Li Guoqing fire: the electricity supplier is to blind flicker, in order to find investmentSource:?? Sohu Finance November 4, 2012 Sohu Entrepreneur will be held in Beijing shocked, annual meeting gathered more than 50 heavyweight elite entrepreneurs and economists, Sohu Finance Dangdang CEO exclusive interview . Moderator: none Dual 11 all very concerned, as Dangdang what kind of measures? Li Guoqing: I have been advocating for each business enterprise do not crash, do not engage in activities together, and divide it among the best is to carry out his activities. Dual 11 originally Lynx Taobao Singles, with our anniversary November 9 just crash, and this is our anniversary month, until the end of November. Moderator: You also said that the next two to three years the industry will reshuffle, electricity supplier industry do you think will happen next? Li Guoqing: Now we still fight, it depends on your top five seating, and I feel very rational, which businesses must have some strength. 8.15 When I first proposed, is to strengthen the treatment. Suning and Jingdong diving, fooled consumers. They are the price war, in addition to others Singles is the anniversary, I do not consider myself stronger. Moderator: this year's economic situation is bad, the electricity supplier for large affected? Li Guoqing: electricity supplier is his own development, we know that online shopping two hundred million people, almost the growth will slow down significantly, the dividend has passed. The market situation has clear, just inside Nike Air Max the top five, a third wanted to be the second, and the second would like the first fight. Moderator: future electricity supplier competition is very harsh, that means you have run out with. Li Guoqing: electricity supplier is to blind flicker, in order to find investment. Electricity supplier is the next line of a supplement retail, non-mainstream accomplishing put their own is not enough, the West and Japan and South Korea, Japan and South Korea accounted for 7%, the West accounted for 4%. I do not think electricity Chamber replace the line. On this basis, we reduced losses and the pursuit of profit was flat. This is the next three years we have concern. Moderator: this year's economic situation is bad, if one word to describe the development of your business in this case, you would use what word? Li Guoqing: Dangdang people are willing to go through the winter, we have experienced three freezing over. The winter, when I feel that the more innovative. For example, we in the mobile Internet, why do we not have high-profile publicity, we do mobile phones, traffic and the proportion accounted for Dangdang very optimistic, but not by burn, depending on customer advocacy. Your old customers do not buy your account, you have to burn out, pull traffic, which is not very funny? Moderator: the economic situation is not good, people are willing to spend it? Li Guoqing: Books and department stores are not the same. This year for the first time is an album book consumption. And daily I told Carrefour, Supermarket exchange, the United States is feeling, they feel the same, we slowed down the replacement, who would not buy a house to buy household appliances ah? Moderator: You just talked about the book industry this one. The last time there is a message that there is between us and booksellers little friction, and now how to solve it? Li Guoqing: Dangdang books four times a year, Daqing, the largest profit sharing rate is the anniversary every year on November 9, just crash with a bachelor. I specifically requested Lynx understanding. I said that Nike KD VI Elite we first published this supplier hundred percent efforts to participate. Last year, 80% of the participants. 80% this year to participate, and that 20% do not participate, I would have to pay, let the reader do? So we requested to participate in one hundred percent. Now, after this round of competition, 80% always been willing, indeed barely 20 percent, we are not necessarily grounds, carrot and stick, and now 98 percent of the suppliers to participate in publishing, and none other than last year, the year before also great. Moderator: reluctant, you have to convince them? Li Guoqing: Yes. Of course, to convince, and I know they feel forced. In the future we need to find more ways, lifestyle, children, small books that the more discounts, really drive sales, publishers are happy. Barely These are very professional books, how much you play off, because he does not discount it sell so much. So these somewhat reluctant. Moderator: future electricity supplier price war would not weaken? Dangdang will not join? Li Guoqing: 8.15 I'm A host asked, I said no no price war. That was the first time I said Jingdong and Suning diving. One is the business capital quickly burn up. The trend is to reduce the financing. Second, everyone in contention seating, bonus online shoppers faster eaten. So I think these difficult to sustain. Moderator: We have recently entered the Lynx, you want us consumers to buy Lynx, or go to Dangdang buy? Li Guoqing: I certainly hope directly to Dangdang, and to-day I have to give the Lynx cat handed the passenger water. Whether called Taobao, Taobao Mall and Lynx enthusiastically invited me books, because they study how to