Xun Bu Guangzi: large electric business platform to survive must go to the open

Easy to network CEO Bu Guangzi

News and Technology December 18, 2012 Fourth annual effect of the integrated Marketing Forum held in Beijing today, the theme of this forum for both internal and external marketing broken Bureau, Dispatch as the exclusive financial media for this meeting to carry out the full report.

Xun Network CEO Bu Guangzi said in the speech, can precipitate the user's electric business platform must have the unique value and the word of mouth, a large electric business platform to be able to survive, platform and open direction is difficult to avoid. Openness is the main direction, especially in the operating loss of proprietary goods, the profit is mainly in open system platform.

Bu Guangzi also said that the rapid growth of the entire electrical industry in fact benefited from two aspects, the first online shopping user size growth, the second is on-line shopping consumers themselves more and more strong consumption.

The following is a transcript of Bu Guangzi speech:

Today, I am very happy to share with you in this place the Xun in the field of electrical business and some of our observations over the years and some summary. Some time ago, I said that we have a meeting in Beijing want Xun to participate. In fact, marketing things are Xun short board, Xun so many years, starting from 06 to now more than 6 years of history, really in the field of marketing let the industry feel that doing good things almost very little. So this marketing is really not Xun strengths, and then I said we will talk about what we are good at, some of the thinking of the industry, our thinking to share with our electric business, to see how the future development process in how the direction is correct.

Today this topic is very good, both inside and outside the marketing broken bureau, the previous talk about marketing, we speak a lot of very words things, listen to people very annoying. But today's premise is both internal and external repair, meaning that we want to do the marketing well, first of all have the internal strength, just also mentioned Xun 06 after the establishment, in the marketing to do very little, the original thinking is China has an old saying, the wine is not afraid of the alley deep, if an enterprise products and services to the market to obtain consumer recognition, to win the market , the prerequisite is to be able to make products and services well.

In 2006-2010 almost 4 years, Xun has been groping in this field, that is, Xun what kind of company? What kind of value can xun provide to consumers in terms of market? What is the difference between these values and our peers? What kind of scene can consumers think of Xun? Xun what are some things consumers can't live without? We have to answer these questions clearly before we know what Xun should do? What does the electric dealer do? What is the direction of our development? What is the direction of investment? We have done a lot of research and analysis in these fields, especially in the so-called user value. I'll do some sharing later.

I have some information here, these materials are actually from some official or Internet information, especially thanks to Eric, billion states, easy to view these in the electric business industry engaged in data collation and reporting of the industry, their data gives us a lot of knowledge of this sector. The information in my PPT comes from the public information, not too many secrets. We did some analysis and we shared some of the interviews we did with our peers.

This information is also in the Xun and Tencent internal sharing information, today brought out to see with you. 2012 In fact the entire electrical business is a The electric business industry has many stories, just now the general chat, the price war, double 12 caused the concern of the industry media government, I also saw that we CCTV in 2012 unprecedented investment in a large number of time to talk about the electricity quotient, the most important is the electrical business to the whole industry impact too much.

Some data, Chinese netizens June 2012 scale 588 million, this data and some time ago a very popular Internet Queen data a little gap, but the gap is not big. The overall population permeability of 40%, which is more important, mobile internet users have reached 388 million, accounting for the overall netizen 72%, last year, in the General Assembly, the industry to talk about the development trend of the big mobile electric quotient of this concept, to this topic more and more hot. Social retailing has grown very fast in recent years, from 2010 to the last, and is expected to be almost 11.22 by 2016. The total size can reach 2.7 trillion. If a relatively successful electric business enterprise, especially the large platform of electric business, in the industry has its own place, how much the market to how large. 2.7 trillion 10% is 270 billion.

Some time ago Taobao released the industry data to become China's first on the scale of more than a trillion-level water platform. In the future we believe that China will have more water scale to reach hundreds of billions or even hundreds of millions of of the platform.

Life in the field of electrical business development, especially the emergence of micro-letter, group purchase development is concerned. The overall market size of 2012 was almost more than 80 billion. The overall size of the future will reach more than 200 billion by 2015. The other part of the entire electrical business, perhaps Tencent is more concerned about, digital music growth quickly. The entire market to 2015 the scale of digital music over the size of physical music, the entire digital music field development is the future you can see the direction.

The rapid growth of the entire electric business industry actually benefited from two aspects, the first internet shopping user size growth, the second is online shopping consumers themselves more and more strong consumer power. The amount of shopping has grown very quickly.

Per capita sales are expected to be close to 7,000 by 2015, at the current level of almost 5,000. This data is also provided by Eric, you can refer to it.

The total number of users in the network growth, while each of the user's consumption of network growth, these two are driving the growth factor. Growth, the network users 09 36.3% to 2012 21.8% to 2015 will also be reduced, because the growth of the network user population dividend brought about a gradual slowdown in growth, this to attract attention.

At the same time we see a phenomenon, online shopping in the field of growth faster than Consumer-to-consumer, in foreign experience is also the case. By 2012 at present, the whole c2c38.8%,b2c is broad, including the autonomous platform-type, this scale is almost 105.5%, multiplied, if their business in the last year has not been longer than one times the overall industry development. Overall, the development rate of the whole industry will gradually slow down. The entire industry is growing at a high speed over the next 3-4 years.

It is expected that by 2015, the entire industry will be larger than the Consumer-to-consumer scale, which is a trend. In fact, in the course of the development of electrical business, we as the operator of the electric business thinking every day, our direction. Think about this problem. First of all, the current international and domestic some excellent successful cases do some analysis to do some thinking. Here is a brief analysis of the Amazon example of the United States, this example has a conclusion, what is the conclusion? In the Amazon so successful business of E-commerce, everyone is well-known book management, 3C department stores in fact, the last is the loss.

