Chapter 290: Conflict with Confucians
Xu Wen paused for a moment after he finished speaking.

He glanced around, making sure everyone's attention was on him.

Among this group of people, he found an acquaintance, Yan Hui (who appeared in Chapter 190) who had appeared before in Chengyi Hotel.

Her current position is the Chief Financial Officer of Hongjing Industrial.

After noticing Xu Wen's gaze, Yan Hui smiled at him politely.

Although Xu Wen only knew this one person, he guessed that Gu Hong had probably called all the senior executives of Hongjing Industrial here today.

He glanced at everyone before continuing, "I guess everyone here has heard of Meituan and 58.com, right?"

Abstract concepts are difficult to understand, but they can be understood with an example.

"Do you believe that in the next five years, a life service super platform with a market value of over 100 billion yuan will emerge in Dongda?" Xu Wen spoke at a slow pace, giving everyone time to think.

He concluded: "Whether it is Meituan or 58, they seem to be leading, but there are fatal gaps in their layout. We plan to use three years to eat up % of their core market through an entry that is lighter, faster and smarter than Meituan."

After Xu Wen finished saying this, many people in the audience frowned slightly, while some were writing something on paper.

The most relaxed people at the scene were the father and daughter named Gu.

My daughter Gu Xingruo supported her chin with both hands, like a good student listening to the lecture in class.

Gu Hongze crossed his legs and watched Xu Wen explaining his PPT nonchalantly.

Occasionally someone would glance at him secretly, but he would not even give them a glance.

"The reason why we chose to enter this market is because we discovered three fatal gaps in Meituan's existing layout." Xu Wen calmed his mind and continued to explain.

He pressed the remote control in his hand, and the Meituan logo broke into three pieces in the center of the screen.

Further down is a chart that clearly shows Meituan’s current situation and problems in the field of life services.

"The first problem is that Meituan is overly dependent on group buying. The frequency of group buying business is low and it is not a necessity. The market for takeout and instant delivery is the key to future development," Xu Wen began to explain.

In 2012, Meituan and Dianping were still in the midst of a fierce group-buying war. The war only came to an end after their merger in 2015.

However, what followed was an even more intense takeout war.

He turned around and pointed to a piece of data: "In 2012, the annual growth rate of Dongda's takeaway market exceeded %. Meituan's investment in this area is far from enough. This is a good time for us to open up the market."

Xu Wen's tone gradually became stronger: "The second problem is that they still use PC-side thinking to do mobile things."

He took out his mobile phone, on which the Meituan app was downloaded.

"You see, Meituan's startup speed is slow, and the payment process is too cumbersome, requiring more than five steps. This experience seriously affects user stickiness." He operated his mobile phone to show everyone.

Finally, he reminded: "If you can't see clearly, you can take out your mobile phone and try it."

After Xu Wen finished his presentation, he paused and then pointed to another part of the screen.

"Finally, Meituan's full-category expansion strategy was their third mistake. Excessive expansion led to uneven merchant service quality, large fluctuations in consumer experience, and a complaint rate as high as 15%. These problems have seriously affected Meituan's competitiveness in the high-frequency and rigid-demand track." He said slowly.

As a witness to the food delivery war in 2015, Xu Wen knew that Meituan would soon make up for these three mistakes and even do better.

But it's 2012, and he's facing a large group of corporate executives, so of course he has to say even less good about his competitors.

To put it bluntly, attracting investment is a technique to fool investors.

After talking about the fatal flaws of the group, Xu Wen quickly scanned everyone present.

His eyes were sharp and his tone was serious: "We saw these, found the problems, and found the huge opportunities in them."

Xu Wen gently pressed the button and went to the next page, which displayed a data chart.

"Chinese white-collar workers have an average daily dining demand of 3.7 times, and the smartphone penetration rate in third- and fourth-tier cities has increased by 58 percent annually. However, Meituan currently only covers the top 30 cities, and the markets in other cities are seriously underestimated. This is a huge opportunity for us to enter." He smiled indifferently, looking particularly confident.

The prerequisite for investors to believe is that they themselves must first believe what they say.

Once a problem is raised, it is natural to solve it.

