On June 5th, 2012, CE Dongli held a new product release meeting of “New Era of Ztouch”, and launched a new official website product—Ztouch for the SMEs based on mobile devices including smart phone, etc.

The chairman of Sino-i Mr. P.H.Yu attended the launch event and annual meeting of CE Dongli. He didn’t focus on e-commerce as before, and brought us new enlightenment on seeing and understanding things.

“History, Situation, Market, Thing, Scholar” (all pronounce “Shi” in Chinese) on PPT made by Mr. P.H.Yu (Speech Record)

Today I will talk bout five concepts based on human. The five concepts reflect the process of CE from starting the digital commercial platform, opening of CALL CENTER, establishment of branches to doing mobile business. One must remove worry and fear and look at the problem with open and relaxed attitude. Without distracting thoughts, you can see the truth of things when you observe and understand at a higher position.

Let’s start with human and history. Pay attention to the history, and stories are created by combination of ideas and lifestyle of human. The descendants can study and understand things of ancestors by simple and abstract methods. The events in the history are inevitable or accidental. The history helps us to establish a foundation for understanding the change rules of things.

Everything is created through accumulation in the past thousands of years or over 10,000 years. Why China is a large agricultural country? Why the countryside is so important? Why the strategy of the communist party that surround the cities from the countryside can achieve success. It is because that the Chinese nation didn’t go hunting and grew crops earlier than any other nations in the world. Therefore, the Chinese culture is totally different from the African culture, European culture and Latin American culture. Throughout the Chinese history, China was weak after the First Opium War in 1840. However, China was the richest and strongest country in the world before 1800. Now China becomes the second largest economic entity in the world and is expected to become the largest economic entity in the world in the next ten years. It is obvious whether China revives or rises sharply. The history can help us to know the position and prospect of the country. In 1999, CE started e-commerce, and focused on enterprises. In 2000, when we went on a world tour, we talked about enterprise e-commerce with the economist of the World Bank in London who could not understand e-commerce. When I explained the Chinese economic structure and the current situation of SMEs, he had great interests in the business of CE. The business of CE includes SMEs, e-commerce, informatization, cloud computing and application service operation. All these concepts constitute CE. CE owns a history of dozens of years. Looking through the history, there were commercial concepts in the Chinese history a long time ago. It can be seen from Riverside Scene at Qingming Festival in Northern Song Dynasty that market economy is not brought by the western world and is rooted in the heart of the Chinese people. Few people bought things online in 2004, while few people didn’t buy things online now. The change in the Chinese society promotes growth of CE, which is the change of power.

Take an automobile for an example, the engine, accelerator, steering wheel and the driver constitute the motive power of automobile so that it can move. This is power. In the development process, there was a great deal of consistent and overlapped power which can generate strength from different angles. In a sense, the First Emperor of Qin is power, but it is not the only element. “The six states were eliminated by themselves rather that Qin”. Now, the leaders of the enterprise such as GOOGLE, FACEBOOK, etc., leaders of the society and leaders of families constitute the power, thereby promoting the historical development. The power is big or small. The good luck of someone can be called small power. The good fortune of China can be called big power. China promotes the prosperity of the world, which is bigger power. It is also closely related to CE. Five or eight years ago, it was difficult for the sales personnel of CE to recommend website construction, who may be regarded as cheaters. Now it is different. How can the power be generated? Why does e-commerce play such an important role in the development process of the Chinese enterprises and economy? It is because of the power from two aspects. One is the development of Internet and IT. The other is that the development of the Chinese economy promotes enterprises to seek more growth space. CE achieves common development with 8,000 employees following the trend of e-commerce. How can we ensure the power will be still big in the next 5-10 years? China exceeded Japan and became the second largest economic entity in the world two years ago. How can China become the first largest economic entity in the world in the next 8-10 years? It needs power. March forward on the correct road. CE is required to follow the trend in the aspects of management, market positioning, technical capacity and customer demands to achieve success.

The third “Shi” consists of market, city and residents. People gather and constitute a city and a small society. When a group of people gather, the environment based on the society is generated. 50 people lived in a valley, married and gave birth to babies, ploughed and grew crops, therefore a small society is formed. The environment bears the demands of material life, spiritual life and cultural life of the 50 people. What is the third Shi of CE? Alibaba, GOOGLE, Xinnet and Hipiao mentioned by Chen Mingfei are a specific environment. What is the relationship between CE and them? The relationship is direct or indirect such as payment, logistics, etc. It is related to the development of e-commerce. It seemed to be strange that Jack Ma invested RMB 1 billion in logistics before. Why did one engaged in e-commerce start investment in logistics? The Chinese logistics is rather backward. 360buy.com and dangdang.com have their own logistics directly or indirectly. The American enterprises did not need to build their own logistics team dozens of years ago, while the Chinese enterprises need now. The market pattern changes dramatically, and the environment is formed. It is also important for us.

The fourth “Shi” means the simplest and most specific thing. The successful CEO meeting held today can make staff have a better understanding of our company and the society have a further understanding of m-business out forward by us. Speaking specifically, recruit one colleague, adjust the commodity price, establish one website for E-marketing, the government opens the personal domain name, all above are all “things”. People are connected with the history, power and market through things. We have no direct relationship with the market and will be connected with the market when buying or selling. When we make a decision and know the change of trend, one thing is involved. We have no relationship with the history and are connected with the history through things. It is a specific thing whether CE is engaged in digital commercial platform, cloud computing and reform of domain name. The thing may be big or small. How to do good things is important to reflect us in the society.

Scholar is related to two concepts in the traditional Chinese culture—knowledge, ability; position. How can we become scholar. What is “scholar” for CE? Is it general manager or chief director? It may be not. Many years ago I said that only people who want to achieve career success can join us. If you do not know what CE Dongli should do and only make profit, you can join us, but you are not scholar. You are required to know what you sell. It is an important tool for SMEs to establish an intelligent enterprise through the strong and efficient informatization. Only when we know this, can we become scholar. We have knowledge, intelligence and higher pursuit and we are not gainful. Therefore, CE achieves success like other enterprises. The members of CE are required to know our work, direction and relationship with customers. The relationship between CE and customers is sincere and responsible. CE is willing to help them to achieve success. The above is my understanding of the relationship between CE and scholar.

We should see things by using different methods from different angles. We can see ourselves and life from the above five angles. Why does CE decide to select this work? What kind of relationship between CE and customers? What does CE express to customers? The answers or inspirations can be found from the five words, and one kind of attitude or learning method can be developed. CE is an interesting company. It is steel bar, click-and-mortar and TOUCH mentioned by Chen Mingfei. These traditional and modern objects can be coexisted in CE, for we believe that e-commerce is the main driving force of the Chinese economy.

It is the beginning of success to have a clear understanding of objects, positions and the future development directions. I wish everyone can help CE to achieve success and accumulate rich knowledge and analysis ability. Thanks.