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Mr.Tang Tao’view about E-commerce

Mr.Tang Tao ,the venture star and the partner of Eastern Bell VC,

shared a lecture for the students of the 2nd term Israeli wisdom journey

 

Editor's note: 

  On December 25 in 2015, the  reunion  meeting for the 2nd term Israeli wisdom journey  was held at the Antarctic  office building  of  Shenzhen software industry base , which was organized by Shenzhen Newthink Transboundary Culture Communication CO.,LTD  and was jointly sponsored by the Eastern Bell VC  and Tencent Antarctic Circle. This meeting invited Mr。Tang Tao,the venture star and the partner of the Eastern Bell VC(the participant of the 6th term of Israeli wisdom journey)。He shared his many years ’investment experiences and his view about new E-commerce ecology and cross-border E-commerce trend in 2015.

  The Eastern Bell VC was founded in 2009,which is a “boutique fund”company with global vision and local experiences.The company focused on the fields ofLogistics & supply chain and E-commerce of O2O .It has invested many famous enterprises such as Deppon logistics company,Overall card company,M&G stationary company,Aixiefeng IT company. The Eastern Bell VC managed two founds,one of them is Procter & Gamble Alumni Association venture capital which mainly invested the innovation consumption. The Jingdong online mall and Tencent company is the strategic LP(Limited Partners) of the Eastern Bell VC.

 

Tang Tao investment view:

In this activity, some students  put forward a pain point problem“While the enterprise  achieved a certain scale, they began to seek investment opportunities. After accepted the advices from their friends,they voted a lot of projects, but the vast majority of them are failed. So when facing all kinds of exquisite packaging project, how to have a pair of wisdom eye? Which projects should be prudent to invest?"

Based on many years experiences in the investment field,Mr.Tang Tao,the venture partner of the Eastern Bell VC, shared his view about this problem:

“3 key points”for investment

 

1.Invest your familiar field,the perception of the industry risk will affect investor ' judgement ,if you want to enter a strange industry,you'd better seek a expert to do some research about the project;

2.Generally do not invest in the projects of your friends or relatives,because you have trust between each other,and this trust often affect the investor' in-depth judgment;

3.Do not project your ability and executive power into the entrepreneurs. The investors and entrepreneurs are different roles,so you should judge whether that entrepreneur have the ability and the executive power to complete the project. We must admit: entrepreneurs can not be changed.


 

4.Be cautious to invest four kinds of entrepreneurial team

1.A team of two core entrepreneurs, such as husband and wife;

2.Generally do not invest the joint venture which do not have a core decision team,beccause when this team meet the trouble ,they do not have a powerful person to make a hard decision,so this leads to low efficiency.And this team is often scattered in the end.

3.The entrepreneurs have their own ongoing business, and also discover a new project, even if the entrepreneur promised to put his eighty percent of energy in the new project , you do not easily invest that one. Because many various situations are likely to occur in his own business , this will affect his time and energy  for the new project. Moreover,  the entrepreneur may love to invest many projects at the same time,then he has the personality to take a detour when they encounter the difficulties , so this character often lead the investment project to the destiny of being shelved .

 4. The grass root-entrepreneur is very difficult, he may lack of  understanding the industry, the leadership of the team . A better education background will help the entrepreneur to have a good view and good social relationship .

 

Be cautious to invest  these three kinds of business models:

Investment experience:

1   1.Investors can chat with entrepreneurs to judge the other party’s ability level,if the investor only need to ask questions and take notes,the entrepreneur can talk about something or wisdom that even the investor unknown,that means that entrepreneur’s ability is relatively strong,it worth to invest. 

2.If you are not sure whether it is valuable,do not invest。

3.Do not blindly follow the investment trend,independent judgement  and rational analysis are needed .Distribute your limited money to more good quality projects,improve your success probability.

New E-commerce ecology in 2015

Subsequently, Mr. Tang Tao analysed E-commerce business environment: In 2015, China's retail sales rose by 10.5%, but the offline sales fell by 1.1%, the retail sales of the listed companies fell by 60%. Wumart and Jingkelong are two important companies which served for Supermarket business in Beijing  , Wumart’s profit fell by 20%, Jingkelong’s profit fell by 40%, but the overall Chinese E-commerce turnover rosed by 36.2%, what does it mean? 10% growth profit basically flowed into the E-commerce field.

In 2005, when E-commerce has just come up, Taobao's market share occupied for about 70% of the E-commerce, but has dropped to 54%。Last year, the growth rate has dropped significantly, which is lower than the overall growth rate of E-commerce. As a forecast said,in 2018, its market share may be reduced to below 40%. We define it as a traditional E-commerce. These new big bosses are starting to get traditional.

Mr.Tang Tao reveal the E-commerce mystery: 4.0 Era is quietly strucking! Taobao is 1.0 Era of E-commerce ,which solve the problem of shopping. You can buy things on the internet, and everything you can be bought, it is the way to solve the problem of shopping, also the price. 2.0  Era of E-commerce is Jingdong, which resolve the problem to buy good things, buy real things, they also can send you a benefit,and send the goods a little faster.The consumers know what they want to buy,and  will go to search for them.When it is 3.0 Era of E-commerce  , such as Beauty saying, mogujie.com,   these platforms will recommend something to you, help you to  make consumer decisions, to guide and educate your consumption. From the earlier 1。0 platform, 2 .0 of theverticality, 3。0 of the mobile, what comes to 4。0 Era? In fact, that is the realization of the "four modernizations", location, sociality, individuation and community. At the 4。0 Era, business will be based on big data, the consumer’s  habits, location, the surrounding population and so on, combined with the algorithm, it can provide individual recommendations for the individual needs.

So, the new business ecosystem is forming, the evolution of new business ecosystem   is based on the evolution of consumer’s demand, these changes in the new business ecosystem will drive the entire supply chain changed, this is a repeated process.

 

Then the students enter the 3rd stage, namely Mr. Wang weijian ,CEO of Shenzhen Tianxingyun supply chain , introduces the concept of cross-border E-commerce, and explains the development of cross-border E-commerce ,and how to solve the problem of long cycle.


 

The following are Mr.Tang Taos comments  about   cross-border E-electricity   :

1,From the view of the channel, the market demand of E-commerce are rising , particularly, such as maternal and child products are needed in China. Traditional E-commerce logistics systems are unable to meet the needs of cross-border E-commerce

2.From the view of business model, Wang Wei's business model is more complex, which is a multi brand procurement from many countries, and then collect them to be distributed to the domestic Taobao, micro shops. This is the equivalent of a many- to - many model, and this complex model can built the scale barriers. In future ,it can do B2B2C;

3.2.From the view of the team, the first element of cross-border E-commerce is overseas resources, for the purchase property in China, the foreigners unable to determine the exact needs from China, in manytimes you can not get your goods when you have paid; secondly, many small and medium-sized brands without the ability to enter into China, but Chinese market need them. This requires the teams to build organizations, that is, the execution of the team.

 





 

 

 

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