Eight bosses talked about O2O in one afternoon

On March 24th, the "2016 Taiwan First Forum" hosted by CEIBS Taiwan Alumni Association was held at Xinyi Academy in Taipei. Three CEIBS professors, Xu Xiaonian, Chen Weiru and Zhang Weijiong, gave internal lectures, and four cross-strait entrepreneurs talked about the pain points and directions of the transformation and innovation of traditional enterprises in the O2O era.


Chen Weiru had a dialogue with Li Tiantian, the founder of Lilac Garden, and also guest-hosted three other dialogues: Zhu Mingyue, founder of Zhubajie, dialogued with Gu Yihua, general manager of Guanyan Trading Co., Ltd., and Zhang Rongrong, founder and chairman of e-bagwashing, dialogued with Wangpin Group The chief representative of the mainland, Yingmeihui, and Cai Lihong, the deputy general manager of eHi Car Rental, had a dialogue with Huang Shengzhong, the deputy general manager of Qinwei Tuzi. This article is compiled from four blockbuster conversations.


1. Either platform or platform-based survival?




Chen Weiru: I think the two of them are doing some innovations in the service industry. One is Zhu Mingyue, the founder of Zhubajie.com. Mingyue used to be a reporter and started building a service transaction platform ten years ago.


Zhu Mingyue: Thank you. I myself have two very important life experiences. I worked as a media reporter for the first eight years. In 2006, I founded the current company called Zhubajie.com. Zhubajie.com is actually an online market, but this market transaction is not a product, but a variety of tertiary industry services, such as design, development, and marketing. Although there are 60 million small, medium and micro enterprises in mainland China that have such rigid demands, this is a serious low-frequency, non-standardized business with very rational decision-making, which is very difficult to do.





In 2013, I went to the Beijing class of China Europe International Business School. After the class was over, the doubts in my mind were gradually resolved. Zhubajie.com has been in business for eight years. Apart from taking commissions for each transaction, what is the core value that has accumulated over the past eight years? That is more than 10 million talents with professional skills and 5 million customers of small, medium and micro enterprises.





These massive users and data are equivalent to the ocean. Can we make drilling platforms and provide extended services? So we opened up a well for trademark registration, and this well can bring us a few hundred million in revenue. So we went back and waived all commissions, the deal size exploded, and we went further to drill more wells.





Chen Weiru: Thank you Mingyue. He shared two experiences. First, if you're seeing a trend that predates this era, you first want to make sure you stay alive, not burn a lot of money and die before dawn. Second, how to turn a bad hand into a very promising industry. Gu Yihua, an EMBA alumnus of CEIBS Class of 2006, shared below. She used to be the general manager of Telliwu, Mandu International and Guanyan Trading.





Gu Yihua: Hello everyone, today's topic is O2O, which is very touching to me. A company I am currently serving is called Thermos China. It is a brand company with two brands in the world for more than 100 years.





Why has Magic Cooker maintained a high growth rate of 30% in recent years, far exceeding its peers? The most crucial reason is that we make full use of the Internet. Not only sales, we have also developed an online and offline competition mechanism internally. Let the two lines continue to expand in the competition, and even our sales team began to lead the production of products, and even told the production end that customers like this kind of thing. In the past, the sales were for what, but now they have to understand what customers want, and push our production chain back from the market chain.





Chen Weiru: Thank you. You have also worked for Telluride and Mandu International. Some people think that these industries that require offline experience cannot be influenced by the Internet. What do you think?





Gu Yihua: In fact, when I was the general manager of Mandu International in China, we have been discussing how the hairdressing industry will be Internet-based. The nail industry O2O is very popular in the mainland, but it is a little difficult for the hairdressing industry to do this. But whether the hairdressing industry may come out in the form of Uber in the future, these are very imaginative. I am convinced that disruption will happen in every industry, sooner or later.





Chen Weiru: Recently, the Beaver family has also started to open offline stores. I realize that Mingyue is also doing this. Can you explain the logic of this?





