Chapter 900 Monopoly achieved so easily?

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Regardless of the high profits of Kirin Industrial Group, in fact, there is not much money to support the development of other industries. Kirin Energy Industrial Group alone will invest 10 trillion yuan this year.

In addition to the funds needed for other industrial expansion and investment, the money earned is basically invested in. Even if there is some money left, it needs to be used as reserve funds.

Ye Zishu is about to step down as the president of Kirin Industry Group, so he doesn't plan to allocate these funds by himself, leaving it to Guo Dongmei, who is about to take office.

Kirin Industrial Group is the latest among the several large groups he established, but its development is faster than the other group companies, and it has great potential.

The greatest potential comes from the general robotics business and the energy business. Other businesses will gradually enter a bottleneck period in the next year or two, and it is difficult to see explosive growth like now.

If you have to say it, their precision equipment business may further explode in the future. The reason is that unmanned industrialization will start soon.

Although this part of the business will be hosted by Xuanwu Technology Company, Kirin Basic Industries Group, as an important supporting supplier, can still obtain huge profits.

The business of Kirin Industrial Group is also very stable. Grain and oil, processed food, meat and seafood, vegetables and fruits, energy, textile products, environmental protection, etc., are all rigid needs of society.

In other words, without these products, social problems will arise. As long as the society can function normally, these businesses will not shrink, and the stability is beyond doubt.

After reading the annual report of Kirin Industrial Group, Ye Zishu began to read the annual report of Phoenix Technology Company. The situation was a bit unexpected, and it was not greatly affected by the financial crisis.

He predicted before that the financial crisis may lead to the shrinking of online advertising business, and Phoenix Technology's main source of income is online advertising, and the shrinking of this business has a relatively large impact.

However, the advertising business did not shrink after all. On the contrary, it expanded a lot during the financial crisis. It was completely contrary to his intuition, and made him wonder if there was something wrong with his thinking at the time.

In fact, this is true, and the reason is not complicated, that is, everyone’s income is affected, but entertainment is also just what many people need. Compared with offline entertainment, online entertainment is obviously cheaper.

Therefore, during the financial crisis, the average online time per capita increased significantly, and the number of smart phones connected to the mobile network increased instead of decreasing. The Internet turned out to be a good place for everyone to reduce expenses.

This has further increased the operating difficulties of many physical enterprises. In order to sell their products in a limited market, they can only be more willing to advertise than before.

In the past, the market was huge, and the average online time per capita was relatively short. You only need to do a good job in offline channels to get a small amount of income.

Now it's not easy to rely entirely on this set.

Many merchants have switched their channels to online one after another. At the same time, they have increased investment in online channels and reduced investment in offline channels, which led to unexpected results.

In fact, it is not difficult to understand that where the consumers are, the market will be there. Even the most powerful merchants have to abide by such laws and always follow the consumers.

This situation has also strongly promoted the development of the new platform under the E-Commerce Company. Merchants who were hesitant before, in order to compete for survival opportunities and reduce operating expenses, had to choose to move to the front line and open up more channels.

The e-commerce company has launched two new platforms this year. One is based on direct sales from manufacturers. Similar to Tmall in the previous life, it focuses on brand management, and the quality is more guaranteed.

The operating income of this platform mainly comes from the following aspects. The first one is sharing, which can also be called rent. The standard ratio is 15%. If the business is operated with integrity and the reputation is very good, the sharing ratio will be appropriately reduced, with a minimum of 10%.

If the reputation is relatively poor, the rent will be increased, up to 20%. If there is a particularly serious situation, it is not a matter of money, and the qualification will be disqualified directly.

The second is advertising promotion revenue. If the merchant is willing to spend more money to promote, the platform will give more display opportunities, but it is not absolute. It just increases the priority, which does not mean that it will definitely be at the top.

Priority is a comprehensive consideration indicator, which needs to be comprehensively obtained based on business reputation, sales volume, user evaluation, etc. It is not possible to quickly increase the priority by spending money.

