Eight sentences that you must know when doing e-commerce

　　At the regular meeting of the Crown Club, Xia Kejun, co-founder of Yifengshang, shared his experience from popular products to brands. Mr. Xia has 10 years of experience in the Internet industry. He started his business in August 2007 and entered the health care product industry, creating the highest sales of Taobao kidney-tonifying food for four consecutive years from 2008 to 2011! The Yifengshang brand was founded in 2012 and Taobao honey sales were the first in the second consecutive year from 2012 to 2013!

　　The following is a selection of full texts:

　　Good afternoon, brothers from Crown Club, I am very happy to come to Crown Club to share my entrepreneurial journey with my brothers. First, let me introduce myself. Our brand is Yifengshang, and personally is Xia Kejun. Yifengshang is a company that focuses on making honey. Our Yifengshang focuses on completing the entire ecological chain by itself. We all complete the entire ecological chain from bee breeding, constant temperature storage of honey to food processing, and e-commerce.

　　The topics shared in the morning range from popular products to brands. In fact, many of the brothers in our club are very experienced and want to create popular products. So there is still pressure on brands. Why do you say this? We, Yifengshang, cannot be regarded as a successful brand so far, but because the industry we are in is very special, it is food. When making food, you must build a brand. Our Yifengshang is very determined to build a brand.

　　As we all know, when we go to eat a food, if the food has no brand, will you consume it? I won't consume. Nongfu Spring is very good, you can drink it, but if you remove its label, it is a bottle of mineral water, you may not drink it. Therefore, the characteristics of the industry we are in determine you. Only by developing in the direction of scale can you go further. However, the food industry has a very good space. Do you know which industry can be done for a hundred years? Basically they are all eaten. You can pay attention. From cigarettes to wine to vinegar, including our honey, several of the national honey companies have been around for more than 100 years, so we love this sweet career, let’s start sharing below.

　　There are no successful companies, only failed companies

　　As long as you stand on the air vent, the pig can fly. This sentence is very popular now and is talked a lot. Why do we say this sentence? What is the bigger reason why many companies can develop well in addition to fame and fortune? It's an opportunity. There is another very famous saying: There are no successful companies, only failed companies. This sentence once again tells us what is most important and opportunity is most important. If Alibaba were put 10 years ago, could Alibaba grow so fast? Is there a Taobao website? There is no. At that time, the entire industry of logistics and the Internet did not support the growth of Alibaba's model. For all enterprises, the growth of the times must be linked to the times and must rely on this era.

　　Why did Suning and Gome come in the 1990s? At that time, in the hearts of every ordinary person, he thought that buying an air conditioner and a TV at home was a very large item. In the 1990s, Suning and Gome were both very strong. This has a special relationship with that era. Why do we have Taobao brands, Internet brands, and Internet companies today? It is because all businesses have been Internetized.

　　The essence of wanting to start a business and doing e-commerce is the same. First of all, your framework and pattern must conform to the positioning of this era. Many e-commerce people can’t figure out what they want to do or what they want to do. They can’t figure out this thing. If you buy electrical appliances and air conditioners once, you won’t change them for 10 years. You can definitely change your mobile phone in one year. This is what the times have created.

　　When we do e-commerce, we first plan, and you have to find where the customers are, where the market is, and where the business model is, and then we can talk about how to operate and how to do the direct train. These two pieces must be matched well. Without a pattern, it is useless to just have technology. The express train was very good a few years ago, but when I always encountered the situation of order brushing, I would definitely not be able to withstand it. Technology alone is not enough. You not only need products, technology, but also architecture, so that your e-commerce company can continue for a longer time.

　　Find your own consumption soil

　　The main part of the sharing today is divided into five parts. The first part is to share with you the growth process of our Yifengshang brand. There is nothing from the beginning, and how it got through it step by step. The second step is to talk about how to make hot products. Many people know this, but we have met many peers who have made hot products, but they have no results. After the production is not long, it goes on again. You must be determined to do things, and it is valuable and meaningful.

　　Next is to build brands. Some industries are suitable for brands, while others are not easy to build brands. This is also differentiated. Let’s take Taobao’s clothing as an example. Handu Yishe is so big, but according to the latest data, it only accounts for a small part of the women’s clothing share. So in total, although Handu Yishe is also a brand, our clothing buyers value more styles and have a relatively low awareness of the brand. Handu Yishe has 2,300 employees, and such a strong e-commerce team only accounts for one percent of the market share in the clothing market, which is very small.

