Internet Business Thinking

Chapter 36 New platforms and new ways of playing in the Internet era (4)
The movie box office is only the tip of the iceberg of future profits, and Box World hopes to obtain long-term returns from the chain of derivatives through the sound management of the "Kunta" animation brand. At the end of April 2013, the flagship store of Kunta Tmall, which sells derivative products, was officially launched.

(Section [-]) The "slow" fish rule of Dani Youdao
Mobile e-commerce companies are creating legends, the most of which is a growth rate of several percent or even one thousand percent.In the opinion of the founder Liu Xiaowei, this kind of wild growth and uncontrolled growth in the reckless period may make the enterprise die faster.In order to win the entrepreneurial marathon, Yitao abandoned the practices of blindly introducing a large number of external brands and burning money to buy traffic, and achieved steady and fast running by creating its own brand and controlling the channels of high-quality traffic.

The rapid development of the Internet era has allowed many companies to achieve rocket-like growth rates—a growth rate of several hundred percent or even one thousand percent. Such legends continue to shine into reality.Established in March 2010, Yitao Mall, as a rapidly rising company in the field of mobile e-commerce, has achieved an increase in operating income from 3 million to 3 million in three years, and the growth rate was once as high as 3000%.

However, Liu Xiaowei, the founder of Yitao, does not want Yitao to become a "rocket champion". In his opinion, the early barbaric growth has created the "rocket speed" of mobile e-commerce, but it may die even faster if it comes quickly. "As a CEO, what I have to do is not let the company grow too fast and expand dramatically overnight." Liu Xiaowei said in an interview with "Manager". He hopes that Yitao will be a "slow" fish. "Slow" is a kind of ability to run steadily and steadily, and then to run steadily and fast.

Quick start with private label

In the wave of mobile e-commerce that has emerged in recent years, Yitao is not the first to make a move.Those who arrived first have already left a series of footprints.For example, in 2006, Zhang Xiaowei founded Maimaibao, which is the first professional platform to set foot in mobile e-commerce in China, and is committed to providing equal shopping opportunities for farmers, migrant workers and residents of third- and fourth-tier cities. In 2009, Zhang Yu founded igou.com, which also serves residents in third- and fourth-tier cities.

Yitao, established in 2010, is well aware of its own market strength and challenges.In order to avoid direct competition with JD.com and Taobao, some companies specializing in mobile e-commerce must choose to go behind JD.com and Taobao—the vast third- and fourth-tier cities and rural markets, targeting consumers other than white-collar workers in first- and second-tier cities.Yitao is no exception.

"When the market and target customer group positioning are almost the same as those of your competitors, how can you quickly start and occupy a certain market share in the market that your competitors are cultivating?" Liu Xiaowei first conducted in-depth research on third- and fourth-tier cities And grassroots people in the rural market, it turned out that they do not have a high awareness of traditional e-commerce brands, which leaves room for Yitao to create brands.Therefore, in order to obtain a faster start and a better foundation, Yitao set the entry point as "managing its own brand" in order to form a differentiated competitiveness with its opponents.

Since its establishment, operating its own brand has become one of the most important marketing strategies of Yitao.Yitao's own brand RZ is mainly located in clothing, bags and shoes.Because it can not only make full use of Guangzhou's complete apparel production and processing industry chain, but also control product quality, cost, pricing and profit.

Liu Xiaowei said that if you want to manage your own brand well, you need a professional team to operate it.The team of Yitao has professionals who are good at managing the apparel supply chain. The designers of Yitao will regularly collect new models of international brands and hot items in the market. At the same time, the team will go to market research to understand various cost data, and finally select Choose a suitable factory for OEM production by them.

At present, Yitao's self-owned brands account for less than 50%, but among similar products, the profits it creates are very considerable.Liu Xiaowei told "Manager" that in the future, Yitao's own brand can account for more than half of all sales and create more profits.At the same time, brands will also be allowed to settle in, but they will still focus on independent brands.

Channels that control high-quality traffic

There are two forms of mobile e-commerce such as Yitao. One is in the form of a mobile client application (App) that appears on the user's mobile phone desktop; the other is in the form of a mobile web page that appears on the mobile network.These two formats capture very different traffic.Since the App is difficult to be searched, the traffic it obtains is relatively limited; while the web version is easy to search and can obtain a large amount of traffic.This determines that mobile e-commerce companies like Yitao will choose to use the mobile network as the main path to obtain traffic.This will inevitably fall into the marketing model of Internet companies "buying advertising space everywhere and burning money to buy traffic".

