(The picture shows the good music to buy, founder and CEO of Order Three, TechWeb with map)

[TechWeb] August 17, good music to buy (okbuy.com) will be a guest, founder and CEO of Order Three IT Longmen Zhen, and the majority of his two friends to share valuable business experience and the current Internet entrepreneurial opportunities and business models and other topics. Record

following speech:

Subject: good music to buy Order Three and then start to talk about their experiences feelings of

host: TechWeb, Tencent Technology

Speaker: good music to buy (okbuy.com), founder and CEO of Order Three

Moderator activities began immediately, please turn off the phone sound. Welcome to participate in this phase of IT Longmen Zhen, today we are honored to invite to good music to buy the General Lee, president, asked him to talk about his time at the start of some good music to buy their feelings and experiences.

] [Order Three very happy to be here, before we read the columns. Are before you get the biggest names, and today few venture in this nonsense. Today's topic is the so-called entrepreneurial experience, that it not boasted about this experience, not to mention experience, I was done before I talk about four or five years of digital IT sales, and then turn into the shoes, I mainly talk about Why do I feel that digital was not good to do, turn into the middle of shoes this experience, some ideas for your reference.

I graduated in 2002, after graduation to do a digital IT company, called SOIT. Is relatively large in 03,04 years of IT digital marketing company, we were in the 04 sales was more than 5 million yuan, I was doing before the technical director, when I went to three companies, there are about 200 in 2005 people, the annual income of 4,5 million. Now we do with almost Jingdong, IT digital, digital cameras, MP3, camera, do these things sell. In fact, when we considered the giant of the industry which, in 2004 we ranked first, we are the first line. I remember that there is a ranking of e-commerce, we are ranked first in sales, down the number of users is not particularly large, but a single value for each product is relatively high, sales are ranked first.

in 2005 when the company have some problems, in 2006, we have been doing digital business is not particularly good, the company is also close to the edge of collapse, so I was particularly painful. Then I do the company's general manager, in fact, the company considered the end of my hand inside out. But I am not a founder, I had a technical director, general manager was doing. Was particularly painful, that is such a good company, so there is potential in the digital domain where almost no competition, the equivalent of their own dead. I probably think about a few months to find a cause, more painful, but also a little nervous depression. I was the biggest reason is that our analysis of product problems.

I did not think that digital products are suitable for online sales. Why? First, the margin is relatively low, only about 3-5 percent of gross profit. Second, not particularly convenient, in Beijing can be found within a few minutes a Dazhong, Gome, you can buy a digital product, who would say spend thousands of dollars to buy it online? Convenience in terms of not particularly convenient. Books twenty dollars if you can feel a trip to the bookstore that is too cumbersome. But to buy a three-five thousand dollars of digital cameras, 03,04 years when they are very expensive, do you want to see in-kind directly to buy, this is actually very troublesome. So I think the price was not cheap, but because you are more than Zhongguancun. Convenience is not convenient, low margin off than, distribution is not particularly convenient, relatively high distribution costs. So I think this was Today, the scene of the audience may feel Jingdong also do well, I think Jingdong very good, but just up Jingdong, I also think Jingdong not a good business, he can not go on, but now is very good . So I felt that digital cameras can not do it again. I resigned in 2006 after several friends to explore, do what digital can not do? I had a diamond Kelan Guo Feng, he said we two diamonds to sell it. I said I do not know diamonds, I do not know how to sell, I would not say that. I said I wanted a good two businesses, one selling toy, one is to sell shoes. In fact, in 2004, when I wanted to sell shoes, but did not find particularly good partners. So far I have been looking for, in 2006, when I know now a partner in 2007, when we do this with shoes.

