Reborn in 2011, 985 missing from two copies

"Of course, one to three days is a euphemism, a way of saving face."

Mo Yi changed the subject: "In fact, our Taobao logistics, including Tmall Supermarket, takes 3 to 7 days to arrive in most cases! However, Douyin Mall's self-operated and JD.com's self-operated stores can both deliver the goods the next day. If you were a consumer, what would you choose?"

Everyone in the room was silent.

Jack Ma was even more dumbfounded: "The gap is so big!"

"Is Taobao's logistics still so slow? There has been no progress in all these years?"

Mo Yi nodded: "No, not at all. Except for intra-provincial logistics, the goods will arrive in one to three days after the user places an order. Any inter-provincial logistics will take three to seven days."

The president of the logistics division was unhappy. This guy was just asking for trouble by attacking logistics. He decisively retorted: "We can also do it within one to three days across provinces."

"Yes, we can do it. You mean SF Express Logistics, right? But why don't you say that if using SF Express, the buyer needs to add a shipping fee starting at 20 yuan?" Mo Yi directly responded.

"I..." The logistics president was speechless for a moment, but was unable to refute.

At the beginning of 2014, Tmall Supermarket’s next-day delivery service had not yet been launched.

Even in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, the pilot program for next-day delivery has not yet started, let alone other cities.

All online purchases require express delivery by STO Express, which takes three to seven days, or even longer.

If you want it to be faster, you can only use SF Express, which can deliver it in two days, but you need to pay extra, an additional 20 yuan per order!

Many people buy products on Taobao for only a dozen or dozens of yuan, so how could they add 20 yuan for shipping?

Jack Ma's face also turned gloomy.

Mo Yi continued: "In terms of logistics, Taobao is far behind Douyin Mall!"

"The reason is that Douyin Mall has its own Xingyi Logistics, which has established a large number of storage centers across the country. However, our Tmall Supermarket has too few storage centers and the logistics are too slow."

"For this reason alone, we will be abandoned by users."

“In order to fight against TikTok, we also have to invest heavily, increase the construction of storage centers, build our own logistics system, and speed up logistics in an all-round way!”

Hearing this, Jack Ma's face darkened, and he felt a little MMP in his heart.

Isn’t this JD.com’s way?

How much does this cost!

Don’t you see that JD.com has been losing money every year because of its warehousing and logistics, and it’s losing a lot of money!

But Mo Yi did not notice the change in Jack Ma's expression, and continued to express his views with all his strength:

"Third, delivery within one hour. Xingyi Mall's logistics efficiency is much better than that of JD."

"JD.com can deliver the goods the next day, which is far ahead of Taobao's three to five days. Xingyi Technology is even more powerful. Relying on store warehouses and supermarket warehouses near the community, it can directly achieve hourly delivery in many fields!"

"And their delivery within 1 hour is not limited to their own products, but also includes a large number of third-party brands' products."

“Even if you’re buying an iPhone, you can choose Douyin Mall, which will ship from its own warehouse and arrive the next day. You can also choose a nearby Apple store for delivery, which will arrive within hours!”

"We cannot match such a high timeliness, which is why a large number of users give up Taobao and Tmall and choose Douyin Mall."

"We can't help it. Their service is too good. They say it will be delivered within an hour, but it is often delivered within half an hour. It is faster and more convenient than buying in a store. We really can't compare."

“If we want to catch up with Douyin Mall in all aspects, surpass Douyin Mall, and deliver in hours, we must also make plans.”

Jack Ma: "..."

Senior executives: "..."

Seeing everyone's strange expressions, Mo Yi's expression changed slightly, and he had to say, "I'm done."

Jack Ma: "..."

Senior executives: "..."

Silence is still silence.

Mo Yi's heart skipped a beat: "It seems that everyone doesn't agree with what I said, and they are even a little confused. What's going on?"

Jack Ma took a deep breath and exhaled a long breath: "What do you all want to say about President Mo's proposal?"

Everyone looked at each other and remained silent.

Jack Ma waved his hand and said, "It's alright. I'll tell you everything I know. Alibaba is facing a life-or-death crisis and we must pool our wisdom. Just tell us what you think."

Hearing this, a group of senior executives spoke one after another:

"What President Mo said is very good, but it is a little unrealistic. They are going all out to operate their own business, build their own logistics system, and establish large warehouses to achieve next-day delivery. They also want to achieve delivery within hours! Isn't this a joke?"

"That's right, building our own business and delivering goods the next day, isn't this following the path of JD.com?"

"We, Alibaba, are giving up the good Taobao path and following the path of JD.com. Do we want Taobao to decline and become the second JD.com?"

Mo Yi frowned: "I don't want to follow JD.com's path, but the right path. Whether it's JD.com's path or Douyin Mall's path, as long as it's correct, we have to follow it and learn from it! The self-operated model + nationwide warehouse + self-built logistics + next-day delivery is a very correct path, and users like it. There's nothing wrong with learning from others' experience?"

"Yes, yes, you are right. The self-operated model + nationwide warehouses + self-built logistics + next-day delivery is indeed very powerful, very powerful, but do you know how much it costs? Do you know why JD.com is still losing money every year even after going public? And we Alibaba is making continuous profits?"

"The fundamental reason is that JD.com built its own logistics and warehouses, which cost too much money and invested too much. However, we at Taobao did not build logistics or warehouses, but only relied on the advertising fee + commission model to achieve profitability. This is our winning formula."

"Once we give up our winning formula and follow JD.com's path of burning money to build warehouses and logistics, our revenue will instantly turn into a loss, and we will start a pattern of continuous losses."

"From Taobao's profitable route to JD's loss-making route, I don't know, President Mo, are you not very smart, or do you have other intentions?"

