Reinventing the Millennium.

Chapter 526 Serious Problems Facing the Industry ([-] in [-])

Hubei Province, Jiangcheng, Luojiashan International Hotel.

Nine o'clock in the evening.

While soaking his feet in the suite, Fang Zhuo flipped through the materials on the coffee table and chatted with the team members who followed him on business this trip.

"Penguin is very determined to make this Paipai website."

"Mr. Fang, what do you say?" Sun Qi, the supply chain director transferred from Yike, lit a cigarette, and shifted his attention from his visit to Hubei this time to the penguin Mr. Fang was talking about.

"It's different after going public. We directly merged 30 or so business departments into 8 systems, and made 4 business units for the front-line business. Penguin's corporate structure is much clearer." Fang Zhuo chatted after a busy day , where to see, where to say.

Sun Qi nodded silently, and said after a few seconds: "Mr. Fang, it's a bit like Sina's business group adjustment."

Fang Zhuo laughed and said, "Mr. Sun still cares about Sina's adjustment?"

Sun Qi said confidently: "Of course, Mr. Fang, I bought Sina stock!"

"...I can't fault it." Fang Zhuo was stunned, and continued flipping through the documents in his hand, "Penguin has four business units: wireless, Internet, interactive entertainment, and online media. Although Paipai.com is B4's Internet It is under the business, but it is actually very important, and it belongs to the enterprise development system of the president's office."

Sun Qi was a little strange. He had read the information on the coffee table himself, and there seemed to be no further information.

He leaned over to take a look, and confirmed that he was not mistaken. He wondered, "Mr. Fang, how do you know? It seems that you didn't announce the affiliation system?"

"Oh, I was curious, so I called Pony to ask." Fang Zhuo replied.

Sun Qi's doubts disappeared, and there was nothing wrong with Mr. Fang's way of solving curiosity.

After a while, Du Yuhu, another deputy director who was promoted in the medical department, couldn't help but asked: "Mr. Fang, I read from the media that C2C will be divided into three parts next year. Penguin's Paipai.com can do it." To what extent?"

"Where is the three-point world, the media is all nonsense." Fang Zhuo directly killed the main premise, "But it's not their fault, e-commerce is developing too fast, sometimes the front-line business people can't figure it out, let alone What's more, they are separated by several layers of analysis."

"Don't look at eBay's overwhelming advertisements. Their promotions are all on TV and on the website. I estimate that its actual market share has been reversed."

"Next year there will be no third-party C2C world, only Taobao will dominate."

"Penguin's Paipai..."

Fang Zhuo pondered.

Du Yuhu got up to add water to the boss's teacup, and then poured tea for other people in the room.

Everyone listened carefully when the boss was talking, and this time they all put down the materials and documents in their hands, curious about Mr. Fang's opinion on Penguin Paipai.com.

Penguin went to Hong Kong for listing, and the number of users it accumulated by virtue of chat software suddenly became particularly dazzling. It seemed that the industry and peers suddenly discovered the energy it bred when the stock market gave it a real market value.

In fact, regardless of the memories from later generations, as the chairman of Sina, Fang Zhuo is the most familiar with Penguin Portal's rapid growth into the fourth largest portal website in China by virtue of QQ user attraction.

The three major portals, Sina, Sohu, and Netease, as the most well-known Internet companies in China in the past few years, also know most clearly how amazing the traffic accumulated by Penguin Instant Messenger is.

but……

"E-commerce is a good business, and Penguin's entry is a normal choice."

"However, its users and Paipai.com have internal logical conflicts."

Fang Zhuo took a sip of tea and asked, "What do you think e-commerce is?"

Several people in the room are all executives, the more they have status, the more they dare not answer easily.

Fang Zhuo was just chatting, and he didn't have to ask others to speak. He said: "E-commerce, e-commerce, is to put business on the electronic network. Electronics is a means. In the final analysis, its essence is still business."

"But what traffic does Penguin have?"

"It's social."

"Using social traffic to promote the progress of its Paipai network, I am not optimistic about this combination. Instead, I think this is a way of 1+1 less than 2."

"Penguin's online store needs to use its QQ traffic to promote its development. How should the traffic be allocated? For example, if Mr. Du opened an online store, how will he support it? Push all your QQ friends?"

"Is your friend out of your social relationship, or because your product is cheap? If it's the former, you can do one or the other."

