What is the Good Business Model?(I)

  • The essence of the business model

In recent years, business model innovation has been on the rise, and any new approach is related to business models. For example: sharing economy, sharing bicycles, rural e-commerce, community services, and dimensionality reduction attacks.

The sharing economy is a very new business model and it represents the future trend:

The first is driven by technology.

Whether it’s Didi or the current shared bike, they all have a powerful information system. Many of the assets in its application: cars, drivers, and passengers, you will find that drivers are not belong to Didi themselves, all are contacted by the system; we are not familiar with drivers, and they are all matched by the system.

The second is on demand.

We used to buy a car and it was our own asset. Now, like the sharing bicycle, it is only when you need it, you will use it. This is also a new business model.

Although everyone is familiar with these phenomena and has heard many business model lessons, they are both familiar and unfamiliar with the business model. Because when our company is exploring and applying business models, it is easy to misunderstand. This is mainly because people don’t understand some core issues and logic behind the business model.

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Some Business Information From Asia

Recently years, there are some new information about global economic development. However, let us pay attention about Asia business tendency by this time. Some of main economic supports in Asia such as China Mainland, China HongKong Japan and Korea will be increased for its economy more or less.

 

China

According to trustful and reliable information from World Business (http://www.businessnews.cn/), releasing report from UBS Group AG and PWC together shows that in 2017 billionaires in China increased up to three hundred and seventy three. Over the same period, total wealth grew by 39% to $1 trillion and 120 billion. China’s billionaires entrepreneurs are leading the economic transformation of China and Asia as a whole. In just ten years, they have created some world-renowned companies, promoted the improvement of people’s living standards, and created wealth at an unprecedented rate.

 

New data showing In 2017, there were at least 199 new billionaires in the world, with total wealth rising 19% year-on-year as reaching to $8.9 trillion. The report also said that the number of Asian billionaires exceeds that of the United States, and their total wealth is expected to exceed that of the US billionaires sitting on $2.5 trillion in assets in three years.

Japan

General government accounting and taxation data released by Japan’s Ministry of Finance in the first half of 2018 (April-September) showed that the main tax items increased by 4.1% compared with the same period last year, amounting to 17.5052 trillion yen (about 1 trillion yuan). This figure ranked third in the first half of the year, reaching the highest level in the 27 years after the end of the bubble economy in 1991. The original budget estimate, which reached about 59.1 trillion yen in 2018, is likely to be revised up or to reach the 60 trillion yen threshold. Income tax reached to 8 trillion and 247 billion 300 million yen, an increase of 4.5%. The good performance of enterprises has become the main reason for the increase of wages and stock dividends of office workers. Consumption tax also increased by 2.4% to 4 trillion and 436 billion 400 million yen.

 

Corporate income tax increased by 32.4%. As a result of a large number of financial years up to the end of March, enterprises will be taxed according to the interim declaration thereafter, the amount is only 908.5 billion yen.

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Online and Offline Promotion

About online and offline, this is not strange words now. But whether you will understand its scheme and how to be good promotion of online and offline? Perhaps you will know it after I state online and offline respectively below,

Offline Promotion

At the first, we should know the initial targeted customers. Who are suitable for us to promote with saving cost.

  1. Small and micro enterprise credit clients
  2. Individual operator
  3. Middle-class workers such as white collar workers (with disposable income and higher education, and advanced consumption and financial management concepts)
  4. Retired old man
  5. Some college students (who are graduating, or graduated from college and want to start their own business).

 

If you have gotten the targets, then you may consider related conditions below,

  1. improve website access and registration.
  2. Creating a good corporate image for customers in the early stage of development is the most important thing in the early stage of development. The period of brand recognition is not only the period of brand recognition for customers, but also a period of cognition for enterprises themselves.
  3. Set up the entity’s customer experience store.
  4. Outdoor advertising, media advertising, bus advertising and so on are very important means of publicity.
  5. Publicity of public welfare activities.
  6. Membership activities. The registered members of the organizing platform carry out group activities and dress uniform (with a T-shirt or hat printed on LOGO).

 

Online Promotion

  1. User Online Experience: User Registration, User Center Design, Interactive Forum, Online Customer Service, Web Navigation and so on.
  2. We will vigorously develop social media such as Facebook, Twitter Linkin, related APP and other Internet media to further promote the understanding and trust of investors in our products, so that investors have a full understanding of the safety of our products and practicality.

 

The scheme of implements is also important to help your online promotion tendency to success. So we have to think about content optimization of website.

  1. Website usability: website usability design directly shows whether the website meets user needs.
  2. Website interaction: when a customer comes to the website through natural traffic, then keeping good interaction between customers and customers service is the direct way to increase loyalty and friendship. We may build online chat tool or email function through own website.

 

Please Reference for More Foreign Trade Information.

More Information may refer from Here.

 

The Elements Effecting the Development of E-commerce

  1. The industry and geographical development are uneven.

From the view of geographical distribution, e-commerce enterprises are mostly concentrated in economically developed regions, and based on the distribution of the industry, the proportion of the industrial sector is unsufficient, the proportion of the consumer goods industry is relatively high.

  1. SMEs’ perception of e-commerce is still shallow.

In China’s e-commerce market, the biggest problem currently exists is that SMEs have a low awareness of e-commerce. At present, only 42.6% of SMEs use e-commerce services, and there is a lot of room for development. Although under the influence of the financial crisis, some small and medium-sized enterprises began to realize the benefits of e-commerce and try to use e-commerce services, but most of the SMEs are still in a wait-and-see state, and their understanding of e-commerce is still shallow.

Therefore, both the government and enterprises need to do a good job in market cultivation, increase publicity, and do a good job in guiding and cultivating enterprises to participate in e-commerce, and enhance their confidence in e-commerce.

  1. Lacking e-commerce talents in SMEs.

At present, China’s e-commerce industry lacks experienced e-commerce talents, especially SMEs have great obstacles in absorbing talents. The promotion mode of e-commerce is different from the traditional mode of SMEs. SMEs have accustomed to the original traditional sales model, and need to change the original sales model when using e-commerce for promotion. Therefore, e-commerce operators need to help SMEs in talent development.

  1. Traditional industry and e-commerce are not very well integrated.

The rapid development of e-commerce is the most important change in the business field in the past two years, and it has also had an important impact on traditional commercial. In the future, these two commercial channels are converged or competing with each other, this is worthy of discussion by the industry. However, in the foreseeable future, the two channels will follow their respective logic. E-commerce covers a wide area, products can be put on the shelves indefinitely, reducing the rents of shops, warehousing and logistics, etc., and there are certain advantages in cost. The traditional offline resources can provide better design, better visual effects, enhance the shopping experience, increase consumer confidence, enhance brand value and so on. Competition is obviously not the result that the government wants to see, so it is very difficult to promote e-commerce to integrate with traditional industries.

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