Reborn Entrepreneurial Giant

Qu Li came to Brazil for another reason. WeChat has an advantage in Spanish and Portuguese countries. In other words, it has a great advantage in South America, including Instagram. A host of football stars took to Instagram to share their lives during the World Cup.

Honor's drones, self-balancing vehicles, and smart watches have also become fashion favorites through Instagram, and their sales have soared in Europe, um, not South America.

In Brazil, the import tariff on consumer electronics products such as mobile phones, tablets and notebooks is 16%. In addition, there are industrial product taxes, social integration taxes, etc. An imported mobile phone may have a tax of about 60%. Samsung and Motorola are here It has been cultivated for many years, so the advantages are very obvious now.

At this time, Honor's executives discovered the value of Motorola. It turns out that their Brazilian factory and the supply chain established during the period still have such great value.

The sales of Honor and IPhone mobile phones in South America are basically through operators, and the prices are much higher than those of Samsung and Motorola. At present, flagship stores have only been established in a few large cities in South America, mainly to build brand image.

In addition to building factories in Brazil, you can also go to Argentina to build factories. They later stipulated that mobile phone manufacturers that sell in the country must ship parts to Argentina for assembly, which led to the withdrawal of Apple's IPhone from the Argentine market.

A simple example will show the complexity of the Latin American market. It is almost impossible for Honor to challenge Samsung and Motorola in the short term.

Qu Li went to South America this time and made multiple preparations. Whether to invest or not depends on the results of the inspection, and the feedback given so far is very bad. The World Cup did not promote Brazil's economy, but exacerbated the depreciation of the Brazilian real. In 2011, the US dollar was 1:1.5 against the real, and now it is 2.2. Next year, it fell below 3, and then fell to 1:5.

The situation in Argentina is even worse. It is about 1 to 8 now, and 1 to 278 ten years later. This complicated situation has created many difficulties for Glory to invest in South America.

"Most countries in South America are not suitable for investment..."

"..." Qu Li didn't know what to say, "What about Mexico?"

"Now that the U.S. dollar index is strengthening, there is a high probability that funds from Latin American countries will flow to the United States."

That is, the Mexican peso will depreciate? It’s no wonder that few people in Latin American countries become Forbes’ regular visitors. The resource countries with underdeveloped manufacturing industries often depreciate their currencies and rely heavily on imports. Inflation is almost inevitable. If income does not rise and prices rise, how can ordinary people accumulate wealth mainly from domestic sources? ?

In other words, ordinary people in Latin American countries have basically lost the possibility of class transition. At this time, beauty pageants and football stars have become the choices of many ordinary people, which is somewhat a hope.

The long-term depreciation of Latin American countries against the United States has made it difficult to invest here, but it is convenient for Jumei to carry out long-term purchases here. Not all commodities are denominated in US dollars. He purchases avocados in Latin America and ships them back to China. The price will be much cheaper. .

As for smartphones, first occupy Chile, Peru, and Mexico, establish an e-commerce procurement base in South America, prepare to build an automobile factory in Mexico, and establish a cross-border e-commerce base.

Although the Mexican peso will depreciate, their products enter the United States with zero tariffs. Cross-border sellers can use Mexico as a transit duty-free place. After the goods are delivered to the bonded warehouse in Mexico, American consumers place orders and then enter the United States in small packages. Duty-free customs clearance entry.

Therefore, Shopee established a North American site and has a bonded warehouse in Mexico. It seems that we still need to gradually increase investment in Mexico. As for the exchange rate loss, there are still ways to make up for it. Since we want to stick to long-termism, we will definitely not be overseas. Swindle.

From the perspective of Brazil's top executives, Qu Li is actually the leader of a big chaebol, similar to the Samsung Group in the Kimchi Country. They have arranged for relevant departments to connect with each other, and they may also hope to take him down. It’s a pity that Qu Li knows that now is not a good opportunity. Oil prices have fallen, commodity prices have fallen, and Brazil’s economic recession will become a foregone conclusion. At this time, entering the market is equivalent to buying PetroChina for 48 yuan a share. You chose the wrong time and lost money. will be laughed at.

After watching the German team win the World Cup, Qu Li flew back to Yangcheng and had some exchanges with Lu Qi. Shopee didn’t have to think about entering South America. It’s better to open up the Maritime Silk Road honestly and slowly develop Shopee. Amoy cross-border e-commerce is also an option.

Everyone still has doubts about how to do a good job in the overseas online shopping business, and no consensus has been reached. Is Shopee self-operated, or is it a platform for overseas sellers to operate themselves?

Shen Haoyu, CEO of Shopee, returned to Yangcheng from Singapore at this time, participated in the meeting, and proposed a self-operated "full trusteeship" model: "The merchant only needs to be responsible for the supply, and the rest is all taken care of by the platform... "

This idea is not new, they have discussed it for a long time, but the operation is very difficult, market forecasting, quality control, traffic guidance, logistics, after-sales service, etc., whether Shopee’s operating efficiency can cover the cost, they have changed from the drought and flood guarantee commission model to Maybe higher profits now, but also losses?

"Will the merchant agree?" After all, this will make them lose their autonomy, how to deal with various things such as product pricing and intellectual property rights?

"I have contacted nearly 30 sellers with sales at different levels on the Shopee platform, and nearly one-third of them are willing to accept the full hosting model." Shen Haoyu said

"What's the difference between this and the self-operated model?"

"We don't have to bear huge procurement costs, and the profit margin is slightly lower, but we can control the core links of e-commerce retail in our own hands, achieve "standardization" and "process", and continuously optimize costs and efficiency. At the same time, it also It can provide sellers with more traffic and orders, so that sellers can only focus on product supply..."

It looks beautiful, but the distribution of benefits is a big problem. Only factories can do this, and they are big factories with strength. Juhuasuan has just started "Jufactory". This step is not bad, but it is a bit ahead of schedule.

Although Shen Haoyu was eloquent, Qu Li was not satisfied, and finally stood up to classify some models of Jumeijuhuasuan and factory cooperation.

"Jumeiyoupin is OEM and ODM, both of which belong to the OEM model, and the brand belongs to the platform side; Jufactory should be C2M and M2C, which belongs to the factory store model, and the brand belongs to the factory..." Qu Li introduced in detail the ODM , OEM, C2M and M2C four factory models.

"Shopee can concentrate on C2M: organize production according to the needs of consumers, and cut off the intermediate links from production to final consumption as much as possible." Qu Li gave his plan to do full hosting on the basis of C2M.

"It will be more difficult to do this!" Shen Haoyu actually wanted to say that it will be more troublesome, and the quality control is very difficult, which will make them have a few more screening processes.

"Try it first!"