"Alibaba's own B2B is already pretty good, and Taobao, which is extended from this resource, has such a phenomenon that 1+1 is greater than 2."

"Paipai.com has the funds of a listed company and has huge social traffic. It can make a good appearance, but it may not be able to compete with Taobao and eBay."

Fang Zhuo only said so much.

Regarding the success or failure of Paipai.com, in addition to the nature of its own traffic, the nature of the two companies Ali and Penguin is also critical. The latter cannot provide comparable business operation capabilities in a C2C battlefield. This is a very important point. , is also a relatively basic point.

As for Ali, its own team has experienced B2B experience, and now it is in a fierce battle with eBay, and its internal operations are several steps higher.

There was a silence of thought in the suite.

"I said just now that Taobao will stand out in C2C at the annual meeting. In fact, it is not only C2C, but also the entire e-commerce market. Amazon and Dangdang. Arm wrestling on e-commerce."

Fang Zhuo chased people away with a smile: "Go back and rest, those who are tired go to sleep, those who are not tired think more, brainstorm, check for gaps and make up for omissions."

A group of executives got up and left the boss's room. Regarding Mr. Fang's views on the nature of traffic, they felt that this was a very novel angle, and they could come to observe and verify the future development of Paipai.com.

After Fang Zhuo finished soaking his feet, he put away the materials on the coffee table and began to think about an important question.

What is the name of your e-commerce brand?
This is a subsidiary jointly invested by Yike and Yike.

Or, the two companies each take one word, "Yi" + "Ke" = Yike, "Ke" + "Medicine" = Medicine?

Easy medicine?Koko?
From the decision to enter the B2C e-commerce market to the present, the name has not yet been settled.

The goal is to build the Amazon of the East, but if it doesn’t work, let’s call it “Dongke”.

Overnight, the name is still pending, but the matter of obtaining land from Jiangcheng to build a warehouse is progressing smoothly.

Compared with Yongke Real Estate's generous acquisition of land in Shencheng, what Fang Zhuo is doing now is not expensive. He personally leads the team to run not only to speed up the promotion, but also to give his own people a symbolic meaning.

The status of this e-commerce company is quite important.

The storage in Jiangcheng was successfully completed. Before Fang Zhuo left, he made a special trip to the Yellow Crane Tower to feel the image of "sorrowful people on the Yanbo River".

However, in the same place, his heart is still more complacent.

"Mr. Fang, we will definitely be able to make an oriental Amazon." Deputy director Du Yuhu said such a sentence when the boss was watching the scenery.

"Amazon's is not that important." Fang Zhuo replied with a smile.

Du Yuhu: "?"

Fang Zhuo continued: "It's quite interesting to play against other people."

Du Yuhu didn't know who the "others" the boss was talking about, but I heard that Mr. Fang couldn't get rid of the sand in his eyes, and now he was going to do B2C. He estimated that he might make a "Second Gift to Li Guoqing" on the day of success.

On November 11, the medical team returned to Shanghai, and then Joseph, a warehousing and logistics expert hired from the United States, came to build a model warehouse in Kunshan.

In terms of warehousing and logistics, Amazon is indeed at the forefront, and it is worth learning.

However, before Fang Zhuo, who had led the team halfway across China, could rest, news came the next day that another project of his competitor was formally established.

On November 11, Penguin announced that it will launch QQ Qzone with Blog function on January 3, New Year's Day next year.

This is seen as another big move by Penguin after entering e-commerce.

Although there have been rumors in the industry that Penguin will open a blogging business, it was quite surprising when it actually came.

Paipai for e-commerce first, and then Qzone for blogging.

Adjust the organizational structure first, and then attack in multiple fields.

Encouraged by such news, Penguin's Xiangjiang stock price rose sharply, and everyone was very optimistic about Penguin's move.

On the 4th, Ma Huateng, the head of Penguin, was interviewed and briefly responded to the two key businesses that the company will carry out in the coming year.

"E-commerce is an important opportunity in the Internet age, and I hope Penguin can create a good situation."

"As for the blog, this is a very good form of content presentation. I heard that Mr. Fang said that the public should become the main body of the Internet age. I agree with this very much, and I am willing to compete with Mr. Fang on the same stage."

Ma Huateng did not evade the reporter's question, and mentioned the head of Sina, which has already occupied the largest market share on the Internet blog.

