"Shop 1" Yu Gang: "Online WAL-MART" Is Rising.

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In July 11, 2008, "online supermarket" 1 shop.

In September 2010, the number of registered users in shop No. 1 exceeded 4 million, and sales increased by 30% over the same month.

In a short span of two years, the sales volume of shop No. 1 has increased 100 times, and online sales have reached over 60 thousand kinds of commodities. It is expected that by the end of this year, about 100000 kinds of products will be sold online, covering ten categories: Food and beverage, beauty care, kitchen and bathroom cleaning, maternal and child toys, household appliances, electrical appliances, clothing, shoes and hats, office supplies, nutrition and health care, and services.

Shop No. 1 has been praised as the fastest growing company by the industry. In September 10th, it was awarded the title of the 2010 Top Ten Internet operators at the seventh Internet Commerce Conference.

"The future blueprint of this field has attracted me deeply."

Yu Gang was a seat professor at the school of management of Austen University in Dezhou, and founded Caleb Technologies Corp in the United States. The aviation management software developed by Cole technology is adopted by almost all major airlines in the United States.

"I was found by Amazon Co headhunter during my visit to China Europe Business School, and I joined Amazon through his high-level lobbiing. He served as vice president of global supply chain, managing procurement, inventory, distribution and storage capacity, helping Amazon build the next generation supply chain, and supporting Amazon's excellent acquisition.

Later, he became the vice president of DELL global, which is responsible for DELL's global procurement and logistics in the Asia Pacific region for us $18 billion.

Online shopping has become a strong supplement to the traditional retail market, and the importance of network as a retail channel is gradually recognized by more and more enterprises.

"I and CEO Liu Junling are aware of the great potential and opportunities that this rapid development brings, and we also see the value that this new business model can bring to society."

The experience of working in Amazon has been deeply attracted by the future blueprint of this field. "I think e-commerce brings benefits and convenience to people. In China, e-commerce can really change people's lifestyle and improve the quality of people's lives."

In March 2008, Yu Gang and Liu Junling founded the Shanghai Agel Ecommerce Ltd (1 store), the first time to put forward the concept of "online supermarket" in China.

"Through multi research, we decided to start with the most comprehensive B2C model with the greatest risk to form differentiated features.

"Shop No. 1" puts forward the concept of "online supermarket". Our products are guided by consumers through the centralized purchasing, centralized distribution, centralized paction services, high credit, low cost, low risk and good online shopping experience.

The concept of "online supermarket" in store No. 1 is not locked in a narrow specific industry. Instead, it puts forward the idea of "home" as the business theme, and sales covers all kinds of commodities that are related to household interest.

At the beginning of entrepreneurship, how did the No. 1 store get its source of funds?

Yu Gang: when I first started my business, it was the money that I invested with Jun Ling. Later, relying on a complete business plan, I got the approval of investors quickly, because of our integrity and reputation in the industry, and successfully introduced venture capital two times.

What are the incentives for consumers? Please give an example one or two.

Yu Gang: on our website, we have "integral area", which can provide consumers with integral points for shopping enjoyment.

And we will launch "integration spike" and other promotional activities to attract consumers to continue to buy enthusiasm.

Moreover, we also have "1 shop forum" to maintain interaction with consumers. Consumers can get more points through "inviting friends to participate", "sharing purchase experience", "merchandise purchase" and so on.

There are also shopping unions. People who have the same hobby can gather together. Through this platform, you can share your shopping experience, and quickly understand the activity information of shop No. 1. When the group buys a certain amount, you can enjoy a certain discount together.

Unprecedented online supermarket

When he first started, Yu Gang and Liu Junling encountered many problems.

"For example, food has a shelf life. In order to ensure and control the quality of food, we have developed the shelf-life system and applied for a patent. For example, some products are very strict in pportation requirements, easy to breakage and fragile, so we tried different methods to ensure the most quality packaging for different products. For example, when we first started, we used the way of line marketing, printed many DM, but the cost was too high, and the rate of return on investment was not ideal. We immediately realized that the problem changed the train of thought. Later, cooperation with some portals and well-known community website has been very effective."

As an online supermarket, there is no precedent for shop No. 1 to learn from it. "So we should try to find the right way to cross the river by feeling the stones."

Making mistakes is not terrible, but we must learn to find problems in time, correct mistakes in time, and find the right direction in time.

Yu has visited many important software vendors including SAP and ORACLE, but he found that some management consultants of existing enterprise management consultants are hard to really adapt to the peculiar business mode of "online supermarket".

"So finally I decided to develop the backstage supply chain management system myself.

Build a backstage management system which has the character of "no duplication".

The first employee of the company is chief technology officer.

Shop No. 1 has independently developed a number of leading international e-commerce management systems, including supplier management, category management, procurement management, inventory management, warehouse management, distribution management, customer relationship management, marketing management, etc., and has applied for a number of specialized technology in China and obtained 124 software copyright.

What are the criteria for the choice of employees?

Yu Gang: I have a unified view with Gao Ling on the definition of excellent talents. The first important thing is character, of which honesty is the most important. It is not only reflected between the company and its customers, but also between employees and business partners.

We require the executives of our company to share the same values with us, and at the same time have excellent professional qualities and comprehensive skills, and we are full of entrepreneurial passion as well.

