Rebirth begins with e-commerce

Luo Xiu drew several circles on the whiteboard in the conference room, representing several main opponents, while the rice ball has the largest circle because of its first-mover advantage.

"I've met many investors. Most of them think that the essence of this business is a zero-sum game. Everyone spends money on each other, and people can't play it in the middle, losing everything until the last person left in the game, eating all the funds in the field."

After Luo Xiu said this, he used a large circle to cover all the small circles and continued:

"When there is only one market left, he has the right to pricing, and consumers can only be forced to accept high prices, while cooperative merchants can only be charged high-value deductions, and the platform takes both ends and harvests the market."

"Is there anything wrong with this?" Li Shan asked.

“Yes, but not absolutely.”

"Brother Xiu, don't keep it aside, hurry up and say it!" Li Shan was about to be anxious.

"If business is that simple, then whoever has more money will have the last laugh. Then there will be no new companies in this world, giants will become bigger and bigger, empires will never fall into obscurity, and warriors will never be able to defeat the dragon."

Luo Xiu walked to the window and looked at the rolling river water outside the window: "In fact, there is no eternal empire in this world, no invincible dragons, and those small companies that are not favored and have no resources are also developing rapidly."

Back then, no one was optimistic that Taobao could defeat eBay, and in the future, no one was optimistic that Pinxixi could seize a place in the e-commerce field.

"If we win our opponents by just spending money, then when we want to raise prices in the future and make money back, new opponents will come to us with money, and one day we will be consumed by round after round of opponents.

"Our opponents think they are warriors and keep rushing towards us, the dragon.

"Money is always the most important thing. You will definitely not be able to do it without money, but our opponents are also rich. In addition to money, we must have our own advantages.

"We have to dig a deeper moat, a river that they can't fill no matter how much they spend money."

Luo Xiu continued to write a few words on the whiteboard: users, products, services.

"What are our opponents spending money now?" Luo Xiu asked.

"Pill users." Li Shan answered directly without thinking too much.

"Yes, they spend money on advertising and subsidies to gain more users. There is a word on the Internet called customer acquisition cost, which is how much it costs to acquire a user.

"They think that users are their own assets and think that users are a brick of the house, but in fact they are not. If users who buy money cannot obtain high-quality services and products on your platform, they will lose them.

"Of course we also need to spend money to advertise to gain more users, but keeping these users is our core competitiveness."

It's light, everyone knows to keep users, but what to do to keep them... Li Shan didn't say what he said, because he knew that Luo Xiu would definitely have his own way.

Luo Xiu drew a circle on the word "service".

"Our Rice Ball has always attached great importance to service. We combined it with takeaway to build our own urban distribution system and create one-hour home delivery service. This is what other group buying websites cannot do at present. This is our first moat and the main reason why we temporarily lead other group buying platforms."

Luo Xiu drew a circle again on the word "product".

"Our group buying platform is ultimately to sell products to customers, and the fundamental purpose of customers coming to our platform is to buy affordable and useful products. Next, we will build a second moat on the product side."

Li Shan asked: "But the products we sell can also be sold by our competitors, and Pinru's product line is not wide enough, and it is far from enough to support the demand for rice balls."

Luo Xiu asked back: "Do you know why our group buying performance was so high last month?"

Li Shan replied without thinking: "Because we have Apple phones."

"Specifically, because we are the exclusive distributor of Apple's e-commerce channel this year, and I gave you most of the goods, leaving only a small part for Taobao and JD."

Guan Shiyu, who has been silent, also asked: "But there are not many irreplaceable brands like Apple?"

Luo Xiu smiled slightly, "When we only have Procter & Gamble, customers can choose Unilever, and when we only have Durez, customers can also choose Jesbon, but what about ten thousand brands?"

"Ten thousand brands? How many people do our company have to operate so many brands?"

Li Shan expressed shock at this bold idea.

A standard agency operation team must have a store manager, promotion, design, event specialist, customer service... from a few people to a few dozen people.

I can't imagine how difficult it is to manage a company with hundreds of thousands of people.

Guan Shiyu added: "We can't find so many brands in a short period of time, and we can't have so many employees, right?"

Luo Xiu said with great success: "We have had a huge sales volume on Double Eleven in the past two years, especially after Double Eleven last month, our company's phone number has been blown up, and countless companies want to cooperate with us."

E-commerce is just emerging now, and no one knows how to run a store, especially traditional companies, and they are even more confused about e-commerce.

For them, the best way is to find a mature e-commerce operating company to help them develop e-commerce channels.

Obviously, no company is more professional than Pinru.

Luo Xiu set up a huge investment promotion department for this purpose to connect with these brands.

Li Shan asked again: "Even if there are so many brands, how can we solve the problem of manpower?"

"For those first-tier brands with high profits, we operate them ourselves, and only we can serve them well. For second- and third-tier brands, my idea is to subcontract them."

Luo Xiu’s rise to wealth in the past two years has seen all the students in the entire university town.

It is also because of his leadership that countless students started e-commerce businesses after graduation, not to mention those who were originally majoring in e-commerce.

The biggest dilemma for a small studio with two or three people is the two major problems of goods and funds.

They don’t have good brands and don’t have enough funds to create their own brands, so they can’t make their business bigger.

At this time, if Luo Xiu can give them startup funds, brands, and entrepreneurial guidance, the probability of their wealth becoming rich will be greatly increased.

In addition to the various supporting facilities around, it is enough to attract e-commerce talents from all over the country to go to Yangcheng.

When Luo Xiu had thousands of e-commerce studios, tens of thousands of brands, and hundreds of thousands of employees in his hands, this moat was built.

No matter how much money others invest, they cannot copy it because the opportunity is only this time.