Tiger sniffing: “consumption upgrade” and “consumption sinking”, this year, there have been many new forms and new features in the retail consumption field. For the pioneers of the field, there are too many questions to answer: What are we talking about when we talk about new consumption? How to deal with upgraded consumption and sinking market? What kind of capabilities do different retail companies need?
The tiger sniffs organized a roundtable discussion on the theme of “increasing new consumption and sinking the big market”. The tiger sniffing room and the general manager of Beicang Jiang Ying and Xiamen met Zhang Li, Chairman of Fufu Convenience Store, Liu Huaili, Assistant President of Suning Retail Cloud Group, and Liu Jiarui, General Manager of Innovation Business of Jingdong Retail Group’s Fashion Home Platform Business Group, chatted about the rising and sinking consumption.
Fang Hao: Whether it is Wei Zhe’s speech or the sharing of daily fresh Sun Yuan, “new consumption” is mentioned. What is new consumption, what are the characteristics of new consumption, and our sharing will give some answers.
Today’s content “One Billion Consumers”, one dimension of interpretation is that the WeChat users live 1 billion in 2018, which means that in this era, many people are composed of ID, avatar and circle of friends on WeChat. Not exactly you. Just like the Chinese market can’t just look at the North and the Guangzhou-Shenzhen, the Beijing market can’t just look at the five rings, and we must see the panoramic China.
There is a saying that 2019 will be the best year in the next 10 years, so what are the guests going to do in 2020, and are there any confidence that 2020 is better than 2019?
Disappointing winter, spring of hope
Liu Huaili: Suning Retail Cloud Business is a new business with only two years of age. The business is currently focused on the county market, helping retailers in the county to transform and empower smart retail. At present, there are about 4,500 O2O smart retail stores in 31 provinces in China. It is expected that the total sales of these stores will exceed 10 billion in 2019. The main products under these stores are focused on home appliances, but they can also buy liquor, mother and baby.
Is 2020 the most difficult? What is the future like? I have not studied the macro economy in particular. From my own experience, I feel that the situation is not optimistic. Communicate with a guest friendWhen he said that 2020 is a year without a slogan, I think this sentence should be true.
Zhang Li: No matter what will happen in 2019 and 2020, we can change a lot of things, and more is to change ourselves. My own judgment is that the situation will be colder and colder than from Xiamen to Beijing. This kind of cold is structural, not just cyclical, so 2020 will definitely be harder than 2019. But it is also difficult to have benefits. Just like when you go to middle school, the harder the exam questions are, the easier it is to appear. Similar to the “frozen dead flies are not enough”, another type of business will be out as soon as possible, which is normal. I think it is a good thing, it is also a test of our affairs.
Jiang Yingying: Babe Group mainly focuses on e-commerce business. The model of Beicang is relatively simple. It is to integrate the supply side of the brand and provide special sales to the micro-business, physical store and purchasing people to help consumers. Get better goods.
Will 2020 be a difficult year? I feel that it is not an easy year from the perspective of the overall macroeconomic situation. But for those who do e-commerce, it will promote and force us to do things with supply chain value, and pose greater challenges and demands for us. For Beckang, it was officially launched on July 20, 2019. In 2019, it was the year of sailing. In 2020, it actually had a big growth expectation, regardless of the size of the user or the size of the business.
Liu Jiarui: Jingdong Fashion Home is currently doing expansion and innovation in community e-commerce. At present, there are more than 100,000 communities in the country, integrating KOC to help Jingdong to further sink.
I feel that every year is an opportunity and a difficulty. No year is particularly good, and no year is particularly bad. But this year everyone feels more difficult, but it has not been so difficult in the past year. coming. In the more difficult times, the capital market will be more calm and will test our long-term endurance.
As the book says, “This is a disappointing winter, but it is also a spring of hope.”