Although there is a shortage of talents in the field of e-commerce, the advantage of "No. 1 shop" lies in the concentration and attraction of talents.

The core departments of the company's marketing department, customer service department, technology department, product department, logistics department, warehousing department and so on are from excellent, Dangdang, Jinshan software, Alibaba, DELL, Sohu, China Telecom, CCTV, etc. they have excellent professional quality and comprehensive skills, and are full of entrepreneurial passion.

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How does No. 1 store cooperate with many websites?

Yu Gang: we have formed strategic partners with several famous portals and search websites, including Tencent, NetEase, GOOGLE, Alipay, etc. these successful modes of cooperation have optimized our marketing methods and improved our ROI (ROI).

Take the cooperation between the previous and the skyline as an example, Tianya brings the flow, popularity and high quality customers to shop No. 1, and the 1 shop brings more stickiness to Tianya users. For example, many people's livelihood and unique products are provided to Tianya users, and crowned with "Tianya 1 shop", so that users can not buy anything from the horizon, which means that the supermarket has opened a supermarket. This is a win-win situation, and the two sides share the benefits, so that SNS also has a profit margin.

Supply chain management and supplier management

"Through this integrated and real-time supply chain system, we can know every customer orders, what kind of state each commodity has, where and when each order is in, and so on."

At present, the logistics distribution of No. 1 store is mainly based on independent distribution. "We have 25 thousand square meters of storage centers in Shanghai and nearly 20 distribution stations distributed throughout the city, and warehouses in Beijing and Guangzhou have also been completed, which can radiate the whole country.

Our farthest goods can even be sent to the Antarctic. We are the designated suppliers of Antarctic scientific expedition materials (food and daily necessities), which provide a number of container life items annually for the Antarctic research mission.

Shop No. 1 is Shanghai's marketing center and distribution center of its headquarters and Yangtze River Delta market. Nanjing is the location of its R & D center.

At the same time, branches and warehouses were set up in Beijing, Guangzhou and Shenzhen, which are responsible for logistics distribution and marketing services in Beijing Tianjin Tangshan and Pearl River Delta.

In the next two years, the division will be set up to the 50 two or three line cities in the country.

Shop No. 1 takes "family needs" as the target market, and sends products directly to consumers through centralized procurement and unified distribution. This requires a lot of strict screening and management of suppliers.

"We first formulated a series of indicators, focusing on brand and quality, as well as timely delivery and after-sales service.

On this basis, the supplier's internal management is inspected, the supplier is evaluated by the balanced scorecard, and the suppliers are evaluated through four dimensions, including price, quality, delivery time and service. In addition, the payment terms, the replacement principle and other additional costs (such as logistics and ordering costs) are supplemented by weighting measures.

"In addition, we should also examine the turnover, business process, management team, financial stability, information technology system capabilities of suppliers, and so on. The goal is to ensure that the supplier's capabilities can be consistent with shop No. 1, so as to ensure truly enhancing customer experience and creating value for customers."

"With the rapid growth of our procurement, our suppliers have also developed from two tier agents to first class agents until they have developed direct suppliers."

"Now we have formed a partnership with a number of well-known brand manufacturers to ensure continuity of quality and supply and reduce the cost of procurement to a large extent."

From the beginning, the choice of suppliers was very cautious, making the return rate of shop No. 1 less than 1%.

1 shop trial run "day to send" business, now feedback?

Yu Gang: on the day of trial operation in Shanghai, the feedback from consumers is very good.

We are also planning to introduce a detailed daily delivery service to provide our customers with more humane convenience services. As long as the order is placed before 11 a.m., customers can choose to send them to the company according to their personal circumstances or to the home in the evening.

Shop No. 1 is different from the same kind of website. What are its advantages and core competitiveness?

Yu Gang: first, the system, including our front desk system: product display, order receiving, order processing, collection methods, and background system, which is the biggest difference between different websites, which involves supplier management, procurement methods, inventory management, inventory management, sales management, market management, market launch, as well as finance, warehousing, distribution and so on. This is your network worth the entire value chain.

Second, warehousing, now the 1 store has been expanded (set up branch and logistics center) to Beijing, Guangzhou, Nanjing and Shenzhen and other key cities, expanding to more than 50 domestic two or three line cities in three years.

Expanding locally and building local warehouses can better serve customers.

Third, procurement, we have excellent procurement team, strict supplier certification, quality control, and ensure that suppliers can deliver goods to us in time, to ensure that we are not out of stock, and as the number 1 stores grow bigger, suppliers, products, quality assurance and other processes become very complex, but I believe our team can shoulder challenges.

Fourth, distribution, we have our own professional distribution team, and the distribution of goods is mainly self distribution, so that the quality of distribution and service can be guaranteed.

So far, we have compared our own distribution with the more than 20 third party distributors we have managed, including multiple indicators, including the success rate of distribution, timeliness, customer satisfaction and so on. Our 1 shop self distribution is among the best.

Fifth, CRM, customer relationship management.

Because we have a large number of customers to purchase information, through the advantages of the Internet, we can track customer search information and purchase information, which can help us establish good customer behavior patterns, give customers precise marketing and personalized services.