Of course, if you are really rich and powerful, you can further increase the priority, but the cost will be very high, and ordinary merchants may not have this strength.

Especially for new merchants, due to the lack of operating data, the priority is very low. If the priority is ranked by spending money, the cost will be much higher than similar merchants.

Of course, for new merchants, there are several referral opportunities a year, and the number of referral opportunities also needs to be determined through comprehensive evaluation. Some merchants that have done well have more free referrals.

The third is financial income such as business deposits and retention fees. Merchants in different countries and regions pay different deposits, but when added together, the amount is still very considerable.

Even if the money is conservatively invested, such as buying government bonds, it can bring a lot of income to the e-commerce company, and it is very stable, so there is no need to worry about trouble.

In addition, there are financial benefits from platform users’ pre-deposited funds, but the scale of this part of funds is not particularly large, and it can be ignored compared with the operating margin.

The fourth is the income from logistics, transportation and warehousing. Merchants on the platform must use the logistics system and warehousing system of the e-commerce company. The reason is very simple, to ensure that consumers get better services.

And this reason is indeed convincing. Although their logistics business is much later than that of established logistics companies, their operating efficiency and technological level are already far ahead.

It may take about a week for other logistics companies to deliver the goods to consumers, but using their logistics, they basically deliver on the same day, or the next day at worst.

Unless there is really no goods in the warehouse, the goods can only be transferred from other places, or temporarily obtained from the manufacturer. It will take longer, but it can also be guaranteed to be delivered to consumers within three days.

A lot of high technology is used here, such as intelligent cargo dispatching system, intelligent warehousing system, intelligent logistics system and the support of many advanced hardware, such as intelligent drones.

In the past, due to the lack of mobile communication network, the ability of intelligent drones to play a role in terminal delivery was limited, but now using the satellite communication network of Baihu Technology Company, the effect is surprisingly good.

Although all drones have not been realized in terminal distribution, they are actively replacing them. Only in this way can the response speed of the last mile be guaranteed.

The labor laws of many developed countries are terrible, not to mention the high labor costs, but also to strictly abide by the working hours, and the delivery is delayed, which seriously affects the speed of logistics and delivery.

For these countries, drones should be used as much as possible for the distribution work that can be replaced by drones, which can reduce a lot of trouble and not cause too much psychological burden.

Domestically, there are both. For urban distribution, manpower is basically the mainstay, and for rural distribution, drones are basically the mainstay. How to choose is completely determined by the intelligent distribution system.

In the first year of operation, this platform achieved a total revenue of 4 trillion yuan, which is stronger than that of the original self-operated platform. Coupled with the boost of the financial crisis, it is expected to double the growth next year.

The income from the platform is also very considerable, basically accounting for about 25% of the platform's revenue. Even if there are many discounts in the first year, this proportion has reached 20%, achieving a revenue of 800 billion yuan.

In addition to this platform similar to Tmall, there is also a new platform similar to Taobao. The platform is mainly based on individual merchants. The business model is similar to the above platform, but there are also differences.

The first one is that the ratio of deposit and sales share is different, which is much lower than that of the previous platform, because the strength of merchants on this platform is not high, and the threshold is too high to make it difficult to do so.

This requirement is different in different countries. For example, in some countries, there is no share ratio, and there is no need to pay a deposit. You only need to pay for the opening of the store.

Such a mixed platform, if unified, will not be conducive to global development. E-commerce companies are very concerned about localized operations, and decide their business strategies according to local conditions.

The second is that there are relatively few free promotion opportunities, and there is no such emphasis on fairness as the previous platforms. The priority recommendation can be improved through bidding. Whoever pays more will win.

Of course, it will also refer to business reputation and other conditions, but it is not as concerned as the previous platforms. If you want to sell suitable things, you still need consumers to keep their eyes open.

