The ability to provide long-term core user value is key.
Editor’s note: This article is from WeChat public account “Hua Ying Capital” (ID: MeridianCapital), author Shen Yijun.
The first store in Costco opened in the last month, and it was suspended for 5 hours. The Ali Investors Conference announced yesterday that 70% of new users in the past year have come from sinking markets… retail and e-commerce markets, it seems that there are still Many potentials are far from being released.
E-commerce players have no chance in the scale of scale and efficiency? What is the core value of social distribution e-commerce? In the ultimate form, short video +5G, how much is the promotion of merchandise display and consumer decision-making?
In this issue, Huaying Insight brought the second part of the e-commerce market insight, from the essence of the multi-model, to analyze the new changes in the e-commerce retail track.
The e-commerce market has undergone tremendous changes around 2014-2015. One is the mobile side, and the other is Taobao, which has achieved thousands of people. These made the vertical e-commerce at the time very sad: things are more than you, and more accurate than you. So there is a wave of transformation from Beibei to Beidian, Chuchu Street to Chuchu.
At that time, Beibei called himself “the e-commerce of the masses”, and later it seemed that it was not so successful under the thousands of people in Taobao. This category of wenwan has some characteristics of the masses. It needs the trust mechanism of the platform. Its target group is mostly civil servants, traditional private entrepreneurs, etc. They are not active on the mainstream e-commerce platform, but from the category. Jewelry jade buys flowers, birds, fish, tea, wine, and truly has the characteristics of a business.
Overall, Ali and the fight are more competition on the macro level, including commodity circulation efficiency, commodity value, consumer reach, and merchant system.
What is the fight? “Channel brand” with trading mechanism
In fact, it is difficult for us to define how much more is a channel brand or a trading platform. Channel brands have more control over their products and consumer insights, such as costco; trading platforms use rules and mechanisms to facilitate transactions, such as Taobao. It is only based on the speech of Huang Wei’s public occasions. We know that its benchmarking model is costco, and its operating logic is indeed based on sku rather than shop. We can think of it asA “channel brand” with a trading mechanism.
Channel Brand vs. Trading Platform
Too much to rely on WeChat to centralize the traffic dividend, and build short-term barriers relative to Taobao, relying on the centralized brand mentality in the long run. As the business logic of the channel brand, the brand itself has an exclusive consumer mind, which is very important, for example, costco basically meets the daily necessities + there is a significant price/performance ratio (or it will not happen), it will make it a point Sexual destinations, consumers drive away by car.
And online, a lot of can be a more “thousands of thousands of” costco. We are not very optimistic about the development of costco in the suburbs of Shanghai. Shanghai’s mainstream customers should enjoy more service premiums and diversified product choices. If you can use the member’s prepaid to promote the purchase frequency and amount of sinking consumers, it may be more like China’s costco –
China still has a large number of sinking market materials that are not abundant, and consumers’ purchasing power is not high enough to choose at random. Typical, for example, in the northern region, consumers are valuable if they pay a reasonable fee and can afford to buy the rich fruits and platforms of the South for their daily necessities.
Social E-Commerce and Community Group Buying: Stable Set Capability + Supply Chain Management
To be labeled as a costco on a line, the core is a stable, powerful and efficient set-up capability. Because in Taobao and Jingdong, a product must eventually reach consumers, and it has to go through the layered funnel of the platform and the store, which is less efficient.
In the fight and the collection, it can be recommended directly through the group or the small B, which can quickly and efficiently reach the consumers, thus instantly collecting orders that may have been generated at different times and in different regions. Such order collection is huge for the factory. It seems that at present, there is a lot of work because it is a centralized channel, and the ability to collect orders is very stable. And the distribution market corresponding to the collection, the network effect is not strong, even if there is a head company, the overall marketThe pattern will be more dispersed, resulting in unstable collection capacity.
But if you only look at this dimension, community group buying companies will undoubtedly be more stable if they can eat in a community winner, because the living needs of a community (such as rice, oil, fruit, paper towels) are more stable; The small shop opened at the door of the community as a distribution and service node will be more stable than the socialized small B.
This platform will have a more stable order assignment to the factory. Therefore, we can actually understand such enterprises as “supply chain management companies with stable collection capabilities”, because they are different from each other, and there is not much exposure on the C side. Consumers are more aware of the recommendation and delivery of small B. service.
This is a bit like the difference between money aunt and friendship. Yipin is a typical retailer for the scene of consumers’ three meals a day, making a selection of goods, and creating product value based on continuous user demand insights. And Aunt Money is more like a meat supply chain management company, and meat is listed company.
As a supply chain management company, we believe that in addition to order-giving factories and intensive logistics performance, we can provide more consumers’ common needs in the future (such as paper towel specifications, package size, and which The material is more popular), which really helps the factory to upgrade and upgrade the source of production materials such as raw materials, processes, equipment and commodity packaging, thus truly helping China’s manufacturing industry to upgrade.
“Thousands of thousands of services”: non-standard, second-hand, personalized opportunities
In addition to the macro-efficiency market, we believe that opportunities to serve vertical populations still exist. This opportunity is not the verticality of the goods and people we generally understand before 2015, and may come more from the “Thousands of Thousands of Services”.
Because the big platform pursues unified operational indicators and unified services, the overall optimal efficiency can be achieved. For example, Jingdong is a typical commodity service, but it is a standard, and its final profit margin should depend on the consumer’s perception of the pure service premium.
Service e-commerce, which is not a standard, may have higher profit margins, such as second-hand, wenwan, etc., which correspond to non-industrialized goods, or even “orphans”, consumers may serve such services. Pay a higher premium. Large platforms are difficult to provide personalized services for this, and it is not economical to flow traffic to orphans.
In the case of second-hand e-commerce, these platforms will be slightly slower than the standardized supply. Because the supply is difficult, the recycling system needs to lay the recycling system into a line.Under the network, the second-hand package platform needs to turn buyers into sellers, and improve the consistency of the uplink and the downlink.
The platform will have heavy operational barriers in supply scheduling, supply and demand matching algorithms, and consumer decision-making. But in the end, the head company will have the opportunity to run billions of dollars based on market size, and there will be good The level of profit.
Rich Media Form +5G: Broaden Consumer Contact Path
In addition, graphic, short video, live rich media form +5G, will also bring new opportunities for the display of many categories of goods, brand story.
In the future, the brand will be full of flowers, social media gives the brand the opportunity to communicate directly with consumers, and compared to traditional TV commercials, it can also be more full in the dissemination of content, giving more brand premium. For example, in one, because of the empowerment of high-quality content, a million-priced radio can also sell tens of thousands. This is a typical scene of high quality content + precise crowd.
Maybe in the future, the fight will bring us more cost-effective products, and the vibrating and fast-handling will bring more brand stories that meet our spiritual needs, and the retail market will naturally be layered. Inadvertently, these platforms are dramatically changing our lives, resulting in a better and more diverse experience.