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The sinking market has already existed. Why did the phenomenon-level Internet companies based on the sinking market appear in the past few years?

Editor’s note: This article is the “Powder Life” CEO Li Hongxing’s share on “Pro·WISE Salon”, edited Organize the release.

About “Powder Life”

“Powder Life” is a mobile phone preferential shopping app of Hangzhou Pink Elephant Technology Co., Ltd., which is based on the S2B2C-based shopping guide concession social e-commerce platform, and has been committed to the supply of all categories of the whole network. Relying on a large number of B-side e-commerce providers to provide users with coupons and obtain users, unlike the existing CPS service platform that only provides shopping guide concessions, the powder life also has its own set of membership system, and also develops its own based on the membership system. E-commerce service.

Since the launch in June 2018, the cumulative number of users has exceeded 10 million, and the GMV is nearly 10 billion yuan. Users can purchase up to 8 times a month, and the long-term repurchase rate can converge to around 30%. Powder Life has received $10 million in Pre-A financing and is exclusively invested by DCM.

Who is the consumer?

To be honest, we are not a platform for the sinking market. We mainly target ordinary consumers on the platform, but they have a lot from the sinking market.

I have been doing e-commerce before, and e-commerce suddenly came out with a lot of work, it developed rapidly, and Ali is also very concerned about the fight.

I am from a small county in a fifth-tier city, and I am a sinking market consumer. Some time ago, when I went back, I chatted with my neighbors and asked him if he knew Taobao. He said that he knew but didn’t use it very much. He asked him Jingdong. He said this Tokyo, I know, but I don’t need it (he doesn’t know Jingdong).

Everyone here may feel that this concept is not very mainstream, but in fact, from a macro perspective, these people may be the majority of the Chinese Internet. In addition to first- and second-tier cities in China, there may be more than 300 prefecture-level cities, and 2,856 at the county level. There may be more than 40,000 town-level and 660,000 villages. These add up to the percentage of the country. ? First- and second-tier cities are very, very large. The population may have a population of less than 400 million in the first and second lines, and the remaining 10 billion are all in the sinking market.

Image Source: Pink Elephant Life

Features of sinking market consumers I have summarized these points:

• First, an acquaintance society, I only look for acquaintances when I am doing anything. When I was in Beijing, a relative came to Beijing to see a doctor and called and said that you were helping me find an acquaintance at the hospital. I said that I don’t know acquaintances, I can help you register, you can hang the expert number, he will ask how you may not be acquainted in the hospital. On the other hand, the circles are small and familiar with each other. Promotions can be made anywhere in our county town, and no one in the county can know it because it is so small.

• The second is cheaper. This is in 2017. There are 80% of the population in the country, and the disposable income per month is less than 3,000 yuan. This is one of the reasons why the fight has risen very quickly in this era.

• The third is strong consumer willingness, you will feel that they earn less, but it is not. When chatting with them, you feel that their pressure is smaller than ours, and happiness is stronger than ours. They may be richer in their homes, buy a house, and have no big expenses after giving birth. Going home for the Chinese New Year, my classmates got together. I got two cars in a small county town. Of course, the car is a domestic car, but from this point they are willing to spend. And they seldom make loans, either full money, or borrow money, and borrow money is also full.

• Four time is more leisure time, and I can go home for lunch at noon. Many of them really don’t need to work overtime, even if they are almost completely incomprehensible. There is also the fun of playing with the fun head. Before going home for the New Year, I installed a funny headline in a fellow villager. He said that you must install it. After I returned to Hangzhou after the end of the year, he still asked me if I did not install it.

• Five is that their academic qualifications may be lower, the judgment is relatively weaker, and they are less likely to think independently. I saw the marketing of false news at first glance, they will be widely forwarded, and especially believe that these so-called experts, for them, on TV, in the newspaper is true, watching e-commerce advertising is an expert wearing a white coat I think it is ok, this is a crowd feature.