Millet chairman Lei Jun: Teach you to do new e-commerce

2023/8/15 16:23:49

    The rise of millet e-commerce is winning in the overall way of re-formulating ecological rules, forming a new overall structure never seen in the industry from the dimensions of sales model, e-commerce system construction, logistics system support, and social media operation. This is also why many opponents try to use millet mode to block millet, from some single point imitation, but all over the crux of the awkward.

Using systematic thinking to look at millet e-commerce this new thing, may be able to have some new understanding of the so-called "millet thinking" :

    First, the ultimate product "mix and match" strong peak bearing capacity

    First look at a millet network in 2011 e-commerce prototype experiment: in order to run the zero-start e-commerce system, millet co-founder Li Wanqiang discussed with the team to do a "millet kiosk", and specially bought a number of boxes of Coke from outside, ready to do online sales. At the beginning, some people suggested that one yuan a can, Li Wanqiang said, "to do it, do ruthless, ten cents!" Therefore, Li Wanqiang sent an internal email to encourage millet employees to place an order to grab Coke at lunch time, and arrange a special person to ask about the purchase experience at the reception.

    From this story, we can basically tease out some of the characteristics of the millet network model: First, the sale of explosive fist products, the price is attached to the cost, and the scarcity value is provided with high cost performance. The 500,000 mobile phones released in the first round of the rice fan Festival were sold out within 15 minutes, and Xiaomi mobile power (49 yuan /69 yuan price) became the first star accessories to break 100,000 sales; The second is centralized sales for a specific period of time, which requires a robust system that can access peak load shocks. The peak visit of the rice fan festival reached 15 million people, and the background second system was safe and sound, compared with the downtime of Yi Xun, Weibo and other platforms when cooperating with millet, which is enough to show that the peak carrying capacity of millet e-commerce has long been in the forefront.

    I got the news that the number of data center servers of millet network is less than 1000, compared with the huge machine scale of Ali, Jingdong and other giants, it is small and compact, but the unit investment is extremely high. This has been gradually built up over the past two and a half years with almost weekly peak shocks.

    Second, "JustInTime+" logistics system

    At 13:29 p.m. on April 8, SF Express delivered the first order of the rice Noodle Festival to a female user in Nanjing, and it only took more than 3 hours from ordering, delivery to proper investment.

Xiaomi is getting faster. At the beginning of the business, millet is shipped on-site in the purple rice conference room of the Roll Stone building, and the inventory turnover of the first one or two months is 30 days. Since then, Millet has quickly rolled out the construction of the national logistics and after-sales system. So far, 10 warehousing and logistics centers have been opened in the country, the team size has expanded from 400 people to 1,500 people, it is said that the inventory cycle time has gradually shortened to 7 days, and the same city speed matching service can basically do 48 hours to the door, which basically built the logistics distribution network to support the rise of millet e-commerce.

    In fact, Xiaomi's logistics system borrowed Toyota's JIT (just-in-time production) model from the beginning to create a set of agile production systems that strive to minimize inventory. However, the unique feature of Xiaomi's model is that its online play reduces the increasing intermediate channel links, greatly reduces the return time of terminal demand data, and thus develops a high-speed supply chain play: The pre-sale order data is collected one week in advance, and the production level of the next week is formulated according to the sales volume, Baidu index, forum and Weibo topic popularity index of the current week, that is, the production volume of the week is the sales volume of the next week, and the goods are sent out immediately after arriving at the warehouse, and the whole process is close to zero inventory.

    This "JustInTime+" model requires strong system docking capabilities, as well as agile production and accurate distribution capabilities. For example, Xiaomi's sales department will pass on the overall order information to the foundry on a monthly and weekly basis, but it will certainly adjust the production schedule in real time every day. The Xiaomi logistics operation center will docking upstream foundry and downstream logistics distribution providers in real time, the vehicle is kept outside the workshop, the shipment is loaded, and the warehouse is shipped, so as to maximize the logistics delivery capacity and minimize the inventory backlog.


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