At the Yuelu Summit on the afternoon of September 8, Liu Huiyu, Vice President of Xingsheng Youxuan, delivered a speech of about 30 minutes. This was the second public sharing by Xingsheng Youxuan in the past two years. Liu Huiyu disclosed some core data about Xingsheng Youxuan's current operations: Business coverage: 13 provinces, 161 prefecture-level cities, 938 county-level cities, 4,777 townships, and 31,405 villages; Store expansion: over 300,000 stores, with 8,000 to 10,000 new stores added weekly; National average daily orders: 8 million orders; Projected 2020 GMV: 40 billion yuan. Liu Huiyu also explicitly listed Xingsheng Youxuan's investors for the first time: Capital Today, Tencent, Primavera Capital, KKR, Zhongding Venture Capital, Sequoia Capital, Tiger Fund, Temasek, etc. The list was followed by an ellipsis in the speech. In addition, during the morning session of the Yuelu Summit, Xu Xin of Capital Today stated that Capital Today had "increased its stake five times in two years, investing a total of 1.15 billion yuan" in Xingsheng Youxuan, and that the return to capital was "growing faster than e-commerce," with a "compound growth rate of 602%." The following is the full text of Liu Huiyu's speech: I am Liu Huiyu from Xingsheng Youxuan. This is my second time sharing Xingsheng Youxuan's online and offline development in a public setting. Xingsheng Youxuan is a community e-commerce platform that serves household consumers, addressing their daily needs for fresh vegetables, fruits, daily necessities, and more. Through community small stores, we adopt a pre-sale plus self-pickup model to meet consumer needs. This is the core business model of Xingsheng Youxuan. To date, Xingsheng Youxuan has expanded to 13 provinces including Hunan, Hubei, Jiangxi, Guangdong, etc., covering 161 prefecture-level cities, 938 county-level cities, 4,777 townships, and 31,405 villages. Many of you here may have heard of us or are already using our services. Currently, we have developed over 300,000 stores nationwide, and we are growing at a rate of 8,000 to 10,000 new stores per week. Currently, Xingsheng Youxuan's national average daily orders have exceeded 8 million. Our system was launched in 2017. In 2017, we achieved 36 million yuan in sales; in 2018, 800 million; in 2019, we exceeded 10 billion; and this year, we expect our sales to exceed 40 billion yuan. While growing rapidly, we have also received investments from top domestic and international investment institutions, including Capital Today, Tencent, Primavera Capital, KKR, Zhongding Venture Capital, Sequoia Capital, Tiger Fund, Temasek, and more than ten other investment institutions. Many friends or those present may be thinking: Xingsheng Youxuan seems to have grown large or done well, but looking back, what is the growth logic behind Xingsheng Youxuan? What model has allowed us to emerge quickly and grow strong? We all know that for a good business model to grow, it must answer the question: for whom do we solve what problem? From 0 to 1, then from 1 to 100, and then into rapid development, what problems have we solved for our partners and customers? I would like to share our entire entrepreneurial journey with you. On June 11, we sold a type of lychee called Feizixiao. Its biggest feature is small pit, thick flesh, juicy, and large fruit shape, so many people like to eat it. What is the biggest problem in agriculture? In our view, the biggest problem in agriculture is information asymmetry. That is, when agricultural products sell well, farmers may not have planted them; when they plant a lot, they cannot sell them. This is the current situation of agricultural products. Information asymmetry leads to unsold agricultural products, which is also the practical problem faced by the vast majority of farmers in China. Xingsheng Youxuan's model precisely solves this problem. We make information transparent and symmetrical, and make channels smooth. On June 11, in one day, we sold 100,000 portions of lychee, about 110 tons, basically the scale of 500-600 mu of lychee. It may have taken less than a day, about ten hours. Therefore, Xingsheng Youxuan will have a profound impact on Chinese agriculture. I remember in the early days of our entrepreneurship, around 2016-2017, when we sold Hami melons, selling 300-400 jin a day was considered good. Because in the traditional field, selling 300-400 jin of a single product a day is also good. But today, we can easily sell 100,000 jin of a single product a day, and that's just in one province. So, the greatest value of Xingsheng Youxuan to Chinese agriculture is to make information more symmetrical and solve the problem of unsold agricultural products. This is the first case I want to share. In the past year, we have also made many attempts in targeted poverty alleviation. This includes Longshan lily, Mayang yellow peach, Guzhang Maojian tea, and Huayuan's Denong beef. I have been to Huayuan. The biggest feature of this place is beautiful mountains, water, and air. The grass there is particularly lush, so the cattle raised there are excellent, with very good quality, and the beef tastes great. But previously, their sales channels were traditional: they had goods first and then waited for customers. After cooperating with Xingsheng Youxuan, we sold Denong beef to thousands of households through