Aggregation Model: How E-commerce Destroys Traditional Business Model

Today's e-commerce is destroying the traditional scale expansion model, just as Xiaomi is destroying domestic mobile phones and Tencent is destroying mobile Unicom. The Xiaomi model may not be perfect, and Tencent may be naive, but if you don't understand aggregation)-the model represented by Xiaomi and Tencent-Alibaba also calls it C2B model, then the wealth and status you have now will become the gold hanging on your wings when you fly and the burden when you fall. Traditional enterprise competition mode: bigger is the only choice. Many people think that the biggest value of scale expansion is scale benefit. In fact, the scale benefits of traditional enterprises have long been offset by their bureaucratic management. The advantage of large enterprises is to control channels. For example, the scale of Vanke is easy to obtain land resources, and the scale of Haier is easy to obtain the entrance of shopping malls. When I gave a speech to EMBA students at Guizhou University, I said: The best commercial complex in Guiyang sells non-Guizhou products, right? I have no objection to opening the market. I want to explain that in the era of industrial revolution, the so-called market opening led to the monopoly of "shops" and communication channels by giant enterprises, making it more and more difficult for small companies to start businesses. I think, no matter what standard you use, if it is more and more difficult for small companies to start businesses, then such a market environment must be anti-market. Without a large number of small companies, large companies can sleep on the credit book of brand monopoly. More importantly, where are the customers? No matter how big companies flaunt customer-centeredness, in essence, customers are the objects of "investigation": investigating you, getting to know you, and then "hypnotizing" you. In this "push" marketing game called "Shi Yuzhu's Art of War", consumers are always the target of marketing. There is a simple reason. Large companies control communication channels. Just look at the price of CCTV. As far as the entrepreneurs in China I contacted are concerned, Wang Shi is most wary of "scale worship". When he put forward the strategic goal of Vanke 10 year100 billion, he was disgusted, because in his mind, Vanke is a company that promotes humanistic spirit. But in the traditional real estate development model, it is an inevitable choice to be bigger. This year's Vanke is obviously synonymous with the scale of real estate. At this point, Li Dongsheng know much more clearly. His slogan is: "big is not necessarily strong, but not big, it is doomed to be weak." This is the truth, telling the essence of the development of traditional enterprises, that is, the industrial revolution is a "space war." Whoever has the most resources and occupies the largest space (physical space and communication space) is the boss. The so-called e-commerce is actually a simple business phenomenon, that is, doing business through the Internet. What are the characteristics of the Internet? Is to completely subvert the limitations of space. Internet companies have a revolutionary spirit since their birth, that is, they don't emphasize the possession of space resources like Vanke and Haier, but emphasize the possession of customers' time resources like Apple. In other words, companies like Google and Alibaba don't have any space scale, but they have enough time to give their customers: customers use their products to save time, Google saves time to obtain information, Alibaba saves time to shop, and consumers can use them anytime and anywhere. Especially the mobile Internet. The mobile internet allows businesses to "contact customers at zero cost and zero time". No matter where you are, the mobile Internet can connect to you in an instant. I call this phenomenon "instant connection"-anyone on earth can connect instantly. For example, the US Federal Bureau of Investigation released the "Top Ten Most Wanted Criminals". 10 seconds later, a Central American resident found out that one of them was his neighbor through the mobile Internet, and immediately sent a "private letter" to the FBI, and arrested him half an hour later. Charles Martin, a famous American network strategist, called this phenomenon "global thinking", and I called it "instantaneous aggregation", that is, "zero-cost contact between the police and the people" caused by the way of information dissemination, thus completely changing the mode of "police catching bad guys"! More than a decade ago, charles martin said in his book the digital estate that being able to understand beyond space's region and see problems is a leap of thought, and in the borderless empire of the Internet, aggregation is far more effective than brutal competition. Yes, focusing on the finiteness of space resources is called competition, and focusing on the infinite combination of customer value is called aggregation. From the competition of limited resources to the aggregation of global resources, this is the biggest subversion of e-commerce to traditional industries! Xiaomi mode: The story of why Xiaomi can easily beat the domestic mobile phone that the FBI wants vividly explains the truth of the e-commerce revolution, that is, no matter who, supplier, manufacturer, consumer or even channel provider, no matter who or what, it can be "instantly aggregated" and become the object of aggregation. This is essentially the principle of Xiaomi mobile phone mode. Regardless of the result of Xiaomi, Lei Jun is making a brand-new Internet model! The core of this model is that he "instantly aggregates" a large number of loyal customers in Weibo and online communities at a very low cost, and then uses the "instant aggregation model" to build a mobile phone supply chain. In theory, he can get the best suppliers in the world, and the quality of such suppliers may even "possibly" surpass Apple. Why? Excluding the differences in operating systems, Apple's suppliers can theoretically become Xiaomi's suppliers, and Xiaomi may completely beat Apple on the "mobile phone". Of course, Apple's power is not in the "mobile phone" but in the "content platform", which is why Xiaomi will never become an apple! Although Xiaomi can't be an apple, it's easy for Xiaomi to beat TCL mobile phone, Lenovo mobile phone and Haier mobile phone. There is a simple reason. This is a contest between two ways of thinking and business model. Domestic mobile phone manufacturers are still the product of Motorola era, still staying in the traditional supply chain (survey-design-mold-manufacturing-channel-service), playing the most primitive scale game. The clearest understanding of the aggregation model is Alibaba's clearest understanding of this business model. The "C2B" proposed by Ali Research Center is a mature model of the Internet, which is a very insightful conclusion. Simply put, this conclusion is the mature business model of the Internet, namely "order+product customization with consumer participation+e-commerce platform". Xiaomi is actually the representative of this model. The only regret is that Xiaomi Company doesn't know enough about the "circle culture" of rice noodles. Lei Jun is an excellent entrepreneur who has insight into the spirit of the Internet, but he obviously doesn't understand the principle of sociology, that is, if any force fights with culture, the victory must be culture! Return to C2B mode. Anyone familiar with the JIT mode of Toyota manufacturing knows that the JIT mode of Toyota is C2B, which is the acme of the traditional manufacturing system, that is, the so-called "flexible manufacturing". But Toyota is too difficult to learn. Today, every company can realize "flexible manufacturing" and Toyota JIT through instant aggregation of e-commerce models. This is what I said. E-commerce is destroying traditional business models. Nokia is dying, Motorola is falling apart, and the decline of China's two favorite brands is not accidental, because the mobile phone field is the most competitive battlefield on the Internet, so the traditional giants fall the fastest. I am a loyal believer of Drucker and a follower of his theory. According to Drucker, it is not technology that destroys giants, but changing customers. Without e-commerce, there is no business-all wars are for customers. I want to ask all entrepreneurs or employees who feel that e-commerce has nothing to do with themselves and their industries to remember that it depends on your customers, not industries and products. As long as he gets information on his mobile phone every day and looks for answers online, then your industry is already e-commerce, because your competitors may be "connecting them" and "connecting them" through the mobile Internet. Isn't it? All wars are for customers, and the winners of all wars are those companies that successfully acquire customers.