“Internet +” became a national strategy of China in March this year. It is becoming a new economic trend in China, such as internet + market = Taobao, internet + shopping mall = JD.COM and internet + transportation = Uber.
As the founder of “Internet + furniture manufacturing”, Yang Dingping, chairman of Yulong Group, started to upgrade traditional manufacturing sector with internet two years ago.
In the exclusive interview with newsgd.com, Yang Dingping shared his opinion on the trend of “Internet +”.
“Internet +” drives industrial upgrading
IYATANG was founded in 2012. It boasts to be the pioneer in creating new sales pattern of furniture on internet.
“Old sales pattern results in high production cost, which has already fell behind the economic trend actually,” Yang said, “Internet + is the wave to future, it removes many intermediate steps (agent and rental shopping mall) between manufacturer and consumer, thus the cost can be reduced.”
In fact, Yang admitted that the limitation of traditional sales pattern forced them to do “Internet +” transformation, “we had to rely on agents to promote our goods under the old sales pattern, which means our fate was controlled by the agents practically, we had no idea whether our furniture were sent to the shopping mall or not.”
According to Yang, the major cost of furniture comes from circulation.
He added: “the biggest advantage of Internet + is we can promote our brand to consumers directly, instead of depending on dealers.”
It is estimated that price of furniture would have 50% decrease under the pattern of “Internet +”, because products are sent to consumers directly so that the circulation cost can be removed.
However, an old saying that coin always has two sides, as Yang’s concerned, fake product could be a potential risk to Internet +.
“Branding is necessary in internet era, which is based on quality of products and honesty to customers, but many e-commerce platforms are selling fake products,” Yang said, “Our government should strengthen punishment on fake product suppliers.”
Premier Li Keqiang once said Internet + has unlimited future with its unknown space. “The biggest characteristic of internet is its unknown future,” Yang gave his suggestion on Internet +, “In my opinion, Internet does not only bring changes to traditional manufacture, but also bring changes to many other factors.”
“It is no doubt that a platform of ‘internet +’ is developed by money, but no one have enough capital to develop a platform under regular concept of ‘Internet +’ so far.”
Different from other platform of “Internet +”, IYATANG not only combines internet with furniture, but also pluses Internet Finance (P2P) to relieve financial burden.
On one hand, IYATANG can solve the financial pressure through attracting outside investment from P2P, on the other hand, people who want to devote in furniture manufacture can apply soft loan from IYATANG and establish their shop on IYATANG, and display their products in offline experience store for free. All transactions are processed online and production sent to customers directly.
This mode guarantees that IYATANG has enough capital for development and also partners have passion for running their business.
“Innovation is necessary for running business, without innovation, you would die.” Indeed, “Internet +” offer a chance to traditional manufacture to renovate themselves.