E-commerce strategic transformation: Core competencies drive new profit growth.

When film became liquid foundation, pianos started being used to build motorcycles.

Here's the thing.

I came across a question the other day that saidE-commerceI can't get it to roll anymore no matter what I do. Should I switch tracks and start over? My finger hovered over the screen, and I suddenly remembered two insignificant news stories from Japan over a decade ago.

One is Yamaha, which makes motorcycles, and the other is Fujifilm, which sells cosmetics.

You might think these two are completely unrelated. One is a musician, the other a photographer, so how did they both end up making engines and applying face creams?

But if you break it down carefully, you'll find that this might be the only solution for businesses to weather economic cycles. It's not about finding new opportunities, but about using old skills in a different context.

Yamaha's "outrageous" supply chain

In 1887, Yamaha's founder, Torakusu Yamaha, opened a small piano repair workshop in Hamamatsu. To repair imported pianos to be as good as the real thing, he pushed himself to the limit with his woodworking skills. He knew exactly how to cut the wood, how to arch the soundboard, and how to tighten the screws to prevent them from going out of tune.

As he continued repairing, he discovered that his woodworking skills could be used not only to repair instruments but also to make furniture. Since it would be a waste to throw away the leftover scraps from furniture making, he casually crafted a wooden harmonica.

Then things started to get a little out of control.

To test the accuracy of a piano's tone, he began studying acoustic principles. As he researched, he discovered that these vibration frequency analysis techniques seemed to have applications elsewhere, such as processing digital signals.

So Yamaha made digital signal processors.

With a background in communications technology, he wondered if he could use the signal processing capabilities for transmission. So he went on to make routers. Later, because making wooden furniture required precise machining, he started making woodworking machines. To test the cutting accuracy of these machines, he needed high-speed rotating propellers for experiments.

Then he discovered that propellers and airplane engines are similar in principle.

So they started developing engines. Eventually, it all fell into place, and they started making motorcycles.

Today, Yamaha makes everything from pianos and motorcycles to audio equipment, routers, and woodworking machinery. To outsiders, it seems like a boundless, haphazard dabbling company. But in reality, it's a classic example of a concentric circle strategy.

Fujifilm's "dead technology" comeback

Around the same time, Fuji encountered an even greater crisis.

In the years when digital cameras became widespread, the film industry seemed to have been deleted. Overnight, Fujifilm's decades of accumulated chemical technology suddenly became "useless".

At the time, the whole of Japan was discussing whether Fujifilm should transform into an internet company, creating a portal website and a social network. After all, it was the early 2000s, and "internet thinking" was more important than oxygen.

Fuji didn't move.

They did something special: they made a list of all the film-related technologies in the lab. Anti-oxidation technology,NanometerDispersion technology, collagen purification technology, pigment stabilization technology. A bunch of seemingly dry but "old-fashioned" technologies that have been proven countless times in industrial manufacturing.

Then they asked themselves a question: If they don't sell film, who else can they sell this technology to?

The answer is: a cosmetics company.

Fujifilm has discovered that the nano-dispersion technology accumulated during film manufacturing can be used to make liquid foundation. Antioxidant technology can be used to make anti-aging serums. Collagen purification technology can be directly applied in the medical aesthetics field.

So, Fujifilm started selling cosmetics. Not as a simple OEM manufacturer, but with the same meticulous approach they used to making film. The result was surprising: those "outdated" technologies, used for decades, became a competitive advantage in the beauty industry.

Why do we always feel that crossing boundaries is difficult?

Let's go back to the original question.

Why is it that when e-commerce businesses fail, the first reaction is to switch platforms or product categories instead of thinking about what "old skills" they still have?

Because we are too easily deceived by appearances.

If what you did was "in"Taobao"Selling clothes" is the business model. But what is the core competency? Is it a keen eye for selecting styles? Supply chain control? Visual design? Or traffic management?

Many people cannot distinguish between the two. Business models may fluctuate with the market, but core competencies can be transferred.

Like a chef, cooking is the job, but the core competencies are the perception of heat, the understanding of ingredients, and the intuition for seasoning. If the restaurant closes down one day, this chef can go to a food factory to do research and development, become a consultant at a kitchen equipment company, make food videos, or teach people how to cook. The setting may change, but the "skill" remains the same.

But most e-commerce sellers don't think that way. When the platform algorithm changes and traffic disappears, they feel like they "don't know how to do e-commerce anymore." Actually, it's not that they don't know how; they've defined themselves too narrowly.

The courage to break down dimensions

What Yamaha and Fuji have in common is that they both did one thing: break down their designs into smaller, more manageable components.

They don't define the company as "selling pianos" or "selling film," but rather as "a company that has mastered some kind of underlying technology."

Fujifilm says, "We don't sell film; we are a company that has mastered fine chemicals and nano-dispersion technology."

Yamaha says, "We don't repair pianos; we are a company that has mastered precision manufacturing and acoustic principles."

This shift in definition determined how they drew circles outwards.

The first step in drawing a circle is finding its center. Your core competency is that center. It could be exceptional control over the supply chain, efficient production of visual content, or the acquisition and conversion of low-cost traffic.

The second step is to look outward for new industries with increasing demand. Don't jump around based on gut feeling; instead, ask yourself: Can my skills be reused in this industry?

If your core competency is the supply chain, when you encounter obstacles in the retail sector, can you shift your focus to B2B? Can you become a supplier for top livestreamers on other platforms? Can you help factories with inventory turnover?

If your core assets are visual and content capabilities, could you try providing outsourced operations services for traditional manufacturing factories? Could you help offline brands transform their businesses online?

Beware of the "gene mutation" trap

Here is a harsh reality.

Many sellers, upon seeing a new trend, want to completely break away from their existing teams to chase it. For example, clothing companies, seeing the pet industry booming, immediately disband their teams to sell pet supplies. The result is often that the skills and capabilities required for the new business are completely lacking in the team's existing DNA.

This approach is extremely risky.

It's not that you can't pursue new business models, but you need to figure out which capabilities can be reused while doing so. If a new business requires you to learn a completely new set of rules from scratch, then you're actually starting a new business, not transforming your career.

True transformation means taking the "skills" accumulated in the previous business and applying them in new scenarios. Even if the external business model changes, the underlying assets are not lost; only the monetization scenario changes.

Write at the end

A couple of days ago, a friend who has been doing cross-border e-commerce for eight years told me that Amazon is becoming increasingly difficult to operate on. He asked me whether he should switch to an independent website, whether he should create a TikTok-like platform, or whether he should return to the domestic market.

I asked him, "What's the most valuable thing you have right now?"

He thought for a moment and said it was about understanding the psychology of overseas consumers returning goods, and also about that product selection logic.

I told you not to rush to switch platforms. Your combination of "return psychology + product selection logic" is rare on any platform. Amazon just amplified it.

Sometimes we are too easily distracted by the ebb and flow of the platform and forget that we can actually swim.

When Yamaha was repairing pianos, they probably never imagined they would eventually build motorcycles. When Fujifilm was making film, they certainly never imagined their technology would end up in a woman's makeup bag.

But they knew what they held in their hands.

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