Wang Xiaochuan three errors and the essence of hardware Entrepreneurship

three formalism trap

 

in the field of hardware entrepreneurship constitutes a trap of three formalism

in the Internet field, we usually think of the book like spirit, in the field of entrepreneurship in the hardware constitutes the three formalism trap.

first, free and low price is the biggest mistake in hardware entrepreneurship. The business model of hardware and software itself is not the same. In the Internet Co to do the software, when your user geometric series of growth, the cost is basically the same; hardware inventory pressure, cost, does not meet this condition. At the same time, the price is more dangerous than the free formulation, the price is directly connected to the low cost of hardware services. Kindle reader makes Amason’s sales increase by 20%. For Amazon, low-cost is a marketing strategy, rather than a new business model.

a few days ago I told a group of investors to sell that chat, I said you are against your investment team now, because he advocated in his team to reduce the price down, down to 200 dollars or less, the team said no problem, even down to less than 200, the profit rate is above 1/3. This is very dangerous, because we sell scales, not to mention the previous traditional hardware tools, but to provide value-added services in the back, can sell expensive, in my understanding, it is a core competitiveness, rather than cheaper to impress users. Our core is to promote the competitiveness of its functions and services, rather than go to the free logic of the traditional software internet. Do a prophecy, if the same function of the two products, we should be able to fight after the higher price, not to go cheap.

second, fast iteration is a big risk. Software update fast low cost. But the hardware to seek more iterative release, can only be a far cry from the quality of the required. Hardware requirements of the process, even apple, its software update speed is very fast, but the hardware will send one to two a year.

third, early into the community social. Even the smart bracelet, which is to understand the core functionality is to meet the needs of users. Today, most of the bracelet, due to the lack of core competencies, into the logic of the Internet to go too early into the social and community.

is not to say that it is necessary to avoid free, avoid rapid iteration, but these have great risks; nor does it constitute the core competitiveness of hardware startups.

to solve the connection problem

 

once the Internet, the hardware returned to the essence of the spirit of the Internet, not free, not iterative, but to solve the problem of asymmetric information

What is the nature of the

hardware once the Internet, the hardware back to the essence of the spirit of the Internet, not free, not iterative, but to solve the problem of asymmetric information.

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