why I chose toys heels? this idea for your reference. Several of our friends are 01, 02 years to do e-commerce, it was done well, some do not, we have been exploring, in the end what items sell best online? I think after this we explore this result , in line with several features, the first feature is compared with the traditional channels, it is either particularly easy or particularly cheap, these two will account for one. If these two do not share, down a few do not talk about it. Like the book it is convenience, and price of the book is not particularly expensive than traditional channels, and some bookstores sell books cheaper than the online selling, so the convenience of the more story-telling is an advantage. Flowers are also the convenience of particular advantage. Flowers on the Internet many times more expensive than the line, about three to four times more expensive look. Guo Feng Sha La La's former boss, I remember he gave me about his Valentine's Day one year, one day, we sold about two to three million. Flowers that are especially convenient, because you get to send flowers to your girlfriend, waiting on that stupid if not particularly practical things. If your family or in the field, you can not possibly get. So I bought a lot of flowers in the above, the teacher gave me the field, gave me friends from outside, or to help my friend gave his friend, so flowers are a convenience particular advantage of the example. Cosmetics on the comparative advantage of a price, so now they can see to do better, do more of these two will account for a large one. Further down the two if there is one, then the value of this product in a single five hundred dollars the following over 500 cost is too high, preferably not less than two hundred, two hundred less than the absolute value of the profit is too low. Absolute value of the profit is too low a lot of fixed costs on your behalf can not diluted. For instance, your freight ten dollars, a book only thirty dollars, ten dollars you freight, accounting for 30% of sales, which you can not free shipping, can not do marketing, so the absolute value can not be too low, unit must be in more than two hundred dollars nor more than five hundred. More than five hundred you convince a customer cost is too high. So in addition to the first front, the first is easy with the cheap will be accounted one. The second is the best unit price between the two hundred to five hundred. Third, margin not less than 20%. Less than 20%, we do it will be particularly painful. We were doing digital, gross profit on low, no more than 5%. Basically, you earn is not enough overhead cost of a mess, as soon as possible so that you have financing, if financing is not even the next month of the purchase money may not be able to flow out, so 20% of the gross profit is the best, but if higher also. The first is convenience. The second is price. The third is margin. Article must have easy distribution. One of my friends have done before household products, selling bathtubs ah, toilet, was not particularly good development. I told him, you should start small pieces to large, you can do first decorative materials, such as pendants, as well as facilitate the distribution of some things, but you can not do the toilet, bathtub can not do that if you start from the inside will be particularly the pain. He thought I was a relatively high threshold to start from here, others can not compete with me, I say you will own their own death Nike Max CB 94, in fact, told me that this situation is similar to a toilet distribution in the past, the cost is very high . If the toilet pitch is inappropriate, improper size bathtub, then delivery back, this is a crazy thing people, so fourth is the need to facilitate the distribution.

these sounds simple, but actually I think there is some reason, many people ask me, this thing I can do online? I have a friend is selling ceramics, he was there in Jingdezhen ceramics factory, the business deteriorated, I open a B2C online selling ceramic work? I said, the price you sell ceramics is not an advantage? He said the price advantage, he said the price cheaper than others. I say you know who this cheap ah? You said sell a bowl is to sell ten or five or eight which sell cheap? This comparison does not come out. I say you do not price advantage. Convenience is also no advantage, you do not account for these two, so no one will buy you something. Like before there is a shopping mall called A, business is booming, you do not have any advantage, you next open a B. The B will not no one, but the B can not be a business, this is a thing to be open to question. B might have a few customers, but B will not live long, because we are accustomed to the A, used in an original way, you are next to no difference, you do a B, you will do particularly painful. You do not want to come a lot way to find clients or customers did not increase, so B can not actually make business. You can tuck shops do, but you do not have any features of the case, the B not live long.