Fang: I often see the concept of “sinking the market”. The four guests are just under the two lines (mainly by the store).On the two online lines (the WeChat community operates mainly), how do you understand the word “sinking market”, is the “sinking market” consumer equal to the town youth? How do you do this in the market?
Liu Huaili: Our business started in 2017, when I personally did not hear the word sinking. In 2018, the “sinking market” suddenly became very hot. In the interior, we often became very confused. Some people called it “sinking market” and some people called “low-line market”. We used to call it “county town market”.
I personally prefer to use the “county town market” to refer to these low-line market groups. I feel more intuitive in the towns and counties. There are almost 2,000 districts and counties in China, about 3-4 million towns and villages. In my mind, there are 500,000 people in a normal county in China. There are almost a dozen townships below. . There are almost 50,000 people in each township, and there are almost 10,000 households in every 50,000 people. Looking at this market group in this way, it is easier to form an intuitive impression in my mind.
Over the past two years, I have ran almost more than 30 provincial-level administrative units in China, and more than 1,000 districts and counties, which are relatively familiar with the market. At present, from the perspective of retail cloud practice, we have more than 500 stores in Jiangsu, Guangdong and Beijing and Tianjin. In Shandong, Anhui, Zhejiang, Henan, Sichuan, Hunan, Hubei and other places, the number of stores is almost 300.
I think the sinking market will eventually be related to population and economy. From the location of the actual store, it can also reflect this. China has a vast territory, and it will take on different forms from the east to the middle to the west.
Zuo Qinglong right white tiger and pit
Zhang Li: Regardless of sinking or going up, the first is to determine how high the company’s own “things” are. All “things” must be in love with the downstream. The higher the situation, the higher the position of the station. Just like Hermes running towns and villages, if a small company has to set a high position like Mount Everest, it will definitely die.
Second, the company’s decision can only go downstream, so that water can flow. Of course, China has a special situation. As of today, farmers still account for nearly 10 billion. This is a core market, but there are major decentralized defects, and whether the supply chain can keep up with such a market is more critical. For example, to open a convenience store in townships, but it is a small shop, can the cost of logistics and distribution keep up? Enterprises do not make markets based on slogans and concepts, but on the market based on whether they can live and nourish.
There are more concepts now, and private traffic will have other concepts for a while. There are some literati hooligans who dig pits for others every day, telling you that the situation is very good now, and the scenery behind me is infinite. Then I will tell you that there is a mountain on the left, a mountain on the right, and a white tiger on the left. It’s only a key time to tell you that there is a mountain in front, it’s a pit.
I think that everything should be done according to the company’s own situation. Let’s go down and go up. Don’t follow the concept of literary gangsters.
Jiang Yingying: I understand that the sinking market consists of two parts, some of which are the uncovered people and markets in the so-called second, third and fourth tier cities, and the other part is in the original 456th and sixth tier cities. Covered area.
Expanding the sinking market, I think e-commerce is a pioneer compared to physical retail. Today’s social retail or social e-commerce is a pioneer in the vanguard, compared to traditional e-commerce or relative to centralized e-commerce.
In today’s social e-commerce relationship, there is a lot of company involvement in the entire sinking market. Whether it is a lot of competition or Beidian, Beicang, including Suning’s new retail. From the current judgment, when we cover the sinking market, we don’t need to go offline to open a store, but through a lot of distributors, we can reach the people and areas that we didn’t touch.
As a platform, the thing to do is to integrate the brand side upwards. The brand party will sell the goods to the sinking market by entrusting the goods to the platform and then integrating them downwards by the platform to millions of small micro-distributors. This is the solution to this problem.
Liu Jiarui: We have a data here to prove that Jingdong’s active users in the past 12 months reached 334.4 million, an increase of 13 million from the same period in the second quarter, of which more than 70% of new users came from the sinking market. From our innovation projects, new users in the sixth-tier cities account for 28% (in our plan).