On the same day that the interview was freshly published on Penguin's own portal, Fang Zhuo attended a meeting at Sina's capital headquarters through the Internet to discuss how to deal with the competition from Penguin, which has huge traffic.

As of November 2004, according to data released by Penguin itself, the registered users of QQ exceeded 11 million, the number of simultaneous online users of QQ games exceeded 3, and the number of simultaneous online users of QQ was about to exceed 70 million.

This is a staggering amount.

It gives Penguin, which has been successfully listed, the confidence to fight on multiple fronts, engage in e-commerce, make games, and play blogs.

The Sina meeting lasted for a long time, and the specific content was not known to the outside world, but a sentence from the head of Sina, Mr. Fang, still spread out.

"How to deal with penguins with such traffic will be a serious problem that Internet companies must face in the future."

The industry's attitude when talking about this sentence is mostly - even Mr. Fang has a headache for how to deal with the penguin, this penguin is really awesome.

They themselves substituted Sina's perspective and found that this is indeed a serious challenge.

When it is substituted into the perspective of small and medium-sized enterprises, it is immediately discovered that this is an extremely difficult problem.

So, how to face the competition of penguins?

C2C Taobao and eBay did not respond.

Sina's blog took action immediately after the high-level meeting.

The first is the re-creation of some content in the Sina portal.

Even though the Penguin Portal has become the fourth largest portal in China within a short period of time, there are Sohu and NetEase in front of it, and Sina is still the well-deserved No. [-] portal.

Sina's online media team can be said to be the best team in the entire Internet. This is Sina's advantage over Penguin, and it is a high-point position in the field of content output.

From now on, they will create more Sina blogs, including social science, sports, finance and other fields.

Secondly, Sina Blog will connect with Sony Music's contracted musicians in China within a week to further strengthen the celebrity style.

Compared with Penguin Qzone, which is more private domain traffic, Sina Blog, which has the largest market share, shows more public attention, which is more in line with the attributes of celebrities themselves.

Penguin Qzone will be launched soon and Sina Blog is already the number one in the industry. The choice of celebrities gives Sina a lot of room for manipulation.

As for the musicians of Sony Music in China, this comes from the personal resources of the head, which is a surprise.

In the end, it is clearly the blog Huaxia Fangxing Dongfang’s president said “let the people become the main body of the Internet age”, but now it is gradually spread to be the strategic thinking of Sina Fang Zhuofang.

In the last two months of 2004, it will be driven by more specific funds, and more ordinary users will share in the theme of soliciting essays.

Sina's response was swift and forceful.

This blog's response to the challenger, and Fang Zhuo's instructions that were not circulated during the meeting.

"Soldiers are expensive, and Penguin's traffic conversion also takes time."

"Just like it announced this year that it will launch Paipai.com, and the launch time is scheduled to be March 3 next year. If it really wants to have formal things, it will have to be delayed. At that time, the C1C e-commerce market will probably be determined gone."

"The same is true for our blog. We must let Penguin's pace stop at its own users, instead of encroaching on the share of Sina blog."

"Pony said he wanted to compete with me on the same stage. Competing is fine, but we have to take the initiative to distinguish this stage."

In November, with the actions of Sina Blog, the vocabulary of "blog" and "Blog" has become more and more popular on the Internet, and it seems that it will become the Internet word of the year in 11.

Penguin wanted to start a blog, and Sina responded strongly, and Huaxia, which was already struggling to support the blog, was the first to fail.

The blog Huaxia received financing at the beginning of the year, but its subsequent development was not satisfactory. The continuously declining market share made the next step of financing a big problem.

And the lack of new funding then limits what it can do, in a vicious cycle that makes it harder and harder.

Now, Sina Blog is fighting bravely, Penguin Qzone has not yet been released, and Blog Huaxia has already started laying off employees.

"The Sina blog is great, Mr. Fang is still self-deprecating, even if Penguin is here to blog, I'm afraid it won't take much of it."

"It's registered users, and it's huge traffic. After all, it depends on how to use it. Mr. Fang has elevated Penguin to a problem that the entire industry has to face, and he praises it too much."

Sina Blog responded efficiently, which turned the words of the head of the blog into polite compliments, and also allowed some people in the industry to let go of their imaginary worries.

(End of this chapter)