---
title: "He Zuqi: My Xianyu Jishen Sold Zero on Taobao, Why Is O2O So Popular?"
description: "My first lesson from entrepreneurship is: you must grasp the pulse of the industry, seize the chain of the market, and build the root of the product. Industry, market, and product are a trinity, not凭空而来 or taken for granted. In simple terms, it's about doing what you know. My second lesson is: you must try every possible way to do '+', various kinds of '+', not just the conceptual or superficial 'Internet+'. This is the key step to entering users' lifestyles and the demand chain. My third lesson: the essence of O2O is community thinking, tribe thinking, and the integration of production, supply, and consumption."
author: "何足奇"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-10-19"
language: "en"
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# He Zuqi: My Xianyu Jishen Sold Zero on Taobao, Why Is O2O So Popular?

> My first lesson from entrepreneurship is: you must grasp the pulse of the industry, seize the chain of the market, and build the root of the product. Industry, market, and product are a trinity, not凭空而来 or taken for granted. In simple terms, it's about doing what you know. My second lesson is: you must try every possible way to do '+', various kinds of '+', not just the conceptual or superficial 'Internet+'. This is the key step to entering users' lifestyles and the demand chain. My third lesson: the essence of O2O is community thinking, tribe thinking, and the integration of production, supply, and consumption.

My first lesson from entrepreneurship is: you must grasp the pulse of the industry, seize the chain of the market, and build the root of the product. Industry, market, and product are a trinity, not凭空而来 or taken for granted.
In simple terms, this lesson is: do what you know, not what you don't.
Many people are starting businesses, working on business models, products, and promotions, but if they cannot accurately grasp the industry's pulse, precisely build the market chain, effectively create products, and form a sustainable value chain, success is hard to achieve.
My second lesson is: you must try every possible way to do '+', various kinds of '+', not just the conceptual or superficial 'Internet+'. This is the key step to entering users' lifestyles and the demand chain. Use increments to drive existing stock from the demand chain.
My third lesson: the essence of O2O is community thinking, tribe thinking, and the integration of production, supply, and consumption.
Please note, I use 'production-supply-consumption' here, not 'production-supply-marketing'.
I am in the aquatic products industry, having crossed over from baijiu to aquatic products, and was fortunate to be trained at Zhangzidao, a leading Chinese aquatic company. Since then, I have been serving China's aquatic industry.
I am familiar with the mechanisms and paths of China's aquatic industry. Therefore, my entrepreneurship started with the largest and most economically valuable category in the aquatic industry—sea cucumber.
From consulting to practice, from theory to pragmatism, the gap is huge. Fortunately, I accumulated valuable operational experience at Zhangzidao.
Therefore, before Xianyu officially entered the market, I used the method of connection to do a round of small tests. In 50 days, Xianyu Jishen sold 10,000 boxes, quickly tearing open the market.
Product testing is essentially testing the waters. Many companies are doing this now, including many classic cases done by Teacher Ding Ding.
After product testing, we began to plan our strategy. We determined:
**1. Seize the opportunities arising from industry deconstruction and reconstruction, consumption upgrades, and increasingly strengthened industry supervision. Use mobile internet marketing technology to quickly cross borders, iterate, and update main products in segmented aquatic categories, efficiently integrate industry resources, and develop rapidly.**
**2. Build an innovative operation model for China's aquatic industry internet based on a smart manufacturing platform and driven by industrial finance.**
**3. Concentrate superior resources to quickly enter the market with the sea cucumber single product, integrate resources to complete the industry chain layout, rapidly expand to all categories of aquatic products, and build a platform for incubating aquatic products with Chinese characteristics.**
This is our top-level design, just these three sentences. Because I have almost all the data on the aquatic industry and have a consulting team with full knowledge chains including planning, design, promotion, and data, we quickly found the path to rapid growth.
Understand the industry, find the market path, and the rest is product creation. Let me focus on my product.
What is an ultimate product? I think it's not about appearance or concept. It must have a strong ability to attract and retain consumers, strong extensibility, the ability to break through the sky with one thrust, or the power to sweep the market.
