Zhao Yingguang: Can Internet Brands Not Break The Curse Of Volume?

At the 2016 billion state retail conference in the future,

Zhao Yingguang, chairman and CEO of the electronic commerce group, published the title "online peaking", "under the line" and "Internet".

Can't break the curse of volume?

He pointed out that online traffic dividends have been bottomed out in 2016, and thousands of thousands of people are constantly changing, resulting in a huge number of merchant traffic fragmentation costs.

When it comes to how to break through the problem of online brand, Zhao Yingguang puts forward three directions: first, make the most of your main brand and break the ceiling of the industry; second, combine online and offline, open physical stores; third, do eco business operators.

According to the world clothing and shoe net, the 2016 billion state retail conference was held on December 19th -21 at Baiyun Wanda Hilton Hotel, Guangzhou.

A total of over 2000 well-known executives, experts and scholars and media representatives from the domestic and foreign electricity providers attended.

The theme of this session is "new species, new rules and new business", including two days of main forum, five sub forum, business manager's night, and Horseshoe Club and billion state madman Association.

It is noteworthy that, at this session, the electricity supplier industry is well aware of

Jingdong, vip.com, Dangdang, Amazon and other faces have not appeared, replaced by the new generation of retail platforms and brand camps, reflecting the business sector is seeking to break the Bureau, looking for new growth in the industry mentality.

(warm tips: This is a preliminary review for shorthand, to ensure the original intention of guests at the scene, without deletion or error, please understand.

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The following is the record of the speech:

Zhao Yingguang: there are still some small regrets about standing here today, because it's a new species. What's new this year is new, new retail, new finance, new manufacturing, new technology and so on.

Han Du is also one of the new species. Although we were the first group of Amoy brands in the first place, these years are constantly evolving. What is the new species? We first proposed the concept of "two levels of ecology" in the first year of the industry. After a year's development, our two grade ecological operators basically went through this road, and today we share it with the two level ecological operators.

In fact, it has not been easy to do Taobao, Tmall and electricity suppliers for so many years. The whole process is constantly evolving. New rules are coming out every year. New people come out every year. Every year, old people are eliminated, and it is not easy every year.

In fact, as an Internet brand, Taobao had it in 2003. In 2008, with Tmall, a large number of Internet based brands appeared every year. In fact, there are not many special brands that can go down and develop well, but there are still some regrets.

By 2016, we found it particularly difficult to analyze from all angles, including two aspects of traffic flow: first, the user from the incremental market to the stock market; the two is that the brands that we can go online are online. This year, Ali and Tmall stop investment. What does it mean? Ali means that all of them can come up, and there is no need to open up the interface.

In terms of "double eleven" data, the number of search hits and annual traffic is increasing, but in fact, the key indicator of search hits is not much growth. The total number of merchants has not increased significantly or even decreased, and the whole internal quality has undergone great changes. A large number of small and medium-sized Taobao brands have been eliminated, including traditional brands, including international brands.

From the age of PC, thousands of thousands of technologies have been evolving and platforms are being deployed on a large scale.

Thousands of thousands of faces in 2015 and 2016 have made breakthroughs, which are very much related to intelligent terminals, because thousands of people are constantly changing, resulting in a large number of merchant traffic fragmentation costs are particularly high.

First, because thousands of faces are an inevitable trend. We believe that the ceiling of a brand under the same category is not so high, and only a few special cases can break through. In most cases, the single brand ceiling is lower than that of the same brand under the same line.

Second, the era of brand is over, from extensive operation to fine operation.

Third, the absolute number of Internet brands is still increasing. Especially for some non-standard products, the trend is increasing gradually, rather than a decreasing trend, and the competition is becoming more and more intense.

Fourth, at this time, there will be very serious contradictions. Because the ceiling is relatively low and the scale is relatively small, but because of the fierce competition, the demand for products and brand operation is getting higher and higher. The contradiction between the two will be bigger and bigger. This is the inevitable trend in the future.

At the very beginning, most of the electricity suppliers were under the pressure of "sparrows are small, and the five organs are all". The pressure is increasing because they can not afford the cost, because you have to continuously improve the quality.

How are we going to break through? What are the differences between our offline retail, offline retail and PC era? And what are the differences in retail in the mobile era? Let's talk from three levels: one is the channel; the other is the product; the three is the content, the content is about the trend of brand communication with the consumer.

The importance of traditional offline channels is relatively large, so we emphasize "location", content and products are not so important, and the first is the importance of channels.

At the time of PC, the importance of channels is not so important, because the alternative channels are actually very limited, but the importance of products and content has become a very important point for brands and retailers to enter.

In the era of mobile e-commerce, channels are still not very much, products are strong, and the tendency of content personalization is more and more obvious.

Personification does not necessarily mean a specific person, but it is called a "personification tendency" and what is "personification tendency". When we introduced products, we only introduced water and introduced nothing else, but in the mobile era, a seller selling water not only introduced water, but also introduced other things, and communicated with consumers at different levels and angles.

