Wang Xucheng: LDK Network Co Founder

On the morning of September 17th, the 2014 annual conference of China's cross border e-commerce and the fourth annual meeting of the maritime trade association was held in Shenzhen. Wang Xucheng, a co-founder of LDK network, delivered a keynote speech at the scene from the "synthesis to the vertical: my cross border e-commerce". Xiaobian will highlight the highlights and share them with you.

　　 Wang Xu Cheng Good afternoon, everyone. I am from LDK, Shenzhen. In fact, I am also a recruits of foreign trade business. I understand that this industry started in 04 or 05 years. Why? Because Chen and I are always colleagues. He began to do it in 04 or 05 years ago. I also heard a couple of big guys tell us some planning and vision, and we are walking along these steps. Now let me share with you LDK.

Our company was founded in 08 years, to share with you the development process of LDK, and to talk about our future development direction. As we can see from the development process, we have moved a lot of places. Actually, I resigned from 12 years and joined LDK network. Within two years, we have experienced 2 moves of the company. Moving is very painful. Sometimes we move out. Sometimes we lose millions if we do not organize well. As we can learn from our journey, the development of cross-border electric business is actually very fast.

Our company started from 08 years ago. At that time, we all know that the earlier products were made by products. Today, Chen told me a little story. He took a data line that might be 1 yuan, but it could be 1 dollars for sale. From that development process, the number of our products is constantly increasing. Up to now, there are almost 10 thousand SKU. This brings us constantly moving, the pace is constantly expanding, and the number of people is constantly increasing, that is to say, the cost behind us is constantly increasing.

Our category development is also the earliest 3C category. I remember that Chen always went to Huaqiang North to see some products that were better to sell, and gradually extended to the daily necessities, and then developed into accessories, outdoor supplies, which began in 11 years. Shoes and Hats And so on, in the past 12 years, there are some smart terminals. We can see that our category development is quite fast.

In fact, as a large foreign trade business is also a big seller, we are also thinking, an enterprise is bigger and bigger, the venue is bigger and bigger, the cost is bigger and bigger, everything has, but the problem is that our product quality control is more difficult, many people will have deep understanding, will bring our shop refund, and one is the customer experience is very poor, the boss is most concerned about is that we have increased the refund.

The 28 principle has always been effective, especially in the case of many categories, we found tens of thousands of varieties, but in fact, the real benefits to the company only 20%, sometimes may be less than 20%, the real contribution to the company's profit is only a small part.

We are now selling this mode, and the selling mode is very good for us. We have always been in the price range of fierce competition. As we all know, we know that we are fighting for a price, penny and penny. Everyone is so competitive, from the perspective of company development, profits will soon be bottomed out. As your category grows and companies expand, the cost pressure is very heavy.

Compared with most of the foreign trade providers, we are still at a relatively early stage of development. We see that many powerful enterprises are starting to join the competition. We have been reflecting on how to survive and feel that this mode will not last long. Look at the domestic electricity supplier development mode, the most typical is Taobao, Taobao now survived. Some of the first big sellers came to know Taobao as early as they knew. Many famous shops are now gone, but now look at Taobao and Tmall. After the traditional products are launched, everyone starts to walk in a small and beautiful mode.

With the good politics of the country, the foreign trade business began last year, and gradually attracted the attention of the media, government and policy. Now that more and more people are watching, more and more people will enter, and more and more competition will happen. What should we do in such a situation? Our electricity supplier is still retailing in nature, and the core of the retail industry is still a product for us, because we do not have any core products to compete. Chen and we are also analyzing the company's other peers, analyzing the supply chain, and other companies may be promoting. Marketing This is very strong, so we are still in the stage of selling. What we will do in the future is expected to become more competitive in the future.

Now China is a big manufacturing country. Many of you may be doing traditional manufacturing here, and are slowly transforming into foreign trade providers. As we all know the cost, we also know that Shenzhen is not hiring well, including factory rents. The cost is also rising, which will eventually lead to competition in our products and increase the competitiveness of our products in the world. Now some industries are starting to shift, but there are some industries because the supply chain is still relatively full, and there is no beginning to transfer. For example, Southeast Asia and Africa, when their industrial chain begins to improve, it may take about 10 years.

