Friends of Music for 15 years: more than 20 billion in annual revenue pregnancy baby enterprise, how to Fun O2Oi dark horse: Friends of Music, this might be pregnant baby trillion market sales of the largest retail companies. In 2013, the company's turnover exceeded 20 billion yuan. Villarreal's two founders Hu Chao and 龚定宇 started in 1999 from the line, we have experienced the Internet bubble of the Internet is not quite down to earth, in through the lower DM, line stores to find the feeling of doing business after they put Friends of Music pregnancy baby business has become an owner of Air Jordan 21 the supermarket chain under the self-brand lines. Fortunately, the Internet age has left them a IT thinking and ERP, which makes them in the management capability, philosophy than the traditional counterparts. Unfortunately, they put themselves into an upgraded version of the traditional enterprise, which can not resist electricity providers, O2O and other formats to reshape the new model from the ground impact. In 2013, growth has stalled the Friends of Music. 2014, Hu Chao, 龚定宇 Rethinking Value stores. They dark horse to i said he was in more than 400 outlets across the country (just started to franchise) would become his transition to O2O core competitiveness. From Internet companies to the next line of the supermarket chain to O2O dictation | Friends of Music founder Hu Chao finishing i horse Liu Xi ink edit and Yang in 1999 to build a business platform to complete the positioning transformation and ERP system in the 1990s, I and 龚定宇 from the United States back in October 1999, several returnees founded the Friends of Music in Beijing QLDK Technology Limited. In January 2000, Le Friends Network officially opened, marking the Friends of Music officially set sail in the field of maternal and child. Select this field, first of all because we need. When our daughter was born, but in the country can not buy high-quality baby products, so every time I go abroad, are back a bunch of stuff. I think the high-quality baby products in the country is just, but there was not a decent domestic baby stores to meet this big market. So I thought, Why do not you do one yet. Secondly, when the US electricity providers have begun to rise, and we think this is a big trend. Again, electricity supplier in the specific operation to be easier, as the store does not require the same pre-heavy operation and Gong Dingyu have IT background, with the words now have Internet genes. After the site to take up, we began to choose the category. By foreign influence, at the beginning, toys on the majority of the Friends of Music, and product positioning are mostly children's toys. Because in other countries, puzzle toys are very popular, but in the country, but only a handful of sales, so we re-examine the Chinese market, the final product positioning in the most insecure parents of 0-6-year-old baby series. At that time, the mainland market is not recognized internationally, many international brands, not sales in mainland, our main products are purchased from the hands of domestic brands and sales agents. Soon, in December 2000, we received after the site opened in the US Economic Cooperation and Goldman Sachs private equity fund jointly invested $ 3.4 million angel investment, was when the hot e-commerce, Friends of Music electricity provider sells its products have infants and pregnant their favor. Based electricity supplier, the most important outcome of the Friends of Music at the exploration stage of e-commerce is the self-built ERP system. At that time without the traditional ERP is the end of e-commerce, and e-commerce is difficult to do ERP through a lot of ERP systems from abroad, to adapt to China's national conditions have some difficulty adjusting to be very large, when we developed systems mainly for e-commerce sites to ERP applications deepening Later the shop, it is easy to be extended to store network, is very conducive to the orderly expansion of the chain, there is no such a management system, the size can not be formed. Another point is the creation of the Friends of Music from the beginning to now has been accumulated, is membership management system. Although the extent of the Friends of Music of database applications do not currently have one tenth, but from the very beginning, we have established a data accumulation, data tracking, data analysis habits. Subconsciously feel this is very important. Guide mode However, our electricity business model at the time of China belongs to the preterm children. Since our target users are over 25 years old mother, which at the time was no Internet user habits. At that time, the Friends of Music website day without a single, and met the Internet bubble, the \u0026 ldquo; left for the king \u0026 rdquo; under the environment, we must quickly adjust its strategy (including mass layoffs of hundreds of people from the team, reduce to a few dozen people) lightly armed trend 2015 Air Jordan 13 Latest Nike Shoes lines. March 2001, the Friends of Music of the first outlets, Jiaodaokou shop was established. The site was also not considered so much more residential feel, the flow of people can be, it was decided. Unlike now, to have done adequate market research, people analysis in order to draw conclusions. (I dark horse Note: Currently Friends of Music in site selection methodology has its own set of system First, the target user Maternal and Child Health Hospital near absolute concentration of stores is contested Secondly, the community comes with great shopping. Friends of Music stores is that