West Street Network CEO Guo Hongchi: Vertical B2C Core Weapon Lies In Controlling Goods.

On July 25th, West Street Network officially announced the first round of financing in the near future, 80 million yuan, its CEO Guo Hongchi said vertical class. B2C Has gradually returned to the traditional e-commerce, and the core tool is to control the goods.

Guo Hongchi, a veteran of the electricity supplier industry, was founded in 2000. Electronic Commerce In 2008, the website was searched for CEO. In 2009, it created B2C "West Street Network", focusing on sports market, and the goal was to build a network version of Decathlon.

Ten years of experience, Guo believes that the era of vertical electricity supplier burning money has gone like a meteor, the opportunity now lies in who can control commodities and create an absolute barrier based on supply chain.

The marketing of a pantomime is forced to surface.

In early July, a website speculated exposure, West Street Network won Yao Ming 80 million yuan investment, caused industry concern. After Jing Yao Ming The broker clarified that Yao Ming was not involved in the investment, but it also made the west street accident surfaced.

Guo Hongchi further clarified that as early as April 2011, the west street network won the first round of financing of 80 million yuan in the venture capital company, but it did not publish the financing information because the company was not ready. After "passive exposure", we have no choice but to publish the truth.

But Guo Hongchi also said that this unwittingly "mime" also let West Street Network harvest a lot of popularity. Then, in July 24th, Yao Ming announced his retirement, and West Street Netcom continued to sell in a way like "reviewing the story of Yao Ming and shoes" and again attracted the attention of a large number of netizens.

　 B2C return to traditional commercial essence

Guo Hongchi disclosed that the 80 million yuan financing of West Street network will mainly invest in infrastructure, such as warehousing, logistics, operation and so on, rather than a wide range of publicity and marketing, especially hard and wide launch.

As users become more and more accustomed to the mode of online shopping, the relevant processes have also formed certain standards. The current e-commerce, especially the vertical websites of B2C, will no longer rely too much on the so-called user experience innovation.

Guo believes that now there are two kinds of vertical B2C: first, marketing promotion without means and cost, attracting downstream users' attention, and gradually improving the carrying capacity, warehousing, logistics and so on of the upstream 0. Two, we should first improve the upstream, and then rely on word of mouth marketing to gradually accumulate users.

"These two modes do not have absolute right and wrong points, but the choice of West Street network must be the latter." Guo Hongchi hinted that the era of marketing oriented burn has passed, and if we follow suit, we will die.

But Guo Hongchi also said that this does not mean zero marketing. But the strategy of West Street has always been a low cost mode. However, some bottlenecks are also encountered. Therefore, we must not exclude certain forms of network launch in the near future.

The core competitiveness of Manchester United, Barcelona and Guoan

The ultimate goal of West Street network is to build an online deculon. Guo Hongchi has confidence in it and thinks that west street network has three other core competitiveness.

1, the core team of the west street network is basically the "bottom" of the search network and the thousand search network. They are familiar with each other, and this is not the same as the other emerging B2C companies.

2, resources in the vertical sector are abundant, and there is a close exclusive relationship with the more than 20 important manufacturers in the sports market.

3, it has an advantage over the relative counterparts in terms of control of goods, turnover of capital, efficiency of capital utilization, and cost of goods.

It is worth mentioning that in August 2010, West Street network became the sole online retailer for United Nations, Barcelona and Beijing Guoan licensed commodities.

It is reported that in 2010, the market size of sports products B2C was around 10 billion yuan. At present, only cool sports have direct competitive relationship with them, and it is very easy to create an advantage barrier based on the supply chain system.

　　 Community-based and mobile e-commerce

Because the location of West Street network is relatively vertical, Guo Hongchi said that in the long run, the most important thing for West Street network is to create a three-dimensional vertical community, maintain user stickiness through the community, and hope that word of mouth marketing will enhance its popularity.

Guo knows that this is a painful process, which may take three years, five years or even ten years, but the future must be the trend. E-commerce will inevitably become a gathering place for sticky users.

Guo Hongchi also revealed that another secret product developed on West Street network will launch a mobile Internet based client in August, and hints that it will be upgraded more than peer products. "This client can not only buy products, but also receive information, and have social functions based on interest in sports."

Guo Hongchi said that a large proportion of the 80 million financing will be put into the field of community-based and mobile e-commerce, so as to seize the opportunity of the blue ocean.

For competition, Guo Hongchi understands this. First, the industry is big enough, and the next five years are still in a period of rapid development. This is not the relationship between them. Second, the essence of vertical electricity suppliers is commodity competition, and the biggest weapon is controlling goods.

It is reported that west street network sales in the first half of 2011 is about 1 hundred million, and the annual plan is 3 hundred million. Guo Hongchi expressed the hope that there will be a tipping point on the West Street Network in 2013. Of course, the premise is that this year and a half must be done well.