　　Let’s talk about Nuts, Three Squirrels. The growth process of its team may be narrower than that of Handu Yishe, but the market share of Three Squirrels in Nuts is about 50%. In the word “Search Nuts”, the top four hits are all from Three Squirrels, and they are far ahead of the second place. So you must understand your industry, your consumers, your consumers’ consumption scenarios, under what circumstances and scope they consume your products. This is how to position your brand and how to position your customers.

　　The last one is to talk about some elements of branding. This is the current situation of our Yifengshang. We still have a certain advantage in sales ranking. According to sales ranking, the first and third places are basically ours. Half of the traffic in the entire category is ours. If we put aside the activities, we will only talk about the word "honey" on Taobao. Among the people who buy honey, one of the two has bought our products. The proportion of our brand in the entire industry should be more than 50% from the perspective of search. The reason is that we think we understand consumers better and the choice behavior of consumers.

　　In fact, our brand itself has only been growing for a year or two. Why do consumers choose our products? It is important to have core values ​​and core selling points. How customers choose products is. Now think about why we chose the honey industry when we started our business, because the only food in China that has been passed down to this day for thousands of years is honey. It has a history of thousands of years. There are about 100,000 professional beekeepers in this industry in China, which is to develop it every year, from Yunnan to Harbin, Heilongjiang, and Inner Mongolia. There are about 100,000 professional beekeepers, which is a very large industry. Then there are bees raised in the homes of ordinary people. There are about 500,000 wild bees raised in the mountains.

　　Honey is a very large consumer market, but we do not have a first-tier brand in China, and the honey brand is very regional. There is a market share, and there are about 10 local companies offline with more than 1 billion yuan. We initially considered that this industry has a market and consumer group, but there is no first-class brand. First-class brands will make you breathless, and it will be difficult to do it after you come up. Just like today, it will be difficult for you to surpass Nongfu Spring, so we considered that our team had some chances in the honey market.

　　The competition online was not formed at the beginning. Unlike today's competition, we did the honey project. In the third year, our online sales of honey were about one million bottles. We only sold honey on the Internet, and none of them were sold offline. Moreover, our entire process system revolves around the Internet, focusing on this market and doing things. We said we must lock in our consumers, why don’t we do offline? In fact, it’s not that I don’t want to do it, but that I can’t do it. For example, when I go to Jiangxi, I can’t even enter a supermarket because Wang Shi is too powerful, but we are very strong online. Our pricing system is very good and the customer concentration is also very good. Every project and every product must find your own consumption soil. Just like wine, there are many famous wines in China, such as Moutai and Wuliangye, which are very many, but there are many small local factories in China. No matter how you impact it, he can live a good life. This is the characteristic of the industry. Food brands have relatively high customer stability. At present, we should be the merchant with the most members in the category. We currently have 1,000,000 members who eat honey. In fact, this thing is our core value.

　　Users are more important than products

　　Many friends often chat with me and say that you should be able to increase the price, but in fact, it can increase, but why not? Because we position us as an Internet company. Some people think that I can earn 5 yuan more by earning an extra bottle of honey, but if I earn an extra customer who eats honey, the value is much greater than five yuan, and ten yuan positioning.

　　Internet users will generate higher value. If you only sell products and set the price higher, you will lose more market share. Market share is very important in making food. If you lose market share, it means you lose consumers and it will be difficult for you to rise again. Let’s talk about Hangzhou Wahaha. 10 years ago, everyone drank water 10 years ago, but recently Nongfu Spring has risen. It is difficult for you to see those who sell Wahaha in supermarkets again, because the characteristics of this industry lead to your operational techniques focusing on the characteristics of the industry.

　　Seize the market and opportunities

　　First, we need to understand the market, second, we need to find our own opportunities and open up the supply chain. When many guests share, they despise or do not respect price wars. In fact, capable brands can definitely fight price wars. This magic weapon for price wars is a problem that you use or not, but they must be able to fight. Under normal circumstances, we also want to maintain normal market behavior. If someone really fights a price war, you cannot avoid it. Therefore, the supply chain will be very important and it is very important for you to shape a brand. If you do not have the ability to shape a supply chain, there is only one possibility, that is, you need to establish a super brand. Just like Apple, you can produce it yourself. Only super brands can not do supply chains. General brands need to do it. For example, today's Jiaduobao no longer needs to produce another beverage factory because their influence is already very large. They can buy two factories directly and let the factories help them produce. But for enterprises with general growth potential, the supply chain is very important. Of course, there are some special industries that can avoid this problem, but most of them are still very important in the supply chain. They do not have to fight price wars, but they must be able to fight.

