The return of popular rational consumption in the down cycle

When “sinking” became an independent investment theme, “tail sale” was also highlighted,If the sinking market is From the new propositions put forward by the population and income structure, then in the strict sense, “tail sale” is not a “sinking market” exclusive business. After all, the origin of this business model is that the supply demand is mismatched and the resource is wrong. Matching, from the demand solution, is more like the individual’s “consumption grading”, behind the return of the mass rational consumption in the down cycle.

In the US, TJMaxx is a representative of discount retailers, in China, in addition to love stocks, good clothes The “discount retail + social e-commerce” players like the library are still in the forefront, and there are still new teams joining the field.

The recently contacted Peach inventory is also one of them. Peach inventory was launched in May this year, and services are now available in the form of small programs. A brief summary of the peach inventory is: Through the direct 2C social e-commerce to provide the sale of the tail goods, the platform has already received 300,000 registered users. The difference in peach stocks is mainly reflected in three aspects:

  • Category: Cut in from the 500-category standard of Shangchao;

  • Mode: Jump off small B and sell directly to 2C;

  • How to play: Member e-commerce for “post-pay”.

Whether it is from the differentiation of platform products or the acquisition and organization of traffic, the peach inventory team does not believe that it directly competes with the existing tailings platform in the market.

Before we introduce the peach stock, let’s first look at what the peach inventory team wants to cut into:Rong>

Inventory: “End” in non-standard areas and “Probation” in the field of standards

There is inevitably “inventory” in the circulation of fast-moving goods. Brands and dealers want to realize inventory on the one hand, but also consider that these products cannot appear on the distribution channels of new products and affect brand positioning. The brand’s “factory shop”, outlets choose non-mainstream business districts and even behind the city is such logic, in fact, the reason why the early Tmall Mall has different types of online and offline, different prices also have this reason.

For different categories, the reasons for inventory are different.

The most familiar nature of the public is the inventory of clothing categories. Whether it’s C2M or a “flexible supply chain,” In the era of smart manufacturing, inventory is always the biggest nightmare for apparel brands: In the past 6 years, Burberry has destroyed According to the data provided by the e-commerce platform “Love Inventory”, the warehouses of major clothing brands have a backlog of nearly 2 trillion yuan in inventory, and still rise at a rate of 5% per year.

Non-standard clothing is also a relatively concentrated field in the current “tail goods” track players. In addition to the online Vipshop and love inventory, the tail goods business also extends to the offline: choose to refocus the sale. Vipshop will open its own “Victory Warehouse”, since the second half of 2018, Hui Pincang, Yi Le Cang, Yi Mai Cang , excellent and famous products and other projects have entered the capital market, but also have the support of capital. In the specific mode, the offline goods business can be roughly divided into a platform mode of partial site operation and a store chain mode based on supply chain empowerment. In the field that has not been involved in capital, there are also many low-key traditional players.

In the field of metrics, the traditional understanding of inventory arises from the removal of goods due to the “validity period”. The validity period directly corresponds to “Pro-Futures”. In general, the product is close to its own shelf life, but in fact the “validity period” is not directly equal to the “shelf life”.

From the retailer’s point of view, in order to ensure the user experience and sales, from the receipt of goods to the shelves, the sale of these nodes, there are high requirements on the shelf life of the goods, usually the shelf life of the goods is less than 1/3 They will be dealt with off the shelf. These off-shelf products are handled by the manufacturers or dealers. For example, the most familiar dairy products often have a gift-giving activity.

In addition to food and personal care products, there are products that have a life span.Outside the product, due to the upgrade of the brand side, the old model will be forced to be removed. Even the change of the outer packaging considering the brand upgrade will make these “clearly usable” products be removed from the list. Strong> For example, such as durable appliances such as small household appliances, or paper towels, toiletries, etc., CMO Cheng Gang of the peach stock tells that such goods are the categories that the peach stock wants to be the main category.

On the peach inventory platform, we can see the popular fast-moving consumer goods in large-scale commercial channels such as Camellia, Adolf, Lafang, and Black Toothpaste. The narrow “Pro-Futures” account for less than 5%.

Compared to the clothing, for most consumers, the temporary goods are more like a “secret” market, but in fact, in this field, “Good Food Period” This type of company, “Good Food Period” specializes in the production of food, was founded in 2016, and obtained the exclusive investment of Ali in <18> in 2018. 100 million rounds of C financing.

In addition to the relatively small number of players on the track, the reason for choosing to enter from the “standard” field is that the peach inventory team gives the answer:

  • Compared to non-standard categories, the standard basically does not involve return and exchange, and the operation efficiency is higher;

  • The daily consumption of 100 categories is more frequent, and it is also a general appeal, and the target user group is wider;

  • Because the nature of peach stocks is still the main “cheap good goods”, for the new platform, compared with the provision of “brandless” products, brands with endorsement of books are more convenient to build consumer trust in the platform. Bringing sales. In the long run, peach stocks must not stop at big-name stocks, but at least for now, they need to rely on branded goods to gain attention and early traffic.

According to the data provided by the team, the new user only needs to complete the purchase once to establish trust, the probability of the second and third re-ordering is basically 80%, and the total number of users who buy more than 5 times a month reaches 80%,

Different from traditional stock buyingBreak mode, currently Tao stocks and brand parties, dealers to cooperate on a sales-to-sale basis, the price of goods on the platform is on average 50% off the price of mainstream e-commerce platform.

“Member e-commerce” is still in the early stage in China, so users should first realize the benefits

The last part answers the question of what the peach stock sells. In this part, we look at the peach stocks as “how to sell” these goods.

Peach inventory CMO Cheng Gang told that in the big model, the social e-commerce that the team wants to do is not the S2B2C model, but the small B directly 2C, more like a lot of fight. profit level,Peach inventory does not rely on commodity retail to make money,The platform will only increase the price of the product by 15%, except for the operating costs of the headquarters. The “sales commission” is returned to the C-side user account, support for platform consumption and withdrawal.

Peach inventory is based on membership fees as the main revenue, the same as costco, but unlike consumers who only pay the membership fee before they can spend at costco (Shanghai Minhang store’s current annual fee is 299 Yuan.) The membership fee for Peach Inventory is “post-charge”.

Specifically, for new users on the platform, that is, products that can directly purchase peach stocks, they can also gain profits by sharing the rebates. Only when users need to consume or withdraw these proceeds, they need to Upgrade to membership, the current membership fee of the platform is 198 yuan / year, and like most social e-commerce platforms, users who have purchased membership services will also receive a brand spree.

As for why post-pay is chosen, is given the reason that “Member e-commerce” is still in the early stage in China, and for most people it is even a strange concept, instead of going through the market. To educate and persuade users, the more efficient way is to be aware that this part of the input and output is “worthy” before they pay the membership fee, so before the low-priced purchases and benefits are placed before the membership fee, a path.

A similar logic looks at Co, which has just entered the country and continues to stand on the hot spot.Stco, when savvy consumers see that they can get higher than members from “fair Moutai When the income of the fee is paid, there is naturally a queue.

In order to get a quick visit, Peach Inventor will also socially fission by inviting a secondary distribution mechanism for placing commissions. At present, the product has already received 300,000 users in 3 months. In terms of promotion methods, the early stage mainly relies on natural fission. From September, the team gradually launched marketing.