Rebirth Starts at 7 Million

, the fastest update rebirth starts with the latest chapter from 7 million!

When Luo Fan started planning the Spring Festival Gala activities next year, Baidu's President Li, Rice's Lei President, and Jingdong's President Liu came to Xingyuan's headquarters together.

The three of them came to Luo Fan for something. It's mid-May 2015, and my brother is preparing for this year's. Mr. Lei's rice phone will also be launched with a new model. As for Mr. Li, he wants Xingyuan first. Five generations of big data algorithms.

It happened that Luo Fan also had something to discuss with them, so he asked the three of them to come together.

In Luo Fan's office, Su Qing skillfully used a top Dahongpao to make tea for the four bosses, and then stood behind Luo Fan with a folder in both hands.

"Mr. Luo, your secretary's tea-making skills are getting better every day!" Lei, the only one of the four who likes tea, said, smelling the aroma of tea.

"Practice makes perfect, and the thing she does the most with me is probably making tea." Luo Fan said with a smile.

"Haha! It's also a good thing to know how to make perfect. It's better than not being able to learn anything." After speaking, Mr. Liu picked up the teacup and drank the tea in it.

"I don't understand what's so good about this tea. We Shanxi people don't like these things, Mr. Luo, are you right?" Mr. Li asked with a smile.

"Indeed, I don't understand this thing." Luo Fan agreed.

"You guys are not used to drinking. Tea tasting is very deep. Do you want me to tell you about science?" Mr. Lei asked.

"Forget it! Next time I have a chance to learn more about it! Let's talk about the business first! I called the three seniors because I have something to discuss with you." Luo Fan said in a serious tone.

The three people's expressions became serious when they heard the words.

"Mr. Liu, what I'm about to say has something to do with you. With the development of the Internet up to now, everyone knows that the profits of the shopping market are huge, and the big ones are too big for people to eat.

However, when Ali almost monopolized the online shopping market, the only one who broke the monopoly and stood out was Mr. Liu's JD.com.

In my opinion, the rise of JD.com is ultimately due to the relatively early development of JD.com's shopping, and the fact that it adopts a different operating model from Taobao, that is, the model of an online mall.

But since last year, Ali's resources have also begun to tend to Tmall shopping malls. Mr. Liu, have you been under a lot of pressure during this time? "

President Liu nodded with a wry smile: "More than recently,

In fact, I have been under a lot of pressure since last year.

If it weren't for the cooperation we reached last year, with the daily headlines, Xingchao's payment of subsidies for logistics, and the promotion of Baidu and Rice, which brought a lot of traffic to JD.com, I'm afraid I wouldn't be able to support it here.

But even with your help, on the whole, JD.com is not Tmall's opponent. Why did you suddenly mention this, Mr. Luo? "

"Everyone should know about the alliance between Ali and Penguin. They are currently only cooperating in the food delivery and taxi-hailing industries, but there is no guarantee that they will not cooperate in other industries."

Mr. Lei thought for a while and said, "Mr. Luo, do you want to snipe Ali in other areas of shopping?"

"Yes, that's what I thought."

"At this stage, Ali is not involved in vertical e-commerce or overseas shopping. What do you want to do?" Mr. Li asked.

As Mr. Li said, Ali has a monopoly on e-commerce, but not all of them. Except for JD.com, there are still competitors in some areas where Ali is blank.

This is like the penguin being stolen by Weibo.

It's just that they don't have the action power of Weibo, nor do they have the ambition to challenge Taobao's status like JD.com, but instead take a dislocation competition method.

The most famous of them are the vertical e-commerce and overseas purchases that Mr. Li said.

The so-called vertical e-commerce is to specialize in one type of products, such as cosmetics, fresh food, clothing and so on.

The most typical representative is Vipshop.

Although Taobao has these businesses, it is impossible for Taobao to spend a lot of energy on each of them.

Vertical e-commerce is specialized in doing one or several of them. After integrating the supply chain, it has advantages in price and service.

Haigou is even simpler, which literally means direct sales of seafood business, and heavy operational investment to drive down prices.

But neither of the two that Mr. Li said was what Luo Fan wanted to do. He smiled and said, "Mr. Li, you misunderstood. What I want to do is not vertical e-commerce and overseas shopping, but a new shopping model."

"New mode?" The three of them looked at each other but didn't speak.

