Lei Jun explained as long as the car burn electricity supplier will win

Lei Jun explained as long as the car burn electricity supplier will win

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millet technology CEO Lei JunSina

technology news May 10th morning news, 2012 global mobile Internet Conference (GMIC) held in Beijing this morning, millet technology CEO Lei Jun in the dialogue and quality rice network founder Wang Lifen, explains the intention of the crazy burn electricity supplier, said high investment in order to achieve the scale effect and then put the money back, he also said that these burn the company is not as long as you can win over.

Lei Jun said that the electricity supplier is easy to expand, but the real problem is the brutal competition in the Internet, such as price war. "Now is the electricity supplier development process, companies are shopping, shopping for the purpose of obtaining a high market share and user reputation through high income, and then lost the money back."

but this need is a position, Lei think only after the brutal competition, 1-2 company will make money and the current electricity supplier, electricity supplier counterparts are for this position, do the fierce competition.

Lei Jun in the Jingdong for example, if the Jingdong has 70% market share in the field of 3C, he will have pricing power, this time may require manufacturers to give good enough profit. Earlier examples of Amazon – the same group began to gross margin is very low, but after reaching the scale effect, you can raise the gross profit margin to 20%.

for the current large-scale burn electricity supplier company, Lei Jun recommendations is the need to control the rhythm, like driving on the highway, 130 kilometers per hour. The most important thing is not overturned, as long as you can win over. (Cui Xi)


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