infants and pregnant outlets preference this place. For the first two places, Hu Chao said, this is the baby shop are well known in the battleground, but there has not been a good place fully excavated, is shoppingmall style shopping mall. Leyou proven, such a position is a very good occasion to weekend shopping, a lot of baby store sales will surge this a few days over the weekend. Villarreal on Friday to weeks Day three days of water, equivalent to the sum of the past few days from Monday to Thursday in.) from the lead-in wire line, it is not an easy thing. In fact, this thing that we explore more than a decade, a lot of time thinking about how to promote a line under the more volume. It was more difficult when the Friends of Music even sold popsicles during the summer, now that I think are funny. Our second home is Sanyuanqiao store outlets. At that time, someone will often call me to ask, what to buy Friends of Music, but the Friends of Music too far away from their home, can home delivery? We naturally said that I can. Although traces at Villarreal, but the site has been there, and we told users go online orders. Many users are not online shopping, our customer service staff to teach others how online shopping this side of the phone. But really particularly difficult, not the user's habits can be formed overnight, so we phone order patterns emerged. For the user's phone orders, we will have a dedicated person to the relevant information into the system. In 2004, a member of Friends of Music catalog publication, which marks the official formation of the Friends of Music Trinity mode. Through the store, phone, shop three channels, using your membership directory mode diversion. This time, Villarreal's sales began to greatly enhance the entire supply chain and category also gradually mature. China's baby industry has been hard to be bigger, stronger, largely on the category of the variety concerned. Friends of Music category similar choice and most baby stores, is divided according to age. We have a category management unit, the people from pregnant women starting with the first trimester, second trimester, third trimester of pregnancy, newborn, 0 \u0026 mdash; 3 months, 3 \u0026 mdash; 6 months, 6 \u0026 mdash; 9 months, 9 \u0026 mdash; 12 months, 12 \u0026 mdash; 18 months, 18 \u0026 mdash; 24 months, 2 \u0026 mdash; 3 years old, 3-4 years old. 4-5 years old, 5-6 years old. Such division. According to category, eat and drink Lazard sleep, corresponding to the appropriate product. We mainly divided into three blocks. FMCG, soft hundred, one hundred hard. FMCG like on milk, diapers and the like. Soft one hundred mainly including clothing, underwear, shoes, socks, bedding. Hard one hundred mainly bottles, pacifiers, toys, lathe and the like. We categorized very fine, and then create several price band depending on the category, the price band, like a, like a big olive group will find the collection at all levels of the city, forming a complete product architecture. Therefore, our category management is more rational. China's maternal and child fields as well as a feature of the entire supply chain system is extremely fragmented, basically not a big supply chain in a dominant position, which is the Chinese retail industry overall maternal dilemma faced. Therefore, before the rise of maternal mode electricity supplier industry, suppliers entire product chain system is in a position of weakness, such as Friends of Music retailers have a certain right to speak. After the electricity supplier hit, due to the fragmented supply chain, retailers will be greatly affected. (I dark horse Note: This reporter has learned, improve and maturity of the supply chain directly affects the retailers and the electricity supplier PK war, for example, compared to the enormous impact of domestic retailers hit by an electric provider, by foreign retailers. the impact of the electricity supplier is small because many foreign retailers supply chain is completely on its own to build and share their own system of goods is very high, so many stores under brand-name products are exclusive brand, the user Elsewhere buy. In this case, if you buy a certain product, you can only buy in this, of course, online and offline stores is full open, but the user ultimately stay within its system of. Construction supply chain) Friends of Music, the following three are more critical. First of all, willing to pay greater attention to the category structure, we must build a category structure of the target user group for. This time we will take Nike Air Max 97 the center of the centralized management structure, unified negotiation, harmonization of procurement. Secondly, in the process of analysis and management category, the Friends of Music is not dependent on suppliers, but in the eyes of buyers to choose goods. Because the baby industry, as a retailer purchases after shipment, not everything can retire, so buyers market vision and anticipation is very important. Friends of Music is generally used in the form of buy-out, I think, when the brand is weak, should enhance their form by buyout brand identity. Villarreal now basically no consignment of goods, and occasionally some of the new brand could take the form of consignment, once serves decent, immediately buyout. Only in this way, then the difference intermediate high enough to give consumers benefit, Friends of Music will have a stronger competitiveness of goods. Once again, the Friends of Music has its own products, establishing its own brand. In the supply chain market is so fragmented situation, through