Internet Business Thinking

Chapter 35 New platforms and new ways of playing in the Internet era (3)
Group-buying websites gradually got rid of the brutal and impetuous development model before, and their industry structure has become increasingly stable by 2013.If the group-buying industry during the war of thousands of regiments was the era of group-buying 1.0, then as most of the good and bad websites were eliminated, until Meituan became profitable and further widened the gap between companies in the industry, the group-buying industry has reached the era of group-buying 2.0 .Wang Huiwen also believes: "The future structure of the group buying industry will become increasingly clear, forming a ratio of 7:2:1, that is, No.1 accounts for 70% of the share, No.2 accounts for 20%, and the remaining ones account for about 10%. %."

In the era of group buying 2.0, there will be three major trends in the industry:
1. The mobile terminal will become a huge power channel.The transaction volume of some group buying mobile phones has begun to catch up with that of PCs.At present, 30% of Groupon in the United States comes from mobile phone purchases, while Meituan’s monthly transaction volume from mobile terminals has exceeded 3 million.

2. Third- and fourth-tier cities will become a hot spot for a new round of competition.As Wang Huiwen said: "The national development policy for small and medium-sized towns and the popularization of mobile terminals such as smart phones have made the online consumer groups in third- and fourth-tier cities more mature, and people have more demands on the surrounding consumption environment. What we have to do It is to meet the needs of consumers.”

3. The group buying industry will become increasingly vertical.Various vertical products such as hotel group purchases and movie group purchases are gradually increasing. Wang Huiwen took Meituan's "Maoyan Movie" as an example and said: "Consumers need to have a complete experience process when watching movies. If a person Go to Douban to check movie reviews, then go to Mtime.com to check movie news, then go to Meituantuan to buy tickets, and finally go to consume, then this experience is too bad. Meituan Maoyan Movie is to help consumers improve this experience, you can choose' There are group tickets that are “cheaper”, coupon-style general exchange tickets, and seat selection tickets with a higher unit price and better user experience. This is an O2O closed-loop product.”

(Section [-]) The ever-changing platform strategy is inseparable from the user experience

Adopt the O2O business model to provide various services and products to the franchise stores through the e-commerce platform, and the franchise stores rely on the computers or smart phones in their own stores to sell corresponding services and products to end users. 19e's business operation model belongs to the B2B2C form, but it is not responsible for logistics services, so 19e is actually a platform provider.

“让生活更简单”，是成立于2009年的北京一九易站电子商务有限公司（简称19e）追求的价值理念，也是其商业逻辑的起点。2012年，通过19e平台交易的流水额突破200亿元。目前，19e每月有超过5000万人次的交易。19e还获得了红杉资本中国基金的战略投资。19e的商业秘诀在哪里？为此，19e副总裁张晓军接受了《经理人》采访。

Relying on offline franchise stores

19e adopts the O2O business model, that is, offline and online interoperability, but it mainly combines offline transactions with Internet applications through more than 30 offline physical stores covering the community.

Through the 19e e-commerce platform, franchise stores provide users with a variety of convenient services such as phone bill recharge, game recharge, utility bill payment, credit card repayment, and lottery ticket purchase.In terms of specific business operations, the operation mode of 19e can be divided into two links: first, 19e directly cooperates with the franchised physical stores, and provides various services and products to the physical stores through the e-commerce platform, and the two parties share interests according to certain profit methods. Sharing, in order to motivate the physical store side.Secondly, as a terminal link, physical stores rely on computers or smart phones in their own stores to directly sell corresponding services and products to users through the 19e e-commerce platform, and obtain benefits from them.

It can be seen from the transaction process that 19e does not actually contact end users, so from this perspective, 19e's business model can be understood as a B2B2C form.

Build an open platform

While actively expanding offline channels, 19e is also constantly improving its industrial chain. Since 2013, it has built an open platform to provide sales channels for ASPs (product service providers), covering tens of millions of users every day.It builds a complete industrial chain together with offline franchised physical stores, upstream products and ASP.Through this chain, manufacturers who lack sales channels and desire to expand the market can cooperate with 19e, enter the open platform of 19e, and sell their products or services to end users.

