What have you done right in the past 20 years_

What have you done right in the past 20 years?

"If we just want to be the boss of Fujian, then we just throw money at opening a store. But if we want to be the boss of the country, without a management system platform, we will definitely get out of control. "In 2001, Baodao Glasses, which had just come to the mainland for 3 years, had only 30 stores, but decided to go to a large-scale ERP (Enterprise Resource Planning) management system, and even the ERP company was shocked, because they did not have such small customers in the world. However, it is the extraordinary insight and courage that have laid the foundation for the rapid expansion of Baodao Glasses in the next few years. In 2011, Baodao Eyewear reached 1,000 stores in Chinese mainland. In March 2019, Wang Zhimin, Chairman and CEO of Xingchuang Vision Group, was invited to share at the college's Unbounded Consumption Innovation Camp. Combined with the development process of Baodao glasses, he introduced the traffic operation strategy of Baodao, and the experience of real knives and guns, which has both a historical perspective and a practical and down-to-earth atmosphere. Today, we will first pick up some of them and share them with you. Why did those ambitious companies collapse Around 2005 and 2006, many retail companies emerged from all walks of life, claiming to be the first in the country or even the first in the world within a few years, or to kill XXX, but the vast majority of them collapsed silently, in the final analysis, there is no management system platform to support its business expansion. As far as the small area of retail of about 100 square meters is concerned, it is only when there are 1,000 stores that you get the admission ticket. If you don't have 1,000 stores, or you don't have more than 100 cities, you don't know how to actually do retail. To do a good job in retail, not only need to sort out the retail brand structure, have cross-provincial and cross-company management capabilities, when you break through the threshold of 1,000 stores, there will be an urgent need for more efficient logistics management and personnel training mechanisms. Baodao Glasses is a subsidiary of Xingchuang Vision Group, which came to the mainland in 1997 to develop, and by 2000 there were only 30 stores. But at that time, we decided to go online with ERP, and it was a super-large ERP. That ERP company was shocked because they didn't have that small customers all over the world. This was indeed a very risky thing at the time, but few competitors in its class would think of it. When I reported to the board of directors at that time, I said that if we only want to be the boss of Fujian, then we can just spend our money on opening a store, but if we want to be the boss of the whole country, without a management system platform, we will definitely lose control. It is precisely because informatization was done very early that when we turned to digitalization later, the foundation was sufficient. This is important, but it's not the only reason we've kept moving forward. We have thought hard many times about how to transform in the future. Especially on the day when the 2012 Tmall Shopping Festival broke out of the total transaction volume of 19 billion, I clearly knew that the world was different. In 2013~2017, there are many real new brands that have been made, and the younger generation of consumers is obviously different. In 2014~2016, we successively did some research, and the conclusion was particularly heart-wrenching: Baodao glasses are not attractive enough for young people, they think that this is a place where parents go. At that time, Treasure Island was very tangled, because you are not young, but you are not old enough. Recently, the national tide has surged, and we will find that brands with a history of 100 years can play the best and are relatively easy to operate, but when you do not have a history of 100 years and no longer have the freshness of a new establishment, you will be very uncomfortable and stuck in the middle band. To this end, we are constantly incubating new brands to adapt to the generational changes of the younger generation of consumers. At the same time, in the subsequent O2O wave, we made a timely transformation. In 2013, we already felt that the world was going to change, and this year Ali proposed to do O2O. In the case that our technology in all aspects is very immature, we have to cooperate with the "boss", which is particularly painful to dock, and we reluctantly finally launched 800 stores to the O2O platform, but we won the vast majority of orders in the industry with an absolute advantage. The Matthew effect of the Internet has caused the leading companies to eat up almost all the traffic, and those who are behind can only admit defeat if they can't hold on. Especially in 2012 and 2013, it was still the era of PC Internet, when the traffic of the Internet was still the most centralized, and it was very important to grab this position. So, even though we weren't particularly clear about what we wanted at the time, we were determined to start the change. 03 The big judgment is good, and there is an opportunity for continuous iteration From the perspective of the development of global e-commerce, the United States, Europe, and Japan are basically eight or nine years earlier than China. In their experience, after a certain amount of total retail sales has reached a certain amount, its growth will be particularly slow, and 15% is a tipping point that is almost difficult to cross. But if you compare this situation to the Chinese market, it is easy to deform the posture when formulating a strategy. I thought early on that the Chinese market would grow at a rate of much more than 15% because the offline experience was terrible and the rent was too expensive. According to global data across the industry, there are two particularly large expenditures in the retail sector, one is personnel costs and the other is leasing costs. The situation in China is just the opposite of the United States, where the rental cost is more than 25% and the personnel cost is 12%~18%; In the United States, the cost of leasing is only 10%, and their personnel cost is 30%. When more money can be distributed to employees or partners, it means that more talent can stay in the local area; When more money goes to landlords, it means it's hard to retain people, and the consumer experience drops.We are also talking about being a warm enterprise, and having a temperature depends on partners and employees, if we can't even keep people, it will definitely not work. Looking at the development of the glasses industry from the perspective of traffic, it is actually very simple. We didn't make too many mistakes in judging the big picture, so we had the opportunity to iterate. In the era of business 1.0, there must be an emphasis on rental lots. The first generation of retail was opened on the streetside, and after the department store came out, what to do was to open the store into the mall through various methods. As soon as hundreds of stores were stored, the battle in the 1.0 era was basically over. In the era of business 1.0, the fight is coverage. In the era of business 2.0, it is necessary to build a platform. The same logic as 1.0 is to grab more traffic ports. In the era of business 3.0, 2013 is a relatively special year, and the penetration rate of mobile e-commerce is only 35%, but it only took 18 months for this rate to reach more than 75%, and after 2016, it is almost the world of mobile Internet. This is by far the fastest in the world, and it brings with it a lot of change and opportunity. When deciding on the direction of your transformation, please know your DNA deeply, and we are faced with an important choice during that turbulent time. The eyewear industry is relatively special, and there are differences in everyone's understanding of the nature of the industry. In Asia, people who walk into an optical store are seen as consumers and behave more like shopping, and the eyewear industry is often categorized as a big consumer or even a fashion industry. However, in Europe and the United States, it belongs to the medical category, and the person who buys glasses is considered a patient. In Asia, only Singapore, Hong Kong, and Taiwan have the Optometrist Act, and optometrists must study for three to four years in the Department of Optometry (medical discipline) to be qualified to become optometrists. But in Chinese mainland, the professional qualification of optometry was cancelled after 2015. This has been a huge problem for us, especially when thinking about strategic transformation, and we have struggled with whether to go the fashion route. In hindsight, we concluded that when you start a transformation, you must first have a deep understanding of your organization, especially the DNA of your corporate culture. Most of Treasure Island's employees come from the retail industry, and many have medical backgrounds, so it's understandable how challenging it is to transform a doctor into a fashion stylist. Therefore, between the professional and non-professional fashion glasses industry, we finally decided to transform and take the route of big health, and train 1,300 full-time optometrists with 1,200 stores to provide users with the best quality service. The eye is the only organ that can directly observe blood vessels and nerves without surgery, and this work can be replaced by AI in the past, where doctors could judge the risk of chronic diseases through photographs. In 2018, we deployed fundus cameras on a large scale in our stores, combined with AI for fundus screening, and the activities held in various places were also very popular, proving that the grasp of their own health data is the real need of the people. Based on this, we have made a turn in the domestic glasses industry and entered the field of big health services.