Li Guoqing: I have also wanted to sell the Dangdang [i] Note Dangdang world network operators, electricity suppliers are China's first true sense of the shares. Dangdang established in 1999, it is also currently the most senior surviving commercial enterprises. From 1999 to 2010 the market, then recently achieved annual profit, Dangdang founder Li Guoqing and his go is not easy. Wen / Li Guoqing once wanted to sell, but still refused Tencent after just listed, I complacent, feel omnipotent. Then below the issue price, I Yuecuoyueyong. I told the board that give me three years, will be able to return to profitability, certainly more solid, the gap is not pulled a large, can not say I can not be reduced. But below the issue price was a turning point for me. Then I began to busy all day technology, category optimization team. However, a listing of over six months, the old shareholders can cash in when the old shareholders began to run. At that time I was deeply exciting, but I believe that my blood cosplay wife is very talented.
At the time, I did not complain, he has no experience, there was no one indebted. Very good to see people, not love to socialize, is focusing instead on hard work, work twelve hours a day, is the death-defying work. However, in this process, there is indeed shaken, and we got our old takeover offer. My wife said either we do not get the competition so fierce, and both broke the law the bottom line (not done for so many years tax evasion). Dangdang sold the idea was really there. When the stock to 8, when it was proposed 16, I do cosplay costumes for sale not agree. Later, Tencent also proposed to shares. Negotiations with Tencent, there are two factors that lead to talk not go: the first is the ownership, (Tencent to) 33 percent, I said no, it 25%. Tencent then proposed to buy good music are the property you couple tube. We couple said in unison, we did not have this ability, if it exists, exists in relation to it independently. After the outcome of the negotiations back to people, she said the couple did not become our ambitions. And the other end talks fail result is written into the contract that we adhere to, the requirements of the matter in two years Tencent to free flow of writing in the contract. (If you do not write) that Tencent looting, cheap. Because the market value of $ 500 million when we, one hundred million US dollars Tencent something that Dodo toes.
So then he refused Tencent shares up. Category choose what to do and what not to select the category of retail worldwide there are about more than fifty tools. But a rough "cosplay fruits basket " look, choose the category three requirements. First, your customers want to buy; second, with the advantage that you have a mature category there is no migration; third there is no profitability. Some of it is not profitable category, digital is a class. There is a 'Harvard Business Review' published an article said that regardless of e-commerce or traditional retailing category is the core strategy. Category selection, category management, promotion of different categories in a different way. If we choose a digital is susceptible to (sales) number, an order of more than 3,000, not an order to sell books 5 books 85 here, is not susceptible to customer price, but customer number, order number, influential enough. 25 years of age is the worst person to do business. Including the line of shopping centers, department stores, clothing category on their easy not dare 25 years of age, because they are too moist, too sensitive to price, our team does not have this capability. Back to the books, we find that day to buy a book of pregnancy had 5,000 people. Plus we can give the baby to buy things when special care really fake goods, which is Dangdang advantage. So we start from selling milk diapers, and soon the whole network first. Then we started selling baby food, then we have to sell baby and children shoes and clothing. Do platform, was said to be open, we have lost the dream of the Amazon. We lost this dream, but can not be reconciled, I'm still looking for opportunities. On one thing, I think my Amazon business model is to understand the most permeable. Jingdong platform it only accounted for 10%, 80% of all digital, it is a single category. This I like the Amazon, the balance B2C (self) and B2B2C (open platform for third-party merchants). Six years ago the US Amazon, which has 60% of the profits from the B2B2C. Next, import some categories we never do. For example, clothing, because we do not have buyers team, all investment model. These categories do import and do not move, but the platform will be rapid development. Dangdang is open, but I do not stand in line, that's my business strategy. The reason why cooperation with the 1st shop, but I sold it because the food. Suning Tesco is the same, they settled in our digital home appliances, our books assigned to them. I settled in terms of books is to put your self book closed. Dangdang Why so confident? Because we have the book industry procurement, product selection, supply chain aspects of what people take away.
Retail business, money is not everything in the past three years, Dangdang, Jingdong, Amazon, later added the 1st store these money-losing price war to life, and made the electricity business entrepreneurs no space. My adviser said that now do not need to strategy and management wisdom, it more than anyone else did you get the money from Wall Street. My wife asked me, how do people took more money. I say, if the money had everything, that this society is no thing we entrepreneur. Among these, the only product will rise there is representation. In our several fierce price war in the background here, the only product will still come out. Potter is the concept? Last year to sell the backlog this year. I know some garment chiefs, they flick cargo rules is: a break will do, take the money, do not return. But only product will sink Asian badly, he persuaded the clothing, do two things: first do not give money, sell a second consignment return. He was stunned to change the rules of the industry. China's retail industry, start-ups can have four values: the cheapest and most convenient, interactive, most choose. We can say that in China's retail industry, local companies grow, multinationals did not make inexpensive. Business, always be profits have committed a mistake I was carried away on Wall Street, also once what category do what category there. At that time I felt I did everything, lose the money to do, so count on more customers, sales volume is big, then the valuation will be high, the market value on the large, rodeo thing. The second you do it, someone else on the soft, scared to close, and the results we all your life.
Amazon China do not care about it to lose this money, pay two hundred million US dollars a year right, Jingdong gall old can get the money, or else it has died twice. But in the last year, we started losing money cut import category, Teng children to businesses to clothing. Was fast and easy to rent a warehouse in Beijing, just competition Treasury with us, we have to expand in Beijing, I said Jingdong Yi Xun keep competition? Great, quickly put it away coffers, and not the other. I had three quarters, each quarter to pay a billion dollars, but also very scary. Lost to what extent? Gross margin 10, stream 12, gross enough logistics. Easy fast money, let play go. In the new competitive landscape, long overdue strategy of differentiation. This is the era of competition, be sensible. Always do business profits. (This article originally appeared in the world of Finance and Economics Weekly, edited by i world network operators, please indicate the author and source) Recommended reading 'Dangdang seek acquisitions of' 'laggards Dangdang'