Jia Penglei, President of Ebang Power: The brand is a reasonable profit from 1 to 10

【Ebang Power News】On April 21, at the "2021 Ebang Future Retail Conference - New Consumption Summit" held today, Jia Penglei, president of Ebang Power, delivered a speech entitled "New Consumption "Folding" - The Interweaving of Internet Celebrity and Changhong". He shared several questions with the entrepreneurs present, first of all, how entrepreneurs can break the 8-year curse of the industry, second, whether strategic losses apply to every startup, and finally how brands can change from internet celebrities to long-term popularity.

Jia Penglei pointed out that from O2O in 2014 to the current new consumption, in the past 8 years, the shelf life of the main business model based on the Internet is usually not more than 6 months, which seems to be enough to subvert the world at the time, and it is enough to create a trillion market, but there are only a few that can really stand the test.

At the same time, for the way to play the strategic loss of startups, Jia Penglei pointed out the most cruel truth, "from China's venture capital, began to invest in start-up companies in China, the real IPO probability is only 1%, 2020 to the present new consumer enterprises to get financing the total number of enterprises exceeded 200, of which 2 have the opportunity to achieve independent IPOs, so entrepreneurs should think about whether the strategic losses belong to themselves." ”

Finally, Jia Penglei said that the "red" essence of Internet celebrities is the red of the Red Sea, so in order not to become fertilizer and become a brand that really comes to the end, the founder should think about how to lay it out.

It is reported that the new consumption summit of the Ebang Future Retail Conference was held on April 21, 2021 at the W Hotel on the Bund in Shanghai, with the theme of "Changhong", set up seven major sections such as annual thinking, consumption reshaping, capacity innovation, annual report, new increment, Changhong Road, and industry prediction, to explore the growth path of new consumer brands, analyze how "net red brands" grow into "Changhong brands", and provide more landing reference directions and ideas for the majority of e-commerce companies engaged in retail.

Warm reminder: This article is a shorthand preliminary review, to ensure that the original intention of the guests on the spot, uncut, or omissions, please understand.

The following is the transcript of Jia Penglei's speech:

Jia Penglei: Distinguished guests, dear friends, old friends of Ebang, new friends, and students of the Horseshoe Club, good morning!

Standing here today is more exciting, this is the first conference of Ebang in 2021, the full name of this conference is called Ebang Future Retail Conference, and today is the summit of new consumption. Many old friends know that in the past 13 years since Ebang Power was founded in 2007, we have been promoting and paying attention to the development of the industry through news, through research, and through courses, and in the whole development process, Ebang Future Retail Conference is the top meeting of Ebang. In 2021, we have carried out a comprehensive upgrade of this conference, the previous conference was held at the end of the year, this year we will open a future retail conference in the four seasons of spring, summer, autumn and winter, the theme of today's conference is called "New Consumption Summit", tomorrow will also be held in this venue Ebang cross-border e-commerce conference, we are called the double cycle conference internally, today here to see new consumption, tomorrow foreign trade to see DTC, welcome everyone from today to tomorrow can spend a little time to pay attention to this conference with full enthusiasm.

I am Jia Penglei, president of Ebang Power and initiator of the Horseshoe Society. New consumption began to be very hot last year, my role today is more special, my sharing is more like I as a question officer, based on the past observation of Ebang in the entire industry, we made a proposition in a responsible manner, proposed to all the guests and friends here, I hope that guests can answer, I hope friends can think.

All the data and views come from the long-term exchanges and observations between Ebang Power and the industry, and we are more inclined to discover and observe the development of this industry through the exchange of our own touch and the exchange of industry entrepreneurs and the grasp of past industry laws.

First question, 6 months. From 2014, when several major domestic e-commerce platforms have been listed, the basic law of the industry we have observed in the past 8 years, the shelf life of the main business model based on the Internet is usually not more than 6 months, you can recall that from 2014 O2O, to today's new consumption, how many outlets have been experienced in the middle, these outlets at that time seemed to be enough to subvert the world, enough to create a trillion market, but the real test of only a few.