combat our books every year, not combat. I hope we stay so the old books. I originally did not stay for two reasons, the first is Dangdang books too strong. Books to Dangdang not publicized. The stay is my daily, pregnant baby, household, home textiles, these days I need to help the cat. Second, the Lynx after internal hard struggle, the Lynx did in clearing fakes. Lynx many businesses are Dangdang purchase, he fakes cleaned up, I should go. These two conditions are ripe. Moderator: In the course of doing business this year, compared with previous years, you are most concerned about what? Li Guoqing: Old calculate their hands when capital burn? Moderator: In fact, we are short of money this year. Li Guoqing: As far as I do not short of money. Two weeks ago someone wrote an article, I would like to look black, Dangdang poor leaving money on the account as well as 1.4 billion yuan. I'll wait for this day do, put them all depleted. Moderator: electricity supplier and courier should be said that they are up and down between closely related. But during the peak season, courier often constrained electricity supplier, General Lee this one oil What plan do? Li Guoqing: Express is operating, whether express delivery, service, operation and management is the most difficult peaks, valleys, more than 50% of orders, he is not able to achieve. So online, the flow of people inside the mall too much Nike Zoom KD V time if he would lock the door, because there is no reception capacity. Dangdang applied this there are two, first, do not engage in short-term promotions around, you get one day to triple orders, we are done, I think that simply do not win. So we do think Promotions least seven days, this time to engage in a month, that is, taking into account the pressure of the courier company. Secondly, we think that the more volatile the order of sales packages, the use of outsourcing theory, the more can not self, the more the more rigid self. How many people you support? With outsourcing, as well as his own business, and he is much stronger than we are self-built capacity. Our courier companies are the top two with the province, but also are we prop up, with the delivery of more than eight years we accounted for our 80%. He knows to go to this season, and he needs much traffic. Now we do not have advance notice of the issue. This stable partnership. Of course, but also a certain proportion of self-built. Moderator: You as Nike Air Yeezy II an entrepreneur, the most tired of is the matter? What is the most fun thing? Li Guoqing: Entrepreneurs most tired, is to see the high-speed growth, his team continue to expand their horizons, including how to improve their vision, management skills, how to improve, you want to see two or three years, our staff has doubled four times, so that the self to expanding this more transparent. Happy or competition, only to show their worth in the competition. In particular, this competition is based on a dozen ten, skillfully deflected the question, that feeling go. If you took a lot of money to defeat the weak, and that there is no pleasure. Moderator: Can you give us a little example? Li Guoqing: Jingdong just take billions of dollars, when the mighty. Amazon bought in 2004 for excellence, we refuse he acquired, he said the United States consortium ostentatious. We opened in 2004 in Xiangshan strategy will be, many people are confused. I made a proposition, he had his rivals in the United States, to China does not mean he. His rich and powerful are false proposition, he sold two million a year, a million deficit, when four Nike Lebron X Elite million two million deficit, can withstand eight million, he loss of four million, he does not feel bad? He is now three billion, 1.5 billion deficit, affect the stock price of his. So Amazon has come out of this war. It has cropped up a Jingdong, Jingdong and took so much money. Home appliances, digital, 3C losses arrayed it in there. So when I say that I listed in China only three hundred million dollars, I earnestly persuade Suning United States, I say you either want to do you threw Jingdong. Now I'm four books each year I launched a price war, no matter Jingdong came, Suning Tesco came, my books online share a point are no less, or earnings category. Because the Internet are increasing, the store in the fall. Moderator: Do you think the real reason is no less? Li Guoqing: Many people say that no future vertical category, wrong. So how do we war in the book inside, but also profitable, there is a set of things retail. Has its own unique service strategy, has its own unique category strategy has its own unique pricing and promotional strategies, have their own suppliers, supply chain strategy, a set of things. Others just could not do such a professional. Moderator: As an entrepreneur, you consider yourself the most rewarding is the matter? Li Guoqing: of course, to win the competition. However, the standards do not determine the winner in sales volume. Competition to win a measure of any business, retail trade was originally a small broad, it is extremely low profit margins, but the return on investment is particularly high. One is the return on investment, which is a measure of enterprise. The second is your profit margin. Moderator: health, family, friendship, property