Capital Xu Xin: the Internet enterprise platform, you either big, or out!
- 2018-01-26 14:56
- Jingdong new retailing on the Internet platform
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Jingdong, a Internet plus business / retail forum "a Jingdong" the starting ceremony, today the capital founder Ms. Xu Xin shared sharp insight, as a good investor how about enterprise bigger and stronger she said: "no medium-sized enterprises on the Internet, you need to do bigger, or out". Entrepreneurs must first see what others cannot do, do the pioneer category, when the opportunity comes to life running.
How can the enterprise GET BIG FAST (bigger and stronger)?
First, it is the first to subdivide the market category. We have always said that the opportunity of category is very important. In China, the middle class has been formed rapidly, and the way of life has changed. There are many opportunities for this category to see if you can grasp. Liu (Liu Qiangdong) the best thing is to do two things, first, the rapid expansion of the category, the things you say before him with Adam excellence, sell book audio products, but to expand the category is Liu first; and a Liu is the first self storage and logistics distribution. When we say we do not rival heavy assets and moving things we don't do things, but to see the old Liu, is actually very simple, consumer demand, 75% customer complaints from one thing to the logistics is large, the speed of delivery, delivery of various packaging experience is very poor, so Liu decided to stick to build logistics, it should burn a lot of money. But both of these things decided the status of today's capital.
The founder of the most bull is to see what other people can't see, you do it first. We have been studying the first of the industry. We tracked the first brands of those categories in the United States in 20s. Are they still there 60 years later? Is it all right to live? The data prove that 25 first, 21 are the first ones, and the remaining four are three, which is second, so once you have formed the first category and occupy the consumer's mind, your good life is very long, your threshold is very high, and the moat is very deep. But doing it first is more important than anything. Our previous investment NetEase after much suffering, when the investment is five dollars a share listing after the first round, the Internet bubble burst, the survey by the survey, competitors every day and say not to do business with the company, he was going to die, team go splinters. But Never mind, one thing Ding Lei is thinking about others thought, the network game, I remember the most difficult time in 2000, the Internet bubble burst, when the board of directors meeting five hours especially depressed, when everybody said to the East West to sell, but I am against. I say that we are all in the low valley, the advantage of the low valley is that it can not be worse, and then on the way to heaven. Ding Lei, a man, has a killer perception, and he can see what others don't see. We finish the board of directors asked him to eat seafood, Ding Lei said today is my thirty birthday that night, he told me that there are two dreams, one to do the best online games, second for shareholders to earn money, then we lose a lot of money, 5 dollars a share in 30 dollars, did not sell that bubble has fallen to 8 cents, suspended for a long time. But because he saw what others could not see, he played the game first. Later in 2003, when he came out and earned money, he was named the richest man in China by Forbes.
When the opportunity comes you rush to give his life. The first time I met with Liu in 2006 October, 10 o'clock in the evening meeting, about two in the morning, two things struck me, one is the person is honest, there is not a penny advertising, monthly sales growth of 10% over last month, what is it? It shows that the opportunity of class is coming, which is not done by people, not by management, but by the coming of opportunity. What are you going to do at this time? To give his life a rush, so Liu was two million, I gave him ten million. When the chance comes category you must give run, run fast. When will you be safe? We used to think we were 30% to 40% of the market share, more than second two times and you are safe, then we feel for the number of Internet is wrong, Internet lethality is very strong, the monopoly benefit is very large, low barriers to entry, but the bigger the threshold is very high, once bigger, your moat it is very deep, so you need to rapidly expand, and we feel especially platform class enterprise, basically to achieve more than 60%, that is 60% to 70%. The Internet is very cruel, as Bezos said, in the Internet, there is no medium-sized enterprise, you either big or out. The first to fight with the second in the price war, the third first died, the rest did not know wher to go, so this is a very cruel industry.
