Reinventing the Millennium

The competition between Tesco and Dangdang continues to ferment.

What is very paradoxical is that the heads of both parties are not only looking at the market performance. Li Guoqing and Yu Yu are waiting for the Edition Office to intervene, and Fang Zhuo is also waiting for the Edition Agency to show up.

With the promotion of Tesco’s 3.16 Reading Day, Dangdang has a slightly slow but enough frontal confrontation.

Li Guoqing was still interviewed and said that the prices of his books would be consistent with those of Tesco.

And Dangdang's actual response is more than that.

On the evening of March 19, another member of the husband-and-wife team gave an interview for the first time.

Yu Yu's appearance was a critical blow, announcing that Dangdang would spend 10 million Huaxia coins on website promotions to give back to consumers for their years of support.

10 million Chinese coins.

This is the strength of the book business that Dangdang did not show even when it participated in the e-commerce competition last year, although at that time their energy was focused on the expansion of department stores.

The media have spread the statements of Li Guoqing and Yu Yu. Many people feel that Dangdang is determined to defend the market position of its core business and must strangle Tesco's book business in the cradle.

Even if Tesco has a temporary customer service order, will it be able to solve the fundamental problem?

On the other hand, even Tesco’s customer service generously admitted that he wanted to place an order with Dangdang. Does this prove that Dangdang’s books are more complete and better? Does this further indicate that Tesco’s purchases are restricted?

It lasted until nine o'clock in the evening. Fang Zhuo, who has not accepted interviews with the media these days and only used his Sina blog to respond, has not made any movement. This is a bit disappointing to the media who are watching the news of the richest man. They are all ready to work overtime.

After another half an hour, reporters suddenly saw that the Sina blog had changed its popular content. The first one was "Yigou Customer Service 007".

——"Hello everyone, I am the customer service person who places orders for customers at the moment."

——"The boss told me that I was popular."

——"I feel deeply ashamed and honored. In fact, I was just flexible under the spiritual guidance of my boss."

——"The boss said that Tesco must be customer-centered."

——"Under my leadership, our customer service team has become more and more proficient in placing orders at Dangdang. Unfortunately, Dangdang has started to search and screen."

——"Oh yes, my badge number is really 007. Look, this is my badge number."

——"Because of the recent promotions, we have been working overtime. I just asked my boss, who is also working overtime, if Dangdang is going to have a 10 million promotion, what should we do?"

——"The boss said, we also have 10 million."

——"I thought to myself, this won't work. It's already cheaper for me to get the goods. How can I give back to customers with promotions of the same specifications?"

——"Unexpectedly, the boss added two more words, US dollars."

——“10 million US dollars!”

——"We will take the money from Dangdang shares and Dangdang will accompany you to the end!"

Media reporters extracted key information, and Tesco announced that it would spend US$10 million to fight this promotional war.

Dangdang is serious, Tesco is also really popular!

The competition between the two sides has further escalated!

I didn’t even wait until the next day. Late at night, the two websites that were also working overtime changed their promotion information. It was no longer a humiliating one-dollar deal, but an instant discount of 60% off for a purchase of 200+ books in all categories. , some books offer instant discounts of 100 when you spend 200 or more.

It is worth mentioning that the promotion displayed by Tesco is indeed greater, but it has more requirements than Dangdang that have caused many consumers to complain. To receive coupons, you need to bind a bank card with Tesco's Easy Pay.

While the media are reporting on the escalation of book e-commerce competition, "Yigou Customer Service 007" continues to operate on the Sina blog, actively answering questions from some people in the comment area.

On March 20, "E-Go Customer Service 007" published its second blog.

——“Today’s e-commerce book category has dropped in price, remember not to miss it!!!”

——"Also, I asked the boss for you about the books he usually reads."

——"Absolutely first-hand information!"

——"First of all, let me introduce our boss, the richest man in mainland China for two consecutive years!"

——"The boss said that the "Ten Proverbs of the Richest Man" and "Three Sayings from China's Richest Man to Teach You About Business" circulating on the Internet are all lies. He has never said such words on any occasion."

——"But today's book is the book he said he read."

——"One Hundred Years of Solitude," "Alive," "Besieged City," "The Book of Songs," "Principles of Economics," "Development Economics," and "Investment."

——"I asked the boss, did he invest in Dangdang because he read "Investment Science"?"

——"He nodded!"

——“Today’s section is ‘Seven Books Recommended by the Richest Man’ and ‘If you read “Investment,” you will also invest!”

