Red Child CEO Xu Peixin: Build Up The Hot Wheels.

Did B2C enter the field of B2C in June? Is there any chance?

The answer is "yes".

6 months after the establishment of the company, the company began to make profits.

2 years after its establishment, its annual sales volume reached 200 million yuan.

This figure is increasing exponentially. With the golden pig year's boom, red children expect sales to reach 1 billion yuan in 2007.

The growth of red children has been thrilled by venture capital. In 2005, red children raised $3 million, and in 2006 they raised $5 million, and in 2007, they raised $25 million.

The accelerated growth of children is only one step away from listing.

60 million customers and two hundred million sales volume every year, a large number of "followers" are coming out every year, and the B2C industry of "followers" is disappearing every year. The growth of red children is like a miracle.

Compared with ordinary entrepreneurs, CEO Xu Peixin and his business partner Li Yang and Guo Tao can experience the consumer demand of mother and baby products.

So the entrepreneurial team decided to take the mother and baby market as a starting point.

Fortunately, two people in the group had worked in HC. The operation mode of the website started from the catalog gave many inspirations to the red children.

Later, the red children began to test the market of mother and baby products by way of catalogue sale, which evolved quickly and eventually formed a sales mode of catalogue + website.

"You can't imagine consumers' sensitivity to price," he said.

Xu Peixin said.

Therefore, profit has become a magic weapon. At first, the profit margin of red children was 15%, and now the gross profit is only 10%, which is very attractive to consumers.

The seemingly simple business principles bring huge rewards.

One figure is that one of the 4 cans of milk sold in the Beijing market is sold through red children.

After the deployment of 12 cities across the country, the number of consumer groups steadily climbed 600 thousand.

A good platform for customers to form a shopping mall will help B2C website quickly establish its core competitiveness.

Xu Peixin detailed the home call, call center system, inventory logistics system, supplier management system, financial settlement system, etc., the IT system is perfect, which makes the service faster and the customer experience more comfortable.

"Customers are more likely to buy."

The children are gradually shortening delivery time.

In the Beijing market, the time is shortened from 72 hours to 48 hours, and then reduced to 24 hours. Now this figure is 12 hours.

It's not easy.

The interconnection and interoperability of IT system has been a great help.

In red children, the IT system connects suppliers, logistics, settlement and order systems.

Nearly 40% of the more than 6000 suppliers in the upper reaches of the company are connected to the red children systematically.

Red children open many valuable market data to these suppliers, such as market share and user analysis. These figures provide support for suppliers to make decisions on supply.

The two level logistics system of red children has ensured the speed of purchase and shipment.

In this system, the purchasing department at the headquarters of the red children orders the suppliers, who send the needed goods to the various storehouses of the red children, and the finance department unify the settlement according to the purchase records. The logistics system of the red children is allocated and pported according to the customers' orders, and is responsible for the collection.

For users, they can place orders either online or through their own call centers. Their orders are not only related to the red children's own logistics system, but also to the financial and supplier management systems.

This process ensures that the logistics system delivers goods to the users, and the suppliers respond to the supply, and the Finance Department understands the accounts receivable.

The interesting thing is that the logistics personnel of red children are much more responsible than the general logistics personnel. Besides sending goods, they also need to publish and investigate information. These two tasks help red children accurately grasp user needs and expand user groups, but the total cost does not increase.

Another way to reduce costs is to speed up inventory turnover.

In 2005, Amazon's inventory turnover was 28 days, while the red child's inventory turnover had been 25 days.

The IT system built by the red children built up the possibility of duplication and expansion. By the end of 2005, red children began to distribute the whole country.

The children are quick to grow up. "Think of the milk powder that users dare to buy for us. What else can he buy from us?"

Xu Peixin's hypothesis is not just available.

In fact, in the initial plan, Xu Peixin has already considered a broader market.

They think that family spending, such as houses and cars, may be determined by men, while the purchase of fast moving consumer goods is usually done by women.

The purchasing power of women can fully support a new strategic plan, that is, to create a "shopping mall" for family shopping.

The women who make decisions on the consumption of fast moving consumer goods will decide the purchase of children's milk powder when they are young. When children grow up to a certain stage, they may choose to buy cosmetics for themselves, choose health products for their grandparents, and buy household products for their families.

The resources of the old users are fully utilized, and the website is very sticky to new users. The rapid growth of the total number of users has the possibility of realization, which eventually leads to a huge increase in sales.

In Beijing, the product line of red children has begun to extend from maternal and infant products to cosmetics, household products and health products.

Xu Peixin knew that the extensive user base and meticulous service ensured that red children could develop new product lines.

But this does not mean that everything [FS:PAGE] can be done one step at a time. Those standardized products and products with strong customer awareness are the focus of the development. Besides, the whole product line is also considered the top priority.

The ambition of the red child is more than that. Preschool education and gifts will also be the focus of their development.

"Within 3 years, we hope that users can reach 3 million."

Xu Peixin said.