Changtian Technology’s solution is very simple and clear at a glance.
This is how the shopping street is treated as a platform.
Any business and individual can join this platform.
Of course, in order to ensure the user’s shopping experience.
The platform will be divided into two areas: east and west.
The East District allows private merchants to settle in and sell some cheap and cheap products.
The West District is similar to the shopping streets in first- and second-tier cities, mainly to facilitate the entry of some big brand products.
The role played by Alibaba is more similar to that of an agent or a general wholesaler.
The plan given by Changtian Technology is that Changtian Technology has the final say in the construction of the entire commercial street, and Ali has no say.
But how many shops does Alibaba need, how many buildings does it need, and which street of shops does it need? These are all negotiable.
Changtian Technology really needs Alibaba to integrate resources and enter the virtual business.
But for the future healthy development of commercial streets, Alibaba must not be allowed to form a monopoly in them.
Eggs cannot be put in the same basket.
Chen Xiao understands this truth.
Because according to the character of a businessman.
You never know when the backlash will come.
The profit distribution between both parties is also very simple.
It’s rent plus profit sharing.
Changtian Technology will charge some rent based on the area and location of the shop.
Of course, these rents are too small compared to those of physical stores in real life, and are only equivalent to a threshold fee.
The most important source of profit is the share of sales profits.
In order to maintain this ecological chain and to enable the virtual commercial street to go further.
Changtian Technology will not kill the goose to lay eggs, and will benefit businesses.
Therefore, in the agreement, Changtian Technology Engineer and Ali have signed a tripartite agreement.
The three parties agree on profits.
The total profit extracted from merchants between Changtian Technology and Ali will not exceed 5%.
But Ali can charge some management fees from merchants.
The management fee will be discussed later between Alibaba and the merchant.
Changtian Technology's system will conduct statistics and analysis on the annual sales of merchants.
Set a cap on administrative expenses based on the previous year's profit.
In order to safeguard Alibaba's interests, we also make use of the resources of a large number of merchants in Alibaba's hands and Alibaba's mature online sales management methods.
Changtian Technology can sign a long-term lease contract with Ali Chang.
This time can last 10 or even 20 years.
And the location in the core area of the commercial street was leased to Ali.
At the same time, it is also to maintain the development of the entire commercial street ecology.
There is no uniqueness in the agreement.
In other words, the commercial street may introduce other independent merchants or business groups in the future.
Feng Yuan watched Changtian Technology come up with such an agreement.
Something touched my heart.
It should be said that Changtian Technology is pursuing the maximization of profits.
This doesn't seem to be the case.
Because the rent sold by Changtian Technology and the profit sharing are not higher than the conditions just proposed by Feng Yuan.
If Chen Xiao chooses to cooperate in development and owns 30% of the shares, the profits obtained will definitely be much greater than the current conditions proposed by Changxing Technology.
But Chen Xiao did not do this.
Feng Yuan can understand.
Compared to short-term profits.
What Changtian Technology values is even more is the creation of an ecological chain.
As long as the ecological chain is successfully built, profits will come sooner or later.
Now the ball has come to Feng Yuan's side.
According to the cooperation conditions of Changtian Technology, Ali does not have the uniqueness and the absolute right to speak.
This made Ali very unhappy.
An example can describe Ali's current situation.
The plan proposed by Ali is similar to Ali being a shareholder of Central Street in Bingcheng, Chunxi Road in Rongcheng, or Jinling Road in Shanghai.
Whichever store he wants to move in, he can move in, and any store he doesn't want to move in can just leave.
Not only can you get the rent of the store, but you can also get commission from the store's sales according to the sales volume.
There is also the plan provided by Changtian Technology, which instantly reduced Ali's specifications to be similar to a supermarket.
The supermarket wants to rent a house from Changtian Technology, but it can only rent one or two rooms.
The sellers under Alibaba are similar to the merchants selling products on supermarket shelves.
Such disparity.
It's definitely unacceptable.
But Feng Yuan looked at Chen Xiao and laughed.
Very clear in my heart.
The fate of Ali may be related to his decision today.
Ali has resources in his hands.
