How to operate industrial B2B from 0 to 30 million?
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It’s a simple time, but it’s also a complex time for online trading. The media and capital have always had the most sensitive noses in the Internet circle. Recently, we have received invitations from the media and institutions, most of which are about discussing B2B and industrial Internet. It is not an exaggeration to say that " O2O is surrounded by difficulties, but B2B will bring new hope". 2016 is the first year of B2B. From 1688, which has been silent for many years, to Huicong starting to run a home appliance shopping mall, various vertical Internet companies in various industries have raised funds to occupy space, indicating that the focus of the capital market has begun to shift to the upstream B-end market of C, and the wind direction has begun to change. So why is the industrial Internet that connects big B and small B businesses attracting attention? In fact, this is a natural thing. From a general perspective, the reduction in usage costs has lowered the threshold for usage. The development of Taobao, JD.com and Tmall in the past 20 years has cultivated a generation of Internet users. After the popularization of C-end Internet, it has solved a lot of problems in food, clothing, housing and transportation, which in turn made Internet infrastructure cheaper and broadband faster. When the cost of use becomes lower, it will also affect the choice and use of enterprises. Ten years ago, the cost of ERP for enterprises such as UFIDA, Kingdee, and North-South ranged from tens of thousands to hundreds of thousands. It is hard to imagine the cost of using millions today when SAAS software is free and popular. From the perspective of the usage environment, overcapacity in traditional industries is currently very common, and companies are unable to gain more market share in the existing market. This is also the reason why the CEO of Bami chose to get involved in the Internet: when the industrial environment was good from 2008 to 2013, companies had no worries about selling products, so who had the time to deal with the Internet? However, starting from the second half of 2013, when companies were facing difficulties such as lack of working capital and difficulty in collecting debts, they began to think about change and seriously considered how to integrate the Internet. This also proves that after enterprises have been grafted with the Internet, the improvement of system efficiency and circulation efficiency has gradually evolved into a rigid demand. The scenarios of enterprises using the Internet and the Internetization of the industrial chain have become increasingly clear, which will inevitably bring about an explosion of B2B. Our team members basically come from ERP, information integration, and manufacturing companies. Our concepts and methods for implementing B2B e-commerce are different from those of general e-commerce companies. The various process issues we deal with every day are far beyond the imagination of ordinary people. Many people find it complicated. This is why it is difficult for outsiders to do 2B business, because each industry has its own barriers and characteristics. If you come up with a transaction process that is seemingly in line with the industry but is actually far from it, it is estimated that customers will just want to slam the table and curse after reading it for a long time. This is also the fun part of industrial Internet. The flow of funds, information and logistics involve not only solving sales problems, but also solving service capability problems. Only transactions with thresholds are meaningful. From the launch in August last year to March this year, it took nearly 7 months, and various situations and difficulties followed one after another, and trial and error continued. Although I have been named by the media many times and even doubted whether it is reliable to rely on simple online transactions for the electrical industry, every time I see users "silently" purchasing Schneider products worth hundreds of thousands and switching power supplies worth more than one million, I begin to believe that the sales volume of the B-end industry is so large. Today, I would like to take this opportunity to share our existing conversion model and discuss with teachers in the industry: Strengthen intermediaries and identify user scenarios Since the establishment of the company, the target of user operations has been dealers, agents, and disk factory entrances, and not procurement from end users. This is our general direction. If a B2B industrial product company starts out by saying that it wants to go to intermediaries, agents, and distributors and let suppliers sell goods directly to the end users, I think either you don't understand the industry well enough or you are too naive and you will basically die a miserable death. Currently, all industrial product e-commerce companies operate themselves as distributors. They do everything they can, including supply chain, warehousing, logistics, sales, and finance, and emphasize "perfect customer experience." However, have you ever thought that if you want to sell goods to State Grid, Southern Grid, Baosteel or Ansteel, the biggest constraint does not come from price and products, but "relationships". It is basically a pipe dream to expect that the customer system and resources that others have maintained for decades can be used for online transactions all at once. Even if your father is really the Minister of Railways and the goods are sold, what about the after-sales service? How to collect accounts receivable? How to exchange or repair the product? Do you have external engineers? This is using your own weaknesses to take advantage of others' strengths. You are thinking about the problems of all the players in the original industry from the perspective of "disruption", which is the main reason for the failure of e-commerce and O2O in all previous vertical industries. If you can't do better than what Hegman, Witbridge, Jiayi, Sonepar and Grainger are doing now, I think you should never even try. The money given by the capital market is really not enough to make a fuss. Alibaba's "China Suppliers", Huicong's "Business Information", and the