Internet Business Thinking

Chapter 14 Internet mobile battle - shopping is within a square inch (5)
In mid-to-late August, China Telecom and NetEase jointly released "Yixin" and tried to attract users' attention through a series of traffic incentives. New users and users who have reached a certain number of monthly activities can get a certain traffic subsidy.

It should be noted that the market prospect of traffic management is more than that.The list of the first batch of virtual operators was announced in October 2013. With the issuance of virtual operator licenses, as the business of telecom operators is no longer tightly controlled by the three major operators, and with the entry of private enterprises, The door to traffic management is completely open.

Compared with other companies, for Oupeng, virtual operators bring more opportunities. In December 2013, among the first batch of virtual operator licenses issued by the Ministry of Industry and Information Technology, its partner Telling Communication was included.It is no wonder that Song Lin is quite confident in Oupeng's traffic management: "Oupeng has experience in overseas operations, Tianyin can become a virtual operator, and Oupeng will have more space."

(Section [-]) Raiders!Subversive play mobile e-commerce

As a traditional business enterprise, on the one hand, Dongqi builds its own brand and grasps the initiative of the industrial chain; on the other hand, it creatively integrates the fan economy and the profit sharing mechanism of the transaction chain to create a brand new "QR code + micro-e-commerce" O2O This model is tantamount to revolutionizing the life of traditional mobile e-commerce.

Undoubtedly, the present is an era in which traditional industries are facing the accelerated impact of the Internet. The rapid changes in Internet technology and models allow it to infiltrate, change and even restructure traditional industries every day.The prevalence of the mobile Internet has exacerbated and deepened this trend.Under the surging tide, only subversives who can actively integrate resources and realize business model innovation with the help of technological changes in a forward-looking manner can successfully grasp the trend of the times and seize the opportunity in the competition.

Shenzhen Dongqi Group is just such a subverter. As a traditional business-oriented enterprise, it creatively integrates the fan economy with the transaction chain profit sharing mechanism to create a brand new "QR code + micro-e-commerce" O2O model, which is tantamount to revolutionizing the life of traditional mobile e-commerce.

Preparing for a rainy day in strategic transformation

The predecessor of Dongqi Group was Jimei Mingshang established in 2003. Since its establishment, it has focused on the high-end market, specializing in imported wine, top foreign wine, tobacco, etc. After changing its name to Dongqi in 2008, although it has appropriately set foot in catering chains, real estate investment and other fields, the traditional business sector has always been the core of this enterprise.

Xu Wenzhong, managing director of Dongqi Group, said that after years of hard work, Dongqi has become the largest tobacco seller in Shenzhen. It is also an important strategic partner of Martell, Remy Martin, Hennessy and other international wine brands in China. Medal of Honor awarded by the Italian Wine Institute.As a trading company, marketing channels are undoubtedly the top priority. In addition to having more than 20 directly-operated stores all over Guangdong Province, Dongqi has also established an in-depth strategic partnership with Sinopec, and can share nearly [-] Sinopec in Guangdong Province. One terminal retail outlet—Easy Joy Convenience Store.

Although on the surface, the development of the enterprise is smooth sailing, but Xu Wenzhong felt the hidden worry behind it. "Only being a distribution agent without our own brand is always controlled by others. The national tobacco monopoly policy and the monopoly of big brands are all very realistic constraints. Coupled with the impact of Internet e-commerce, especially mobile e-commerce, our The profit margin and product development space are getting smaller and smaller, and the pressure is great.”

How to break out?After in-depth analysis and discussion, Dongqi determined its own strategic transformation path, which is to take the development path of branding, scale, standardization and mobile e-commerce, among which, building independent brands and innovative mobile e-commerce business models are the core The "two legs".

Self-owned brands take the initiative
Dongqi locked the breakthrough of branding in wine. At the beginning of 2014, based on the expertise and strength accumulated in its many years of operating high-end imported wines, Dongqi set a precedent in the industry and launched its own brand of imported wines: Dongqi Dreamland, Dongqi Love and Dongqi Star Diamond.

The reason why Xu Wenzhong dares to compete with many imported wine brands face to face comes from the advantages of his supply chain.Since 2003, Dongqi has established in-depth and stable cooperative relations with many foreign wineries. When the grapes are still growing on the vines, they are often bought out by Dongqi in advance, that is, overseas en primeur.For the brewing of its own brand of wine products, Dongqi has strict requirements, and selects high-quality grapes from a specific production area in Bordeaux, France.In addition, Xu Wenzhong is also full of confidence in Dongqi's professional advantages.Six or seven years ago, Dongqi began to reserve professional wine talents, and selected core backbones to study wine professional knowledge in France. Among them, many backbones have obtained WSET certification, and one has also obtained WSET Level 4 certificate. At present, the whole China can It can be said that there are very few people who have obtained this level of certificate.

