NewPay has established a subsidiary in China to focus on electronic confirmation of cross-border e-commerce.
This is the business model mentioned by Zhou Xin and Jack Ma at previous Internet conferences. Customers use NewPay accounts to deposit payment in NewPay’s virtual account, and the payment will be settled after the goods are settled.
This approach has helped Alibaba dominate China's B2B e-commerce market without any rivals. Because China’s largest foreign trade target is Amerikan, NewPay has strong credibility in both Amerikan and China. The Chinese people do it out of their trust in Zhou Xin, and the Amerikan people do it out of their trust in NewPay. trust.
NewPay can operate to this day and there is absolutely no problem with its credibility. For Amerikan's foreign trade companies, they are even eager for NewPay to freeze funds due to illegal operations, so that they can use legal means to make severe claims from NewPay. Such claims are usually in units of at least tens of millions of dollars.
NewPay is essentially a Chinese company with Americen Capital behind it. The actual control is firmly in the hands of Zhou Xin. Americen's judicial body will not favor NewPay when making judgments.
Later giants such as Google, Apple, and FB also had European capital holdings behind them, but they were still subject to European antitrust prosecutions and faced huge fines every year.
Compared with NetEase and Sohu, Alibaba actually enjoyed the dividends brought by the resources behind Zhou Xin. In the initial stage, among a large number of B2B cross-border e-commerce companies across the country, only Alibaba was able to obtain electronic confirmation support from NewPay. .
Compared with Tencent, it is a bit lackluster. Even without Alibaba, NewPay would still do this, just with a different partner.
Moreover, NewPay’s electronic confirmation currently only supports Amerikan’s cross-border business. Due to the different implementation levels of electronic payment in various countries, the degree of business support for other regions around the world is extremely limited.
However, NewPay cannot be rolled out in other countries, not only because of legal and regulatory issues. For example, in Korea, Korea formulated an electronic trade agreement in 2001, which clearly stated that it supports electronic financial transactions.
NewPay wanted to use this as an opportunity to enter the Korean market, but no matter how much lobbying was done, the Korean government refused to open the license to NewPay.
Korea's local enterprise protection policy is not weaker than that of China. The mainstream electronic payment software in most other countries is PayPal, while Korea uses kakao Pay.
In this context, Alibaba and Jackma hope to obtain more resource support from Zhou Xin.
“I think online Wal-Mart can be left to Alibaba, with Tencent responsible for the enterprise QQ business and Alibaba responsible for the online supermarket business.
China and Amerikan have very different infrastructure environments in many aspects. An online supermarket can be built in Amerikan, but it will definitely not be possible in China.
The domestic supermarket industry, let alone giants, cannot even concentrate on a few supermarket brands in one province. Every city has local supermarkets and provincial supermarkets, and first- and second-tier cities also have national supermarket brands and foreign-funded supermarkets.
This results in huge operating costs in the country, because you have to negotiate with supermarkets of different brands separately. In addition, the lack of electronic payment support in the country is also a big problem. Users have not even developed the habit of online shopping, so they want to use supermarket shopping. It is unrealistic to change the habit from offline to online. "
Jack Ma undoubtedly has a very keen sense of smell in this regard. He achieved a monopoly in B2B in later generations and was able to shift to C2C business on a large scale. When Taobao was at its peak, he was able to persist in building Alibaba Cloud. His vision and sense of smell are absolutely top-notch.
Let’s not talk about Alipay. This is a track where anyone with a discerning eye can see the future. C2C businesses such as Taobao and Alibaba Cloud did not have very successful cases at home and abroad at that time. Foreign eBay is also a C2C model, but its commercial value is obviously not as good as B2C Amazon.
"America is completely different. Large, medium and small supermarkets all have chain brands, because chain brands can purchase on a large scale and gain the initiative to bargain in the supply chain. This has also led to online supermarkets only All you need to do is talk to the headquarters. After negotiating a supermarket brand, it can radiate to a large area.
I have carefully studied Zhou Xin's top-level design of all Internet products. His consideration is never the product itself, but he hopes to achieve many purposes with the help of the product.
If I were asked to go to Americen to build an online supermarket, even if I was just a service provider, helping Wal-Mart and Carrefour build systems, and Alibaba was just doing this kind of outsourced system development work, I would still be able to find the value we can realize.
