How did Dangdang do it?
As long as you are good at thinking, you will understand that many thoughts are actually hidden in your mind. As long as you are good at stimulating and using, you can generate countless sparks. For example, the idea of Dangdang.com originated from a plate of salted duck eggs
Men dominate the outside and women dominate the inside. It should be standard between husband and wife. However, Li Guoqing and Yu Yu just fell out. As two co-presidents of Dangdang.com, an online bookstore, Li Guoqing, the husband, is fully responsible for the company's internal management, while Yu Yu, the wife, is mainly responsible for the capital market. Therefore, "Dangdang is our child!" Li Guoqing's sentence has been widely recognized.
Now, the Dangdang.com of Li Guoqing and his wife has gone through five years. Surprisingly, the sales volume of Dangdang is comparable to that of Xidan Book Building. What's more surprising is that Dangdang maintains an annual growth rate of 80%, while traditional bookstores grow at an annual growth rate of 5% at most. With rapid development, Dangdang has been built into the world's largest online Chinese book audiovisual city in just five years, accounting for 9% of the book varieties in the mainland book market. Li Guoqing also realized the transformation from a bookseller to a "digital hero".
90000 books almost hit my hand
"Li Guoqing is going to the sea." This news has caused a great response in the Rural Policy Research Office of the Ministry of Agriculture. A kind leader and some elders who care about him have come to persuade you that you have done a good job and have a good foundation. You should continue to learn and do research. Because, in their eyes, this young man from the Development Research Center of the State Council has the talent and ability.
In fact, Li Guoqing himself did not want to do learning and research. As the vice chairman of the Student Union of Peking University, Li Guoqing graduated from the Department of Sociology of Peking University and entered the Development Research Center of the State Council, the most popular government agency at that time. It is known as the "think tank" of China's development policy. At the Development Research Center of the State Council, Li Guoqing found a sense of achievement - part of his survey report was quoted to the leaders of the State Council. This made him very proud. However, after the restructuring of the organization, Li Guoqing was assigned to the Rural Policy Research Office of the Ministry of Agriculture, where the working environment of the organization made him very uncomfortable. After several years of work experience, Li Guoqing felt that policy research is to study the interests of all? It is not learning at all. It is too far to achieve political participation through policy research, and it is too slow to change society through think tank research. So he chose to leave. Li Guoqing told the reporter: "At that time, I wanted to be an official, but I didn't like to endure years. Go to a big company, and I didn't want to listen to others. At that time, I wanted to do something I wanted to do, because only you do it yourself, you can say something you want to say, do something you want to do, and be your own boss, which may make a great contribution to society."
Li Guoqing once sold books for others, and knew that it was a small business. So he began to think of books. However, publishing books also requires funds. Li Guoqing did not save much money after sitting in the office for many years. Finally, his parents gave him 6000 yuan of savings. At that time, Li Guoqing rented a basement and wanted to work with several colleagues and friends. However, his colleagues and friends who had promised to support his entrepreneurship had all backed out at this time. Later, Li Guoqing's sister couldn't bear it and reluctantly came to help her brother with his affairs. In this way, Li Guoqing hired several retired editors and printers, and the company opened.
Li Guoqing's first book sale was a set of 9 inspirational books. At that time, he was so confident that he printed 100000 copies in one breath. However, the agent came and reluctantly agreed to take 10000 copies after reading the book. The 90000 copies fell into the hands of Li Guoqing. When all the expenses were added up, he was suddenly saddled with a debt of 1 million yuan. Many people think that Li Guoqing is over now. However, Li Guoqing did not admit defeat. He carefully analyzed the market. With so many people in the country, couldn't he find 90000 readers? Li Guoqing took the initiative of student activities at Peking University and organized a "reading and essay solicitation" activity. He contacted the magazine as the organizer of the activity and invited social celebrities as judges. In a year and a half, nearly all of the 90000 books that fell into the hands were sold. This time, the "tuition" was not paid in vain. Li Guoqing had a clear understanding of the domestic book industry.
