Looking back ten years is the golden decade of the Industrial Internet. A picture, a big logic, can roughly describe the timing of ten years. The B2B circuit is facing new challenges.
I. Sketch of the Industrial Internet
In the past three years, the source code has continuously deepened the B2B track, and continued to discuss and invest. Within us, B2B also has a larger name, called Industrial Internet, also known as the promotion of traditional industries, including: Internet and intelligent. How to define industry refers to the whole process of physical goods and services from consumption, circulation to wholesale, covering all vertical industries.
Vertically, different vertical industries include fast-moving consumer goods, pharmaceuticals, clothing, industrial products, home improvement, auto parts, and so on. Looking at it horizontally, it is roughly divided into several links, the original data collection / consumption-circulation-product consumption-circulation-wholesale.
Therefore, we will see that the industry includes most of the industries under the market economy. Drawing two coordinate axes can put any link in almost all industries into a large map. Which are not in it are about a few industries that are completely based on the Internet, such as social networking, online advertising, content media, etc. The Internet has made the timing of the online C-end almost the same, and BAT and the new giants have also firmly controlled each C-end traffic entrance.
In the long run, the vast offline industry, from factories to wholesale terminals, will be fertile ground for venture capital. The Industrial Internet is designed to assist different vertical industries to stop their promotion and evolution. The entry points may be in different links and there are various ways. B2B is one way.
Second, investment theory and observation
On this big map, the source code has done a lot of investment theory, there are 2C category and 2B category. There are more large categories in 2C. Food, clothing, housing, and transportation are very large in each category. Just "food" can be divided into many sub-categories, such as catering, fresh, fast-moving consumer goods, and drinks.
In the 2C category, Yi Jiu Pian is a typical representative. They are mainly beverages and have completed the scope of the scope of the purpose. In the next stage, while continuing to do large-scale, it also deeply affects upstream and downstream. Pocket fast sales, focusing on the fast-moving consumer goods category in 2-6 tier cities. They are far away from first-tier cities with high chain rates and e-commerce ratios, and supply small convenience stores that are relatively scattered and away from high-quality supply chains. It is growing very fast.
The 2B category includes all products to be purchased by the factory, commodities, raw materials, parts, MRO, machinery and equipment, and electronic components. Ruijie Mall cuts into the MRO market from hardware and electrical equipment, integrates upstream high-quality manufacturers, and serves terminal channels. Hundred cloths, through the financial leveraging of upstream grey fabrics, greatly increased the upstream capacity utilization rate, directly supplied to the terminals, and improved the distribution efficiency.
Both companies are self-operated B2B companies, but each plays differently. Due to the different industry characteristics, they have also sharpened their competitiveness, and have also completed their respective first-stage rapid growth and upstream and downstream. The in-depth exploration has once and is building a truly durable moat.
Third, combing investment logic
The industry map is very large. We continue to look at the discussions and the big investment logic is: use the big purpose to push back the development path. The purpose of industrial promotion is twofold. One is that the products and services obtained by end customers are more better, more accurate, and the other is to improve efficiency in all aspects of wholesale and wholesale. The ultimate goal is to complete the data-driven, intelligent drive of the entire chain, the back-end service wholesale front-end, the back-end assist the front-end, and use every effort to serve the end customer.
B2B e-commerce platform is one of the easiest ways to complete, because circulation is the easiest link to break on the entire chain. It touches on a multi-level distribution system, a multi-level wholesale market, a trunk-to-floor warehouse distribution system, and massive supply and demand information. Looking carefully offline, the level of circulation is also decreasing sharply, the wholesale market is disappearing, the market is becoming transparent, and even policies are promoting the integration of circulation companies.
This change represents a major trend-the need for circulation to serve the terminal market more and more efficiently. The requirements for the circulation of goods at all levels are unified to improve the application rate and timeliness, and the demand for supply and demand information is optimized and matched from time to time. The B2B e-commerce platform cuts into the circulation link directly from buying and selling, and quickly completes online and scope, which has intensified the integration and efficiency of offline circulation. In 2015, I analyzed some logic of the B2B e-commerce platform, mainly some key indicators and the gross profit formula of the performance cost. This article will not repeat them here.
After three years of horse racing, the giants have begun to enter and simply do a good job of B2B trading platform. It is not enough to just use the value of the channel. It is necessary to do work in the upstream and downstream to establish their own industry barriers. Through a common method, we can grasp terminal channels and end customers, or obtain more terminal data, or build companies with our own high-quality brands to build long-term moats.
Dealing with 4 key issues
1. In the 2C category, especially in the field of fast-moving consumer goods, startup companies are generally facing threats from JD.com and Ali. There are two reasons. One is that the online wholesale rate of the C-end wholesale has increased from time to time, and the proportion of offline stores has been corroded from time to time. The other is that they have also killed the offline supply chain and deepened on B2B.
In the long run, the goal of the giants must be to increase the online rate of the entire category from time to time, and the offline parts that cannot be improved in the short term, and use the supply chain, payment, and online traffic to enable and blend. This kind of empowerment looks very lethal, and it is going to sweep the entire battlefield. However, as a startup company, you should be encouraged and see that the infiltration and transformation of the offline B-end chain must be a slow and long-term project. It is a hard work and not necessarily suitable for e-commerce giants to do it. Instead, it is suitable for Xiaomi plus rifles and continuous cultivation. Startups to do it.
B2B companies want to extend down to offline stores, whether it is a new venture chain, or the existing store empowerment and efficiency, it will face competition from giants for a long time. If you want to do this, you must act quickly and accurately.
2. In many vertical industries, upstream brands have unquestionable industry influence, how they deploy channels, how to plan e-commerce, their relationship with existing distribution systems, wholesale markets, and terminal wholesale, and their connection with wholesale terminals. How they compete is worthy of discussion.
In the vertical industry with strong brands, the existing B2B has not yet replaced a batch of roles, and it has not yet docked with the brand. Finding the pain points, living with them, and building a new distribution ecology are the best recipes.
3. Existing B2B platforms, in addition to the relationship between giants and brands, need to be well disposed of, and the same needs multi-tier traditional dealers to fight for wisdom. The traditional second-tier, third-tier, and fourth-tier distributors have less invention value and are easy to be replaced. They are also the happiest. They often think of ways to combine them, and even go to brand manufacturers and downstream stores to talk bad things, stroll rumors, and try to resist Kill the B2B platform.
The method of advocating a break is not to face the combined attack against resistance, show a low profile, find a breaking point, unite those dealers that still have category value, or see if there is a chance for collaborative transformation in the ecology. Long-term invention of real value to downstream stores and brand manufacturers.
4. In order to prevent the influence of giants and brands on startup companies, there is another method, which is to stay away from the category of C-end giants, and the category of mature upstream brands. There are still many vertical categories. China still lacks brands, and the C-end giants are unmatched. Establish bases in these centers, and then continue to expand the influence of the industry.
5. I want to emphasize that the timing of the B-end category will not be too fast, and they must be based on a long-term perspective. The game should be long enough, it is best to have the ability to create blood, and you don't need to worry about being slow to be snatched by others. When it comes to timing, it's time for slow companies to deepen their time.
Fifth, continue to invent the real value of durability
At present, we are rolling out the map and seriously studying different areas. According to the pause in the evolution of the industry, the characteristics of the industry are separated, and the opportunities are dug in different links. The timing is fast or slow, big or small, or first come first. The demand pattern view, insight into the general direction, but also need to deepen the understanding of the industry and find grasping points and fulcrum. Warmly welcome peers and entrepreneurs to come and exchange ideas to promote industry change together.