foreign OEM, OEM and other forms of Friends of Music has developed its own brand, the main category with a relatively high margin of garments. Since 2007, we received $ 11 million financing, the next line of our ability to expand rapidly. Friends of Music has opened outlets in Beijing, Tianjin, Shenyang, Xi'an, Qingdao, Langfang, Xianyang and other cities, to now, we have in the country has 400 outlets. All managed through a unified picking headquarters, unified background, unified data center. I think it opened a new store, the manager is very important. Our pre-manager mode by elderly people with new culture gradually takes about six months. Late, there are airborne from the retail industry has experienced. Because the essence is the same as retail, can comprehend by analogy. (I dark horse Note: Friends of Music in outlets construction process, it is not easy, often encounter vicious local competition and monopoly currently 400 outlets this by careful selection, arduous negotiations, a wholly-owned acquisitions, and. Come now, Chinese pregnant baby supplies retailers began to concentrate industrial resources since 2002, began to appear in some big cities pregnant baby supplies chain, which chain operations mainly in two ways: First, brand manufacturers to open stores, Second, the regional market retailers Direct chain opened pregnant baby supplies industry to \u0026 ldquo;. small cities to open large stores, major cities up shop \u0026 rdquo; as a marketing principle to store the winning end, have \u0026 ldquo; staking \u0026 rdquo ;. Meanwhile, pregnant baby goods chain growth rate is staggering, there have been a number of home turnover of billions of dollars and even 2 to 3 million retailers.) Admittedly, at the time the second half of 2013, particularly during the two-eleven , Friends of Music's sales growth really are not as fast. Long before we realized that the impact of the electricity supplier, but because the next line sales growth has been very fast, not enough attention. Today, we have created a new three-mode, re-established this important channel line, opened the whole channel system. Offline stores O2O scenarios dictate | Leyou COO Gongding Yu Liu Xi ink horse finishing i edit and yang In fact, we used to be Trinity, shop, store, catalog made this model for ten years. However, there is no integration and interaction between these three sites will not introduce customers to the store, the store will not sell diversion to the site. But the commodity system, the background system, membership system, three are shared. The reason was not because of the integration of the three channels for each are different user groups, early motherhood is not substantially Internet. But with a baby after 85 start, the market has undergone major changes began. China's national conditions is 99% of the mothers were first born baby, and most mothers are not full-time wife. This is an online discussion of knowledge, when the child is born, to go to the store to test myself to see the strong-minded thinking of my mother group, which is shortly after a child is born, the mother needs to go to work group. Therefore, we created the \u0026 ldquo; new Trinity \u0026 rdquo; is to dismantle barriers to all users purchased the product. The first scenario is the mother group in office. When mothers go to work during the child's grandmother to the phone, said no milk powder. This time to electronic business platform, it may take the next day to home delivery. But because there are a lot of Friends of Music stores, moms orders online directly after 1-2 hours after delivery. The second scenario, the mother group in a meeting. This time on the use of our new on-line version of the Friends of Music APP. During the meeting, he sent a text message grandmother, her mother and so do not need to finish the PC side will go online orders, do not need to phone, direct quietly up and down the list in the phone, takes only a few seconds. We will store users often buy FMCG, and opened on the user can see it. The third scenario, online orders, no delivery, the mother or father to work and seeking posterior outdated. Of course, which contains two users, one is close to home, there Friends of Music store. For such users, they pick up speed requirement for may not be so high. There is also a user, take a bus or a taxi passing by, which need to pick up fast enough, we need to store outside the shop and enough facilities to match, and efficient. We need to get up and serve such users, because we Nike Lunar Womens do not serve, it can be left to other stores the service. The fourth scene, to overcome the limited store space, the store will be part of homogeneous products moving network platform. For example, our physical store each type of stroller just put a color, but the waiter at the time of introduction, we should explain there are other color models. The use of in-store touch screen, directly see the different colors of the cars, but material, feel, size can refer to demonstrate that one. If customers require other colors, just in a single store, does not require a trip again next Friends of Music will be delivered to your door. The fifth scenario, consumers in the store to see things like, you want to watch network evaluation network. This is a very common scenario, for example, a young mother in the store to see a baby I liked it, but she did not want to listen to the clerk, she wants to understand the real user of the product used by the voice. At this time, the store's online shopping station can see, there is a way, he took the phone directly sweep