Of course, you can very proudly refuse to cooperate with Changtian Technology.
In this way, for a long time, the virtual commercial street was an empty shell.
It is also impossible for users to buy what they want in the virtual shopping street.
But things must move forward in twists and turns, just like when Feng Yuan founded Alibaba.
Feng Yuan believes that the historical trend is rolling forward.
The virtual commercial street developed by Changtian Technology has no business or merchants even if it lasts for one, two or three years.
When the number of users of wearable devices increases.
There will definitely be merchants moving in.
The commercial street will also be prosperous.
The traditional online shopping model will definitely be replaced by virtual commercial streets.
Destiny lies ahead.
There is no room for hesitation or retreat.
If a monopoly cannot be achieved, then we must seize the opportunity as soon as possible.
We need to make Ali as a whole brand appear in the virtual business world.
This brand must be of high quality and high experience!
Before other shopping websites or brand companies could react, Ali must play this card as soon as possible.
And we must establish Ali's advantages in the virtual shopping street as soon as possible.
The think tank accompanying Feng Yuan was very anxious.
This time they approached Changtian Technology to discuss cooperation because they firmly believed that Ali had an absolute advantage and Changtian Technology would definitely compromise.
But judging from Feng Yuan's expression.
On the contrary, Feng Yuan is likely to compromise.
Feng Yuan knew what his subordinate was going to say.
He waved his hand and told his subordinates to stop.
This is a challenge and an opportunity for myself and Alibaba as a whole.
Feng Yuan smiled and said to Chen Xiao: "Then the cooperation plan between us will be formulated in accordance with your company's framework agreement."
Chen Xiao stood up, took the initiative to shake Feng Yuan's hand and said, "Happy cooperation!"
A person will live in multiple parallel worlds.
Chen Xiao hopes that in his own parallel world, private companies in Xia State, especially technology and Internet private companies, would best take advantage of this prime time of the rise of Xia State's Internet and computer technology to establish a foothold in the world as soon as possible and occupy a leading position in the world.
Many markets.
After Feng Yuan and Chen Xiao shook hands, the two of them had a tacit understanding.
Perhaps the cooperation between the two companies can take this opportunity to promote the simple Xia Guo manufacturing into Xia Guo creation and Xia Guo brand.
This is particularly important in the clothing, textile, bag and cosmetics industries.
Feng Yuan has been working in the field of online shopping for so many years.
Taiye knew that Xia's economic development was not easy, and that the textile industry was not easy either.
In all the prosperous neighborhoods, 99.9% of all kinds of beautiful, big-name and expensive clothes are produced by Xia Guo.
However, Xia Guo's manufacturers may only make a small part of the money in this link.
For example, for a dress worth 1,000 yuan, Xia Guo's manufacturer may only make less than 20 yuan.
And the huge profits have been taken away by the clothing brands, that is, those Western companies.
In the virtual business district.
Users will completely change their previous shopping patterns.
You will have access to more and better products.
This is the golden period for the Xia Guo brand to break through.
After Chen Xiao and Feng Yuan signed a cooperation agreement.
The teams from both sides immediately put aside the dispute, contacted each other, and repeatedly discussed the first phase of the commercial district development.
After half a month of consultation.
Both parties agreed to build a commercial block with a maximum of two floors based on a building that combines modern trends with ancient styles.
Moreover, the first and second floors are not ascended from the stairs inside a traditional shopping mall, but through outdoor stairs and corridors.
This ancient-style commercial district is named Qishui Street Commercial District.
There are two main reasons for building only two floors and abandoning the traditional commercial building model.
One is to ensure that the environment of Qishui Street is beautiful, fashionable and ancient, so as to attract more users.
The virtual world is not only a place for shopping, but also a place for people to enjoy another kind of life.
Iconic buildings and special architectural styles attract everyone, and the key is also the place where users check in.
The second type is that both Ali and Changtian Technology have absorbed the shortcomings of the traditional business model.
There are two traditional business models.
One is the shops on the street, which are very convenient for customers. They can see what the shops sell and go in to buy them.
The other type is a large shopping mall.
Customers enter the mall and go upstairs to buy what they need in the mall's stores.
