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360 Chairman Zhou Hongyi: Internet Thinking Is Not A Panacea.

2014/2/13 11:27:00 5

Rules Of The Game Information Transparency Word Of Mouth Internet Economy

as an entrepreneur who has worked in the Internet for nearly twenty years, I think that traditional enterprises must understand the characteristics of the Internet economy, which is different from the traditional economy, so that we can better meet the challenges. If we compete in the Internet with traditional economic thinking, it is like shark climbing to land and fighting with a leopard. Therefore, the traditional enterprises ready to transform to the Internet must understand the following characteristics of the Internet economy. 
 first, customer first. .
 traditional enterprises emphasize "< a href=" //www.sjfzxm.com/pioneer/ > Customer < /a > (customer) is God. " This is a two-dimensional economic relationship, that is, businesses only provide services for paid people. However, in the Internet economy, if you use your product or service, it is God. Therefore, the belief in the Internet economy is that "users are God." On the Internet, many things not only do not require money, but also make quality particularly good, or even drop money to welcome people to use it. Recently, there were two cars calling software to play very well. The passengers ordered the software successfully. If you dare to give 5 passengers, I would dare to give 10 yuan. 
 many traditional enterprises can not understand the rules of the game, and think that the behavior of paying money is simply a madman. But the Internet economy is like this. If we can not converge large numbers of users, it will be very difficult to establish effective business models. Therefore, in the snatch of users, Internet Co is racking their brains, using eighteen Wu Yi, the development to the extreme is like calling car software to see who dares to smash money, see who throw more money. 
 traditional positive thinking to < a href= "//www.sjfzxm.com/pioneer/" > Internet domain < /a > will fail and suffer setbacks. For example, there was an e-mail war before 2002, when the 263 mailbox, which dominates the market, turned to charges. In fact, this is the traditional "customer is God" thinking. As a result, users have abandoned 263 mailboxes and turned to free NetEase mailboxes. Finally, the number of users of the 263 mailbox has dropped dramatically, and now it is hard to hear its voice on the market. 
 Second, experience is king. .
 you should know that the Internet age is an era of eliminating information asymmetry and an era of information transparency. In the Internet era, customers' consumption behavior has changed. In the traditional era without Internet, the relationship between businesses and consumers is based on asymmetric information. Popularly speaking, buying is not sold well. But after the Internet, the rules of the game changed. They can compare prices with mouse, and they can conveniently discuss each other on the Internet. Consumers are becoming more and more initiative and have more and more voice. The traditional marketing based on information asymmetry will be less effective, and in the Internet economy, the user experience of products will become more and more important. 
 today, all products are highly homogenous, but in the end, the decisive factor you can see is the user experience. 
 what is user experience? For example, when I open a bottle of mineral water, after drinking it, it is indeed mineral water. Is this experience? It's not called experience. Only by making one thing reach the ultimate goal is it beyond experience. For example, someone handed over a mineral water bottle, and I drank the Moutai which was 50 degrees. That's beyond my experience. Assuming that it really happens, I have to write a micro-blog, absolutely forwarding more than 500 times .
 in the Internet age, if your products or services are well done and well beyond their expectations, even if you don't throw in a penny of ads, consumers will be willing to share online, create free a href= "//www.sjfzxm.com/pioneer/" for you, advertise for you free of charge, and even become a social topic. 
 in the past, manufacturers sold products to customers and got the money. Manufacturers hoped that the users had better not look for themselves again. However, in this era of user experience, the product's experience journey is just beginning when the product of the manufacturer is delivered to the user. Today, more important than advertising and other marketing is how customers feel when they use your product. Apple Corp rarely advertise, but every time Apple phones produce new products, there will be a large number of customers repeat purchases. If your product is doing well in experience, users will perceive your existence every day when you use it, which means your product is producing value every day. 
 Third, free business mode. .
 the business model on the Internet is summed up in three ways. E-commerce, advertising and value-added services. But these three business models share a common premise: they must have a huge, free user base. On the Internet, only with a large user base as a foundation, a few percent of the pay rate can generate enough revenue to generate profits. 
 therefore, the Internet economy emphasizes that it is not how to get income, but how to get users. This is where traditional manufacturers tend to misread the Internet. When many manufacturers enter the Internet, they think about how to make money. They simply think that as long as they have the Internet technology and the Internet as distribution and promotion, < a href= "//www.sjfzxm.com/pioneer/" > platform > /a, success will come to pass. Such knowledge will surely lead to failure. 
 hardware is entering the era of free. But hardware free is not a white handed person, it means hardware sold at cost price, zero profit, and then relying on value-added services to make money. Why can Internet hardware not make money? That's because hardware is no longer the only link in a value chain, but rather becomes the first ring. Internet hardware such as TV, boxes, watches and so on, though not making money, has become a window for communication between Internet manufacturers and users. As long as this window exists, Internet vendors can create new value chains, and they can earn money through advertising, e-commerce, value-added services and so on. 
 the final result is that it will only produce hardware and hardware vendors. If it fails to learn internet thinking and its value chain is free of the Internet, it may only become an OEM, earning a meager profit, while the high value added value chain is being taken away by the provider of Internet information services. 
 this is not alarmist, it will not happen immediately, but we will see this trend in the next five years. 
 Fourth, subversive innovation. .
On the Internet, there are many subversive innovations, and P has also happened very quickly. It is not necessary to invent a secret recipe for Coca-Cola, or to make a great patent. Subversive innovations are increasingly appearing in two ways. One is the innovation of user experience, the other is the subversion of business mode. The business model is subversive. In the big words, you can make the cost very low, and even make the original charge free. I talked about Taobao, WeChat and 360. There are too many examples. Free business models, including Internet phones and Internet hardware, are very powerful. What is the innovation of user experience? It is also very simple. It is you who make a complicated past event very simple. 
 for consumers, you want to be a huge a href= "//www.sjfzxm.com/pioneer/" > consumer market < /a >. If we can lower the threshold, we have just talked about the threshold of money, one is the threshold of barriers to use. It can produce miraculous power. 
 if you want to evaluate Apple's success, let's do a very simple experiment. If you have a 3 year old child or a 70 year old parent, you give him an apple device and give him a traditional computer. 3 minutes, which one is easiest to use? I have studied many examples, and finally, why Apple can be overturned? Because human nature is the most basic thing: like simplicity, we are the laziest. There is another basic thing in human nature: like cheap. You need to make things cheap, or even free; making things so simple that you can touch people's hearts and win the users' anticipation and win the users. You win the user, and lay a solid foundation for your success. 
 a lot of times, from the user's point of view, starting from your side, observing your users, observing your supply chain, observing your upstream and downstream, you will find that there are still many complex problems that have not been simplified, and expensive items are not cheaper or even free. There must be a chance of subversion.