leading companies in the domestic B2B industry only do some information exchange and matchmaking, which does not affect the actual interests of all parties. In the entire industrial electrical industry, Internet companies are actually very poor. Even the investment in industrial Internet products that have entered rounds C and D is only around 100-200 million yuan. In 2014, Chint’s annual sales and management expenses were 1.6 billion yuan. If you use the same old way of doing things, can you do better? The greatest contribution of the Internet is to solve information asymmetry, and this asymmetry phenomenon is particularly evident in the current electrical industry. Traditional industrial electrical industry transactions are almost entirely completed offline, resulting in information asymmetry between manufacturers and end-user companies; procurement between manufacturers, distributors and agents is cumbersome and inefficient, increasing the operating costs of various circulation links, and the structural imbalance of products leads to vicious price competition. When the data has not yet been connected, it is doomed to fail to use the C-type e-commerce methods. The Internet should do what the Internet should do, establish smoother communication channels in the supply chain, explore better financing channels for working capital, help dealers reduce marketing costs, help dealers cultivate and maintain end users, and make transaction links more flat, rather than rushing to shorten links and disintermediate. This is what should be done, and it is also what Bami.com is doing. 2015.9-2016.3 Top 10 trading brands on Bami.com Credit is the foundation, traffic is not everything When I say this, I guess my friends who are engaged in 2C e-commerce will laugh at me, but in the 2B industry, you are destined not to push website traffic to a very high level. Since its launch in August last year, Bami.com has customers in 84 cities across the country. The largest order has exceeded 700,000 yuan, the average customer unit price is 17,000 yuan, and the total transaction volume has reached 30.46 million yuan. However, this is only the result of an average PV of 2,200. From 0 to 30 million, the customer traffic conversion rate is very high. It is normal for two or three traffics to bring one inquiry, and more than a dozen traffics to bring several orders on the platform. Currently, an average of 15 orders with a single transaction amount of 10,000 yuan can be brought in every day. As far as the current industrial electrical industry is concerned, the purchasing users that need to be covered do not exceed one million. This is far from the tens of millions or hundreds of millions of people that need to be covered for general 2C food, clothing, housing and transportation customers. However, the purchasing capacity of this covered population can reach 4 trillion yuan. On average, each purchasing user generates nearly one million yuan in transaction volume each year, which is 100-200 times the average customer unit price of 2C websites. This is still a relatively conservative figure. 2B business is definitely not based on a few activities, a few WeChat messages, or being fooled by pretty pages and beautiful pictures. Purchasing is a very rational action. What customers care about first is whether your platform is reliable, whether you will default on your payments, or whether you will cheat people out of money. In the past, they did business directly with upstream manufacturers. Long-term cooperative manufacturers could still pay me back and extend my payment terms, but you still require cash transactions. Why should they purchase through your platform? Only then will I care about whether your platform has the brand and model I need; then I will compare prices to see if you can offer the lowest price; finally, I will care about whether the logistics is fast, whether the user experience is smooth, and whether the after-sales service is in place. This is completely different from the routine of 2C users. In order to strengthen user trust, we launched a combination of marketing in the industry. Many customers who wanted to give it a try promoted it on a large scale, and it spread quickly in the industry. From hundreds to thousands and then to tens of thousands, the amount continues to increase. What we didn't expect was that a certain brand of DZ47 model sold more than 2 million in less than a month, which even triggered a nationwide supply shock. The spread of this incident made more purchasing customers look at us with admiration, and also strengthened the team's confidence. The cost of acquiring customers is high, and offline promotion is more practical Because the traffic comes precisely, the customer acquisition cost will be pushed up accordingly, and it will become very expensive at the beginning. We once sold 1 million Schneider products through the Internet in one day, just through event promotion and SNS communication to acquire accurate customers. Because the event was highly targeted, the cost of one lead in this event was only a few dozen yuan, and the lead conversion rate was as high as 30%. Of course, this is when we are doing activities, but what is the conversion rate at normal times? Since the procurement of industrial electrical products is instantaneous, searches are conducted only when there is demand. Searches from search engines generally lack natural traffic, and the traffic cost becomes very high. Although promotion will bring a wide range of people, the accuracy is not high and the conversion rate is very low. Without promotion, there will be no leads. This is also the reason why many dealers have used keywords and rankings but the results are always unsatisfactory. Currently, the cost of online leads often exceeds 2,000 yuan, which is not affordable for ordinary dealers. For transactions, user stickiness is more important than traffic acquisition. 