Their CEO xu reflection: I entrepreneurial process which mistakes

liu ladies of sina science and technology

on January 23, their CEO xu in microblog “hawk” quick bag, caused a big sensation in the industry. This was founded in 2010 to do the online 711 “start-up, with unique” one hour delivery “service became the focus in the industry.

“the last two years to create fast bag is if, I can’t choose the self-built distribution”, “if we get another 5 million, fast bag may be able to get through it”, its founder xu recently told sina science and technology.

“(but) for entrepreneurs, all the” if “is meaningless assumptions.” When it comes to fast bag the entrepreneurial experience, Mr Xu said rather sadly.

“1 hour service” model is wrong?

“mode and connected before time. 2010 I do 1 hour to send a little too advanced, so when the martyrs.” Mr Xu said.

on June 9, 2010, established fast bag, slogan is to build “711” online, but the main selling books in the first year. Operation idea is the freight is free, self-built logistics and warehousing. In 2011, his attempt on the country’s burgeoning microblogging marketing, a cannon dozen red, save a lot of companies start marketing costs.

“I have never doubted your own patterns.” Xu zhi, this service is valuable for the customer, is also a pickup ponints, but implemented era has its limitations.

just recently a year or two electricity distribution way, short time distribution of demand is more and more strong, jingdong mall, Su Ningyi purchase, amazon are fast delivery service. But 1 small delivery mode in 2010 to implement too difficult.

is an obvious big background: smartphone is not widespread in China in 2010, his whole mode of thinking and operating are based on the PC, can’t combine the geographical location and phone to solve the problem of human efficient configuration.

xu referred to in the memories, he tried to use SMS delivery, but the execution is poor so choose to give up. At first, he will be in Beijing is divided into more than 30 blocks, each distribution member responsible for a section, goods in distribution member home. But as a result of this model too demanding on the stability of staff, to a centralized storage, this increases the storage cost.

books under appropriate?

in fact, 1 hour delivery service also raises a lot of problems, such as whether the use of this service in book distribution, distribution team how to build, charging mode and logistics how to form a complete set, etc.

however, early in their choice of book distribution, xu has its own reason.

before founded fast bag, xu has been in the book industry more than 10 years, and launched dragon media online shop. The characteristics of the book, he argues, is a very standardized, and is priced goods. Consumers can understand early book would look like, and can directly see the discounts.

in addition, the book sales is credit, and cycle is long, this is not enough for the early capital fast bag is very important. And China use the first person to use e-commerce crowd are customers group.

in the jobs listed within 3 days, fast bag sold more than twenty thousand copies. This is a happy result. But fast bag has been questioned and distribution of books service needs of users is too narrow, and whether customers really need an hour service.

for his fatal problem.

as xu said, in fact there are not that many super best-selling to maintain this high sales. And more importantly, people buy books on delivery time is not that sensitive. This part is not an hour service the strong demand of the crowd.

overwhelmed the self-built distribution

dangdang CEO Mr Li has publicly put forward a, said China’s book market scale is only 30 billion yuan, and the operation is too difficult for the characteristics of this industry is 800000 varieties, low price and low profit margins. But in such a low margin of book industry, Mr Xu has made a let he now regret the decision, self-built distribution team.

for self-built distribution team, xu has obvious regret. It is understood that the labor cost of fast bag is accounted for 70% 80% of the whole operating costs. For the startup some overweight, especially startup money is not enough.

xu was admitted to admit this point. Over the years, he says, mainly to compensate on the human, in which a fast bag every year to three million, a total of five years lost fifteen million.

xu mentioned in an interview with sina science and technology in 2012, its the faster delivery speed, the lower the cost, according to the test delivery staff distribution 12-14 single every day is no problem. Not too bag the pace of development has not let delivery staff work saturated state, but the fixed wages for logistics staff but also cannot little.

xu zhi, fast bag don’t have enough money to change distribution mode, each year on the human cost cost huge money let his strategy on some “cast doesn’t open hands”.

xu zhi said he highly appreciates e generation driving mode of cooperation, that is, the driver is part-time, e generation by a single driver, drive to push order according to every single will charge is charged to the driver.