Our company has many kinds of products, but in the future, it may gradually transform, for example, clothing, after all, clothing has become a bigger category.

The company will also do service in transition, because we analyze clothing as the main part of our sales. Of course, plus some of the changes we mentioned just now, many of the clothes are transferred to Southeast Asia and Africa, but the whole chain still has great advantages, so it is still ready to cut into the garment supply chain.

One of our early customers complained about two contrasting pictures. One was the customer put on our clothes, the other was our web page description. This is the pain of the typical customers of the foreign trade electricity supplier. It is also the pain of our businessmen. It is simply a size problem. It can be very intuitive. If you have done customer service, you may be able to laugh at it and feel good about it. It is such a problem. It is a great pain for us. It is also a pain point for consumers.

We have been doing business for many years, and we have also analyzed the comparative advantages:

1, our company may have a large number of people who are familiar with foreign trade electricity suppliers now, as well as the assurance of various sales platforms, which is a relatively big advantage.

2, the understanding of foreign markets, because sales volume has a small scale, and has accumulated a lot of customers, communication with customers, basically able to understand some of the needs of foreign customers.

3, we feel that the competition of foreign trade business has just begun. Just like the original 94 or 95 years of Taobao's electric business start, we still have enough time to respond to this change.

This may be the direction for our company in the future. In fact, as many senior guys in the morning say, we will focus on the clothing market. Why? Because the market capacity is large enough, the difference between the needs of countries and regions is also very large. Clothing has no way to do monopoly. Unlike 3C, after many giants have done, other small ones are hard to cut in.

4, establish a strong supply chain system, adapt to the Internet manufacturing mode, and improve the cost performance of our products. We hope to compete with our whole chain from design to manufacture to sales. If we can grasp all three links in our own hands and compete with our whole chain, I believe the advantages will be much greater.

5, accumulated a large number of customers, because now we do electric business as we all know, has been doing 6 or 7 years, the number of customers is also more, we will try to use some big data to analyze customers, hoping to meet and exceed the needs of customers, in fact, this is a popular saying, that is, using the Internet thinking to transform our traditional clothing supply chain, to adapt to the Internet fast sales mode. Although it is very short, we may need at least 3 years. When it comes to the supply chain, the manufacturing industry will be more aware of it. For those who sell it, it may feel relatively simple. But if I really want to do it, I expect that this time will probably take 2 to 3 years or so. If it can be done, it is possible that my supply chain platform will also be developed to all of you here. When necessary, we can also provide you with some quick response, and what you need and what I can give you can be given to you at the time you expect, which is the future development direction of our company.

In the future, we would like to become a new company rather than an electricity supplier. In the future, e-business will become a norm. In a sense, the development of e-commerce in China will be many years faster than that in many other regions abroad.

In addition, we hope to build a strong supply chain, provide the most cost-effective products, and design products according to the actual needs of customers. The company may gradually tilt the resources toward this one in the future.

I would like to share with you today. Thank you!

Question: Hello, Mr. Wang, my name is Xie, is a new rookie in the electricity supplier industry, I now encounter a more puzzled question, that is, the unit price of the items I sell is very high, and there are many after-sale problems when I sell abroad. I would like to ask, if the unit price is particularly high and the possibility of returning is not very big, do you have any better opinions or methods about this after sale?

Wang Xucheng: in fact, our company, the customer is not satisfied with the refund, the customer said that your size is a problem, we retreat; you said we did not receive our return; you said bad quality, we all retreat "I do not know what kind of products you do, like those lower unit price, things are not, directly to the money back to you."

Question: my unit price is basically 400-500 dollars.

Wang Xucheng: then you have to consider the cost of your return, which is lower than the cost of your product.

Question: it's also hard to accept a return. If you give money to a customer, it's the same. I want to know this balance.

Wang Xucheng: the balance point is how to make your loss the lowest. This requires you to calculate, it is really the unit price is relatively low. We only have 10 dollars for a piece of clothing and a few dollars. When the customer is not satisfied, I will refund you directly. But hundreds of dollars, the amount of refund, plus the cost of Shanghai customs, back to 4 or 500 dollars, in fact, you choose not to.