I feel that these points is concerned, we have to judge something, such as jewelry this thing, I think where the jewelry can be done? jewelry to buy online cheap price especially, because of margin jewelry is particularly high, such as Kelan diamond jewelry it is much cheaper than inside the mall, so this has an advantage in price as long as the other aspects can be. Because you can ignore the rest, if there is a particular advantage, you can ignore the other. Jewelry single value may be high, over 500, maybe your cost will be higher, you need to open the store experience, build your image needs a lot of things. So jewelry is not actually one of the most suitable, but you can do, because you just open the store experience, build your brand on it. Costs may be higher than our shoes, but can be done. But take a few more than that, I think is the best toy-heeled shoes do. Shoes, then a single value between two hundred to five hundred. Than with traditional channels, you pair of shoes to the mall, there are stores, mall stores high cost, without discount, we are cheaper than shopping malls and stores at least 30% new to 25% less. The other just a little bit of the season, at least 30%, and in a very advantageous price. Convenience, the men feel more deeply, if you buy something, shopping is very tedious. This shoe shop which only about a one or two hundred models, you have to find a favorite style, the traditional go ten stores. I went to bought, I find a pair of shoes I like, may take 10 stores, running dozens of brands, especially where tired, but it may not be able to find a pair you like. Therefore, in convenience, you can click on it to see through the Internet or even tens of thousands of money money commodity. Shoes are certainly more than the gross margin of 20%. You do the shoes, it may be thirty 40, you do shoes may be higher, the gross margin than other products on the advantage. Distribution is very suitable for distribution, wrestling shoes look, touches simply do not see, there is no shelf life, so the store is also very suitable. So I think that is the best shoes for sale on the Internet, and no competition, we were doing, not in front of Dangdang, excellence, Jingdong Big Mac in front of this, we have no competitors, the market space is blank, so when we decided to make shoes in this industry. Is actually a good toy industry, but the toys do not have to do together. In terms of toys from a single value is appropriate, the price is also an advantage. I buy toys for the children to the family are to Wangfujing toy store. I also accompany my partner to buy toys of his children four, takes about a block to buy a helicopter, electric remote control cars also need to buy five or six hundred, in fact, the cost of the toy is relatively low. Plush toys money can be five, but you may buy a large teddy bear also need hundreds of blocks, at least seventy-eight ten, very, very high margin. Toys and suitable for distribution, delivery is very convenient, and now in Beijing does not have a particularly large toy store. Although Beijing Wangfujing toy store relatively large, but there is not more than two thousand varieties, so say you are selling toys on the Internet is relatively good. But why do we choose shoes? Is because the toy market is relatively small. If you want a career, you can not choose a market size of only five hundred million things. I do not know how big toys, but certainly not great shoes, shoes in China, there are at least three hundred billion market. There is no official data, China's 1.3 billion people, children must wear shoes, adults have to wear shoes, buy two pairs of shoes per person per year, may have a dozen pairs of shoes women, men estimated to have two pairs of shoes, each pair of shoes only one hundred dollars, then multiplied by 1.3 billion, a child's shoe is also very expensive, so both by 100 dollars, the market probably has hundreds of billions of the market. If you want a career, then, is the most suitable shoes, then I am with my partner for a discussion, we decided to do this project.

Then we sum up the most important thing is to make e-commerce product selection, product selection is the first, be sure to choose a suitable do on the Internet. Otherwise even if you spend ten times the effort than others, can not do more than block the e-commerce company, so the election is the first product. Looking back now, before some friends, some of the man child do not particularly successful, and are on the product itself is a problem, so I think the first is to select e-commerce products. Secondly, I think I understand more deeply, is that you must find a complementary experience you have with a partner. I think I am lucky things, first of all I chose the right product selection. Secondly it, my partner is doing the traditional business, I do the Internet, so before I have some very rich friends, told me that we two go sell shoes, I said I do not do. I said you're like me, you also do the Internet, I also do the Internet, we all know how to do ah shoes? So I used a lot of people refuse to cooperate with my shoes thing. Later, I have met a partner, I think he did twenty years ago the traditional retail, but also made shoes retail, have experience in this area. Now I see some of the more successful business companies, is now speaking, not very early, early, then because the environment is not the same, now more fierce competition, only one hand, if you can afford it, and now founder of a start e-commerce company is very difficult. So I think the second I want to say that I have a complementary partner with me, I think this match is very good, I always think that e-commerce is a traditional business, do it with a completely different SNS community, is itself a sellers. If the e-commerce is electronic commerce increases, may account for 80% business, 20% electronic. If you do not have a traditional business inside the team of people, this child is not starting, your chances of success are very low.

