If Hua Xia's e-commerce market was slightly more mature, a 100 billion RMB annual sales would not be a big problem for a leading e-commerce website in the industry. Moreover, Li Mu's Taobao was not just a C2C platform for small and medium-sized sellers, but also a hybrid B2C platform.
There were two main modes of B2C in Hua Xia. The first was Tmall, built by a third party, with enterprise-grade sellers entering the platform, and the enterprise-grade sellers dealing directly with ordinary consumers. The second was JD.com, which built its own platform, purchased from third-party companies, stored and sold the goods, and delivered the goods to ordinary consumers.
The reason why it was a hybrid was that Li Mu's B2C was neither of the above two modes.
Compared to the first mode, Li Mu did not let enterprise-grade sellers sell directly to consumers. Instead, he would store the goods, sell them, and deliver the goods himself. Compared to the second mode, Li Mu had not entered the stage of purchasing the goods himself. However, this was also his next goal. Once the logistics were on track, Taobao would immediately launch its own plan to vigorously promote the sale of daily necessities. At that time, the relevant products must be purchased independently. This way, it could obtain the largest profit margin and the greatest autonomy.
In the future, Li Mu's plan for Taobao was a C2C platform, with two types of B2C coexisting. With such a huge structure, it would basically cover the entire retail business. If it could not reach 100 billion RMB in 5 years, even Li Mu would feel ashamed.
Department Head Zhen was concerned about the future development of Taobao. The domestic economy needed to be boosted, and the retail industry needed to be stimulated. The country needed innovative enterprises like Taobao to bring new impetus. However, before giving enough policy support, they must first understand how big Taobao was.
Just like investing in a coal mine, one must first know how much coal there was, how difficult it was to mine, and how many tons of coal it was designed to produce. Only after knowing all these would the higher-ups have the confidence to provide sufficient support. Coal mines in China with a designed output of millions of tons were already considered big mines. In Mongolia, any coal mine in E City had an annual output of tens of millions of tons. An open-pit mine had an annual output of more than 20 million tons. The difference was huge.
Now, Li Mu's answer made Department Head Zhen amazed and excited.
Reaching an annual sales volume of 100 billion in five years was just Li Mu's bottom line. His optimistic estimate was that it could reach hundreds of billions. If this figure was realized, then Taobao would definitely become the top company in the domestic retail industry.
After digesting this shocking figure, Department Head Zhen asked the second question.
"Right now, there are two views on Taobao. One is that Taobao can stimulate domestic demand and promote the economy. The other is that Taobao is attacking the real economy, especially the physical retail economy. They think that Taobao is just moving offline purchases to online. But because online purchases can eliminate hardware and labor costs, it is actually a kind of harm to the economy. What do you think?"
With a faint smile, Li Mu replied in a serious tone, "Department Head Zhen, I don't deny that e-commerce will move a portion of offline purchasing behavior to online. After all, e-commerce is a revolution in purchasing behavior, and it's a more advanced and high-quality purchasing method. Its emergence will naturally have a certain impact on traditional purchasing methods. However, let me explain this problem to you from another angle."
As he spoke, Li Mu controlled the rhythm of his speech and continued, "First of all, offline consumption is rational consumption. Most consumers will only buy a product after they have a demand. But online purchases are impulsive consumption. Through a powerful marketing channel and flexible marketing method, users will have the impulse to buy a certain product online. Then, they will directly buy it online. In other words, online sales can encourage consumers to 'spend money recklessly.' Offline consumers will buy what they need and don't buy what they don't need. But online consumers will buy what they need, what they don't need, and what they don't need at all."
"This time, we sold a total of 100,000 mobile phones and little smart phones of various brands on Taobao Brand Day. Among them, a considerable number of users originally didn't plan to buy a device in the short term. To them, mobile phones and little smart phones are products that they can choose to buy. But because of Taobao's price advantage and marketing, they are finally prepared to buy a device. This is one of the impulsive online purchases."
Department Head Zhen asked curiously, "Other than that, can online purchases bring about other impulsive purchases?"
