One billion people are sinking, and the test room for new consumption is being pulled.
文 | 万阳
Edit | Huang Wei
Domestic demand, globalization, big data cloud computing, this is Alibaba’s 20th annual meeting, Alibaba Group Chairman Zhang Yong proposed the new three strategies, domestic demand ranked first. After the first and second-tier markets are about to reach the growth ceiling, grabbing the sinking market covering 1 billion people has undoubtedly become the best choice for Alibaba to seek growth.
The previous reorganization of the poly cost is born for this.
The upcoming Double Eleven Shopping Festival has clearly become the most important training ground for Alibaba’s various business lines. The most cost-effective thing to do is to Experience the benchmark with deep and deep experience in sinking the market for many years. The real demand of the sinking market stimulates huge consumption potential.
In the past three years, Juhua’s “Eight Heavenly Sword” inside Tmall seems to be obscure, but it is the key engine for Tmall’s brand growth. With the unique business model of the sale, it’s more cost-effective. It is a sinking market user who is very sensitive to price, and thus has accumulated a lot of sinking market experience and consumer insights, and saw the huge demand and the explosive potential.
“The user base in the sinking market is not without money, nor is it not trusting big names, but because of information fluency and brand coverage, compared with consumers in first- and second-tier cities, their understanding of the brand and The loyalty is different, and the specific needs are also very different. However, for the big-line brands, because the situation of the sinking market is more complicated and the information collection is more difficult, it is difficult to really sink and touch. The cost-effective is to establish Linking between appropriate commodities and appropriate consumer groups, cultivating the shopping concept of consumers in the sinking market, broadening the access to information, and promoting the consumption upgrade in the sinking market.” Alibaba’s general manager of brand operations Hey introduced.
To this end, the three-year-long accumulation of cost-effective “re-emergence of the rivers and lakes”, upgraded to the large-scale cost-effective business division. Jiang Fan, President of Taobao and President of Tmall, personally announced the new positioning of the cost-effective: “Alibaba Group’s quality and economic strategy window, the global consumer quality and the preferred shopping platform for life”. The core of this strategy is to cut the real needs of sinking consumers with “brand customization” and create the ultimate cost-effectiveness. With the “industry with digital upgrade” as the starting point, help manufacturers improve productivity, reduce costs and ensure supply. Efficiency and price competitive advantage.
The data shows that at present, the single-brand group on the poly-costing guarantees the lowest price of the big Taobao (Taobao Tmall), and the sales volume of each brand is more than 10 million. The transaction volume of a single store is usually Five to ten times, the proportion of new users has reached more than 70%. In this double eleven shopping festival, the combination of more than 1000 merchants, launched 1000 custom goods, according to the breakdown requirements, with the price advantage to expand the sinking market users reach, the purpose is to rely on “new supply” Accurately create explosives and form a “poly cost-effective effect”.
The birth of brand explosions
In the view of Yunxiao, the most obvious feature of the “centralized shipping” model is the short-term effect of the outbreak. In this mode, the brand is a very important one. Handcuffs, such as Olay white bottle, Estee Lauder pomegranate water and other classic products, due to their own good reputation, in the sale of promotional activities, in the shortest possible time to dispel consumer buying doubts, let them quickly participate. Moreover, such brands have a certain popularity even in the sinking market where information is relatively closed, which greatly increases the recognition and trust of consumers on the poly cost-effective platform. In addition, because of the emphasis on discounts, attractive enough prices can also encourage a large number of new users to make their first attempt – in a single panic, the proportion of brand new users reaches 70%, which also broke to some extent. The class barriers have solved the problem of the previous large brands being blocked and the difficulties of obtaining customers.
In addition to the already well-known big brands, it is also a new way of thinking about helping the industry to implement C2M (customer reverse customization). Many B-end stores with their own factories have stronger supply chain capabilities and capacity than agents, and can supply large orders in the shortest time, and the rich production experience makes them effective. Control costs and provide consumers with more cost-effective products. In the design and production process, because of the direct control, the direct supplier of the B-end can have a faster response speed than the real feedback from the market and the consumer, and is more flexible in adjusting the industrial structure and creating the explosion. Efficient.
The key role played by poly cost-effective is to use its powerful marketing ability to create a sales model of group buying and killing through the exposure and promotion of Ali’s massive resources, ensuring that manufacturers can mass-produce and concentrate shipments. , significantly reduce production, warehousing, logistics and other costs, and further ensure low prices.
