Jingdong'S Behind The Scenes Promoter Tells You How To Become A Big Pattern Enterprise

　　 Behind the scenes

Since there are too many people who don't know Zhang Lei, let's introduce Zhang Lei and Hillhouse Capital , and then we will talk about the topic, not advertising for them, which is the need of the theme.

Due to the low-key style, Zhang Lei and Hillhouse Capital make people feel a bit mysterious. Zhang Lei's credo is "to be a long-term partner of the enterprise". Unlike many investment institutions that have cashed out after the IPO and listing of the enterprise, Hillhouse Investment is characterized by a small number of invested companies, but it holds shares for a long time and pursues long-term returns. That is, after the listing of the invested company, as long as the business development prospects are promising, it will continue to hold.

Behind Hillhouse Capital is the investment fund of Yale University. Zhang Lei graduated from the Yale School of Management. His mentor is David Svensen, the head of Yale Investment Fund. Svensen is an investment master as famous as Buffett. PEI, the authoritative research institution in the global private equity investment fund industry, once elected him as the second most influential person in the global PE industry, Second only to former Federal Reserve Chairman Alan Greenspan. While Svensen's mentor was James Tobin, a Nobel laureate in economics, Zhang Lei's undergraduate was majoring in international finance at Renmin University of China.

Hillhouse Capital was founded in 2005 by Zhang Lei using the $30 million provided by Yale University Investment Fund as the starting fund. Since its inception, the average annual compound return has been as high as 52%. At present, the fund under management is $7.766 billion (another saying is $14 billion, but not confirmed), Tom Hill, head of hedge fund investment business of Blackstone Group, praised Zhang Lei as Steve Mandel of China - Mandel is the founder of Lone Pine Capital and one of the most respected and low-key people in the field of hedge funds.

　　 Through four steps, you can find a "potential" enterprise with a big pattern view

Let's take a look at what types of enterprises are those with rapid development and good prospects, worthy of investment and long-term holding? To view an enterprise in a big pattern, in popular terms, is an enterprise that can deeply grasp the development and changes of its industry and understand the needs of its target customer group, rely on unique product and service innovation, and implement the strategic layout of its business model even at the expense of short-term and short-term gains, so as to achieve long-term gains.

The investment style and philosophy of Zhang Lei and Hillhouse Capital is to find entrepreneurs with a big pattern view, and then promote these enterprises to grow into enterprises with a stable business growth and a big pattern view through guidance.

Entrepreneur without a big pattern view will not have a big pattern view. To become a big pattern enterprise, it is necessary to become an entrepreneur or enterprise leader who is "a firm practitioner with a great pattern view".

Before discussing how to become a big pattern enterprise, let's take a look at the enterprises identified by Zhang Lei that have a big pattern view. These enterprises have made investments.

　　1、 Zhang Lei The first investment target is Tencent. After the establishment of Hillhouse Capital, Zhang Lei invested most of the funds raised from Yale University's investment fund in Tencent. The results were very generous, and he still retains Tencent shares;

2. Investing in Jingdong Mall is Zhang Lei's largest investment at present. Zhang Lei thinks that JD is "Amazon+UPS International Express". Liu Qiangdong asked for $70 million. Zhang Lei replied, "If you only want $70 million, I will not invest. If you want to invest, I will invest 300 million." He believes that JD's business model is a business that needs to burn money, and it cannot form core competitiveness without burning $2 billion. Zhang Lei also promoted the strategic cooperation between JD and Tencent, making Tencent the second largest shareholder of JD through mergers and acquisitions.

3. Hillhouse Capital is very optimistic about Baidu. Qunar (61.05% held by Baidu), which participated in the investment, has landed on NASDAQ in October 2013. Hillhouse Capital holds 4.64% of shares. Qunar CEO Zhuang Chenchao attaches great importance to the help and guidance of Hillhouse Capital to Qunar.

4. Four enterprises invested by Hillhouse Capital: Sihuan Pharmaceutical, Far East Hongxin, Gaoxin Retail (operating hypermarkets with RT Mart and Auchan as brands) and Conch Venture have realized IPO, and Hillhouse Capital is promoting the public listing of its investment in Blue Moon, Douguo, Chase Light Animation, etc. in the capital market.

5. Different from many investment institutions that only do venture capital, Hillhouse Capital has another fund called HCM in addition to venture capital business China Fund is specialized in investing in China's secondary market stock market (including Hong Kong shares), and is also famous for long-term investment. Its main investment objects include Midea Group, Tsingtao Beer, Jidong Cement, Yanghe Shares, China International Trade, Gree, Shanghai Airport, Ctrip, Sohu, Melco Boya, Yahoo, Jiubang Digital, Auto Home and other enterprises.

