2018 is shaping up to be an extraordinary year for many Internet companies. Xiaomi, Ant Financial, Meituan-Dianping, Tongcheng Yilong, 51 Credit Card, Toutiao, Didi Chuxing, Inke and other Internet companies are planning to go public. Today you just finished listing in the US stock market, tomorrow I will complete the IPO in Hong Kong stock market, the market here with practical action to tell us a fact: an unprecedented new economic era is opening.
So far, this is the third wave of listings by Internet companies. From 2000 to 2005, Baidu, Tencent, Sohu, netease and other enterprises went public, which was the first wave of listing initiated by Internet enterprises. In 2014, Alibaba, JINGdong and other companies went public, which was the second wave of Internet companies going public. Since the beginning of spring this year has ushered in the third wave of listing, Xiaomi, Ping An Medical, Meituan and so on, and the list of Internet companies listed is still increasing.
According to the report on The Development Trend and Business Index of China’s Internet Industry in 2018, the development momentum of China’s Internet industry has been “online”, and the business index has been setting new highs. According to the data, the Internet business index from the third quarter of last year was 103.8, 104.5, 104.9 and 105.7, respectively. A review of the market development in recent years shows that many unicorns have emerged in the fields of mobile Internet, big data, Internet of Things and AI, and many representative “new economy” enterprises have emerged in the market. It is these enterprises that have played a crucial role in promoting the development of China’s economic market. In addition, it is also important to identify the growth potential of the business and to invest in it.
Insight of Capital and the “Awakening” of unicorns in segmentation Fields
Capital in the grasp of new changes, embrace the new economy at the same time, segments of the unicorns are particularly favored. According to the Hurun Unicorn Index for the second quarter of 2018, the number of unicorns in the first half of this year has increased to 162, among which Internet unicorns are still the most, and the top three are Internet companies. Sequoia Capital, with 42 unicorns, topped the list, followed by Tencent and IDG with 28 and 22 unicorns, respectively.
Driven by the market, many investment institutions said they would speed up the pace of investment in emerging industries and dig and cultivate more unicorns. Judging from the current market conditions, capital has indeed done so. Now the new economy represented by unicorns has set off a storm in the capital market, and a symbiotic dance between enterprises and “Bole” is gradually forming. Investors such as Sequoia, Tencent and Matrix Are waking up more “unicorns”.
But capital is also choosy. Sequoia Capital, for instance, which has captured the most unicorns, is similar in some ways. Come, deep plough subdivision domain. Especially in the environment where the Internet has penetrated into every aspect of life, it is the general trend to find the right segmentation areas to hit the pain points and work deeply, and to maintain focus and professionalism in the complex and changeable market.
The second is the right business model. In the commercial market, when a business model is proved to be successful, it is bound to be imitated by many latecomers. Take Meituan and Didi for example. Meituan has not opened a single store, but it drives the development of the takeout market. Didi does not own a taxi, but its position in the ride-hailing market is hard to shake. In these “predecessors” under the constant groping, the market knows that online joint platform huge flow of this model hidden infinite business opportunities.
Third, have an excellent team. In the investment community, there is such a sentence has been recognized by many investors “investment projects focus on investment team”. About 90% of a company’s success is believed to be determined by the CEO and his team. Unicorn requirements change from period to period. The only constants are the team and the people. The development of unicorn enterprises has to go through multiple challenges. If the team is not good enough, it is too difficult for enterprises to become “unicorns” among many “river crossovers”.
In the automotive aftermarket, there is an enterprise favored by Sequoia capital and other capital, not only sequoia Capital has been following the investment from seed to round B, but also one of the few enterprises to get multiple rounds of financing under the baptism of the automotive aftermarket in 2017. Founded only three years ago, Lechebang has quickly become a prominent presence in the market and is known as the most powerful potential unicorn due to its precise entry into the car maintenance market. And it also meets the basic requirements of capital for enterprises, that is, deep segmentation, with the right business model and excellent team.
