In the first batch of Chinese Internet companies, & ldquo; 19 years & rdquo; NetEase regarded as special low-key presence.
From a business point of view layout, which radiate from the portal, mail and other tools to Wealth business also involves Internet banking, music, education, electricity providers, and even custom photo; from the latest quarterly earnings report to see whether or net revenue growth net profit growth rate, higher than Netease, Tencent, Baidu and other giants; the same as the old portal, which more than 200 billion dollars in market value of Sina (about 32 billion US dollars) and more than four times Sohu ($ 1.4 billion) combined.
But Netease CEO Ding Lei enough low-key. For example, so many years he almost did not talk about in public, Netease's strategy, but in recent years, in the field of electronic business NetEase big move also makes the outside world more curious Ding.
June 30, in the internal communication CBN reporter an exclusive access to NetEase, the NetEase Ding rare talked about the current position in the pattern of the domestic Internet, Netease 19 years during the most impressive time trial and error, and Netease ODM field of electronic business model to explore the latest & ldquo; & rdquo ;. Netease Picks
He said that both the NSS and present BAT past, do business real mission and purpose is not to be & ldquo; tagged & rdquo ;, but with a & ldquo; There attitude & rdquo; spirit, constantly exploring and innovation to meet consumer needs.
& Ldquo; We also hope to see some unusual products. Not just pork. & Rdquo; Ding said.
Why bet electricity supplier?
NetEase founded 19 years from Netease news client, Netease mail, Netease open class and a series of & ldquo; There attitude & rdquo; business to business industry top-ranking game, Ding will now focus on his hand layout, hand surgeon electricity supplier new business & mdash; & mdash; Netease Netease koalas and carefully selected.
Over the past year, Netease Koala take a unique & ldquo; import and cross-border B2C & rdquo; mode, to avoid the Lynx, Jingdong edge, formed its own unique selling point. This year, Ding founded the country's first ODM (Original Design Manufacturer) mode electricity supplier brand NetEase carefully selected. NetEase announced first quarter 2016 earnings report, showing eye-catching business electricity supplier, mail, electricity providers and other net operating income increased by 257.8%.
Despite the competitive electricity supplier industry already intense, but Ding still think they have a lot of space. & Ldquo; In the field of electronic business, and I just students, just a year. However, I think that the electricity supplier industry has a lot of problems, such as counterfeiting problem, Diandaqike problem, these are carefully selected to go to the effort to change. & Rdquo;
This time, Ding want to reshape the new standard electricity supplier industry. & Ldquo; now, NetEase carefully selected electricity supplier to redefine service standards, countries require electricity suppliers to provide 7 days return, NetEase carefully selected 30-day worry-free return. Many hope to see our colleagues electricity supplier practices have kept us closer to this standard. & Rdquo;
In fact, the creation of carefully selected, but also with Ding preferences related. Financial writer Wu Xiaobo said in his contact with Chinese billionaires inside, only the most Ding Lei, Netease and happy. In Internet circles, Ding has always been considered the most know to enjoy life. Ding said, NetEase carefully selected their own mind, is because they often travel around the world and found a lot of good quality goods are made in China, but the strange thing is that they are difficult to find in China mall.
& Ldquo; if Chinese factories can build such a high level, high-quality goods, then why not put it in the Chinese market to sell & rdquo;? Ding said. Carefully selected business idea emerged: the excellent Chinese manufacturing industry to find out, to remove a premium brand, it is possible for the consumer to upgrade China's 1.3 billion population services.
This thing from last year to start planning, factory-stop back and forth communication, including preparation of raw materials, until this year to bear fruit.
From the selection of raw materials to design to finished product testing, NetEase and manufacturers formed a tight interaction. Carefully selected team at the factory gate to about 12 months of regular, production inspection finished, even rework.
Ding cited an example, in order to make a pillow filled with buckwheat hulls were mountains, NetEase carefully selected team in Yunnan, Sichuan, Guizhou and other places to find suppliers. The main reason for caution is worried local heavy metal and pesticide pollution on buckwheat hull itself may be affected. After until you find a tea factory in the production of bitter buckwheat tea Sichuan Liangshan, Netease put a package producing buckwheat hull down, and then processed, carefully selected to become today pillow stuffing.
During the ODM, Netease has not encountered a number of reliable suppliers. For example in the materials used in the process, shoddy. & Ldquo; later we found out, we put the goods to go back, even if cheaper to us, we do not. & Rdquo; Ding said. It is understood that NetEase carefully selected return was 0.3%.
In addition to high standards of product selection, Ding thought and competitors, NetEase advantage of one capital, and factory orders in time, they advance to the 70% down payment, let the factory at ease; the second is a single click on the next three years alone, let the factory long-term development and Netease together to ensure that production capacity, the establishment of mutual trust; for consumers, because removing the middle of a premium brand, can buy a special high cost of goods.
Now NetEase carefully selected not only Chinese-made goods, Ding said, NetEase has now begun to manufacture something manufactured in India and Japan to China. For example, since China limitations in terms of raw cotton, cotton and Indian cotton is better quality Turkish cotton good, so NetEase to find plants in India and Turkey, with the help of carefully selected produce towels, and then transported to China by sea, then Sales.
For the industry had disputed for the NetEase carefully selected design plagiarism, Ding said, there is no company to sue Netease Picks copied its design.
