God of Rebirth Trader

Chapter 355 Different Foreign Investments

That afternoon, Liu Dongqiang finally arrived from Baijing to Huanan City.

Chen Weidong immediately notified Lin Zeju, Li Xier and several senior executives in the software department to hold an impromptu meeting.

"Qiangzi, tell me about the problem you encountered and see if we can help you solve it." Chen Weidong glanced at Liu Dongqiang, who was tired of work, and said straight to the point.

"Mr. Chen, it's like this. At present, we have encountered a bottleneck period. The number of users is not as fast as in previous years. This is not in line with the laws of the market. In the final analysis."

Liu Dongqiang also knew Infinite Company's work style and didn't like to beat around the bush, so he organized his language to lay out the crisis Jingxi Company was currently facing.

In recent years, Jingxi Company, with the help of Infinite Company, has quickly set off an Internet shopping craze in China.

They successfully transformed the previously low-value Internet traffic into "value users" and further monetized it.

Created a new business model.

As a result, Jingxi Company's business has flourished. Not only has it established its own express delivery company, it has also established self-operated warehouses across the country, gradually shortening the delivery time to 2-5 days.

Although the company is still losing money, there are still many venture capital companies helping them with financing.

Anyone can see that the future profitability of this model is worth looking forward to, and infinite companies have invested in it, which shows that it is really profitable.

This resulted in Jingxi Company having no shortage of money during its early expansion.

However, just when they were expanding rapidly.

Several e-commerce companies have sprung up in the Jiangsu and Zhejiang regions, such as Barbaria, Taobao, Suning.com, etc. They rely on the vast and abundant supply of goods in the Jiangsu and Zhejiang regions and secretly start a price war with Jingxi Company's products.

Many products are even more than half the price on Jingxi's website.

Although it is said that after joining the WTO, the living standards of the Chinese people began to improve significantly, but everyone generally still maintains a state of diligence and frugality. Who doesn't like cheap things?

During this period, offline physical stores were robbing customers very seriously.

A pair of men's trousers is priced at 70 yuan. If you halve the price, the merchant can still make double the profit.

On Taobao, owned by Barbaria, a piece of clothing only costs 9.9 yuan, and shipping is free in the Yangtze River Delta region. This is undoubtedly very attractive to many users who are dissatisfied with the high shipping costs.

Under Jack Ma's series of marketing methods, many users who were accustomed to shopping on Jingxi Company's website flocked to Taobao, which began to have an impact on Jingxi Company's business.

Since entering 2004, Beijing West's user growth in the first quarter has been 14%.

In an environment where the annual growth rate of Internet users in China is close to 40%, Jingxi Company only has a 14% growth rate, indicating that many potential users have been secretly lost.

How to get out of this trough has become Liu Dongqiang's biggest problem at present.

"Qiangzi, why can a piece of clothing be sold so cheaply? Can't your company's merchants lower the price of their products?" After listening to his story, Chen Jie immediately became a little puzzled.

It's just a price war. With infinitely abundant capital, it can't beat a small Barbarian?

A wry smile appeared on Liu Dongqiang's face: "Mr. Chen, it's not that simple. Several new express companies have been established in Hangzhou and Tonglu, and they have taken over all the express delivery business in Barbaria."

"The Yangtze River Delta region has the highest urbanization rate in the country and convenient transportation, so the freight can be kept to an extremely low cost. However, our own express delivery costs an average of 12 yuan per kilogram."

"Actually, the prices of the products sold on our Jingxi Company's website are relatively high, so this problem is not prominent. But if it is some cheap small commodities, then the freight problem will be very serious."

"There are many cases where the shipping cost is higher than the product price."

Chen Jie was speechless after hearing this. He didn't expect that the gap was really huge.

"This shows that the e-commerce market has begun to segment. We must focus on high prices, high quality and low prices, and cost-effectiveness."

"Of course, it's difficult to have both."

Lin Zeju knows the market business best. This company is called Barbaria, as well as Taobao. He has read relevant information and knows that this is a small business website that specializes in selling cheap products.

The unit price is generally around 5-15 yuan.

The reason why the prices are so low is because many of them are Sanwu products without brand names and quality assurance.

But consumers don't care about this. They only know that this product is sold very cheaply and comes with free shipping, which is enough.

Many people even think that as long as the price of a product is low enough and the quality is not too bad, it is tolerable.

It’s no wonder that Jingxi Company’s traffic is constantly losing.

The positioning between the two is different.

Although many people in China have become rich first, the living standards of people in most areas are still relatively low. What they pursue first is not the quality of products, but the price of products.

This is also a very helpless factor that cannot be reversed in a short time.

Even Chen Weidong, from the perspective of a reborn person, doesn't have a good solution.

In that situation, casually pointing out the country, winning a business war and building a business empire with just a few words is simply nonsense.

A person's destiny, of course, depends on hard work, but the process of history must also be taken into consideration

Now in 2004, many things are not as perfect as later generations, and various Internet companies have sprung up like mushrooms after a rain. We are now in a period of barbaric growth.

