The Internet of Nuggets


Editor’s Note: This article is from Jiyuan Capital, and 36 is authorized to be released.GGV Evolving Enterprise is the GGV Enterprise Internet Transformation Conference, which aims to invite leading companies in the field of enterprise services to provide an overview and comparison of Chinese and American enterprise service industries, opportunities and challenges of corporate Internet and industrial Internet, and changes in new technologies to traditional industries.Do deep sharing.GGV Evolving is GGV Jiyuan Capital’s most important brand event of the year, aiming to invite leading figures in the industry to deep share and industry exchanges on topics of industry concern.Since 2017, GGV Jiyuan Capital has held GGV Evolving Lifestyle and GGV Evolving Plus conferences in China.The following is a round-table dialogue at the 2019GGV Enterprise Internet Transformation Conference: a record of the transformation of technology, software, retail and logistics, organized by the cloud.Moderator: In the following link, we invite Mr. Xu Bingdong, GGV Jiyuan Capital Management Partner, to have a dialogue with three industry Internet CEOs.Xu Bingdong: I will ask you about some of the company’s business. In fact, all three of us are TO B companies or TO small B companies. I ask a few questions on behalf of your customers: If I am a small B today, or a standard BI am the CEO of a company or I am responsible for purchasing this aspect.I am a small business owner. I am the owner of a small hotel. I am used to getting up at two or three every day to ride a tricycle to buy food. The key is that I am relieved. I have several old accounts in the wholesale market. He is very close to me.Cooked, give me a discount.I bought something on the spot and said that it will not be short of two.Through the Mei, the price is very cheap, but will there be less water?Why are you shopping here?Liu Chuanjun: For us, this is a problem that we have to encounter every day. What we are doing is a stock market. We do business without the restaurant before us. We buy the same food, buy the same goods, why use us?This is the question we have to answer and also to solve.There is a saying inside us that the restaurant is reassuring, and we must always be assured that today we are at ease, not a skill, and we are always at the core.Therefore, in the supply chain, we must ensure a stable supply. In order to ensure a stable supply, in order to ensure that we have just said, we have made a four-level disaster recovery plan, because fresh can not be stocked, there are some in the warehouse.Rice noodles can be stocked, but vegetables and spot agricultural products cannot be stored. It is necessary to predict the dynamics of the products. The accuracy of the trunk logistics must be ensured during the journey. If there is a problem with the logistics, the first-level cultivation plan must be guaranteed, and the substitutes must enter.warehouse.When there is a problem with the customer, I have to ensure that there is a disaster recovery plan.If there is any quality problem, it will be exchanged immediately. If the shortage is short, the two will be replenished immediately.In the past five years, we have been building a supply chain system, that is, we hope that our customers can safely hand over the back to us, and we can serve him in good condition.Xu Bingdong: I can rest assured that I can sleep late in the US food network.Every special city has an auto parts city. There are also two good buddies in the auto parts city. If I am a customer, I have been driving an auto parts factory or a roadside auto repair shop over the years. It seems that I have not encountered any difficulties, no matterSKU is still a product or something else, I can solve it by phone, why should I buy it through you?Jiang Yongxing: First of all, we have two scenarios. Under normal circumstances, all the things we need to buy during maintenance and maintenance may be filter elements or oil. The supply of high-frequency things is very sufficient, so it is very accessible.The pain point is not very obvious.But if repairs, similar to human surgery, especially the scene of an accident car, there may be dozens of things bought in this work order, especially if your car is older.At this time, in the real situation, it is very difficult for the repair shop to find these parts. The former auto parts factory ox, said that I can help you find it, but the whole chain behind it is very primitive.We are now merging these things together, technology can solve the search problem of other power distribution, we supply all the supply of the source on one platform, the ox is looking for seven or eight ox, even through the auto parts city can be found, but inWe can find it here at once.The real situation in our country is the shoddy and high imitation rate of auto parts. It is close to 40% in Beijing. For the owner, the spare parts of the car are just like the ingredients and medicines. It is very important. The original factory is the original factory.High imitation is high imitation.We repair the car very much like a doctor. It is not just a one-off service. Because our car owners, we have two services for repairing cars. The first is long-term business, and the second is local business. In addition to traveling, it is generally onlyRepairing a car near a company or home will not run too far. If the repair shop is not reliable, it can make money in the short term, but it will lose customers in the long run.Therefore, in addition to the short-term spare parts supply, the spare parts trading itself has long-term after-sales