& Ldquo; the plant itself did several years of design, some of the brands you see the outside, the factory also designed, sixteen models he chose two models, then back to do a. & Rdquo; Ding said, & ldquo; you are not too superstitious these, they are talking about the brand story. & Rdquo;
The most profound of trial and error: missing networking opportunities
Early Chinese Internet had a & ldquo; NSS & rdquo; to say that NetEase (Netease), Sohu (Sohu), Sina (Sina), then later became & ldquo; BAT & rdquo; three big mountains. For the first batch of Chinese Internet entrepreneur William Ding, now NetEase behind it?
Ding this view is: do business real mission and purpose is not to say that being tagged, such as NSS, BAT. Do a business, it is to really bring value to consumers.
& Ldquo; market value higher, but your information is untrue, you think this is a do business mission it & rdquo;? Ding asked, & ldquo; business I think, regardless of size, can not say that because you are a company of people, high profits, you have the right to speak, my pig, there is no right to speak, I do not think so. If you think so, then you will eat for a lifetime of cooking oil and antibiotics. & Rdquo; Ding said.
He believes that a company's mission and values really are able to explore and innovate, to provide consumer goods capable of continuous iteration and update, which is the most important. In addition to continue to reduce costs, and provide new functionality or so that the original function more durable, easier to use.
& Ldquo; today, in my opinion, even if the hammer did not do the phone function, but I think it's hammer UI is all Chinese Android phone UI to do the best one. Including millet phone, his contribution to China cheap, cost-effective intelligent machine can not be ignored. Of course, because of credulity, but also to promote the innovation of other products. I think in the process of enterprise inside a mission, the core is through exploration and innovation, for consumers to create new products, as well as a new version of this product is iterative and constantly updated. & Rdquo; Ding said.
However, looking back at 19 years of development, Netease, it also had some not successful attempt.
Ding admitted, that he was most impressed by trial and error is the mobile social networking.
& Ldquo; in similar terms as this micro-channel chat software, we enter to late, a little mistake on the strategy. & Rdquo; Ding said.
August 2013, Netease and China Telecom joint venture and publish mobile instant messaging social product & ldquo; & rdquo ;. easecredit Internally, Ding has put forward & ldquo; the next three years -5 years no matter the cost, excluding investment must do easecredit & rdquo ;.
Easecredit once and WeChat & ldquo; & rdquo ;, close fight but eventually need to face & ldquo; skinny & rdquo; reality.
But soon, Ding changed the subject, shared another thing, worldwide, a total of ten thousand listed companies, only 100 companies, which is only 1% of enterprises in the past 20 years inside, the annual return on capital is more than 20%.
& Ldquo; There are two in China, Maotai count, Netease is another. & Rdquo; Ding said.
Entrepreneurs must have the spirit of artisans
In public, rarely talk about talk Netease Ding future development strategy.
When asked about the upcoming 20-year-old Netease have any new development goals, Ding asked: & ldquo; What do you think of the company for 20 years, every year to change the target it & rdquo;?
& Ldquo; I think it is one we must focus on the right direction. In the game, in the field of electronic business, we want to focus on. & Rdquo; Ding believes that companies which have a craftsman's spirit, then the owner must first artisan spirit. And the spirit of craftsmen have a word called & ldquo; focus on one thing & rdquo ;.
& Ldquo; I do not agree that the boss just pipe the overall situation, I see good entrepreneurs, are aware of the details. & Rdquo;
But for new things, Ding stressed conditions, under chance circumstances, is going to explore, & ldquo; For businesses not explore not. & Rdquo;
Ding said the pig this matter, NetEase has spent seven years, and today they can responsibly say, Netease raised a whole China may even be the most delicious of the world, it is best to eat pigs. & Ldquo; I believe in the near future, we will be open to the whole society is how our whole system design, is how we monitor, you can see how it is. & Rdquo;
Of course, he also said he was concerned about the considerable number of new areas, & ldquo; we also hope to see some unusual products. Not just pork. & Rdquo;
For example, in Ding's reading list, one is talking about the relationship between brands and consumers, and the other about the future, such as the development of artificial intelligence, what are the implications for the future of human life.
Spirit; & ldquo; an enterprise, I think there should be a & lsquo; have attitudes & rsquo. & Rdquo; Ding said, & ldquo; by constantly exploring and innovation to meet consumer needs. I think this is a business of a basic idea. & Rdquo;
Ding said, NetEase has done a lot in the past virtual product such as news, e-mail, games, and today has the ability to establish Netease Picks This new type of electric provider, the transformation of traditional manufacturing, Netease sense of achievement comes from customer satisfaction.
& Ldquo; If I sell goods, the following comments everyone curse, curse black heart cotton, liar, sale of counterfeits, I sleep sleep well, why should I do this thing, let others behind me every day poke a finger? I'm not a matter of survival today, or do not do, we must do a good job, keep grinding, to achieve the ultimate, this is an idea we do business. & Rdquo; Ding said.
He cited an example, do NetEase Youdao dictionary has been done for decades, but had to do it dictionary, Netease is not the first. NetEase Youdao dictionary has been able to come from behind, not because of money, but Netease kept in grinding, concentration and perseverance.
& Ldquo; I kept a version of a version of the iterative update, many people today no longer have to hold a large dictionary in hand. The world is certainly not stop innovation, if not innovative, even made a hundred years enterprises will be Jisi. & Rdquo;