Core Insights - Jack Ma predicts a "terrifying" business model for China's future, summarized as "explosive product customer acquisition + cross-industry profit model" [1] Group 1: Business Model Insights - The phenomenon of Costco's opening in China in 2019 exemplifies the new business logic where products serve as bait for customer acquisition rather than direct profit sources [2][3] - Costco's pricing strategy, which limits gross margins to below 14%, illustrates the "explosive product customer acquisition" approach, creating a trust trap for consumers [4] - Other examples, such as the low-priced Chongqing Rongchang marinated goose and innovative dessert boxes from Beijing Daoxiangcun, follow the same logic of using extreme value or novelty to attract customers [5] Group 2: Market Challenges - Companies like Hema X and Yonghui have struggled to sustain their business models, highlighting the importance of a strong supply chain to support the "explosive product" strategy [6][7] - The success of Sam's Club in China, driven by its signature products, demonstrates the necessity of robust internal capabilities to achieve significant sales [7] Group 3: Cross-Industry Profit Strategies - The concept of "cross-industry profit" suggests that attracting customers is just the first step; true profit comes from unseen areas, as seen with Costco's role as a major car dealer in the U.S. [8][9] - Domestic electric vehicle companies are adopting similar strategies, focusing on post-sale services like charging, software subscriptions, and financial services as ongoing revenue streams [10] - Platforms like Meituan and JD.com have evolved beyond simple sales, utilizing big data to create a closed-loop service ecosystem that enhances customer retention and long-term value [10] Group 4: Future Business Landscape - The future of competition will focus on building trust through service rather than relying solely on scale and price wars, marking a significant shift in business strategy [10] - Companies that fail to understand this evolving landscape risk being eliminated without realizing who their competitors are [10]