a pre-sale model. Such cases happen every day at Xingsheng Youxuan. In the past year, in the direction of targeted poverty alleviation, we have cumulatively sold about 11 million products, with cumulative sales exceeding 100 million yuan. Xingsheng Youxuan is playing an increasingly important role in agriculture, so cooperating with Xingsheng Youxuan is a very good way for agricultural products. The second thing I want to talk about is the manufacturing industry. This picture is familiar to everyone: electric fans are a very essential commodity in our daily lives, and they are seasonal. As of August this year, we have cumulatively sold over 1.3 million electric fans, including brands like Midea, Gree, and Airmate. So we have been thinking: what is the greatest value of Xingsheng Youxuan to the manufacturing industry, now and even in the future? We believe it is that Xingsheng Youxuan will greatly reduce manufacturing costs. Why? First, we can improve manufacturing efficiency. Previously, it might take one to two months or even longer to produce something and sell it. Now, many large factories cooperate with Xingsheng, allowing them to produce in advance or even produce while selling. This is Xingsheng Youxuan's greatest contribution to manufacturing. Second, Xingsheng Youxuan will greatly reduce manufacturing costs, including turnover costs and capital costs. This is our contribution to the entire manufacturing industry. This product is familiar to everyone: storage boxes, used in every household. We call it the artifact that can instantly make a home tidy. Why? Because many homes are messy. There are two ways to make it not messy: the first is to clean it up, and the second is to put all the messy things in a box. Don't underestimate such a product. This year, we have cumulatively sold 1.5 million units, which is a spectacular thing. In our view, this is just the beginning. So, Xingsheng Youxuan is rapidly having an impact on both Chinese agriculture and manufacturing. In our minds, we define ourselves as large agriculture and large manufacturing. Large agriculture includes farming, forestry, animal husbandry, sideline production, and fishery. We have laid out all these sectors on our platform and achieved very good results. Large manufacturing refers to all commodities that require secondary processing. The core logic is that Xingsheng Youxuan's business model can help our upstream cut out intermediate links, improve efficiency, and reduce capital operation costs. My second sharing is about the contribution to offline stores. This is a very great group. Under the building of every consumer, we can see various convenience stores. Here I want to share two cases. The first is a store in Changsha city. The owner's surname is Chen. Before joining Xingsheng Youxuan, Boss Chen was just an ordinary store owner. After joining, Xingsheng Youxuan brings him an income of about 8,000 to 10,000 yuan per month. An ordinary store owner can increase income by 8,000 to 10,000 yuan a month, which is a remarkable thing. At the same time, Xingsheng Youxuan's model is pre-sale plus self-pickup, meaning all customers who order online must go to the store to pick up their goods, which increases foot traffic for offline stores. What is behind foot traffic? Business. So, the store's offline business has increased by about 20%. It is a win-win business both online and offline. The second store is a very rural store. The typical rural store sells betel nut, cigarettes, alcohol, peanuts, and sunflower seeds, occasionally some cooked food, and a large number of knockoff brands, but the prices are not cheap. This is the current situation of many rural markets in China. What changes have occurred after joining Xingsheng Youxuan? First, income increased by supplementing the product structure. Because many rural stores have very simple product structures. Second, many rural stores cannot handle certain product categories, such as fresh produce and seafood. Xingsheng Youxuan can effectively supplement this product structure. Previously, our inherent impression was that rural people had no money, but after personal experience, we found that has changed. They are particularly wealthy and want a better life. In the trend of consumption upgrading, rural people's expectations for product quality and experience are completely different from before. Through this model, Xingsheng Youxuan enables rural stores to better serve consumers, making their business better and customer loyalty stronger. This is also the core reason why Xingsheng Youxuan has developed a large number of county and village stores. So, we say that Xingsheng Youxuan's value to offline stores in China is real. How large is this group in China? According to statistics, the entire 1.4 billion people in China are served by more than 6 million stores. Therefore, an important mission of Xingsheng Youxuan is to serve these stores well. For consumers, what do we care about most? Undoubtedly, it is high quality and low price. What is high quality? It means the product quality must be good. What is low price? It means the price must be cheap. Why can Xingsheng Youxuan achieve this? First, all our products are carefully selected; second, we use a pre-sale mechanism, so we greatly reduce costs, especially losses; third, through centralized procurement, with