Huicong Net Guo Fansheng: What Is The Internet Coming In Winter?

Guo Fansheng, chairman of HC network, said at the annual meeting of the China Internet Conference 2008 in Nanjing that the Internet is not bad in winter. He criticized those people who exclaimed in winter, "how short sighted and irrational."

Guo Fansheng said, "before I came, many media asked me a question about winter. Did the winter of Internet come?"

In fact, spring, summer and autumn are common. Winter is not bad. What's so great about winter? What do people say when they come in winter? They don't think they have winter at all. What a shortsightedness and how irrational it is.

The following is the speech: President Guo Fansheng: in fact, before 2000, in response to the development of China's B2B, we constantly emphasized that B2B should have a reasonable business model. We think that B2B enterprises and Internet companies should discuss more about such development mode and profit mode. However, we do not pay much attention to this issue. Many of our bosses who make B2B as an industry website are holding two eyes on Wall Street to do their own things. Can you do well?

I am talking about what I talked about at the Internet Conference two years ago. I want to repeat it. Before I came, many media asked me a question about winter. Did the winter of Internet come?

In fact, spring, summer and autumn are common. Winter is not bad. What's so great about winter? What do people say when they come in winter? They do not think there is winter, what a shortsightedness and how irrational it is.

I have friends and friends in the Institute of physical education. He wrote two sentences, great ones, and saints are the rest.

I think such a conference can no longer be opened like this and become a promotion of advertising and products. It has no value.

Three years ago, everyone gave me such applause. Today's applause is still warm. It is a criticism to the organizers of the conference, and it is also a hope.

The spirit of rational return, the status quo and the future of B2B in China, winter has come, but winter is actually very good. When Huicong started his business 18 years ago, I was in Zhongguancun, and I had to die a lot of Zhongguancun Internet Co.

At the same time, we completed the listing in Hongkong in the 03 year of SARS. Our market value was not high, but we lived as if we were living.

And how to live your own business must have a rational improvement.

What is B2B? What do B2B do? We have some B2B enterprises today. The problem we encounter is losing our sense. Two eyes are staring at Wall Street. This picture was drawn five years ago. We look at B2B, B2C and C2C. According to maturity, it takes 100 yuan to make a shirt. Matching with the shirt requires 200 yuan to 300 yuan. This is called B2B. In principle, B2B's total market is B2C plus C2C and up two to three times.

You see, in this area, people have more access to the Internet, the effect of the Internet is more, but this is not B2B. A shirt can be sold on the website of B2B, and it can also be sold on the website of B2C and C2C. Some people say that Internet operators have come to tens of thousands of people, saying that they can make money by doing Internet business. That kind of person is running to the factory, taking two photos and putting them on the Internet, but your behavior has improved the efficiency. Actually, what we really need to do is to put the enterprise on the Internet and let it face the consumers directly.

We have now created many, many theories that the region will produce great theories, but do not know where its economic implications come from.

Because of the existence of problems such as currency and exchange rate in the middle of international trade, there is a B2B that exports consumer goods to foreign countries. This B2B exists, but it must be seen that it is not the main body of B2B, but a problem that needs to be solved by Internet only because of tariff barriers and unsmooth trade will not become the main body of B2B.

Obviously, HC is looking at it this way. For a long time, I have been insisting that hicong should not touch the export trade of this overlapping area because it has no future and no future. Although he can earn today's money, he can not do it as long as he can't earn tomorrow's money.

Is winter coming?

No, but this kind of enterprise is in this overlap area, to do domestic and international consumer goods export trade B2B enterprises have been destroyed.

In fact, I said two years ago, at the Canton Fair, when the renminbi was eight, when there were 1 to 6, there were still a few people who could export. Such a simple economic principle didn't want to happen. B2B almost 90% of the money was invested in this place. Are we responsible for the investors? Are we responsible for the employees of the enterprises?

The problem is that not only the appreciation of the renminbi, but the continuous increase in domestic demand, began to reduce exports, and at the same time, in the appreciation of the renminbi, our country has undergone a huge industrial structure, because at that time, the export of clothing, shoes and hats and consumer goods depended on the large number of undervalued human currencies, so that your industrial structure would be faced with great difficulties.

At the same time, the national export tax rebate is subsidized by such a way of income from other industries, such subsidies will not last long.

In the 05 years, I was an independent director of Financial Street. They came back from the United States for 80 million dollars. On board, I strongly demanded that all the foreign exchange settlement should be made according to the 8.3, because the renminbi would appreciate.

This is reason. This is the reason. This is management. This is strategy.

Now, some B2B enterprises say that winter is coming. Of course, do you think it is impossible to cover up the rational problems that exist in the long term development with big words and temporary prosperity?

Some of our listed B2B companies are not the worst yet. At this time next year, he will develop, and his business will be greatly lost. If the ratio of RMB to us dollar is 1 to 6, I think that a large number of Internet operators will be killed by 80%. How much more do the B2B company have?