in which several of the most important? Li Guoqing: This is not the same for everyone, a lot of people think we are a busy business, a business, a large-scale enterprises would be no effort to take into account the family, family. It is fully capable of peace, including me with a lot of entrepreneurs are like this, I do not want to go home every day to chat with his wife for an hour, she can not sleep. This balance is not difficult, plenty of time. Moderator: Suning Tesco acquired red children, recently more and more powerful alliances, Dangdang have any ideas in this regard? Li Guoqing: if the strong do not sell. Acquisition often is the strength of the joint. Amazon, for example, when the old at the time, we were also drinking then, but now they drink. Take five thousand kinds of hit me two hundred thousand kinds, he can account for 70% I do have a few erupted. The results are also the acquisition, Amazon became my 50% of the. After the acquisition worse. Acquisition of 95% is a failure. At that time the reason we do not sell, I do not sell in 2004, the newspaper A host asked, my predictions have all been confirmed. I said that after the acquisition, these multinationals do not understand Chinese, Chinese sales accounted for you is 1%, 2%, you find a seventh, eighth Fu Zongguan this thing. Second, after the acquisition, you have to find an understand Chinese, but also understands English, to manage Kobe Bryant the Chinese this matter, but he just do not understand the needs of Chinese customers. Third, you feel small, I had to report to the Japanese. Full fulfilled. Acquisition is often unsuccessful. Moderator: It was also suggested that, when the United States if they can support it, maybe the whole are both up? Li Guoqing: who and who up again? I especially support the United States, the United States how to engage, how Air Jordan Outlet they cope with the price I very much support. Moderator: So let him put on a Dangdang do. Li Guoqing: Of course, we are very supportive of the United States, my home appliances are to cooperate with the United States, I have an important position in the United States. Three years ago, I told the United States that you have to compete on price. They say such a big loss Jingdong finished sooner or later. Last September, the two groups separately to their staff issued a notice to the store clerk and offline, are not allowed to discredit their own online store. Last September both sides awakening, they Nike Kobe 9 Shoes finally gathered the courage to participate in a price war. Is not enough, they are to take the center of the city with the price of basic phone and online. Moderator: Now we are experiencing a price war, and now there are some gradual integration, the next pattern is what? We Dangdang in which they intend to occupy what position? Li Guoqing: No matter who or Zhang Suning, still formed its own advantages in different categories inside the category. What is your target category, one that the customer books to Dangdang. The next step in our strategy is to buy merchandise to Dangdang pregnant baby. The third is the textile and clothing to Dangdang. We do not notice the whole category. Other selling called convenience stores. Each company is different. Second, the Lynx so powerful, he relies on the flow of Taobao powerful. I told them, I say you can not learn from me, I would locate a comprehensive high-end crowd. Because our huge sales, not in the end, is the low-end. It is also fine department stores. But others Lynx Taobao must do the whole crowd. Moderator: We stay Lynx Dangdang who put forward? Li Guoqing: I put forward. I said as long as there is a good flow, we have the convenience of Nike Air Max 2011 customers, we have more traffic intersection to the water, but also much cheaper than advertising. Moderator: Now we support the Lynx brand, let him become more powerful? Li Guoqing: Good question, I think would have come before is that this problem can not be said, can not let them know the truth. But you insist on asking. Some people say that all these years, all these years you put Lynx fattened. Self-employed and platform is not the same thing. He is the commercial real estate. He earned money in commercial real estate and wandering, and I was the commodities. These two are essentially different, he must manage to buckle, he tried to grab category, grasping services. But I caught hard goods, I have confidence in my management of goods, I is not afraid to stay. Wanda is the business of real estate is not it? But now he did cinema is another matter. I noticed the Lynx Taobao determined not to import. Moderator: If more and more customers began to buy Dangdang Lynx above, will we gradually to weaken Dangdang brand concept? Li Guoqing: This is a good question, but he bought Dangdang management of goods, price and control of service management, of course, I hope that since he landed direct landing Dangdang. But now I just count to navigate the site, to search for the money than to pay more than the Lynx. So I figured there will be some weakening. Moderator: Do you own cooperative is what? Li Guoqing: water upside down. Orders, shipments are our. Moderator: You go Lynx seek such a channel, the channel is not what you think in the future and