Listen to Xing Kai's How to Explode Traditional Industries with Super Products, and realize subversive innovation.

For many people in traditional industries, every day seems like a cold winter.

What would you do if you were in a traditional industry and encountered a bottleneck?

At the "Growing Thinking South China Tour Foshan Station" which ended on March 19, the book "How to Explode Traditional Industries with Super Products" shared by Xing Kai should give you great inspiration.

His sharing is mainly divided into the following three parts:

First, traditional industries have three characteristics.

1, big: the stock market is huge.

2. Old: extremely old, with almost no new changes.

3, slow: slow upgrade

"Old" and "slow" are enough to bring down most enterprises in traditional industries.

Second, the four characteristics of the packaging industry

As the founder of Yide, Xing Kai is too traditional and unconventional in the packaging industry.

In addition to the three characteristics of other traditional industries, the packaging industry also has the following four characteristics of its own industry:

1, ant market

The packaging industry is 2 trillion, but there are 300,000 related manufacturing enterprises.

The top 10 companies in the industry have a total market share of less than 1%, which shows that this is a highly decentralized ant market.

2. Capacity redundancy

According to incomplete statistics, the capacity redundancy of the packaging industry exceeds 50%, and more than half of the machines, equipment and employees' capabilities are not fully utilized.

3. Hidden rules prevail.

In the packaging industry, hidden rules are as common as eating.

A large number of abnormal trading rules will be defaulted as normal.

4, environmental pressure.

In many people's subconscious, packaging materials are one of the culprits of environmental pollution.

At present, China is facing great environmental pressure, so the requirements for the packaging industry are becoming more and more strict.

First, the concept of super products

In Xing Kai's view, there are only three names for products in the world:

1, product

"Product", an article with function or functional value, can be exchanged with the world because of its value.

2. Explosive

"Explosive" is an item that meets the current fashion trend or the staged needs of consumers.

In the Internet era, explosive products have solved the traffic problem of enterprises and created many unprecedented opportunities for enterprises.

3. Super products

"Super product" is not only related to function and flow, but more importantly, it has refreshed the public's cognition in history.

For example, iPhone and Tesla are well-known super products.

Second, the innovation of zipper carton

In the highly competitive packaging industry, how is it in deuex?

Teacher Xing Kai and his team redefined a brand-new category-zipper cartons, which helped them occupy a brand-new market.

How did the zipper carton come into being?

This stems from the fact that Mr. Xing Kai bought a lot of packages when he was doing research on Internet products. Every day he has to open dozens or even hundreds of tightly packed packages, which is a very painful process.

What would you do in this situation?

You may think of finding a better pair of scissors, but Mr. Xing Kai is thinking about how to open the carton easily without scissors.

Because he had this idea and put it into action, he got the later zipper carton.

After the introduction of this zipper carton, it was warmly welcomed by Alibaba, Xiaomi and Vipshop.

It can be seen that it is better to be different than better.

Because it is different, it is outstanding.

Zipper carton summary: subversive innovation methodology of "new market subversion"

1, Law of Innovation: New Market Subversion

Subversive innovation has an important rule called "new market subversion".

Teacher Xing Kai, how did they subvert the new market?

(1) New category innovation

In the era of feature phones, smart phones are a new category; In the era of gasoline vehicles, electric vehicles are a new category; In the era of traditional cartons, zipper cartons are a new category.

In China, you will hear about many consumer brands, but few people know about big packaging companies.

On this premise, we will strive to become China people's understanding of the packaging 1 category, so as to win the opportunity to establish a brand.

(2) People-centered product thinking

In short, products with user thinking have a future.

(3) Continuous investment in core technology research and development

I can't bear to let my children fall into wolves. Many companies are reluctant to invest in research and development, which leads to lower and lower products and is not eliminated by the market.

Mr. Xing Kai's team spent tens of millions on R&D, which made their technology lag far behind their peers and occupied nearly 90% of the market share in the zipper carton market.