The two major advantages of supply chain and professional accumulation have made Dongqi open up the industrial chain from overseas en primeur, overseas direct procurement to direct sales on the one hand, and on the other hand, it is also capable of cost control, quality control, and process management.At the same time, Dongqi is also constantly developing new products to enrich the category structure of its own brand. Recently, it will launch a new Dongqi series of champagne for KTV and nightclubs.

Dongqi Wechat Operation Mechanism
Subversive mode strong breakthrough
Having a self-owned brand is equivalent to holding the ammunition for strategic breakthrough, but how to maximize the power of these ammunition and "boom" a brand new path in the encirclement of traditional competitors and emerging e-commerce rivals, It has to rely on the fundamental innovation of the business model.Xu Wenzhong has been paying attention to and researching information technology changes and various innovative models brought about by them. After numerous brainstorming sessions with Internet giants and e-commerce operation experts, a subversive mobile e-commerce O2O model was born .

The core trading platform of this model is a micro-e-commerce platform.Dongqi cooperates with Tencent, and Tencent opens the port and provides a dedicated team to help Dongqi build a micro mall—— Dongqi Taste Wine Mall.Relying on this micro-mall, the QR code has become a powerful tool for information diffusion and promotion.Xu Wenzhong said: "At present, WeChat users have exceeded 6 million, and a powerful circle of friends economy and fan economy have been born around the popularity of WeChat. The profit sharing mechanism of the transaction chain is organically integrated, thus providing fans with information sharing and promotion, and providing a strong internal impetus."

This profit sharing mechanism fully utilizes the traceability function of the QR code.Everyone can register as Dongqi Wechat on Dongqi official website, and get an exclusive QR code, and then share, disseminate and promote Dongqi Taste Wine Mall in the circle of friends.As long as a WeChat friend scans the QR code to link to Dongqi Taste Wine Store and purchases products, the Dongqi WeChat account can share 8% of the transaction amount.

Xu Wenzhong emphasized that the role of Dongqi Weike is somewhat similar to that of Taobao. It is not only a fan of Dongqi Taste Mall, but also its disseminator and promoter. However, Taobao can only get one-time benefits, while What Dongqi Wechat obtains is an opportunity of permanent income that is not limited by time and space.Such a subversive innovation, it allows every registered Dongqi Wechat to obtain a share of the transaction income facilitated by its own efforts in this transaction chain.

Each transaction shares 8% of the income, isn't the price a bit high?Faced with this problem, Xu Wenzhong said with a smile: "This is what every wechat has worked hard for. We can't just look at the profit-sharing part. Looking at it from another angle, with the help of the promotion of these Dongqi wechats, we can save a lot of money. Philippine’s advertising investment, the same amount of advertising investment may not necessarily be exchanged for the corresponding sales revenue.”

Dongqi also has an unparalleled advantage over other mobile e-commerce companies, that is, Dongqi has a strong offline channel network, which consists of nearly 2000 Sinopec retail terminals and direct-sale stores all over Guangdong Province.Each outlet itself is a registered Dongqi Wechat, and consumers can enter the Dongqi Taste Mall by scanning the QR code on the promotional poster in the outlet.In addition, the publicity and promotion of outlets can also convert consumers into new Dongqi Wechat customers.At the same time, these outlets can also play the role of warehouses, ensuring that the entrusted third-party logistics companies can pick up and deliver goods nearby, thereby greatly improving the delivery efficiency and logistics experience problems that have caused headaches for various e-commerce companies, and finally creating a strong online and offline network. Combined mobile e-commerce O2O ecological ring.

In Xu Wenzhong's view, the "2 codes" plan in the "Thousands of Codes" plan launched by Ma Yun has similarities with Dongqi's "QR code + micro-e-commerce" O[-]O model.However, Jack Ma has no advantages in products and social networking, while Dongqi not only has its own brand products, but also has the support of a powerful social tool, WeChat.As far as the business model is concerned, Dongqi has been far ahead of Ma Yun's "[-] yards" plan.

Integrate resources and start sailing quickly

A few days ago, Dongqi Tasting Wine Store was officially launched.For this day, Xu Wenzhong and the entire Dongqi team have carefully prepared for a whole year.

How to quickly expand its influence after the micro-mall is launched, attract more consumers to pay attention to Dongqi Taste Wine Mall, and actively register as Dongqi Wechat or shop directly?In this regard, Xu Wenzhong is already confident that Dongqi Taste Mall will integrate various resources and start steadily.

For the future of Dongqi Taste Mall, Xu Wenzhong’s plan is to spend three months running in order to provide users with a good shopping experience, and hopes to accumulate millions of fans.With the subversive advanced model, resource allocation accumulated over the years, and professional and understanding of the imported wine industry, he has full confidence in the business prospects and capital potential of Dongqi Taste Mall.This might just be the beginning of it all...

(End of this chapter)