Galaxy venture capital xu fang: "fast" and "slow" of early B2B entrepreneurship
Update time:2019-05-31         Source:Xu fang galaxy venture capital

On May 16th, the second financial education training camp of tsinghua university was successfully held in wudaokou school of finance, tsinghua university, sponsored by the institute of financial science and technology of tsinghua university, co-sponsored by the guizhou provincial committee of civil construction and organized by the Internet finance laboratory of tsinghua university institute of financial science and technology. Many experts, scholars, investors and entrepreneurs were invited to teach the class, including assistant dean and assistant professor liu bibo of wudaokou school of finance, tsinghua university. Galaxy venture partners xu fang from the B2B investment perspective to bring students wonderful course sharing.▲ xu fang, managing partner of galaxy venture capitalGood afternoon, entrepreneurs. I am very glad to receive the invitation of jia nan teacher to come back to his Alma mater of tsinghua university to share a simple story with you today. We've seen a lot of B2B projects over the last few years, and we've seen the ebb and flow of B2B startups and investments. I saw many students from the building materials, home decoration, agriculture, logistics and other fields, today's theme is also the transformation and upgrading of enterprises, so I compared the enterprise to a car on the road, the customer is our front wheel, the product is our rear wheel, the channel is our bearing, technology is our engine, and the CEO is the driver. On the road of starting a business, when should be fast, when should control the pace to slow down, I do some simple summary.Customer: fast customer acquisition, slow customer operationWe have to get customers quickly, now there are a lot of new tools to get customers, we have to boldly borrow these ways. The way of getting customers should not be limited to the traditional mode such as e-sales, exhibition, floor sweeping and floor pushing. Take two examples, one is a small program, one is douyin. Applets through simple link forwarding, can quickly know that customers click, clues retained, accurate sales.We import the mattress project invested in a 'best sleep yan', on the small program to launch a sales promotion activity, from franchisees to small b sales to downstream C end customers, in the background can quickly see what ID click, whether to place an order, what characteristics of regional sales orders, customer best, what is the customer's customer fission effect is very fast.The other one is douyin. When we open douyin, we can see a lot of contacts, even friends of friends. Now web celebrity rise, the rise of personal IP, these small b are our very good customers, we also use these potential energy to more quickly promote the core products of our platform, the future form our own brand to reach the end customer, we should attach great importance to the power of 'individual business' rise.When we get customers quickly, we need to think about retention, conversion and re-purchase. In the B2B field, there are two kinds of customer trust, emotional trust and professional trust. At the beginning, we can quickly drive a group of customers to cooperate with us and generate transactions by making use of our contacts and upstream and downstream relationships in the industry. However, how to retain these customers and how to continuously improve their re-purchase requires us to compete with our deep service ability to customers.In this process, we need to clearly position our customers and understand their real needs. Our service for big B and small B requires different requirements on our ability. Maybe some big B CARES more about quality and supply stability, while small B CARES more about speed and price. Their demands are different for our company's service system, which is directly related to the company's organizational structure, product system and business model. Therefore, we can get customers quickly, but operate customers slowly, so as to grasp the core demands of customers.Product: product innovation should be fast, while SKU increase should be slowContinuous product innovation is a core driving force for the sustainable development of enterprises. It is difficult for early-stage entrepreneurial projects to get good support from upstream suppliers, and there is a certain game between e-commerce transactions and traditional channels. We are a project called containing match, founder to avoid direct competition with traditional channels, what did he do after the collection of supplier product innovation, make the standard package, only in his SAAS system customers can enjoy the meal package, on the one hand, he through the game all the downstream customers into his members, on the other hand through the supply chain, set up its own core barriers.Another project invested by us has three heads and six arms. 70% of the products of the platform are self-owned brands. We control the production line of the factory by ourselves and provide quality control standards.In the process of product innovation, the horizontal expansion of SKU is slower, because more skus will change the customer structure and company service system of the upstream and downstream. For example, do the platform of the whole car parts, suddenly increased the category of maintenance parts, the downstream terminal repair shop, the main demand for the whole car parts is to match the model of the product to be accurate and good quality, the requirement for maintenance parts is fast and low price.The difference of SKU has different requirements on inventory, capital turnover and logistics. If we have not achieved a certain order of magnitude in the industry to expand the maintenance of parts, in fact, the company's internal