It is strange that in the Chinese, that is in the United States as long as there is a good idea investors swarmed, they do not cast into the first, he will not vote, China is not the same, as long as there is a Idea, one hundred people rushed to get the money from the first to the 20 place, get the money he can't beat the gang you, but he always can distract you from a market, the war stayed longer, fight for so long time group purchase the last two, a U.S. group, a public comment. The business has taken a lot of money, I don't want to tell the name, a variety of, and finally how many really live? Jingdong, Ali, vip.com still can, other platforms are really hard. So I think you must lay down run, as long as you don't have to that point, two times larger than the second to 60%, 70%, you are not safe, because the amount is very small, incremental, ready for a surprise. Remember when we cast potatoes, think (Wang Wei) is a very insightful, consumers feel, he was the first to do, he did time not later than Youtube, but is thought to come to a vote after the end (Victerku), very cattle, execution super, is a decision on the throttle or brakes, throttle him up, we hesitated, a year after the river changed, potatoes into second, with the merger Youku, we thought the first second, the time should be to enjoy the profits, the results came as Iqiyi, continue to play.
So I think at the very beginning, when you start a business, you should take the first time to eat a piece of food. You don't need to take care of other things. You make a market segment and do the best thing. What is the best thing about Jingdong? Delivery is fast, what's the best category? 3C, if you live 3C and achieve the ultimate goal, you will win. After that, you can add countless things. Vip.com is famous for its discount. This is the best thing to do. Three squirrels sell Meng.
Thirdly, choice is more important than effort. We have been looking at all kinds of business model in the category selecion in line with the electricity supplier to sell is the same, all consumers to buy things that are first class brand products like fresh, consumers have to buy to Darunfa, Yonghui, WAL-MART, Taobao to buy clothing, must go to 3C to buy appliances, before May Suning, Gome, now Jingdong. That is to say, in this category, the line and line are the same.
In this process, fresh is hard to do. Amazon's cattle company is also a city, a city is slowly doing, burning money is burning. This time, clothing is already Taobao's world. Appliances must be Jingdong, overseas buyers are playing. ?How do you cut into the market as an entrepreneur? How do you cut into this category? This needs to be paid attention to.
There is a lot of people who are entangled in self-management or business, and this time you want to see more accurate than others. We think that the standard things are self do better, but what to do can do the long tail mall, is the platform, the long tail of the things you can not afford to eat is chowhound, like clothing suitable for the platform, but as Jingdong do standardized things of self is very good, like milk powder, 3C.
Besides, do you do subdivision or whole category? This is what we particularly like to study, that is, consumers, what things can be subdivided and what products can be done? One is to look at the frequency of one order model, see also user flow rate, in fact, we see a lot of shoes (Zapol) is very arrogant, service super good, buy a pair of shoes he gave you three double service, it is well, but why the company was forced to sell that is because the shoe, Americans buy three times a year, Chinese bought two times a year, the frequency is not enough.
The other is the order economy model. I have seen all kinds of products. The market is large. China has entered the aging rapidly. Isn't it good to sell drugs? Why can't the medicine be done? Very simple, the frequency of not enough, there is a problem is that he sells the medicine to take the medicine immediately to get one or two days, he could not wait, there is a sale price, I today, shipping, three hundred pieces of mail bag he was not bought, he was forty or fifty dollars to buy drugs, warehousing, logistics cost as can't afford to pay.
So many O2O, how to locate in the end?
You may see a variety of O2O, one of the largest category of fresh is very difficult to do business, because the entire logistics distribution is very difficult, finally is to rely on the store, we feel like can not afford to help Liu Dou basically. But I think there may be Chinese self storage logistics, Chinese unlike America, the United States China dispersed population, the population density is very large, and the 85, 90 is heavy Internet users, this group of people born Indoorsman, Indoorswoman, this group of heavy Internet users wher they are. What they are in love buy online. These users' way of life brings us the possibility of O2O.
The key to the enterprise strategy is to make a good price war
We all say the strategic strategy, in fact, I think the key to the strategy is to set the price right, and the Jingdong will start the price war at the beginning. I remember particularly well that the growth rate of the Jingdong dropped from 200% to 70%, and how did I say how fast it was going to grow? Because there is a company, Jingdong sell anything he is cheap 7%, Jingdong's Maori only 5%, he 7%, Jingdong will lose. Consumers are not loyal to see who is cheap to go there. Then I will discuss with Liu, I said competitors hit you, if we do not fight back, he tasted the sweetness, he must grow up, grow up you have to hit him, but take longer and cost more money, so you want to play the price war early, the competitors in the strangled in the cradle and don't let him taste the sweetness, he is the best counter price war you are playing, he not taste the sweetness stopped.
