"Think about it, what is the key point for non-self-operated flagship stores, the proportion of sales has gradually increased to the mainstream!" Lin Qi asked as he lay on his chair and closed his eyes.

Xiao Lei thought for a while and said: "As we all know, Tesco is a subsidiary of our new entrepreneurial department, and offline stores are constantly promoting the introduction of traffic online. Other third-party products have not yet been trusted. After users get used to online shopping, they may choose more third-party goods, of course, the platform should do a good job of supervision, and eliminate third-party products whose product quality and service quality are not up to par. With the high-quality brand of the platform, we can provide loans and even shares to support its growth. Of course, whether it is a loan or a shareholding, it is conditional, and it is necessary to ensure product quality and after-sales. In addition, fast-moving consumer products with low after-sales requirements, such as food and beverages, books, CDs, etc., can be supported on a large scale...... Tesco can launch food and beverage coupons, book coupons, movie and game software disc coupons from time to time, such as 500 minus 300, 199 minus 100 and other large discount coupons to enhance consumers' continuous purchase. In addition, firewood, rice, oil and salt are just needed, consumers are very sensitive to the price, we can carry out free shipping subsidies in the grain and oil category, with coupons, the price is lower than the grain and oil in the supermarket. Grain and oil categories can cultivate consumers' consumption habits without making money......"

Lin Qi opened his eyes, looked at it, and said, "Makes sense!"

The success of Amazon in later generations began to make books, because there is no shelf life for books, the unit price is relatively low, and the after-sales problem is nothing more than the return of goods, and it is enough to do a good job in logistics, and there is no need for more complex after-sales guarantees such as maintenance and installation.

The success of the domestic Taobao model is largely due to clothing, shoes and hats, cosmetics, and various small commodities. Of course, Taobao has a relatively low threshold for opening a store, which leads to a mixture of online stores with good quality and good service attitude, as well as fraudulent and poor quality online stores. Even if consumers can report that some inferior stores can be closed, it takes time and many consumers whose interests are damaged during the period will not take the initiative to help consumers recover their losses if they do not take the initiative to mention it.

As for the just-needed products such as grain and oil, they are constantly being promoted. This is a promotional item that the e-commerce platform began to adopt after the development of the later stage. After all, the gross profit margin of the grain and oil category itself is not high, and it mainly relies on small profits and quick sales to make money. If it is lower than the market price, plus logistics delivery, then it is simply burning money.

However, this money burning is a relatively high-quality money burning, and it is basically impossible for ordinary consumers to make the difference in the price of grain and oil hoarded, but to consume it independently. Therefore, grain and oil orders can really develop a large number of active consumers. It's just that the cost is relatively expensive, which is equivalent to the platform's continuous profit subsidy.

Lin Qixin said that Tesco has long been doing a good job of burning money for a long time, and if it doesn't make money for ten or twenty years, it won't lose two or three billion yuan a year, which is not a big deal.

As long as the burned value is burned, the annual traffic, order amount and the number of active users will continue to grow. Gradually develop the platform into hundreds of billions or even trillions of total annual orders. Well, the superficial company has actually accumulated a lot of wealth!

Users and platforms are very valuable assets in themselves!

Later, the top e-commerce platform, Amazon, once had a market value of nearly $1 trillion, while Alibaba's highest market value was more than $400 billion.

It is conceivable how valuable a platform with huge traffic and user scale will be in the future?

In order to develop an active and effective company, the e-commerce website can even subsidize an average of 100 yuan or even a few hundred yuan per user, if you can earn long-term loyal users, then, even if a person subsidizes a few hundred yuan, it is actually worth it. After all, e-commerce websites make money at both ends, earning both consumers and commissions from online stores. Even, e-commerce platforms can further venture capital, big data, financial services and other markets derived from traffic and users.

In later generations, Alibaba's listed companies did not even include Ant Financial, which is also Alipay, a payment tool that is very highly related to Alibaba's business. Ant Financial has not yet been listed, and its valuation is not less than $100 billion.

Even, purely in terms of user activity, Ant Financial has several times more users than traditional big banks. For example, the top banks such as ICBC, CCB, and Agricultural Bank of China have no more than 100 million monthly active users. Ant Financial's Alipay has more than 500 million monthly active users. Although, Alipay's financial transactions and order sizes are small businesses, unlike banks that will do larger-scale financial business. But...... At the end of the day, many of the big customers who borrow money from banks are used to do business. People who do business basically want to make a profit on consumers.

Then, the financial platform that directly serves consumers seems to be doing a small business, but in fact, it is providing services directly to consumers, in essence, this kind of financial platform that has more users has the potential to even exceed that of banks in the future.

……

After the end of Double 11, Lin Qi listened to Xiaolei's opinions and asked Tesco to once again arrange subsidy activities for books, clothing, grain and oil.

In short, taking turns to burn money and make users feel that there are often discount activities is the way for e-commerce platforms to gain user stickiness.

Lin Qi is still satisfied with the results of Tesco for the time being. After all, the annual transaction volume has exceeded 30 billion yuan. In the domestic market, it exceeded 20 billion yuan during the year, and the remaining 10 billion yuan was the overseas market.

Tesco is expected to lose 30~4 billion yuan before the end of the year, so after the end of Double 11. Tesco continues to receive a $2 billion injection of incremental funding from its parent company, Xinchuang Electronics Group. In addition, Tesco branches around the world, such as websites in the United States and Japan, are subsidized and funded by the local regional headquarters for new start-ups. In other areas with weaker capital strength, capital is injected by group companies.

The larger the scale of this business, the more money will be burned, and the more money will be lost.

Many outsiders are trembling, their eyes wide, and they can't figure out why Lin Qi is so confident, and the more he loses, the more he injects funds.

However, Lin Qi knew in his heart that there had never been a commercial company specifically for the purpose of losing money. Even Amazon, the e-commerce giant that has been losing money for 20 years, has since begun to make a profit. In fact, Amazon can be profitable much earlier and does not need to lose money for 20 years. But...... The reason for the loss of 20 years is more to put the profits that could have been realized into the process. It becomes the number of users, traffic, or other assets. Financially, it may be that the money was "burned". But in fact, it is simply the transformation of monetary assets into other forms of assets. For example, the active users and traffic of the platform, logistics channels, teams, etc......

These become assets for users and traffic, in fact, just because they cannot be better evaluated with existing financial statistical knowledge, it does not mean that these resources are worthless. On the contrary, these assets have actually increased in value, and the more users who burn money in exchange for it in the early stage, the greater the income.

Maybe now you can burn $10 in exchange for a loyal customer. It may cost $100 or more in the future, and it may not be able to acquire effective customers.

The sooner you burn money, the lower the cost will be, and the more effective users you will acquire. After the formation of a monopoly advantage, this kind of platform lies down to make money business.