Reborn Entrepreneurial Giant

Qu Li was in Xiangjiang and took care of the matter of Time Jumei. Time Jumei has had a spin-off plan for a long time. Now the internal business of the two companies has been separated, the personnel adjustment has been basically completed, and various details need to be improved.

Why split? Perhaps in order to reassure some groups at home and abroad, Qu Li does not want Time Jumei to become a giant monopoly.

The rough split plan is as follows: e-commerce retail, logistics and distribution, private brands, and cloud computing will all be owned by Jumei; Time Book Video, WeChat Xiaohongshu, Shopify, financial services, and search businesses will all be owned by New Time.

The adjustment of personnel is even more interesting. Originally, Huang Zheng had become the third person in Time Jumei due to his merits (Lu Qi 1, Lin Bing 2), but unexpectedly he chose to resign.

After Qu Li had some exchanges with Huang Zheng, he knew that he wanted to do scientific research and do more meaningful things. Qu Li agreed to let him join Fanxing Research Institute, and at the same time, he represented Fanxing as the managing director of the board of directors of Time Jumei!

The chairman of Time Jumei is Lu Qi and the CEO is Dadongzi; the chairman of New Time, whose name has not yet been determined, is Lin Bing and the CEO is Xu Lei. Next is the company's internal adjustments:

Among the array of self-operated brands managed by the group, Shiguang Jumei currently includes: Xiangyun Sports, Mi Technology, Cotton Times, and Koala Food. They have become brands that the new middle class in China can buy with their eyes closed. The quality is guaranteed and the price is not high. As for the others that are still struggling under the Jumei Supermarket system, without Qu Li, it will be difficult to breed new brands in the future.

This is not to say that the executive's ability is a problem. Qu Li used to set the rules of the game, but he is someone who can circumvent the rules. Now that he has withdrawn from company management, he must abide by the rules. In any mature system, the need for stability is greater than innovation.

The formal split plan is for both companies to be listed on the securities market at the same time. The stocks held by shareholders at that time have not changed. Both companies are not short of money and do not need financing. Qu Li still retains his super voting rights.

Even with the split, Time Jumei is still huge. Jumei Logistics is already the number one in the country, surpassing EMS and SF Express in terms of size. Last year, it had a total revenue of approximately US$50 billion, and the number of global employees exceeded 1 million. Unfortunately, it is still not as good as Amazon Logistics’ revenue of approximately US$110 billion. Domestic and Southeast Asian express service fees are holding it back.

However, there are some problems with the statistics of the above income. For example, if Jumei Logistics takes an order to a remote village, delivers it to a certain district or county, and then hands it over to EMS for delivery, then the income of EMS is actually included in Jumei Logistics. This situation commonly occurs in major logistics companies around the world. For example, 43% of Amazon Logistics packages are delivered by third parties.

The other is e-commerce retail based on Jumei Logistics, Jumei E-commerce, Carrefour Supermarket, Jumei Member Store, Super Species; Juhuasuan E-commerce, Juhuasuan convenience stores, community grocery shopping; Shopee, these three are It is a relatively independent system. Private brands are also divided into two types: those owned by the group and those owned by Jumei E-commerce.

Their respective situations are different. For example, Carrefour Supermarket and Jumei Member Store are run by the same team. They are said to be offline entities, but in fact, the proportion of online sales revenue is growing faster, relying on strong supply chain management and private brands. Operations achieved profitability when domestic peers generally suffered losses.

Oh, that’s not right. Walmart, a giant company, is really powerful. It is constantly transforming its business. Online revenue accounted for 39% of its monthly revenue, and Sam’s Club accounted for about 22%. Last year, it achieved a net profit of 10 billion RMB.

Of course, in the eyes of outsiders, Jumei is the most terrifying. Their team can not only do a good job online, but also do a good job offline, exerting a strong synergy. For example, there were about 350 supermarkets/membership stores last year, and they achieved about 100 billion RMB in revenue last year, which is about the same level as Wal-Mart China.

As for Juhuasuan, no need to explain much. The number of convenience stores under its umbrella exceeds 6,000, ranking fifth in the industry. It has increased fourfold in just a few years. Fortunately, its losses have been controlled well.

There is also the business of community group buying of vegetables, which has been criticized. There is nothing that can be done about it. The most affected ones may only be the middlemen in the circulation of agricultural products, because community group buying is the largest middleman. In order to ensure the circulation and supply of goods, it is foreseeable that In the future, the phenomenon of "garlic, ruthless ginger, and army" will be reduced a lot.

As for the previous research institutions on artificial intelligence, big data, and blockchain, it was mainly up to them to fight for it individually. If the technical elites are willing to follow, they will follow. Anyway, the previous technologies and patents will be shared.

Preparations have been made. The specific time for the split will depend on the situation. It is best to wait until the stock can no longer fall, but Shijimei's decline is far less than that of Ali. Ahri has not gone out into the overseas market and has fallen into a bottleneck domestically. It has also suffered heavy blows from relevant departments, and the entire team is in a state of confusion.

Ali has advantages in e-commerce, local life, and Internet finance. Cloud computing, international commerce, and entertainment are pretty good, but they don’t have commendable technologies, such as self-developed cloud computing and self-created Ant Forest. Coupled with the e-commerce business being overtaken, the business status is not as good as before.

Therefore, Ali, who is seeking change, has expanded its live streaming to sell goods. Douyin has caught up from behind. Fortunately, there is Instagram short video. Although it lags behind, it does not fall behind. Now that it is about to be split up, this business has become a shortcoming of Time Jumei.

But Qu Li doesn’t care. Live streaming is possible, but the value of this model is limited and can only meet the needs of some people. It can be a supplement, but it cannot become mainstream. The value of e-commerce retail is to reduce transaction costs, not the other way around. .

In addition, if technology advances and the Metaverse and sensor technology become more mature, and AI ladies will be available to explain products to you 24 hours a day at any time, and you can also experience product details, will it go beyond live streaming to bring goods?

The form of shopping may be ever-changing, but the high efficiency of Wal-Mart is the key; if consumers accept private brands, they will be the final winner.

Apart from live streaming, domestic e-commerce is lackluster in other aspects. The rise and fall of Vipshop is the same. Vancl Eslite is on the market. It is a self-operated e-commerce mainly online, offering men's and women's clothing and various small accessories. Cross-border e-commerce, unfortunately, failed to seize the opportunity brought by the epidemic. It was out of stock at critical times and failed to strike a good balance between price, quality and after-sales service. As a result, Shein became the best in the world. Now it has a market value of about 10 billion US dollars. During the pandemic, the market value of the stock price exceeded US$20 billion at its peak.

With Chen Danlin's unhurried persistence, the supply chain management and IT informatization capabilities behind Shein have developed far beyond their peers after more than ten years of development. They are able to sustain 100% high growth every year, not just because of luck. .

Many domestic media people initially regarded Shein as one of the self-operated brands of Time Jumei, because Chen Danlin is still a member of the board of directors of Time Jumei. But Shein not only sells women's clothing, but also men's clothing, watches, accessories, bags, and personal care cosmetics...

There was a relatively big competition in the interests between Shein and Shopee, so Qu Li stayed in Time Jumei and Chen Danlin joined New Time. It was completely against the wishes of both of them, but there was nothing they could do about it. (End of chapter)