There is also a threshold to reduce the first attempt by new users. We were especially envious of Dangdang, with one million users, and our Jingdong was only 200 thousand. We interview the user, the user says Taobao goes every day, knows Jingdong, but does not go every day. Because the price of the Jingdong is so cheap? Really? He was doubtful. How do you dispel consumer doubts? The first is the word of mouth, but the word of mouth is very slow, a pass one, then the customer base is not very big, second dozen TV advertising, also not so much money. So we reduce the price of the customer and reduce the threshold of the first attempt by the new users. The delivery of the Jingdong is so fast that the user will buy second things right away. So it is very useful to reduce the first trial threshold for new users.
For example, wher do you see your recent share of the economy and the share of the economy? How do you not try to know the dro or the fast? You have to spend money to educate users, so the best way is to put the user side subsidies, there with businesses, although very simple but very useful, money can make the world go around, users see so cheap, hit a taxi for five dollars, please sit down. And when it is posted, tell you not to stick out once, when the paste is to be done a few times, consumers will be used to try. So when new things come, subsidy is a very useful method, although it is very simple and rough, but it works, that is, who has more money.
In addition, you need to play a combined boxing. Everyone says WAL-MART is cheap. Actually, he is low everyday, but his gross profit is not low. He is playing a combined boxing, fresh is eyeball product, dry goods are high profit products, but why he is not working now? Because the dry cargo Internet have been taken, the rest is not to make money to buy smuggled goods, all the old lady, because young people don't cook he didn't go to WAL-MART, Carrefour to buy fresh.
The founder is so busy, what should be the most busy?
Actually I think it's the 28 law. 20% of the time has done 80% effective things. Most of the time is wasted. As a founder, you have a lot of things to do. What is the most important thing for you to do? I think the Internet is the key to the product, and the product has always been the soul of the Internet. How can the company of the Tencent be such a cow? The incumbent employees are very popular, because their products are absolutely the best. What rights do they have to release? only one right is the product experience. He is the chief experience officer himself. He is going to experience products for seven or eight hours every day. They give an example of how they made a free Email at the time, so a new product, the pony personally put the more than 120 brother details of the proposal, and their management is very flat, and the investment division product manager directly to pony elder brother, not a lot of middle layer. The product is the fate of the company. If every level of reporting is discounted, or the following people can't directly push this thing, you can't do well, so the boss must manage the product himself.
You see us three squirrels, the boss every morning to see two things, one is the user evaluation, one is the sales ranking, he is not very hard, three years to achieve 2 billion this year, people are tired, he is very handsome, because he caught the key things. You want to ask me, if two founders, one is a product gene, the other is a sales gene, which one do you choose? I will choose product genes, because sales and marketing can hire people, but the concept of products and the insight of users are hard to learn only by founding talents.
How does the boss solve the firm but not the performance of the company
Sometimes I think Jingdong very cow, from 50 people to seventy thousand people, every day there was like extremely excited. How do you keep a big company like this passion?
First of all, it should be quite flat, the report can not exceed two layers, the company should be user oriented, the user said the calculation. Now 85, 90 after the bad tube, light money does not work, they want to bloom, how do you let users bloom? On the one hand, let him blossom on the other hand to take off the white rabbit. Value, performance and good staff is a star, you give him a lot of money, a lot of commission let him help you score, you have to spend a lot of time on him; performance, value is not good man called the dog and kill; and good performance with 20% to 30% of the sales revenue, but he ate kickbacks, cliques, this is called the dragons, you want to high-profile kill him, the best lunch time when all employees face to take him away. The best of the two companies, HUAWEI, Lenovo, every year they send some kickbacks to prison staff, is the monkey, you have to dare to do such moral illegal things, I will send you to jail.
