Xu: Entrepreneurial struggle to do market segments No.1, investment choice is more important than efforts

We really live in a good time. To be successful, besides cleverness, diligence, luck is important, you have to do the pig standing in the mouth of the typhoon. The Chinese era, the demographic dividend, entrepreneurial passion, gives us a lot of opportunities, China also has many opportunities to create the industry's first brand.

Compete for the No.1 of market segments

How do I get the big Fast?

First, we should No.1 the market segments. Now many entrepreneurs are running a small company, do any company may be the Giants are doing, how to compete in a full and vigorous market rapid growth? First you need to focus on a particular niche market. It is important to be a pioneer of the category, the "left" is king. No.1 in all industries have a common feature, and they are often the forerunners of this category, even the pioneers. In the Internet age, the forerunner's advantage is very huge, because the transmission cost is lower.

Second, do something different from others. When Jobs made the phone, Nokia was already strong, and jobs often looked at his hands and wanted to use his fingers, which was innovation. Micro-innovation also works. When you see a category coming, you have to rush to die, your market share of more than 30%, you are safe. Before that you have to run quickly, not to take into account the profit and return on investment, to quickly get the user. What moves us most is not revenue and profit, but the number of people you grow.

The first time we saw Jing Dong Lao Liu (Liu), Jingdong sales income is also 50 million. What struck us at the time was that he did not play a penny ad and grew 10% per month from last month, indicating that their business model was right.

Lao Liu This person is very good faith, has done two things.

At that time he said to 2 million dollars, I said 2 million dollars which is enough, so we give him 10 million dollars. When he gets our money, he expands the category. The internet is good for everything, but users get very high cost, so the most important thing is to repeat the purchase. Let the user have a knowledge of you, frequency is very critical, frequency by the product is rich or not decision.

Amazon in 1997 wrote a letter to shareholders, said the retail three core: first, the product is very rich; second, affordable; third, the user experience is good. The user experience is good to a certain extent is the delivery fast, also determines your frequency. When and excellence in Beijing before the east for many years, has been guarding the book, did not expand the category, if they expand the category early, it is now when and the World of excellence. When an era and opportunity come, the founder sees what others cannot see, and his decision is crucial.

At that time, Jing-dong to see the user's complaints, 70% of complaints are not satisfied with the distribution, old Liu began to build logistics. At that time, the pressure is very large, we have to go to a city to have two cars, 10 or so people, daily orders are 20 or so, are lost money, until 2000 single when we do not lose money, then we have been using the bridge loan.

The other thing we do right is to get 18% options out. The biggest bottleneck of a small company is the ability to find a capable person. How do you attract capable people? is to draw on options. At that time we took 18 points, only linked to the growth of income. At that time do not look at profits, 5 years later to see profits.

Small companies do not go with others than all, the time mainly to do one thing. A move to eat a lot of days, a product can be a certain point to achieve the ultimate, which is key to the entrepreneur. For example, Jingdong delivery fast, market blue-collar job search.

Platform or brand? Choice is more important than effort

Investment, choice is more important than effort.

We have been thinking, cast a O2O, cast a public comment, we have a special feeling about O2O, we hope to find the next rapidly growing enterprise. Are there any other opportunities for electric dealers besides two platforms? We should look at frequency, such as the frequency of shoes is not very high, a year is three times, not enough. Users get high cost, repeat purchase times are not enough, it is difficult to do, so the frequency is a feature of our observation. Finally do the platform has a feature, he made platform, other people's things get inside to sell.

Is it possible for retailers to be made into electric dealers? For example, Carrefour, Wal-Mart, their largest category is divided into two parts, fresh and dry goods. Dry goods also include clothing and shampoo and so on. Carrefour and Wal-Mart have encountered a big bottleneck, is the user lifestyle changes. Now after the beginning of a family, and buy things, their characteristics are five or six hours a day online, more than 50% of things, especially dry goods are bought on the internet. For Wal-Mart and Carrefour, fresh is to make eye, dry goods is to make profit. Now the old people generally in the morning to buy fresh, and so on and after the students to buy fresh, all have been singled out, their experience is very poor. Supermarkets such as Wal-Mart and Carrefour used to have gold for 20, but the time has passed. If Wal-Mart and Carrefour are going downhill, they will be a big one in the afterlife.

The second big category is the clothing, the clothing I thought you do not think, this is a very long long tail, in the clothing, the user first choice is not the brand, but the style. So I think the clothing is basically the world of Taobao, or like only goods will be, do brand discount. The third is 3c,3c I think is the world of Jingdong, experience is getting better. And then the furniture, is very good category. Ikea, the old man, insists that he does not do the Internet. The traffic on the Internet is very large, but insist that you come to the store, which is a good opportunity for internet companies.

O2O we have voted in the public comments and fairs. Group Buy now left the public comments and the United States, the classification of information on the remaining market and 58, we feel that this is good, the team grew very strong. We also saw the new model, the Beaver family. Before the market and 58 are for small merchants to transport guests, but the new O2O is subversive to you, individual craftsmen, nail clippers, nannies can come up to serve. Stores have not, the management cost is not, the organization cost has not, may all reshuffle, afresh the price. This model overturns the store. The internet is a technological revolution that improves efficiency and lowers costs, and ultimately the beneficiaries are consumers and those who subvert others.

