four-line city business, this is from the handle in the three or four-line city of the performance of the revelation?

Wu: This time to venture out, is to do their favorite things, said earlier, I found that China's retail has a very big problem, even Zara 30 years ago did not copy over. Big City commercial real estate is too expensive, most brands cannot sell LV's profit, and LV because its brand effect is free rent, commercial real estate wants to earn back on other brands. I once chatted with a Shanghai store owner, he said to see many brands Merry-go-like Exchange, if the last if only left LV, Armani such a big brand, finally his business is over.

Billion Power network: In addition to geographical differences, you said before the start to take money is very important, and this time the United States and Canada does not accept external investment. What's the reason?

Wu: I never said to take money is the most important, make money is the most important. Entrepreneurial success first to shun the day, this time I think O2O the time to come, the brand era has come. I want to take this opportunity to be a long-term private enterprise brand. Brand and platform is not the same, the platform needs scale, and the brand needs to hang on a point, like a total chasing also not on the girl, catch up on is not called brand. So, do not rush to make a brand large scale, open a shop to make money, open 100 stores to earn money, do small and beautiful more happy.

Billion power network: You have said before, the entrepreneurial must have speed, or be the big crocodile sighting on the waiting to be eaten. What is the reason for such a big contrast?

Wu: Or as just said, platform is platform, brand is brand, different business model requirements of the scale is not the same. You figure out what you want to do, not everyone can open 50,000 shops, all I have to do is to open the shop happily. Outside of the evaluation of my many inaccurate, such as preach I said, the company to do the industry after five must sell, actually do after five want to sell is impossible, the first three to sell out.

Billion power network: for the United States and Canada music business model, you only painted a profile this time. It sounds like a technology platform and a retail brand.

Wu: I used to do are technology companies, technology companies have been driving the wave, can win a moment, can't win a lifetime, the time to sell or to sell. Traditional brands can be done for 100 years, or even longer. The happiest thing in life is that friends are richer than you, all of them respect you, where you have to pay for dinner, I hope that in the future, the United States and Canada to create more than 10 national well-known brands, help me to complete this wonderful.

Billion power network: So, internet companies and retail companies, you are more inclined to the United States and Canada music is Which?

Wu: Internet technology enterprises, more than half of the United States and Canada are all engineers and technicians. Ma said to go to the traditional enterprises, Jindong have to do the Internet, so smart internet people hurriedly to do the traditional enterprise it, your Internet thinking used in traditional industries, will certainly be able to make money.

For example, the current situation of the electric business, Taobao made the largest electric lamp factory, Ma Yun monopolized the business, we can not go to do the electric light, but could do electric loom. Although in the short term can only improve the traditional retail industry one-tenth efficiency, but three years later will increase 10 times times, is also a big business.

Wu Entrepreneurship Readme: Actually, I've never changed.

I am particularly boring, very boring, is a typical technical person, very dirt, my wife said I would not play, for other things not so much fun. After leaving the handle, my family and I went to the United States, Vietnam, Hong Kong and Macao to play a trip. I bought a very expensive camera for the first time and took a lot of pictures for my family.

When I came back, I was advised to invest, I helped him for a while, I felt unfit, I liked to do one thing, and then I finished, and angel investors had to do 100 things. So I decided to start again after New Year's Day.

After chatting with a friend from a traditional retail business, I found that three or four-line cities have great retail opportunities. First, the rapid pace of urbanization, clothing and building materials are the local people just need, but the retail industry has not followed up; second, the traditional retail industry has no internet thinking, such as clothing inventory problem is very serious. I am an electronic engineer, the engineer's thinking is to solve the problem, I would like to use networking to enhance the efficiency of traditional industries, and certainly make money.

So, this time and the previous venture nothing different, are using the Internet to solve the problem. Internet entrepreneurship is simple to say, solve big problems can be made into large companies, solve small problems will be made small companies. I like this simple life. My wife and I said earlier, do not want me to retire, I was with friends to play a big game, the wife said I was busy a little better, busy time happier.

Ma Yun said to go to traditional enterprises, Jindong also to do the Internet, smart Internet people should hurry to do traditional enterprises. Frankly speaking, I'm not opening a clothing store? Do you want to go to the store on the floor? Using your Internet thinking in traditional industries, perhaps the Internet applications of traditional Chinese industries can be step, like China's high-speed rail. Don't think of the electric business platform again, Ma Yun has a monopoly.

This time, I was with China's top rich people, as well as the four or five-line city of migrant workers have been exchanged. Finally determined an idea, some things can be pure line, some can be pure offline, and some both lines. Ma Yun and Wang of gambling, in fact, there is no answer, because the last is you have me, I have you, I don't know who loses who win. I feel the o2o of the traditional retailing industry is coming. #p # subtitle #e#

Jobs changed a lot of people's ideas, not only the product to have the function, but also has the stylish. For example, Google's glasses, millet shoes, they have this gene, I am very optimistic about them. I am very sigh, just like friend Jianjiang said, China to enter after the commodity era, eat full wear warm is not live pursuit, but lifestyle. After the commodity era is also the birth of the brand era, so I jumped in the internet thinking to do the brand.

I choose the clothing and building materials industry, both the Internet and the need for traditional shops. China's apparel industry, everyone is very pressure, everyone said to them, you have to use technology, you do not have the technology, but they are very painful, do not know how to do. But at the same time, you see Uniqlo and Zara they are very hot, we want to learn, the United States and Canada Le is to help the three or four-line city shops to solve these problems.