That is data. We can get the sales data of Americen's products in each region, and then find benchmarking products in the country, help domestic manufacturing companies connect with Americen's supermarkets, and help domestic products be sold to Americen. .
Building a system may seem worthless, but the data obtained behind it is very valuable. Moreover, domestic products lack exposure and opportunities to be seen by foreign countries. As an intermediary, we give them this opportunity. Domestic companies will reduce the cost There are natural advantages in control.
Joey, you and I have visited many foreign trade companies in the Yangtze River Delta region. When you were in the Lion City two years ago, could you have imagined that the original price of goods in the Yangtze River Delta could be so low?
And the biggest pending benefit for the entire foreign trade industry this year is whether China can successfully join the WTO this year. According to my colleagues at the Ministry of Foreign Trade and Economic Cooperation, the probability of joining the WTO this year is at least 70%. "
Tsai Chongxin also seemed very excited. Alibaba's main business is B2B e-commerce. To put it bluntly, it helps China's small and medium-sized manufacturing companies find foreign customers and help them sell their products. Tsai Chongxin understands that joining the WTO will have a negative impact on the domestic foreign trade industry. What it means is that the domestic manufacturing industry can form a scale effect.
If you look higher, you will know that Chinese companies have opportunities to grow bigger, which means they will have extra profits to invest in research and development in the future.
Tsai Chongxin said: "Jack, our business model is very clear. We only need to stabilize our current number one position in the B2B field, and then rely on China's accession to the WTO to go public on Nasdaq or Hong Kong. Newman has Alibaba in his hands." 40% of the shares, which is particularly beneficial to us when we go public.
Overseas investors will go crazy when they see the name Newman. They will lose their minds. Regardless of our business model and business form, as long as there are no obvious loopholes in the financial statements, it will be easy to find investors willing to buy Alibaba stocks. .
I feel that your mentality has changed after seeing Tencent's success in going overseas. In fact, Tencent and ours have completely different business forms. Newman did not leave the online supermarket shopping business to Tencent. Tencent's overseas operations are only limited. on instant messaging software.
Let’s lay a solid foundation first. We will definitely have the opportunity to go overseas in the future. Now our annual profit is only US$10 million. With this kind of money, we can’t make any splash in Silicon Valley. "
Cai Chongxin and Jack Ma have also worked together for three years. They have a very good relationship. Jack Ma will only listen to some words that Cai Chongxin says.
Tsai Chongxin gave up his annual salary of 5 million RMB and got a monthly salary of 500 RMB from Alibaba. This was a great encouragement to Jack Ma. From the moment Cai Chongxin agreed to have sex with him, Jack Ma quickly remembered an allusion in his mind, Lu Buwei's rare goods can live in.
Judging from the results, Alibaba's growth rate has not disappointed Tsai Chongxin. In just over a year, it has become the leader of B2B e-commerce in China, widening the essential gap with other e-commerce platforms.
Tsai Chongxin said seriously: "At the end of 1999, when I, you, Peng Lei and Zhang Ying were discussing in the conference room, no one could find our core competitiveness.
If it is just an intermediary, why should merchants choose Alibaba?
At that time, we disbanded all the teams outside Hangzhou and successfully obtained investment from Newman. NewPay’s electronic confirmation helped Alibaba find its core competitiveness.
We survived the Nasdaq storm and did well. Pony is just Southern Weekly, but you were on the cover of Forbes last year, and you must know that it is the global version of Forbes magazine.
You are the first Chinese-born entrepreneur to appear on the cover of Forbes in 50 years.
Alibaba is not bad. What we need to do now is not to expand blindly or expand our business to America. We don’t have the strength now.
I do not deny that going to America and going to sea can bring us excess returns and unimaginable benefits, but not now.
Now we need to find a way to survive without Newman and Alibaba.
I mean, if NewPay’s electronic confirmation is open to other B2B e-commerce platforms in the future, what will be Alibaba’s core competitiveness?
If NewPay’s electronic confirmation function is closed to Alibaba and opened to other platforms, how will Alibaba survive? "
Tsai Chongxin's words were very sharp, going straight to the point, and almost touched on Jack Ma's thoughts.