On this day, with the update of customer service 007, with the popularity of Sina blog, and with the Sina portal reprinting and guiding traffic on the website for the first time, the "Top Man Recommended Package" that appeared on the Tesco website successfully achieved the highest sales volume of the day.

It seems that the words "Seven Books Recommended by the Richest Man" really have an unusual magic power.

This performance shocked the internal employees of Tesco.

On the third day after customer service 007 went online, she posted photos of the Tesco customer service team, her boss working overtime, and herself.

The customer service team is in high spirits, the richest boss is half-smiling, and 007 is pleasant without makeup.

On the fourth day, customer service 007 once again updated the comments from the boss.

——"The boss said that you should stop buying books."

——"He said, never buy randomly just because the price is favorable."

——"He also said that many people buy books just because they think they have read them and do not open them after they buy them."

——"Is this really the case? Score 1 for comments like this."

——"I almost forgot about business, today's e-commerce books are discounted up to 30% off, with a maximum discount of 30% off."

As the comment area was quickly filled with "1"s, "Yigou Customer Service 007" quickly attracted a lot of attention with her characteristics of being the mouthpiece of the richest boss, wittily placing orders for customers on the spot, laughing at herself in the comment area for shortages, and being beautiful.

The media only noticed this phenomenon a few days later. They also found that there were book recommendations shared in the comment area every day. In addition, there was a saying that you could find customer service discounts and price changes by dialing the code 007, etc.

what is this?

Alternative shopping guide?

Journalists were quite puzzled, and some couldn't figure out why such a blog was so popular.

But no matter what, Tesco’s customer service 007 has become quite popular along with the book fracture promotion. Even before the traditional media reported it, NetEase and Sohu both talked about this emerging “E-Gou brand promotion”.

Yes, their financial chief believes that this is a promotional method planned by Tesco in response to competition.

The photos you post are beautiful, you seem to be able to talk to your boss often, you consider your customers wholeheartedly, and you have hidden little gifts...

Just buy a book, what more?

Moreover, how effective this can be is worthy of scrutiny. Maybe no one will care about it after a few days.

The analysis of the portal website did not reduce the popularity of e-commerce customer service 007. The content she updated was linked to the boss, adding the boss's comments on the characters and plots of certain books.

Accordingly, the sales of these books from the publishing house have increased immediately.

"The current situation is that factors such as heavy subsidies, online promotion of book brands, and Tesco's overall advertising promotion have combined to give consumers a good impression of our new e-commerce company."

"Mr. Fang, I think the current stage is still a stage where brands occupy the minds of consumers."

"As long as Dangdang has a promotion, we will immediately follow up with a lower promotion."

"By solving part of the channel procurement and adding several such comparisons, I believe that Tesco can take over Amazon's banner in the book field and truly compete with Dangdang."

Amazon's Shi Tao has not yet completed the work handover, but he has been communicating with Tesco's book business in the evening. He summarized the recent situation in a telephone report on the 22nd.

"Well, mind occupation is an interesting word." Fang Zhuo said with a smile, "However, our channels have encountered some troubles, and a publishing house has raised objections."

Because of continuous promotions, full discounts, discounts, bundles, invitation coupons, etc., books on the Tesco website are much cheaper than offline.

Although Dangdang’s books are cheaper, the ones on Tesco will always be the lowest on the Internet.

According to the publisher, this will impact their other channels.

In addition, some publishing houses that have not supplied books to Tesco have also raised objections, believing that Tesco's low prices have disrupted good industry order.

"This is a problem." Shi Tao pondered. "I'm afraid those publishing houses outside our channels are under the instigation of Dangdang, and it's really difficult to respond. Although in general, there is still a certain profit margin for selling them together."

Under normal circumstances, the price of Dangdang from the publishing house is about 40% off, while the price of some unpopular and slow-selling books is about 30% off.

Best-sellers are generally single products that are not promoted and are combined with activities, which leaves a pretty good profit margin.

This is also one of the reasons why Dangdang has only raised two rounds of financing since its establishment.

An important factor in the booming development of e-commerce is to eliminate layers of profits and pass the price to consumers.

Tesco's purchase price is generally 10 percentage points higher than that of Dangdang. This time, it claimed to have a budget of 10 million US dollars for promotion, which has essentially penetrated the bottom line of the publishing house. Judging from the feedback received, the publishing house has indeed Under pressure from other channels.

"It's even. We have no advantage over Dangdang. We sell it cheaper. The publishing house is not very happy. Dangdang has also gathered a group of cooperating publishing houses to launch public opinion attacks in the upstream industry." Fang Zhuo sighed, "Dangdang is not willing to sell it." It is using its dominant position in the online market."