individual will is my second team must not only understands e-commerce, but also understands the Internet people. Some friends, is a traditional company, doing very large, traditional-scale level in tens of billions they are doing e-commerce, do not particularly good, and asked our very large, we have a number of department store chain , the number of stores, and e-commerce, do two or three months, company has invested a lot of money went out, why is it so? then I concluded that, although e-commerce business which accounted for 80%, but some use of the Internet do traditional business to be successful. In the case of the plate did not, the first of many systems, the first pull a lot of goods, particularly poor sites do, and then shopping process is not smooth, I feel there is not a traditional store? I am a country like the United States, Suning will be able to make a online shop? this is not. This also gave me deep impression that the traditional reasons for the failure of the Internet company to do the traditional way is to do with the Internet, rather than do the traditional way of using the Internet. Fourth, understand that if entrepreneurs start when the founder must have all-around, try-yourself, e-commerce is actually a relatively long process, one, two, three, four are likely to, start their own do not understand anything, you may know, you just large surface, can not do specific things, if you are not technical, you may have to ask the technical team, or spend half the time to develop a system that requires a lot of money. They do not understand your business, you also requested a business person, this company will be successful, you need to spend more time, then your costs are particularly high. Then each of you can not grasp this matter in the end will be particularly painful. Where you do not save money, where are all expensive. The beginning of our company I am a person, not only to write the program, they do do the design and editing. My partner used to be a big company CEOs, he is responsible for taking pictures of his own to learn how to use cameras to study those things, customer service, only one person, that person 24 hours stay in the company, our former colleague , more know too much, salary in half, but if the company is well, will be compensated back. Our company started four or five people got up, I do not salaried, my partner is not salaried, others half-pay, because we do not know this company can become a few years, now may seem a little success was achieved In fact, this result was the creation in our time is not thought of. I think if you want to start, especially in e-commerce, then part of very large, very long, you have to have a-yourself mentality, as much as possible myself. I personally believe that we have-yourself mentality, in fact, a lot of confidence in our team, we think you can hold for one year, support for two years, support for three years no problem, the most incompetent people have to go our own dry This is our success.

then the so-called entrepreneurial experience, has made a success of a fart is the so-called experience, did not succeed all the success you've learned the theory do not apply, I personally feel like it, everyone will have some of their own expertise, and I think everyone start time, we must analyze their own for what. I met many people, there is a business-minded, we must start, if you own ability, you are a professional, I will only Internet if you only this, you will find the thing for you to do If you simply must do e-commerce Internet people, not much point in this thing, and you compared with others, you do not have someone strong, traditional e-commerce business, your employees do the traditional Internet business really is not appropriate . When you start early, be sure to analyze their ability, what areas do you fit in the end. If you are a traditional businessman, you better not touch the Internet, these two still different. So I now see that many people experience is a bar inside the reactor in the business, from a certain perspective to the way he may not stay for another two decades of success. Not to say that is not strong, because he do not take sides with the ability, so the first start, be sure to examine the ability of the cause in the end what kind of people, if you have only one hand, it must now find a your ability to match another person. If you do a partnership with Tencent Ma, you have only 1% of the shares, you are today is a billionaire, so we do not care too much about the beginning of time shares. If you think this thing the other's ability to dominate e-commerce which, I think the traditional dominant, if the more traditional people are willing to share, I would say you can, because you are a dominant position inside the enterprise, you are the most important core, then I think that you can, you can share more of the shares. E-commerce supply chain is actually something, bigger after today to see these larger companies, which one of the best the industry to medium, and small companies like us, or smaller companies, the core of all the supply chain. The stability of your purchase, procurement capacity to determine the height of the development of your business. I understand this point, we analyzed and this matter, analyzed and individual ability, and then do a match with each other things, your chances of success will be particularly large.