The third is the poor quality of after-sales service. The platform does not guarantee the quality of after-sales service. Merchants on this platform may not use the logistics and warehousing of the platform, and the merchants make their own decisions.

Generally speaking, apart from the relatively cheap things, this platform is much worse in other aspects, but it meets the needs of some low-end users, and there is still a certain market space.

The regions and countries with the best development of this platform do not have a high economic level. Consumers are more sensitive to prices and do not care much about other services.

In terms of operating income, E-commerce companies don’t like this platform very much, but they also know that even if they don’t do it, others will do it. If there is a demand, there will be a market, and if there is a market, someone will do it.

In order to make each of its platforms more competitive with each other and enhance the operating vitality of the platform, each platform is operated independently and belongs to different subsidiaries.

The logistics system and warehousing system are also merged together and operated independently. How to do this is to avoid differential treatment and avoid excessive reliance on their own business by logistics and warehousing companies.

Last year, the total sales of the e-commerce company reached 15 trillion yuan, making it the world's largest online shopping company with almost no competitors.

The self-operated platform achieved a total sales of 10 trillion yuan, a double increase from the previous year. A platform similar to Taobao had sales of 1 trillion yuan last year, and its overall operation was not as good as the other two platforms.

The total operating income attributable to the company is 4 trillion yuan, the net profit rate is 25%, and the net profit is 1 trillion yuan. Hardware investment and personnel compensation account for the bulk of the cost.

With the further optimization of the business and the gradual stabilization of hardware investment, the net profit margin data will increase significantly in the future. It is difficult to guess how much it will be, and it will at least reach the level of 40%.

Another special company is Hummingbird Life Service Company. This company also started to go public this year, and started a global business strategy from the very beginning.

It does not first localize its operations like other companies, and only after figuring out a set of models will it move towards globalization. This is more secure and reduces the risk of business failure.

The reason why Hummingbird Life Service Company does this is of course its confidence. It mainly comes from three aspects. The first is the capital advantage. It is backed by Phoenix Technology, and it is not worried about the problem of insufficient capital for expansion.

The second is sufficient preparation. They have been silently preparing for two or three years before, sending a large number of people to various countries and regions to investigate and learn about various local information.

It can be said that they have a very thorough understanding of various countries and regions around the world, so they have already formulated the business strategies of each country and region, and they did not decide on their own brains.

Moreover, before the global operation, localized companies have been established in various countries and regions, and after a period of running-in, it is confirmed that they can operate smoothly before starting local business.

The third is the advantages of technology and management. In general, enterprises expand too fast at once, which can easily cause management confusion. Not only will the strategic effect not be achieved, but a large amount of unnecessary expenses will be added instead.

Relying on advanced production tools and intelligent management system, Hummingbird Life Service Company basically avoids management chaos and slow response, and can complete all work in an orderly manner and deal with all situations.

This is crucial. No matter how well prepared you are, in the actual operation process, you will face various new situations, requiring timely feedback and decision-making, and speed is particularly important.

For example, if a new functional requirement is put forward, it can be responded immediately, and it can be made in a very short time, and then provided to the operating company. As for whether to go online, the operating company has a greater decision-making power.

Since they have chosen localized management, they must give the local management a high degree of trust and authority, but every decision they make needs to be fed back into the intelligent management system, which can be monitored in real time by the headquarters.

If something is wrong, it can take immediate action to avoid possible losses caused by excessive decentralization. It is necessary to decentralize power without letting the other party run out of control like a wild horse.

Just don’t mention the revenue. Last year was a stage of attracting people and accumulating businesses. It was impossible to make money, and a lot of money was invested, with a loss of up to 100 billion yuan.

Different from the previous life, each o2o platform was independent of each other, they adopted a joint business model, and each o2o platform was concentrated in one application.

This is a bold approach. Naturally, Ye Shu didn't ask them to do this, but they decided to do it after comprehensive consideration. The reason is very simple, that is, it can save money.