large scale, we have price advantages. Second, what do consumers want? It is timely delivery. Consumers have a mindset called certain logistics arrival. That is, if you promise to deliver at a certain time, you must deliver at that time. This is certain delivery. Currently, Xingsheng Youxuan's logistics across China are all self-built. We call it logistics 211. That is, if consumers place orders before 11:00 PM tonight, we ensure they can pick up their goods at the self-pickup store before 11:00 AM the next day. We cannot yet achieve 100%, but we are striving for 100%. This delivery applies whether it is a provincial capital, prefecture-level city, township, or village. This is our core advantage. For the third consumer experience, I want to share a story. The person in the picture is a rural primary school teacher. Previously, they had to ride dozens of kilometers on mountain roads to buy vegetables and fruits, buying enough for a week, and by the end, many vegetables were not fresh. Later, we opened a store next to their school. They didn't need to go out at all; the goods were delivered to the school. Xingsheng Youxuan is doing something that changes consumers' lifestyles, and we think this is particularly great. Many entrepreneurial partners ask us: How can I build a company? How can I find the pain point? How can I seize today's new opportunities? We believe the original intention must not change. Every entrepreneur must remember: for whom are you doing this today? If we do it for ourselves, we are just working; if we do it for society, this thing is bound to be great. Since the founding of Xingsheng Youxuan, our group has established our mission, because any great company is driven by mission. Without a mission, the company cannot go far. At a very early stage, we determined Xingsheng Youxuan's three major missions: revive stores, empower upstream, and change consumer lifestyles. It is precisely because we have followed these three missions that Xingsheng Youxuan has achieved what it has today. But entrepreneurship is often a matter of life and death. Having a mission does not guarantee success. We must go through countless hardships, misunderstandings, and pain to get through. Our advice to our peers, especially our entrepreneurial partners, is: We believe there are two major logics for a startup company. The first is mission-driven, which is the platform model. That is, what great thing do we want to do, who will do it together, what problems to solve, for whom, and how big the problems are. The other is value-driven. Not everything in this world must be done on a huge scale to be beautiful. Many things can be done small and beautiful. Our advice is first, do it well. Use craftsmanship to polish our products and services. There are many such small and beautiful cases in Xingsheng Youxuan. Therefore, making products to the extreme always has a future; no one can replace that. Behind any extreme product are fans, which is our irreplaceability. Second, we can do services and make services excellent. When products and services are excellent, we can choose to cooperate with platforms. Society is increasingly specialized. No one can do everything in the industrial chain; we can only do one link. As long as each link is deep enough, we will do well. Second, we call it do it deeply. Many entrepreneurial partners have the same problem: staying on the surface. They often stop thinking about a problem after a certain point, so the problem is not solved. So when we can focus on products or services, the next thing is to go deep enough. Only by going deep can we have greater opportunities. Third, do not aim for bigness. In fact, many companies and startup platforms did well in the early stages. We have been paying attention because we are also a startup and we make many mistakes. Fortunately, we have often come out of mistakes. We think that many times we fail because we spread the plate too wide, took too big steps, and the team and market couldn't keep up, so we died. Therefore, we believe that in the early stages of entrepreneurship, we must not aim for bigness. We must focus on making our products and services excellent. Because only by doing 0 to 1 well can we do 1 to 100. And as long as we can break through 0 to 1, 1 to 100 is not a problem. Along the way, Xingsheng Youxuan has made many mistakes and stepped on many pits. Many people may think Xingsheng Youxuan is so big, how could it grow so fast? Actually, we have also made many mistakes, endured countless days and nights, and had countless entanglements, pains, and tears. The pains you are experiencing may have been experienced by us, or we will continue to experience them in the future. But those who have been to Xingsheng Youxuan's headquarters can see a very motivational sentence: Life is only once for each of us, and we must use it to change the world. I think this is the temperament and mind that entrepreneurs should have. When an entrepreneur chooses this path, it is destined to be a road of no return. All our efforts must be for others, to achieve others, otherwise we cannot succeed. So when we embark on the path of entrepreneurship, we entrust our lives to entrepreneurship. We live to change the world. Thank you all. For the full speech, please watch the video below: Source: Retail and E-commerce Observation (ID: sqtggc)