The achievements of Hillhouse Capital in venture capital can no longer be evaluated with excellence, but it is unbelievable. Are these enterprises that Zhang Lei and Hillhouse Capital look at and invest in, are they all enterprises with a big pattern view? Now there is no answer, and it will take time to prove it. Investing in JD and promoting its successful listing can be said to have made Hillhouse Capital famous in the first battle and truly established its position in the Jianghu in the investment field. Let's evaluate and compare the investment objects of these incomplete statistics of Hillhouse Capital. These enterprises are relatively excellent and play an important role in their respective industries, from which we can find some rules:

1. These enterprises are leading or have such growth potential in the subdivided industries, and the market space is large;

2. The leaders of these enterprises have pioneering spirit. Most of them have broad vision and firm will;

3. The value of these enterprises is underestimated, their potential has not been released, and their business has good growth potential.

What logic does Zhang Lei follow when he chooses to view the enterprise as a big pattern? After a new analysis, it can be divided into four parts:

The first is to choose fast developing fields and industries, whose key investment fields include Internet and media, consumption and retail, health care, energy and advanced manufacturing, etc;

The second is to study the business model of the field concerned, find the best business model, and adopt the research model to lock the type of investment projects;

The third is to look for entrepreneurs who match the best business model to develop together. Entrepreneurs must be "firm practitioners with a great pattern view", so that they can grow into a big pattern view enterprise;

Fourth, we should help these entrepreneurs with a big pattern view to fully tap and give play to their potential, conduct a new strategic layout under the guidance, and finally realize the maximization of enterprise value.

It can be understood through two cases. The first case is the Blue Moon. After Hillhouse Capital invested in Blue Moon, Blue Moon, under the advice of Hillhouse Capital, changed its tactics and made every effort to educate consumers to change the way of washing clothes. It invested a lot of money but its performance did not grow rapidly. As a result, its profitability turned into a loss for three consecutive years, but Blue Moon resolutely implemented it, and the effect was very obvious three years later, Blue Moon has become the leader of the detergent industry in China.

The second example is Jingdong Mall. After investing in JD, Hillhouse Capital was different from other investment institutions in their eagerness to promote JD's listing in the capital market as soon as possible. Zhang Lei supported Liu Qiangdong to carry out strategic layout, expand product lines and occupy the market through price war. Liu Qiangdong once had a strained relationship with investment institutions, but with the support of Zhang Lei, he overcame the difficulty. Zhang Lei believes that JD is "Amazon+UPS International Express", so in terms of management, in the second week after investing in JD, Zhang Lei took Liu Qiangdong to the United States to let Liu Qiangdong have a comprehensive understanding of Wal Mart's logistics network and storage system, and JD subsequently launched supply chain reengineering and logistics channel optimization; Zhang Lei also arranged the management of JD to learn from the senior management team of RT Mart under Gaoling invested Gaoxin Retail to help the JD team learn the management knowledge of offline retail; In terms of operation, what kind of late stage investors Jingdong chooses to play a role in, Zhang Lei hopes that investors introduced to Jingdong in the late stage can also be like Hillhouse, without short-term exit pressure, and can really look into the future to support the long-term development of the company. Hillhouse also helps Jingdong introduce many experienced senior management talents in Internet operation and marketing.

Zhang Lei's investment philosophy originates from China, and he has three philosophies, namely, "keep the right and use the strange", "take a dipper with three thousand weak waters" and "make a difference without saying anything". The phrase of "keeping the right and using the strange" comes from Laozi's Tao Te Ching's "ruling the country with the right and using the strange". Investment should be made by means of in-depth research, but the choice of investment objects should be made by surprise; "Three thousand weak waters, but take one scoop" is extended from the Analects of Confucius. Don't deliberately chase too many opportunities, just focus on one and be willing to pay more attention; "Peaches and plums don't speak, but they make a difference" comes from the Records of the Historian. As long as we do the right thing well, we don't need to publicize it, and good projects will come to us on our own initiative.

　　 Do not use investor To build an enterprise

The characteristics of enterprises with a view to the big pattern are that they have a broad vision. Even at the expense of short-term gains, they should also seek to seize the commanding heights of competition, so that enterprises can continue to grow rapidly and obtain long-term gains.

We looked at the enterprise from the perspective of investment institutions, and now we stand on the position of the enterprise to see how entrepreneurs can do to develop the enterprise into a big pattern enterprise.

Don't be misled by the "team, market and business model" of venture capital institutions, and then focus on the "three looks" while neglecting the most important things.