charging mode and capital chain

in 2010, the domestic electric business competition is brutal, jingdong, dangdang, such as the freight charges are not, fast bag can only keep up with them. Early in their development, the unit price is not high, if the freight charges will be lost a large number of price-sensitive customers. But in the process of the development of the subsequent, although his guest unit price, but still have no choice to charge.

without freight revenue and gross margin and guest orders at is one of the reasons lead to fast bag money not enough. Their startup capital is 3 million yuan.

start book distribution, for xu, on the one hand, is familiar with choice, on the one hand, and some were forced to, because of the limitation of money lead to fast bag cannot choose other more appropriate categories to sell.

in addition to fast delivery, quick bag also tried 1 hour to send medicine. Talked about a lot of reasons for the failure of Mr Xu himself, in addition to the distribution patterns, 1 hour concept and some advanced at the time, he also argues that his train of thought transformation in the era of mobile Internet is not fast enough.

in his business a few years, capital operation is not always very well. In April 2011, xu said fast bag with a certain investment institutions signed a $3 million investment letter of intent, but the investment institutions to break in July this year. Due to the fast bag has refused to other investors, they in the subsequent time failed to quickly get other investments.

the lack of money for his failed to rise in the trend of mobile Internet, mobile in time domain.

pattern of similar emerging company

for fast bag, tried a lot of models has became a hot area now. Recently, the rise of a lot of companies are more or less can see his shadow, such as love fresh bee, 001, community safe community, the United States Instacart, etc.

just got $210 million in financing Instacart main rapid distribution pattern, and their patterns of some similar. The difference is that the company freight charges from the start, and distribution personnel’s crowdsourcing ways of cooperation.

because does not have its own products, Instacart don’t need to build a warehouse, and its main content is considered by xu gross profit is low to buy groceries. Instacart main revenue comes from freight rather than goods.

love fresh bee differs in bringing in the large number of community convenience store as PeiSongDian, ordinary cargo demand for convenience store their delivery earning distribution fees, love fresh bee runs his own relatively have the characteristics of the food.

now, the similar company became the darling of the risk investment, but because there is no way of quick bag follow-up funds input, and desperate, forced prostitution. Xu was sigh with emotion. , geographical and human conditions, he says, “is particularly important for entrepreneurs.

look back into business for themselves in recent 5 years of experience, Mr Xu give entrepreneurial enterprises put forward some advice – must have a particularly sharp, clear positioning, to poke to the user pain points. For their own future, he said to see the decision of the buyer in the future.

“I would not venture again, because I for the Internet industry, is too old”, xu zhi, he tends to be a future angel investors, investment in the dreams of others.

his entrepreneurial experience

on January 23, their CEO xu in microblog “hawk” quick bag, caused a big sensation in the industry. This was founded in 2010 to do the online 711 “start-up, with unique” one hour delivery “service became the focus in the industry.

fast bag one hour delivery service is not the first, before and after 2010 have many similar companies, such as the 2000 “hour” E countries, but the company had already disappeared in the wave of Internet development. The ups and downs and fast bag has become a microcosm of the startup of that age.

fast bag development timeline:

on June 9, 2010, established fast bag, slogan is to build 711 online, but in the first year of the main selling books. Operation idea is the freight is free, self-built logistics and warehousing.

in 2011, his attempt on the country’s burgeoning microblogging marketing, save a lot of marketing costs. This year his team began to invest to build technology.

in March 2012, fast bag to 9 million RMB financing, begin to implement a convenience store ideas extend category. Due to the convenience store goods’ unit price and gross profit margin is low, fast bag began to have imported food, guest unit price and margins have been improved.

this year, according to their number of employees 80 people, delivery staff 60 people. In the whole cost of human accounted for 70% to 70%, the warehousing costs by about 10%.

in 2013, his performance reached 10 million yuan, but failed to find an effective way to rapidly improve customer orders, this is Mr Xu think is the most fatal problem. Fast bag this year launched the independent research and development of PC and mobile terminal system.

in September 2014, their capital chain rupture, announced “an hour delivery service to stop,” later in September, to slash payoffs distribution teams are all cut off.

in January 2015, xu decided to sell fast bag.