wandering? Li Guoqing: is traffic. People in the busiest street engage in a shopping Nike Air Max 2013 mall, commercial real estate, of course we stay positive, but good condition. Rent is not expensive. Moderator: the next few years, the pattern of electricity supplier will be like? Which companies will be the first camp, which will be the second camp? Li Guoqing: You asked that several competitors, they said in an interview: If China remaining three, it must have Dangdang. Shijijinyuan, he simply put Dorset, Lufthansa gave you this one, you go to investment, he does not own the investment. So it is very difficult to predict that two, but I basically see is that in digital home appliances 3C I especially glad we meet every year, do not enter large appliances. Second, Gome, Suning Appliance purchase cost advantages too. Other people than you can lower 10 points, had 16 points is profit. Because there is no so much money, he 80 billion in sales, you have to stay up till 50 billion, how much money you have to pay? Said by funds to regain, I think pull back. With the general style of development Jingdong microblogging: now the establishment of assault financing group, into less than half a billion dollars over three years to expulsion. My style is such a big loss on his volume, no internal fine, not too long. If a large publishing house, I have accounted for 45% of them and 50%. This year, if I face this dilemma, then sell it. The merchandise sold me, home appliances, digital 3C Suning and Gome to sell. Five so a stalemate, leaving only three years after the affirmative. Capital will be anxious, the power of capital organized game. Moderator: I just mentioned the power of capital, in September, when you have an interview, when it comes to electricity supplier financing problem, now how electricity supplier financing environment like? Li Guoqing: From the end of last year, the capital very cold, especially the loss of publicly listed companies, the original capital of the United States also accepted the market, and now the United States capital are no buyers, private investors are now looking very hard. Now a year did not melt into the capital. Jingdong looking for people to help him different investment financing, valuations decline. Moderator: Dangdang capital chain how? What do you expect in financing? Li Guoqing: Dangdang financing now no expectations, I still have 1.4 billion of funds in the accounts. Moderator: What do you how to spend this money? Li Guoqing: time to market and the chairman of our road show that we want to deal with a variety of harsh price war, meaning that we have to prepare a loss, of course, a loss, but have a degree of loss of control. Now look at how to spend the money. We see two infrastructure. A whole infrastructure, especially cloud computing, personalization we need one or two steps. The second block, will continue to do some losses, because the hands of the rich, that is still to do, we want the category, who would invade, I will fight fiercely. I did not say I have. Moderator: two-eleven has always been an important day electricity providers compete. Dangdang have any plans? Li Guoqing: We are November 9 is the day we celebrate the 13th Anniversary, we are only two weeks per year anniversary this year, for a month. This is our biggest month of the annual profit sharing. Moderator: none efforts is how much? Li Guoqing: the ratio of the magnitude we have none, basically you can think of books we make 20%. We had a 19% profit margin, let go, let the money mainly Publishing House. You will also see this year to stimulate greater promotion, there will be dozens of fifty fold sales. This time there will be three four hundred thousand kinds fifty fold. Moderator: This month Dangdang's profits? Li Guoqing: all publishers give, do not dig ourselves. Full dig for businesses. Moderator: General Lee when the clothing spokesperson how are you Womens Nike Kobe VIII feeling? Li Guoqing: I speak for our Fashion Festival. Is our advertising, we see these people led inside, you can also figure. Then me now. I am not casually figure, first, seven full meal, the second day, eat four fruits, five clips. Moderator: How the endorsement effect? Francis Chan: My generation, there are people actually ask Dangdang your milk so cheap, diapers so cheap, it was all brands direct supply, as well as such asked. This shows that we are inadequate publicity. Mink coat, a thirty-eight thousand, and forty thousand. Results someday to sell six, brands of course very happy, because I said really real. And the more expensive, a discount can afford more expensive, to the customer to let Italy. We make forty discount books only make up ten. Moderator: You and other electricity providers bigwigs have discussed your spokesperson's this? Li Guoqing: United States together superior products CEOs do Cheap Nike Free Outlet not give their endorsement Well, sell some of my hue, it is also acceptable. But public opinion is not serious, not very good. Moderator: will speak after it? Li Guoqing: Yes. But pay attention to the scale, last time they let me speak underwear, I say this well, we size is also a president of mixed so many years. Moderator: You and Lynx are in cooperation? Li Guoqing: of course, cooperate, he wants a scratch