Ma Yun Liu Qiang East Separated From Each Other Only Because Of 10 Million Profit

A famous shoe manufacturer in China.

Made 2 billion, net profit is only 10 million, and triggered the chairman of Alibaba board Ma Yun and Jingdong CEO Liu Qiangdong spaced apart from each other.

Liu Qiangdong said you should earn 380 million, not 10 million.

These two days are more fire, because a well-known shoe enterprises in China (electric business) made 2 billion, net profit was only 10 million, and triggered the chairman of the board of Alibaba, Ma Yun and Jingdong CEO Liu Qiangdong spaced apart from each other.

What's the bottom line?

In February 19th, Liu Qiangdong, chief executive of Jingdong group, made a surprise at the Sixteenth Annual Conference of Yabuli Chinese entrepreneur forum in 2016.

If the Department cuts, if the sales of an enterprise are sold by electricity suppliers, it is a disaster.

In February 20th, Ma Yun, chairman of the Alibaba's board of directors, shouted a different view and expressed different opinions.

Ma Yun: what else is easier than cutting the Department? If you are an entrepreneur, doing business is always the easiest thing to do. How can this enterprise do well?

Liu Qiangdong, chief executive of Jingdong group, gave an example of a leading female shoe company in China.

Now I would like to record this paragraph:

A few days ago, I talked with my friends about a well-known brand of shoes in our country. The profits over the past decade were very, very good. Someone gave me a figure, saying that all shoes in China last year were

The most successful pformation of e-commerce is 1/3, which has made 2 billion of the online business, but not the Jingdong, with a net profit of 10 million.

The boss is very happy, said you see I do better than Liu Qiangdong, I made 2 billion, and also made 10 million, but if you look at your financial statements, you 2 billion, if you supply your customers, let customers sell, rather than do their own direct sales, your net profit should be 380 million, because your remaining 2/3 profit net profit of more than 10%, you can earn more than 3 billion, go online, do it yourself, in fact, the electricity supplier is one, you need to accumulate knowledge too much, not all brands have to establish their own electricity business department, you can cooperate with the electricity supplier company, can cooperate with him, do not represent direct sales.

I also appeal to all the traditional brand entrepreneurs to forget the electricity supplier, and go back to the first thing to cut all the employees in your electricity supplier department.

You may doubt the algorithm of the 380 million net profit. According to a well-known media, the estimated profit of 380 million yuan is calculated by the average profit rate of the footwear industry.

Ma Yun's viewpoint:

Today, all enterprises remember: the electricity supplier is not a retail channel, is not a sales way, is the progress of an idea, like when the invention of electricity, of course, you used to burn with matches, you are burning coal, when you suddenly use electricity, you turn the suppliers who supply the matches to the coal, but the internal talents need to be changed very complex. But are you willing to insist on burning coal or people will use electricity, you are willing to use electricity, the cost is higher at the beginning, you have to have such equipment, but the control of the reform lies in whether you believe this is the future.

If we believe this is the future, we must change it.

So I feel that it is not to turn off the electricity supplier departments, but to think about how to make the electricity supplier departments more powerful, and truly focus on customer demand as the main direction.

We know that large enterprises, many people are considering outsourcing, I have several departments in the company is never outsourcing, services are not outsourcing, sales do not outsource, complaints can not be outsourced.

Because if you don't know what the customer complains about, what you like, you are equal to wearing ten clothes. You don't know whether it's winter or summer. Now, let's take a closer look at how many of those companies that outsource services are living well, because they are far away from the customers' crying and away from what customers like and hate.

Second, sales can not be outsourced. Sales are the first line of contact with customers. They need to know what customers need and what they need to compete in the market. If these two things are outsourced, what do you want to do? What is the most extensive way of doing this is to create a product that you can sit in the room and design yourself. If there is supply side reform in the future, there will be no consumer demand for C2B, no consumers' pain, no tears and joy from consumers, how can you reform yourself, and reform yourself, for the boss's favor or for cost.

So I think I want to understand what is necessary and what is not.