In addition, I would like to share a quite another thing I do, nothing to do with e-commerce, but I think the whole idea of ​​this thing for me to expand particularly deep, that I found at the end of 2007 from easy to get, the more depressed at home, I made a music site, called songtaste, the idea to share with you. I prefer listening to music when working, and now the music Web site does not meet my personal needs, I find a song a lot of trouble Nike Jordan 4 high heels online, such as I like to listen to Stefanie's songs, but I heard Stefanie do not know after listening over what, I will find my friends ask Sally what are you listening to? Mike what are you listening to? may They keep her music to me, that you both will not work, I find the third person to ask. Third person may be Wang, like your music with me, I constantly asked him to, after the twenty-song Wang said I, I tired of hearing, I do not know who to turn to, you find I want to, I think the music is actually looking for a particularly difficult thing. Traditional music websites problem is that they are collecting all the music together, regardless of one hundred albums, a thousand albums, as long as they market music collection. I'm looking for one of my favorite music to listen to them constantly these albums, from the beginning to hear the end, after listening to a listen to one, to find a favorite, you may need two hours or three hours. So now I do not think the site is not music, is the lack of help I can quickly find what you want to listen to the music Nike 6.0 Low, which is very troublesome thing. I thought, I should do such a platform for my own use. I do a music-sharing positions, everyone regarded his favorite music on top of this, they need to find every day, and I see twenty people there who say it with me like I am on a daily basis staring at their favorite music, they put their favorite pass up. I do not find them to be, and another person he has such a confusion, he is also tired of hearing music, he can find him in here like to listen to music, then find the taste very much like some of his music. Then I put this thing on the Internet, and then I did not too much control, I find I have these friends, that we put the music right, so I then on, I found that there has been a very big traffic, the site every day crash. Probably more than two years now, with 300 million registered users, the recommended songs reached more than two million first. Many people told me that this thing you are no technical content, it will not be successful, this thing is people can do, but no analysis of the nature of the problem, you this thing looks very simple, but the user can solve the course, I think this is particularly important. This work is actually very simple, a website, but it solves a lot of users. That list, Baidu's music search, traditional music website I can not solve the problem is resolved out. I do not have any promotion, so much the number of users every day, so I think you are not necessarily looking for a very deep, very technical stuff, you just find a very small point, this point may be digging up the success of .

shoe companies, I think the shop floor inside the mall is certainly the most expensive, most easily accessible in every place where people can rent the most expensive power, you go to the mall to see you What is the most money wasted? money to buy things in the most innocent level. What is the layer? Cosmetics, jewelry, shoes. Then top that? Top is discounted, last season's. I felt shoes on the first floor, there is certainly a high gross margin, I said through the Internet, the product must be able to reduce this channel. First floor of the rent is very expensive, on behalf of your space is limited, through the Internet means you can keep costs to zero, to maximize the advantages of the Internet, you can save up the cost, you have an advantage on price, convenience also has the advantage that you can through some emotional understanding, analysis of the market saw the opportunity to feel that this product can do, I actually do a bit to learn a bit, and she told me to think about. Level of 25% -32% rental shop, any activity you do, the cashier will automatically be deducted 25%, the rest of the money to shop. Why do a lot of stores do not discount? Because can not discount. Brand name of the product itself, especially the high purchase price, shop rent is high, so I can not discount, such as Nike, Adidas, how much to buy back much, he took part in those activities, there is the cost of support, however. Many opportunities in your life to observe something, look around you friends, take a look at yourself, you can find some opportunities, and not necessarily to start a business venture. In fact, I quite appreciate things from foreign countries, foreign success stories, husband and wife are two people, with something with the tired, the two engage in a fire, something special. There are many, not to start a business venture, and they are small in order to meet the problems of life found it to make it. Many domestic entrepreneurs to start a business venture, this may in fact not particularly on the right idea.

business including our shoes at the time, I did not expect the future to do more large-scale, but I think this thing is very easy to buy shoes, a look of success in the U.S. case, I think this thing can do , in essence, this is not particularly rational thing to think clearly, but my intuition told me, from my shopping habits of people around you think you can do, then a rational analysis, look at the market, take a look at their shoes objective conditions, with my previous experience to compare, you can. Finally, we look for opportunities, some of my personal experience is that you can start from the side. There was a time I wanted this thing to see a thing can not be sold online, all my kitchen table, the walk will want to see, before I buy it when there is no difficulty, and then when someone else buy it kind of process is how many opportunities you can find out from the side, I would probably say so much, put it more chaotic, thank you.

Moderator Thank you Mr. Lee, our IT Longmen Zhen is indeed a very relaxing activity, Lee also spoke a lot about the business of the feelings and experiences, interactive link below to enter the site.

[the audience] I was happy to buy the company, I have two questions, the first shoe to do this kind of business e-commerce, the Chinese people's habits will be particularly critical of shoes, shoes, even if there is mold factory Returns will have a little problem, I would like to ask is how good music to buy to solve this problem? second question, I have to buy before the visit deliberately in a little good music, good music to buy shoes is generally in two or three hundred , four to five. You also said, in the traditional market, distribution costs are too high shoes, but I find good music to buy, and now the price is more expensive shoes, nor is it normal people can buy from, and my problem is that you have not considered the current price of around one hundred to two hundred and then dropped to between? this market will not be greater, because the greater the amount of your purchase, your business will be greater, I do not know how you think?