"I..." Mo Yi was speechless for a moment, and after a long while he said, "I am doing this for the development of Alibaba and for the future of Taobao!"

“Indeed, if we don’t build warehouses and don’t focus on self-operation, we can continue to keep our expenses low and continue to make profits, but do you think that our three to seven-day logistics can beat Douyin Mall’s self-operated next-day delivery and hourly delivery?”

"Can't beat it!"

“Can it beat the three-day delivery service offered by third-party merchants on Douyin Mall?”

“I can’t beat him either.”

"That's right, even third-party merchants on Douyin Mall can achieve next-day delivery within the province and three-day delivery across provinces with Xingyi Logistics! It's twice as fast as us!"

"This……"

Everyone was silent.

The gap is as much as twice, so it is indeed impossible to win.

But I can't bear to spend so much money.

Seeing that everyone was still hesitating, Mo Yi said earnestly:

"I know it will cost a lot of money, but there is no other way. If we want to remain an e-commerce giant, if we want to remain the industry leader, if we want to go public, we have to focus on self-operation, we have to build our own logistics system, and we have to focus on delivering within one hour. Now that Xingyi Technology has made its move, Alibaba can only respond. Unless we choose to surrender and admit defeat."

"This..." Everyone was silent.

Yes, what can you do if you don’t accept the challenge?

Jack Ma sighed and said, "Okay, then we will focus on self-operation, build our own logistics system, upgrade Tmall Supermarket, and achieve next-day delivery."

Mo Yi nodded: "The chairman is wise. Of course, I understand Alibaba's pressure and I know it will cost a lot of money. So we can move forward step by step. First of all, this year we can deploy next-day delivery in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, as well as strong second-tier cities such as Hangzhou. Next year, we will slowly advance to other second-tier cities, and the year after that to third-tier cities and fourth-tier cities, one step at a time."

Jack Ma agreed: "This is the best, it can greatly ease our financial pressure. But even so, we have to build warehouses all over the country and build our own logistics, which will cost a lot of money, right?"

Mo Yi replied: "Yes, it does cost a lot of money. But we don't have to spend the money ourselves, instead we can get others to work with us."

"How to say?"

"A proposal that we had put on hold before." Mo Yi smiled and said, "Cainiao Logistics System!"

"Cainiao logistics system? I remember this." Jack Ma recalled this:

"Someone proposed this before, and it was supported by some senior executives. They also proposed that from last year to 2015, they would join forces with Fosun, Intime, SF Express, STO Express and other companies, with an initial investment of 1000 billion yuan, to jointly establish the Cainiao Network. All major logistics companies would share regional warehousing and comprehensively speed up e-commerce logistics!"

"Yes, Chairman." Mo Yi nodded: "Cainiao Logistics is to solve the problem of slow logistics, but unfortunately the board of directors' resolution was not passed."

Jack Ma suddenly realized and remembered why he failed.

There was no other reason. At that time, there were two big money-burning projects. One was the Cainiao logistics network, which required an initial investment of 100 billion yuan. As the initiator, Alibaba had to bear at least tens of billions of yuan.

Another big project is social networking - communication, which also requires a lot of investment, but much less than rookie.

The R&D investment for the project was only 5 million yuan, 2 million yuan was invested in servers, and the initial marketing investment was about billion yuan.

Including other investments, the total initial investment will not exceed 20 billion.

Of course, if we want to grow bigger and stronger and reach hundreds of millions of users, we will have to continue to invest in marketing and promotion expenses every year, which will add up to tens of billions.

The total investment in this transaction is less than 10 billion, which is much more cost-effective than Cainiao.

We also see Changliao developing rapidly and becoming bigger and stronger.

In the end, Laiwang, which invested less and achieved better results, defeated Cainiao Logistics and was successfully approved by the board of directors.

The Cainiao logistics project was killed.

But now, Laiwang is no longer viable, and there is no need to do billions of dollars of subsequent marketing, as it will never become a success.

And Cainiao Logistics has become the top priority.

"Okay, I will convene a board meeting to discuss the Cainiao logistics network issue again. But regarding the Shishida issue..."

Jack Ma frowned and said, "Shishida needs to cooperate with the food delivery riders. We have no hope for the time being."

Mo Yi waved his hand and said, "Chairman, you forgot that we have invested a lot in word-of-mouth group buying. We have now become one of the four largest group buying giants. Next, we need to focus on the food delivery market and share a piece of the pie with Ele.me. By then, we will definitely build a food delivery system, and hourly delivery can also be promoted simultaneously!"

"We do takeout too!" Jack Ma was a little confused. Was this subordinate a little too radical?

Other senior executives also spoke up: "They are self-operated, they are also doing Cainiao Logistics, and now they are even doing food delivery! Do you think you are Wang Yi and can do everything?"

"Xingyi Technology has a lot of cash cow businesses and can afford to do anything and spend money on anything, but we at Alibaba can't do that."

"We only rely on advertising fees and commissions, so we don't have the money to build this for you!"

Mo Yi, however, didn't care: "Everyone, we have already invested a lot of money in word-of-mouth group buying. If we don't do takeout, it will be difficult to make a profit. In addition, as long as we do takeout, the new business and unlimited future will be of great benefit to our listing. We can separate word-of-mouth and list it separately!"

Hearing this, those who originally opposed fell silent, and some nodded:

"This is a good idea. It's too difficult to make a profit from group buying. The war of thousands of groups has already burned too much money for Alibaba. It will be difficult to make a profit if we don't do food delivery."

"It's also good to be listed independently. Once Koubei Waimai is listed, we will have money to start Cainiao Logistics and operate our own business!"