　　What I just talked about is the market trend. Now we are talking about opportunities. Which category do you do and which business do you need to understand the competitors and the market trend. A friend of mine has done a project, Wangwang Small Mantou project. He invested in a very large factory in our local area and invested a lot of funds. It was an absolute local tycoon investment and was very powerful. He planned to take down the Wangwang Small Mantou in the Jiangsu market. He is the operation director of Wangwang. This project should be a bit difficult because Wangwang Small Mantou has been deeply rooted in the hearts of the people. It has nothing to do with the product itself. Even if you do better than Wangwang and the packaging is better than Wangwang, it is useless. This can be verified. After only half a year, this project has no way to support it. It pays several million yuan a month. It is a very large factory. So when doing a project, you must first find the weaknesses of the market.

　　In fact, was Taobao effective in 2003? Very weak, but why can it grow to this day's giant enterprise? We say that he still has opportunities, and his ability accounts for a relatively small proportion. It is more because the market environment gives Taobao a growth opportunity. Because of market demand, many people like to shop online. The Internet in China has just emerged, and all commercial projects will account for a higher proportion. If we just intervened in the honey industry, there was a very awesome brand in this industry, and it would be very difficult for us to survive, because some markets are very concentrated, such as Moutai and Wuliangye have been following for decades, and it is difficult to surpass.

　　How to fight a price war?

　　When we are making hot products, there are opponents in the industry. For example, he has 20,000 meters in front of you and you do one thousand meters every day. This idea is definitely not advisable. When you work for more than twenty days and feel that you want to catch up with others, if someone slaps you, you will collapse. This plan is wrong. What does it mean to be quick and not break? You have to do 20,000 meters in five days. As for how much you spend, it is your business. Only when you far exceed his ability, he will not hit you back. If two people fight, that person's ability is far higher than you, you can only run, not fight with him. If the ability is similar, then each other will hurt each other. In the end, both of them will be compensated. So when you are rushing to the opponent's ranking and playing hot products, the plan must be done.

　　What is the best solution? It means that you have to defeat its confidence in the shortest time. This is the most important thing. If you do something, he will follow a little bit, then you will definitely die. Why? Because others have been in the first or second place for a long time, you are rushing up, others are making profits, you are losing money. So you have to hold your breath and use all the resources you can use, and you must get it in the shortest time. We meet many people who do activities. Others make nine yuan, I also make nine yuan, others make nine yuan, and others make nine yuan, and I also make nine yuan, which is boring. If others make nine yuan, you should make eight yuan. Even if you lose all the money, they will collapse. You have to go to the shortest time. This will cause less harm to the brand and you will get more opportunities. We often see that we do whatever others do, and we also make eight hundred meters a day. This won't work.

　　There will be no Taobao brand theory in the future

　　What is focusing on the Internet? I used to have friends who would often discuss the theories of Taobao brands and non-Tao brands. What do we want to share with you based on this theory? In my personal opinion, I think there will be no Taobao brand, or online brand or offline brand in the future, because in the future, everyone will live on the same online line, and everyone’s information on the Internet will be directly accessible. Including offline companies, they will also be connected to this network. If a company is not connected to this network, I guess it will disappear in the end. If it can become bigger and stronger on the Internet, I think it is enough. As long as you do it big and strong enough on Taobao, there will be no problem. When everyone is a netizen, there are no so-called online and offline brands. No one should think that Three Squirrels is not a brand. Why? Because his influence is great enough.

　　What ultimately do Internet companies rely on? It depends on influence. Many years ago, everyone thought that Alibaba and Taobao were just a website. To put it bluntly, Taobao itself was a website at that time, but it has completely changed today. So what are brands, Taobao brands and traditional brands in the end? All brands will be electronicized, and there is no dispute. When we talk about the development of the Internet to this day, everyone is talking about e-commerce and the Internet, but what is it in the end? Apart from Google, the highest should be two e-commerce companies. The Internet serves business and social interactions. So at this time, you are an Internet brand, so don’t consider offline anymore, because in three or five years, you will become a domestic big brand. The efficiency of the Internet is far higher than that of traditional companies. More and more Internet brands will become stronger online, because the cost is low, which is the direction of the development of the times, but can traditional ones be achieved? Can't do it. Price reduction? Supermarkets do not allow them, nor do they allow them to increase prices, so they are uncompetitive.