] [Order Three first question, I have a chance to make shoes, 2007, when other things did not chance. Ah you do book, audio, ah, there is no chance of electronic products, shoes have a chance in 2007. Shoes is the latest to enter the big e-commerce industry. Why not enter? There are two, one is the traditional industry of people think that shoes need to try to experience them in the shop, do not try is not sell. The Internet believe that channel is difficult to find, because the shoes are controlled at several large giant inside, such as Nike, Adidas, the channel is very difficult. U.S. company zappos, also a founder of the Chinese people, called Hsieh. In fact, he is not the first founder, he was the first angel investor. He was created when the others mentioned in this opinion, if you do not try on shoes are not sold. He then proposed that the concept is suitable for wearing inappropriate that is. Distribution costs in the United States is always higher than China's, he can do it, China is in fact relatively low distribution cost is eight dollars or ten dollars to basically anywhere in the country. We are now providing in this way, you do not know what to wear 41 or 42, you can also set two pairs of shoes 41, a pair of 42's, cash on delivery, you open the package to try on the spot, choose a suitable pair of your stay down, the rest of the return on it, you do not have any cost, it is convenient. That the middle of our costs, first cost is the cost of distribution, two pairs of shoes I distribution costs are high, there is also destined to return to a pair of shoes. The other is I want to Yahuo, I can not sell a pair of shoes, if I do much, there are a lot of shoes destined to flow inside the channel, I can not sell these costs. But then, you just mentioned, you try this, try the problem is not resolved, this business can not do, I have had to solve. Solution is just that way, I have to control costs. I control the cost of distribution is that the first cost is cheaper, the second I have a pair of shoes can not sell. Another point, we started off the sports shoes, sports shoes, the size standard for comparison, Nike, Adidas's size is relatively standard. If I find a shoe factory in Wenzhou, which do a pair of men's shoes, it may not be standard size, this we know, so we did not come up all the shoes have to do. We cut up shoes size standard, return rate is very low, we have steps. The future if we do shoes, men's shoes, we will establish a library size, we have a special pair of shoes staff. 42 Nike you wear the right, I will try out all the other brands of shoes, the wear four a few, and that several of wearing three. If you pass through one pair of standard brand-name before these, I will give you a recommendation, you should wear what to wear the other, to minimize the frequency of Return, which is the first question.

second question, in fact, the price is not to control me, I can not sell a 200 to Nike, I have not come to purchase. That I can not fail to sell Nike? Is impossible. Shoes are more concentrated, and now sports shoes brand can not be called out more than ten, the presence of people should be able to call out the dozens of brands of hard. This represent? On behalf of the brand strength, the channel is weak, the price is not my control. If I sold one hundred Nike, then I died. Nike would not let me sell one hundred, he did not die when I put my goods Qiadiao up. Of course you can not sell some of a 200 product, the future certainly will be, but I can not sell a 200 up on the product, not the brand that I had. I said I sell a brand of shoes, one hundred ABC, others will come to buy? I pull to a customer might spend five hundred dollars, I said I sell Nike products 30% off, that I might pull a customer only 50 dollars, 30 dollars on it. We'll be selling some of the low-high-end can be sold. But now you say that our product is not too expensive? Is not expensive. We are just on the top a La Sportiva climbing shoes, the world's top, a pair of shoes to sell your eight to nine, are a thousand low-end, selling very well, this is actually spending power is still very high, one or two one hundred is not necessarily sell better than a 2000, really not.

Moderator Now that you are mainly high-end, right?

] [Order Three is in the end, Nike, Adidas have this friend that I sold you, I do not sell expensive, Nike, Adidas itself is the price, three or four hundred I think it is a block in the end, can not be considered high-end.

Moderator based in the end. Such as Nike, he gave you the price limits are not so big?

] [Order Three points are also a great price Nike also has a two thousand, there are two or three hundred block. We contract with some big brands, basically he will control, this may have a friend who will ask, is not there brand limit your price? You little time there is no limit, you will certainly be a bigger limit.