7000 words of dry goods will help you understand the essence of business

　　The vice president unit of Laogao Crown Club and the member unit of Jinguan Club, Hasen Group, has been operating in China for more than 20 years, with annual sales of more than 2 billion yuan and more than 2,000 stores across the country.

　　At the Crown Club regular meeting in August 2015, Professor Zhou Hongming, an e-commerce strategy consultant of Hasson Group, shared about e-commerce and micro-business. Professor Zhou Hongming essentially made an accurate analysis of the operating mechanisms of e-commerce and micro-business, and studied Professor Zhou's sharing, so that you will not be dizzy when doing e-commerce.

　　The following is a selection of full texts:

　　Time flies very quickly. I remember last year I stood on this stage and shared the issue of the core value of e-commerce with everyone. In the past year, everyone has gained a lot from understanding data and marketing, brand value or services.

　　Thank you very much today for inviting me again and let me share with you some of my views on e-commerce and micro-business. Of course, this view is not the path that e-commerce will take in the next 10 and 20 years, but some of my experiences in e-commerce over the past 27 or 8 years, as well as some of my research on retail, which are some of my thoughts summarized. I am currently teaching at Shanghai Jiaotong University and am also working with Hasen. I have studied some of the positioning of Hasen's e-commerce, the Internet and strategy for many years.

　　The Internet changes us: the liberation of time and space.

　　I may have been in the Internet industry in my life, and I have been nearly 30 years now. My understanding of the Internet starts with several companies I have created, and one of them is now a listed company and has been in mainland China for 13 years. In the early days, I communicated with some experts in e-commerce and observed the development path of domestic e-commerce. These experiences are what I want to share with you today: What has the Internet changed us? In fact, it is some liberation of time and space.

　　The term liberation sounds simple, but it is a very big challenge for our company. In the past, customers were passive, and we were also passive. In the past, we didn’t know when customers would come and when they would leave. In 1992, the Internet was officially opened to shopping, and we also had a new understanding of customers. Although customers were still diverted, some customers went online and some customers went offline.

　　Over the years, people have always believed that online and offline are two different channels. But it was not until 2003 that the mobile Internet liberated another world, and it was time. After the customers' behaviors such as study, life, shopping, and making friends were liberated, online and offline channels were completely broken. Our business model has also been defined in a new way, which has the similarities and differences between e-commerce and micro-business that we share with you today, as well as some integration methods of e-commerce and micro-business, in which direction will it develop? This is what I want to share with you.

　　User thinking PK relationship marketing

　　E-commerce refers to the operation of Taobao, Tmall, JD.com, and No. 1 stores, while WeChat business is a way to provide customer sales through social tools. We must regard customers as the core.

　　In the past, in the industrial and information ages, people thought that they were just service departments and sales departments in contact with customers. In the entire Internet era, we found that all departments in all enterprises are thinking about users. That's why I put a word called user thinking, which is to put users at the core. Your company's decisions in production, R&D, sales, marketing, and service settings are all related to customers. We talked about this concept last year, which is user data. In this condition box, we are all exposed to B2C, which means selling the products through so-called online services directly through promotion. In addition, we are also thinking about the needs of old customers, and now Taobao is doing this for more than many years. So I won't say much about this. This illustration is still a simple one-way product. As the most important link in connecting with customers, I hope to spread the product and sell the product itself. Therefore, B2C has always used direct sales model.

　　Everyone should understand that this is actually a distribution model. People themselves are a connection. I rely on the relationship with customers, but cannot spread product information. This is not a product-centered connection combination, but a person-centered connection. There is a noun in academics called relationship marketing. Many people have different views on this. The core of relationship is to have dinner together, watch movies together, and share and learn together. It's such a relationship marketing. Many people say that I publish content through Weibo and WeChat, and I want to send my ideas and knowledge to my friends who share it to establish such a relationship. Some people say I hope to recommend you the experience and good products I use, which is a kind of relationship marketing. There are currently various definitions of relationship marketing. In essence, relationship marketing is to provide valuable content to your marketing object, which is the value of relationship marketing. I don't care what you sell, but it must be valuable. It is the person you are selling, thinking that this is the right content at this time. They can get the best results.

　　The era of e-commerce in Renren is coming

　　?Relationship marketing mentions this kind of thing called word of mouth. Why does word of mouth appear? Because it is more convenient for everyone to share. So I boldly proposed that the era of Renren e-commerce has arrived. E-commerce is not just opening stores. Whether it is an online store or an offline store, everyone is an e-commerce company. What kind of concept is this? Everyone is a brand, and people are a brand.