operation requirements and challenges will be very high. Large industrial products, such as MRO and fastener industry, are all racetracks with a large number of skus. We have been studying this field, so we pay much attention to our core killer products in the early stage, and we will add new skus after the core products reach a certain level and occupy a strong advantage.Channels: occupy base areas quickly and expand areas slowlyWe found that B2B entrepreneurs fall into four categories: executives from traditional companies, executives from large Internet companies, successful businessmen in traditional industries, and grassroots entrepreneurs. The four types of people are genetically different, so they play differently at the beginning. In the early stage, they must exert the advantages of the core team to the utmost.Galaxy ventures invested in a community fresh project in nanjing called happy tomatoes. The whole team is beauty dish out a gang, channels, procurement director, director of nanjing area is very familiar with, deep tillage in nanjing for a long time, so there is a strong supplier resources, and suppliers in terms of food quality and price are all for the support entrepreneurs to the biggest discounts, in a short time, the team will offer 50 stores, is expected by the end of at least 700 stores in the whole east China area, become the nanjing area, the king of east China regional channels.When the base is established, it has accumulated a large number of core suppliers, which can be expanded together with the company, and our talents can also be exported to the whole country, so that we will have more advantages when we expand to other provinces and regions.Early on when core resources are not accumulated, do not blindly expand the area, but focus on firepower. When entering a new city, the population structure, residential density and consumption habits of the city will all affect our category structure, and different categories have different requirements on the ability to nationalize the supply chain. A good business model, upstream suppliers, franchisees/self-owned store customers, consumers are profit makers, can not be driven by the capital of nationalization and nationalization, or to return to the platform real service value.Technology: early IT investment should be slow, late IT should be fastB2B startups, in angel, PreA and round A projects, IT investment is not the key to success. We need to constantly think about how to improve the efficiency of trading, which is the essence, not obsessed with how high and perfect trading tools. We need to learn to borrow from external mature software systems at the early stage and change the presentation page. Although these systems cannot meet our current needs in all aspects, it is right to verify the feasibility of our business model.The capital of early financing is limited. If we develop a system again, we need to invest a lot of manpower and capital, and the development of this system needs time. Maybe our business line has been adjusted after the development.The investment of technology is just like the engine when we drive. With 2.0t and 3.0t, we can go on the road and reach the destination. But the speed and time of arrival are different. In the early days, make sure we're on the right track, not how fast. Wait late business model validation, already spans from 0 to 1, then began to consider the whole side of science and technology input, through the upstream enters sells saves, embedded RFID traceability, knowledge base development of AI, BI data analysis, through the power of science and technology to help upstream production decision, help downstream smart sales, customer management, and so on service.Mentality: straight line to fast, slow curveNow the fresh track is particularly hot. The batch of O2O fresh start-up projects started in 2013 are daunting to many people, and the huge subsidies and losses cannot support the company's profits. However, since 2018, this track has become extremely hot, and there are four competing formats: online self-pick-up, community fresh food store, pre-warehouse distribution, and online vegetable market.When the influx of capital into the track, when most entrepreneurs to enter the track, we must constantly look up road, this is a fast track, so we compete in a straight line or the speed of the scale, as well as the speed of our financing, in the early days of the time don't too mind valuation, can choose the right for the company to investors is one of the most important.In the field of medicine, policies such as 4+7 centralized purchase, two-ticket system, prescription outflow and medicine separation are emerging in an endless series of ways. At this stage, we should lower our head to learn more about macroeconomic policies, financial dynamics, tax adjustment and potential invisible competitors. When the curve appeared, it was also an opportunity for our entrepreneurs. In 2015, the policy of the pharmaceutical industry changed greatly, and two companies -- pharmacists and small medicine -- appeared. Starting from the different dimensions of matching platform and technical tools, the service terminal reached more than 100,000 pharmacies and small clinics, and the development speed was very fast. So the inflection point when we want to move, find the best entry point, sink down to do a good job for customers fine operation and service.Thank you for the great era that has given us so many opportunities. So I wish all entrepreneurs and entrepreneurs the best of luck. The investment history of Benchmark is almost equal to '20 years of silicon valley great company history'. Here, we hope that the growth history of each company is an industry development history, and it is we who witness the B2B development history of China together

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