Chen Ou: The most effective communication in the world is word of mouth

On November 29, the "2014 Sohu Finance Transformative Summit: Finding China" was held in Beijing. As moderator, I chaired one of the forums, New Economy: Where's the Next? The four guests were: Chen Ou, founder and CEO of Jumei Premium, Cheng Wei, founder and CEO of Didi Taxi, Wang Xiaochuan, CEO of Sogou, and Li Feng, partner of IDG Capital. From left to right, the pictures are: Cheng Wei, Li Zhigang, Wang Xiaochuan, Chen Ou.

Chen Ou, founder and CEO of Jumei Premium, wrote in "Economy: Where is the Next Outlet?" I have dissent" said on the sub-forum, the times create heroes, no matter how bullish people are also people who grasp the times, grasp the outlet, and grasp the platform, how to judge whether it is the outlet or the trap? Where capital overheats, it is not necessarily an outlet, because it means very, very fierce competition, it means talent competition, it means burning money, and in fact, the judgment is whether this direction is really sure enough.

O2O a lot of directions and problems you can not imagine can be solved, how to achieve a 1 billion dollar company, is to solve a problem of ten billion dollars, there are many problems in the industry that have not been solved, the world is not perfect, through the direction of the Internet to let many problems have better service, space is particularly much. It's likely that there's a particularly awesome company in an area you can't think of, and that company you didn't know well before.

The following is the transcript of Chen Ou's speech:

Moderator Li Zhigang: What we are discussing today is that it is an era of new business change, and I would like to ask, is this the best era for entrepreneurs?

Chen Ou: To be honest, it is definitely the best era for entrepreneurs to raise funds, but not the best era for entrepreneurship? Not necessarily, because sometimes when the economy is not particularly good, entrepreneurs can give more time to think about the direction, to run into the team, and will not be chased forward by capital, now if an entrepreneur knows very well what his direction is, there is a very good run-in team, plus capital help, it is definitely the best era.

Host Li Zhigang: Now because there are many entrepreneurial opportunities, but it may also be an outlet, but another possibility, it may also be a big trap, I want to ask Chen Ou to talk about how you judge whether it is an outlet or a trap?

Chen Ou: In fact, I especially believe in a sentence, that is, the times create heroes, and even the best people are also people who grasp the times, grasp the outlet, and grasp the platform, how to judge whether it is the outlet or the trap? Where capital overheats, it is not necessarily an outlet, because it means very, very fierce competition, it means talent competition, it means burning money, and in fact, the judgment is whether this direction is really sure enough. In fact, in the end, you will find that such as the original group purchase, vertical e-commerce, sea amoy e-commerce, are all capital injection, and finally hit the end may not grow the most is the successful people, I believe that all the outlet or trap is good all rely on the team of this group of people, I am particularly trustworthy, a very good team in the help of the quick to do things. When we first started to do Jumei Premium, at the beginning we sold cosmetics that all VCs despised, and all said that the amount of movie tickets sold was great, and at that time we seized the opportunity to really do a good job of differentiation and service, so I think seizing the outlet or changing the outlet, in fact, in the end, it is all people, and things are man-made.

Moderator Li Zhigang: Ask Chen Ou, in the 4 years and 5 years of entrepreneurship, have you encountered any traps?

Chen Ou: I think the biggest trap lies in the money, before the company was particularly poor, we grasped it particularly well, all kinds of details, all kinds of key points, the whole company is very focused, after half a year of listing, we have raised a lot of money, looking back we basically made all the mistakes we made before we beat the opponent, the company will have the expansion of business lines, after the expansion found that many people with high salaries from nine to six are doing useless projects, and found that all of us are assessed by KPI indicators, The information obtained is not necessarily true, and all people may ignore the user. The biggest trap I get is that after a bunch of money comes, let the team, let the CEO, let the whole company get lost, and the people who can really grasp this money, like Cheng Wei said, grasp the subsidies, capitalization, and better grasp this era.

