Similarly, the B2B/ industrial Internet industry, which has almost no capital market exit precedent, can be said to be a stepson who is not well treated by the father in the eyes of most capital. Also relying on China's huge market space, B2C/consumer Internet every pattern generation can quickly gathered heat flow, bring into focus, become the darling of the capital and the media continue to chase, spelling, interesting headline IPO this year a lot of star, in an increasingly dried up in the C end of the cash flow to develop new gold mine, but also planted in the growth of national anxiety of concern. However, in the small and medium-sized industry, many monopoly enterprises have emerged in the B2B field, but few investors are interested in and understand, and are still in the state of self-promotion within the industry.Thank you for your help. Fortunately, China agricultural network, the leading B2B industry in agriculture, was acquired by zhuo, a listed company in 2016. Another steel industry giant looking for an online market for steel is already in the schedule; Recently tencent new organizational structure adjustment, focus 2B become key words, scattered 2B business layout has a clear integration plan... It is expected that there will be some positive impact on the capital market of B2B industrial Internet. In the white paper 'new trend of technology enabling b-end' released by pricewaterhousecoopers in June 2018, it is pointed out that the upgrading of consumption actually drives the upgrading of industry, and the business model has shown a trend of gradual transformation from c-end innovation to enterprise-end innovation.B2B enterprises in different industries make the same choiceYu Qingping late, wind wave between the heroine, in 2016, China's economic growth in downlink, restructuring to capacity policy began to work, this is the first year for the second round of the B2B, different from the previous round of alibaba, automobil, business, etc. On behalf of the enterprise, this round of the rise of B2B companies no longer is the messaging, membership fees and advertising for survival, choosing instead to market, supply chain service providers and even the form of financial media become the hub of the industry, matching, tray, consignment, self-supporting, all involved in supply chain and trade flows became more and more B2B companies happen to coincide choice, It also directly determines that most of the enterprises entering the market in the later stage have followed such a model.This mode, which fully combines operational leverage and industrial extension opportunities, is the most suitable posture for current industrial Internet entrepreneurship. Although very high requirements have been put forward for the operation and development ability of the entrepreneurial team, isn't it the passion of entrepreneurship to march bravely towards difficulties?Understand B2B industry attributes and industry monopoliesIf say B2B does poineering work to have what advantage to pair of B2C, that is to have relatively big possibility to monopolize an industry below correct condition certainly.In steel industry B2B companies looking for stencil, for example, a pure private team, within 6 years to seize the market window, with 2 billion yuan of total funds to build a 64 billion transactions, revenue of the first year of 17 billion, 100 million yuan net income (excluding effects on the changes in the fair value of assets and liabilities) of the company, the market share ranking the first (30%), and is the only city of rate among the top three non-state unlisted companies. According to the prospectus of zhaogang.com, the top three steel e-commerce enterprises by revenue have a total market share of more than 65%, and the oligopoly has been established.Look at another B2B ZhongNongWang benchmarking in the field of agriculture, 8 years of development, from the disclosure of the annual report of listed companies produce available ZhongNongWang revenue 32.6 billion yuan, 2017, 100 million yuan net profit, according to the drow at related business, can be calculated ZhongNongWang its sugar category of China sugar market share of about 30% in the trade market.Under the background of trillion industry, zhaogang net is an absolute leading enterprise that has built a hundred billion industry segments from zero within six years. We believe that there is no doubt that it has great value, and the capital market will eventually give such an enterprise a reasonable price. However, in the agricultural industry where China agricultural network is located, they cannot quickly form the demand for upstream and downstream trading on the platform, which requires a very stable and long-term management team to continuously focus on the operation and spend five to ten years, which may be another reflection of the market value of the industry.The main reason why industrial Internet enterprises can achieve track monopoly relatively easily is the difference between B2B and B2C customer behavior. To put it simply, b-end customers have higher requirements, higher loyalty and better demand extension than c-end customers. Generally speaking, industrial Internet companies have the opportunity to meet the diversified needs of b-end customers in the process of 'doing business' through a product matrix, and to establish a long-term win-win cooperation mechanism with customers.The operation threshold of such a company is very high, and it is difficult for competitors to occupy the market space by simply burning money and subsidies, so in the segmented industry, a dominant situation will often be formed. In fact, most mature industries that