Bi Sheng Started His Business As "Le Tao" And Eventually Changed His Shoes.

In 2005, when Bi Sheng, a former Baidu Inc director of marketing, left office, he could not restrain his desire to do anything after a rest. He felt that the subdivision of B2C website would be a good choice.

At that time, as a friend

However, Bi Sheng's first comeback was a failure.

The pformation spent almost 9 months on Biao. During this period, he did not have any income and only relied on the money of the investors.

In the end, he promised the investor that he had to pay his money if he finally lost the light.

I do not know whether this sentence has worked, or the quality of Le Tao has been valued. Investors have not put more pressure on Bi Sheng.

Transformation is very difficult. The most troublesome problem is harmony.

Compared with traditional channels, such as shopping malls, discount stores and exclusive stores, the B2C website does not have more bargaining power among brands, but the former has higher cost of rents and personnel, and websites can compress these costs, giving consumers lower prices at the same purchase price.

It is their own business that brands make their own pricing and the price system is messed up.

Bi Sheng said.

His principle is that as long as the gross profit of the brand is 30%, it can be signed for sale.

Because Le Tao itself does not buy goods, so the demand for liquidity is not high, and some brands are willing to charge a small amount of deposit in the warehouse of Le Tao.

In the view of Bi Sheng, Le Tao is more like a shopping mall than a dealer in a brand.

At first, when Bi Sheng spoke about his ideas with these brands, few people could understand that most of their questions were, "since you said so well, why don't I do it myself?" the explanation given by Bi Sheng is that Yue Tao knows more about the B2C market.

Through unremitting efforts and the booming B2C market, the brand sold on Le Tao has gone from the original 5 to the 39 today. "Nine Xi recently found us to talk about cooperation, and dozens more were waiting to take pictures."

Bi Sheng is very proud.

Although it is necessary to start from scratch, Le Tao does not need to rebuild every link.

The original backstage system and storage facilities developed for toys can continue to be used.

The technical team of Le Tao 10 is responsible for the whole process of warehousing and distribution, and the system that changed N times is still the 1 version.

Because of its technical threshold, Bi Sheng believes that this will become one of the advantages of the company's future development.

In addition to helping administrators find goods faster, the system is also responsible for coordinating a series of operations such as consumer returns, replenishment of suppliers, sales of shoes and goods that can not be sold.

After finishing these preparations, Le Tao conducted an internal test in May 2009.

In September, the website was formally launched.

In the first few months, Le Tao had no market team at all. The media's attention to Bi Sheng became the most direct advertisement of Le Tao.

As Baidu's former chief executive assistant and marketing director, Bi Sheng is very clear about Internet advertising: he will not vote.

According to his previous estimates, the conversion rate of Internet advertising click purchase is 0.3%.

Even for Baidu, the cost of each click is about 1 yuan. For every shoe with a price of around 300 yuan, there is not much profit after packaging, logistics and warehousing. Advertising is not cost-effective at all.

The cost of doing so is that Le Tao's sales growth is not as fast as that of other B2C websites.

However, Bi Sheng was not in a hurry. The consistent impetuous boy was very calm at this time.

Yue Tao is more willing to cooperate with other related enterprises to promote, such as providing coupons for Mobile Corporation's lottery activities, and giving coupons when opening the Bank of communications.

Such promotional activities cost little, but compared with advertising, they can bring more practical attention and sales. Now, sales from these promotional activities account for half of the sales of Le Tao.

Bi Sheng believes that a good shopping experience will allow consumers to promote the fun.

However, the effect of word of mouth marketing is difficult to measure and predict.

In contrast, competitors' "Le Le buy" gained more consumers' cognition and attention through a large number of advertisements on portals.

Due to the provision of free delivery fees, the logistics cost has become the most expensive place for Le Tao. Every single sent out must be subsidized to the logistics company by about 10 yuan.

Even so, Le Tao has no intention of building logistics itself, they are more willing to invest in Cye.com.cn storage facilities.

In June 8, 2010, Le Tao got financing from Tiger Fund and Tak Tong capital of 10 million US dollars.

Three weeks later, warehousing and distribution centers in Shanghai, Guangzhou, Wuhan and Shenyang have been completed in succession.

Coupled with the 2000 square meter warehouse in Fengtai District, Beijing, Le Tao first completed the supply chain.

For Internet Co, brain drain is a big problem, especially in small companies.

In addition to the potential charisma, Bi Sheng's chip is the company option, which is similar to that of Baidu, including the front desk, and every employee has an equity interest.

Every month, Bi Sheng has to approve the amount of work done by employees. If completed, it will increase the number of shares appropriately.

The company's publicity column is still hung with photos of everyone and their own brave words about the future.

Bi Sheng believes that the so-called "sharing weal and woe" is the reason.

At the door of Bi Sheng's office, there was "brother" posted by his staff.

The "one brother" works nearly 16 hours a day and is always in a state of excitement.

In this highly competitive market, it is only by knowing the information of the market and competitors as soon as possible that we can be prepared for the future.

Every month, the four senior founders of the company, together with the heads of various departments, have to hold a meeting with a time span of more than 24 hours, and the "most vigorous 48 hours".

As a result, all the attendees got down. Only Bisheng spoke about the recent situation very high.

Founder: Bi Sheng

Age: 35 years old

Post: Baidu assistant and marketing director

Source of funds: LIAN strategy source fund

Amount of funds: $2 million

The biggest difficulty at present is not advertising, but there is no way to promote it.