Although Alibaba Group started out with Alibaba's B2B website, which was founded earlier, it became profitable early on. Pen & Fun & Pavilion www.biquge.info but B2B does not have much oil and water in nature, and in addition, the competition in the B2B market is fierce, so the B2B networks are not very profitable.

It is precisely for this reason that Alibaba's last transformation was to open a C2C e-commerce Taobao. Taobao was founded and was not favored by many people, and many Internet giants were reluctant to become Taobao's venture capital, which also made countless Internet giants regret that they missed a rare investment opportunity.

Today, Taobao has become the leader of China's C2C type websites, and in terms of transaction volume, it is no less than Amazon.

In fact, Alibaba's most promising asset is Taobao, which started on these grassroots shopkeepers, but is increasingly dissatisfied with them. After all, there is no way to supervise online stores as a platform, so fakes are rampant, affecting the development of the Taobao model, especially the promotion of Taobao internationally and the plan to list overseas.

Next, Alibaba decided to launch a new brand, Tmall, to differentiate Taobao and transform Taobao.

The predecessor of Tmall was Taobao Mall.

Previously, in order to develop B2C business, Taobao built a B2C mall on the basis of C2C's Taobao. Taobao's main site is free, even if it is through the transaction commission, it does not make much money, but loses a lot of money every year for the operation and promotion of the website.

After opening Taobao Mall, that is, charging tens of thousands of yuan in rent every year, allowing users to open higher-end mall stores, Taobao continues to guide traffic to the mall, so that some shopkeepers who originally mixed Taobao feel that it is difficult to do business, and some shopkeepers who have accumulated some capital began to pay money and transform into a mall B2C model.

However, the B2C of Taobao Mall is not thorough, mainly some C2C store owners. After paying the money, it becomes a B2C mall store, which is not the essence of B2C. To put it simply, since you are the owner of the store, you only need to pay the money to Ali official. Alibaba does not supervise and guarantee the authenticity of its products.

Therefore, the opening of Taobao Mall has solved the profitability problem of Taobao, making Taobao from a money-burning model to a money-making model. But it is far from the B2C model that Taobao wants to transform!

The essence of B2C is that a company, a brand, sells goods directly to consumers through Internet channels. Compared with C2C and B2C, in general, the B2C model can better ensure the authenticity of the goods, as long as the brand itself is reliable, then, most of the goods peddled are also genuine, after all, enterprises will not joke with their brand reputation.

Of course, Ali's opening of Tmall can also be regarded as intensifying the traffic on Taobao to Tmall. Meanwhile. Constantly attacking with heavy punches to crack down on fakes on Taobao.

For small shopkeepers, it is not only Taobao crossing the river and demolition, but also worsening their living environment. However, for Alibaba, such a transformation can not only increase the overall brand reputation, but also increase its revenue. Originally, Taobao's massive volume of transactions, Ali could only be greedy. Actually, it's hard to turn to these volume benefits. But with subsequent concentration, more and more service fees can be drawn from these transactions.

The more service fees you can draw, the more money you can burn. And then you can also play a double eleven money burning game similar to your little friend and the little prince. Ali at this stage is not as rich as later generations, and he is powerless to burn money!

As a direct competitor of Taobao, Little Prince Group is not actually a pure B2C, but a mixed B2C and O2O model.

Over the years, the little prince has mainly been a supermarket manufacturer and some commonly used goods. Directly distributed to customers through supermarket stores, therefore, logistics costs are reduced. In addition, supermarkets also have offline sales and revenue, hedging the risk of purely online operations. Kill both online and offline, so that the little prince has more channel and cost advantages than pure e-commerce, or pure offline supermarkets and shopping malls. So far, the Little Prince's stores have opened more than 2,000, relying on 2,000 large supermarkets alone, it is already one of the top three retail giants in the country. In combination with sales on the Internet, it can be said that the little prince has long been the hegemon of China's retail industry.

In addition to the self-operated O2O, The Little Prince is constantly attracting brand manufacturers to open its own brand flagship store on the Little Prince's website. Every Store on The Little Prince website ensures that the brand operates itself.

Moreover, the little prince is not only a genuine product for shopping, but also logistics delivery, which is not comparable to Taobao at this time. Taobao mainly relies on third-party logistics delivery, most of the goods, after consumers shop, after the online store is shipped, after logistics transportation and delivery, most of them are delivered in different places, and the time of arrival depends entirely on the character.

Most of the products of the Little Prince, after consumers shop, are directly delivered through the store's store, and local delivery is generally delivered to consumers within less than 24 hours.

It is also because the shopping experience is completely different, and the layout of the little prince is more advanced and more scientific and reasonable. In addition, it has become the first batch of e-commerce in China's e-commerce market not long after its e-commerce. It can be said that the little prince and even the predecessors of Taobao not only have the advantage of time, but also have full stamina in the business model, and it is difficult to see the bottleneck of development without adjustment.

In this time and space, the transaction volume of Taobao in this time and space only reached 60% of the scale of Taobao in the previous time and space, and it continued to burn money at a loss in terms of profit.

In contrast, the transaction volume of the little prince is no less than that of Taobao, and most of the orders are self-operated, and he can directly make money by selling products by himself, and he has not lost money every year since the beginning of his establishment.

It is precisely because of this that with Ma Yun's ability, he can't help but doubt that his Taobao has problems from time to time, whether he wants to learn to imitate the model of the little prince.

But the Little Prince's model is too expensive to imitate now. In essence, the main reason why the little prince has developed to this point is that the price of local products ten years ago was too cheap. Therefore, the little prince took the cash flow generated by offline supermarkets and online e-commerce to buy a large amount of real estate.

In recent years, just by hoarding land, he has directly bought commercial real estate and logistics warehousing worth more than 60 billion yuan. The market valuation is 60 billion for the property, and the little prince is actually borrowing power to take advantage of the delay of several months to pay the supplier, as well as the shopping money that consumers have pre-deposited on the Little Prince platform. This huge amount of cash is equivalent to an interest-free loan, which is occupied by the Little Prince Group for free.

In the early years, the real estate was bought cheaply, and the cost was only more than 10 billion yuan, so he took down the 60 billion yuan property belonging to the little prince's own property rights.

In this process, the little prince almost raised the land from the land. For example, buying and building commercial real estate in large quantities, and with the sharp rise in commercial real estate, selling a number of real estate projects can repay the due cash flow, but there are more property assets in hand.

Yes, in essence, the success of the little prince in his early years was not so much the advanced business model as the low-interest financing to buy real estate. As a result, real estate has only risen and risen, and the real estate in first-tier cities such as Beijing has risen nearly tenfold compared with the nineties. Real estate across the country, there are fast and slow, but without the real estate in that city, it has not risen for more than ten years. Moreover, the increase far exceeds the interest on bank loans.

Therefore, even if you borrow money from the bank to speculate in real estate, as long as you have the ability to borrow money, you can achieve unprecedented success in these years. Not to mention, the cost of the Little Prince's funds is cheaper than a bank loan.

In other words, this is an irreproducible success!

Even if Ma Yun and other opponents know the rise of the little prince, it is unlikely that real estate prices will return to the stage when they were so cheap ten years ago.

If you want to copy the experience of the little prince, then, most of them have to suffer losses, not make money! (To be continued.) )