behind Ma Yun's 2 billion yuan Logistics: building the next China Post
2015-07-24 Read 932

Because of this, less than a month after he announced his resignation, Ma Yun appeared in a blue Tai Chi suit at the "China intelligent backbone network" press conference in Shenzhen. In addition to the local senior officials, Guo Guangchang, chairman of Fuxing Group, Zhang Guobiao, chairman of Fuchun group, and the director of "three links and one Da", who can almost monopolize China express logistics, attended the conference with him Long and high. Lu Zhaoxi, Alibaba's new CEO, can only sit on the edge.

"there are about 25 million packages per day in China now, and it is estimated that there will be 200 million packages per day in 10 years. Today, China's logistics system can not support the 200 million packages in the future. So we have a bold idea, through the construction of China's intelligent backbone network (CSN), so that 2000 cities in China, anywhere, as long as you shop online, goods will be delivered to your home 24 hours a day. " Ma Yun expounded the objectives of the new project.

China's intelligent backbone network, understood only by name, seems to be a more suitable thing for one or several ministries and commissions of the country.

Alibaba's confidence in changing China's logistics lies in the fact that its logistics packages account for more than 60% of China's total logistics. This newly established company is called rookie Network Technology Co., Ltd. (hereinafter referred to as rookie network), which is called "local network" internally by Alibaba. It will invest 300 billion yuan to build a super large-scale logistics infrastructure network throughout China in the next eight to ten years, mobilize the transportation potential of ports, highways and airports, and form an annual network retail volume of about 100 billion yuan, which can be realized in 24 hours Delivery logistics network. The corresponding is "Skynet", which is Alibaba's internal data management system for warehousing and logistics services in the form of Internet.

Ma Yun is the chairman of the new company, Shen Guojun, the former chairman of Yintai group, is the general manager. Tmall invested 2.15 billion yuan, accounting for 43% of the shares. Yintai Group invested 1.6 billion yuan, accounting for 32% of the shares through Beijing Guojun investment. Fuchun group and Shanghai Fuxing Group invested 500 million yuan, accounting for 10% of the shares respectively. Yuantong, Shentong, Zhongtong, Yunda and Shunfeng invested 50 million yuan, accounting for 1% of the shares respectively.
this stock map of China's logistics industry reveals Ma Yun's ultimate dream: to fight with traditional retail to gain more living space. According to Ma, 18% of China's GDP comes from logistics, compared with 12% in developed countries. The core of the competition between e-commerce and traditional retail is cost control. The reduction of logistics cost is a key link for e-commerce to fight against retail in the future. In other words, logistics is the "Normandy" of the battle between e-commerce and traditional retail.

one of the reasons for the rise of its competitor Jingdong Mall is that self built logistics has greatly improved the service quality of e-commerce platform, which is the biggest weakness of Alibaba model. "This is what we have been hoping to do for four or five years, but it's a pity that I officially implemented such a large project after I was not the CEO." Ma said.

previously, Ma Yun had a long-term attempt on logistics, and frequently took action. In December 2007, Ma Yun founded Baishi logistics with gou Taiming; in early 2010, he took a stake in Xingchen Express; in July of the same year, Baishi logistics acquired 70% of Huitong Express; in September 2010, Taobao established four distribution centers in Beijing, Shanghai, Guangzhou and Chengdu, and regional distribution centers in other 20 provinces and cities.

this time, Ma Yun's ambition is no longer just a logistics company.

"eight military regions"

Alibaba has repeatedly stressed that rookie network does not want to grab the jobs of express companies, but hopes to establish a platform that can benefit all logistics companies and open up China's logistics network through cooperation and market economy. "When the logistics network grows up, it may affect the business model of all express companies today. What we thought was right may be wrong, because it is completely based on the Internet." Ma Yun? Said.

Internet thinking refers more to Alibaba's big data that has not been fully exploited. Alipay has established a small and micro loan financial system by relying on the credit records formed by buyers and sellers in the transaction. Previously, Alibaba's "Tianwang" was also engaged in mining big data generated by internal transactions. The core of rookie network is to mine the third-party data on Alibaba trading platform, such as the data of logistics companies.

Tong Wenhong, vice president of Alibaba, also told reporters that the 300 billion yuan will be mainly spent on two aspects: one is to build a physical storage network of more than 2000 cities in China offline; the other is to operate with internet thinking. She repeatedly stressed that this network not only contains systems, applications and investments, but also is not a traditional storage. The real thing behind it is the network data effect.

it's not difficult to understand the logic. Alibaba doesn't specialize in logistics, express delivery and traditional warehousing. Its real specialty is to do things related to the Internet. What's the difference between rookie network and traditional logistics company under Internet thinking operation?
Li Junling, vice president of Alibaba, said: "a large number of entity companies have their own warehouse facilities. The" ground network "is to integrate the entity information that did not enter Alibaba to make greater data integration, so as to make the data flow effectively." He uses Taobao as an analogy: Taobao is a typical example of connecting the sellers who originally competed independently to form the largest data concentration, thus forming the largest new market. Now Alibaba hopes to make the originally independent logistics information flow.