We found that the town youth is a big force, with more than 200 million people, and the monthly disposable income exceeds 2,100 yuan. The great effect they bring is not just that they buy it themselves, but they can also drive people around to buy it. Many people who are older than them, say threeForty years old has a very strong purchasing power in the sinking market. Family women with houses and cars are gradually affected by the young people in the town and join the purchasing army of e-commerce, so the growth in this area cannot be ignored.
One of the programs I am doing now is very similar to that of Barkang. Find consumers with key opinions and let them drive further consumption by people around them.
Surprise and surprise in sinking market
Fang: Jiang always looks at your dimensions. Can you see the characteristics of your user grouping?
Jiang Yingying: Just asked if the sinking market is equal to the town youth? Speaking of the young people in the town, they will think of boys and girls in their twenties and twenties, and even think of the impression that non-mainstream boys are similar. But what we are seeing is the explosive power of a large number of Bao Ma people who want to buy things for themselves, for their husbands, for their families, for their children. The portraits of the most mainstream people in social retailing should be this group of people. Their demographic characteristics cannot be counted as KOL, or even in the case of large C, the keyword description of KOC is relatively close.
Fang: The market that I just talked about is the concept of space. Let’s return to the concept of customer group. For example, in your business, have you ever had some unexpected and very pleasant surprises, for example, this thing is actually in this The place sells well, this thing sells well at this time, a story like this.
Liu Huaili: I don’t think there’s a surprise. Some accidents. We also inadvertently broke into the field of smart retail sinking market. Over the past two years, the speed of retail cloud business development has been beyond my expectation. Our goal in 2018 is to make 500 stores. I did not expect to open 2,000 stores nationwide in 2018. From 2019 to the present, a total of 2,500 stores have been opened.
In terms of smarter retail platforms with lighter assets, our business has exceeded 10 billion. In terms of itself, the business is still relatively healthy. From the perspective of partners, the current national 40More than 00 partners, estimated that 80% of partners are profitable. Behind this figure is actually the current decline in offline retail stores, which I feel is very unexpected.
In terms of surprises, I personally feel that today is a good opportunity for the sinking market. For many companies or practitioners, doing business can go with the trend, different categories have different opportunities, and not everyone can grasp such opportunities.
Jiang Yingying: I share a case where the consumption power of the sinking market sometimes exceeds my imagination. We used to have a watch that sold for 10 million a day for just half a year. Originally thought that the sinking market is not interested in light luxury, but after the bags of Coach and MK, there are millions of sales.
The sinking market is not without budget, but it is quite abundant. Like my younger brother, the money they spend on eating and drinking is not significantly different from me. The brand cares about the absolute value, that is, how high the price is, and the sinking consumers are very concerned about how big the price difference is, like “Double 11” has a beauty instrument, Tmall’s pre-sale price is more than 8,000, we sell more than 6,000, The result is that it’s selling. Therefore, I feel that the sinking market has consumption power and can infect more people to generate consumption.
Liu Jiarui: Sharing a data, during the “Double 11” period in the past, the sales of our luxury goods in the sinking market from the third to the sixth line increased by more than 230% compared with last year. The sinking market is not just low consumption. There is also a high consumption. In addition, the purchasing power in the jewelry and gold category markets is also very strong. These brands have proved that the sinking market is not a product with low quality and low price. As long as this product is good, the purchasing power will be strong.
Fang: I have a question for the convenience store. Xiamen Seefu Convenience Store is the largest convenience store in Fujian. It is also the top 20 in the top 100 convenience stores in China. I have been to Xiamen for two points. The first is that there are toilets in the convenience store. If you have been to Japan, you may know that many convenience stores have toilets, but see Fufu Convenience Store is the first convenience store with public toilets in mainland China. The second is that many stores sell coffee, Xiamen is a tourist city, and the business atmosphere is not north to Guangzhou. Strong, why must I insist on selling coffee?
