Hu Chao: The National Chain Retailers Of Yue You Baby Are Changing For Consumption Demand.

In February 22nd, Beijing Jing Zheng exhibition, a sponsor of Beijing Zheng Ying baby exhibition, held a pre exhibition high end industry fellowship.

In this form of easy fraternity, Hu Chao, chairman and CEO of the exhibition, an old friend of the exhibition, talked about the forum.

Hu Chao has completed three rounds of financing, amounting to more than 50 million dollars, and she has successfully realized the pformation from a pure e-commerce company to a modern retail enterprise.

Like many returnees, Hu Chao was confident of the Internet after graduating from University of San Francisco. When people saw so many of the shops of Yue you baby products, they almost forgot that le you was actually a very pure e-commerce company.

In 1999, Beijing Le you da Kang Technology Co., Ltd. was established and launched the website in January 2000.

However, people do not calculate well enough. When Hu Chao was full of vision for the development of e-commerce, the Internet bubble came.

The more severe test is that after a period of time, there was no deal.

For the Chinese at that time, the Internet was still a very small matter. At that time, netizens were mainly college students, not parents of infants and young children.

Although she had won $3 million 400 thousand in investment in 2000, Hu Chao and her friends were in a difficult position at the beginning of their business because the model was too advanced.

How to stick to her original dream and let her live, is the question she must think about.

Multi channel exploration

After the Internet bubble, Hu Chao realized that e-commerce is only a channel rather than a real business model. The core is retail. Since the e-commerce mode is not yet mature, it is necessary to generate zero value sales through physical means to generate commercial value.

You need to learn how to land.

In the reality of the slow sale of the Internet, Hu Chao began to find a way out.

In order to land, in 2004, he opened the first store in Beijing.

In the process of running this store, a very interesting thing happened. This is also a story that Hu Chao often told people.

Because the first entity shop has limited traffic and sales have been on the go, Hu Chao tried to distribute some product publicity pages, leaving a telephone on it, and someone really called to say that he wanted to buy products on the publicity page.

After receiving the call, the employee will tell the customer to place an order through the website.

"At that time, our customers might call in and hope to place an order.

In the process, we tell them, I am really sorry, we can not accept telephone orders, you have to order from the Internet.

But there are still some consumers who don't go online.

So you directly increased telephone orders.

After that, Yue's publicity page became thicker and thicker, and the publicity page became a pamphlet. Later, directory sales were simply launched.

Hu Chao spent 1 years studying catalogues, including how to do content, how to distribute, and how to interact with the Internet.

After such a process, Hu Chao gradually found that providing customers with satisfactory services is the most important thing for you to do.

The "Trinity" multi-channel sales mode of network + entity store + directory sales is based on this purpose.

Generally speaking, a girl after 80 is pregnant, very instinctively, is to check the information on the Internet.

At this point, the network has played a huge role.

Next, when the family builds the baby room for their children, the mothers are willing to go to the physical store to see the real thing. At that time, the physical store has become the place that the parents like to visit.

After the birth of their children, their mothers were in a hurry and had little time to go shopping in the physical stores. At that time, they preferred to buy things with a catalog.

Three different sales channels, three different periods of parents provide very good service.

Of course, "

"The supply chain of the pregnant and infant industry is still relatively conservative, and the supply chain is very fragile."

Hu Chao said that many suppliers did not recognize e-commerce at the very beginning.

After having a physical store, suppliers gradually began to trust their friends, and their confidence in online sales also increased.

Grab cake with department stores and supermarkets

The industry seems to have reached a consensus that the baby industry is a sunrise industry.

16 million of newborns in China are the numbers they often mention.

As for the children's professional store such as Yue you, they are actually eating this delicious cake with department stores and supermarkets.

With the improvement of people's consumption level and the enhancement of service requirements, consumers are no longer satisfied with the sales mode of department stores.

"Because in the Chinese department store industry, many times are set up by manufacturers or agents, and everyone says their products are good, but they lack the overall marketing and sales promotion."

Hu Chao said.

While another common selling channel for baby products is supermarkets, there are basically no service staff in supermarkets, mainly tally clerks.

"So there are two problems in supermarkets. One is that there is no real sales and services, and that there is no systematic arrangement of goods, which leads to the inconvenience of customers' purchase."

According to Hu Chao, it is in this situation that people's demand for specialty stores has been strengthened. This is also the premise for the rapid development of many pregnant and infant children's stores in recent years.