We did not gloat over B2B because it was invented by the Chinese. Search, portals, B2C were created by Americans. Tens of millions of enterprises in China, and the Chinese have an opportunity to guide the trend of the Internet with their own opportunities.

So, this picture, I urge you to bear in mind that when we have done many industry websites, we must be doing it. We must understand that B2B, B2C and C2C must be professionally developed.

What is B2B? We can sell this shirt, B2B, B2C, C2C, but can you sell an industrial sewing machine, an underwater camera, a construction machinery, a powerful motor, B2C and C2C?

It can't be sold.

B2B is two or three times the sum of B2C and C2C.

China is a labor-intensive country. China relied on such a huge export industry to solve the serious employment problem in China.

Vietnam, our shoes and clothing exports less to Vietnam, but our export of large sewing machines and clothing machinery has increased. This is known as the export of industrial products and equipment, which is mainly from consumer goods to industrial products, with higher technological content and higher value. It indicates China's maturity and development. Some people say that the RMB should not appreciate and why it does not appreciate. I think RMB should not only appreciate, but our appreciation is late. Now we import more than 100000000 tons of oil every year, we produce 50% of the world's steel products, we import 60% of iron ore, and others increase the prices of these products by 100% every year. What kind of methods do we use to resist the rising price of raw materials? Due to various problems this time, our garment factory shoe factory has been pferred to

The appreciation of RMB is beneficial to the country and the people. No country has become a prosperous and powerful country by underestimating its own currency.

The second trend is that China will shift from direct exports to indirect exports.

Direct selling to foreign businessmen, this is direct export, and there is also an export, called indirect export, which is a typical export mode of B2B. For example, GE produces a large turbine and purchases in large quantities in China, and the turbine produced in China is exported. Then the enterprises that provide him with turbine blades have completed the process of selling their products to the world through the brand of GE. It is noted that in developing countries, when GDP reaches three thousand or four thousand US dollars, indirect exports are the largest.

At this time, because developing countries lack their brand and core technology, they can only rely on their multinational companies and rely on their brands and technologies to complete their own initial exports. Attention should be paid to domestic B2B and information communication between domestic enterprises. I think this is the most obvious trend of China's export in the future.

Let's ask the cashmere sweater enterprise, Wang Linxiang is my friend, I ask him every year, how much proportion of your cashmere sweater, in 80s, its export proportion accounted for 80%, now its export proportion accounts for only 20%, so simple reason, cashmere sweater has become ten pieces, eight are Chinese people wear.

So B2B's main attack market, B2B's main service users, are not consumer goods, not network operators. I do not object to anyone getting rich and getting rich online, but remember that a great enterprise can not rely on that corner market to achieve maturity.

Now, the most important thing is that China's Internet community must be rational, use reason to lead itself, and develop its own business.

The greatness of the devil is the survival of the sage.

With so many companies participating in the Internet Conference today, I believe that at this time next year, more than half of the network companies sitting here today have died.

Affirmative, of course, struggle, there will be sacrifices. The death of people often happens, but as a living person, we must sum up why he sacrificed.

I remember that at the end of the 90s, there was an enterprise that did a good job. Others talked about financing. He said how much money would not be discussed below. After three months, because of the cash flow cut off, its business was dead. The main problems of the enterprise were rational problems, vision problems and management problems.

I think there should be such a slogan now that Internet companies and companies, like traditional companies, learn from them, learn their sincere and diligent work, learn how they live on the poor, and learn how they can lose profits by spending one hundred thousand yuan. Now the Internet community still believes in such an example, that is, take the money out of scale and make profits again.

So far, Internet companies in China have only turned Huicong from traditional industries.

When Internet Co distinguishes itself from traditional companies, the Internet will succeed.

The purpose of the Internet is to let everyone use the Internet. Everyone is using the Internet. Are you still a Internet Co?

I don't think I would like to go to such a venue, but I think if we do not, this will become more irrational.

A lack of rational meeting, there will be problems, I intuitively talk about some speakers, come up to do things for the common people, written on PPT, 80% are English, have you figuring out what you are doing.

This winter of the Internet has come from the perspective of capital. Indeed, because of the financial crisis of the United States, the bankruptcy of Lehman Corp, and the pformation of Goldman Sachs and Morgan and Stanley, it is a sign that in the next three years, Americans will invest a large amount of capital in the US market to save the market, so few of China's Internet Co can get money.

A year ago, I consulted with a Internet Co of two industries. I gave you a little money and you did it. He said, "my valuation is so high that I have to pay for it according to the price of online sales. Can I still live today? I want to give two sentences to colleagues in the industry website." remember, "survival is the most important thing. If you can survive and survive for two or three years, you will see a glimmer of dawn."

The winter is not terrible. Huicong was listed on the market last winter. After that winter, I had been looking forward to another winter. Maybe it was a bad mood, but there was no way, because it was too luxuriant to show your beauty.

I think this is the reason I emphasize today. I hope that everyone who leaves the venue will look at more than how long I can live, not tomorrow or after a few months, and how much money you can make. Thank you!