Host Li Zhigang: After you go public now, you have more money, is it more trapped?

Chen Ou: No, we are reflecting, comprehensively grasping the user, and want the user to want what, this idea is what to sell, as long as the user pays the bill, and then the idea is that we should recommend the best direction to the user, our most optimistic new direction recently is overseas purchase, for example, we went to South Korea to find that Korean cosmetics into China will become a trend, because there was no cross-border e-commerce in the past, many cosmetics because of the policy can not, this piece who can become the leader of fashion is likely to seize the next outlet, So for us, it is now time to focus on what users want and fully implement, rather than the crazy expansion of business lines.

Moderator Li Zhigang: How to be a good entrepreneur, in the user, the market, including capital to seek a balance?

Chen Ou: We have been thinking about this problem, especially after the quarterly report comes out, we will have such an idea, many companies' previous KPIs are sales, are profits, are GMV, but there is an indicator called NPS is the user recommendation value, how to pay attention to users, pay attention to the user's experience, pay attention to the long-term retention of users, and the final value is the long-term return on capital, and it is the real basis of all the company's operations. And all the companies that are truly completely capital-oriented, completely big, burning money, doing scale, and doing digital are often without core competitiveness. At the beginning, Cheng Wei and I talked about how to improve value, and it is often companies that provide more value to customers to survive, because the most effective communication in the world is not capital financing, nor a large number of advertisements, but the real reputation of users.

Moderator Li Zhigang: Now our theme is to talk about the trend of the problem, we have now seen the future trend, such as the Transformation of the Internet to traditional industries, cloud computing, big data, smart home, etc., I would like to ask you, Chen Ou, how do you think about the future of what entrepreneurial opportunities and trends exist?

Chen Ou: On the one hand, the O2O of food, clothing, housing and transportation, the opportunity is particularly large, the outbreak of smart phones is also a matter of the past two years, and now the entire infrastructure has been very perfect, and if they solve it well, this piece of company can definitely appear tens of billions of dollars, and the space is particularly large. On the other hand, I am particularly optimistic about the field of mobile phones, because the field of mobile phones is now getting faster and faster, but also bigger and bigger screens, but the battery will become a core problem, like the iPhone to solve the problem of the Internet, mobile phone batteries who can solve may also be an outlet, which is currently I am more optimistic about the two new areas.

Moderator Li Zhigang: Just chen Ou or Cheng Wei you two said, food, clothing, housing and transportation is also a very good outlet, I don't know if you can talk about it?

Chen Ou: My meaning is very simple, food, clothing, housing and travel, after the establishment of Taobao, clothing is a big piece, there are clothes, lines, Didi taxi they solve things, eat, like the Meituan, comment on the food they do, live, there are many opportunities in related fields. What does that mean? We joke that in this industry O2O a lot of directions and problems you can not imagine can be solved, how to achieve a 1 billion dollar company, is to solve a problem of ten billion dollars, there are many problems in the industry that have not been solved, the world is not perfect, through the direction of the Internet to let many problems have better service, space is particularly much. It's likely that there's a particularly awesome company in an area you can't think of, and that company you didn't know well before.

Host Li Zhigang: Jumei Premium is a good cosmetics company, what will you do next in addition to cosmetics?

Chen Ou: Jumei Premium products to do physical e-commerce is already a long way to go, in the cosmetics field, the biggest outlet is cross-border e-commerce, because before the control of all aspects of a lot of foreign excellent cosmetics is not able to enter, because every year there is a year of filing time, now cross-border e-commerce Sea Tao means that South Korea, Europe and the United States some excellent products through cross-border e-commerce to consumer hands, our current promotion of the project is the rapid duty-free shop, the best Cosmetics in South Korea into China, At the same time, the problem of speed logistics is solved through the problem of bonded warehouse, and at the same time, the tariff Jumei excellent product is borne, which is also very formal, and the value created by this piece may be a new outlet.