　　Your output is your product, and what you are launching is your product. The content or photo you forwarded today is your product. What you post on the Internet, forward, or anything you forward, are extremely important and can reflect your brand value. So many people say that in the Internet era, I have to work hard to browse my circle of friends and participate in various group chats and groups. Anyway, I have to give feedback on everything. It all needs to win attention. I'm not saying that you can't do these behaviors, but you have to think about where your personal brand value lies?

　　If a person you don’t know, will he think you are a valuable brand when he sees your content, your views, and the products you launch? So on the mobile Internet, everyone is e-commerce, and everyone is a brand. So when you can spread your brand value in an effective way, then you are a WeChat business. I posted a case on a WeChat business forum. He relies on his own brand value to sell products. This case is very similar to the concept we had when we were looking at stores on Taobao 10 years ago. Whether it is e-commerce or not, the connotation of the content of disseminating content is essentially the same. You have to share your experience, you have to spread your product. This is a knowledge point of your service content. You must feedback the real experiences of some friends and some users, and then explore some of your potential customers. The difference is that in the e-commerce era, people are not brands, but the stores you run are brands. In the era of micro-business, people were brands, but they had no concept of a store.

　　Four steps of WeChat business

　　Everyone is a brand, which requires everyone to understand the sales model of retail stores. Micro-business is a relationship, a form of sales originating from sociality. The difference between well-known lies in the ownership of the brand positioning, and finally you have to return to the product you sell. So the products will definitely not be e-commerce and micro-commerce products, but they will be tested in the end. It’s just that you start from the perspective of brand transmission, rather than from the starting point of the store.

　　Amway proposed the WeChat business model in the early days, and Amway's WeChat business model has four steps.

　　First, contacting strangers makes them curious about your product.

　　Second, let customers and users experience our products.

　　Third, let users understand our products and become our VIPs, help us spread from word of mouth, and say how useful it is to buy an Amway product today.

　　Fourth, they like this product, so that they can pass it on through word of mouth. The concept of direct sales proposed by Amway in the United States in 1959 is actually like the current WeChat business. Today, it has become a WeChat business with brand value inheritance. Do you like this product after you use it? Are you the most loyal user of this product? You have to help her spread word of mouth. You have to help this product provide some feedback on it. Would you like to truly become the spokesperson for this product?

　　The model proposed by Amway fifty or sixty years ago is that you must be the spokesperson of this product. If this person really sells Amway in the United States, Japan, or Taiwan, it will be different from ours in China. Amway adopts the pyramid scheme model in the country, and direct sales model abroad. What Amway’s people are very proud of their endorsement of Amway’s products. This product itself nurtures my value to this product, and I am willing to endorse it. I am willing to sell, I am willing to become an Amway dealer, and in today's terms, we have become an Amway micro-business. Therefore, the business model of direct sales has been around the world for fifty or sixty years, and these are several differentiations in the entire retail, direct sales and marketing.

　　First, retail is selling products, which is to use products as the intermediate connection. Wechat business is based on human relationships, so people themselves are the connection, not the product. This is the first difference.

　　The second difference is promotion. In the past, retail sales were marketing, and what we were talking about was focusing on traffic and manufacturing traffic. It is because I keep catching traffic and new traffic through advertising, activities, and some methods of participating in it. This has become something that e-commerce companies in the retail industry are desperately thinking, and in micro-business, it is not about catching traffic, but about reputation. What is the product you represent today, or the product you sell today, what is the reputation? The transmission of reputation should not only be broad but also deep.

　　I would like to tell the story of 100 sheep. In 1989, my professor in the United States told us a lesson that he had 100 sheep, 99 sheep were black, and one sheep was white. What color is this white sheep? Later, the expert said that if your answer was white, then you heard the expert's experience. What color does the teacher say is the white sheep? So your answer is white. However, in the process of social media and the Internet dissemination, the color of this sheep is composed of the same 99-colored sheep. If you say that it is flowered, it is white, it is white, it is red, and it is blue.

　　Word of mouth is the matter of the audience. The longer you talk about the same thing, the more you talk about it, the deeper you talk about it, the more you talk about it, the more you talk about it, the more you talk about it, the matter will come true. So on the Internet, what we talk about word of mouth should be horizontal. A friend of mine told me that the first thing he does when he wakes up every morning is that I am the best. Before brushing your teeth, tell yourself in the mirror that I am the best. Because this is social media communication, this is a kind of word-of-mouth communication. If you have to wash your own brain first, if you don’t wash your own brain yourself, what’s the use?