2. Theoretical essence: the second curve

The success of a tear is, in the final analysis, the victory of the second curve.

It is easy for people in traditional industries to fall into cognitive boundaries, only see traditional markets and give up those emerging markets.

However, a brand-new packaging market is emerging, packaging is no longer limited to providing packaging, and users are eager for excellent experience.

This is the second growth curve that Xing Kai and his team members saw.

They do not compete with traditional enterprises in the first curve, but become the first in the new market through subversive innovation and continuous innovation.

3. Restructuring of traditional business elements.

Many people think that subversive innovation is to overthrow everything in the past.

That was not the case. Sometimes you just need to recombine traditional business elements.

For example, the early zipper cartons were just traditional cartons+double-sided tape+tear strips. After the reorganization of these three simple elements, a new category and market have been formed.

Fourth, Nbag environmental protection plastic bag innovation.

1, Nbag born from failure

The second product produced by tearing is a plastic bag.

In 20 16, they cooperated with a large domestic e-commerce company to create a product called fully degradable bag.

Unexpectedly, the number sold in 20 17 was less than 1 10,000, and the income was less than 500,000, which was not enough for a proofing investment.

2. Summarize the reasons for the failure.

This failure, without breaking a tear, let Mr. Xing Kai sum up the following three reasons for the failure:

(1) Many large companies don't understand products.

As a professional packaging company, we should firmly believe in our specialty and should not exist as a vassal of a big company. One of the reasons for this failure is that we are influenced by too many external factors.

(2) The price of fully degradable bags is three times that of traditional plastic bags, which is not accepted by the mass market.

(3) Fully degradable bags have a market in Europe, because Europe has complete composting conditions.

However, only 3% of domestic waste is treated with compost.

In the absence of composting conditions, it is still non-degradable like traditional plastics.

So there was no obvious advantage in China at that time, and the price was expensive, so failure was inevitable.

3. Re-study the product and make key assumptions.

After this failure, Mr. Xing Kai led the team members to deeply study the plastic bags in the domestic market and found that they should be composed of the following four things:

Then we began to study the products of this era, and we found that plastic bags in the domestic market are composed of the following things.

(1) Black bag: When receiving express delivery, you often see plastic bags made of waste plastics or recycled materials.

It is the cheapest plastic bag, but it is harmful to human body.

(2)PE bags: Plastic bags widely existing in the market are non-degradable and will remain unchanged for 200 years.

(3) Fully degradable bag: after entering the soil, it can be fully degraded under composting conditions and become carbon dioxide and water.

(4)Nbag: Teacher Xing Kai thinks this is the most cost-effective environmental protection product in history.

This product is made from a tear. Adding more than 30% starch can not only play an environmental protection role, but also be cheaper than traditional plastics by more than 30%.

Thus, Nbag comes from a failure, but it contains greater success.

Verb (abbreviation of verb) Nbag summary: the "first principle" of subversive innovation methodology

The first principle is to go back to the essence of things and rethink how to do it.

Teacher Xing Kai and his team members found the most important product essence of plastic bags through first principles, and reconstructed the product essence.

When everyone thought that plastic bags should be made of 100% plastic, they began to think about making plastic bags with flour and starch.

Therefore, only change is the eternal first principle.

Sixth, the "self-change" of subversive innovation methodology.

Teacher Xing Kai believes that although some achievements have been made, the crisis has never gone far.

The most common sentence they think of is: "I ruined you, which has nothing to do with you."

Many traditional industries closed down soon, not because there was something wrong with this traditional industry, but because cross-border marauders became the mainstream at present.

For example, the following three situations:

1, Didi VS traffic broadcasting station

In the past few years, the traffic broadcasting industry has experienced a cliff-like decline.

Because the driver doesn't listen to them now, he listens to Didi's order voice instead.

2, instant noodles VS takeaway

Once upon a time, instant noodles were the favorite of lazy people.

