BBK, founded in 1995, is a legendary company in the industry. From the earliest bully learning machine, to DVD player, telephone, MP3 player, point reader, and then to OPPO, vivo mobile phone, little genius phone watch ... After many transformations, the company rarely succeeded. BBK is one of them. Why is it successful?
Not long ago, at the internal sharing meeting of the third growth and innovation module of the college's Unbounded Consumption Innovation Camp, Zhao Hui, a classmate of the third Elvis Presley Radio, combined with his own personal experience and close observation, made his own interpretation and resumption of BBK's deep distribution system, military training methods and the core culture that has been successfully transformed many times.
As the second batch of Guan Peisheng who joined BBK 20 years ago, Zhao Hui's interpretation not only comes from the first-line experience, but also is refined through years of observation. This is not very long, but it is worth pondering and sharing with you.
Share | Zhao Hui, Chief Security Officer of Elvis Presley Radio, and the third participants of the Unbounded Consumer Innovation Camp for College Students.
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Twenty years ago, I joined BBK as the second batch of Guan Peisheng. My boss is Shen Jun from Procter & Gamble, and my boss is Duan Yongping. At that time, in the company, we often drank together, and Duan Yongping shared his thoughts and thoughts about the company with us every week. In 2007 and 2008, Duan Yongping began to live in the United States, and it was difficult to see him again. BBK is a legendary company in the industry and has trained many entrepreneurs. The three most famous people are Chen Mingyong, Shen Wei and Jin Zhijiang. They are the bosses of OPPO, vivo and little genius, and their styles are completely different.
Today, I want to share with you BBK's distribution system and the core culture and practice behind BBK's success.
Efficient system of "Ant Army"
In 2000, BBK's distribution system was very mature. Strictly speaking, this distribution system was established when Duan Yongping made the Little Overlord Learning Machine, and it has been used ever since.
At that time, BBK Group had three branches: AV factory (home audio-visual products), video game factory and telephone factory. At that time, the product market share of these three factories had reached the first or second place in the industry, basically above 20%, and reached 50% at the peak of the telephone factory.
The distribution system established by BBK covers first-class agent, second-class agent, third-class agent, fourth-class agent or last-class agent. The first-level agent is the provincial generation, and each province will have one; Secondary agents are responsible for prefecture-level cities; The third-level agent is responsible for the county; Four-level agents are responsible for villages and towns. At that time, there was no e-commerce, and BBK relied on this distribution system to deliver products to consumers.
There are two simplest dimensions to measure the distribution system: depth and breadth.
About depth. How deep can BBK distribution system be? For example, in 2000, the company will assign a local internship to each trained Guan Peisheng, and I will be in charge of two counties next to Shenyang. My job is to start from Shenyang every morning and take a lot of things such as billboards and banners to the county seat to sell. There are towns below the county level, and each town has at least four or five outlets.
In 2000, BBK has reached such a depth. Until now, OPPO, vivo and xiaotiancai have continued the whole set of sales channels, which has become BBK's natural advantage in competing with other companies in the field of electronic product sales.
About breadth. BBK has a complete agency system in every province, and the first-level agency can reach enough depth in every province, so BBK products can be found in any corner of China at that time. This was done 20 years ago, and it is even more so today.
1999, Shen Jun, former vice president of Procter & Gamble Company, came to BBK to upgrade and optimize the original depth distribution of BBK, and formed a set of standardized playing methods. We received a complete and systematic training.
In my opinion, it's like a group of ants constantly strengthening this system, making it stronger and making some relatively extensive practices more standardized. For example, at that time, the work at each point of sale was standardized. Everyone has a watch, and there may be six or seven movements on that watch. You must complete all these actions before you can go to the next point of sale.
How was the training done at that time? At first, at the headquarters in Chang 'an Town, Dongguan, we had classes for almost two months. Duan Yongping communicates with us, and Shen Jun is responsible for teaching us sales methods. After studying, we will take the train from Dongguan and go to a new city every day. When we arrive, we will give you a map and draw some streets on everyone's map. At that time, BBK's shops were mainly street shops. Almost every street has our stores, and every product line has many such stores, such as telephones and audio-visual products.
In the morning, we got off the train, had a simple breakfast and went to sweep the street. After sweeping the street, go back to the train for a meeting at night to summarize, and compare your own scanning data with the data in the company database to see if it is correct. If you find fraud, you will be severely punished. I went to bed after the meeting on the train, and then went to a new city the next day, so I ran to more than 30 cities in a row. BBK's system is somewhat similar to the military's style of play, and it is very mature.
I stayed in BBK for several years, and then I went to Hewlett-Packard Company. In 20 15, I returned to OPPO in another role and was responsible for OPPO's business in Thailand as a national representative. I also used this way to make the market share of OPPO mobile phone in Thailand reach 2 1% from 4% in more than three years, becoming the first brand in the mobile phone market in Thailand.
Other brands from BBK system, such as OPPO, vivo, realme, Little Genius, etc., almost all of them have the same style of play as BBK.
