Li Guoqing: Small Profits But Quick Turnover Is Our Business Strategy.

Not long ago, Dangdang joint President Li Guoqing once again directed micro-blog to sell fake products through Taobao.

"This is not my original words, and I have no specific data," Li Guoqing said in an interview with reporters in Shenzhen recently. He did not shy away from his observations and opinions on Taobao.

When it comes to how to fake Taobao, how to sell the goods at the fake price and how to do e-commerce in the retail industry, Li Guoqing's "big mouth" will not change.

Taobao's anti-counterfeiting business model must be changed

Reporter: you said on micro-blog, "Taobao fake more", if you ask for a weapon, what are your best ways to fight fake?

Li Guoqing: fake brand infringes not only consumers but also innovation.

Ma Yun is trying to find a way to fight a fake, and if he can succeed, I think it depends on his determination.

Compared with the 1000 distribution centers across the country, 10000 factories are easier to fight online.

Counterfeiting, this is not to withdraw a CEO, check about 1000000 fake goods can be done.

When you hire a businessman, you have to go to someone's factory, workshop and company to see it.

Second depends on determination.

Taobao said that it had punished 8 times of lemon green tea last year, the first time it was punished by Dangdang strategy, and second times there were more complaints. The store must be closed, and the company and the person were blacklisted.

Why some mature ones?

Is there any way out for Taobao businesses?

Reporter: how do you think Taobao should be changed?

Li Guoqing: business models need to be changed.

such as

What to do low prices

Reporter: you just said Taobao's fake problem. Can you guarantee 100% of the goods?

Li Guoqing: 100%, it's absolutely absolute, but on the daily necessities, we must make the price of the goods in the right way, just like what I said 8 years ago.

Reporter: what do Dangdang rely on?

Li Guoqing: first of all, we have an advantage in procurement cost.

When we sell the Hotan jujube in Yiwu, we buy goods in the stock market in our country. There are one thousand or two thousand packages per package and tens of thousands of packages. On the scale of purchase, Taobao's single store owner can't compare with us.

Second, Dangdang's rate of increase is very low. Skin care products, household products, food and maternal and child products are the most important categories of general merchandise.

The competition of skin care products in supermarkets is fierce. The average gross profit margin is 19%, and the gross profit rate of milk powder is about 9%.

Third, any merchant of Taobao has to collect the shipping fee, but Dangdang is free of freight.

It can be said that in the above 4 categories, Dangdang is the leading price vane, the supermarket scolds us for price war, and the big businessmen of Taobao mall must also keep up with us.

Reporter: Dangdang is now a listed company. How do you face the pressure of performance?

Li Guoqing: like a book a few years ago, Dangdang still adheres to the philosophy of small profits.

We will give half of the gross profit to the consumers, which is the basic logic of the Dangdang. Some companies have doubled the gross profit to promote sales, which is basically a nonsense, and it has not been used to give profits to the customers, but to use the market, operating costs and the warehouse.

Of course, shareholders will also give me pressure, but small profits are the training of their team.

Many people say that Dangdang's net revenue is only about 2000000000 a year, and its profit margin is only a few points, but retail sales are small profits. The retail profit of doing well is three points, too.

Make private brand and cultivate clothing market

Reporter: Dangdang put forward the cultivation of clothing category this year, but the price increase of clothing is high, basically 2~3 times. How do you cultivate it?

Li Guoqing: Dangdang should be a clothing department store instead of a clothing shopping center.

We want to set up our own buyer team, sell it by ourselves, and suppress the price by volume and brand.

The buyer team is the most difficult to cultivate. Why did the Department Store beat the shopping center? That's why foreign retailers rely on the buyers team, the selection team and the purchasing team. This is the advantage that it can succeed in foreign countries. As a result, in the past ten years, as China's retail industry has learned to sell on behalf of the retailer, it has to enter the store fee, and finally the brand business has been added to the price, which has not created a low price for customers.

In addition, Dangdang will also do its own brand clothing, that is, we see the mode of everyone.

Reporter: build your own brand, do you still have room for development?

Li Guoqing: Dangdang clothing one is selling a hundred goods, hundreds of stores in our store are not selling Lining [13.50 -4.53%], Kappa, imitating them are some.

Now we have absorbed a number of good brands, but the goods haven't been spread to the storeroom, or they have traded with the customers alone.

The two is to make its own brand. In fact, a number of experts have made up their own brands in the country. They used to be factory goods and foreign trade goods. They did not spend money to build brands or advertise, but they were really cheap and the rate of markup was low. They not only cooperate with Dangdang, but also cooperate with Mcglaughlin and customers.

{page_break}

To be a self owned brand, it is necessary to have a positioning and every family has its own style.

For example, the original location of fans is to those who earn less than 5000 yuan a month.

The problem with Dangdang clothing is, which age group, which income group do we do, where to cut in? Now we are investigating the characteristics of Dangdang customer group.

We hope that we can enjoy the quality of first-line brand and half price of second line brand.

Do you want to fight with your left hand?

Reporter: now many retail businesses in Shenzhen have built their own online shopping centers. But in fact, the volume of pactions on the Internet platform is very small. What are your suggestions?

Li Guoqing: there are two pieces of advice for physical retailing to enter e-commerce.

First, the most important thing of "Electronics" is the precise marketing of customers, rather than setting up a website to put the merchandise on the relevant purchase and related recommendation. What the customer bought is the calculation of past consumption records, which is the cloud computing technology.

Although finding a university graduate can also develop a strategic search, it is a challenge to achieve accurate search and search.

Second the biggest problem facing business is: first, the price war between the left hand and the right hand, and whether to fight or not. I think it's ambiguous.

The company has wanted to cooperate with Dangdang, but the premise is not to fight the price war. I said we should not engage in it. We can not get you into it, and sell it more expensive than Jingdong.

Differentiation is also a way, Haier's own community store, in order not to offend Suning, Gome, the same refrigerator to Suning, Gome is blue, the community store is Huang, of course, this is also good, but also a good way to give profits to customers, but not ruthless.

The left hand plays the right hand. If you dare not fight the price war, don't do it as early as possible.

Physical stores can not do electronic commerce basically. Besides WAL-MART, it is also out of proportion to the size of the store.

I would like to remind you not to dock with storefront stock.

Why do we kill a second kill? We need to match the inventory in real time. Almost every microsecond will reduce the stock. We are now matching every 5 seconds to stock and kill 100 digital cameras. In fact, we have prepared 300 units, because we can not calculate the speed of orders.

It is impossible for a shop to dock with a store, because the satisfaction rate must reach 99.6%, and the technical report can only be 0.4%.

When Dangdang and Xinhua Bookstore were connected, the satisfaction rate was 70%. Where did that 30% go? Just when the customer placed the order, there were 3 digital cameras for people to buy. This possibility is too high.

Therefore, the entity store must have an independent warehouse and an independent logistics system for e-commerce.