Zhu Mingyue: I think many people have a great misunderstanding of platforms and O2O. I thought that a platform must have a website, and O2O must come to the door. But I don't think so. Just now, Mr. Gu talked about shampooing. In fact, there is a good model now. He is still a platform. He first opened a lot of such stores offline. In each store, these barbers are platform-based, and users It is also through the APP to place an order to the offline barber shop. Every master in the barber shop is a platform-based docking. This kind of not going to the home to the store is also a change in the form of O2O. In my opinion, the future must be the boundary of a company, and the boundary of the platform is becoming more and more blurred. The future world must be a world of "platform to small B", and the person who is the platform is responsible for aggregating demand and formulating its rules of the game. There are many professional small Bs, they are responsible for the profession, they live on such a platform like a USB flash drive, and cooperate with each other for a win-win situation.





On Zhubajie.com, there are now more than hundreds of thousands of designers. Even if he is only one person, he is not a C, but a small B. Because he is on this platform for his livelihood. This is the world of "platform to small B".





In the next 10 years, Zhubajie.com will build an offline park platform to integrate online and offline parks. Is the platform really only in the online virtual world? No, according to the needs of this user experience, the online part will be online, and the offline part will be offline.





Chen Weiru: Both have strong user thinking. If there are two sides of the platform, one might be a maker and the other might be a business owner, what do they need? Makers need to be incubated and educated, and Mingyue has started to be an offline incubation platform. Summarize in one minute, what will the world develop in the future?





Gu Yihua: No matter what you are doing today, you should take into account the nature of business.





Zhu Mingyue: In the past few days, I have communicated with friends in the design and entrepreneurial circles of Zhenghe Island and Taiwan. On the one hand, their dedication to design requires people from the mainland to learn. On the other hand, these colleagues in the cultural and creative circles in Taiwan cannot just live in their own small happiness. Because the world is undergoing drastic changes, when you made good works in the past, others found you through word of mouth. But now, customers have gradually shifted to the platform, not only small and medium-sized enterprises, but also those top 500 companies in China and the world's top 500 companies have begun to look for talents on Zhubajie.com. This is an irreversible trend. Only by believing in the future can we have the future. In the future, either you will be a platform, or you must learn to survive on a platform.






2. Can the spirit of craftsmanship and the outlet have both?




Chen Weiru: Thank you. The next two are Zhang Rongrong, the founder and chairman of e-bag washing, and the other is Yingmeihui, the chief representative of Wangpin Group in mainland China. Both of them are still a high-frequency and just-needed career. Glory to you come first, why did you start e-bag washing in the traditional laundry business that has been in the palace for 20 years?


Zhang Rongrong: Thank you. I have always been a big fan of Professor Xu Xiaonian. I will follow him wherever he goes. But later I found out that I would lose money listening to Professor Xiaonian, my family might fight with me, and the company employees might leave me. So I summed up my own "best" theory on the basis of Professor Xiaonian.





First and foremost is belief. There are too many business people in mainland China and too few entrepreneurs. I studied at CEIBS in 2002. At that time, I was very good at calculating finances in my class. As a result, I did not invest in real estate and the stock market for more than 10 years, which basically washed me away. Until now, I can finally exert my strength, but many people say that the valuation of e-bag washing is high. However, when they made a lot of money by speculating in houses and stocks, I cried anxiously in the snow. So when the mobile Internet came, I was fortunate not that the company was still alive, but that life was still alive. For the past 20 years, I have been suffering in pain every day. Why is this suffering? is belief.





The second is professionalism, which is the craftsman spirit that has been hot recently. Professor Xiaonian wants us to be craftsmen forever, but I think that while maintaining the spirit of craftsmanship, we need to consider whether there is a trend in the surrounding area. If the 100 gold mines nearby may be dug up at any time, you can’t keep thinking about how to dig the gold mine in your hand, because maybe you only need a shovel nearby to dig a big gold mine, otherwise your team may run out. There is no shortage of craftsmanship in Taiwan.





Third, the tuyere of the service industry is coming. All people in Taiwan who have excellent experience in the service industry, hurry to the mainland, you have too many opportunities.





Fourth, trends. The core of the mobile Internet is two, the first is the huge number of users, and the second is stickiness. It's like a guy, a bunch of girls like you, and these girls stick to you all day long, then you will naturally have more commercial value.


Chen Weiru: Thank you Glory. Next, please share with us that Yingmeihui is the most successful restaurant group in Taiwan, with more than 400 stores in the world and more than 130 stores in the mainland.





