Techweb November 1 / Xiaoyu
"Through the cooperation with juhuasuan, we not only promoted our supply chain upgrading, but also helped the brand to obtain 70% of new customers." Zhang Xiangfa, CEO of cat rabbit, a children's shoes brand, told techweb, "since then, we have never thought of doing e-commerce at all, and now users have forced us to innovate on our platform. Juhuasuan not only enables us to gain new customers, but also enables us to better understand how to do sinking market Business. '
Since this year, "sinking" has become the hottest word in the e-commerce market. Whether it's the new e-commerce platform pinduoduo, or the traditional powerful Alibaba and Jingdong, they are talking about sinking. Among them, Ali has made the sinking to the 'extreme', and has been 'engaged' since the beginning of the year. In March of this year, jujiasuai merged with Taobao's "daily specials" and "Taobao rush to buy" to set up a new marketing platform.
After that, at the mid-618 Shopping Festival, jujiasuan was pushed to the front desk, with a year-on-year growth of more than 215% in UV, showing strong performance. While helping consumers to find the best products in the whole network, it also made platform merchants earn a lot of money and achieve three wins. After tasting the sweet taste of 618, in this year's double 11, jujiasuan once again launched a comprehensive attack, announcing to create 1000 customized brands.
Why did Ali's sinking task go to jujiasuan
From new retail to sinking market, the essence is to get more users. Now, the online market in the first tier and second tier cities is basically saturated. Both the customer price and the growth rate of new users are almost reaching the bottleneck. By comparison, the lower tier cities of the fourth and fifth tier cities have a lot of room for development due to their weak pertinence.
According to data released by Analysys International, by the end of 2017, there were less than 500 million mobile end users in the sinking market. However, the growth rate of mobile users in the sinking market is ahead of that in the first and second tier cities, and it is expected to approach 600 million in 2020. At the same time, in terms of the number of mobile devices, although the per capita number in the sinking market is only 0.5, less than 1.3 in the first and second tier cities, it also means a huge growth space in the future. As a pioneer of the domestic e-commerce industry, Ali will not fall behind naturally, and will continue to make efforts to dig the market.
However, with Ali's entire ecosystem, there are many ways to tap the sinking market, such as vigorously promoting sales. However, this task falls on the cost-effective body. To this end, techweb believes that the exploration of sunken market is not a one-day, but a long-term war. To truly penetrate and establish a perfect system, a single brand line is required to bear this responsibility, and juhuasuan is the most consistent with the positioning of sunken market in terms of business logic, so we can see today's hot scene of juhuasuan.
"Jujiasuan is a very important part of the new supply of Taoxi." alixiaoeryuan nanny told techweb and other media that "it has a strong traffic explosive force. What we need to do is to enable businesses to create the ultimate products and achieve win-win results with businesses. '
The logic of product selection: brand power, product power, price power and explosive power
According to Alibaba's previous first quarter financial report data, in the 12 months ended June 30, 2019, the number of annual active consumers in China's retail market reached 674 million, an increase of 20 million from 654 million as of March 31, 2019. It is worth noting that more than 70% of the annual active consumer growth of China's retail platforms in this quarter came from the sinking market. It can be seen that Ali's business in the sinking market is doing very well through cost-effective gathering.
The analysis shows that the main reason why juhuasuan can achieve remarkable results in a short time is that it firmly implements the concept of providing consumers with the best products in the whole network, and it is not suitable in the choice of products and brands. It has a complete set of selection logic, which is strict in the beginning, and ensures the quality of the whole platform.
According to Ali xiaoeryuan nanny, juhuasuan divides the products into three levels, namely, ordinary commodity group, brand promotion and brand customization. Among them, brand customization, as the top of the pyramid of cost-effective products, not only requires good sales, but also single customization, either only cost-effective products, or better equity than other platforms. In short, I have no one, I have my advantage.
And in the selection of brand customization, jujiasuan has its own set of strict standards, which are mainly divided into four aspects, namely brand power, commodity power, price power and explosive power. Yuan nanny said that we will definitely not choose the low brand. 3-6 line consumers also have the demand to buy the big brand. They don't have money. They may not be able to buy the big brand, or the big brand goods are not the latest in his city.
At the same time, the mainstream goods that the mainstream people like are selected in a cost-effective way. Compared with the minority groups, they think more about providing services for the mainstream consumers. And the price power is well understood, that is, cheap, simple and rough, in the whole network should have a price advantage. In addition to the above three points, the explosive power is the core indicator of the selection of jujiasuan products. The goal is the top 1-3 single product, which requires a high turnover after participating in jujiasuan activities.