is not easy to go and get a category. They checked our books, pregnant baby, people also think highly of, that we have been operating in these two commodities in very successful. I do not think Tencent the category of a dig yourself a man. Strategy we introduced last year called to go out and bring in, so we went to check multiple entry. Bringing in so many brands that have been Lynx education too, baptism, and these brands to select high-quality imported. We are also open. Several other electricity providers we have talked. Li Jing Le Bee network I have come into contact, they are welcome to stay. Moderator: Just when it comes to acquisitions, those that you absolutely will not be acquired by other people, will acquire other small electronic business cards website? Li Guoqing: I think the acquisition of 95 percent is a failure. Second, I do not want to be someone else said Dangdang acquisitions. How beneficial this brand. But I think the current Dangdang others need not be acquired. Because I went through 13 years, I retail and e-commerce network is very familiar. In the past three years several electricity suppliers to compete chiefs took the money, and I saw their loss of worse than I lose. There is no unique competitive advantage. I think to wait three years, several chiefs, my Internet Conference in June this year, I said that a few big brothers do not sell it to life, to CURRY ONE give the impression that room for innovation. I am in Ningbo, Ningbo public service I give, I can do it up to three hours. I'll do a sub-category, and this is what I want to see. Like Wal-Mart, Carrefour, you mention him five billion, each province has a large supermarket than its sales. We hope to see the different competitive advantages of the enterprise, then I start to cast, it takes time. Moderator: Can you promise this price does not diving it? Li Guoqing: I really can promise, I am white with suppliers, business promotional expenses wanted. Why lengthen the time I took this promotion? What you want is much lower than the purchase price, resulting in cattle, the store sold fresh purchase from me. Many customers are not. So I took time to stretch, Dangdang celebrate the 13th Anniversary of our most valuable promotional month, it must be really fall. Moderator: Now Dangdang logistics industry still insists on not to touch it? Li Guoqing: We touch their own warehousing, packing, shipping, inter-city transportation we touch. City express is that we do not touch. We feel that they are more professional than us, they are good in management. Just last year, we have been criticized poor service delivery, it is true that we do not pay attention. We attach importance to a courier company, from April 1 to their prices, from April 1, we delivery drivers, service attitude immediately changed greatly. Moderator: This year the logistics ills more serious, in the New Year and during the festival. Many companies are also deploying their own electricity supplier logistics personnel. Li Guoqing: This is a bottleneck, but has eased. Because in the past three years fast development of electronic business. Courier companies are not ready. But now the courier companies, including home delivery, cheap Chinese postal reached the market. Now to build even more ridiculous. Electricity providers have a lot to learn this time the price is cut down from upstream. Moderator: Do you think the price will be the main competitive way electricity supplier it? Li Guoqing: also yes. Now real estate more expensive, the cost of your rent more expensive. Moderator: But some people think that the price war is a lower form of competition. Li Guoqing: Yes. You do not to technological innovation, customer service, innovation, Internet technology innovation. This is no way, so you have to have the ability of entrepreneurs in innovation at the same, do not act dumb in the price war. Moderator: A lot of word of the year is the mobile Internet, we Dangdang in it, what kind of plan? Now we also have to do their own third-party payment. Li Guoqing: We have done a year and a half, an independent business unit to do the mobile Internet business, he is an integrated, give him with the 50 technical team, to his own promotion, its own budget. We're just not the same with others is a good old customer service, old customers are willing to download your client on it. Emerging who want mobile Internet jammed us, his entrance, he was right, to burn, and we have so many entrance. Moderator: You take a relatively conservative strategy? Li Guoqing: Yes, good old customer service, incidentally, is open to new customers. Order now accounting very good, we are very optimistic. Last time I saw in Wuhan, Shen Peng, Ding, Tian Suning one talked, say 10 percent. 