service and quality assurance.Our system, after knowing this code, where did this spare part come from?Digitization is traceable. The links in the chain can be continuously predicted. The low-frequency things should be shared. If the high-frequency things are pushed forward, it is a process of continuous improvement.Just asked the boss, if it is the boss, we can solve the problem of sunshine procurement, because the industry does have some gray things.Xu Bingdong: If I am the owner of a small truck company, if you come to refuel through your fueling network, the price is somewhat advantageous. How can it help my company’s compliance?Lv Jian: It must be cheap. The profitability of the logistics industry in China is very saturated. Refueling is the most costly expense.In addition to being cheap, I helped him with a customized SaaS system, because most of these logistics companies used hard cards to refuel, can data transmission be managed to the driver?This is very important, using the electronic fuel card to refuel, the data is uploaded in real time.The third is the convenience of settlement. These companies need VAT invoices after the 2015 China business tax VAT reform, but in history most of them buy more invoices through non-compliance.Now that we have used our products, he originally had to check with many gas stations, and the invoices were opened every month. Our SaaS system was reconciled online, and an invoice was issued every month.Cheap, easy to manage, and easy to settle, this is our advantage.Xu Bingdong: Three small questions can help everyone better understand some of the company’s business. I want to help you understand the industry Internet more. Everyone said that the industry Internet is a very big investment direction and trend after China’s consumption of the Internet.When I first entered the investment industry, my partner at the time asked me to do an industry report analysis before I made an investment.But in the past ten years, our industry analysis has become less important, why?Because China’s industry is too big, there is no one trillion yuan in an industry, and there are no more than 500 billion. If this industry does not even have 200 billion, no one will watch it. This is why China is developing fast.Today, ask a relatively simple question, what is the industrial Internet in your mind?Is the industry internet B2B?Liu Chuanjun: In my understanding, the industrial Internet is definitely not the same as B2B.I think the Internet is just a tool. Just like inventing a steam engine a hundred years ago, it was invented. Electricity has become a necessity in our lives. It has become our bottom ground, and all places have electricity.The Internet has slowly begun to sink. I believe that in the next five years, the Internet will penetrate into every aspect of life and industry like electricity.But now, the Internet is very mature on the C-end, but it is very backward in the industry.Back in our industry, there is no trace of the Internet in the upper reaches of agriculture. There are various innovations, but there are no traces.The simplest example is why there are so many unsalable agricultural products because the information is opaque.What the farmers are planting and planting according to their own judgments and thinking, the market demand is changing with the market, which is out of touch.This year, the price of this product is very expensive, it is very popular, and it will be swarmed up next year. Many people are planting it, which will cause slow sales next year, then fall in the ditch or rotten at home.I went to Miyi County in Sichuan at the beginning of this year. It was very rich. They produced tomatoes, but the tomatoes were slow-moving. When I passed both sides of the road, I saw tomatoes on the roadside and the smell of tomatoes in the air.Going to a lot of people’s homes, the family is full of tomatoes, an aunt took the tomatoes out of the ground to feed the pigs, because the planting area of ​​tomatoes was too big that year.We believe that the industrial Internet should infiltrate the power of the Internet’s technology and technology into the industry, insert the wings of the Internet into the industry, and use the data, market information, and industrial power to the industry to make the industry more efficient.I think the chain of agriculture is especially needed because there are 800 million farmers in China. Eating is something that everyone must have, and China’s agriculture is very primitive and backward.There is huge space and value inside, which is what the American cuisine network has to do.B2B is just a point where we cut into this industry. This is just a fulcrum. Finally, we hope to bring this power to the industry. We can really transform this industry and make the industry more efficient. Farmers no longer have to worry about what to plant and how to sell.The problem of not selling can be.Xu Bingdong: In view of your current industry, everyone said that the industry Internet can change the supply chain structure, not just the problem of solving transactions.In the pattern of the US food network, in our current vertical field, how do you feel that we have changed the supply chain pattern now, and how will it be further affected in the future?Liu Chuanjun: From the perspective of supply chain structure, I personally think that the supply chain will undergo tremendous changes. This change may exceed our current perception.For example, from the point of eating this, it is a huge network, what do you mean?We have seen that consumers eat in restaurants or at home, buying raw materials and making