A plate of salted duck eggs evolved into Dangdang net
One day in 1996, Li Guoqing received a phone call: "Hey, are you finished when you pick someone up?" He just remembered that he once had an appointment with an expert who was familiar with the laws of American investment. This expert is Yu Yu. Yu Yu called Li Guoqing the first thing after getting off the plane. This phone call made Li Guoqing and Yu Yu's first date.
In the evening, Li Guoqing took Yu Yu to a small restaurant in the snack street near Peking University and asked Yu Yu, "What do you want to eat?" Yu Yu said, "Salted duck eggs." "Do you like it very much?" "Yes, and especially like egg yolk." So, Li Guoqing said to the aunt who ordered the dishes, "Today is the fate of my young man. Please try to help me get a plate of salted duck eggs." The aunt winked at Li Guoqing and said, "OK, I'll find it for you." Finally, the aunt ran to three stores and got a plate of salted duck eggs.
Before eating salted duck eggs together this time, Li Guoqing and Yu Yu didn't know each other for a few days. However, Yu Yu did leave a deep impression on him. At that time, Li Guoqing, together with Peking University, the Chinese Academy of Social Sciences and the Ministry of Agriculture, founded the Beijing Kewen Economic and Trade Corporation. He served as the general manager and president. For Li Guoqing, the profit of several million yuan per year should be small. However, a friend said to him, "Although your company has millions of profits every year, it is not as good as the salary of Americans for a year." Li Guoqing was so angry that he went to the United States to see how they do business?
In the United States, Li Guoqing really felt how weak his company was. Because it is really worthless to value our company according to the profit and growth rate based on the American algorithm. Moreover, Americans also have a specific name for his identity - small owner, which means entrepreneurial entrepreneur. Although the business scale is small, he is the founder and owner of the company. Li Guoqing was in the mood that it would be better to be the chief representative of China for a large American company. Taking the opportunity of coming to the United States, Li Guoqing began to contact some investors.
Once, at a gathering of friends in New York, Li Guoqing met Yu Yu through an introduction. At that time, Yu Yu founded TRIPOD International in New York, specializing in financial advisory services. She told Li Guoqing how to attract enterprise investment, and she said five points in total. Li Guoqing, like a student, also wrote down on paper. Now, he still keeps these records. Among them, Yu Yu warned him that "money is not the most important thing, but the main thing is control." So Li Guoqing sent an invitation to Yu Yu to consult his company. So Yu Yufei returned to Beijing. Shortly after eating the salted duck eggs, two people in their 30s who "appreciate each other's talents, are also very mature, and have done many unit exercises in love" got married. It only took them three months to meet and get married.
Li Guoqing brought back not only a bride from the United States, but also an online bookstore "Amazon" model. Li Guoqing immediately realized the mystery of online bookstores: the most valuable thing about books is the direct connection between publishers and readers, and Amazon has achieved this connection through the network. Using the existing resources of the publishing industry, Li Guoqing first thought of establishing a Chinese "Amazon". So Li Guoqing and Yu Yu founded Dangdang online bookstore. Li Guoqing told reporters: "I chose the Internet because it is too special. I have run a traditional enterprise for eight years, including taxi companies, advertising companies and audio and video companies, but no industry has seen orders grow as fast as Dangdang, with an annual growth rate of 200% to 300%, and that of traditional enterprises is 5% to 10%. Dangdang now has an annual growth rate of more than 180%."
Your own children or your own management
At 9:00 p.m. on August 19, 2004, American e-commerce giant Amazon offered $75 million to acquire Excellence. After the transaction is completed, Amazon will account for 80% of the shares of Excellence. According to the original acquisition plan, Amazon chose to purchase Dangdang and Excellence. However, Dangdang rejected Amazon's acquisition.
In fact, people who know Li Guoqing have long predicted that he will not surrender pawn to others. On October 28, 2003, an e-mail entitled "My thanks and tenure" was sent to the mailbox of Dangdang employees and some shareholders. This is Li Guoqing's resignation letter, which said: "Because the two shareholders of the board of directors misled and bullied me on the venture equity, I had to choose to resign. At this moment, I am filled with emotion. What I miss most is not the equity of Dangdang, but the colleagues who fought with me! My choice will make you uneasy. But I can say responsibly: Welcome to join the new e-commerce company I will establish."