Yingmeihui: Yesterday I attended the annual meeting of the China Chain Store Association, and I was really touched. First of all, the traditional catering industry has to face the Internet, because the Internet has brought about huge changes in the catering industry. In the past, the Internet was only to assist in the drainage, but today the Internet has hit us. For example, e-commerce, because e-commerce has brought about the closure of the distribution industry, two-thirds of the retail industry in the shopping mall has collapsed. In the past, only 20% of the catering industry was used, but now it has six floors or even the entire building is full of catering. Such competition can be imagined.





Another point, many post-80s and post-90s crossovers into the catering industry, bringing a brand new catering consumption experience. Just like yesterday I asked a post-80s restaurant owner, I asked him what is the reason for your success? He only told me one sentence, because I was born in the 85s and I understand the post-90s.





A very cruel sentence, so what role does the traditional catering industry play in the process of change? Later I figured out, does a business need to grow bigger, stronger or longer? Yes, the Internet can make an enterprise grow rapidly, but if you want to become stronger and longer, you need more precipitation. This may be the opportunity for those of us traditional enterprises. Wang Pin has accumulated for so many years, why can't he change his thinking and become an incubation platform for the innovative catering industry?





Chen Weiru: Thank you. Please take a minute to share with you, what do you think you want to do in the next three or five years in terms of living locally? Why?




Zhang Rongrong: First of all, we must analyze the characteristics of the mainland. I think there are three, first, what does the mobile Internet mean? The mobile Internet is different from the PC. The PC is just technology, and the mobile Internet is a man-made thing. It affects everyone. Even if you cannot vote, you can speak up.





Second, family planning. Family planning has not existed for 5,000 years, not anywhere in the world, but in China. So why are the post-85s so individual? Because he was not like us back then.





The third point is that Xi's policies are open and transparent, which has brought us a lot of opportunities. The higher the service factor of traditional enterprises, the less likely it is to be replaced by the mobile Internet. When you do a good job in the experience, I don’t think it can be replaced. What e-bagwashing needs to do is a shared ecological platform based on the mobile Internet for mutual assistance between neighbors. We rely on Uber for travel, and our little e-housekeeper if we do not travel. Thank you.


Yingmeihui: What I have been thinking about is how to give our consumers an innovative experience. This innovation may come from the non-catering industry, and it is more like a cross-border learning, thank you.






3. Let users generate new business for you




Chen Weiru : Next, we enter an industry called transportation. Cai Lihong, the vice president of eHi Car Rental, a company listed on the New York Stock Exchange, and Huang Shengzhong, the deputy general manager of Qinwei Tuzi. Lihong, can you analyze which direction the car rental industry will go in the future?


Cai Lihong: There are three “importances” in the car rental industry: First, the operation is important. At present, we have a presence in more than 400 cities in China. Second, heavy assets, we now have more than 40,000 vehicles, all of which are owned. Third, focus on the brand. These "heavy" in turn have become barriers to an industry, giving us an opportunity, and I am very optimistic about the future.





At present, there are about 240 million people in China who have a driver's license, and the number of private cars is about 110 million, which means that there are 130 million people who have a driver's license without a car. These are my potential customers. Secondly, many young people are reluctant to buy a car. On the one hand, they think that the efficiency of the car is too low, and on the other hand, there are also restrictions on the policy. So sharing vehicles is likely to be a big trend in the future.


Chen Weiru: Thank you. Qinwei Maps is an electronic map, which occupies more than 70% of the market share in Taiwan. This electronic map is also in the so-called mobile Internet boom. Which direction do you want to go in the future?




Huang Shengzhong: Our company was established in 2000. By 2010, we were just a map supplier, without our own front-end outlet. Later, I found that this was very dangerous, and I started to go to the front. The competitiveness of this industry is not in asset protection, but in the frequency of data updates.





How to do it? Instead of increasing our manpower to sweep the streets, we did the opposite. 2010 happened to be the first year of the rise of smartphones, so we focused on this market. We don't care how much money you make from selling the product, but what useful information I can get from you. That is to say, it uses the base of users to generate new business. When we did road conditions later, we didn't spend any of our team to collect road conditions. All this information came from a large number of users behind me. For example, when he suddenly brakes in a certain place and continues to drive when it drops to about the speed limit of the road, there may be new speed cameras there.





Chen Weiru: Thank you Shengzhong. In the past, Qinwei may have been embracing data, but now it is embracing users, because users will bring us data. You two estimate how the mobility industry is likely to change over the next five years.





