A ladder that requires the channel to sink, and a handrail that requires the brand to go up.
Editor’s note: This article comes from the WeChat public account “Ginkgo Finance” (ID: yinxingcj) , author Chen Brew, Edit Yang Yizhi. Released with authorization.
On May 27, JD.com and Kuaishou suddenly announced the alliance.
This news is like a bombshell, which affects the nerves of various e-commerce giants.
It is reported that JD.com and Kuaishou will formally collaborate on the JD.618 in June this year and the “Quaishou 616 Quality Shopping Festival”. During June 16-18, some of the products delivered by the Kuaishoudaren live broadcast will come from Jingdong Self-employed.
Between giants and verticals, the pattern of the entire e-commerce industry will be rampant in 2020, and it is still unknown who will die. Jingdong and Kuaishou, one deeply cultivated within the fifth ring road, and the other emerged outside the fifth ring road.
Can the two form an alliance?
01 handrail
Quick hands are now in the top spot in the sinking market and no one can shake them.
Founded in the “small town youth”, Kuaishou had previously carried the banner of “not exporting values” and told the true story of ordinary people. More than 80% of the revenue came from live broadcasts and rewards, so I was not worried about the realization of the problem.
But once the “workshop-style” advertising and creator platforms were prone to encounter ceilings, they were no longer feasible in the new era. Since 2018, Kuaishou has successively launched marketing platforms, the “Kaishou Shopping Assistant” applet, “True Selection Meeting” and subsequent upgrades. In the middle of last year, Su Hua and Cheng Yixiao also raised their business revenue targets by 50% in their internal letters to employees.
After the rise of live streaming with goods in 2016, Kuaishou did not directly encourage online influencers to bring goods, but he accidentally found another big revenue channel. Milk powder, fruits, souvenirs, and even tractors are only what you can’t think of.
And this year, Kuaishou will continue to carry forward this unexpected gain and strive for brand improvement.
In March, Kuaishou launched the “Super Brand Day”, which has attracted Li Ning, Mibon, Adidas, Perfect Diary, and Procter & Gamble.For many merchants, the first 7 games had a turnover of 620 million.
The most delightful thing is that the Gree selling special event jointly organized by Kuaishou and Gree not long ago, Dong Mingzhu personally appeared in the live broadcast room, and the final 3-hour turnover exceeded 310 million, and the average customer price exceeded 3000 yuan.
According to data from iResearch, the scale of the live broadcast e-commerce industry is expected to reach nearly 900 billion yuan in 2020. Even if the potential of fast-hand live broadcasts is unlimited, both the infrastructure and the brand effect are in urgent need of improvement.
Although Kuaishou has been pursuing brand improvement this year, the previous “small workshop” style celebrity live broadcasts are only for sale and lack a complete supply chain to support a series of problems such as product quality and after-sales.
This established impression has caused many consumers to focus on participation with a lively attitude, which has also led many brands and merchants to decide whether to join fast-hand e-commerce.
Up to now, although the fast-handed e-commerce has made a decent appearance, there are still many merchants and brands that are on the sidelines of their prospects. For Kuaishou itself, there is a deeper level of anxiety.
No one can deny that “the world has a red head, and half of it is fast”. But the question is, in this era of live streaming and rampant sales, what can quick hands rely on to better retain and revitalize these influencers?
This path by instilling feelings and reasoning is definitely not going to work. Before that, there was a fast-moving Internet celebrity who wanted to become a portal. I am afraid that the only answer is to access more channels and resources, so that the Internet celebrities are inexhaustible.
Under the air of live streaming, if you want to get rid of the dilemma of monetization, find the brand’s upward handrail and take a slice of it, without departing from the original intention of the content values.
The best way out is to get the giants to join in and make up for the shortcomings of their capabilities.
Ali has a Taobao live broadcast, and Kuaishou cannot dominate the cooperation with it, which is not the best choice; Pinduoduo does not meet the upward tune of the Kuaishou brand; Suning and Gome have too weak e-commerce attributes, and the traffic is too tempting for them In the end, it is inevitable that the birds will try their best to hide the bow, and the options can basically be excluded.
Only by finding a supply chain-based giant with strengths can we continue to grow bigger and stronger. Jingdong is undoubtedly the best choice for quick hands.
02 Ladder
Sinking has been a lingering topic in the Internet industry in recent years.
Although “rural surrounding cities” is no longer a new word, the flow of rich minerals outside the Fifth Ring Road has allowed a large number of beneficiaries in every era and every industry.
This wave of traffic dividends outside the Fifth Ring Road, Jingdong is not hindsight.