bar codes to jump to the product page. Because the Friends of Music of APP supports both one-dimensional code and two-dimensional code, and then scan code, the phone can tell consumers across space constraints limit the clerk level, direct access to the entire product. We are using mobile and web technology, something the network would be grafted to the store. The sixth scene, buy the big items. Generally, when mothers without reference to her husband's opinion when shopping small objects, but when the price of several thousand dollars to buy the big items, often want to refer to her husband's views. When my mother read the physical store, you want to seek the advice of her husband, does not require a trip to the store with her husband again, directly to the corresponding products through the shop and we can discuss the order. This time without having a lot of trouble, because the line have seen online. The seventh scene, replenishment scene. Suitable for FMCG category. Baby with a lot of things, such as diapers, milk, often with fast, need regularly buy. At this time, the mother already knows what brand of milk the baby to drink, what brand of diapers, and do not need to run to the store to purchase. This time out of cell phone use at home idle time, will be able to direct orders online. More than seven kinds of scenes around are set on how to better serve consumers. Because Chinese baby industry messy feature, consumers will have a choice dyslexia based on security issues, but this time, the health and safety of the store is the first group of a mother is very concerned about things. Friends of Music is based on China's environment, through online and offline channels O2O open up whole, to provide consumers with better consumer choice. Friends of Music of \u0026 ldquo; new Trinity \u0026 rdquo; O2O full channel mode, on the surface only to expand the number of channels. Actually, for the Friends of Music, whether internal or direction of development have a major impact. First of all, the early years of the Trinity is fragmented, now at Trinity O2O is fused to each other. Internally for us, not only to the customer service levels we have to reschedule, but also to re-arrange our internal organization. For example, a colleague in charge of the store, including the staff in the store, they should be responsible to the customers about APP, help customers to download, to teach customers how to use, it is fortunate that today's environment, they Nike Air Max 2013 KPU explain it very easily. But Villarreal need to establish a set of incentives for staff regardless of whether the client online or offline into a single, will give its share. Meanwhile, the original sand dune virtual electronic business colleagues really need to understand how physical store display, how to sell, how to serve. In addition, the store clerk would also have to assume delivery, inspection, delivery functions. External environment led to the third business within the internal mechanisms, but there is no doubt that this time O2O, we will be the next to go with the firm get online and offline. Secondly, \u0026 ldquo; new Trinity \u0026 rdquo; mode, the next store will be the Friends of Music presents polarization trend. Either store particularly large, and built a large playground style store experience. Either shop will be very small, shop display only non-standard products, to take no for standard products on display, page impressions, the store can sell mode. Specific to a city, the size of the store depends on the distance that consumers are willing to go far to buy goods. But now, according to our judgment, most Chinese cities already congested, consumers are reluctant to run very far, so the layout of the store is also much more certain, easy to buy nearby. (I dark horse Note: Reporters learned that the Friends of Music of the non-standard category accounts for about 40 percent, according to Nielsen market research, maternal store is still in the growing stage or because the birth of their first child accounted for 99%, mom. They need to experience, to learn in-store.) again because the last line of APP Friends of Music, to provide consumers with Nike Air Max 90 Hyperfuse more single scenario, consumers purchase frequency will increase. Originally, the user may come once a week or once a week to shop, but now the Friends of Music APP, also launched a flash of lightning Lele shopping patterns, which can continue to stimulate the user login, purchase frequency. Finally, Friends of Music will continue to adhere to open the store. Whether Direct mode or just the franchise based on accurate system management mode, Friends of Music will always sell, \u0026 ldquo; thousands of city shops \u0026 rdquo; is one of our important goal. Report: Villarreal previous financing in December 2001, in the United States by Goldman Sachs and private equity funds together to jointly invest $ 3.4 million net Villarreal in November 2007, Friends of Music won the first from the world's leading venture capital firms AsiaVest $ 11 million in two investment. In July 2008, officially announced the completion of the Friends of Music $ 37 million third round of financing, Deutsche Bank lead investor, B round of financing led VC investment AsiaVest with the cast. Friends of Music of the Chinese monopoly of retail financing became the largest one in the history of finance. 2013, Villarreal finished fourth round of financing. The specific amount and investment institutions were not disclosed. This article i dark horse All rights reserved Please indicate the source, tort reserved.