　　Three models of micro-business

　　On the Internet, you need to increase yourself, constantly spread and repeat this point, which is what WeChat business needs to do. This is something that WeChat Business does different from the e-commerce we did in the past. We don’t check traffic. In the era of e-commerce in the past, we are focusing on discounts, and the best experience of going to Juhua is. Anyway, we should try to minimize it. When we meet an old customer, we should give him discounts and attract him. However, in the era of Internet in the entire micro-business era, we did not do this. We did not rely on discounts, but on the rebate of gross profit after discounts, and gave it to our dealers. It turned out to be 100 yuan. During the process of e-commerce retail execution, 100 yuan was 60 yuan to ask customers to spend 60 yuan to buy it. In the era of micro-business, 100 yuan was 100 yuan, but when I asked my dealer and my distributor to sell it for 100 yuan, I returned 40 yuan to him, but I still charged 60 yuan. But the product is sold for 100 yuan, and 40 yuan is a rebate to my distributor or dealer. This is not a discount concept but a rebate concept.

　　In this channel management, most people are doing this by finding people on your store or directly-operated Taobao stores. In a micro-business management, it is channelized and decentralized. Wherever there is a transaction, it is the contact point of the micro-business. Therefore, the entire management of micro-business transactions does not need to be concentrated, they are all scattered, scattered to everyone, and each person is a channel, so people replace the concept of the store. Therefore, in terms of channel management, these are what everyone needs to understand, and decentralized channel management replaces centralized channel management.

　　During the past two years, we can probably see that there are three models in total. Let’s take a look at the micro-business model that has been accumulated in our China or Japan and Taiwan in the past two years. What types can we see?

　　The first is to transplant the channels and models of the traditional direct sales industry to the Internet. It is the so-called third-level distribution, or the seventh-level distribution that is played in Taiwan, or the bottom-line distribution that is played in the United States, which directly moves the management model of micro-businesses to the Internet. There are some companies and teams doing it now, especially those companies that used to do direct sales offline. They think that WeChat business is a three-level distribution online, because the domestic government only allows three-levels.

　　The second type is the first and third-level model, and it is divided into first-level agents, second-level agents and third-level agents. Through this pyramid approach, a huge organization is established. This model should be easy to understand. Because in 1959, Amway was already operating. The second type is, I mean the store model I see someone doing, that is, people around you can become your distributor or dealer through your circle of friends. So everyone is the center, but whether you are a big center or a small center, so he has a hierarchical concept.

　　The distributors that everyone can find themselves become offline, and everyone can set up a group centered on yourself. But after this group is established, you will find that there is a bad impact, that is, some of them have misused the data. Later, some people used this model to do pyramid schemes, but many companies saw the value of it. They saw the collection of large circles and small circles. He believed that this was a system that was denser than spider webs. Therefore, the ultimate system is most in line with the original spirit of the Internet. The structure of your sales is a network, an Internet network, and everyone is the center. Everyone will develop their own circle, so we see that in China, there are some teams doing this model.

　　Third, we see that many companies are building brand models. Whether they were doing e-commerce in the past or now they are doing micro-business brands, they have independently become a third-party micro-business brand to provide supply and marketing services. No matter what kind of service it is, it is a platformization process, and this platformization process. It is to make people who want to become a micro-business. They have many places to find products and want to sell products through the micro-business team. Therefore, this model provides a platform for e-commerce people who want to change their careers and do micro-businesses in the past.

　　We have also seen this model in the past two years, and this concept is relatively close to the e-commerce model and has been transplanted into the micro-business model. In the past two years, we have seen direct sales to enter WeChat business, we have seen the concept of spider web on the Internet, and we have also seen the concept of e-commerce, and have been changing careers to become the ultimate model of the concept of micro business. In fact, I dare not say that I have the ultimate advantage in China, but I can be sure that I know that no matter what social tools it is, it is well applied on the Internet. I believe that this three-level distribution management model will be easier to accept. Because in the original distribution management, it is mature and has game rules. This kind of game rules for rebate also exists, is calculated, and is reasonable. So my model should be in the early stage of 3-level distribution. It is relatively easy to achieve and is easier to succeed in China.

