Rebirth 1984: Starting from the development of Hanka

Chapter 338 Thousand Regiments War (1)

The popularity of Pinduoduo has even caught other current e-commerce websites off guard.

The traffic and revenue of major e-commerce websites have plummeted.

“Pinduoduo is so scary, it has achieved viral fission through icq and Facebook!!!”

"This new group buying model is so crazy, even my relatives and friends are sending me links on icq and Facebook!"

“Pinduoduo’s products are very cheap. Compared with them, our e-commerce website is uncompetitive. Many consumers would rather shop at Pinduoduo!”

"..."

The senior executives of Dongdong E-commerce were sighing and frowning, feeling a great sense of crisis.

The e-commerce industry is getting bigger and bigger, and the emergence of a new business model will, to a certain extent, take away the market share of traditional e-commerce, leading to the bankruptcy of many e-commerce websites...

There is no way for them to imitate Pinduoduo’s social e-commerce model, after all, icq and Facebook will not support it.

However, the e-commerce group buying model is worth learning from.

Therefore, many e-commerce companies held meetings nervously and launched group buying projects.

Investment companies have also seen the new trend, become active one after another, and are willing to invest in group buying websites!
The "Thousand Regiment War" seems to be about to begin...

At this time, in addition to investing in Pinduoduo, Taobao and Amazon also launched "Taobao Group Buying" and "Amazon Group Buying" respectively to get a share of the market.

The group buying market is huge. Rather than leaving it to others, it’s better to eat it yourself.

With the traffic of Taobao and Amazon, except for Pinduoduo’s unique social e-commerce model, it is basically difficult for other group buying websites to compete with it.

Perhaps differentiated competition can barely allow some e-commerce companies to survive.

……

On May 2004, 5, an investor meeting was held in Shanghai.

Well-known investment companies Goldman Sachs, Sequoia, IDG, Hillhouse Capital, Shenzhen Venture Capital... all sent representatives to attend the investor meeting and prepare to identify good investment projects here.

The investor meeting started at 9:[-] am.

Many founders of start-up companies come here to seek financing with their own entrepreneurial financing plans.

Each founder will have 5 minutes to introduce their company and product.

"Dear investors, hello, I am Xu Maodong, the founder of Wowotuan Company. The products and projects I brought today are the group buying website Wowotuan developed by our company!"

Xu Maodong, the founder of Wowo Tuan, knows that time is precious, so he focused on the development plan of Wo Wo Tuan.

"If Wowo Tuan wants to grow and develop, my way is to burn money, launch group buying coupons online, and then poach people, establish offline channels in many cities across the country, contact merchants, and promote community group buying..."

Xu Maodong talks eloquently and is very confident, and his words all show that he is good at spending money.

After listening to his words, the investor representatives present felt that it made sense and couldn't help but secretly nod their heads to express their approval.

If you engage in group buying e-commerce without burning money, do we investors still dare to invest?
Companies that dare not burn money will eventually fail.

Therefore, many investors are very interested in Wowo Tuan and expressed their willingness to invest in it.

"Mr. Xu, we at Sequoia Capital are very interested in your company's Wowo Group. We are willing to invest US$1000 million for 20% of the shares. The post-investment valuation is US$5000 million. What do you think?" Shen Nan, President of Sequoia Capital Peng asked with a smile.

"I'm honored that Sequoia Capital is willing to invest in Wowo Tuan, but Mr. Shen's quotation is too low. I think Wo Wo Tuan has huge future potential and the valuation should be higher. In addition, we plan to raise at least 2000 million this time US dollars, otherwise it will be difficult for us to gain an advantage in this group buying war!" Xu Maodong replied.

Shen Nanpeng shook his head and said: "You guys, the Wowo Tuan website has only been online for a while, and the data is average. If it weren't for the fact that group buying is now in the spotlight, we at Sequoia Capital wouldn't have given you a valuation of US$5000 million!" "Wo Wo Tuan" It has a first-mover advantage over other e-commerce websites. At least in this aspect, it has surpassed many websites. Moreover, our company's employees are all poached from Alibaba, Taobao and Amazon. They have strong technical development capabilities and rich management experience. Our Wowo Tuan is a mature e-commerce team, and we can definitely have a place in the group buying war! If we can get strong support from investors, I believe that Wo Wo Tuan will definitely become one of the group buying overlords!!!" Xu Maodong Said very confidently.

The other investors couldn't help but become more and more excited when they heard this.

The investment principle of many investment companies is to look at people and whether the company's management is good. If the company's management is not good, then they will basically not consider investing; if the management is good, then no matter what product you are No, investment companies are willing to take a gamble even if they only have an idea or a ppt.

Xu Maodong himself has certain financial resources and connections. At the beginning of the development of Wowo Tuan, he recruited many powerful characters. This is what investors value most.

In the e-commerce group buying war, the methods of each other are similar, but it all depends on the execution and management capabilities of the management.

Soon, many companies expressed their willingness to increase Wowo Tuan’s valuation.

In the end, Wowotuan successfully obtained US$2000 million, selling 25% of its shares, and the post-money valuation was US$8000 million.

Xu Maodong immediately went to the next room with the staff to sign the investment agreement.

Then it’s the turn of people from other startups.

"Hello investors, I am the founder of Manzuo.com..."

"Hello investors, I am the founder of Dianping.com..."

"Hello investors, I am the founder of Lashou.com..."

"..."

I met with more than ten company representatives in a row, three of which were group buying websites.

Generally speaking, many investment companies are willing to invest in the entire track.

Even if one of them succeeds, he can still make a lot of money!
Therefore, at the investor meeting, group buying websites basically received investment.

In fact, the companies that can come to attend the investor meeting have passed strict review before, and each company has good qualifications.Not just any startup can come and attend an investor meeting.

Investors' time is also valuable and will not be wasted on unreliable projects for no reason.

……

In less than a month, hundreds of group buying websites have appeared in China.

In Zhao Ye's view, this number is actually nothing. After all, in the Thousand Group War in the previous life, it was said that more than 6000 companies participated in the group buying war, which was terrifying.

Nowadays it’s just a child’s play.

Zhao Ye is actually not afraid of competition at all. The advantage he has here is too strong.

In terms of technology, capital, channels, etc., no other company can compare.

Moreover, the mobile Internet era is about to usher in. By then, the companies under my name will be among the first companies to embrace the mobile Internet. With the help of mobile phone bundling, they can directly compete with other group buying websites.

“The crazier the group buying war, the better!”

"It can make the group buying market more mature and make the cake bigger!"

“Let consumers get used to shopping online!”

前世的中国互联网之所以发展那么快，就少不了九次重大战役：2011年千团大战、2012年电商大战、2013年在线旅游大战、2014年网约车大战、2015年外卖大战、2017年共享单车大战、2018年新零售烧钱大战、2019年下沉市场“百亿补贴”大战、2021年短视频大战。

In Zhao Ye's view, after the war, everyone was making wedding clothes for himself, so he was happy to see the results of these wars that cost money to subsidize!

(End of this chapter)