These three bosses are all leaders in the Internet industry, but they believe that they are not as good as Luo Fan in terms of innovation ability.

Luo Fan's innovation ability is obvious to all in the Internet industry.

Seeing that none of them spoke, Luo Fan continued: "Before I talk about the plan, I want to talk about my purpose first.

Our purpose is not to directly challenge Taobao, it is a pure waste of money and energy.

The rise of the mobile Internet has given the shopping market a huge opportunity, and we don't need to fight with Ali.

Mr. Li and you Baidu also thought about entering the e-commerce business before, but why didn't you succeed in the end? "

President Li was stunned when he heard the words. He didn't expect Luo Fan to suddenly bring the topic to him.

Regarding this point, in fact, Baidu has already done an analysis, Mr. Li sighed and said: "There are actually many reasons for failure, but they can be roughly divided into two aspects.

On the surface, we failed because Ali had established the shopping market early and cultivated user habits, but deep down, Taobao has almost met the needs of the domestic market. "

"Yes, it's enough for a village to open a supermarket, and it's impossible to open another one," said Dongge.

"That's right, it's true, but if a lot of immigrants suddenly come to this village and settle down, will the situation change?" Luo Fan asked with a smile.

"Mr. Luo means that the outbreak of the mobile Internet has brought more people?" Dongge asked.

Luo Fan nodded and said, "Yes, in the previous PC era, although the number of netizens continued to grow, the speed was not fast.

Now, in the mobile Internet era, with the popularization of smartphones and 4G networks, the number of netizens has shown an explosive growth, which is the opportunity for a second supermarket to appear in the village. "

"But Ali will also seize this opportunity! In the past two years, Taobao's turnover has almost doubled every year, and Double Eleven has increased several times a year." Mr. Lei said.

"Mr. Lei, you are wrong, this is not Ali taking the opportunity, this is Ali enjoying the dividends of the development of the mobile Internet.

Ali has almost monopolized the e-commerce industry, and the development of mobile Internet will naturally benefit Ali.

This is the benefit that Ali will inevitably obtain, but Ali himself is carried away by these benefits, so that now Ali has made a big mistake. "

"Mr. Luo, aren't you talking about Ali's efforts to promote Tmall Mall?" asked the brother, who is also an e-commerce giant.

"That's right, this is it! Brother, can you see it too?"

Brother Dong nodded: "I saw some signs."

"What nonsense are you two playing? Hurry up and make it clear!" Mr. Lei said.

"This starts with Tmall Mall, which is positioned to compete for the high-end market just like JD.com.

However, in order to quickly develop Tmall Mall and suppress JD.com, Ali directly put Tmall and Taobao together. In this way, Tmall's development speed is fast, but in a sense, the growth of Tmall sucks. It's all Taobao's blood. " Brother explained.

Mr. Li and Mr. Lei are people who have been in the Internet industry for many years. They also understand when they hear this.

To put it bluntly, this wave of Ali is equivalent to forcibly stratifying Taobao merchants. The high-end ones are on Tmall, and the low-end ones are still on Taobao.

On the same platform, Tmall merchants make more money, Ali takes more, and ordinary merchants lose out.

These merchants can't make money, so they are naturally anxious, and this is the opportunity that Luo Fan said.

If Taobao did not become Tmall, and the entire Taobao market was very large, then the cost of a new shopping platform to obtain a large number of merchants would be terrifyingly high, and it would be almost impossible.

Without merchants, there will be no users, and without users, there will be no merchants. This is a chicken-and-egg problem, which is basically unsolvable.

But now Ali is cutting his own arm. In this case, it will be much easier to win over some merchants.

"Wonderful! We have a lot of traffic now. As long as we can attract merchants, and then we help to attract traffic, we can get a lot of users. In this way, the basic plan of online shopping will be formed." Dongge looked excited. said.

"Mr. Liu, your method is indeed fine, but it can only be used before Ali rises." Mr. Li said with a blank expression.

"Indeed, in the era of mobile Internet, this kind of speed cannot be successful, because after Ali reacts, there will be countermeasures." Luo Fan said.

"Then what are you going to do?" the older brother asked.

"The best way is actually to use the group buying model of the year, to exchange the quantity for the low price, to give consumers the cheapest products.

Consumers will only choose to continue to consume on new shopping platforms when they really enjoy the discounts, which is more direct than spending traffic to drain traffic. "Mr. Li said.