Zhang Li: My idea is not to understand the sinking city or sinking market. The Xiamen house is not cheap at all. The newly opened real estate is 100,000 flat, not lower than other places, and there is a huge consumer market. . Nowadays, many merchants have turned the sinking market into “disintegration” and put down the bad things. I think there is a misunderstanding.
Today, many of our convenience stores have arrived in the township and are the best business in this township. We often put the best products in the towns and towns at the same price as the city. At this time, the so-called sinking market willI have to admit that “Double 11” I bought a lot of things myself, I am very sensitive to the price. Secondly, from the current business practice of retail cloud, I think that in the county market, the price factor is very obvious to promote the business. This is my first view on the sinking market.
Second view, in today’s economy, the diversification of the entire channel, micro-business, micro-store, social, community, etc., consumers themselves have no choice, so they upgrade the brand and the endorsement of brand endorsement Product cognition is very important.
The third point is that in a small community in the county town, such as a town of 50,000 people, there may be 10,000 households. If the local community relationship is OK, he knows 70% of the local people. Therefore, in the market of human-based business in the county, there is temperature operation and service, which I think is very important.
Fang Yi: Zhang Li, do not rely on low prices to win, how to interact with consumers in this convenience store scene?
Zhang Li: The essence of business is three things: good products, low prices, and convenient purchases. Apart from these three, they are all nonsense. The relationship between quantity and price between economic supply and demand is unavoidable, so the price is always profit. The price of the game, one is by subsidies, after the subsidy is over, you will die; second, the total cost is leading, reduce costs through management, and hit the price, you are the youth forever.
Jiang Yingying: Is price subsidy useful or useless? I feel that I want to divide the product. Pure price is not necessarily useful on a class of goods. With cross-border beauty and light luxury, these categories of brand true and false and security, users do not simply look at the price, this is the key to self-operated for the centralized e-commerce. In social retailing, the value of the recommender is magnified. In this perspective, it is not purely a concept of low price theory. Prices are indeed a very good weapon when there are no safety issues with more standards.
This question does not need to be answered. We have been asking where the low price comes from. Just mentioned that the scale is a very important point. For the traditional centralized e-commerce, the scale of this kind of promotion is realized by the poly cost. Get low prices, for social e-commerce, this kind of instant detonated social sales is a very key point to get low prices, with the direct cooperation of the brand side.
In social e-commerce, there is usually a certain explosion at a certain time, through the centralized detonation of millions of people while selling, to achieve a very large user scale, which is some way we get low prices.
Liu Jiarui: I think low prices are a very eye-catching way, but it is definitely not the long-term or only way to decide the outcome. Everyone will see if the low price really corresponds to good quality. The final decision is that the sales volume must be the quality of the product and the final service. These three factors are the factors that determine the final result of the long-distance running.
Jiang Yingying: We are mainly based on e-commerce, which involves more differentiation in the market. There is a S2B2C in the business model, and a small B in the middle is the demand that is differentiated around the local population. More links are made through the small B, and the matching is done through them. The role of the platform here is to accumulate enough small Bs, let the small B differentiate into different people, and then match different people to different supply chains. This is what the platform is doing.
Liu Jiarui: The biggest advantage of Jingdong is that the products are rich, and the service and quality have a certain reputation. From this perspective, we are doing B2K2C’s “supernova” program, which is to customize different small programs and supply chains for different groups. For example, for the fragrance of the Bao Ma group, Jing Xiao Ge for the courier brother.
Fabulous: The last question, suppose you have a cronies telling you to go back to your home business. His hometown is at least three markets below. Give him a word of advice, what would you say?
Liu Huaili: Do what you are good at, do what you are good at in your past experiences, do your own parents, relatives, friends, and things that are good at the whole social relationship.
Zhang Li: Attached to a value network, don’t be alone.
Jiang Yingying: Look at the maternal and child shop.
Liu Jiarui: We just had a sinking market research recently, and there is a saying called “Don’t walk gently into that good night”. The other sentence is “the atmosphere determines the share.”