Rebirth starts from e-commerce

Chapter 257 The Second Moat
Luo Xiu drew a few circles on the whiteboard in the meeting room, representing several main opponents, and because of the first-mover advantage of Fantuan, the current circle is the largest.

"I have met many investors, and most of them think that the essence of this business is a zero-sum game. Everyone throws money at each other, and some people continue to lose everything in the middle of the game, until the last person left in this game eats All funds on the floor."

After Luo Xiu finished speaking, he surrounded all the small circles with a big circle, and continued:
"When there is only one company left in the market, he has the pricing power. Consumers can only be forced to accept high prices, while cooperative merchants can only be charged high deductions. The platform takes both sides and harvests the market."

"Is there something wrong with this?" Li Shan asked.

"Yes, but not absolutely."

"Brother Xiu, don't be foolish, tell me quickly!" Li Shan was about to die of anxiety.

"If business is that simple, then whoever has the most money will have the last laugh, then no new companies will rise in this world, giants will grow bigger and bigger, empires will never fall, and warriors will never be able to defeat dragons."

Luo Xiu walked to the window and looked out the window: "In fact, there is no eternal empire in this world, no invincible dragon, and those small companies that are not favored and have no resources are also developing rapidly."

Back then, no one was optimistic that Taobao could beat eBay, and no one was optimistic that Pinxixi would be able to seize a place in the e-commerce field in the future.

"If we win our opponents just by throwing money at us, then when we want to raise prices in the future to make money back, new opponents will come to fight us with money, and one day we will be beaten round after round. The opponent of the round runs out of money.

"Our opponents will think they are warriors and keep charging at our dragon.

"Money is always the most important thing. Without money, we can't do it, but our opponents also have money. In addition to money, we have to have our own advantages.

"We've got to dig a deeper moat, a river they can't fill no matter how much money they spend."

Luo Xiu continued to write a few words on the whiteboard: user, product, service.

"What are our opponents spending money on now?" Luo Xiu asked.

"Plunder users." Li Shan replied without thinking too much.

"That's right, they spend money on advertising and subsidies, all in order to get more users. There is a word on the Internet called customer acquisition cost, which is how much it costs to acquire a user.

"They think that users are their own assets, and they think that users are a brick of the house, but they are not. If you can't get high-quality services and products on your platform, the users you bought with money will lose.

"Of course we also need to spend money on advertising to acquire more users, but retaining these users is our core competitiveness."

To put it bluntly, everyone knows that users must be retained, but how can they be retained... Li Shan didn't say what was in his heart, because he knew that Luo Xiu said so, and there must be his way.

Luo Xiu drew a circle on the word "service".

"Our fantuan has always attached great importance to service before. We combined with takeaway, built our own urban distribution system, and created a one-hour home service. This is currently impossible for other group buying websites. This is our first moat. The main reason why we are temporarily ahead of other group buying platforms.”

Luo Xiu drew a circle again on the word "product".

"The ultimate goal of our group buying platform is to sell products to customers, and the fundamental purpose of customers coming to our platform is to buy affordable and easy-to-use products. Next, we will build a second moat on the product side."

Li Shan raised a question: "But the products we sell can be sold by competitors, and Pinru's product line is not wide enough to support the demand for rice balls."

Luo Xiu asked back: "Do you know why our group buying performance was so high last month?"

Li Shan replied without thinking, "Because we have Apple phones."

"Specifically, because we are the exclusive distributor of Apple's e-commerce channel this year, and I gave you most of the goods, leaving only a small part for Taobao and JD."

Guan Shiyu, who has been silent all the time, also raised a question: "But there are not many irreplaceable brands like Apple?"

Luo Xiu smiled slightly, "When we only have Procter & Gamble, customers can choose Unilever; when we only have Durex, customers can also choose Jasper, but what if we have 1 brands? "

"1 brands? How many people do we need in our company to operate so many brands?"

Li Shan expressed shock at the bold idea.

A standard agency operation team must have a store manager, promotion, design, event specialist, customer service... at least a few people, and as many as dozens of people.

I can't imagine how difficult it is to manage a company with tens of thousands of people.

Guan Shiyu added: "We can't find so many brands in a short period of time, and it's impossible to have so many employees, right?"

Luo Xiu said confidently: "Our double eleven sales in the past two years have been too explosive, especially after the double eleven last month, our company's phone number has been ringing, and countless companies want to cooperate with us .”

Now that e-commerce has just emerged, everyone still doesn't know how to operate a store, especially traditional enterprises, they don't understand e-commerce even more.

For them, the best way is to find a mature e-commerce operation company to help them develop e-commerce channels.

Obviously, no company is more professional than Pinru.

For this reason, Luo Xiu set up a huge investment promotion department to connect with these brands.

Li Shan asked again: "Even if there are so many brands, how can we solve the problem of manpower?"

"For those first-tier brands with high enough profits, we will operate them ourselves, and only we can serve them well. As for the second- and third-tier brands, my idea is to subcontract them out."

The students in the entire university city saw Luo Xiu's sudden wealth in the past two years.

Also because of his leadership, countless students started e-commerce businesses after graduation, not to mention those students who originally majored in e-commerce.

Their small studio with two or three people faces the biggest difficulties of goods and funds.

They don't have a good brand in their hands, nor do they have enough funds to start their own brand, and they still have no way to expand their business.

At this time, if Luo Xiu can give them start-up capital, give them a brand, and give them guidance on starting a business, the probability of them being able to make a fortune will be greatly increased.

Coupled with various supporting facilities around, it is enough to attract e-commerce talents from all over the country to go to Yangcheng.

When Luo Xiu has thousands of e-commerce studios, tens of thousands of brands, and hundreds of thousands of employees in his hands, the moat will be completed.

No matter how much money other people invest, they cannot copy it, because the opportunity is only this time.

(End of this chapter)