　　I think the development of e-commerce has just begun and there are still many opportunities. We think the current competition is still relatively weak. If you want to place an advertisement offline, how did you place it? Everyone should know that you are placing a street sign next to the highway, placing an advertisement, or making a sign in a community supermarket. These advertisements only deepen the impression of the brand and will not directly form sales. The cost and efficiency of advertising on the Internet will be higher, because as long as you have an advertisement, we do not talk about investment ratio, at least you can sell it at that time, at least this order was sold at that time. How are traditional advertisements made? It cannot be collected by a penny, and your advertisements are just printing, so the efficiency of the Internet is far higher than that of traditional companies. The ability to shape brands will lead to more and more Internet brands becoming stronger online because of the low cost.

　　Only when there are hot products can you get a chance to build a brand

　　So why do you need to make a hit product? Because there are hot products, there is a chance to build a brand . Nongfu Spring and Jiaduobao are both hot products, but they have not been presented online. What is the core of building a business? It must be a hit product, because the cost and efficiency of hit product can be controlled. Private customization has a market, and it must be very high, but it must be non-mainstream. It is not a mainstream market. The mainstream market must be a hit. This returns to the essence of business. What is the essence of business? You are a hot product offline, and you must make hot products online. If you don’t make hot products, it is impossible to set up a brand. Therefore, the first thing you need to think about in all e-commerce is how to make hot products. If you can’t make hot products, you can’t talk about other things and you can’t do anything. What is the ultimate thing about hot products? Have confidence in buying. It’s what Lao Gao talks about. Without credibility, people will not buy your things. If you have credibility, you will have more sales.

　　At the same time, it is also very important to choose a model. If you can’t keep up with the conversion, you have to invest in advertising. Advertising is the most expensive now and no one can stand it. So it is very important for you to improve your competitiveness a little bit when choosing a model.

　　There is no way out for imitation

　　We say that the number one brand in all industries basically has one common feature, either a new entrant in the industry or a pioneer in the industry. Therefore, if you want to win, you must win in innovation. If you don’t have this point of innovation, it will be difficult for you to succeed. Even if it is micro-innovation, you must innovate.

　　Brands are not imitation, but creation. JD.com has done a lot of things that Taobao does not do, so it has succeeded. If you want to win the market and the brand has influence, what are you thinking about first? It is definitely impossible to copy. A few years ago, no one knew JD.com. JD.com was still a very small company because it was different from Taobao. So he would survive. Paipai is so rich, rich, energy and resources, but Paipai lost because he imitated it and did the same thing as others.

　　In the past, I was an Internet engineer at China Mobile because I knew Huawei's strength. Because every call we make and every network we go to, how this information is transmitted to all over the world is through Huawei's equipment, the technology and solutions provided by Huawei. Huawei is a well-known mobile communication technology supplier. I think Huawei's mobile phone technology is a hundred times better than Xiaomi. It is not at the same level at all. Huawei is a very excellent company in the world, let alone the technology. If it can take down the US market and the African market, it proves to be a very awesome company. Xiaomi uses another way of thinking to sell mobile phones to every consumer. It sells it through the Internet, and Huawei uses channels. Xiaomi sells mobile phones without relying on channels. It sells them on the Internet and has greatly aroused everyone's appetite and subverted the entire thinking in other ways.

　　Finally, I would like to share with you one sentence: There has never been a savior, I have to save myself. E-commerce companies must be entrepreneurial companies, because the Internet is developing very fast, and you must have a brand new Internet thinking to do e-commerce. For example, when we make honey, we have always used Internet thinking to do this project. There has never been a savior, so we must rely on ourselves. The second sentence is that now is the most dangerous moment, which is to play hits and you must be determined how to go. Many people cannot hesitate. The brave one wins when they meet on a narrow road. The last sentence is to ask where is the way? It means innovating. Innovation must be persisted in and you must go your own way. That’s all for my sharing. Thank you everyone.

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