As a result, the profit model of the open platform 19e will change.In the early stage, the profit model mainly relied on the spot price difference of products and services, and earning service fees from the open platform will become an important profit method in the future.In addition, 19e also launched an app based on the mobile Internet, namely "Handheld 19e".

Gather two major business resources
In order to ensure the effective operation of its business model and open platform, 19e set out to gather two major business resources: physical franchise stores and numerous distributors.

In terms of physical franchise stores, 19e actively expands the two modes of single store franchise and the introduction of chain store cooperation.At present, 19e's physical franchise stores cover convenience stores, communication stores, newsstands, Internet cafes, etc., and the number is increasing rapidly. The strategy adopted by 19e is to join and cooperate for free.For a single store franchise, as long as it has a physical storefront and a computer or an Android smart phone, and can access the Internet.For cooperation with chain stores, 19e's strategy is to let chain stores become its distributors.The scope of chain stores covers supermarkets, tobacco and alcohol, communications, real estate agencies, hotel chains, pharmacies, etc. 19e adopts a customized cooperation model to cooperate with them, thus making the team of 19e dealers grow stronger and stronger.

19e's current and future planned products and services include: movie ticket sales, courier collection, ordering flowers, cakes, housekeeping services, etc., relying on the fact that offline franchise stores are close to consumers, the convenience e-commerce platform will become more The bigger it gets, the more comprehensive its service products are, and it always serves the core demand of the common people for "convenience".

(Section [-]) Show Mode: Relying on user "relationship" and "favor" to cash out

In the first round of online video shuffling, Liujianfang was forced to find another way.Unexpectedly, it turned crisis into opportunity and discovered a new blue ocean of social video. This new model has strong customer stickiness. Users generate content by themselves, and cash out by "relationship" and "favor" between users.

Liujianfang belongs to the first batch of companies that received investment and were the first to develop online video. At the beginning of 2006, Liujianfang became popular on the Internet with "A Murder Caused by a Steamed Bun" and became the No. 2008 video portal for a while; during the financial crisis in 2009, Liujianfang was hit hard for the first time, and in desperation, it was the first to start transformation; in 2013 , Liujianfang successfully launched the transformation product "show field", pioneering a new market for social video and online performing arts, and became the first profitable company in the industry that year; in 5000, according to the data provided by iResearch, Liujianfang has become the largest It is a social video and online performing arts platform with a monthly coverage of nearly [-] million users.

The model of Liujianfang in the early days was similar to that of Youku and Tudou, but it is completely different today.Today's Liujianfang mainly relies on user fees, Youku Tudou, etc. to make profits by advertising.

In the first round of online video reshuffle, Youku and Tudou seized the opportunity to leave many close competitors far behind, and remained the industry leaders for many years.However, they are still plagued by annual losses of several hundred million.However, Liujianfang was forced to find another way in this round of reshuffle. Unexpectedly, it turned crisis into opportunity and discovered a new blue ocean. Although the scale is not as large as the traditional video model for the time being, its cash flow and profitability are very good.

"The Internet has a particularly good gene that is revolution. You need to subvert some existing rules. Whoever is strong will subvert others. Only in the thrill of this subversion can you better prove your value. People who do the Internet Waiting for a miracle, nothing lasts forever. Large and small companies will never feel safe, and must find a place where they can survive temporarily before the next wave of product changes." Liu Yan, CEO of Liujianfang, said in an interview with "Manager" .

Start-up show mode

After "A Murder Caused by a Steamed Bun" became popular on the Internet, Liujianfang quickly became popular and became the number one video portal in China.But the video network is destined to be a rich man's game. Under the momentum of capital, all participants are desperately burning money. Whoever has money can live.However, everything came to a screeching halt after the 2008 financial crisis.