Shen Guojun, CEO of rookie network, has a different definition of the warehouse in the physical storage network: "the requirements, standards and product contents we build are different from those of logistics companies. There are also investment in content, technology, data integration and so on. Maybe in the end, we will extend it to some industrial parks, such as C2B base, and also drive some young people to start businesses. Maybe we will become a new economic engine for a place or a region. "

however, in addition to determining the location of the warehouse, as the CEO, he can not even clearly explain the business model of rookie network.

Li Junling has a similar puzzle: "we don't know how to make money under this system." But he thinks, "who can make money? Maybe it's companies that do basic platforms and find business opportunities through interconnection. That group of people are a large number of private rookies. Who are more innovative, dare to deny their previous success, dare to find business opportunities in a new market, and make profits first?"

for the warehouse construction, rookie network has both self construction and cooperation, and the substantive action is to buy land. "Starting with land acquisition, it's obvious that the government wants the driving effect of our network, so let's start with this." Tong Wenhong said, "from the perspective of cities, at present, Guangzhou, Shenzhen, Tianjin, Beijing Shunyi are all talking, as well as Wuhan and Chengdu."

the layout of more than 2000 cities is not easy. Only the site selection criteria need to consider multiple factors, such as transportation infrastructure construction, buyer demand, integration of logistics companies, etc. Ali has also had many rounds of internal discussions. Tong Wenhong revealed that "when the national logistics network was first conceived, it was based on the concept of the eight military regions of our army for regional distribution."
Alibaba's idea is to set up the backbone network in these eight cities first, and other distribution points may be in a certain area. "In addition to the eight network military regions, our own team is also investigating to see where the industrial belt is more abundant and where the consumer group is more suitable for the business to be done." Tong Wenhong said.

benefit integration

the problem that rookie network needs to face is not only the unclear business model, but also to some extent, it will leverage the existing logistics pattern in China, and the difficulty can be imagined. According to Ma Yun's business vision, this is a big plan to completely change China's logistics. It may be the next "China Post" and "China's Ministry of Railways".

but the success or failure of the amazing plan still lies in how to integrate various interest groups. United Express alone is not easy. Each express company has its own complete storage, distribution center and information network. Chen Dejun, chairman of Shentong and one of the shareholders of rookie network, said publicly that he would not share the warehouse with Alibaba. Data platform is the business core of logistics companies, and the integration of interests has become one of Alibaba's problems.

the integration of Alibaba "Skynet" has caused dissatisfaction and resistance from many ERP solution service providers.

at the beginning of this year, all ERP service providers for platform e-commerce received a plan called "jushita" from Alibaba. This plan requires that all enterprises that do ERP for Alibaba platform sellers need to standardize the interface and upload data and technical structure to "Alibaba cloud". The so-called e-commerce ERP actually helps the big sellers on the platform to do the warehouse management system, and it is also the data docking of the front end of the rookie network.

"Ali directly coerces service providers to enter its own ERP data platform, and the interfaces will be limited because of whether to join" jushita "and" Yunding ", and some value-added interfaces, such as CRM (customer management system), will be restricted." An e-commerce seller told Global Entrepreneur, "it's obvious that Ali wants to build its own enterprise ERP system platform. If service providers join this plan, they will die. If they don't join it, they will die."

service providers are in a dilemma when facing the power of the platform. The above people think that this action has hurt the whole e-commerce service industry. The business volume brought by Alibaba accounts for the vast majority of the business of these service providers, and the collective resistance is weak. In addition, Alibaba has invested in Guanyi, youyicheng and other service providers. Even if it encounters resistance, Alibaba still has the support of allies.
but they do not deny that Ali's "ground network" is conducive to data integration. This will increase the complexity of ERP in the short term, which is beneficial to their business in a certain sense. But in the long run, if Alibaba builds its own ERP system, the third-party ERP service providers will gradually disappear. In the past, the background data of the big seller was directly connected to the ERP system of the service provider, and the seller and the logistics company could directly connect through the service provider; later, the background data of the big seller might be connected to the management platform developed by Alibaba. That is, between service providers and sellers, Alibaba, as the platform side, can control all transaction links. "Alibaba wants to be the chain owner of the supply chain." Huang Gang, deputy general manager of Hansen century supply chain, said to Global Entrepreneur, "express needs to take business, Ma Yun takes orders to coerce the princes. I have logistics orders on my side. If you want to cooperate with me, if you don't, I tend to cooperate with others. It's possible." It is one of the ways for Alibaba to control the logistics company and to "enhance" the coordination and cooperation with the logistics company.

of course, Li Junling is more willing to describe rookie network as an increment, "we are helping them find new growth points in a new market, rather than replacing the existing network.". This kind of statement is a bit of commitment. If so, it will be a happy ending. But for consumers, these are not important. They are more concerned about whether their newbie network can really deliver their goods within 24 hours in the future.

for Ma Yun and Alibaba, after completing the e-commerce layout with Taobao and tmall as the core to control the information flow and the financial layout with Alipay as the core to control the capital flow, if China's intelligent backbone network is successful, the information flow, capital flow and logistics will be in hand.