This year’s “Double Eleven” is doomed to be extraordinary. After all, this is the first year of the official absence of Ali spiritual leader Chris “Ma”. It will also be the successor Zhang Yong who can set off the banner of Ali’s steady growth. The first big test paper.
Alexander. It’s no wonder that Ali, who has been at home, has yet to announce the details of the gameplay of the Double Eleven, and Jingdong has already taken the lead in holding the grand double eleven start-up conference, and even shouted the provocative slogan of “building 11.11 new home”, even Suning and Gome have also begun to flex their muscles. Compared with the past, this situation and atmosphere is a bit condolence.
I. Keep 618, attack 11.11, what does Jingdong want to do?
In these years, 618 and Double Eleven have become the annual events of e-commerce. In these two pick-up festivals, Jingdong and Ali each occupied a commanding height, and no one can win.
E-commerce, a relatively competitive industry, everyone knows how to wait for an opportunity. Objectively speaking, the situation encountered by Ali and Jingdong this year is very similar. Just like this year’s double eleven is a big test for Zhang Yong and Ali, this year’s 618 is also a big test for Xu Lei and Jingdong.
This year, 618, many e-commerce platforms set off a siege frenzy for JD. Even the platform is known as 618 at home when 618 was founded and raised by JD. Of course, the final result is that Jingdong has survived and surrendered the 2015 billion, full-speed answer to nearly 30% growth rate, and also strongly defended his 618 home position.
The feng shui turns, and the pressure has fallen on Ali’s head. You know, Jingdong Ali has been playing for so many years. If Jingdong wants a victory that will reinvigorate investors, strengthen investors’ confidence, and let the market and users dispel doubts, they will attack the double eleven, especially in Chrisma. The node that has just been hidden is a good thing.
In fact, Jingdong’s offensive can indeed be described as fast, and there is a big gesture of not taking the double eleven.
On October 15th, JD.com launched a press conference at 11.11, shouting the slogan of “Building 11.11 New Home” with good things, low prices, and good service, and proposed “super billion subsidies of 100 billion yuan” and “Jingxi online” Widely reach the emerging consumer groups, “Jingdongcheng 2000+ over 100 million brands and the largest incremental field of more than 200,000 merchants”, covering the interests of C and B, and the preferential strength is unprecedented, in the whole electricity The business sector is also quite rare. On October 18th, Jingdong announced that the top traffic star Li is now the brand spokesperson. On October 19th, Jingdong once again announced that Yang Zi became its brand spokesperson. Within two days, two consecutive traffic stars joined, and they paid close attention and discussion on the Internet. Prior to this, Jingdong had only staged endorsements of stars during the 618 or 11.11 period, and it was the first time to find the overall brand spokesperson.
In short, JD.com used the three major combination punches that use star IP to detonate traffic, subsidize big users, and the following sinking market as incremental space to greet this year’s double eleven.
Know that such a large amount of subsidies have not been seen in the e-commerce field that has entered the mature stage. For the user like this, this is really a very good thing, who can use a huge subsidy to stun me, I definitely go back and follow this platform. At least in the current Chinese Internet world, subsidies are still an irresistible weapon of the gods.
This is definitely not good news for Ali and other players who are ready to participate in the double eleven melee. This means that if you can’t come up with the subsidy for Jingdong, you will basically get out early. In my opinion, this is also the cleverness of Jingdong. Jingdong is the first to launch 11.11 among the major e-commerce platforms. In theory, it gives the latecomers a space for targeted adjustment, so the first move is to take a lot of pressure. . At the same time, at a time when the distance between the eleventh and the eleventh has been less than a month, Jingdong has placed heavy troops and punched heavy punches to take the lead in releasing the points of interest, which will inevitably bring strong shock to other platforms and even disrupt its established rhythm. Greatly beneficial to Jingdong.
In fact, Ali has to face far more than the apparent subsidy and flow detonation. In recent years, with the escalation of consumption and people’s pursuit of quality life, the user’s transition has long been a trend, especially for the migration of female consumers who have the most contribution to e-commerce. This trend not only promotes electricity. The peak of the business industry has climbed to the golden decade, and it has also provided support for the birth, fission and growth of new e-commerce models such as social e-commerce and membership e-commerce. Taking Jingdong as an example, as early as two years ago, the number of female users in Jingdong ushered in a round of rapid growth.In the food, beverage, fresh, maternal and child, life travel and other categories, the proportion of female users far exceeds that of males, and the rapid growth of female users has also led to the sale of related products in Jingdong.
The reason is very simple. The female group is more sensitive to the consumption upgrade. The quality, delivery speed and the imagination of the service experience accumulated by JD.com have gradually ushered in this trend. Gold node. Jingdong also used this to quickly narrow the gap with Ali. From the data of the platforms GMV, Double 11 and 618 in recent years, the gap between the two sides is indeed very small, which has accumulated enough for Jingdong. Popularity, morale and confidence.
We can hardly imagine that under such circumstances, JD will decisively add a subsidy fire, and what kind of explosive reaction will be brought about, and what kind of shopping passion will be ignited.
It doesn’t stop there. In addition to Jingdong, Ali still has to face the impact from the sinking market and from the dark horse. Even if Ali has restarted the cost-effectiveness, the preparation and competitiveness of the sinking market is still somewhat insufficient. Ali’s 2019 Q2 earnings report showed that its revenue increased by 42%, MAU increased by 56 million in half a year, and claimed that more than 70% of its new users came from sinking markets such as the third- and fifth-tier cities and villages.
However, from the core e-commerce income structure table in its financial report, it can be found that the core e-commerce accounted for 86.6% of Ali Q2’s revenue this year, which is the absolute main business. Among them, advertising (Customer Management) accounted for 37%, commission (Commission) accounted for 15%, new retail (others) accounted for 14%, three together accounted for 66% of revenue, is the core e-commerce revenue. However, among the three, the largest advertising and commission income associated with the Tao Department increased by only 27% and 23% respectively. In contrast, the new retail business (Box Ma Shengsheng, Tmall Supermarket, Tmall Direct, Intime, etc.) has increased by 134%, and in the 2018 Q2 consolidated report is hungry (in the report is reflected in Local Customer Services) This has led to a 137% increase in local service revenue.
In other words, Ali’s 42% revenue growth rate is not mainly due to the contribution of the revenue growth of the Tao Department, but to the hungry of the new retail and consolidated statements as the growth engine. Moreover, the new retail revenue has been almost the same as the commission income of the Tao Department.
Because of such data and growth, what we need to ponder is that sinking the market, especially the sinking market in the future after the brutal growth, depends on what wins?