However, it should be noted that in the aspect of brand customization, jusuan does not only focus on traditional brands. Some brands, such as Carter rabbit and yo yo Mei, which grow up in the context of Taoxi, will also sink the market and do business through customized services with the help of jusuan. This is Ali's new supply mode to empower them More potential emerging brand development.
Real cost-effective: no discount on price and quality
As a customized partner of juhuasuan brand, Carter rabbit was established only five years ago, and was forced to make children's shoes at the beginning. However, because Carter rabbit has always adhered to the quality, which makes it grow into the leader of the industry in five years, and the walking shoes linger between the first and the second. According to the data, Carter rabbit was founded in 2014, and the cooperation with juhuasuan was in the second half of 2015.
Zhang Xiangfa, CEO of cat rabbit, told techweb and other media that in the process of deepening the cooperation with juhuasuan, he found that juhuasuan has higher and higher requirements for goods, not only for high quality, but also for price performance ratio. It's not only cheap but also high quality. In other words, the price will sink, but the quality cannot be discounted.
In fact, for many consumers, there is a misunderstanding, that is, users of sinking market only care about price, not quality. From the open case of jubecare, the customer unit price of baby products brand BabyCare in the sinking market is higher than the average customer unit price, the average unit price of Feihe milk powder and other industries is also far higher than the average unit price of the whole market, and the sales are better than the first and second tier cities.
To this end, Yunxiang, general manager of juhuasuan brand operation, pointed out that users in the sinking market do not need a cheap product, but a high cost-effective product. Especially for some big brands, consumers have a stronger demand. So instead of sinking the market, we need 9 yuan and 9 yuan, and we need very low price goods.
It can be said that "squeezing" businesses to pursue lower prices is a cost-effective job, but quality is also the bottom line of cost-effective. It is understood that this year, 11 pairs of Carter rabbit launched a customized walking shoes, the market price is usually about 150, but only need more than 70 yuan in the cost-effective, plus some concessions, it can reach more than 60 yuan. However, although the price has been reduced a lot, the selection of materials and the design of shoes have maintained the previous high standard requirements. Zhang Xiangfa revealed that this pair of shoes had been sold in advance for three or four thousand pairs in a week.
There is no hard business in the world
"Let the world have no hard business", which is Ali's philosophy. At the 20th anniversary celebration, Zhang Yong once again emphasized his original intention and said that he wanted to digitally empower businesses and grow together. It is worth noting that while doing business in the sinking market, juhuasuan is also empowering businesses. In addition to providing traffic support, it also promotes the digitalization of businesses and the transformation of the supply chain.
First, in terms of traffic. There is no doubt that after the launch of the customized brand, the latter will provide the best resources to promote the sales of goods. 'we always put efficiency first,' Mr. Yun said. In the process of being a sinking market user, the link has been shortened. Brands do not need to build channels, do not need to do a lot of promotion platform. Moreover, there are deterministic resources and flows, so it is very fast and very high in the whole efficiency.
Secondly, in the aspect of supply chain transformation, because the cost-effective of the brand goods is required to have high cost performance, the price is lower, but the quality still needs to ensure high standards, which forces the businesses to improve their supply side capacity and efficiency at the production side. Zhang Xiangfa revealed that at that time, the 99 cost-effective customized products took a week from the design to the production of shoe samples, and the final shipment took a month. Among them, there are 20 days of customized materials in this month, and the delivery time is about 7 days from the material to the factory. By comparison, normal shoes, from the material to the factory, almost in 60 days.
He said that this speed has broken the history of Carter rabbit, and is also incredible in the whole industry. Under the "high pressure" of poly cost-effective, the company needs to develop a sinking market with low price, guaranteed quality and profit, only upgrading the supply chain. Zhang Xiangfa said with a smile that technology is forced out.
In addition, for businesses, the digital assets given by jujiasuan are very important. In the process of cooperation, juhuasuan will analyze and draw pictures according to the data of platform users, tell businesses how to make product design, how to price, how to please consumers in style and technology, so as to launch customized products to make pop ups. After 21 years of establishment, Pioneer Electric Co., Ltd. cooperated with Alibaba, launched the baseboard heater product through the user portrait on the platform and the way of digital operation, and set the price between 399-599. In a good time, it can sell 30000 sets a day.
Write at the end:
In the new consumption era, sinking market has become a new arena for e-commerce industry. However, sinking requires not only low price, but also high quality. Open up both ends of consumption and production, enable the digital development of businesses, and use cost-effective products to boost consumption upgrading in the sinking market. Only if we really know how to do business in the sinking market, can we win the final victory in the battle of the new consumption era.