In fact, before Pinduoduo’s rise, Taobao and JD.com were already sinking in the marketIt has been a long time to explore, but due to the lack of popularization of mobile Internet and smart phones, the necessary infrastructure in the industry is not perfect, and the early two exploration results have not been satisfactory.
For a long time, the giants have become a unique landscape in the e-commerce industry. The digital economy think tank published a set of data last year. Only 49.3% of the users of Pinduoduo and JD.com overlap, and the user overlap of JD and Taobao is as high as 92.3%.
That is to say, JD.com and Taobao already had bayonet in the same pool, and JD.com ’s barriers in first- and second-tier cities are hard to overcome. The sinking market JD.com wants to penetrate, but also needs to change the way it plays in first- and second-tier cities.
In the past one or two years, whether it is a major strategic decision or an earnings conference call, JD.com senior officials have been releasing the same signal from time to time, and will pay special attention to the sinking market in the future.
From the financial data released by JD in the last two quarters, JD’s sinking strategy has indeed achieved good results.
In 2019, JD.com ’s annual active purchase users increased by 18.6% to 362 million from 305.3 million in 2018; by the first quarter of 2020, the annual active purchase users reached 387 million, an increase of 25.4 million from the previous quarter and a year-on-year increase of 24.8%.
According to the user’s delivery address, users in third- and sixth-tier cities account for more than 60%, and GMV accounts for more than 50%. This is mainly due to the two-wheel drive of Jingxi and Jingdong main stations.
We can find from the data that with the end of the “education” period of online shopping awareness of users in third- and fourth-tier cities, users’ consumption levels and awareness will increase, and users will no longer pursue low prices and high quality. While high prices have become their first choice, they are also pursuing high-quality and high-priced consumer experiences.
Jidong Seven Stores can be popular in Xinjiang regions without shipping, which proves that JD.com can copy core advantages such as smart supply chain and smart logistics to remote cities and towns. This is just a matter of time, and it is also after the power. The core competitiveness of the business era.
With the popularity of mobile Internet and the continuous improvement of retail infrastructure, the sinking market has gradually matured. Jingdong is not only strong
Sinking has been a lingering topic in the Internet industry in recent years.
Although “rural surrounding cities” is no longer a new word, the flow of rich minerals outside the Fifth Ring Road has allowed a large number of beneficiaries in every era and every industry.
This wave of traffic dividends outside the Fifth Ring Road, Jingdong is not hindsight.
In fact, before Pinduoduo’s rise, Taobao and JD.com were already sinking in the marketIt has been a long time to explore, but due to the lack of popularization of mobile Internet and smart phones, the necessary infrastructure in the industry is not perfect, and the early two exploration results have not been satisfactory.
For a long time, the giants have become a unique landscape in the e-commerce industry. The digital economy think tank published a set of data last year. Only 49.3% of the users of Pinduoduo and JD.com overlap, and the user overlap of JD and Taobao is as high as 92.3%.
That is to say, JD.com and Taobao already had bayonet in the same pool, and JD.com ’s barriers in first- and second-tier cities are hard to overcome. The sinking market JD.com wants to penetrate, but also needs to change the way it plays in first- and second-tier cities.
In the past one or two years, whether it is a major strategic decision or an earnings conference call, JD.com senior officials have been releasing the same signal from time to time, and will pay special attention to the sinking market in the future.
From the financial data released by JD in the last two quarters, JD’s sinking strategy has indeed achieved good results.
In 2019, JD.com ’s annual active purchase users increased by 18.6% to 362 million from 305.3 million in 2018; by the first quarter of 2020, the annual active purchase users reached 387 million, an increase of 25.4 million from the previous quarter and a year-on-year increase of 24.8%.
According to the user’s delivery address, users in third- and sixth-tier cities account for more than 60%, and GMV accounts for more than 50%. This is mainly due to the two-wheel drive of Jingxi and Jingdong main stations.
We can find from the data that with the end of the “education” period of online shopping awareness of users in third- and fourth-tier cities, users’ consumption levels and awareness will increase, and users will no longer pursue low prices and high quality. While high prices have become their first choice, they are also pursuing high-quality and high-priced consumer experiences.
Jidong Seven Stores can be popular in Xinjiang regions without shipping, which proves that JD.com can copy core advantages such as smart supply chain and smart logistics to remote cities and towns. This is just a matter of time, and it is also after the power. The core competitiveness of the business era.
With the popularity of mobile Internet and the continuous improvement of retail infrastructure, the sinking market has gradually matured. Jingdong is not only strong