In the past “99 cost-effective festivals”, the head of the daily-use brand “the cotton era” has no two. Before the cost-effective festival, more than a dozen self-owned factories owned by the whole country in the cotton era, based on the consumer feedback collected by the cost-effective, customized a baby wipes that was 1 cm smaller than the conventional model.A brand new production line is only available for the exclusive cost-effective spike channel. Because such integrated production reduces material usage and complex processes, reduces storage pressure and cost, and shortens the intermediate link of logistics distribution, the cotton era finally gives 3 to 4 fold on the day of 99 cost-effective festivals, and 50% off all year round. The price, and with such a prominent price advantage, in the first hour of the opening of the 99 cost-effective festival, sales reached 144 times the average daily sales, becoming the “99 cost-effective festival” on the explosion of players.
In the upcoming Double Eleven Shopping Festival, with the valuable experience that has been continuously tried in the “Little Test”, as many as 1,000 manufacturers like the Cotton Age have seen the explosive opportunities and added customization. In the supply of goods, relying on the huge traffic of the double eleven, it is bound to usher in a larger outbreak.
Focus on the industrial belt to achieve supply side upgrade
In addition to helping the quality of the big brands sink, through the shopping festival of Double Eleven, there is another important mission of helping the Internet to support the brand and the supply side. How to cooperate and cooperate, how to reach the sinking market users, and make the business easier, is the value that is worthwhile.
The infant toddler toddler shoe brand, Caterpillar, was established in 2014. It is a brand that is popular among the grassroots merchants in the industrial belt. Faced with a pure e-commerce brand that focuses on quality product development like Carter Rabbit, the cost-effectiveness puts more stringent requirements on positioning and production.
Because of the inability to collect and analyze information, the industrial belt merchants such as Carter Rabbit have relatively mature production technology and supply capabilities, but it is difficult to make a clear positioning of their own brands and target users, and lack of motivation to make a big move. The industry chain upgrades, and the poly cost-effective seconds rely on the big data and market insights that Tmall and Taobao have accumulated over the years to help such brands conduct reasonable market positioning and pricing strategy guidance one-on-one. And market capacity estimation; In order to meet the high quality and low price requirements of poly cost-effective, companies must also carry out a series of production management changes, achieve production line adjustment and transformation, improve production efficiency, and through product customization, precision Target target population, reduce storage costs, shorten production and transportation links, and thus achieve “extremely cost-effective”.
“At the time we had a very good quality and the price was always 15After learning about 0 yuan of toddler shoes, and the combination of the cost-effective, through the market data analogy and analysis of the small two-to-one, we found that in the case of constant or even better quality, we have to reduce the price to about 70 yuan In order to build a million-volume-explosive product through the exposure and promotion of the cost-effective resources, the supply chain was transformed and upgraded with the help of the cost-effective, and the supply was completed. “Zhang Genfa, the founder of Carter Rabbit, told us this.
Now, through the planning and promotion of the cost-effective, Carter Rabbit has taken the focus on the sinking market as the entry point, from a startup brand to a head athlete in the field of children’s toddler shoes, the coverage ratio in the sinking market from the previous 30 % increased to 50%, and the repurchase rate reached 60%. In addition, Carter Rabbit completed the optimization of the supply chain and successfully shortened the production cycle from 60 days to 20 days, completing the optimization of the entire supply chain. upgrade.
For the industry belt merchants such as Carter Rabbit, Alibaba’s entire big ecological chain is actually invested in it, supporting all aspects, including rookie logistics, Alibaba Cloud technology and Ant Finance. The advantages of the company provide backing for the merchants, and the platform for the cost-effective platform itself has also released the “Factory Sales” program, which provides complete empowerment for the carefully selected industry-side supply side upgrades from data, finance, logistics and technology. Program.
At present, in the sinking market, such industrial belt manufacturers are rushing at a rate of 100% per year. There are countless small brands that have been quiet and unknown. With this combination of punches, they are constantly consolidating themselves in the third to fifth line. The core competitiveness and brand explosiveness of the sinking market, help more consumers in China to achieve consumption upgrades. In the activities such as the Double Eleven, they will also appear more and more in the eyes of consumers. With its own advantages and potential, strive for a huge market share.
In the vast land of land reclamation in China, the pace of development is far from stopping. The next goal is to promote 100,000 merchants to participate in more new brand supply, to meet more channels to sink, to supply customized goods, and to achieve 1 billion in the process of targeting consumers in the market. People’s consumption upgrades, achieving multiple win-win for manufacturers, platforms and consumers. In the new supply of the factory, poly cost-effective also hopes to use a new digital strategy to cover China’s core industry belt, form a true digital upgrade, promote more industrial iteration through digital sales, and let more manufacturing obtainThe opportunity to sink into the market.
After the reorganization of the cost-effective strategy, it is not only a unique combination of goods and strategies, but also helps the brand to accelerate and sink, forming a “poly cost-effective effect”. The continuous supply of good goods at the source is also guiding the wave of consumption upgrades in the sinking market, and bringing growth opportunities to more industries. It is foreseeable that in the Tmall Double 11 of the hundreds of billions of volume, with the ability of new supply, the cost-effective way has found a suitable solution.
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