However, with the rise of the take-away market represented by Meituan, instant noodles have become a choice abandoned by many people.

Because take-away food is more nutritious than instant noodles, and it doesn't need to be cooked or boiled.

3. Black cars VS*** Enjoy bicycles

The business of black cars used to be very good in big cities in China.

Nowadays, with the rise of * * * bicycles, black cars returned to before liberation overnight.

Seven, Nbox smart carton innovation

As the above three cases show, it is very likely that you will be defeated by cross-border predators, not competitors in the same industry.

I firmly believe that "he will die and perish, commit suicide and be reborn." I realized this a long time ago and launched the third subversive innovative product.

And this product named "Nbox Smart Carton" is used to kill zipper cartons.

This brand-new carton has achieved two important subversive innovations:

(1) The cost has dropped by an order of magnitude, and the use cost of a single carton has changed from a few dollars to a few cents.

(2) Cartons without intelligent cognition have intelligent cognition.

Your first reaction when you see this product will be to pick up the phone and open it with one button.

Eight, how to achieve continuous innovation?

In Xing Kai's view, innovation is the instinct of a company. He believes that continuous innovation comes from the following three principles:

1. Listen to users' needs.

It must be kept in mind that users can never describe their needs correctly.

Do you ask users if they want a faster carriage?

Users may talk a lot, but they won't tell you that cars are better than horse-drawn carts.

You have to dig deep into the real needs of users, and Jobs is particularly good at this, so their iphone made by Apple is very popular.

2, productism

Make fine products with the spirit of artisans.

What you produce must be excellent, which is the best explanation for yourself and users.

3. Lean entrepreneurship

The martial arts in the world are fast and unbreakable.

Small batch production, and then quickly pushed to the market to meet the test of market demand.

If something goes wrong, it can be corrected as soon as possible.

Entrepreneurship is a science, not gambling.

People who succeed in starting a business often win with a high probability, and those who go in all at once like gambling, so starting a business is a narrow escape.

First, why not just be a product company?

Many people think that products are enough. Is that really the case?

In China's traditional industries, there are two particularly important factors that will inhibit the success of product companies.

1. The product company has an upper limit of 40%.

Like the domestic smart phone market, the share of the first place is above 20%, occasionally reaching 30%, but almost no one can exceed 40%.

40% is almost the ceiling of product companies, but this share is not enough in traditional industries.

2. The upgrading of traditional industries is slow.

The upgrading of traditional industries not only comes from the change of one product, but also needs the upgrading of the whole industrial chain, from materials to manufacturing technology and even logistics technology, so it takes a long time and the upgrading progress is bound to be slow.

Second, to be a platform: beyond the limitations of product companies

The upgrading of traditional industries is slow, but the stock market is huge.

Didi itself is also in the traditional taxi industry, but they have established a huge platform company, accounting for nearly 70% of the market share.

From the successful example of Didi, you will find that it is more wise to use traditional industries as a platform.

Third, why tear it into a platform?

A tear began to develop its own platform on 20 17, which originated from the following four points:

1. There are no leading platform companies in the industry.

2, small and medium-sized customer service market blank

3. The product platform has low customer acquisition cost.

4. Platform users have high stickiness and high transaction frequency.

Four, 2B platform three stages

When Xing Kai and his team members went to study the 2B platform, they found that it had gone through three complete stages.

1, information platform

2. Matching platforms

3.Xaas: everything is a service

For Yide, it is their goal to build their own platform and realize "everything is service".

At present, a tear cloud platform has met the packaging needs of more than 654.38+00,000+SMEs, and this number will be even more impressive in the future.

Behind this is the long-standing thinking that "one person is not as happy as others".

This shows that the product+platform strategy is a wise choice for more traditional industries.

Through teacher Xing Kai's sharing, we found that traditional industries also have a chance to win the second spring.

If you understand his method and apply it to create a super product that belongs to you, even in a traditional industry, you will certainly make great achievements!