First, from 0 to 1, if you take the Internet brand from 0 to 1 as the first step, you make a brand to find your brand positioning, do your product well, start testing, and your brand in this category ceiling, see how big you can be, this is the first step of the basic work.

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Second, 1 to 10, basically you see the future of your category ceiling, the next step is how to develop two paths: first, expand the category, the same category under the expansion category; two is a brand under the same category.

No matter which of them is, what kind of thinking should we have at this time? What do we pursue? What is our pursuit? It is a way to get through the multi category and multi brand system at the back end. By expanding the brand and expanding the category, your bottom layer is not a big brand sharing service system, including customer service, storage, IT, operation and PR communication. After the system can be shared, it will be the second step.

Third, 10 to 100, we are making the third step, we open the ability of booking based on the Internet thinking, pform from brand business or upgrade to eco operator, the word "ecology" is a bit rotten, but it is meaningful in itself. I think there are not many problems in almost ten billion.

Fourth, from 100 to 1000, based on the main category of ecological operators evolved into multi category ecological operators, our Korean capital also has a layout in this regard.

First, make the most of your main brand and break the ceiling of the industry. This needs a very strong ability.

Second, the so-called online, offline integration, open shop.

Third, it is our choice to be an eco operator. We did not do the first two ways. It does not mean that we do not think they can succeed, but we think it is difficult, so we choose third ways.

Han Du is running its own brand of nearly 90 brands, 18 of its own brands, nearly 10 joint ventures and shares, more than 50 of the more than 50 generation operators or services, and at least 150 more next year.

So what we call "two level ecology" is based on the concept of the next generation of retail sales, called branding + two level ecology + ecology.

What is the first class ecosystem? The cat, Jingdong and vip.com include many sharing platforms, which we call the first level ecosystem. The core work is precisely matching, bringing in a large number of consumer flows, matching all kinds of technologies represented by thousands of thousands of faces to the corresponding consumers instead of letting you see the commodities that are ineffective to you, and the main task is to build the infrastructure with precise matching as the core.

What is the two level ecosystem? We are responsible for pformation. After the first level platform matches the flow to you, the two level ecosystem improves the pformation rate of every brand in our ecosystem through the high quality operation of various service providers, including net red, PR and so on.

Based on this direction, Korea has gone some way in this direction in recent years. This year, we have made two levels of ecology. It does not mean that we have been thinking this year. We made efforts to go in this direction. We made a brand in 2008 and made a breakthrough in 2011. We are faced with the next step of breaking through the direction. We are single brand and multi category, or the same brand, so we chose to start making new brands in 2012, made 2, made 3 in 2013, and made 10 in 2014. We have found that this road is valuable, so we have made 10 brands, and 7 have developed very healthfully, and 3 have been suspended for a long time because of various reasons. The success rate is still relatively high in the year of 2011. In 2011, we have made 2 brands.

It began to open in 2015.

From 2012 -2015, what have we done? We operate a brand to operate more than ten brands, and continuously create two level platform service capabilities, not only to serve 1 billion brands, but also to sell millions of brands in one year, which is very elastic.

For the adjustment of the pressure of the whole service system at the back end, this is the process of continuous evolution from 2012 to -2015. Through our own two level platform and docking platform, many of our brands have grown very well, and these brands are basically alive without the possibility of their success.

What are we building? Many outsourced customer service outsourcing, warehousing outsourcing, that is in a certain stage, but all of our systems are expanding and improving operation level. Over the years, South Korea has gradually improved these nine supporting functions. In fact, every link can achieve the highest level of operation in the national industry, which is not worse than that of professional companies. We think this is our core competency.

After the "two level ecosystem" has been put forward, if a brand can be done very well, it can not be done too big, or even have five or six brands, but the graph is this figure.

There are all kinds of brands on the left, all kinds of platforms on the right, you have your own resources in the middle, we have our own resources, and we cooperate with the external service providers.

The so-called ecological concept is reflected through the graph. The Korean clothing house is a system of its own brand operation. The system grows independently, increasing the frequency of one or two brands every year, increasing the brand continuously, and the employees as the platform of entrepreneurship. The Korean level is constantly increasing. Korean power is the platform for our output service. It is increasing every year, and it is almost the same as the operation of the generation. In fact, the biggest difference between the company and the generation operation company is that many generation operators are "nanny", but the Korean power is "coach", which is different.

Many brands do not lack operation, they lack brand building.

We also made an incubator, which can start business in the incubator and turn the operation brand into an incubator brand, so we can invest.

The above is the Trinity operation. What is the greatest value of the system? The sharing of the bottom service facilities, the internal and external systems of the nine systems just mentioned, because they can be shared, so all the operation efficiency of the whole system is low cost and high results.

We are now mixed up with "new species" in constant evolution. We have listed on the new three boards. The data will be seen next year. It is pretty good. Our model is feasible in a sense.

If you want to evolve, you can continue to interact with people in the industry. You can add WeChat to me. We can discuss and evolve together at any time, and become a "new species" together. Thank you.

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