I'm not interested in money or women.

Chapter 83 The fish finally took the bait

"how is this possible?"

Hearing Lu Feng's words, Xu Yangtian laughed out loud: "If you can solve the problem of clothing sales backlog, you can directly win the Nobel Prize in Economics!"

There is no one in the clothing industry around the world who does not have inventory pressure.

Unless we implement an absolute planned economy and distribute income based on the number of people, this problem is basically unsolvable.

Lu Feng smiled, not paying attention to the sarcasm in his tone, and simply asked, "Solving a problem also has different degrees. Of course I can't solve it completely, but what if I can reduce the cost to the lowest level?"

Xu Yangtian put away his smile and looked more serious: "How can we reduce the cost?"

If Lu Feng really said that he could solve this problem completely, he would definitely sneer at him.

But if it is to reduce costs, it is much more reliable.

It’s just that the small single quick response model is already the lowest cost model. Is there any model that can be lower in cost than the small single quick response model?

Lu Feng didn't rush to answer. Instead, he picked up the teacup and drank a sip of tea before asking leisurely, "What is the current monthly active users of Sheinside?"

"About six or seven hundred thousand."

“What is the average customer spending?”

“About $22.”

“What’s the average price of the product?”

“They’re basically around $10.”

“What percentage of your total costs are spent on advertising?”

"..."

When asked this question, Xu Yangtian hesitated.

The content of this question already involves commercial secrets.

But after a slight hesitation, he answered: "About 30%."

Lu Feng knew that his answer was definitely exaggerated, but he didn't care.

After asking a few more questions, Lu Feng began to explain: "Your current sales model is still the traditional one, placing advertisements, waiting for customers to buy, and continuing to place advertisements after receiving sales proceeds.

This is basically the same as the ancient practice of shouting to make money, except that shouting is replaced by placing advertising content on various social media.”

Xu Yangtian curled his lips: "Don't everyone do this? Not to mention me, doesn't even Coca-Cola have to spend money on advertising?"

Lu Feng did not deny it: "Advertising also requires efficiency. Brands with a single product category have the highest return on advertising. For example, for Coca-Cola, what they want is brand value.

But what about you? Do you have your own brand? Customers value high cost performance, or to put it bluntly, it means they are getting a bargain.

You can only try to lower costs to attract customers while maintaining product diversity.

But the more products you have, the more advertising you need to run, and the more it costs.

It would be fine if every style could be sold, but hot-selling items are only a small part, and slow-selling items are the most common situation. You should know this better than me. "

Lu Feng's words once again left Xu Yangtian speechless.

So, he decided not to speak any more and just listen to what Lu Feng had to say first.

Lu Feng did not wait for him to speak, but asked on his own: "Proactive advertising is a traditional information transmission mode, which is to manually convey information. The efficiency is very low because many people have become accustomed to blocking advertisements.

But have you ever thought about letting advertising actively find customers? And find the right customers, customers who are suitable for the product?
And it can also judge customer preferences based on their habits and recommend products that better suit their preferences? "

Hearing Lu Feng's question, Xu Yangtian couldn't help but open his mouth wide.

The content of these words contained too much information, and he was unable to digest it all at once.

Let the advertisements actively find customers? And make recommendations based on customer preferences?
What kind of fantasy is this?
Although he is also a technical person and knows a little about search engine optimization, this kind of thing seems difficult to accomplish, right?
Unless a completely new algorithm is designed, but it seems that there is no such algorithm in the world?
But if such an algorithm really existed and could be used by his website, then the advertising costs would definitely be greatly reduced!
Because his current advertising model is to cast a wide net, how many fish he can catch depends entirely on fate.

But if we have this kind of algorithm, we can accurately deliver ads to target customers, then the advertising efficiency will be greatly improved and the cost will naturally be reduced.

For a moment, it was as if a storm had been set off in his mind. But what he didn't know was that the information distribution and personalized recommendation algorithm that Lu Feng mentioned was now being developed in a startup company in Beijing.

This algorithm has also created a giant leading enterprise.

"Personalized recommendation is just one of them. What Sheinside should do is to adopt the independent website model."

Lu Feng continued: "That is, the domain name, content, data, and rights are private, and with the cooperation of cloud computing, it can independently connect to third-party software tools, publicity and promotion media and channels.

In this way, you can have an independent, self-sufficient entrance to reach users, and then it will snowball on a large scale.”

Having said that, Lu Feng snapped his fingers.

It also brought Xu Yangtian, who was immersed in the beautiful future he described, back to his senses.

He looked at Lu Feng excitedly and felt like his heart was about to jump out.

If Sheinside can really develop into what Lu Feng said, it would be amazing!

Restraining his excitement, he looked at Lu Feng eagerly and asked, "I know about cloud computing, which is the technology of Alibaba and Baidu, but the personalized recommendation you mentioned, does it require a completely new algorithm? Do you have a way?"

"of course."

Lu Feng leaned back in his chair, smiling without saying a word.

When Xu Yangtian heard Lu Feng's exact answer, his heart skipped a beat.

He rubbed his slightly damp palms on his knees and looked at the teacup in front of him, with a struggle in his mind.

After a while, he finally raised his head, looked at Lu Feng and said seriously: "If you can really help me introduce this algorithm, I can give you shares. The specific amount is negotiable!"

Hearing his words, Lu Feng's mouth corners raised, forming an arc.

The fish finally took the bait.

This is what Lu Feng was waiting for.

"Okay, we'll discuss this in detail later."

Lu Feng slowly extended his hand and said with a smile: "But I wish you a happy cooperation in the future."

Xu Yangtian looked at his palm, stretched out his hand, and shook hands with him: "I wish you good luck and a happy cooperation!"

After taking his hand back, Lu Feng was in a very happy mood.

Xu Yangtian was indeed a tough nut to crack, but he took advantage of the information gap and some resource integration to easily defeat him.

In fact, Lu Feng does not have the algorithm resources for personalized recommendations, but this may not be the case after November 11.

That is another link in resource integration.

Lu Feng was still very satisfied that he could win the future Xiyin.

Because Xiyin not only represents a ten-thousand-fold return on investment, it is also a powerful channel for transferring domestic funds to foreign countries.

The personal foreign exchange quota is limited to US$5 per year, which is enough to do nothing.

But those who know how to do it will find it difficult, and those who know how to do it will not find it difficult.

Smart people have plenty of ways to get their money out.

Among these, the most efficient one is the domestic supply chain + cross-border e-commerce model.

Cross-border e-commerce companies will set up subsidiaries in Hong Kong or other offshore ports to collect sales proceeds.

In the past few years when there was no compulsory foreign exchange settlement, it usually only took a little operation to move the money offshore and use it overseas.

In the next few years, Lu Feng will continue to develop in the country, but this giant crocodile will eventually go overseas.

By then, Xiyin will be his route to the sea.

That day is not far away.

(End of this chapter)