Faced with financial pressure, Liujianfang began to consider transformation, and it boldly positioned itself in the UGC (User Generated Content, User Generated Content) live broadcast mode. On December 2009, 12, the "show field" was officially launched, and users can display talents, e-sports, online training, etc. through the live video room.This model is highly interactive and not subject to geographical restrictions. Based on similar hobbies, circles and fan culture can also be formed, resulting in strong user stickiness.When these are formed one by one, its business model is gradually clear.

"The interactivity of the community is the biggest difference between Liujianfang and traditional video sharing." Liu Yan said, "In the original video sharing of Liujianfang, users did not know each other. After the transformation, consciously build a community around social video, There is a gradual relationship between users, constant communication and content.”

Realize by relationship

In the show mode, Liujianfang has gathered a large number of talented young anchors. They are equivalent to owning a "network live TV station" in Liujianfang, where they can show themselves at will and interact with fans who like them.At present, there are more than 3 anchors who have formally signed contracts with Liujianfang.In the Liujianfang show, the total daily live broadcast time has reached more than 7000 hours, and the average number of daily coverage has reached more than 500 million people.

For traditional Internet companies, 500 million is nothing at all, but in Liujianfang, these 500 million people will generate huge consumption energy.Liujianfang’s profit mainly depends on users’ consumption of virtual items. In the process of socializing, users can give each other virtual items, such as flowers, cakes, sports cars, airplanes, etc., and different items have different values. community virtual currency).Recently, due to the proliferation of private transactions of "six coins", Liujianfang began to crack down on "six coins" circulated through unofficial channels.

"It's normal for a person to earn tens of thousands of yuan a month by singing in front of the computer at home," Liu Yan said.To put it simply, singers and anchors sing online, and fans and viewers donate offline. This is the business model of the six homeowners.Under this mode, some singers earn more money than traditional commercial performances or singing in bars. , hold an online birthday party online, fans can buy tens of thousands of virtual cakes, and the singer will get a lot of commission income from it.

For these users, going online is not to listen to songs or talk shows, but to create a community of their own. The motivation of consumption has also risen from simply listening to songs online and buying gifts for their favorite singers at the beginning, to being for themselves. The right to speak in the community pays the bill. "In front of 1 people, coming in in a sports car and everyone chanting long live him, it's hard to leave with that feeling."

At present, the operating income of Liujianfang is about 4 million yuan for the whole year, and more than 3000 million yuan per month.Through new mergers and acquisitions, as well as clients covering mobile phones and PADs, Liujianfang is expanding the scope of users and profit margins.

Subversion of the traditional music market
The well-known musician Song Ke once said: "Traditional records are dead." Indeed, traditional music carriers such as records and concerts have been deeply impacted by the Internet, and the market space is getting smaller and smaller. In addition to big-name singers, many second- and third-tier singers and The survival of young musicians is very difficult.Liu Yan and Song Ke also conducted in-depth discussions on this, and they agreed that digital music will be the general trend.

The success of the online performing arts live broadcast gave Liu Yan the idea of ​​"saving the traditional music industry".Those talented artists, as long as they have the strength, can perform in the six rooms, and they will definitely earn income.In Liu Yan's view, "human affection" is a big market.This method of cashing out emotions has existed since ancient times, and now it is nothing more than restoring an ancient tradition through the Internet. "Li Bai was actually the biggest literary star in the Tang Dynasty. He became famous by writing poems, and then used the influence of writing poems to exchange for money and material. Li Bai's life is the same as that of many singers in Liujianfang show."

In addition to the online performing arts platform, Liujianfang also extends its tentacles to talent shows and concerts that combine online and offline. At the beginning of 2012, Liujianfang held a New Year's Eve concert in Wukesong Wanshida Sports Center, hosted by He Jiong, the head host of Hunan Satellite TV.In October of the same year, Liujianfang invested 10 million yuan and MTV to jointly create a large-scale singing competition "Singing Battle", which became the most domestic talent show with a total prize of 2000 million. Gao Xiaosong, Sa Dingding, Bao Xiaobai and other 266 famous musicians served as The judges, the top ten finalists were snapped up by major record companies.

