Entrepreneurial story: cut the last category, spend ten million to make only one towel, from loss to re-creation of glory

Behind a brand, there is a story of entrepreneurship.

Mr. Zhu, entrepreneurial transformation failure, and then get the Lei Jun ten million angel investment, only do towels, focus on quality and users, was called "towel brother".

Mr. Zhu's entrepreneurial road, the beginning is very smooth.

He used to be an executive at Shenzhen Rainbow Mall, and has a lot of experience in the traditional retail industry.

Later, because of the birth of his daughter, he began to choose to quit his job and start his own business.

At that time it was 2011, catching the golden period of B2C e-commerce, Mr. Zhu chose the household industry, with the OEM model, selling alarm clocks, towels, cotton pads, cups, and so on more than a thousand of daily necessities.

Wholesale products from small factories, labeled with their own trademarks, plus beautiful pictures.

Because these products were not branded at the time, Mr. Zhu seized the opportunity and by the end of 2012, the company's sales had reached 150 million, with a profit of 30 million in two years.

Ranked first in the Internet segment.

The company did a great job, and attracted capital to the door.

That day, May 23, 2013, Mr. Zhu said he remembers very clearly.

It was the day he and Lei Jun met for the first time, and it was also the day his product was sprayed with nothing.

Lei Jun said, do brand to "focus, extreme, word of mouth, fast", you can not do this.

After listening to Lei Jun's words, Mr. Zhu was very angry, thinking that his product in two years to achieve the first segment, earning more than 30 million, in your case, it has become garbage.

After returning from Beijing, Mr. Zhu, although he also realized that the dividends of their own model of labeling is about to disappear, but the direction of the company's transformation, he has not thought well.

Later, Mr. Zhu from time to time to brush the news of Lei Jun, found that he did the phone valuation of three years broken tens of billions of U.S. dollars, and thought, so this person is so powerful.

Then his business model is a reference value.

So Mr. Zhu opened up, with a team of more than 1,000 of their own products cut to just more than 50, only to do boutique, focus on quality and users.

But how can the transition be so easy?

In two years, this approach cost him more than 20 million dollars.

Seeing that the business is not doing well, and the money in his hand is getting less and less, Mr. Zhu decided to meet Lei Jun once more.

The second meeting, Mr. Zhu brought his 50 products, came to Lei Jun here.

Once we met, Lei Jun said, "I've been waiting for you."

Not only that, Lei Jun bought all of Mr. Zhu's three years of products one after another.

But the conversation turned, Lei Jun's question, and Mr. Zhou was confused.

"What exactly are you going to do?"

The previous thousand or so products could be said to be doing a Chinese version of Indy, but these fifty are nothing.

Mr. Zhu was dumbfounded and realized the root cause of his failure.

So, go back to Mr. Zhu put their own products in accordance with sales, repurchase rate, selected the highest sales repurchase the most of a product: towels.

What if I only do towels?

When Mr. Zhou told Lei Jun about his idea, he received a $10 million investment from Lei.

In 2015, Mr. Zhu started his new journey.

A good towel needs a good fabric that is absorbent, soft, and doesn't shed hair.

In order to maximize the product and find the best quality of cotton, Mr. Finally, after spending 6 months, he found a satisfactory cotton in Awati, Xinjiang: long-staple cotton.

Across half of China, Mr. Zhu saw for the first time the cotton production area of Xinjiang, and this scarce long-staple cotton, which accounts for less than 1% of the world's cotton production.

This cotton has plenty of sunshine, is hand-picked, and screened for three filaments, which guarantees the quality of the cotton. Towels made from it are naturally more absorbent than 6 times the international best quality, and are soft to the touch with almost no linting.

With many towels, sizing, softeners, and dyes are added during the production process. But with this premium raw material, Mr. Zhu uses all-natural processing techniques to produce the most quality product available.

And so Mr. Zhu's towel was born.

This artisanal product, on the shelves only 7 days, sold 150,000, also became the only designated towel brand of the G20 Summit.

On the road to entrepreneurship, risk and opportunity **** line, all the seriousness and effort are worth it!

#Entrepreneurship ##Entrepreneurship story ##Business model innovation ##Enterprise ##Boss ##