Xu Wen continued to press the button to make the PPT jump to the next page.

"In order to solve the above pain points, we have prepared three sharp knives. The first one is to use high frequency to hit low frequency." Xu Wen's mood gradually calmed down, and he had gradually got into the state.

After giving everyone a brief moment to think, he continued, "We don't touch low-frequency businesses such as movie tickets and hotels, but focus on solving the three-times-a-day dining needs of white-collar workers and seize this rigid demand market."

He smiled slightly, a hint of confidence flashing in his eyes.

It may seem like a simple demand, but there is actually a huge market for it. In the future, anyone with a smartphone will order takeout.

Even though pre-prepared meals, Chinese fried rice and other messy things appeared later, many people still used them with a pinch of their noses.

"The second knife is that our mobile experience is one of our core competitive advantages." Xu Wen's eyes lit up with some passion in them.

"We will place the task of reducing the size of the software installation package at the top priority and try our best to ensure that it can run smoothly even on low-end chips," he said firmly.

Don’t worry about whether you can do it in the end, just paint a picture first.

After drawing the pie, he did not forget to add rationality to his pie.

He took out his mobile phone and showed the Xiaozhi Search and Lianlian apps that were already available on the app store, indicating that they have rich experience in software development.

The people below did not seem surprised when they heard this, probably because Gu Hong had already told them about this in advance.

He said that he was the boss of Xiaozhi Search Questions and Lianlian, and that he might even have let these executives experience it.

I don't know if these seemingly serious people would use his software to make running appointments with the opposite sex.

"The third sharp knife we ​​rely on is data." Xu Wen pressed the remote control and clicked on a map.

He said confidently: "Meituan relies on human sales, while we rely on advanced algorithms and data analysis to capture user behavior patterns."

"Through the LBS heat map, we can dynamically allocate riders, maximize the use of delivery resources, and reduce the empty driving rate; our 'Thousands of people, thousand prices' subsidy system reduces the cost of obtaining coupons for repeat users by 40 percent. These technical means not only improve efficiency, but also bring higher user stickiness." Xu Wen said a lot in a long-winded way.

Is what he said above difficult to understand? In fact, it is not difficult to understand, at least for him, a reborn person, it is not difficult to understand at all. Because this is what Meituan Future does, and he has used Meituan Takeaway for many years.

This is not considered innovation, it is simply a copy of the future Meituan, but it was innovation in 2012.

All I can say is, future Mr. Wang, please lend me all your strength!

I don’t know if Mr. Wang will say after seeing his software in the future: “I feel like I have been living in his shadow all these years.”

Xu Wen continued to press the remote control, and the next thing was the company's development plan. His carefully designed business model was presented on the PPT.

His eyes became more determined: "Our business model can be divided into three stages, like a three-stage rocket taking off gradually."

"First, in the first stage, which is the first year, our commission for takeout is only 8%. We exchange low fees for exclusive cooperation with merchants. We will also achieve early cash flow through methods such as meal box advertising and merchant bidding rankings," he explained slowly.

It is not up to him to decide how many years this process will take.

But at least he had to make these executives feel that he knew what was going on.

"In the second phase, we will enter high-gross-profit categories such as fresh food and instant delivery of medicines, with a gross profit margin of up to 25 percent. At the same time, we will also provide supply chain financial services to merchants to help them solve capital circulation problems." Xu Wen paused after speaking about each stage.

"In the final stage, we will use the accumulated user behavior data to launch a credit payment system and promote the upgrade of the software from a tool-based platform to a complete ecosystem." He has finished painting the pie, and now it depends on how these executives understand it.

He concluded: "This is still a blue ocean that has not yet been fully developed. There are so many people in Dongda, and it will be a huge market in the future. I think timing is very important in doing business. If you enter the market later, you may just be cannon fodder."

After Xu Wen finished speaking, there was silence in the conference room and no one expressed any opinions.

Everyone was waiting for someone to speak, that was Gu Hong who was sitting in the first seat.

Xu Wen's eyes were also focused on the president. He didn't know whether his plan would satisfy the boss.

Gu Hong put away his crossed legs, adjusted his sitting posture, and slowly said, "Don't wait for me, just ask if you have anything to ask."