Sea cucumber is an industry with an output value exceeding 100 billion yuan. But sea cucumber is a product with extremely asymmetric information. This category grew during the era of 'three public consumptions' (official receptions, official vehicles, and official travel). With restrictions on such consumption, the industry and category have fallen into unprecedented difficulties.
Sea cucumber prices range from a few hundred yuan to tens of thousands of yuan, making it hard for consumers to choose. The sea cucumber industry has actually fallen into a credibility crisis.
After nearly a decade of development, the products are still the same old three: ready-to-eat, salted, and light-dried. Almost all sea cucumber companies have noticed the difficulty of product convenience and ease of consumption, but no company has built a strong competitive strategy on convenience and ease of consumption.
In the development of Xianyu Jishen, we established the product concept of 'ultimate absorption, convenient nourishment' based on industry and market pain points, resolutely creating convenient room-temperature products, convenient packaging, and convenient consumption methods.
My standard for a good product is: does it have a strong ability to attract and retain consumers, and strong extensibility?
Here, cost-performance is only one element; the key is the product's credibility, sustainability, category power, and brand power. Overall, the leap of Xianyu Jishen from 0 to 1 follows the routine from users to products, from increments to existing stock, from individuals to organizations, from leaders to teams, from connection to data.
Users are from the first round of testing, a routine learned from Xiaomi; products are created through smart manufacturing. This content is not popular, so I won't say much. But product smart manufacturing is very critical; it is the strategy, the starting point, and for some companies wanting to enter, it may be everything.
All product innovation is based on insight into the existing market, meeting the needs of upgrading, or satisfying the business opportunities seen by entrepreneurs. That is, making increments.
But we see many crowdfunded products die after a flash in the pan; many famous experts, after overdrawing their social circles, also disappear.
If increments cannot stimulate and drive existing stock, then such increments are like fireworks.
Where is the biggest trap of the internet? I think it's the illusion of increments. Especially in some weak industries. Many wine merchants and marketing experts here will resonate with this.
My Xianyu uses products to connect, build communities, and form communities, thereby creating increments.
But all our resources are allocated to stimulating existing stock offline.
In the mobile internet era, the operation of existing stock for traditional enterprises has become a major problem. Sorting and mining existing stock confuses many companies. Facing existing customers and markets, they don't know what to do, and in relatively calm and stable markets, ignoring old stock seems beneficial for maintaining revenue and business volume.
Because they don't know how to do it, and think not doing it is better than doing it, existing stock operation has become a 'pseudo-proposition'.
But in reality, activating and reconstructing existing stock is a gold mine for enterprises. Haier's innovations in recent years, such as 'Ren Dan He Yi' (individual-unit combination), use organizational and process changes to activate existing markets and build new competitiveness. There is overlap between existing and incremental markets. If you create increments in the overlapping part, a new, more powerful market and model will be born.
Therefore, our operation at Xianyu is to activate existing stock through increments in the overlapping part; by breaking, reconstructing, integrating, and innovating the industry and market, we build a new operation model and growth method.
My Xianyu Jishen can be said to have the highest cost-performance in China. How high? No sea cucumber company dares to price it this way; even if they did, they couldn't sell it. So this single product quickly broke through. This breakthrough was not online, but offline. We seized the opportunity of the sluggish high-end liquor market, embedded our product into the channels of famous liquor super-distributors, and made Xianyu Jishen a lubricant for famous liquor.
In April, we opened a store on Taobao, but it was just for show. Offline sales now exceed 10 million yuan per month, and it has truly grown into a super single product. This existing stock does not exist in the traditional sea cucumber market, but in the new market of upgraded business consumption and health consumption!
With the breakthrough of Xianyu Jishen, we have actually built a community integrating production and consumption.
To fill the gap left by mid-to-high-end sea cucumber consumption, we launched a new product in July: wine-flavored sea bass. Sea bass is an unremarkable fish. It has always been farmed, operated, and sold by individual households. To make this fish good, we almost used all industry resources, tested hundreds of fish, and finally created a convenient product that is white, tender, and smooth.