The question we are thinking about is that this outlet, these sexy business models, what is behind what is driving, is the supply-side structural reform, or the change in demand, is the promotion of capital, or the dream of entrepreneurs, there is no way to know, but for all entrepreneurs, for friends here today, what we have to think about is how to break the curse of the past 8 years and avoid repeating the mistakes of six months on the track of new consumption. I watched the PPT of the guest, and one of the guests would talk about a similar problem, the era of capital hot money will not last.

The second question, for the vast majority of innovators, if you ask them how they are doing, the vast majority of students will say that I am actually losing money, and I will maintain strategic losses for a long time. Back to the history of the industry, we have a problem, that is, "you also deserve", the truth is that starting from China's venture capital, in China began to invest in start-up companies, the real IPO probability is only 1%, 2020 to the present new consumer enterprises to get financing the total number of enterprises exceeded 200, of which 2 have the opportunity to achieve independent IPOs. For entrepreneurs, what we have to think about is that the problem of strategic loss belongs to us? In the past, so many big guys have done so many strategic losses, who has really achieved profitability or IPO?

The third question, Internet celebrities, today mentioned the Internet celebrity brand, many entrepreneurs said not to call me Internet celebrity, I feel that the Internet celebrity is scolding me, that is, good looks, general quality, red very fast, the decline is also very fast, debut is the peak, the future does not know where, this is the industry everyone's subconscious of Internet celebrities, think that Internet celebrities can not go long.

When we look at this problem, we must think about what its essence is, the red essence of Internet celebrities is the "red" of the Red Sea, how red is this industry? A few days ago Tmall held a meeting, 2020 7600 brands in Tmall to open a store, these 7600 refers to FMCG brands, we know that the new consumption of Chinese and American cosmetics and food these two FMCG categories to get the largest number of enterprises, capacity, brand content, 2020 7600 brands of 3000 are beauty brands, in the Tmall plan, 2021 will introduce 2000 new beauty brands, in a beauty track, in the main battlefield of Tmall, 5000 new beauty brands, red enough? The question we think about is, how do we not turn into fertilizer, into a brand that really goes more and more finally, how to do it?

Long red, the theme of today's conference is called long red, I hope we can continue to be red, but the key question is, how to red?

The question we think about is why so many new brands can be produced today, why so many entrepreneurs get money so quickly, quickly get a certain volume, and appear on the list of major media, when we look at the ranking list, for example, today Ebang will release a new consumer TOP100, 80 of these 100 may not be so familiar to us, but in the new category has achieved a small success, has shown a strong vitality, but the problem comes again, Why is this possible?

Is it because today's digital capabilities are very universal, because today's platform traffic is good enough for new brands, or the supply chain output is strong enough, or because of the outbreak of demand brought by the epidemic, or the effect of live broadcasting on the seedlings of new brands is obvious, etc., no matter whether any industry has experienced a rapid growth of excess profits from 0 to 1 due to the business model, it will definitely enter the management profits belonging to enterprises from 1 to 10, which has been said at the 2020 Ebang Future Retail Conference. The business model we see has come to an end, it is difficult for you to find a more sexy, purely commercial, not based on technology or the breadth of the market new business model in the market, leaving the vast majority of enterprises we enter a whether it is "inner volume" or "fight" stage, spelling is the process of Internet celebrity to long red, but also after the breakthrough of 0 to 1 from 1 to 10 left for you reasonable profits, enterprises eventually to enter the profit as the main goal of the operation, how to do? For young entrepreneurs and new consumer brands, how to do it?

The above is my question, I hope that all the guests and friends here today think and interact, and finally I have a friendly reminder, when entrepreneurs get money, from 0 to 1 to tell growth, they must use the power of the flood, when the world is full of power, but when you break through this stage, what is the truth, the hero is not free, even if you are a hero, you will find that all achievements are resistance, this is a truth, this day will soon come.

I use a picture that I like very much to send to the entrepreneurs here, I hope that everyone will go from internet celebrity to long red, really complete the breakthrough from 0 to 1, break through internet red, grow long red, just like this picture, from a new moon to a full moon, I hope you all have a pleasant exchange here, thank you!