Of course, with the development of the times, the distribution system of BBK has also undergone great changes. In fact, this set of gameplay itself has no technical content. Its real role lies in adhering to some basic ideas and practices for many years. Any simple thing, if you can persist for many years, can see a change from quantitative change to qualitative change.
The core logic behind BBK's success.
In China, BBK is a very special company, which has achieved many successes in many fields. At first, BBK occupied a very high market share in VCD, DVD, home theater, wired telephone, cordless telephone and other markets, and finally withdrew because of the disappearance of the whole market. Later, BBK experienced many transformations, from mp3 and mp4 to vivo, from BBK repeater and point reader to little genius mobile phone watch, from VCD and DVD to OPPO ....................................................................................................................................
1 Responsibility and integrity
Responsibility and honesty are things that have been talked about many times, but how to understand them?
Let me give you an example. OV(OPPO and vivo) business is very profitable, and they are all high premium products. After we worked in the Thai market for two years, the local capital market found us and wanted us to go public in Thailand. At that time, we had a flow of more than 6 billion yuan a year and a good net profit.
At first, we were a little excited, because if we can get more capital, our business can become more lubricated, and we can get more wealth faster. But after we told the head office about this idea, we were severely criticized. As early as 20 years ago, the BBK system had very clear regulations, including the head office, which did not allow any subsidiary or agency to obtain wealth quickly through listing. Duan Yongping once made it very clear at an annual meeting that every penny of his money is earned by selling one machine after another (apart from personal investment, Duan is also a famous good investor).
This may be a duty, and everyone in the company is thinking about how to do the things in front of them well, instead of taking shortcuts.
There are also examples about honesty. For example, almost all suppliers in the field of mobile phones like to do business with OV, because OV never defaults on payment, or even prepays. Everyone's business is not good this year, and many suppliers of OPPO and vivo have received payment in advance. This is also the cultural embodiment behind BBK's success.
Dare to be the first in the world and strive for the first in the world.
BBK carried out this very thoroughly. It has never been an unconfirmed market, but it is a market that is expected to reach the scale of 1000 billion. At the same time, this market has not yet formed a giant monopoly, or only foreign brands.
After selecting the market, BBK can quickly take advantage of products, channels, marketing, advertising and other advantages to quickly gain market share. This kind of play works time and again. For example, although BBK is not the first company to make mobile phones, it has the highest share among the last four brands.
3 consumer orientation
This sounds simple, but to do it, it must be implemented in every link. In product research and development, BBK really puts "consumer orientation" into its bones.
Give two examples.
At that time, the biggest selling point of BBK VCD was that even the worst discs could be read, and the error correction ability was strong, because the market was full of cam—— at that time-reading and writing error correction ability was the most concerned by consumers. Take the mobile phone as an example. OPPO never blows parameters, its CPU may not be the best, but it first captures the pain points of two consumers, taking pictures and battery life, and then desperately solves and publicizes these two pain points. Until now, OPPO fast charging technology is also leading, which is the most typical consumption orientation.
The most basic thing to make consumer products is to meet users' needs and solve users' problems, instead of giving a bunch of parameters and a bunch of products.
4 Benefit sharing
As a BBK employee who has held various roles, I have deep feelings about benefit sharing. For example, last year, a department manager of OPPO was in charge of more than a dozen people and won millions of year-end awards. The company will share 40%~60% of the net profit with employees.
At present, I know that there are two companies in China that can do this, one is BBK and the other is Huawei. Basically, the old employees of OV can get internal options after working hard in the company for several years. Like Huawei, the company will give new employees two choices: guarantee the basic annual salary or compete for the year-end bonus. Choosing the year-end award is to share the benefits with the company.
For another example, the internal mechanism of BBK is very similar to that of Huawei. All employees have options and employee stock ownership. At that time, Duan Yongping held more than 70% shares of all companies in BBK system, but now his shares in OPPO are zero, and his shares in vivo are only 65,438+00%. At that time, he distributed the equity to the founding team and key employees at a very low price to ensure that everyone had the motivation to struggle, even though BBK was already a company with annual sales of 3.4 billion and net profit of 7.8 billion. Not many bosses in China can do this.
5 school recruit
There is a big problem with BBK's system, which may have been clearly seen by the company's management 20 years ago. BBK has a good profit sharing mechanism, and their agents are very stable, especially some first-class agents. From the bully business to BBK business, and now to OPPO and vivo business, they are all old and rich, and when they have money, they gradually lose motivation.
Therefore, BBK has been insisting on school recruitment for many years, recruiting 985, 2 1 1 graduates, and conducting unified training management after recruitment. The training method I mentioned earlier has lasted for 20 years and has basically not been broken. Even in bad years, BBK has been recruiting students. At present, the general managers and traders of provincial companies of OPPO and vivo are the third or fourth generation recruited at the beginning, and they are still around 30 to 35 years old.
In my opinion, the only way for an enterprise to maintain its long-term vitality is school recruitment. Of course, the premise is to have a very good training system. On this basis, we can really train these young people into our own people.