The above basically has a supportive and tolerant attitude towards this.

It is also easy to curb the development speed of Barbaria. Infinity Company only needs to report to the marketing department that their platform is selling fake and shoddy goods, which will make them suffer for a while.

This chapter is not over yet, please click on the next page to continue reading! But this method is too despicable, and it is not the result Chen Weidong wants.

Jack Ma has made contributions to the Internet economy. He hopes that both parties can start business competition through more formal means.

What's more, he also has a foresight of the times that ordinary people don't have, and he is not necessarily worse than Jack Ma.

Chen Weidong thought for a while and said: "Qiangzi, in fact, you only need to increase the turnover of Jingxi Company, and the problems you mentioned will be solved. Just like logistics costs, they will gradually decrease with economic development."

"You don't need to panic about Barbaria's market erosion. You just need to find the positioning of Jingxi Company to gain a firm foothold in the market."

Liu Dongqiang was thoughtful, but still unsure: "Mr. Chen, I understand the truth, but now the company's annual transaction volume has barely exceeded 2 billion. We have used various promotional methods, but the effect

It’s still not big.”

"Oh? Did you also do Double Eleven?"

"Mr. Chen, what is Double Eleven?"

Hangzhou, inside a commercial building.

About twenty people are in a spacious conference room, discussing the company's next development plan.

"Mr. Ma, the transaction volume of our platform in the second quarter was calculated at 317 million yuan, a year-on-year increase of 67%! According to this growth rate, our total transaction volume this year will definitely exceed 1 billion yuan!"

A female staff member read out a set of data in front of everyone.

Everyone in the conference room was beaming with joy. The company was booming and they were finally getting ahead!

The short and thin middle-aged man sitting in the front was also very excited. Under his leadership, Barbaria Company moved from a dilapidated residential building to a luxuriously decorated central business district.

In addition, in February this year.

They also successfully raised US$82 million from a number of first-tier investment institutions in Jiangsu and Zhejiang, making it the largest private equity financing in the Chinese Internet industry.

All of this shows that his idea is correct!

Although they do not have the huge traffic resources of Jingxi Company, the place where they are located has the best business environment and the richest product resources in the country.

This means that they will be in a more advantageous position when participating in domestic or global market competition!

Wait until everyone quiets down.

Jack Ma said: "Although we have achieved certain results now, don't be proud. We Barbarians will never stop here. The theme of our meeting today is not to celebrate, but to find ways to further expand the market."

, to promote the growth of transaction volume, I wonder if you have any ideas, you can tell me."

"Mr. Ma, we can look for websites with high traffic to advertise, push our website more, and at the same time organize some preferential activities."

"By the way, we can also find offline merchants to help us promote it."

The staff below presented several plans in succession, but Jack Ma was not very satisfied with any of them.

Although these methods have some effects, they cannot achieve explosive growth in transaction volume. Now their company is developing rapidly and has gained quite a reputation in the Yangtze River Delta region.

But this will inevitably be noticed by many people in the industry.

Time is money, and Internet companies are very fragile in their early stages and can easily be attacked by competitors.

Last year Infinity Company sent people to acquire them, which is the best example.

At this moment, a staff member named Zhang Yong suddenly stood up: "Mr. Ma, we can organize a Singles' Day promotion. On a certain day, we will conduct a large-scale discount promotion. The intensity must be strong.

This will definitely significantly increase our transaction volume, and at the same time attract more netizens to become our users.”

After hearing his plan, Ma Yun's eyes suddenly lit up: "What you said makes sense, I think it's feasible! What do you think, Lao Cai?"

The middle-aged man who had been sitting next to Ma Yun and said nothing muttered for a while: "What a great idea for Singles' Day! Why not just make it November 11th? How about it? There are just a few singles!"

The person who spoke was none other than Barbaria’s employee No. 19, Cai Chongxin.

A few years ago, he gave up a high-paying job worth 3 million Hong Kong dollars and resolutely chose to join the Barbarian Company, and soon became the company's second-largest person with his own talents.

Jack Ma has to ask for his opinion on many things.

Afterwards, everyone in the conference room started a heated discussion about the Singles' Day promotion.

It wasn't until late at night that the meeting finally ended.

This kind of work intensity is commonplace for Internet start-up companies.

After everyone dispersed, Ma Yun returned to the office, took a sip of water to moisten his throat, and then said to Cai Chongxin, who was about to get off work: "Old Cai, let's go together tomorrow to ask when the license payment will be approved."

"Well, if there were results, they would have informed us long ago." Cai Chongxin sighed, looking a little frustrated.

The third-party online payment platform is what they have always wanted to develop. This step is directly related to the future development limit of Barbaria.

But this license is difficult to apply for. It doesn’t mean you can get it if you have all the materials.

In addition, there is another important factor restricting them.

Barbaria has a foreign investment background, and he is Japanese.

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