Merge Guazi Renrenche? CEO Yang Haoyong publicly denied

　　#Laogao E-commerce Online Information# Yesterday, Yang Haoyong, CEO of Guazi Used Car, publicly denied the rumor of acquiring Renrenche for the first time. According to the competitive landscape of the purpose, Guazi will not choose to acquire Renrenche for a long time in the future. Yang Haoyong gave a keynote speech on "Testing Entrepreneurship with Ten Years" at the 2017 NetEase Economist Annual Meeting, and expressed his views on the competitive situation in the industry. He pointed out that in addition to paying attention to the growth of the company itself, entrepreneurship should also pay attention to competitors, so as to crush the opponent from every detail.

　　At the beginning of the year, Guazi Used Car Public Relations Department issued a statement saying that the used car field is a huge incremental market, especially the used car e-commerce field, and the overall online penetration rate is still very low. Faced with such a huge incremental market, Guazi Used Cars has maintained a monthly growth rate of more than 20%. Compared with acquiring a company, we can run faster and gain a larger market share with the same capital and energy. This kind of profit is more effective than acquiring Renrenche. Obviously, acquiring Renrenche is not a good choice.

　　If the competitors can be pulled to an 8:2 gap during the entrepreneurship process, there will be no value for mergers at all. In competition, killing opponents is not the goal. A good company must turn its opponents into its own moat. Yang Haoyong pointed out that the result of competition is not necessarily a merger, and merger is the inevitable result of the industry's formation of a duopoly.

　　The active list of iMedia Consulting in October shows that the proportion of active users of Guazi used car APP is more than four times that of Renrenche. In addition, the Huatong Mingluo used car transaction volume report shows that Guazi used car transaction volume accounts for 51.4% of the total, Renrenche transaction volume is 18.9%, and Guazi used car transaction volume reaches Renrenche nearly three times.

　　Public data shows that Guazi, which started late, has overtaken the bend within a year and is currently in the leading position in the industry. According to Baidu Index data in November, Guazi Used Cars continues to maintain the first position in the industry, while expanding its leading position and the first position in the industry is stable. Taking the data on November 10 as an example, Guazi Used Cars Baidu index is 133,790, 3.6 times that of Renrenche and 10 times that of Youxin.

　　In the process of entrepreneurship and competition, Yang Haoyong believes that it is necessary to have the ability to master potential energy. Holding potential energy in your hand actually pulls competition to different dimensions, just like you rowing on the top of the wave, while your competitors are on a calm water surface. The result of your hard paddle is completely different from that of your competitors. Since 2015, Guazi joined the advertising war. Yang Haoyong has repeatedly expressed his desire to continue to invest in the market for advertising. At the NetEase Finance summit, Yang Haoyong said that the potential energy established through the advertising war has seen the effect. According to data from third-party research agency Huatong Mingluo, in mainstream cities, 9 people know Guazi in every 10 people, and Guazi has basically established the user perception that "Guazi used cars are equal to used cars". As of now, it is difficult for competitors to achieve this kind of awareness with 3 or 4 times the advertising costs.

　　Yang Haoyong said: "Suppressing the competitor's share to 20%, it is actually you who wins, and there is no need to merge."

　　He elaborated in detail on the reasons for retaining competitors under the 8:2 competitive landscape from the following four aspects:

　　First of all, it is conducive to promoting the company's own innovation. The existence of competitors can make companies feel crisis-aware and thus maintain innovative development. A competitive environment can allow companies to fight on a larger stage and will constantly challenge the company's own development potential. From the perspective of industry development, the industry needs to leave certain corporate competitors. The most important significance is to maintain a competitive environment. Just like the competitive biological world, appropriate competition will not only activate the industry market, but also continuously evolve, thereby increasing the overall innovative competition of the industry and promoting the healthy development of the enterprise industry.

　　Secondly, it is conducive to resisting foreign competition. When new entrants appear in the industry, the existing 8:2 pattern will pose a threat to new competition and play a good defensive role in resisting external competition. If there is only one market, newcomers can easily find opponents and competitive strategies; if there are several, each one may become a direct competitor, putting pressure on new entrants.

　　Yang Haoyong pointed out that creating value is the essence of entrepreneurship, and at the same time, it is to create profits for enterprises. Internet technology is essential to improve industry efficiency. Here, Guazi forms its own technical barriers through technology and data strength. User behavior can be changed by a good business model, and users' perception of used cars can be changed through the business model.

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