For the E-commerce industry in transition and the Double Eleven, finding a new development model will last longer than over-utilizing the original routines.
Editor’s note: This article is from “News Media” , author Shu Zhijuan.
From a numerical point of view, this year’s double 11 is still crazy, and each platform once again staged a digital carnival. From the published results, it can be seen that Jingdong has reached a total of 204.4 billion yuan from 0:00 on November 1 to 23:59:59 on November 11. The record has exceeded last year’s record; Alibaba has double 11 all-days this year. The transaction rating was 268.4 billion yuan, up 25.7% from last year’s 213.5 billion yuan; Suning Tesco said that the double 11 omni-channel order volume increased by 76% year-on-year, and the logistics delivery completion rate reached 99.6%.
Behind these rising numbers, there is a hidden concern about the e-commerce industry. Although a group of eye-catching battle reports frequently appear from different battlefields, more of them compete for users and stimulate traffic. All kinds of changes have also revealed that the new dividends and new growth are not seen. The industry’s Matthew effect is becoming more and more obvious, and the low-line market has become the best springboard for the e-commerce industry.
However, for the E-commerce industry in transition and the Double 11, how to face more rational and mature sinking market consumers, find a new and sustainable development model, and better layout the new retail strategy. Become a common problem in front of the e-commerce platform.
Since the second half of 2018, the entire e-commerce industry has undergone tremendous changes. The Internet demographic dividend disappears, and “incremental” becomes difficult. In a saturated “stock” market, even more brutal competition is inevitable. Traffic competition will continue to heat up, and market sinking is one of the main ways to get traffic. In this year’s double 11, the sinking market has become the focus of the game.
During the 11th period, Jingxi, a social e-commerce company that has just completed access to WeChat’s first-level entrance on October 31, has become the key to JD’s social e-commerce and low-line markets and acquiring new customers.
Zhang Jing, general manager of the advertising and marketing department of Jingxi Business Department, said that after switching to the WeChat portal, the average amount of the Beijing-based order-to-single-cycle switching was nearly four times higher than the first week, and the overall order quantity was 9 during the double 11 period. The average daily growth rate is nearly three times. From the user’s point of view, Jingdong’s new users come from Jingxi’s nearly 40%, of which more than 70% are from the 3-6 line sinking emerging markets.
If Jingxi runs smoothly as planned, it is likely to help Jingdong Main Station to acquire more new users in the sinking market and further become a brand new market.
For competitors to sink into the marketAttack, Ali is launching a cost-effective sniper. On the specific landing, Alibaba changed the 99-time promotion of the cost-effective to 99 cost-effective festivals, and adjusted the commodity structure with the merchants through data matching needs, hoping to awaken a large number of sleeping markets to rebuild ultra-high-speed growth.
Compared with other e-commerce, Suning Tesco returned to the scene of life service field that he is good at. In terms of scenes, Suning stores received 600,000 packages, and Beijing, Shanghai and Nanjing exceeded 30,000 in Suning. The newly-launched Carrefour fulfillment center has a half-day order volume of 150,000, and the fastest delivery time is only 16 minutes and 57 seconds.
Regardless of Ali or JD, according to data released in its latest earnings report, low-tier cities have contributed a large number of new users to them. According to statistics, during the 618 period, the number of new users of Jingdong station increased by more than 3 times compared with Jingdong’s purchase, and the number of orders placed by Jingdong to purchase 3-6 lines increased by 106%. Reflected in Jingdong’s second-quarter earnings report, the number of monthly active users in Jingdong increased by 10.8 million quarter-on-quarter, and the number of active users in the past 12 months reached 321.3 million.
According to the first quarter financial report released by Ali in the fiscal year 2020, more than 70% of Taobao’s new users came from sinking markets such as the 3rd and 5th tier cities and villages. In the previous fiscal year 2019 (April 2019-2019), this percentage was as high as 77%.
However, just relying on the shopping needs of young people and silver-haired people in the town, does it really mean that there is huge space in the sinking market?
As the e-commerce giants flocked in, the dividends in the sinking market are actually shrinking sharply. According to public data, although there are 600 million users in the sinking market, the number of users that can be converted is only about 300 million.
Jingdong Retail Group’s rotating CEO Xu Lei once said that online retail should return to the essence of shopping and make consumers more rational shopping.
Internet practitioner Zong Hui said in an interview with the media that “Double 11” should not be just a carnival in the first and second-tier markets. It is a good thing to have more e-commerce platforms to join the service sinking market.
He believes that ten years ago, the e-commerce platform had to face repeated competition among the limited population. Therefore, whoever controls the market and the market right of the brand can have a wider user flow. Today, e-commerce platforms are entering the mobile Internet era, facing more than 1.1 billion mobile Internet users. This also means that the platform will not be able to build its own competitive barriers by relying on enclosures alone, and constantly improving and covering a diversified user market is the key to competition.
Some analysts pointed out that the double 11 went to the eleventh year, although the transaction volume and daily activity continued to climb, but the double 11 entered the second half, the platform should not only stop at the data. In the sinking market, deep cultivation can only be harvested, and the e-commerce platform with complete commercial ecology will gradually show a competitive advantage.
Meng Yonghui, an industry observer and special commentator, believes that when major e-commerce platformsWhen immersed in the joy of tens of billions and billions of turnover, perhaps more should be considered how to make the double eleven really return to the essence of the market, not just a platform for data and traffic. For the E-commerce industry in transition and the Double Eleven, finding a new development model will last longer than over-utilizing the original routines.