things they like.From the industrial chain, it is a very complicated and very complicated market.For example, from the fish, everyone often eats pickled fish or balsa fish. The origin of the balsa fish is Vietnam.If we have the sales of Basha fish, we can connect the companies and farmers that have been raised in Vietnam, transform the efficiency of fish farming, and directly open the channels from the fish factory to the table. This has already happened, and it has already been realized from Vietnam.Fish factories go directly to the Chinese consumers’ table, serve Chinese pickled fish restaurants, and serve Chinese consumers. This is actually a huge space.For another example, such as potatoes, there are only two places in China’s main producing areas, one is Shandong and the other is Inner Mongolia. In Tengzhou, Shandong, the output of one mu of land can reach 7,8 kilograms, but Inner Mongolia only has 4, 5 kilograms.There are only 2 or 3 kilograms in Daliangshan. From the varieties, planting techniques, management methods, etc., there are huge differences. If the industrial Internet is upgraded, it is possible to introduce the technology, varieties and methods of the planting axis in Tengzhou, Shandong.In Inner Mongolia, it can increase the production of 30% and 40% of Inner Mongolia, and it can also be introduced to the Great Liangshan Mountain, which can also improve efficiency.At the same time, there is a common connection between commodities and commodities. For example, the feed for chicken farms is soybean meal and wheat bran. In the upstream, soybean meal is bought by refineries, and then soybean meal is left. The upstream of soybean is American soybean.If the upstream consumption channel changes dramatically, or if the B2B is large enough, it will definitely change the supply and pattern of global agricultural products.It is possible to improve the overall efficiency and optimize the entire supply from the overseas farms directly to the chain of the entire industrial chain.In the next five years, agricultural products will definitely undergo tremendous changes.Xu Bingdong: How big is the gap between the industry Internet and B2B in your eyes?Jiang Yongxing: The gap is very big. B2B only emphasizes the concept of a connection, but in fact it is an extremely simplified concept.In most of our industries, most of the cases are a stock market.So first of all we have to consider whether this stock market can be better because of our entry or our existence, so we must first look at whether we have created this value in this process.Therefore, from this point of view, most of the B2B auto parts industry is a traditional practitioner in the aftermarket. We all know that the car itself is a product of technological nature. Basically, it is 100 homes with the largest investment in R&D in the world, and 30 are cars.Domain related.Technology and capital and talent are intensive, but our car service market, relatively unfortunately, is mostly the original technicians. In general, the technology is very weak.So our entire customer’s entire management is rough and there are many problems.In the past, China’s scientific and technological talents have entered the Internet and capital markets for so many years, and have entered the post-market relatively less.Open the post-market, there is a lot of things on each B side to reflect the efficiency of the industry. In addition to the spare parts trading platform, we also have SaaS, a supply of upstream spare parts, including some manufacturers, so that the inventory fromThe warehousing to management to outbound and our trading platform is online.There is also a SaaS system for the repair shop, which is currently deployed a lot.In the past, the repair shop has been an island for many years. We can help the owner know the condition of your vehicle maintenance through SaaS. With the supply chain platform, we naturally know the record of all maintenance and the real state of the vehicle.It is only to open up the two industrial chains, but because our existence makes the whole industry more efficient, or makes everyone feel better life.When connected together, there will be many changes, including changes in the transaction structure, changes in the cost structure, and changes in the user experience.So I personally think that B2B is an extremely simplified concept. The industry Internet may be different from other industries, but we think that B2B should open this B. In the entire industry chain, have you reshaped this transaction structure, let usThe efficiency of the chain and the user experience are better than the original.Lv Jian: History has proved that the Internet must be advanced productive forces. This is beyond doubt.Therefore, in every traditional industry, in the past 4 or 5 years, from looking for oil nets to Mei, we all hope to solve the efficiency problem of each industry by means of the Internet. Our oil industry is also extremely traditional..In history, only companies such as China National Petroleum Corporation, Sinopec, and Shell are integrated companies that buy crude oil and re-distribute them to gas stations in refineries.Finding what the oil network is doing is really making some revolutionary changes. We connect a lot of gas stations in a lighter way, through their trading data, and our customers to refuel, is it possible to OEM?Chemical, even foreign crude oil plants set crude oil?We are currently making such an attempt. If the entire supply chain adopts our technological approach, the logistics industry will undergo great changes.So the Internet empowers our industries. In the next