Jack Ma said: "Your worries are also my worries. Alibaba's senior management team has told me this issue on different occasions and at different times, that is, once Zhou Xin moves to another relationship, he will no longer favor Alibaba. , what should we do?
I asked Peng Lei to also study other electronic payment software of Amerikan, such as Square, Amazon Pay and eBay Payment. None of these payment software can replace NewPay's status.
First of all, let’s not discuss whether these American electronic payment software will cooperate with Alibaba to engage in the thankless electronic confirmation business. Even if they are willing to cooperate with us, their reputation, user coverage, and domestic enterprise recognition will not be sufficient. It is completely incomparable to NewPay.
And in the foreseeable future, the gap between these electronic payment software will only be widened by NewPay.
As for making our own payment software? This is unrealistic. Neither Amazon nor eBay has achieved very good results. Alibaba is going to Amerikan to do electronic payments. This is simply unrealistic.
So I want to start an online supermarket with Amerikan, which is also based on this consideration.
If NewPay does not support Alibaba, then we can use online supermarket data to create transaction opportunities for small and medium-sized enterprises in China. Data and relationships will become Alibaba's second leg.
NewPay will always cooperate with Alibaba in the future. We have a good cooperative relationship, so there is no problem. This will not affect our ability to operate an online supermarket.
Let me talk about my thoughts. Americen’s supermarkets have a wide variety of products. Except for agricultural products that are unrealistic for export to China, almost all other products can be exported to China.
Originally, the ex-factory price of products from Eastern Europe, Neon, and Korea was US$10, while Chinese products only cost US$1. Even if the ex-factory price of Chinese products was US$1, Chinese companies still made 70% of the profits, which means that their The cost is only $0.30.
After we facilitate the transaction, we charge fees from the transaction between the Chinese enterprise and the purchaser of Americen. We adopt a commission system. The ex-factory price of the Chinese enterprise is US$1, so we take 10% of the commission.
This is a win-win-win situation. American supermarkets and consumers get cheap goods, Chinese companies get export opportunities, and we also find a new source of profit. "
There are very few win-win situations in the world. Who are the losers in Jack Ma’s vision? The original suppliers of Amerikan Supermarket are companies from Korea, Neon, and Eastern Europe.
In later generations, China is known as the crusher of developed countries. In fact, China has not yet reached the level of a crusher of developed countries. The first countries that China crushes are definitely developing countries, because they are the main competitors in the mid- to low-end manufacturing industry.
When the developing countries are almost done, it will be the turn of the two brothers Neon and Korea.
Jackma continued: “We originally acted as a middleman to facilitate the transaction, and we were originally a passive facilitator.
We only help companies put information online, establish membership mechanisms, and find NewPay to empower transactions with credibility. These are all passive mechanism construction tasks. We have built the Alibaba platform.
What we need to do next is to more proactively promote the connection between foreign demand parties and domestic manufacturing.
Alibaba's future definitely lies in this. "
Tsai Chongxin realized that Jack Ma’s method may not be unfeasible.
Jackma continued: “We also build online shopping websites overseas, and there is still a lot of similar demand overseas.
They can't do all the business by themselves. I plan to have a chat with Zhou Xin, hoping to get support from him. If he doesn't support it, we will go out and do it ourselves.
In fact, the cost will not be very high. We only need a sales team and a system deployment team to go to Americen. This does not require many people, and the development is still in China.
Compared with Silicon Valley, domestic software development engineers are much cheaper.
Tencent can put research and development in China, why can't we put development in China?
So the cost is not as high as you think.
And if we find a project, the project itself will also bring us benefits.
I am now more and more aware of the importance of data. It is not enough for enterprises to develop informatization. Data-driven technology has a longer-term future. "
At almost the same time, Tencent rented a floor in Silicon Valley as an office area. Zhou Xin was chatting with Pony Ma: "The future development path of enterprise QQ must be digitalization.
Enterprise QQ needs to do business intelligence to bring greater value to consumer companies from the data level. "
It’s so sluggish, it’s only 4k today.
The recent chapters belong to the marginal influence brought by Mphone. After writing these, I plan to write about pretentiousness in academia.
(End of chapter)