"We never thought that Liujianfang would always rely on the model of online performing arts to survive. We must constantly think about innovation. Every six months, we will produce something new. I think every new thing may be a miracle. , but in the end it depends on whether the market results are good or not, so starting a business is to keep trying.” Liu Yan said.

(Section [-]) Playing with the Box World

In recent years, children's participation in the Internet has continued to increase, which is very worrying for many parents.Because in the eyes of many parents, the Internet is like opium, which will affect children's physical and mental health.Box World skillfully combines education and games, and becomes a space for making friends that stimulates children's potential and cultivates team spirit. Based on the children's SNS community, it strives to create a children's community that integrates online communities, film and television, books, and shopping malls. industrial chain.

With the development and popularization of the Internet, children's participation in the Internet is getting higher and higher.However, in the Internet industry, the development and operation of children users has always been a taboo. Both Ma Yun and Shi Yuzhu once said: "I don't make money from children." However, Box World under Zhejiang Bocai Media is based on the children's educational community. , trying to create a children's educational industry chain integrating online communities, film and television, books, and shopping malls.

Children's SNS that entertains and educates
In April 2009, Box World was officially launched.The box world is aimed at children aged 4-6 and their families. The children's puzzle community is a place for children to communicate and learn. It attracts children with interesting, beneficial and exploratory puzzle themes, entertaining and teaching. Focus on the experience of children's thinking development.

In the box world, every child who registers with a real name will be transformed into a small box that can jump and walk. "Every box needs to be opened to communicate with other examples, and it is also necessary to fill yourself up bit by bit through continuous learning." In the eyes of many parents, the Internet is like an opium that affects children's physical and mental health.But the box world cleverly combines education, puzzles and games, and becomes a space for making friends that stimulates children's potential and cultivates team spirit.Boxworld binds the accounts of children and parents. Parents can also log in to the community at any time to understand the growth of their children and communicate with them.

The box world community has more than 4000 million small boxes, where they share interesting things about school, discuss academic problems, and make friends from all over the world.

In 2010, on the basis of the online community, the box world further deepened children's SNS, and launched the world's first professional children's microblog platform - box push, to further meet the social needs of these young adults.In BoxTuiTui, children can express their feelings, participate in topic discussions, share pictures and texts, share audio, and make many good friends. In 2013, BoxTuiTui created an original voice microblog, and the average daily number of tweets exceeded 10.

Movies are brand tipping points
Although registered users need to recharge and exchange virtual currency boxes to obtain services such as games provided by the community, this is not the main source of profit planned by Boxworld.Around 4000 million users, Box World has successively launched services such as Box Books and Box Mall.

So far, Box World has published 11 series and 75 kinds of children's books, which are deeply loved by children and parents.The box mall covers the children's consumer market of all ages with a series of toys, stationery, books, audio-visuals, clothing, shoes and hats independently developed by the box world.The mall adopts a three-dimensional development model of online plus offline. The monthly sales of the online box mall exceed 10 yuan; offline, it has 23 agents across the country, all over the country.

The main profit point of Box Movie in the future is the sale of products derived from Box Movie.In the vision of the box world, the Internet is the brand communication tool of the product, and the film will be the tipping point of the brand, which cooperates and interacts with the Internet.With the help of animation movies, Box World will establish a modern children's brand for 3 million children and their families, and realize commercial benefits through brand management.It's kind of like how Disney works.

In the summer of 2013, the 3D animation film "Kunta: The Box Story", which took 1 years and cost 3 million to create, will be released.According to Li Lian, "Kunta: The Box Story" was shot with a 3D camera, and two national patents were specially developed for this purpose, using CG combined with miniature landscape shooting to enhance the texture of the film.This also makes the film praised by industry insiders at home and abroad as: "a top animation film comparable to Hollywood's audio-visual quality."

(End of this chapter)