10 percent can not burn. 10 percent do not burn easily. Next year I expect to have a third of the. Because of the popularity of smartphone technology, more and more low prices, online shopping really easy. Moderator: In terms of specific numbers of mobile Internet it? Currently their profit margins, gross margins have? Li Guoqing: The price is the same. You go through the mobile Internet, with the price of a computer by the same. Moderator: Dangdang in the mobile Internet is a Key word. Dangdang in the mobile Internet to buy? Li Guoqing: Yes, UCWEB, UCP is very small, only a tentative. Moderator: Dangdang in the book market is now very good. What do you think vertical electric providers still very promising. How do you see the current number of vertical electric provider die? Li Guoqing: vertical electric providers no vertical up, so it was integrated electricity provider step into a foot, and he died. He also could not move that money price war. We see some of the vertical electric provider, for example, will be famous, others a few founder perennial backlog in the clothing field discovered, the matter-of-season clearance. The competition on the very high threshold. And he changed an important logical, clothing past commission is to take the money to pick up where NIKE KOBE IX you deserve to come back to the backlog. He was able to convince the brand agency, so no backlog. Original art simply jumped e-commerce, but Nike Lunar Hyperdunk Low also make life difficult for the threshold. You do lingerie, do not understand the material, you do not learn woven, it is not. You are not engaged in the design, how do you make a good style? From the selling, vertical should be better than we go, for example, social marketing should go better than us. You simply put it on a site move, it is senseless. And then spend money on traffic, internet marketing word of mouth can spread very wide. It is not perpendicular to the vertical done. If I were the red child, he not only selling baby products, and sell cosmetics, you will not vertical, not how what kind of price. I do not only mother and child, mother and child need to do a community, early education, but also to those mothers who have to meet to discuss. Moderator: Dangdang department store business do have three years of time, which has outlets, there are stores, the proportion accounted for how much? Li Guoqing: We are fighting and fighting and self-loss rate get down. After three years we have learned also have experience. For example, our clothes, his special short sales period. Once a month sell how to do? Beijing sold missing, Chengdu backlog. Now we mainly rely on the brand, take the joint venture. Garments are associates, brands have the final say. Many lessons have touched some of the sweetness. Jar of grapefruit tea, we sell 19, to sell 20, you have to be shipped to Kashi, and now we wiser, water, rice, flour, engage the city. Toilet paper, napkins same way you have to complete the sales. Moderator: Dangdang in word of mouth marketing is how to do it? Li Guoqing: Dangdang entire mouth marketing is not particularly worthy of lessons learned, we are the first boil, is to save every year, every day out of. We did not find a microblogging flicker. We really kind of bias. Sell themselves corporate culture. Moderator: We know that particularly small Dangdang stock. I do not know how to do it? Li Guoqing: We shop better than the line, better than they should be. We good at forecasting customer demand than the store. We sell more than enough room to maneuver large. Had a past record of sales, in the future also replenishment, it is a complex calculation, including even the click had taken into account a complex function. In this one it is predictable. This formula will be more optimized. Moderator: 2009 people have been great importance to electricity suppliers electricity suppliers or light problems mentioned, and finally we reached a more consistent or focused on inventory and logistics to do it yourself. Now Suning Tesco in August the previous year when there is this advantage, Jingdong each financing also took 30% to 40% of the funds to do this. Dangdang our stock is focused to do that. Every year we have a plan to build inventory what proportion? How to spend money? Li Guoqing: Logistics costs are enormous costs for all electricity suppliers, the United States did, but fortunately the US shipping freight revenue. China No shipping. It accounted for a large part of our costs. But we have some, we are into a huge stream. Dangdang has total storage area must be the greatest. We take careful than others, every three months will also increase, because your sales grow, you have to be increased. So we give our logistics Deputy requirements expressly logistics is rigid, they are rich and powerful companies, may be left out of a rented warehouse usage of the next two years. Every year we have dozens, department stores hundred percent growth, then you have to stay out of what? Every time we increase the Treasury area is only enough for six months. So they struggled every month. We called warehouse explosion, the industry called storage area is not enough. We do consume a lot of energy here, but really worthwhile. Moderator: risk big? Li Guoqing: We found a response. Beijing severely critical position, Beijing-situ can not expansion. Moderator: Jingdong made a permanent solution is to buy land to build their own. Li Guoqing: He now buy land, he did not cover a warehouse. Last year, Wuxi, special government willing to sell me, I said, I asked you to give me a good sign, but to sign rent contracts. Guangzhou is a private owner, according to my drawings to me uncovered. According to my request for additional cover annually. This is one of my way. I now take only four acres of land, four acres which enough ah?