His voice was soft, but it was like a charge before an attack. Everyone raised their heads instantly and their eyes became sharp.

If an ordinary person saw this scene, they might have been scared, but Xu Wen remained confident.

A male executive spoke first: "Meituan has covered more than 200 cities. You are now engaged in life services. The market scale is totally insufficient to support the valuation you mentioned. Are you planning to find opportunities in Meituan's group buying track?"

Xu Wen was not frightened. His eyes flashed with determination: "You mentioned Meituan's group buying track, but we focus on the high-frequency and rigid-demand instant service market, not the low-frequency and non-rigid-demand business such as group buying."

He quickly clicked the remote control, and a set of data appeared on the projector: "In 2012, the annual consumption frequency of white-collar workers was more than ten times that of group buying. Our market demand in the field of food delivery is far greater than Meituan's group buying market. The market size of food delivery alone is already very large."

Seeing that the executives were indifferent, Xu Wen continued to add: "In the Linjiang business district, the average daily demand for takeout from white-collar workers alone is more than 80,000 orders. The market potential is huge. Meituan has not had time to take up all the market share, but if you are still hesitant, you may not be sure."

Before the executive who asked the question spoke, Gu Hong, who was sitting in the first seat, had already nodded silently.

Not only him, but everyone present noticed this action.

The people below did not give Xu Wen a chance to breathe, and immediately asked the second question: "Meituan has already entered the C round of financing. Their team is very strong. Why do you think you can win against such a strong competitor?"

Competition is a topic that can never be avoided.

Xu Wen had already thought of the answer.

He responded: "Meituan may seem powerful, but their mistake is that they try to do everything without a single area of ​​specialization. Their group buying business is held back by Dianping.com, and they are outperformed by Ctrip in the hotel and travel sector. We chose to enter the takeaway market, concentrate our efforts, and devote ten times the resources to penetrate this area."

In the past, Xu Wen would not have dared to say such a thing because he could not come up with ten times the resources.

I am a poor family, where can I get so much money?

But with Gu Hong's support, it would be completely different.

Xu Wen further elaborated: "Our strategy is like Tian Ji's horse racing. Unlike Meituan's standardized nationwide expansion, we use algorithms and regional density to enter the local market."

At the same time, he did not forget to create an atmosphere of urgency again: "Meituan has just transformed into a mobile terminal, and the organizational structure needs at least 18 months to adjust. Now is our only time window. If we hesitate now, we may not even get an entry ticket in six months."

After answering this question, questions followed one after another.

Some people questioned that Xu Wen's project was too expensive, some questioned that their team was inexperienced, some said that the policy was risky, and some even said that he never ordered takeout and cooked for himself, and that takeout was not good.

Xu Wen stood at the front and answered all the questions in a neither humble nor arrogant manner.

Seeing how hard he was working, Gu Xingruo took the initiative to get some water and brought it to him.

When the eldest lady saw Xu Wen, she suddenly thought of a TV series she had watched before.

Her grandfather particularly liked to watch "Romance of the Three Kingdoms", so he dragged her to watch it with him.

She was deeply impressed by a scene in which Zhuge Liang debated with a group of scholars, leaving them speechless.

At that time she thought the characters in the play were so handsome, and now she thinks Xu Wen is so handsome.

What executive? What leader? They were all defeated by her crush!
When Gu Xingruo was infatuated with him, her cell phone suddenly rang.

She was afraid of disturbing Xu Wen's condition, so she quickly turned to mute and ran out to answer the phone.

The eldest lady thinks that Apple’s one-click mute function is the greatest invention in the world.

It’s also unclear how disappointed she would have been if she had known that Apple later canceled this feature.

Gu Xingruo hurried out to answer the phone and hurried back.

The first thing she did when she came back was to trot to Xu Wen and whisper something in his ear.

Such an intimate act was seen by everyone present.

Their eyes were all carefully observing Gu Hong's reaction.

Xu Wen didn't care what the people below were thinking, he just kept nodding.

Gu Xingruo told him that Ruan Qiuping had already gone downstairs and would be up soon.

How could he not prepare a trump card for such an important matter?
(End of this chapter)

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