How to go from selling goods online to building a brand V

　　Do a good job in the three major data of the brand: one is net cash inflow, the second is return on assets, and the third is business growth. We are now focusing on business growth, but without reasonable and effective support from cash flow and return on assets, it is not very safe if the business growth is built on the beach. Let’s take a look at the example of cash flow. Taobao is the first to none. It takes our money and brings us. This huge cash flow generated by the account period is McDonald’s. McDonald’s and Taobao are both cash flow generated by the account period. General Electric generates cash flow through technological upgrades. Dell first has demand and then customizes it according to the demand. Let’s take a look at which cash flow is applicable to our model. We can learn or learn from it directly. Dell is right? Yes, because Dell is a brand, Taobao and McDonald's are channel merchants, can we keep zero inventory like Dell, and place orders and ship everything after paying for everything. It is unlikely, right? But Taobao is also doing pre-sales now, which is also a trend. We need to think about what customers need, and what do you think customers need? Don't know, right! Very good, because the customer doesn’t know, he needs whatever we give him. Is this right? This is actually right and not right, let’s talk about it slowly next.

　　The reason for lack of cash flow is excessive investment and excessive inventory. I have a deep understanding of the inventory of clothing, including some offline brands. The excessive investment and excessive inventory are determined by the inevitable defeat of the arrogant soldier just shared. This year, it will cost 100 million yuan, and next year, I will prepare 500 million yuan in inventory. Because I have left the market, I will grow three times every year, so I will definitely be 300 million yuan next year. What should I do at this time? We can look at the data cube. There is an industry growth in the Rubik's Cube. We must ensure that our growth is faster than the entire Taobao category. For example, the growth of the entire Taobao category this year is 100%, then if you achieve 100% growth, it means that we are not falling behind as Taobao rises, but we are not falling behind. If you are higher than the growth rate of the entire market, then even if we are doing well at this time, we are lower than the industry's growth rate. Then you must be careful at this time. Whether you are in the sight of the giants or online peers, you are eating your share. You think it is good to grow by 30% this year, but the entire industry has grown by 50%, and your top value has increased by 300%. Therefore, we must always be vigilant and a sense of crisis.

　　Now we have finally unveiled the veil of the brand and announced this formula to everyone. Let's talk about this formula, return on assets = profit margin * turnover rate. This formula is basically invincible with the following formula. Make sales and then protect your profit and turnover. At this time, all the problems have been solved. Do you have a sudden enlightenment? This formula is not original by me. It was a book I read in about 2005. The CEO said that if you are interested, you can read it. It's yes. In the second chapter, he was talking about the common thinking of CEOs and street vendors. Now I quote it to our Taobao club. Turnover rate = total sales/total assets. For example, our sales this year are 100 million, and the inventory is 10 million, and my turnover rate is 10, making 10 times a year. This is easy to understand. Regarding the profit margin, for example, your net profit is 10%, and multiplying 10 is 100%, this year's return on assets is 10%, which is equivalent to saying that I invested one million. I made one million this year. I usually come into contact with ROI. The return on investment is mainly used on the express train. The investment is produced as much as the investment is invested. Now we should focus on the entire asset return rate, because we are not Taobao's horsemen, but our own horsemen. We only look at the ROI of the express train, and we only focus on the express train. If we look at the entire asset return rate, then we are concerned about this project, this company, this brand development, and Buffett's 20-year yield is 22%, the average rate of return is 20.5%. If we do 100% every year and you can keep it for 20 years, it is a miracle of the world. But we can maintain 300% in the first year, 200% in the second year, and 100% in the third year, and then maintain normal growth. Keeping it at 20% is an excellent project. If our return on assets is not 10% higher than this year, it means that it cannot match the cost of using our funds, because our loans are also costly.

　　If we can't afford the cost of the loan, then our boss and shareholders will not be happy. Speaking of business growth, our business growth is largely driven by traffic. Everyone agrees. Relying on traffic is driven by platform, relying on money and protection fees on the platform. I give you money and you give me traffic. In fact, what should we rely on to drive, rely on our own systems and talents. Let's discuss whether Taobao belongs to a high-tech industry or a talent-intensive industry. In the view of investment companies, it is definitely not a high-tech industry, it belongs to a talent-intensive industry. This is our core: talents, direct trains need people to drive, title culture needs people to do, pictures of your conversion rate, your artists, your after-sales service, your customer service, everything is done by people. How these people are guaranteed, they are guaranteed through systems, we will give them any system, and we will design the system as they are happy, because we want them to help create value.

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