Layout the prospect market, dig out the pain points of the industry, le Chebang’s “animalistic Cultivation”
China had 217 million cars by the end of last year, up 11.85 percent year on year, according to the Traffic Management Bureau of the Ministry of Public Security. According to the data, more than 20 million new cars are added every year in China, with the possession growth of more than 10%. In addition, the original more than 200 million cars need after-service, and the after-service market of China keeps a growth of more than 20% every year, with great potential. The temptation of the market has attracted numerous retailers and e-commerce enterprises to join the army of automobile consumers, aiming at the aftermarket of automobiles and seizing market share. However, most of them choose the track of non-4S shops and besiege 4S shops.
But 4S stores account for nearly 70 per cent of the car-maintenance market and 87 per cent of revenues. Le Che Bang judged that in the next 10 years, 4S shops will still be the main battlefield of the automotive afterservice market, and this general trend will not change.
How to break into the huge and complex 4S shop system that BAT is afraid of?
Le car state model can be called “smart”, it seem to exist in the process of 4 s shop car ownership, such as slow, expensive, such as customer pain points, in O2O mode, with strong ability of offline resources integration and online to the efficient allocation of resources ability, with “busy” and “idle” to distinguish the lower the price of 4 s shop and maintenance threshold, effective drainage, activate the 4 s store idle resources effectively, Plug in more light and efficient wings for 4S shop Internet transformation. Based on this, Le Che Bang quickly integrated 4S shop services and other car services, and successfully created a 4S shop car maintenance discount platform.
After entering the market with the e-commerce model, LE Che Bang launched B2B supply chain business module and 4S store hosting business to fully empower 4S system. Under the service of “supply chain enabling”, LEChebang helps 4S stores greatly reduce the cost of parts procurement, and helps 4S stores quickly digest inventory pressure and achieve income through its advantages in Internet technology, operation and logistics supply chain. In addition, through the merger of Renhe Island, Leche Bang takes advantage of the largest 4S store hosting service platform in the industry, helps more small and medium-sized 4S store dealer groups to effectively solve problems such as capital, talent and informatization, and realizes the new retail transformation.
Just three years, le car bon completed the electricity plate, plate chain, the layout of the 4 s shops managed plates, and the three major business sectors complement each other, the front-end electricity plate flow output, the cost of the intermediate links of supply chain plate compression, terminal can assign hosted mode management, three big gear efficiently promote 4 s shop to meet the new retail transformation, and makes the closed-loop rolling, the greater the more and more flexible and efficient.
At present, Lechebang has opened 67 cities and has more than 14 million users and 4,500 4S stores in its ecosystem. It hosts 140 4S stores and has cooperative relations with 80 auto brands. It is understood that Le Che State plans to open the number of cities to 120 this year, with the cooperation of 4S stores to reach 6000, 4S stores to reach 250 trusteeship.
With the increasing number of cooperative 4S stores and trusteeship 4S stores and the pull between the three businesses, it means that Le Che Bang can completely move all business lines in the field of automobile circulation online. Based on the huge 4S shop system, the whole vehicle business, second-hand car business, finance, insurance and other derivative businesses can achieve more Internet play in this ecosystem, so there is a huge space for imagination of Lechebang model.
Finally, the importance of teamwork. Lechebang’s management team is the only one that has both automotive genes and Internet genes. Lin Jinwen, founder and CEO of Le Chebang, comes from the CEO of Changjiu Automobile. He is the fastest growing talent in the automotive industry with profound insight and excellent management experience. In addition, its core management team is composed of ceos from a number of automotive related enterprises, the lineup is not not not strong; Most of its technical team and marketing team come from Ctrip and other large Internet companies, familiar with the Internet operation; Most of the business team come from general managers of 4S stores, and have sufficient knowledge of the automotive industry. Based on this, lechebang team is called “the most professional team in the automotive post-market Internet industry” by many people in the industry.
Nowadays, industry leaders in the Internet segmentation field, such as Meituan-Dianping, 360, Didi, etc., have received investment from sequoia China and other top venture capital institutions in the seed round and angel round. Investors are discerning, there are a lot of top capital holding lesche Bang will be the next super unicorn? Let’s wait and see.
Article/Liu Kuang public account, ID: Liukuang110