Because we are number one in the online market, Dangdang has the lowest price for purchasing goods, which can be 10 percentage points lower.

For the same reason, it can sign super strategic contracts and engage in upstream and downstream bundling.

In addition, the payment cycle with the publisher is also longer.

The time between e-commerce and publishers is 6 to 9 months, and Dangdang generally can take 2 or 3 months longer.

Shi Tao pondered on the phone and did not speak immediately. This question was indeed difficult to solve, even Amazon didn't solve it.

It was Fang Zhuo who expressed his crude opinion: "To burn money, Dangdang takes 10 million. We are 8 times more than it is. If we burn through everything, I want to see how long Dangdang can maintain its market dominance."

As the person in charge of the book business group who was about to leave the company, Shi Tao felt physically and mentally refreshed after hearing these words. Damn it, if Amazon had President Fang’s attitude, why would it be so mediocre now?

"This 10 million is the value of Dangdang's shares?" Shi Tao asked after he calmed down a bit.

"It's not 10 million. I originally invested 11 million in it, accounting for 18% of the shares." Fang Zhuo said, "This is the budget of your book business group."

"11 million US dollars." Shi Tao repeated the number.

Fang Zhuo denied again: "No, the budget is not this number. The original 11 million US dollars depends on how much it can be sold for now. I will find someone to take over. The amount that can be sold is based on your budget."

"Then this... must not be doubled." Shi Tao said happily.

"The whole world knows that I want to sell Dangdang's shares, and any investment institution will lower the price." Fang Zhuo said calmly.

Shi Tao can't comment on unfamiliar fields. In fact, he thinks it's okay not to sell. The book e-commerce market will grow bigger in the long run. After two or three years, the US$11 million will definitely increase in value a lot.

However, if you sell it, the money at this stage may be used to develop your own business and create higher value.

Why doesn’t the richest boss draw money from other places?

Shi Tao didn't ask this question. Anyway, as long as Tesco has a better budget than Amazon and a decisive attitude, it will be fine.

…

It is indeed known to the whole world that Mr. Fang wants to sell Dangdang's shares.

In fact, he announced it himself on his blog.

Therefore, when Jinxin Capital received a call from a middleman touting the company, there was no surprise. Instead, it showed great interest.

In this way, Ning Junxia, ​​the president of Jinxin Capital, was able to go to a dinner with Mr. Fang of Yike to discuss the sale of Dangdang shares.

$11 million, 18% stake.

Now, Mr. Fang’s quotation is three times that of US$35 million.

As for why it is not 3300, it is said to be a round number.

This was the first time for Ning Junxia to meet the legendary Mr. Fang, and he heard his judgment on the development of book e-commerce, and even his judgment on the development of the entire e-commerce industry and the national economy.

The reasons are very good and defensible.

But the price is still a bargain.

It would be rude not to bargain in this situation.

Ning Junxia raised her glass and took a sip of wine, thinking about the reasons. No matter how good Mr. Fang's words were, there was still one fatal flaw.

He asked with a smile: "Mr. Fang, Mr. Fang, I think you are right. Dangdang will have great development in the future. However, I also have a question. I also admire your ability, Mr. Fang."

"Should I trust Dangdang's development or trust Mr. Fang's ability?"

If Mr. Fang is believed, then with this ability, Dangdang's future development will be weakened, and the price must be carefully discussed.

If you don’t believe it, hey, this is Mr. Fang in person, can he say such unconfident words?

really.

Fang Zhuo couldn't answer.

Ning Junxia showed a smile.

After a long time, Fang Zhuo sighed: "Mr. Ning, you really surprised me. You are worthy of being the president of Jinxin Capital. He is a leader in the venture capital industry in the past two years. It is better to meet him than to be famous."

Ning Junxia raised his cup and said humbly: "Mr. Fang, that's a huge compliment, that's a huge compliment."

Fang Zhuo clinked glasses and drank one: "Mr. Ning, no matter where I go, I have to say that I believe in myself the most. Without this confidence, I wouldn't be where I am today."

Ning Junxia nodded, the confidence and courage of the richest man were what they deserved.

He cheered: "I also believe in Mr. Fang, so Dangdang's price..."

Fang Zhuo waved his hand: "Since Mr. Ning also believes in me, that's easy. Mr. Ning, please listen to me about our plans and development of Tesco."

"Xiao Liu, go to the PPT."

The secretary next to him skillfully took out his notebook, opened the project PPT, and silently said in his heart, well, this is the third one.

Ning Junxia: "?"

this……