Amazon's income is almost the cost of self-employed goods costs 82%, margin 18%, logistics costs almost 11%, other and standard-related, including the call center after sales to 2.8% of the revenue, marketing costs around 2%. Combined with technical inputs and management costs, the last 18% of gross profit is almost entirely depleted and slightly deficient. This is based on Amazon's public earnings analysis. Amazon itself has a net profit of its own every year, mainly from its open system, including cloud computing, and the profits of some digital publications. So from this data, see, in the future of China's business-to-consumer especially vertical direction of development, through its own portal site for vertical business-to-consumer risk is greater.

Tencent Electric business to this part of the judgment that a large electric business platform to survive, platform and open direction is difficult to avoid. Openness is the main direction, especially in the operating loss of proprietary goods, the profit is mainly in open system platform. In fact, there are some more successful cases in China, Taobao and the cat, the two 11 times this year set a very high sales record, while achieving large-scale profit. Taobao operating in two parts, the cat net profit finally higher than Taobao, because the income model more. 1% Promotion of revenue, advertising revenue, plus technical services revenue. Nearly 5% of net profit. Consumer-to-consumer profit is lower.

Tencent electric business In fact in the whole field of electrical business did some exploration, always feel that we have a lot of traffic, how these flows can make the best use of, can form a gathering more customers and more businesses of a platform, in fact, there is much work to do. We know that a platform can eventually transform the vast amount of internet users into electricity consumer users, the most important point in the establishment of user Word-of-mouth, the user's Word-of-mouth represents the value of users. At the same time, we must establish more distribution channels and more extensive application of the surface.

The left word of mouth and competitiveness is the path of the user precipitation, the previous experience, Pat to make large flow, in fact, the most happy is Taobao. Why? Because the consumer once received an advertisement, will think of this commodity in Taobao may be what price, so go to Taobao than a, really driven by Taobao sales, this is a comrade said Taobao.

So one can precipitate the user's electric business platform must have its own unique value and reputation, in due course consumers can think of you. After each wave of promotions should be able to settle down a part of the customer to the platform recognition, you as a future consumer of the selection of the object. This can achieve user precipitation.

On the basis of mass users can complete large-scale orders to establish a more powerful logistics capacity and more user flow portal. On the right is the scale of demand, in such a thinking, in fact, the self-employed and open platform model, in Tencent is basically established as the future direction of development, do a bit like Tai Chi, today, hope to engage in a promotional or build a platform above the advantage point, it is difficult to personally use some resources to achieve Must rely on the platform above some service providers and merchants, integrate their ability to achieve. Not the same, the year to the end of a large number of promotional, organizing goods, sourcing, find supplies to negotiate better single products. These are easy for the business-to-consumer to do. Through specific such a number of competitive points to meet the needs of some customers, and gradually establish awareness.

Recently, we have a lot of public opinion on the development of Tencent, the actual after several years of groping, Tencent electric business positioning more clearly, we will be able to build up through the development of proprietary consumer reputation, and Word-of-mouth service can drive the flow of development, the flow of these shares to the platform to promote the development platform. But Tencent Electric quotient and the cat is not the same, the day cat is a lightweight platform, how at the end more nullable, the user Word-of-mouth better, is the direction of future efforts.

The system of warehousing distribution and customer service formed under the Xun system will be opened to the merchants as the basic service system of Tencent's electricity business. Xun future opening of the basic two points, a whole service and Xun proprietary mode, the choice of businesses will not be very wide choice of tens of thousands of businesses, the future is the campaign merchant. How much more in business, consumers choose easier to make their own efforts.

This is a number of Tencent's strategic steps, the first is the front of the brand on the continued retention of Xun and QQ online shopping, Xun is a closed-loop enterprise, mainly authentic low-priced and lightning services, this service does not want to be opened quickly to desalination, short-term Xun is the system to run alone. The future of QQ online shopping in the development of a certain scale will gradually and Xun integration. What is the integration model? Look at the final two platform Word-of-mouth where, whether the conflict or together will help. Backstage to establish a system to ensure that the core merchants in the user, payment search and other technical systems to maintain consistency. In the future, it is possible for a merchant to open a product in QQ, do not need two jobs to Xun system, and form a set of open system.

This is Tencent electric business in various areas of collaboration, this can be a simple reference. In the user PC and mobile here has a large number of applications, here becomes the mission of the shop entrance, Tencent internal some QQ Tencent Micro-life-related things are also as a whole organic ecosystem part of the electric quotient. Here I will elaborate.

Tencent's future direction of development, hope that through a few years efforts can really get to mention 2.7 trillion of the nearly 10% of the market share, almost should be 200 billion scale. Hope to be able to do the first in customer satisfaction. The second Life of the electric business can serve millions of businesses, the life of the electricity business is Tencent a very unique future development of the electricity quotient point, is also based on the social network we have established on the basis of radiation billions of users. Creating the first platform of digital music can make digital music our new business model. Xun is the self-praise, playing authentic low-cost fast service points. Open is a practical open, authentic low-cost, open platform virtual part of the main in the subdivision of the field to do a leading, for the platform to provide links. such as recharge.

Living in the field of electricity and micro-letter cooperation, the development of O2O business, QQ Music has done a lot of work, to maintain the advantages of the platform and iOS, the previous time QQ music did a conference, and automotive Integration program.

Have the opportunity to share with you. Finally, today we do electric business and development, no matter what, must be able to establish their own core competitiveness of the enterprise, this core competitiveness must be able to represent a certain type of user needs, regardless of the wealth of goods, or services, such as the convenience of the field to be established. You have to give the user the reason to choose you. On the basis of further marketing, marketing premise is the products and services. Finally, I wish you all a better performance in the development of the 2013, thank you.