Media Tycoon since 1999

Chapter 386 Jingdong, never sell cheap

For Gao Yang's suggestion that Jingdong try to make home appliances, Liu Dong very much agrees.

Tonight, Gao Yang took the initiative to resolve some doubts in Liu Dong's heart, and Liu Dong also opened up his heart, telling some of his entrepreneurial thoughts back then.

Originally, Liu Dong set up a counter in Zhongguancun Computer City to make 3C electronics, insisted on making genuine products, and established the company's image. After seeing the success of Guomei and Su Ning, two chain stores of electrical appliances, he also wanted to create a chain of 3C stores.

The SARS epidemic in 2003 made Liu Dong quickly abandon this entrepreneurial plan and try to do intra-city e-commerce instead.

Gao Yang also suddenly realized that the Jingdong Mall in his memory came from this way.

With the 51 million capital injected by 3000 Group, this year, Jingdong's business expansion is still very fast.

In January, a wholly-owned subsidiary was registered in Shanghai. In April, a wholly-owned subsidiary was registered in Guangdong Province.

Moreover, there are traffic promotions on various Internet platforms under the 51 Group that cost almost no money. Now, Jingdong’s average daily orders in Beijing have soared to about 2200 orders, which is more than four times that of before the 51 Group’s capital injection.

The business in Shanghai and Guangdong has also improved greatly. Today, the average daily orders in these two cities have stabilized at around 800 orders.

Jingdong's national average daily total orders have reached about 3000 orders, and the development speed is very fast.

Fang Jian said with a smile: "Mr. Liu, I have a suggestion. If Jingdong starts to enter the home appliance business, the name Jingdong Multimedia will not be suitable. Moreover, the name is too long even if it only makes 3C products. Not very high."

Wu Ruohan said: "Brother Jian is right. I also think Jingdong Multimedia has five words in total, which are too long and a bit of a mouthful."

Liu Dong said with a smile: "Mr. Fang, Mr. Wu, our company has also discussed this matter. The original name Jingdong Multimedia is the same as the name of the physical store. We have already planned to change the name to 'Jingdong Mall'."

Wu Ruohan said: "Boss Liu, the name Jingdong Mall makes people feel a bit rustic."

Gao Yang said with a smile: "Ruohan, the name Jingdong Mall is quite good, first of all it is easy to remember and highly recognizable.

Secondly, the word mall can cover everything. No matter what products Jingdong sells online in the future, it will not conflict with this name.

Now, the name of multimedia is really not suitable. Of course, this is good for Jingdong's main business of promoting 3C products.

It is now renamed as the mall, and it is very appropriate to expand into the field of home appliances and other products based on the existing 3C products.

In terms of 3C products, the brand image of Jingdong has basically been established. When people think of buying 3C products online, the first thing that comes to mind is the word Jingdong..."

Fang Jian and Liu Dong both agreed with Gao Yang's opinion.

Shao Hanyun has always been an audience, and he doesn't express his opinions, but just has a heart to learn.

Liu Dong still admires Gao Yang very much. He started from a bitter cold and quickly expanded the 51 Group to its current scale, and has never received venture capital. Such courage, courage, ability and vision are very rare .

Liu Dong is also a man of temperament. Although he is only half a year older than Gao Yang, Gao Yang has always insisted on calling him Brother Dong. Liu Dong also appreciates Gao Yang's way of doing things.

Tonight, Liu Dong brought an assistant, just to drink a few more glasses of wine with Gao Yang.

As they drank and drank, their heads got together.

Liu Dong filled Gao Yang's wine glass again, and held up the glass: "Mr. Gao, without the support of you and 51 Group, Jingdong would not have developed so fast. I would like to toast you again..."

Gao Yang waved his hand: "Brother Dong, I won't take this glass of wine. If you want to treat me as a brother, then call me by my name, don't call me Mr. Gao again. In the company, brothers and sisters like Lao Fang and the others are all Don't call me President Gao..."

Liu Dong smiled heartily: "Okay, then I will call you by your name too."

Only then did Gao Yang take Liu Dong's glass of wine, and signaled Shao Hanyun to refill everyone's glass.

Gao Yang took the initiative to raise his glass: "Brother Dong, Lao Fang, let's have a drink together. We have one thing in common. We are both from poor rural families, and we are all from the North Piao family. We have always worked hard."

Shao Hanyun smiled and said, "Mr. Gao, I'm also from the North Piao family."

Gao Yang shook his head: "Yuan, you don't count, you are an urbanite from a big city. When it comes to suffering in the countryside as a child, you have nothing in common with us..."

Between men, there is naturally a lot of common language at one end of the wine glass.

Just like what Gao Yang said, he, Fang Jian, and Liu Dong are all men who have experienced hard times in poor rural families, and they have an extreme desire for career success in their bones.

After drinking for three rounds, Liu Dong suddenly said:

"Gao Yang, Fang Jian, I invite you to dinner today, and I have something else I want to talk to you two about.