For Yitao, which is in its entrepreneurial stage, traffic is crucial.But Liu Xiaowei does not agree with the practice of "burning money to buy traffic".He said that 50% of mobile Taobao traffic comes from mobile networks, about 20% comes from client terminals, and about 20% of traffic is converted through offline brand promotion.The secret that Yitao does not need to spend a lot of money to buy advertising space like other mobile e-commerce companies is that it has its own advertising company—Windian Media.

Yingdian Media is a mobile media advertising company founded by Liu Xiaowei in 2007. Its main business is to provide wireless network information services including popular mobile phone advertising services.With years of accumulated experience in mobile Internet operations, Liu Xiaowei has a strong ability to control channels.Benefiting from this, Yitao can obtain a large amount of high-quality traffic.

At the same time, on the client side, Liu Xiaowei introduced that Yitao cooperates with domestic mobile phone manufacturers and solution providers such as Lenovo and Tianyu to promote independent apps through the built-in Yitao App client in mobile terminals. Basically, mobile phones are installed when they leave the factory. on.As for the choice of domestic mobile phone manufacturers, Liu Xiaowei explained that because the customer groups targeted by Yitao mostly use domestic mobile phones, the App of Yitao should also be built into the mobile phones of these domestic brands.

Through the strong control of traffic channels, the transaction volume of Yitao has continued to increase.Up to now, the number of registered members of Yitao Mall has reached 500 million, the daily order processing volume has exceeded 4000, the average daily number of users has exceeded 280 million, and the average daily PV of the website has exceeded 700 million.In 2012, Yitao received the investment from Dongfang Fuhai and the B-round financing from Dachen.

Steady development of distribution network

Although it is a wise market strategy to enter with an independent brand, it also requires a robust logistics system to support the entire e-commerce system.

Today, logistics and distribution is still a huge challenge for the entire mobile e-commerce, and this challenge is even higher than that of traditional Internet e-commerce such as JD.com and Taobao.The reason is nothing more than that the main user groups for the two are different.

B2C comprehensive platforms such as JD.com and Taobao are mainly for white-collar workers in first- and second-tier cities, and logistics distribution in these cities is relatively complete; Yitao is mainly for residents of third- and fourth-tier cities and rural people, and the traffic conditions in these cities are relatively poor. Delivery is often not fully covered.Mobile e-commerce for people in these areas is subject to logistics and distribution conditions, and often faces the risk of high logistics costs and affected user experience.Therefore, finding the right logistics partner is very important.EMS with outlets all over the country is undoubtedly the best partner.

At the beginning of its establishment, Yitao formed alliances with China Post EMS and ZJS, and fully supported cash on delivery. "Cooperating with EMS can solve the delivery problem in some remote areas." Liu Xiaowei said.Since 2010, Yitao has expanded its delivery network to most cities across the country with the help of EMS and ZJS. In 2012, Yitao’s monthly shipments were nearly 7000 million yuan, and continued to grow in 2013.In this context, Yitao will establish regional warehouses in order to save logistics costs and increase capital turnover.

(Section [-]) Platform Expansion Requires Ambition

LiveStore is not a simple ticketing software. It differs from traditional ticketing websites such as Damai and China Ticket Online in two main points: the ticketing market involved in LiveStore is not the traditional standardized ticketing market; LiveStore emphasizes social attributes rather than media Attributes.

With the advent of the mobile Internet tide, more and more entrepreneurs are pouring into this industry.Compared with the blindness of entrepreneurs in the past few years, looking at the mobile Internet entrepreneurial projects in the past year, it is not difficult to find that entrepreneurs have become more mature and have a deeper understanding of the entire wireless industry.The phenomenon of everyone getting together to play games a few years ago is no longer seen.

Not long ago, a new member joined the army of mobile Internet entrepreneurs, Guo Han, the former product marketing director of Baidu, and the current CEO of Orient Laifu Technology Co., Ltd.He discovered a new mobile Internet business. This business has three keywords, which involve China's three major Internet companies: standing on the shoulders of Baidu, doing Taobao in the field of activities, and poaching Tencent's wall.

Entrepreneurship Standing on Baidu's Shoulders
To some extent, Guo Han's entrepreneurship is inextricably linked with his old company, Baidu. LiveStore has a total of 30 people. Needless to say, Guo Han himself is an Internet veteran who grew up with Baidu Tieba. The CTO of LiveStore is also from Baidu, and Wu Ximing, the person in charge of operations, is also from Baidu. LiveStore is a start-up company standing on the shoulders of Baidu.

(End of this chapter)