Application promotion is very expensive, and the cost of attracting people is not low, and they have too many platforms. If each of them operates independently, it means that the cost of promotion is high.

Only companies that go public for financing think about establishing each platform, and then each platform goes public to collect money. They don't need to do this, so how to save costs and how to achieve the maximum effect is what they consider.

They hope that through one platform, all users' o2o needs can be solved, so that consumers do not need to install various mobile phone software, and do not need to register for each platform.

And the advantage of joint operations is that as long as a user has one need, it may be a potential user for another need, which is equivalent to spending one share of the money and sharing it with multiple sub-platforms.

Of course, this method requires very strong technical strength. If the technical strength is not strong, the program will be very large and run very slowly, which will seriously affect the user experience of consumers.

Their approach is actually very simple, that is to build this platform based on artificial intelligence technology, not only make each sub-platform independent of each other, but also form an organic whole, and the user experience is better than that of independent platforms.

If you cooperate with the voice function of smart earphones, you can enjoy the best service without opening this platform, and it is very convenient to use voice operation throughout the process.

Even if you need to open it for a look, you can use the voice to directly call up the desired function, without having to look down layer by layer, and you won't feel that the program is bloated at all.

In fact, this has been very successful. In just one year, the number of users worldwide has reached 900 million. This data means that anyone with a mobile phone is a user of their platform.

Because there are only about 900 million smartphone users worldwide, a total of 100 million mobile phones were sold the year before last, and 800 million mobile phones were sold globally last year, according to the statistics of Qinglong Technology.

Although there are cases where one mobile phone has multiple accounts or one account has multiple mobile phones, this situation is very rare, and frequent replacement of smartphones is not conducive to improving user experience, and generally it is not done.

This effect can be achieved by spending 100 billion yuan, which is completely beyond Ye Zishu's expectations. He is actually ready to continue spending money, as long as it does not exceed 500 billion yuan, it is worth it.

It's just that I didn't expect to monopolize almost all mobile phone users with only a cost of 100 billion yuan, which means that even if the subsequent marketing costs are reduced, the natural attraction is already strong enough.

The money is spent on user subsidies, which can not only attract users to use their platform, but also attract merchants to settle on their platform and reach cooperation.

In fact, as long as there are users, merchants will also enter the platform for their own interests. Again, if there are consumers, there will be a market, and if there is a market, there will be merchants flocking to it.

Of course, such achievements are not determined by a certain factor, but by a combination of factors. For example, they are the first to eat crabs and have no competitors.

The second is that the technical difficulty is very high. It is difficult for competitors to imitate in a short time. Even if they do, they will not be able to reach their advanced level. After all, artificial intelligence technology is a threshold they cannot cross.

Then there is the advanced management system, which manages the service providers very reasonably, so that the platform will not appear chaotic due to rapid expansion and affect the consumer experience.

Behind all this involves the formulation of reasonable rules, supervision and supervision in place, the application of artificial intelligence technology, user-centered development concepts, and rich international application experience.

As long as it is not satisfactory, it may not be able to achieve the current near-monopoly situation. As long as the chain is not lost in the future, the business of Hummingbird Life Service Company will basically be stable.

It’s easy to start new business, you only need to increase through this platform, you don’t need to worry about winning users, and your competitive advantage will be very stable.

Last year, the transaction volume of the platform was 5 trillion yuan, and each user contributed an average transaction volume of more than 5,000 yuan. This figure is very impressive, indicating that consumers rely heavily on the platform.

What they have to do is to make all users' eating, drinking, and entertainment inseparable from this platform. If they can do it, they will just sit at home and collect money from now on, which will not be too comfortable.

Even with an average commission ratio of 10%, last year's transaction volume alone could bring 500 billion yuan in revenue to the platform. It was only for promotion, and the commission was temporarily exempted and subsidies were given instead.

This year, commissions will be collected one after another. If there are no accidents, they will be able to make a profit. In fact, as long as they don't continue to take money in, Ye Zishu will be very satisfied.