The investor's thinking has a guiding role, but the actual enterprise must face many practical challenges. The following 10 points are very important:

1. Clarify the customer's needs. No matter what field or industry you have chosen or are choosing, you should first make clear the needs of customers and find the right customer base. Some people talk about business models and good products, and talk about them without the needs of users. Creativity and technology are not the core. Making clear the needs of customers is the key, or they may end up doing nothing.

2. Clearly define what value to create for customers. Only by bringing value to customers can we survive and grow for a long time. However, many entrepreneurs have not clearly defined and designed the management of "creating value for customers". They are too vague to grasp the pain points of customer needs, which will lead to the rapid development of the market, and it is difficult for you to grow.

3. Create good products. In fact, a product is your solution to meet the needs of target customers and create customer value. Whether you are an end use product, intermediate product or platform service product, whether you rely on performance, price or service to win, the market will use user experience to vote by foot. Different industries will have differences. For example, IT products will pursue perfection, e-commerce will focus on supply Price and logistics, while agricultural products will pursue pure nature. Technology is the means, not technology as the core, but customer needs as the core. The products created can be changed, not unchanged.

4. Find a good business model. This has been a cliche, of course, it is really difficult to find or innovate. Some industries do not need to innovate business models at all. They can win by products. Some industries may subvert the original competitive pattern by business models. Some industries may have completely different business models even if they are engaged in the same business. In short, we should choose a high growth market, explore the best business model, broaden the moat through innovation, build barriers to entry, and even integrate upstream and downstream, so as to make our own rapid development and prevent the development of competitors.

5. Self management of entrepreneurs. Entrepreneur's growth determines the height of enterprise development. Entrepreneur's growth depends on self-management. You may admire others' vision, passion, willpower, and exclaim that others dare to pursue dreams, pioneer and innovate, self deny, embrace change, etc. The difference is actually whether self-management is good or not. Peter Drucker, the master of management, said that self-management is to answer five questions: "Who am I (what are my strengths? How do I work? What are my values?), where do I belong, what contributions can I make, how do I maintain interpersonal relationships, and what do I do in the next half of my life". It is suggested that everyone take some time to learn Drucker's classics. Business is important, But the foundation of management is indispensable.

6. Innovative marketing. The growth of an enterprise must be supported by good marketing. The marketing methods are diverse and can be selected according to the products. However, the use of social marketing methods has become a trend. At the same time, attention should be paid to community operations.

7. Match the appropriate management team and find key talents. The vision of VC is to have a first-class team in your enterprise, which is an ideal situation after all. What is more reliable is that it is best to use it together. Team, team, talent, talent, how big an enterprise can be depends on how many good talents an enterprise can recruit. Managing an enterprise is managing talent, and market competition is talent competition in the final analysis. Dig, search and improve!

8. Product innovation and management innovation. Pursue rapid innovation, establish an innovation system that does not rely on someone, and the importance of product innovation goes without saying, In fact, the understanding of "making products iterate continuously through innovation, even launching subversive products" has been deeply rooted in the hearts of the people, but people often do not pay attention to management innovation. Take a look at the practices of Xiaomi Lei Jun and the latest actions of Haier Zhang Ruimin. The enterprise is a system, and each link needs to be coordinated, rather than relying on one piece of excellence to win.

9. Ensure resource support. The success of an enterprise sometimes depends on the speed and quantity of financing. When an opponent takes the lead to complete the financing, you may lose the opportunity or even fall into hell. Financing ability has even become the standard to consider whether an entrepreneur can become big. Even if the enterprise is in the mature period, sufficient funds are also necessary. When marching to fight, food and grass should go first.

10. Efficient strategy implementation and operation. Venture capital depends on investment value, while the enterprise depends on performance. Value is just embodiment, which is the difference. How the strategy is broken down and implemented, how to make the operation more efficient, how to control costs, how to expand sales, etc., are not the most important things for risk, but they are just the most important things for entrepreneurs in their daily life.

The big pattern view of enterprises is not a new type of enterprise. I regard it as a way of thinking. This way of thinking helps us to understand more systematically how venture capital institutions choose investment objects and what logic they follow. At the same time, when I communicate with many entrepreneurs and entrepreneurs, It is obviously found that many people operate their own enterprises based on the logic and concept of venture capital institutions, but the development of enterprises is very different from the idea. They don't know what the problem is. They always emphasize that you see the market is so big, how good my product is, and even list a dozen or twenty so-called micro innovations. In my opinion, They are not sure how to do the logic of the enterprise. They want to help us by sorting out these points. Of course, if you just want to turn your enterprise into a project oriented enterprise, and make a profit, then go away. The logic of the big pattern view of enterprise is totally unsuitable for you.

There are only a few winners and a majority losers. Everyone does not want to do poorly. The essence of an enterprise is to create customers. Therefore, to be an enterprise, one must maintain its true nature.