The 'Delete-Links' Model that Leads to Business Innovation -- Incorporation of Health Promotion Culture, E-commerce, Media Platform and Financial Innovation Concept

BEIJING, Jan. 19, 2011 /PRNewswire-Asia/ -- "Delete-Links", a brand new business model incorporating health promotion, e-commerce, media platform and financial innovation concept, has gradually come into being. "The Delete-Links business model enables products to directly reach consumers, to rebuild the trust of consumers by recording a product's lifecycle. It can accelerate the time-to-market of products from innovative manufacturers, increase their competitiveness, and reduce waste in the process of circulation," said Xingwu Sun, President of Shanghai Delete-Links e-Commerce Limited at a press conference for the brand-new business model on January 17. This model is expected to fundamentally redefine the traditional relations among investors, operators and consumers, and really establish a totally new business notion of "Consumption creates value". It is of epoch-making significance.

Delete-Links is an e-commerce platform that enables manufactured products to directly reach consumers and consumers to comprehensively learn about the product manufacture and sale process for the purpose of safe and reliable consumption. Electronic screens are installed in brick-and-mortar stores (direct retailers, chain stores, or franchise stores) as the e-commerce medium. This model increases the varieties of services such as sale of products with a "green" origin while not changing the traditional way of product sales, thus building an interactive platform where consumers, operators and investors can share the results of operation.

In recent years, with the continuous improvement of living standards, people are no longer content with just meeting the basic needs such as dining, drinking, housing and traveling. They also want to "buy health". Spending on health promotion has become a trend, the number of people who are in this camp keeps growing, and an era in which everybody is concerned about health promotion has arrived. Forecasts by research institutions shows that China's market for health promotion is worth up to 100 billion Yuan. Although traditional health promotional products have many advantages including high safety level, low toxic side effects, and good brand reputation, consumers are not attracted to them because of the long-time absence of consciousness for IPR protection, outdated sales models, inconsistent qualities & prices, and inadequate marketing efforts, and as a result, the health promotion sector has lost its primary driver for development. In contrast, with their advanced business & operation management models, foreign health promotion brands have gradually encroached on a large part of China's health promotion market.

The country's health promotion sector now faces various difficulties and lacks the momentum for growth. The Delete-Links business model developed by Shanghai Delete-Links e-Commerce Limited has come into being in such a situation. It has begun to be widely adopted in China's related industries, starting from health promotion.

Delete-Links is divided into five parts: (1) green e-commerce franchise, enabling products from their green origin to directly reach the sales outlets; (2) ground franchise, increasing brick-and-mortar stores rapidly in the way of e-commerce franchise; (3) a prepaid card based membership system, for the timely understanding of the health promotion habits of consumers as well as their diverse health promotion requirements, and improving the yield rate of their money and making it more convenient for them; (4) truthfully recording a product's lifecycle, including the entire process from its production in place of origin to its storage and sales, to win consumers' trust; and (5), a direct marketing (DM) price system, to dramatically reduce the mark-ups of the middleman, so that consumers can get real benefits by getting great products at low prices while having the peace of mind.

Delete-Links enables products to directly reach consumers

"One-stop from source to end, open process, transparent prices, and consumers' share of the return on investment (ROI) are the core values of the Delete-Links business model," said Xingwu Sun. It has changed the traditional business logic in which the investors get the ROI, the operators get the profits, and the consumers are in a passive position to buy. The creative B(B)C business model, especially the totally new business notion that "consumption creates value", has changed the designated roles and positions of consumers in the current business value chain, to enable consumers to reap concrete benefits during the buying process. This has been fully demonstrated in its business process. In this process, half of Delete-Links' profit will be returned to consumers in cash, and as the provider of the service platform, Delete-Links only charges a 1% service fee - and this constitutes its net profit.

The e-commerce platform of Delete-Links brings manufacturers directly to consumers, and therefore it can dramatically lower the entry barrier for SMBs. According to Xingwu Sun, for some innovative SMBs, during the go-to-market process of their products, they can take advantage of Delete-Links' network platform to quickly deliver their products to consumers. This shortens the process from product development and production to arriving at the sales outlets, and makes it possible for them to concentrate on product and technology innovation. "This model is a revolution and innovation to the traditional franchise," explained Zhiming Li, Deputy Director of the SMB Working Committee of China APEC Development Council and Vice President of the Standing Committee of China National Small Enterprises Council, when talking about the Delete-Links model. "While accelerating the entry of competitive products of SMBs into the market, it will also minimize carbon emission during the circulation process of products, which comes as a great benefit for both the industry and the country."  

"The Delete-Links business model enables manufacturers to reach consumers directly and rebuilds the trust of consumers by keeping a record of product's lifecycle," Xingwu Sun said. For this reason, all the products sold on the e-commerce platform of Delete-Links are products for which consumers have high safety requirements, such as health promotional products and clothes for babies & infants. Every node in the production and sales process of these products is recorded at Delete-Links, so consumers can know everything about the products just by clicking them on the platform to discriminate products and have the peace of mind.

Delete-Links aims to reduce the intermediate processes involved in R&D, production, and consumption, thus reducing carbon emissions. These processes include the information flow, the material flow (logistics operation), and the cash flow. The platform itself can provide all-round product information and enable manufacturers to do e-business directly with consumers. It can also be used as the most direct and efficient advertising platform for brands in various industries. The prepaid card based membership system of Delete-Links enables manufacturers to fully understand the consumption needs and consumption habits and enhance the fund efficiency of and benefits to consumers.

In addition, the rewards that consumers can get from the buying process are also very motivating. "If a product bought by someone sells better in the future, he will get a higher return. For example, if he bought RMB 1,000 worth of another product, we would return him RMB 800; but if he bought this product, we would return him RMB 1200," Xingwu Sun explained. This is what "consumption creates value" means, he added.

Ready for quick adoption in a large scale

At the press conference, Shanghai Delete-Links e-Commerce Limited also signed a strategic partnership agreement with the Shandong Dong-e E-jiao Group, under which the two companies will work together to apply Delete-Links in the health promotion sector. "Delete-Links not only can help us dramatically to increase the rate of our products arriving at the sales outlets as well as lower our cost of channel management, but also to reduce our marketing cost and product delivery cost," said a spokesperson for Shandong Dong-e E-jiao Group.

According to Shuxia Sun, President of the Food Nutrition & Safety Committee, China Health Care Association, in essence, the appearance of Delete-Links is of profound significance to the health promotion and health care industry. For a long time, the producers in this industry as well as the quality of their products have been mixed, and consumers are not clear about the place of origin, the development process, the product composition as well as the warehousing and logistics operation of health promotional products. Delete-Links has removed the intermediate processes from production to consumption, and has opened up the entire process from development to production and selling. This will facilitate the quality control of health promotional products and regulate the industry's competition environment in the marketplace.  

Delete-Links has won support from many major manufacturers in China including Dong-e E-jiao, and has also received attention from venture capitalists. Delete-Links has already set up its US subsidiary. The practice of San Sheng Tang in Guangzhou has proved that the Delete-Links model is completely feasible and is ready for quick and large-scale adoption. "Delete-Links will rely on the brick-and-mortar stores of San Sheng Tang to promote its e-commerce platform. We will strive to have about 10,000 franchisees as soon as possible," said Xingwu Sun.