"Group buying?" Brother Dong frowned. He was very familiar with the group buying model. Naturally, he knew that in the early stage of the development of the group buying industry, the first model was not the service industry but the commodity.

However, due to logistics and Ali's Juhuasuan, the entire group buying industry was forced to change its line of business and started group buying in the service industry.

However, in recent years, the express delivery industry has developed rapidly, and it seems that there are some opportunities?

"It seems that everyone has understood what I mean, so I will continue to say that this shopping platform is going to be called Pinduoduo. The more you fight, the cheaper the price."

"Mr. Luo, our platform, is taking the low-cost route?" Mr. Lei asked.

"Yes, take the route of the lowest price and win by quantity. Now Tmall and JD.com are taking the high-end route, and Taobao itself belongs to the middle end. Although Taobao has made mistakes, it will not work if we take the same route. If you want to snipe Taobao, you have to take a different route.”

"Indeed, group buying is a way to lower prices by comparison.

In addition, there is another way to buy directly from the manufacturer. We open up the supply chain at the lowest cost, so that users can buy directly from the manufacturer.

As long as our traffic is sufficient, the sum of countless users can bring enough volume to manufacturers and help them get rid of various dealers. " said Mr. Li, who has done group buying.

When Baidu was doing group buying before, Mr. Li knew about a line of business. In fact, in many cases, it is not the price of the goods that is expensive, but the dealers who make too much difference.

There is no way for this manufacturer to directly deliver products to consumers. The first is that the information is not transparent, and the second is that the purchase volume of a single consumer is too low.

Therefore, we can only turn to dealers. In the era of online shopping, we can turn to online shopping platforms.

"But can the manufacturers agree? If the price on our platform is very low, it will affect their sales in offline physical stores and online stores. This is the channel of self-isolation, and it will also affect my Jingdong. Influence." Brother said with a frown.

"Mr. Liu is right. As far as I know, the former Taobao and JD.com tried to make changes in this area, but they all failed in the end." Lei followed up.

Luo Fan also knows about this. In 2009, Taobao took full advantage of Double Eleven.

Because the cost of online marketing is much lower than the cost of offline dealers, this has led to very cheap online shopping prices in the early stage, breaking the interests of offline dealers.

And these people will naturally not be reconciled. When this force is gathered, no brand dares to ignore it.

No matter how convenient the Internet is, there is no way to popularize everyone. If you offend offline, then you can only sell your own products through the Internet in the future. Isn’t that courting death yourself?

Therefore, under the multi-party game, the three parties have formed a balance. The price of the online shopping platform has been greatly increased, and it is only slightly cheaper than the physical store, or the price is the same, forming a balance of interests.

Some brands will also specially launch online special edition products, forming two types of products with offline products, avoiding price conflicts between the two channels.

The online shopping platform, although in the initial stage, was the life of offline brick-and-mortar stores, but on the one hand, few manufacturers would promise to give up offline and only do online, and on the other hand, after the price increased, its own profits will be greatly improved.

Taobao is a bit better, it is just a third-party platform, and a model like JD.com, which buys itself first and then sells it to consumers, will make huge profits after the price of goods rises.

After hearing their concerns, Luo Fan smiled and shook his head and said, "You have misunderstood, who said we are going to cooperate with brand owners?

What we sell on Pinduoduo will not be a big brand. The pursuit of cost-effectiveness is the only purpose of Pinduoduo’s existence. I don’t want the so-called brand premium. "

"Then how do we guarantee the quality?" Mr. Lei asked.

"Who Made Apple's Phones?"

"Foxconn!" Mr. Lei replied subconsciously, and then Mr. Lei suddenly realized: "Mr. Luo, do you want to go directly to the foundry of a big brand?"

"Yes, it's the foundry, especially the capable ones.

Now that a product is in the hands of consumers, it is generally produced by OEM, and the brand owner makes a lot of profits, and then it is the turn of several layers of dealers.

After these layers of procedures, the price of general products may have doubled several times. If we can do this, we can reduce the price of commodities to the extreme. ' said Rowan.

Everyone was silent when they heard the words. They also knew that the price difference between the ex-factory price of the product and the price in the hands of consumers was generally about three times or more.

This is not to mention that he is an e-commerce businessman, even Mr. Lei and Mr. Li are very clear about this.