What is the pattern of the final market? We observe, if you do platform class enterprise, basically is two yuan rule. To the end, the first one with the second price in wartime, the third is dead first, the fourth place fifth name is gone. Platform class Enterprise is very cruel, either big or out, no medium-sized enterprises. Now the electricity business is "Taobao + Jing Dong", Classified information is "market +58", group buying is "the United States Group + public comment." But if you do brand, do products, you can blossom, not so cruel.

Management upgrade After the rapid growth of enterprises

The organizational structure of large enterprises in the change, all divided into the division, will be responsible, rights, benefits all decentralized. In the age of mobile Internet, 0 of times, you can not report the level of more than two times. In the age of mobile Internet, your boss is your user. To interact with users, this is the culture that mobile Internet should have.

Now a lot of the core team is 85 after and after the bad tube. What do they want? Is "Bloom".

One of our businesses is selling snacks and watching them every time we go is like playing chicken blood. They've got the shop-length contract system, the excess part takes 20%, makes very bloom: first, the store chief is the election posts, second, earns the money, again stands on stage, again blooms one; third, puts the store long on the micro-letter platform, every day PK, again blooms one. We look at the data, no contracted growth of 5%, contracted is 25%, this 20% is blooming. So we still believe in this era to make employees bloom, especially after the generation and the. Money alone is not good, is to rely on the bloom, to feel.

Where do the bosses spend their time? I believe in the 28 law, 20% of the time determines the return of 80%. In the era of mobile internet, the founder must spend a lot of time focusing on user insights and product experience, the most worthy of learning company is Tencent. Small Margo (Ma Teng) What rights are decentralized, is the user experience and product experience caught in the hand.

Jing Dong Lao Liu is also, many details are he thought of. At first there is no very strong logistics distribution, old Liu thought to send text messages to everyone, which makes users feel very relieved, but in fact every time SMS is an advertisement. It's important to interact with fans, and it takes a long time for the boss to get inside. and the Squirrel Daddy (the founder of the three squirrel), wake up every morning will do two things, first, look at the user evaluation, the second is, to see sales rankings, the matter seized, also do not have to go all day to site, to the staff dozen chicken blood, these are not, give full decentralization.

Founder of a start-up company, one kind is product-oriented, one is consumer oriented, I am willing to choose product-oriented. Consumption-oriented can learn, can recruit, Huawei, Ali are invited to come, but the product is to have talent.

Organizational structure, two observation last year, one is the company from tens of millions of to do 1 billion or 2 billion, often encounter bottlenecks, there is no bottleneck of the enterprise have the common characteristics, is this boss particularly ruthless, he can take "little white Rabbit." Good values and performance and good People is a star, to give him a lot of love, give him a lot of money, let him bloom. Many people have bad performance, poor values, such people must go. There is a small white rabbit-work diligently, is not out of performance, a lot of bosses do not know how to do this person, the small white Rabbit has become a big white rabbit. All the small white rabbit to win the boss, the company all the way forward, not to take the small white Rabbit, 2 billion is the bottleneck.

Building the industry's first brand and financing way

How to build the industry's first brand? First, a great company starts with a good name, and the name is right. Your name should be simple, easy to remember, such as "three squirrels" is particularly good to remember. Second, to play the brand to be willing to spend money, to continue to put. The most powerful we are cast the market, made a small donkey, please Chen Yao, CCTV bombing, subway bombing. Now there is another powerful video, we used to say that there should be "three one": a touching words, a picture, a 15-second TV ad, now also to add a video. The video to achieve the ultimate, but also your core competitiveness, advertising can save a lot of money.

There is to three-tier cities, and even to the countryside to brush the wall. The advantage of the three-tier four-line city is that there is only one downtown (downtown, downtown), there is only one downtown, all business is there. As long as there is a billboard, it is very shocking. Jing Dong at that time had 130. There is also a push, the small company has no money, this trick is very useful.

The age of mobile internet is cruel and cruel, once you get it, it will always be yours. Download market with very handy, and then the market unloaded 58, this opportunity cost is very high. You keep adding things, so that his frequency of use increased, so you are very cost-effective. If you are three times a year, you must hurry to get him, for the future will become more and more expensive.

How to finance? Financing is fast and the amount is big.

Jing Dong to 2 million, we gave 10 million. But tell you a fact, 2006 after the completion of the Beijing-east, 2007 growth particularly fast, 2008 years it has no money, when the financial crisis came, old Liu saw twenty or thirty investors, do not give him money. At that time, we asked the consultant to give us 200 million dollars, no one to, 100 million no one, the results to 80 million no one to, and then we said 65 million should be someone. And so shook hands, another American boss, said now is the internet's low ebb, said only to 30 million, but we did not agree. That really scared old Liu. The price war is unavoidable, to prepare sufficient capital.

Since entrepreneurship is very difficult, the probability of failure is very high, since this, you have to go to innovation, to do the market segment first, to create a category. Do not be afraid of failure, the entrepreneur is lonely, so you must be brave and lonely, the courage to greatness.