On June 26, “Chinese Liquor Heroes Alliance” founded under the leadership of Wu Xiangdong, the Chairman of VATS Group and founder of Jindong Capital, went to Wuhan which attracted the wide participation of over 400 dealers whose business scale is over RMB10 million in Hubei Province. So far, “Chinese Liquor Heroes Alliance” has successfully held 17 sessions of Internet+ seminars. 421 new members joined in Wuhan, so the total number of members exceeded 6,000.

In the meeting, Wu Xiangdong said to liquor agents that achieving great benfits will rely on big data instead of liquor sales in the future.

“Dida Science & Technology” has an ulterior motive

It is generally known that the liquor industry recovers slowly and competes fiercely now. For liquor dealers, channel profit space is squeezed much and is impacted by foreign capital.

Wu Xiangdong said, “Liquor dealers are extremely difficult. The typical ‘Red Sea Market’ has appeared!” He said money earned by selling liquor is limited and achieving the most benefits will not rely on it. He pointed out the best way is not to act rashly and not to develop new businesses easily; otherwise they will lose soon.

Obviously, the consensus in the liquor industry is that meager profit is the new normal and “Chinese Liquor Heroes Alliance” has realized this profoundly. Thus, for Dida Science & Technology Co., Ltd. (hereinafter referred to as “Dida Science & Technology”) which is established by relying on “Chinese Liquor Heroes Alliance”, its the business model should not focus on making profit from “product price differential” but should focus on financial service and large logistics demand produced by large-scale platform trading and even focus on customized service based on big data of the platform.

So it is not difficult to understand why Wu Xiangdong repeatedly emphasized “Chinese Liquor Heroes Alliance” will not compete with upstream and downstream enterprises but will ally only with them: Dida Science & Technology is a “de-centralized” platform. As to both B2B and O2O businesses, they will not damage the interests of participants in the industry chain, and will help liquor dealers do Internet transformation, expand channels and increase profit-making opportunities and help them “create value” to attract more people to join the platform; based on 7,000 or 8,000 or even over 10,000 members, Dida Science & Technology aims to realize the business volume of over RMB1 trillion and will find new ways of making money.

So Wu Xiangdong said Dida Science & Technology has an ulterior motive.

“Dida Science & Technology” will rely on “big data” to achieve great benefits

It is worth noting that there will be two big data sources in the “five-year three-step development” strategy on the business volume of over RMB1 trillion of Dida Science & Technology:

First, achieving great benefits will rely on big data brought by B2B trading between tens of thousands of agents and 12 million retail terminals (including 6 million restaurants) instead of selling liquor;

Second, rely on big data brought by O2O trading between 12 million retail terminals and hundreds of millions of consumers.

Wu Xiangdong said, “These two big data are the key and will be the basis of making profit for Dida Science & Technology. What is really valuable is ‘big data’, rather than ‘small data’. ‘Small data’ are worthless.” He pointed out that Dida Science & Technology founded by “Chinese Liquor Heroes Alliance” will do de-centralized B2B and O2O businesses, do these two traditional businesses and Internet business together with agents, and target at these big data.