five years, we believe that tremendous changes will occur.Xu Bingdong: Yesterday I met a founder. He said that the industry Internet is doing pipelines, but originally there were batches, two batches, three batches, and terminal service providers in China, and then to the last small B customers, this customer may beB, maybe C.There are two ways to reform our pipeline today. One is to increase the pipeline, which is to make me a package of service providers. This is to improve the stickiness.There is also the shortening of the pipeline, shortening the pipeline is that I have to remove a few rings from such a long value chain, so that everyone can make money, the following people can buy cheaper, the price of the above people can be sold higher.How do you see your business now?What are your considerations and ideas?Liu Chuanjun: Actually, it is two logics. One is that you want to broaden and deepen.For us, we once wanted to be wide, because the restaurant owner gave us a lot of needs every day, saying that you can let me meet one-stop?Don’t let me find someone else. Every customer has this kind of demand. We once thought we could do it.But frankly, it was very difficult to find out after three or five years.Because the traditional e-commerce is standardized, a plastic bag will standardize the product, and the delivery will be completed.Our products are looking at the collapse, there are water swimming, there are flying in the sky, there are live, dead, there are all kinds of warm layers, I want to optimize its standards, maybe we need moreTime, we have to find the core things, can not penetrate the global industrial chain, and then deep, to be more valuable, to meet the limited needs of customers, which is more important to us.Because the standardization of this industry is a worldwide problem, vegetables in the United States are very expensive. The average price of vegetables in China is only 1.5 yuan per kilogram. It is also responsible for delivery, but also needs to be packaged.All kinds of services, this 1.5 yuan is my profit is a big challenge for me, not to mention the purchase price of goods, we have a lot of challenges that must be balanced.We are constantly iterating.Xu Bingdong: It is also very important for us to be deep. At least in the short term, in such a complicated Chinese market, it is very difficult to serve users well.Jiang Yongxing: In the industry of auto parts, the thickening of pipelines and the shortening of pipelines are alternating and occur simultaneously.Bold pipes, some things we don’t change, some things change.For example, we started to trade the core components of high-end cars. Through this trading platform, we built the governance structure of the platform and the underlying infrastructure, including logistics scheduling, as well as the portraits of our buyers and sellers, based on the intelligent trading matching algorithm.When we superimposed the mid-range car trading, the logic was similar. It just said that the storage of the mid-range car owners and the repair shop had some changes, and there was no change for the platform.Therefore, we can do mid-range cars. It turns out that its growth is also very fast. Based on our platform, the logic for finding and trading is similar. From this logic, we are in the process of thickening the pipeline.Another industry, different categories, low-frequency things must be shared, high-frequency things are most likely to be close to the end of the consumer, from this perspective, some categories are extremely shortened links, such as Bosch or mainland spare parts20% of his spare parts will be sold to the aftermarket, we can clearly tell Bosch or Land Rover or Mercedes-Benz’s yard, where each type, different SKUs are installed, what is the use situation, 13Among the home parts giants, we have cooperated with six households. They want us to shorten this chain. At least we return the data to him. From this point of view, some chains are shortened.Lv Jian: Our users in this industry want us to finish everything. There is no doubt about it.But when we go up from the downstream customers, we must be altruistic, so that our circle of friends will make money.The first is the gas station and the upstream refinery, but these methods and methods are led by us, so that the gas station can earn a lot of service fees, so that the upstream refinery has a lot of production charges.We have set it up on this matter, so we are doing both rough and thin pipes.Xu Bingdong: Today, the industry Internet, the word is both fresh and not new.In which countries are the Internet of the world possible?China, Japan, South Korea may have, does Europe have it?Maybe not, the United States may not.The industrial Internet background mentioned today is China, a manufacturing base. Is the industrial Internet a Chinese industrial Internet or an international industrial Internet?Do you think that our industry is likely to do better in China in the future, then go overseas and go out of China?Can your industry export to the world?Or it is exported to Southeast Asia.Liu Chuanjun: Let us first look at this industry. The industry is downstream in the catering industry. China’s catering industry is taking a global route, but after all, the tastes of each country are different, and my globalization is very difficult.Whether it is Chinese or Western food, you always need beef, potatoes, and eggs. For me, restaurants all over the world are the same, no difference.The customer’s needs are just my services, so his own conditions are the basic conditions of globalization.The second is upstream agriculture, which also has