Obviously the first model is more in line with consumers' shopping habits, while the second model brings a burden to consumers.
The most indispensable thing in the virtual world is land.
Different places can be switched through login points without walking.
Therefore, the construction of Qishui Street directly abandoned large shopping malls and adopted the model of street shopping malls.
After the plan is finalized.
The two parties will work separately.
The technical staff of Changtian Technology are very fast.
The overall planning and design of Qishui Street was completed within a week.
The modeling was completed in two weeks, and a modern-style Qishui Street with an ancient poem and a few lines from Gushan was completed.
When Chen Xiao, Wen Qi and others used ecological equipment to enter the Qishui Village commercial district.
Everyone was delighted and extremely surprised.
Where is the virtual world here?
There is absolutely no difference from the real world.
But whether it is the architectural style or the feeling that comes to people, it is more impressive than any commercial district.
Wen Qi even said: "Even if this is not a commercial store, but just a scenic spot, I think it will be very popular."
Wen Qi was even imagining the countless tourists shopping here. What kind of bustling scene would it be like?
At the same time, Ali's speed is also very fast.
Ali directly selected more than 3,000 high-quality sellers at the enterprise level in online stores and sent a dedicated technical team to provide free technical and equipment support.
The device support also includes the wearable devices and product input devices that Ali purchased from Changtian Technology.
Ali encourages these more than 3,000 companies to actively develop virtual malls while running TM mall stores.
Alibaba has even given more than 3,000 companies a series of support measures, including two years of free virtual shopping block rent, two years of free technical support, two years of free store decoration, and more.
That is to say, these enterprises can enter the virtual commercial district at almost zero cost.
If someone else asks the company to do this.
Then everyone may doubt it and not believe it.
But this time the virtual business district is endorsed by Ali and Changtian Technology, two leading companies.
And it does not add any burden or cost to the seller.
Everyone just needs to display their existing products in the virtual neighborhood.
So more than 3,000 companies are very active.
April 13, 2016.
This is a very special day.
After Changtian Technology expanded production and capacity, its sales of wearable devices have reached 23 million units.
It has truly become the best-selling wearable device in the world.
Of these more than 23 million devices, no less than 5 million have been shipped overseas.
Some of them are used by overseas Chinese, and some are used by overseas non-Chinese users.
In Southeast Asia and Europe, companies or communication companies in many countries are urgently negotiating with Hanhai Technology to discuss whether they can introduce wearable devices.
Some domestic equipment flows into overseas markets.
Chen Xiao also turned a blind eye.
And requires the server to treat everyone equally and provide services to everyone.
On April 13, more than 3,000 merchants had all settled in.
The Qishui Village commercial district in the virtual world is officially open to the public.
Changtian Technology and Ali publicized this news through various methods and encouraged users to go shopping in the virtual street.
And this day.
Changtian Technology and Ali also directly subsidize merchants and users with no less than 20 billion in substantive subsidies in the form of cash rebates.
Made something popular.
The best way and the most basic way is to provide subsidies.
The 20 billion subsidy is real.
For example, a bag of the same brand.
You may pay 6,000 yuan to buy it in a physical store, but after receiving the subsidy, it may only cost 4,000 to 5,000 yuan if you buy it in a virtual neighborhood.
This kind of real discount greatly stimulates users' shopping enthusiasm.
In addition, most of the users who have money to buy Zemeng wearable devices have not bad family conditions and are very eager to shop.
So at 2 pm on April 13, 2016, when Qishui Shopping Street opened.
At the same time, 10.84 million people logged into the virtual area.
Wen Qi, who was in the virtual neighborhood, saw so many tourists that she felt a little confused.
I thought I was at Jinling Road in Shanghai.
Of course, the number of tourists that can exist in any neighborhood is also limited.
Even in the virtual world, it is impossible for 10 million users to appear in physical form.
Therefore, the virtual blocks are divided according to the provinces of Xia Kingdom. There are more than 30 Qishui commercial blocks in total.
If you don't select a province intentionally, you will be logged into the commercial region where your actual province is located.
Users who had just entered the commercial street were even more stunned when they saw such a gorgeous and ancient commercial street.