Ye Tan: Entrepreneurs who are deeply mired in price wars should feel embarrassed

Abstract China's e-commerce platform has recently fallen into a controversial vortex. The revenue has risen rapidly, the profit growth has not been fast, and the price war has been fought. The store on the platform has a large loss. The controversy surrounding the e-commerce platform is actually a controversy over the traditional real economy. How can Chinese entities get rid of the fate of price wars...
China's e-commerce platform has recently fallen into a controversial vortex. The revenue has risen rapidly, the profit growth has not been fast, and the price war has been fought. The store on the platform has a large loss. The controversy surrounding the e-commerce platform is actually a controversy over the traditional real economy. How can Chinese entities get rid of the fate of price wars?
Thirty years after the reform and opening up, China has gone from a shortage of economy to a period of “overcapacity”. This is not a real overcapacity, but the system has lost its vitality. Some big and not falling zombie enterprises have lost their motivation to meet the middle class of China’s middle income. Above consumer demand.

Chinese people buy milk powder in the world. In extreme cases, the milk powder of supermarkets in the Netherlands and other countries are sold out. China enters the era of intelligent manufacturing, but the core spare parts of robots come from Japan, Germany and other countries. The brand demand, credit demand and technical needs of Chinese consumers. If they are not satisfied, those Chinese entrepreneurs who will only fight the price war and drag the Chinese economy into the low-end and quality quagmire should be guilty. They cannot afford to build a brand and restore credit, but earn money by harming social values. Take the last bucket of gold before the crisis.

As a result, new entrepreneurs have poured into the market after 30 years of destructive innovators. They are like mercury-filled fillings in various vacancies in the market.

On September 23, 2014, Ma Yunqi Alibaba successfully listed in the United States, participated in the "Clinton Global Initiative" annual meeting hosted by former US President Bill Clinton, and answered Clinton's Chelsea "How to Treat the Value Brought by Alibaba's Listing" When the question is given, the answer is very classic: "Why is Alibaba successful in China? Because China's trade structure is really bad, so we have an opportunity. Why is the US e-commerce not so good? Because The infrastructure is great. In the United States, e-commerce is a dessert, but in China it is a main dish."

This answer directly hits the pain point of the Chinese economy. Although the volume of commodity trading is extremely large, the transaction link is too long, the transaction cost is too high, and there are too many rent-seekers and renters. This answer also explains why Taobao can succeed, remove the organs that cause pain points for thousands of businesses, and let the merchants directly face consumers by means of de-intermediation and flattening. If you deviate from this course and become a new renter, Taobao will not succeed, even if it succeeds, it will decline.

Whether it is the beginning of the Chinese market economy 30 years ago, or today the market economy enters the second stage, the quality of successful and responsible entrepreneurs is common, with unparalleled courage to explore the market and provide a specific stage of society. Shortage of goods, shortage of resources, in the fashionable words, to solve the pain points in the economic field.

Today's China, from large multinational companies to small and sophisticated companies, has become an invisible champion in the field. For example, China has the world's largest straw company and the world's largest manufacturer of drones. The market valuation of the two companies may be quite different. The wealth of the two entrepreneurs may vary greatly. Who cares? Two people deserve respect.

The Chinese market is too big. There are too many things to be needed. Chinese investors need credible accountants. Chinese babies need to eat milk powder. Chinese people need thick diapers. Chinese companies need reliable auto parts.

There is a mysterious entrepreneur, others ask him, are you happy? He replied, happy, when making money. Ask again, is there a faster life than this? Answer, when making more money.

This is not a socially responsible entrepreneur. Of course, this sentence alone cannot be concluded that this is a faulty entrepreneur. It is the basic quality of entrepreneurs to make money as a pleasure and to have a way to achieve it. But the great "social entrepreneurs", in addition to their ability and care for the society, will at least not drag Chinese manufacturing into the abyss of price wars.

Entrepreneurs have value, some consume value, and even become social locusts. Such people are not far away. We need entrepreneurs with vision and insight to rebuild Chinese product credits and brands. This is the "character" of the Chinese economy.

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