"Of course." Li Mu said, "Let's take conversion efficiency for example. When you see a TCL mobile phone on a traditional TV advertisement, even if the advertisement moves you, it's unlikely that you will immediately put down what you're doing to buy one. And once the impulse to buy cools down, your desire to buy will also greatly decrease. In the end, the effect of a TCL mobile phone advertisement is only this: When you really decide to buy a mobile phone, the advertisement you've seen before can influence your judgment to a certain extent. If you've seen a TCL advertisement before and have a deep impression of it, then when you finally buy a mobile phone, many days or even months might have passed since you saw the advertisement." “
"But what about online purchases? If I suddenly recommend a TCL mobile phone to you online, this mobile phone will also move you, and the price will be higher than the offline stores. Most importantly, you don't need to pack up and go out to look for a TCL store. You can just click on the button and buy it! Even if it's midnight, you can just click on the link and go to the purchase page. You can click on the button and place the order to pay. Before your impulse to buy cools down, you'll have already completed the purchase. After that, your impulse to buy will turn into a strong psychological anticipation, and you'll look forward to the phone being delivered to your door as soon as possible. When the phone is delivered to your door, your psychological anticipation will immediately turn into the enthusiasm and joy of using the new mobile phone. Think about it, from the impulse to the psychological anticipation to the enthusiasm to use the new mobile phone, do you think I'll give you the chance to cool down? "
After Department Head Zhen heard this, his eyes lit up.
He had never thought that e-commerce would have such a powerful psychological effect. This thing was too new, and he was still at the stage of understanding it. He had never thought about this in depth. However, after listening to Li Mu's words, he felt that his "impulse spending" theory was very reasonable.
Immediately after, Department Head Zhen praised him generously, "Little Li, you're still young, but you're really a business expert!"
Li Mu smiled modestly. "Department Head Zhen, you're flattering me."
Department Head Zhen waved his hand, sighed softly, and said, "The international and domestic economy needs to be transformed. Private enterprises and the retail industry also need to be transformed. If Taobao can really bring in a large amount of" impulse spending "and increase the volume of retail consumption in the entire domestic society, then physical sales will suffer a certain impact. I think this is acceptable. We can't stop moving forward just to protect the traditional economic model. On one hand, we need to promote the development of new industries and new business models. On the other hand, we need to use the market to force those working in the traditional economic model to take the initiative to change and transform. Only then can we reduce the conflict between the online and offline businesses and even achieve the goal of complementing each other."
Li Mu was excited. Department Head Zhen's words were equivalent to affirming Taobao's business model. In other words, the voices that opposed Taobao had already been thrown to the back of his mind. This was too important for Taobao. Li Mu had been a little worried before that he had been too aggressive in e-commerce. Would it be difficult for the leaders to accept it? After all, in his previous life, whether it was Taobao or Jingdong, everyone was constantly exploring and developing. The whole process was gradual, and in terms of policies, it also played a very good role in delaying and numbing the people. It was much gentler than him.
However, fortunately, the leaders did not resist the rapid development of e-commerce. Instead, in this special period, such a strong medicine appeared, giving them even more hope for e-commerce. Only when the leaders did not question or worry about it, could Taobao continue to develop rapidly.
Immediately, Department Head Zhen said, "Little Li, although Taobao has only just started, in my opinion, it is definitely the leader of e-commerce. The government's attitude is also very clear. They are willing to support new economic models and try new things. We've just finished talking about our problems, so now it's time to talk about the second topic. Tell me, what are your needs?"
Just as he finished speaking, Department Head Zhen added, "You don't have to feel restrained. As long as it's a reasonable and legal need, you can feel free to raise it. When we go back, we will definitely seriously discuss your needs and try our best to satisfy them."
Li Mu was very excited. After talking for so long, it was finally time to raise his needs. Moreover, the leader's words were very open and clear, as though he was letting him eat to his heart's content. However, in his heart, Li Mu also reminded himself that although the leader had said so, his table manners must not be too ugly. How could he eat so much and at the same time, eat elegantly and with dignity? This was the most important point.
Therefore, Li Mu cleared his throat and immediately raised the stakes. He said, "Department Head Zhen, the internet industry is the future of the entire tertiary industry. However, the current development of the internet in Hua Xia is obviously lagging behind the developed countries in the West. Whether it's the number of netizens, the number of computers connected to the internet, the number of companies involved in the internet industry, or the speed of the operators, there is a huge gap between us and the West …"
"Personally, I especially hope that the country can introduce some favorable policies to stimulate the overall development of the internet industry. We have such a huge population. If the country can add fuel to the fire, the internet will definitely develop at an explosive rate. If that's the case, in the next few years, we will definitely be able to accumulate enough strength to surpass the developed countries in the internet industry!"
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