Cai Lihong: First, how big will the car rental market be in five years. After the development of this industry over the past 90 years, there are only three groups left in the entire U.S. and Canada market. In the future, China will definitely reach such an oligarchic market one day. It is impossible to have only one, but it is impossible to have two groups like today. Thousands.





Second, Uber’s model is actually complementary to the car rental industry. Uber is a short-distance, car-sharing service with a driver within 50 kilometers, as long as it exceeds this distance, it will definitely be my customer.





Third, once the driverless technology is implemented, it will definitely be disruptive. Assuming that my car can be driverless in the future, my car will be like a horse in the future. When a consumer gets in my car, when he reaches the destination, when he presses the button, the car will return by itself. Going to my store, the scene is very subversive.
Huang Shengzhong: In my opinion, "O2O" is not only Online To Offline, but essentially how businesses face consumers directly. It's not just about changing the operating model of the business, it's flipping it. In the past, companies relied on a wise leader to lead everyone forward, but now companies directly face consumers to obtain data, and let the data speak, not any boss.





For example, navigation always likes to recommend the "best path" for users, but who defines this "best". In fact, everyone's definition is different. Some people just prefer to spend a few kilometers on the highway, and some people just feel uncomfortable when they see a red light, so there is no such thing as the real best. Therefore, in the past few years, we have been studying the differentiation of users on the route, and made a personal route planning model.





When we first started doing mobile navigation, someone asked me, didn't mobile navigation disrupt your business in car navigation? I say it's called layout. I want everyone to become a road idiot. When everyone is more and more accustomed to using mobile phones to navigate, who can know how many roads Taipei has and when to turn. When everyone becomes a road idiot, navigation becomes an important part of the car, and this is my market.






4. Can you learn the craftsman spirit in Taiwan?




Chen Weiru: Thank you, I didn't expect that there is a need for idiosyncratic navigation. The last person we visited was Li Tiantian, the founder of Lilac Garden. Lilac Garden covers nearly 60% and 70% of doctors in China. Has your platform made money?


Li Tiantian: Community is an online form of organization. We started with the advertising model, and later we started to involve job-hunting, e-commerce, data and other businesses, and now we have begun to provide a service to B. In short, by turning this resource of doctors into a form of monetization, the company's normal profitable development has been achieved.





Chen Weiru: I heard that you have recently started to set up offline clinics. What is the reason why you started to set up offline clinics from the online community platform?





Li Tiantian: We started offline clinics last year, and now we have opened five stores. I have experienced a lot of online medical treatment, and even dizziness, a common disease, cannot be effectively solved. The highest principle of medicine is patient safety and medical quality. Without the support of offline platforms, it is difficult to provide a comprehensive and valuable service. If you want to truly leverage this industry, you must have your own valuable services, so we Going offline, of course, this is a big challenge.





Chen Weiru: Finally, I would like to ask some predictions about the future medical market and environment, what the hospital assumption will become in the future, or in the so-called future trends you think about, which part of the system you may have?





Li Tiantian: First, I think the potential development area in the future is chronic diseases. By 2025, 70% of the diseases will be chronic diseases. The number of diabetic patients in mainland China has exceeded 100 million, and the number of hypertensive patients has exceeded 300 million. There will be a huge market for chronic disease management, rehabilitation and education. The mainland's health care system does not cover these areas. In contrast, Taiwan's advantage is very obvious. The craftsman spirit embodied in Taiwan's elderly care system and chronic disease care system is amazing. A month ago, I went to Taiwan to visit a clinic in Luodong Township, which does diabetes management. We were full of confidence before we went because we were doing it, but when we got there, it was a shock. How detailed is the service? The patient's dietitian can accompany the patient to go shopping for food on the street and instruct the patient on the sugar content in the food. This craftsmanship has impressed us and is worth learning and learning from the mainland.





Second, I think the business model should have three characteristics:


❶. Put the value of patients at the center, ensure safety, and improve quality.
❷, data-driven. The ultimate goal of the medical industry is data integration capabilities, because service capabilities are driven by data.
❸、The ability to connect with other industry partners. The medical industry is too big and complex, and no one can do it alone.




Chen Weiru: After listening to the conversations above, I was thinking, is it possible for Wangpin to offer the Wangpin diabetes package? Is it possible for e-bag washing to be a small e elderly care housekeeper? Is it possible for ehi to do ehi vaccine? The connection ability of small partners in this industry is very critical. Only in this way can you finally make an open platform and finally build the entire ecology.