I used to do are technology companies, technology companies to bandwagon is very difficult to win a moment, can not win a lifetime, the time to sell or to sell, because doing business to your investors and the team to make money. And the traditional brand can do 100 years, or even longer. I want to do a long career this time.

I was asked to start a few times, experience a lot, this venture is the first time to enter the retail industry, but also is the three or four-line city, and do not venture capital, the contrast is so big is not the past entrepreneurial lessons. In fact, the 20 years of entrepreneurial experience has not changed me much, entrepreneurial projects have been the Internet applications, but different business models need different play it.

For management, I also have no 0 and 1 changes. I used to doubt myself that I was a Silicon Valley style, too good for people, too lax for Chinese entrepreneurship. Later I looked back, I was such a style, can not change, nor feel right and wrong. But what I used to see is clear. In fact, everyone has positive energy and negative energy, as entrepreneurs, the point of light everyone's positive energy. When you are on the move, others follow. You hurt others, you will not be happier. It is most important to do all things, simple and kindness.

The author observes: Wu in the improvement Arilian infinite?

Handle just fire pelting, at a small party I met Wu once, he came in only with a few people chatted for a while and left. I thought he was a very serious person and was not in the mood for the casual atmosphere of the scene. At the end of 2012, I have been about Wu out to chat, he has been pushing back, said years later can chat, but can not say handle half sentence.

On the way to Sanyuan Bridge Blucha Coffee, I also calculate how to let this serious person open heart, talk about his entrepreneurial sentiment more. At 10 in the morning, I pushed the door in and there was no one in the café, Wu and his assistant were sitting. His whole state was relaxed and his eyes were full of light, as if he had just had a long journey.

Not waiting for me to ask, he told me now is in the business, when the Chinese goods have entered the commodity era, O2O to enter the traditional retail industry, the next wave of Chinese electricity dealers in the brand and retailers. He was very excited to say that the United States and Canada music is the homeopathic, do is to use the Internet to change the three or four-line city of the retail industry pioneering.

But he still has some reservations, "WU entrepreneurship 15 Q: Leather three or four line retail business life" record my dialogue with Wu, he only paints an outline and framework: The United States and Canada to build a online consumer platform, a background system, in the three or four-line city to find exclusive regional partners, by the partners to decide the choice of online franchise shop.

I and a few do o2o people talk about the United States and add music, we put together a piece of Wu information, think that the United States and Canada music is in fact to Alibaba Good Unlimited platform O2O. Liang Unlimited distribution business from June 15, 2011 onwards, which participate in the distribution of production enterprises (suppliers) to a certain number of products to the goods distribution warehouse, and distributors (Taobao Sellers) responsible for the products sold out, the nameless good products are responsible for shipping and distribution.

Compared to the United States and good music and good unlimited distribution platform, only three differences: the good unlimited distributor is Taobao shop, the United States and Canada Le Distributor is three or four line shop, the supplier's goods must be placed in the good unlimited distribution warehouse, by the good unlimited responsible for the delivery. The United States and Canada's warehouse by the supplier and the line shop to bear, and ultimately by the offline store to achieve the same city distribution.

What difference does it make between these three points?

At the outset, the nameless good product distribution platform was initially favored by many factories. This is like to do not understand the online retail factory found a shortcut: The credibility of Samsung above Taobao sellers to do the distribution, there is abundant resources of nameless good products to do warehousing and distribution, factory production on the line. Taobao this flow of the tree, there is no reason why?

The reality, however, is that in less than two months the supplier loses confidence in good faith, and there has been no significant change until now (see our Special report, "Good infinity: winding up in discontent"). Analysis of the reasons for the infinite difficulty, perhaps a clearer picture of the future of the United States and Canada.

According to the response of several suppliers at that time, the design of good unlimited distribution process does not conform to the rules of online retailing. "It is easy for suppliers to communicate directly with distributors, not to mention the addition of a distribution warehouse in the middle." The original intention of the nameless good product is to concentrate the high quality resources and ensure the delivery speed. But in the actual retail process there are many unknown details of the problem will be able to cause the overall loss. For example, how to package products? How to communicate with distributors when the buyer returns?

At this point, Merlot has no intermediate warehouses. And for Wu, the key is how to build a supplier and three or four line shop communication methods. Wu's vision is to use data and technology backstage to achieve zero inventory of the fast fashion model. This, I do not make comments, the difficulty of everyone in the heart of the spectrum.

Second, the good unlimited Oita distributors do not participate, small distributors do not have the strength to participate. Wu in looking for distributors on the pressure should be better than good unlimited small, say a number we understand the reason, a colleague of Huangshan County in the mother last year Taobao spent 10,000, in fact, the pressure of the electricity business has obviously spread to the three or four-line city entity shop. And as the three or four-line city builds faster, the former bosses are not able to improve their service levels, and they want someone to help them improve.

The last is the flow, good unlimited although back to Taobao, but rely on Taobao also has a day cat, Poly cost-effective and other big head, divided into good unlimited head is not much. Who is the traffic backer of the United States and Canada music? O2O itself has two ends, both online and offline can bring traffic, three or four-line city ads than Taobao cheaper, plus offline shop as long as the location of the good itself is not lack of flow. In this regard, the United States and Canada music also has a certain coefficient.

Comprehensive analysis, Wu the biggest difficulty is to find a strong seller, and establish suppliers and sellers efficient communication channels. If it can be solved well, Wu can become the first to eat crabs, using Internet technology to enter the three or four-line city of the growing retail market.