How good is this fish? So far, anyone who has tasted it immediately becomes a fan and promoter. When it launched in July, it sold over 100,000 units, and sales have continued since. Now three factories produce customized products for us.
The routine of Xianyu Jishen is to release the dividends of traditional channels. So many liquor merchants can't sell high-end liquor; what to do? I use sea cucumber to help, lubricate, and release the dividends of liquor super-distributors. Therefore, the platform dealers of Xianyu Jishen are all high-quality distributors. Individual dealers' monthly sales are in the millions.
The routine of Xianyu Sea Bass is typical experience marketing. Through community experience and user word-of-mouth, we form market momentum. In fact, we are moving various online routines offline to play.
That's why we have zero sales on Taobao, but offline communities and communities are extremely hot.
Why does this change happen? I think marketing has undergone a fundamental change: a great reversal from supply chain to demand chain. In the past, supply determined demand; now demand determines supply, and the entire chain has reversed.
The power of the demand chain lies in its ability to connect the downstream, midstream, and upstream of the industry from the opposite direction, forming a reversal force. Looking at the demand chain from this perspective, we can clearly see that e-commerce, especially consumer internet or various micro-businesses, cannot solve the task of building a demand chain.
In a word, we actually rely on our precise insight into the aquatic industry, attack from the demand chain, and use extreme single products and the release of channel dividends to form momentum for rapid growth.
This is how we do it:
First, use social media marketing to create hotspots and seize the windfall of categories or market segments;
Second, use community connections to build organized, systematic, interactive, and linked communities. Such communities start with play, then business relationships, and finally form value;
Third, we must find a foothold in the release of dividends from traditional channels and terminals. The importance of traditional channels is showing after the internet bubble recedes. The connection between traditional channels and various e-commerce will become the main force in building the demand chain.
The demand chain may manifest as a circle, a tribe, or a community. But be careful: this circle, tribe, or community must be sustainable and continuously upgraded; it has a life cycle; it is not a flash in the pan.
So what is a demand chain? Based on my current practice, the demand chain is to let your products, brands, and services participate in others' business methods and lifestyles.
**Please note, the route from product to brand to service is very important. If you cannot establish this route, you often fail at the last step.**
So building a demand chain seems product-centric, but its essence is user needs. And this demand has continuity. It continues the product traits and brand characteristics of 'yesterday', 'today', and 'tomorrow'.
Therefore, when you think you have insight into a huge blue ocean market and grasp a huge demand, if you cannot build a value chain from 'yesterday' to 'today' to 'tomorrow' in the systematic operation of products and brands, the demand is still just demand, still fragments, and cannot form a demand chain.
Building the demand chain is the key strategy for our offline O2O popularity, and it is also the code for our fission from 0 to 1. I don't know if this counts as internet thinking; please, teachers and experts, correct me!
Teacher Liu Chunxiong's comments:
I appreciate He Zuqi for the following points:
First, once he recognizes the internet era, he throws himself into it without hesitation. He doesn't wait until he fully understands; he acts and thinks simultaneously, shooting at moving targets, and iterating constantly. Only when everyone is unclear can you enjoy innovation dividends. Many things He Zuqi did, if delayed by a few months, might not have been possible. He Zuqi is a beneficiary of innovation dividends in the internet era.
Second, he must create ultimate products and hit products. Not all of He Zuqi's products succeed, but several have. What is an ultimate product? It must be loved at first taste. In recent days, several friends have asked me for He Zuqi's products.
Third, he dares to offer free trials, but he finds the right KOLs. He Zuqi gave his first batch of products to nearly 400 KOLs, and it was an instant hit.
Fourth, he combines online and offline. Online gathers and disperses quickly; offline has sustainability and inheritance, converting temporary online traffic into sustained offline traffic.
Fifth, cross-border integration brings increments. All industries are difficult, and preserving existing stock is hard, but cross-border may bring incremental momentum, so He Zuqi cooperates across industries.
Traditional industries still have integration space. Traditional methods are hard to integrate, but internet integration is relatively easy. Everyone can actually integrate across borders with He Zuqi.
**-END-**
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