2B will not and cannot complete orders as easily as 2C. Once a new customer is successfully acquired, it means a long-term stable cooperative relationship and a steady stream of orders. Partners work together for the common interests, which is an example of high customer stickiness. Although our lead conversion rate is much higher than the offline average, based on customers’ purchasing habits, they still prefer to communicate face to face with our handsome sales guys. Why? The first is because of the sense of presence. Most buyers have their own offline stores. Sometimes there are several in one city, or even their own factories. They feel more assured with offline door-to-door service, which is better than online chatting, WeChat or phone communication. This is why we have always insisted on doing offline promotion . The second reason is that users have not developed the habit of using the Internet. When we visited customers, most of them were men born in the 1970s and 1980s. Although they are familiar with the Internet, they do not usually shop online. Most of them are using computers to make online purchases for the first time and are accustomed to door-to-door guidance and help. Although the average customer acquisition cost reached nearly 350 yuan at its peak during the early stage of promotion through activities and BD, once stickiness is formed, the user purchasing amount has been very continuous and stable, which can bring a large amount of cash flow. After conversion, the customer acquisition cost of a single user may be less than 100 yuan. Especially in the store system with millions of stores across the country, it can form the interactive advantages of online procurement + offline services, which is conducive to the subsequent development of warehousing and logistics. In fact, the sales conversion rate online will not be higher than offline. More importantly, most offline sales can often generate more profits. They are responsible for technical design modifications, design suggestions, after-sales maintenance, user follow-up visits, etc., which are difficult to achieve on the Internet. 2015.9-2016.3 Top 10 cities for BaMi.com customers A full range of brand products, layout of supply chain finance We may be the first e-commerce company to have a full brand product line. This is worth mentioning. Why? Among the currently known electrical Internet e-commerce platforms, the brands and models that can be covered include only a part, or even a small part, of the products of a few giant corporate brands, and other brands are rarely found. It is no exaggeration to say that nearly 70% of the major large and medium-sized well-known brand companies in Yueqing (China's electrical appliance capital) are currently concentrated on the platform. The number of models corresponding to each company ranges from nearly 100 to tens of thousands, which can basically meet the purchasing needs of all buyers for products. Entering information into the enterprise information system is a complicated task. All product models have a unique SKU coding function, which is the same as the information arrangement method of the product series of the SAP system used by large domestic enterprises. Each product has one SKU, from a small nylon tie to a large power cabinet. In addition to the front-end e-commerce procurement system used by customers, Bami provides suppliers with WMS warehouse management system, OMS order management system, and supplier OCRM customer management system to solve pre-sales consulting services, user experience in the transaction process, and after-sales supporting services. It can not only meet the personalized transaction needs of purchasing customers, but also meet the common auxiliary services of buyers and sellers such as inspection, warehousing, logistics, settlement, etc., and the use of these information systems is free of charge. In addition to gradually cultivating user stickiness through price advantages, promotional advantages, and selection advantages, we also deepen cooperation with the financial industry, enter the supply chain finance through credit payment and installment payment methods, provide more convenient payment channels based on the user's offline usage scenarios, and deepen the tightly coupled relationship between the two parties to the transaction like a partnership. In the future, there will be greater room for imagination in value-added services such as credit guarantee, logistics subcontracting, inventory distribution, IT outsourcing for small and medium-sized enterprises, procurement outsourcing, business information services, and factoring services. Conclusion: Do you love the industry deeply? Our goal is to make production, trading, circulation and financing more efficient by making the Internet within the enterprise and the industrial chain. The first step is to digitize the company's product information, which is also what most companies need to catch up on, because they cannot afford to buy or use large integrated systems, but now they can be used for free. For online transactions, it is necessary to meet common needs while providing personalized services. Especially under the current trend of continuous integration of information flow, capital flow, commodity flow, bill flow and intelligent logistics, it is even more necessary to optimize and improve one's own transaction processes, and even change the distribution of benefits and tap the value of the supply chain. Want to change 30 years of trading habits in the electrical industry? I don’t believe what BOSS said, but it is definitely worth a try. Because we are all ordinary people, we doubt everything but do not deny ourselves. Only God knows whether we can do extraordinary things, but at least when we do this thing, you will find that it is done well, which will make you more and more confident, and the team will become more and more confident. To borrow what Yu Minhong said, "When you love your career, when you love your own life, and when you are willing to combine your life and career, I believe you will be invincible. Business models can be learned at any time, but love comes from your heart." Yu Minhong's words are really appropriate when applied to the 2B industry. ASO optimization service click link: ASO optimization service introduction IOS accelerated review click link: //www.opp2.com/8854.html APP Top Promotion (www.opp2.com) is the top mobile APP promotion platform in China. Welcome to follow our official WeChat public account: appganhuo [Scan the top APP promotion WeChat QR code to get more dry goods and explosive materials] |
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