the same conditions, even if it is Japanese agriculture, Europe’s agriculture is the same.In the past few years, we have received invitations from many countries. Last year, officials of the Thai government deliberately found us and brought a delegation to say that we would like to go to Thailand.Thailand has only 70 to 80 million people. We have not done well in China, so we have not considered this issue.I said that our vision is to make happiness for China’s 800 million peasants. Later, Thai officials said that Thai farmers also need us. We hope that we will go to Thailand and then go through the industrial chain to help Thai farmers and serve Thai restaurants.For us, we have the conditions for globalization. From this perspective, agricultural products are inherently global.Xu Bingdong: The recent pork price has skyrocketed, but yesterday China announced that it imported pork from Canada, so the agricultural product is an international supply chain. We are very much looking forward to the opportunity to get out of China.Liu Chuanjun: In the future, the population of the world will increase, the population will increase, and the land will be limited. In fact, there are huge potential opportunities.Xu Bingdong: Great demand and regional imbalance.Jiang Yongxing: Our automotive industry is naturally international. Of course, our Chinese market is big enough, so we definitely focus on the Chinese market.If we look at the future, we feel that the standards have been defined in the yard. Chinese cars can be sold to China, and foreign cars can be sold to China. Therefore, from the perspective of standards and systems, it has been naturally globalized.It is.Second, from the perspective of auto parts, China has a large number of high-quality production capacity, which is very valuable to our foreign companies.For example, many companies in India and Thailand, especially Southeast Asia, have actually started to communicate more closely with us.Cars are relatively good, there are standards, but also digital, and the entire repair shop or the entire supply chain system, the manufacturers are better defined, so there will be no complicated problems, the overall has been unified, and technologyThe bottom layer is open.From this logic, the second point is also possible.In addition, from our own point of view, our team’s own genes will be internationalized because I have been working for Huawei for 15 years, 5 of which are in overseas markets, and other members of our team have long working experience overseas, includingLived in Silicon Valley for 18 years.Therefore, we understand the situation overseas. If we are in the far future, we believe that the auto parts market should be a relatively unified market, because this market is relatively clear.Xu Bingdong: This industry has a better chance of becoming an industrial park in the industrial chain.Jiang Yongxing: I can only say that there is this possibility, but there are many variables.Lv Jian: Our industry has already been globalized in China. Because China is the world’s largest energy consumer, 80% of its crude oil is imported back abroad. This is a question of energy security.So the supply chain has long been globalized, so we can work very well with those crude oil providers. This proposition has actually been explored within our company.Returning to the downstream customers, is it possible to globalize on the issue of refueling?From the American company FleetCo, because the US payment has been very developed, why does this company exist?It is because he can provide fuel data to these truck companies in real time. This behavior is not standard all over the world. Will truck drivers refuel and will not sell oil cards.Therefore, most logistics companies hope to help them save money in refueling, so in the long run, there is an opportunity in Southeast Asia, and the United States has achieved globalization.Xu Bingdong: The payment made by FleetCo is corporate payment. Corporate payment is a relatively independent market. Do you think we will have such considerations in the future?Lv Jian: We really didn’t study it in depth, but the American company, because our CFO and CTO have a very deep connection with the company, CTO is the company’s product vice president.Therefore, when they were doing in the US market, they found that Europe and South America were such behaviors, so their current enterprises have already made globalization in solving corporate payments, especially fuel consumption.Xu Bingdong: I am fortunate to have the three together today and hope to share more with everyone.The term “industry Internet” is also a hot word in the past two years, but the definition of it is not particularly clear. I think the sharing of the three people today can help us broaden our horizons and divest B2B itself, but the industry Internet.In addition to B2B transactions, there are also SaaS, underlying systems, including other payment attributes, including technology changes upstream and shortening the supply chain, shortening the value chain, creating more value, and aggregating at different levels.More counterparties.The industrial Internet is a big picture, along with China’s economic and mass growth in the world, including China’s manufacturing base of 30 or even 50 in many industries, so we feel that we are optimistic and cautiously optimistic about the industrial Internet.Of course, not all industries have this opportunity, so we hope to have the opportunity to work with more leading companies like the three founders in their respective companies to make China’s industrial Internet bigger and stronger..