But most of the boss's biggest headache is that he does not know how to solve the problem of the small white rabbit, their staff is very good, hard work is not performance, the small white rabbit everyone does not move him, the small white rabbit will become a big white rabbit, he brought the people down the whole level is not enough, the quality of people, there is a because he has a short board, you always take your time to fill in for him, so take your time spent. The worst thing is most of the staff they belong to one type, if he saw the stars have improved and wages plus he will become a star, he saw the rabbit also grew up he became a small rabbit, so this time we want to get rid of the small white rabbit. If an entrepreneur dare to take a small white rabbit, he can't grow without bottlenecks. If there's a lot of small white rabbits in the company's heart, he will encounter bottlenecks when he grows up.
about financing: the amount is big, the speed is fast
about financing, in a word, the amount is large and the speed is fast. Now it is a good time for financing. It is a paradise for entrepreneurs. Basically, it's money and people who are stupid. So how long can this money last? How long can I keep this time? In 2007 the end of the first round of investment growth quickly, old money, the second round of financial crisis, Liu found a lot of investors (investors) have a variety of reasons to shirk said gross profit and low loss, anyway, do not vote, then talk about a long time no one vote, finally we don't break down the price. At cheaper prices, there will always be people who voted for it, in the most difficult time we added eight million dollars (bear total) also voted twelve million, took twenty million, the old white hair is dyed, not scared, because we feel that this enterprise what things would not fall. Employee turnover, competitors engage you, knife, will not fall, only one thing will be drained, you have no money, I will die for you, so don't go to a point when you have no money, money can melt the When will thaw money, rather than into the money you need, I don't need financial money, now is wrong, you can quickly melt into the money now, money to finance is the competition, the Internet has to do is to make money, in the process you want to burn.
A dilution of equity, can learn to Liu, he did mind is quite big, something is very important, I think don't care too much about the dilution, the key you want to control the board of directors. In addition, when selecting investors, entrepreneurs should choose some ideas that you can identify with, hold them for a long time, and increase money when you are in trouble. He doesn't look at the short term. He looks at the longer term.
Finally, I think, as an entrepreneur, we hope you can dare to innovate and dare to be the first to eat crab, and become a pioneer of category. Don't be afraid of failure.
Xu Xin, the queen of investment, pointed out that there are four standards for investing in an enterprise today:
1. The market is big enough. Xu Xin, taking Mengniu and Yili, American group and hungry as an example, points out that enterprises with large market size are all entrepreneurs.
2. The pain point is big enough. She thinks this is the top priority. The pain of second-hand car trading industry is distrust, less choice and opaque price, and melon seeds solve these pain points.
Xu Xin mentioned that the mode of second-hand cars of melon seeds is new retail, because retail is not just selling and selling things, but retail depends on whether the first product is very rich, and whether the second price is competitive or third PK user experience. Melon seed efficiency is higher than that of cattle.
3, has the ability to subvert and the opportunity to subvert it is not coming. The seeds of the second-hand car is a new retail model, they do offline advertising coverage, the people of the whole country, remote transactions, this is not the same as the scale effect and brand effect, therefore, improve the efficiency of seeds through cost savings, the first advertising is very cattle, second is after market services and financial services.
4. Team. Xu Xin thought, "the speed of a company is very important, and tough is also very important. In addition, I think there is another quality for entrepreneurs. They never give up. When you are in a difficult time, you can survive, and when you are in the most difficult time, you can put up one hundred million dollars, this is the spirit of entrepreneurship. Sometimes, what is the difference between the entrepreneurs and the bad breath, is the heart strong enough, and the heart is tough enough.
At the conference, Xu Xin also shared some of her thinking about investment. She thinks the super platform is very valuable, the Internet penetration is not high enough, and the future is likely to rise 10 times more. This part is incrementally divided into 10 companies, all of which can be trillions of dollars, so I think the super platform is very strong, because the mobile Internet gives them the ability, the business pattern will change, they have data. The best weapon is the data.
In addition, Xu Xin also talked about the new retail business. She thought the essence of the new retail business is whether the store has the ability to acquire customers, and the online search for traffic volume, online accounting for more than 50%, so that the effect of human efficiency can go up, site selection is very easy. In the long run, retail needs to return to retail in essence is a cost - benefit user experience.