have been through a long period of industrial reshuffling will end up like this.The secret of industry monopoly is operating leverage and capital costIndustrial Internet enterprises, from the financial data alone seems not very sexy. Take zhaosteel network, Shanghai steel union and China agricultural network as examples: zhaosteel network achieved a net loss of 124 million yuan in 2017, with a revenue of 17.5 billion yuan. In 2017, Shanghai steel federation had annual revenue of 73.7 billion yuan and net profit of 66.5653 million yuan. Zoll zhilian's China agricultural network had an annual revenue of 32.6 billion yuan and a net profit of 105 million yuan in 2017. Moreover, the asset-liability ratio of these three industrial Internet enterprises exceeds 70%. With low profits and high debts, such enterprises are not favored by many investors at first sight.But if we take a closer look, we will find something interesting. Let's take looking for steel mesh as an example.From 2015 to 2017, when the revenue scale of zhaogang increased by 185% and the gross profit increased by 1150%, the sales and administrative expenses, which are usually regarded as fixed costs, increased by only 27%, and the ratio of revenue decreased from 4.5% to 2%. Income continues to rise, fixed cost proportion continues to decline, this is the embodiment of high - growth enterprises operating leverage. As a form of expression of scale economy, operating leverage is the most common moat of large enterprises, which is the obvious characteristic of enterprises in the head of subdivision industry.In traditional financial models and economic models, high operational liabilities mean high financial leverage, which usually occurs in the stage of scale replication after the formation of products and services. Without break-even, financial investment will not be easily concerned. But the Internet age does not follow such rules linearly. From Mr Bezos to Mr Ma, it is clear that having scale means connecting and sticking to a significant number of customers, that the future is discounting, and that cash flows (related to operational leverage) and investments (from industrial extension) are the most valuable.Ensure continuous value delivery with product matrix and industry extensionAt first glance, it feels like a single business. But in fact, we can see a complete product matrix and a set of industrial chain derivative business behind the large volume self-run steel business. This seems to be the moat system that many B2B enterprises choose together today.In order to serve customers on the steel industry chain, find the stencil actual background to the market to provide the online mall, steel plant, steel assistant, logistics, industry data processing and financial ious matrix, a series of products such as steel mills, traders and end users not only service trade demand, also for the whole transaction chain on the cash flow, logistics and information flow of each link.Once multiple requirements of users are satisfied through such product matrix, competitive advantages will become stronger and stronger with the passing of time, and more participants will join the ecosystem. In addition to product matrix, looking for steel net also through fat cat financial and fat cat venture capital, to extend to other industries. According to the prospectus, fat cat finance has provided supply chain financial products to a number of industries and achieved zero overdue. Moreover, zhaogang net has invested in more than 20 industrial Internet projects because of fat cat venture capital, and its two projects of zhaoyou net and sijia net have contributed 145 million yuan to the performance of zhaogang net in 2017.B2B field because of relatively comprehensive, for the person who can understand the whole scene, long period, people with experience of the field is rare, so the mature industry Internet companies is very suitable for extending such industrial investment, investment can even develop new main business, the industry of Internet company and one of the important advantages.This is what investors who focus on B2B circuits value. B2B enterprises are the core enterprises of the industrial chain that master the transaction flow, logistics and capital flow. High operational leverage is the embodiment of their core capabilities and the source of their break-even.In fact, it is to build a bigger connected pipes, at the beginning of the development to the market incentives, B2B electronic business to achieve the deal flow, logistics and cash flow of third-rate unity, make each key node information to show real, coherent, the first level of the link into a secondary to B, B to get out of a cash flow, profit model also platform deposits money into data, information, logistics, finance and other supply chain services, this may be in a wise man care more about the nature of the business.And constantly rich visualization of user load and service operation, if in the subsequent growth gradually into a variety of customized business with cash flow, achieve the real third-level endowed value, can naturally create a greater return on capital.The pursuit of perfect idea, is the biggest enemy of a good plan, and entrepreneurship seems to be difficult to find a perfect idea, B2B e-commerce platform from profit to listing, just walked the first step of a long march. From data and matchmaking to supply chain finance and investment, it seems that we are crossing the river by feeling the stones. In today's environment of scene, personality and high-speed intergenerational iteration, having data and reaching the minimum demand of customers infinitely may be the key to stand out.