Jingdong’s business has developed rapidly this year. Last year, I sought investment from venture capital institutions everywhere. I found forty or fifty of them.

Now it's the other way around, and some venture capital institutions have come to the door on their own initiative. "

Gao Yang smiled and asked, "Brother Dong, which VC agency is looking for you?"

Liu Dongdao: "[Today Venture Capital] was only established in Hong Kong Island earlier this year. The founder is a lady named Xu Xin, who is quite well-known in the VC circle.

Xu Xin is from the 60s, six or seven years older than us, and her hometown is Yuzhou. In the early 90s, she passed the CPA exam on Hong Kong Island. Later, she made equity investments in Peregrine and Holland Capital, and went to Huaxia District. General manager.

She has led investments in Wahaha and Yiwang, and is familiar with Yiwang's Ding.

This year, she started her own business as a VC. She built a company named [Today Venture Capital], and the English name is 'Capital Today'. With her influence in the circle, she raised hundreds of millions of dollars in three months.

A few days ago, Mr. Xu came to the door in person and talked with me about investing in Jingdong, but I haven't given a specific reply. "

Gao Yang asked with a smile: "Brother Dong, how did Mr. Xu talk to you, how much money is he willing to invest, and how much equity do he want to take?"

Liu Dong said with a smile: "Mr. Xu's plan is to invest 1000 million US dollars, with a minimum of 33% of the equity. I didn't reply to her directly, but said that I still need to communicate with 51 Group.

However, I think Mr. Xu's valuation of Jingdong is too low. Today is different from the past. After half a year of development, Jingdong has taken on a new look. We are also very confident about the next stage of development. "

Gao Yang smiled and said: "Brother Dong, you are right to think so, Mr. Xu valued Jingdong at 3000 million US dollars, which sounds like a lot, but in my opinion, it is too low.

Now Jingdong can be valued at 2 million US dollars no matter what. "

"2 million US dollars?" Liu Dong was stunned by Gao Yang's words.

Gao Yang said: "Yes, it is really worth 2 million U.S. dollars. Brother Dong, think about it. In 2000, what did Ali have? With Boss Ma's mouth, Softbank invested him 2500 million U.S. dollars.

The current Jingdong is more than ten times stronger than Ali in 2000.

Brother Dong, 51 Group does not seek to continue to increase equity in Jingdong. You can dilute equity by introducing VC capital and optimize the equity structure.

For example, if Jingdong is short of money now, 51 Group can also continue to pursue investment, and the capital invested will also be valued at 2 million US dollars.

Although Mr. Xu is from Yuzhou, she is backed by overseas VC capital. Let's not give overseas capital a chance to take advantage of it.

In addition, I suggest that even if [Today Venture Capital] recognizes Jingdong’s valuation of 2 million US dollars, it should invest at most 2000 million US dollars in her and get 10% of the equity.

Or if she invests 1000 million US dollars, she can also accept it, and the valuation of 2 million US dollars remains unchanged.

Brother Dong, with the cooperation of 51 Group, you must have firm confidence in Jingdong's development prospects.

Today's venture capital does not recognize the valuation of 2 million US dollars, but 51 Group does.

51 Group has never been open to VC agencies. To be honest, if we are willing to accept VC, then the current 51 Group will start with a valuation of at least 20 billion US dollars.

If I can't give this valuation level, I'm not even interested in talking about it.

Of course, I am just giving you an example. 51 Group’s projects will not consider introducing VC capital now. In the future, they will only introduce PE capital before preparing for the project’s listing and financing..."

Fang Jian said with a smile: "Brother Dong, just as Gao Yang said, with the backing of 51 Group, you don't have to worry about Jingdong's financial problems at all. Now you have the help of a payment tool like 51pay. According to your strategic plan for Jingdong Just roll up your sleeves and work hard.”

Liu Dong raised his wine glass and said with a smile: "Yes, roll up your sleeves and work hard!"

51 Group is too important to the future development of Jingdong. Not only did it invest 3000 million in time for Liu Dong, but the huge user traffic of its various Internet platforms helped Jingdong to promote and publicize, and it only charged a symbolic fee, which is almost equivalent to free .

Now, 51 Group will fully promote 51pay, a payment tool, which will also greatly help Jingdong's business development.

Liu Dong naturally has no dissatisfaction.

In the eyes of Gao Yang, overseas VC capital, whether it is the various project companies of the 51 Group or Jingdong, which is still in the start-up stage, has no chance of investing thousands of times in ten years.

Gao Yang opened up a cheat by himself, he is the most vicious VC.

The projects of 51 Group have continuously introduced Yiwang and Baidu to invest, which is essentially a form of VC investment.

Gao Yang didn't need these funds. What he needed was to join forces with Yiwang and Baidu to quickly improve the status of 51 Group in the world and have the right to speak in the circle.

(End of this chapter)