It turns out that in addition to Li Guoqing and his wife, Dangdang also has several shareholders such as IDG Venture Capital Fund, China Venture Capital Fund (formerly Softbank China Venture Capital Fund) and Luxembourg Asia Holding Company. In June 2003, Li Guoqing proposed that shareholders should reward entrepreneurial shares, hoping to give half of the value-added part to the management team as a reward. However, this requirement was opposed by shareholders on the grounds that the asking price was too high. Li Guoqing realized that although he was the founder of Dangdang.com, he was still a hired worker in the view of shareholders. There was no progress in this stalemate. Li Guoqing met Tiger Science and Technology Fund in August. When he took Tiger Technology Fund's valuation of US $65 million as proof again, he hoped that shareholders would give entrepreneurial stock awards, and the attitude of shareholders remained firm. Therefore, Li Guoqing proposed to resign and break up amicably, meaning to cash in and leave.
However, Li Guoqing was still reluctant to give up his pawn. His trip to the United States also brought a turnaround to the deadlock. Tiger Technology Fund, one of the largest venture capital companies in the world, plans to invest in Dangdang and negotiate with the old shareholders of Dangdang. Finally, the three parties reached an agreement, and Tiger Technology Fund came forward to buy some shares from the old shareholders, and then gave them to the management team. On the last day of December 2003, the financing agreement was officially signed, and the three parties gained their respective interests. That is to say, the final result was that Dangdang was valued at 70 million US dollars, Tiger Technology Fund invested 11 million US dollars, the management of Dangdang obtained 51% of the absolute control right, and the old shareholders obtained partial realization and released some shares. Li Guoqing won the capital duel with his courage, intelligence and strength.
At the beginning of this year, when Amazon Vice President Bezos visited China and contacted Dangdang, he issued the condition of full control. This naturally made Li Guoqing difficult to accept. He said: "Amazon is welcome to take a stake in Dangdang, but it must not be fully controlled. Because I am not optimistic about the wholly owned subsidiaries of foreign companies, the cooperation between AOL and Lenovo broke up in a bad way, which itself proves this. On the contrary, some local companies represented by Sina and Ctrip have developed very smoothly because they are familiar with and understand the Chinese market." Up to now, Li Guoqing still believes that his judgment is correct. Because the latest sales statistics of Dangdang in the third quarter show that Dangdang achieved quarterly profit.
Li Guoqing told the reporter: "The success of Dangdang in the past five years is to make low prices. The cheapest one will sell the best, the best one will sell at a small profit and sell quickly, the capital turnover will be fast, the sufficient capital will purchase a large amount, the discount will be low, the scale benefit will be good, forming a virtuous circle and forming the basis of low prices. So the next step is to continue to expand the scale and price advantage, which is also the business idea we will always adhere to in the future."
(This article is an original article by Zhuge Changqing, and the pictures are selected from the Internet. Welcome to forward it, and please indicate the source for forwarding)
Introduction to Zhuge Changqing: Zhuge Changqing, the inheritor and promoter of traditional Chinese culture, is willing to "learn from sages, promote virtue, revitalize China and benefit the world" together with people with the same ideals in the world.
(Zhuge Changqing: email@example.com ）
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Selected Articles in Previous Periods
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1The wisdom of traditional Chinese culture changes the destiny: filial piety to parents+five in one+self-improvement
2Zhuge Changqing's Three Golden Keys to Changing Destiny
3Zhuge Changqing's Greeting Ritual (15 Steps Concise Version)
3 诸葛长青施食仪轨 （十五步简洁版）
4How to repent: the ritual of repentance and the method of repentance (full version)
5How to read the Dizang Sutra: Methods for reciting Dizang Sutra (complete version)
6How to release? The ritual of releasing life
7Zhuge Changqing's Repentance Culture: A Case Study of Repentance Methods for Changing Destiny
8Free Life Culture: Free Life Culture in Ancient China
9Shocking photo of feeding: Buddha, Bodhisattva and Dharma Protector come to the scene
10Feeding Rite Return: the return is changed to simple return