However, there are not many enterprises that are truly national chains.

Yue you has gradually moved from Beijing to the whole country.

Up till now, there are more than 200 chain stores in 9 cities across the country.

Over the past two or three years, Yue you has been developing two to three times faster than the industry.

We will adhere to the vertical B2C enterprise, and we will deepen the maternal and infant products industry through vertical development, but not follow the trend of "department store".

The future plan of Yue you is to become a leading national retail chain in the children's market and a national consumer goods supplier.

Face to face

Reporter: do you have three kinds of sales channels, are they closely linked and have good interaction?

Hu Chao: in fact, our "Trinity" has highly integrated resources in advertising and product sales.

Supplier's products can be sold on our website, and can also be sold through catalogues. Many of the expenses of our catalogue are borne by suppliers.

In this process, catalogues and networks played a good role in advertising.

From the point of view of their own marketing, these three sales channels themselves also have many interactions.

There are many commodities, including sales promotion, which we can do through online and offline interaction.

For example, you can send some shopping vouchers in direct outlets through the Internet, so that you can direct some customers to direct stores.

The direct store is very different from the network. The store is very vivid, and there is a real interaction between salespeople and customers.

This interaction can help us complete some relatively high margin merchandise sales, because some products need someone to introduce, need real interaction to complete the sales process.

From this point of view, the three channels can also achieve a very good combination.

Reporter: in the future development, what kind of sales ratio will there be in the three channels of physical stores, network and catalogue sales?

Hu Chao: with the change of people's living standard and after 80 and 90's gradually enter the child-bearing age, we feel that this proportion will be adjusted.

But at present, the development of the "Trinity" mode is the fastest way to occupy the market and provide satisfactory service to customers.

Reporter: what is the biggest change in this industry over the past decade?

Hu Chao: I remember that when we first participated in the exhibition of pregnant baby at Jing Zheng's company, we would set up an exhibition booth, hoping that the manufacturers and suppliers could find us quickly, but at that time, the annual exhibition would be very entangled, laborious and costly, and no products could be exhibited. After a few years, we realized that we should not visit the booth.

Since then, we have no longer set up our own booths, but we have gone to various booths to share with suppliers.

The road of Yue you and many other enterprises are different. At first, they developed into the "Trinity" multi-channel operation with the dream of the Internet.

In the past ten years, we have taken one step at a time, capturing the real needs of consumers, and falling from the line to the underground to see which way can better satisfy the needs of customers, and also taste the benefits of "Trinity".

Over the past decade, she has witnessed the development of the baby industry, and has seen the development of the baby industry from an unknown industry to a potential and promising industry.

Over the past decade, my biggest feeling is that the most important thing to do is to be down-to-earth, perseverance, embrace the dream and stick to it.

Reporter: in recent years, the capital market has approved the multi-channel sales form, and Yue you has been favored by overseas capital markets many times.

For you, is it a wolf or a chance to get the venture capital?

Hu Chao: well done, that's the chance to come. Bad operation is the wolf.

There are two possibilities.

It is easy for a wolf to fall in love with a sheep. It is not easy to make a sheep fall in love with a wolf.

After the analysis, we found that there are many particularities in the baby industry.

The supply chain of this industry is very fragile. Many suppliers are self-employed, and do not have much capital operation capability. There are many difficulties in supporting the development of a chain store by such a supply chain.

In other industries, such as Suning, Gome and other electrical appliance stores, they often do not need too high cost to open a store, and suppliers will bear a lot of expenses, which supports the rapid development of electrical chain stores.

If the baby industry wants to reach the scale and advantage in a short time, it will be very slow without relying on capital.

Therefore, we need to grasp the industry opportunities and form a scale advantage in a relatively short time.

Introducing venture capital is very helpful for chain enterprises.

Foreign capital is willing to invest in chain retail business because China's chain retailing industry has lagged behind compared with other countries. China has vast territory and abundant resources and has good market potential.

After WTO, chain retailers began to enter the fast lane, and the vertical chain enterprises just started, just as foreign capital was interested in it.

The willingness and opportunity of both sides contributed to the joint efforts.

Of course, the introduction of capital has also contributed to the pformation of Yue you, and has greatly promoted the management, reengineering and management system.

In the process of dancing with capital long sleeves, enterprises have also made considerable progress.

I look at capital in a very positive way.