　　Socialization and personalization are the future of business

　　I vaguely feel that e-commerce has transformed into a platform model of micro-business. The reason is that the whole world proposes that the integrated business model of Internet B2C2C can be truly implemented, that is, anyone who goes to this platform can turn e-commerce into a dealer. Therefore, I believe that this integration of the so-called micro-store platform model will have more opportunities to become what Chinese consumers like in the future. It is also something the government prefers. Because there is a platform that is easy to manage, although the store likes that business model the most, it may be suppressed because it is too easy to become a pyramid scheme. If it is not careful, it will become a model used by criminal groups, which is the fraud model.

　　So there is no right or wrong in this business model, but it may be in different states and different economic states of China will have different ways.

　　?E-commerce has entered Wechat Business, and I think everyone here is the luckiest, because you already understand the kind of operation of the Internet. You know how to serve customers without sleeping 24 hours a day, and you also know how to provide customers with face-to-face services through the Internet. You are already used to it, so the advantage of e-commerce entering the micro-business model is very great. Compared to those offline people or companies that only want to start a micro-business now, your starting point is the best. So everyone here has to do this. As long as there are people who open Taobao and Tmall stores, you must find a way to build your own WeChat business, whether you want to build a third-party platform WeChat business, or you want to build a customer to develop into a dealer, or you want to open a WeChat store to link your online store.

　　Wechat business can be described in two words, one is socialization and the other is personalization. This means that Taobao has come with a time of thousands of people. This requires understanding everyone and objects, and understanding the relationship between people and services. It is difficult to achieve a unique relationship in the entire model. The real face of a thousand people is that you not only know his behavior, you not only know his preferences, you not only know the records of his purchases, but also know his relationship with your website and WeChat stores or platforms, whether he is your dealer, your distributor, and his ability to spread word of mouth. Therefore, the operation of micro-business must be personalized. This is also the beginning of B2C2C.

　　I just briefly introduced to you e-commerce brands and micro-business brands. The WeChat store I went to is a distributor, how will I go in the future? I can buy things when I go to your store in the future. So I am a consumer or a dealer both appear on the same brand. After all, this is still a business behavior. E-commerce is a regional concept, and the same is true for micro-business. There is also the multidimensionalization of channels, which is integration. These are integrated, and this marketing channel is diversified. What we need to solve is the problem of fragmentation, the fragmentation of life, accumulating experience, fragmentation is searching or disseminating information, so only this kind of integration, whether through computers or mobile phones, is actually the overall solution to the essence of fragmentation.

　　Repurchase of word of mouth is the key

　　Word of mouth is really important. What is relied on the Internet is word of mouth. Users are reliable in two-way interaction and can communicate with you. And this communication is no longer a point-to-point, but may be a network-to-network. So this is likely to be such a communication model, so any consumer may become your distributor, so your distributor is likely to be your consumer, so your integrated communication social personalization setting is very important.

　　Repurchase is the most important thing. Because only repurchase can reflect the value of your service and the value of your product. The rationalization of a price system. When looking at e-commerce or wechat, I am looking at your repurchase rate, but you still have to calculate the repurchase rate clearly.

　　What remains unchanged is the user's experience. How do you get your distributor to acquire your end users? He spreads the entire brand or the quality of a product, and the entire shopping environment. When he finally gets the product, he feels relieved. This includes the processing of returns and exchanges, so the good user experience is integrated from service to the entire shopping process, to logistics, and to services. This is more important whether to do e-commerce or micro-business. Because many people use relationship exchange customers, if the user experience is not done well, the value of your relationship seems to be destroyed by you.

　　Integrating B2C into B2C2C and allowing data to be opened is the first key point. The second is to let users become your distributors as well. The era of Renren e-commerce has really arrived.

　　Word of mouth is really important. What is relied on the Internet is word of mouth. Users are reliable in two-way interaction and can communicate with you. And this communication is no longer a point-to-point, but may be a network-to-network. So this is likely to be such a communication model, and any consumer may become your distributor, so your distributor is likely to be your consumer, so it is important to integrate and disseminate social personalization settings.

　　Repurchase is the most important thing. Because only repurchase can reflect the value of your service and the value of your product. To rationalize a price system, look at e-commerce or wechat business, I see your repurchase rate, but you still have to calculate the repurchase rate clearly. What remains unchanged is the user experience. How do you make your distributors and your end users trust you? You have to achieve the trust of the quality of a brand communication or a product, and the entire shopping environment. When you finally get the product, he feels relieved. This includes the processing of returns and exchanges, so from service to the entire shopping link, to logistics, to services, a good user experience is integrated. This is something that must be paid attention to when doing e-commerce or micro-business, and it is more important for micro-business. Because many people use relationship exchange customers, if the user experience is not done well, the value of your relationship will be destroyed by you.

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