The struggle for capital has always been fierce. As soon as Tencent's MINISO was about to go public, Ali began to attack. The first "One-Yuan Store" opened in Shanghai, and dimensionality reduction to crack down on the "Ten-Yuan Store" is really menacing.
However, this operation of Ali is definitely not only affected by the "ten yuan store", but also the sinking e-commerce companies including Pinduoduo.
After all, 1 yuan stores are open at the door, who needs to join in online shopping?
Ali opened a dollar store, where is the sword pointing?
On October 9, the first "One Yuan Experience Store" of Taobao Special Edition opened in Shanghai. The "One Dollar Shop" is part of the "Factory Goods Window Plan" jointly created by Taobao Special Edition and 1.2 million industry belt merchants. It is reported that Taobao Special Edition plans to open at least 1,000 "1 yuan stores" across the country within three years.
To be honest, due to Pinduoduo’s education in sinking markets, it’s not uncommon to see something worth one dollar online, but it’s the first time I can buy such a cheap thing offline.
All over the world, "Yuanyuan Store" has unique charm. With the "one dollar" label, Dollar Tree (grocery retail store), which has been in business for 34 years, has seen positive same-store sales growth for 14 consecutive years, and its stock price has also risen. Especially when the economy is down, people prefer cheap and practical things, and similar shops are more popular.
From a very early time, China has had "one-yuan stores" and "two-yuan stores" all over the world. Even when e-commerce has become more and more prosperous in these years, it has also become popular with the "miniso premium products". Internet celebrity shop". Relying on the business model of small profits but quick turnover and the low price advantage of large-scale production, the ten-yuan store expanded rapidly.
In fact, whether it is a dollar store, a two dollar store, or a ten dollar store, they will not really only sell goods at the same price. Low-priced products are actually used to drain traffic, and Ali's efforts to launch small products offline are aimed at the vast sinking retail market. This is a big blow to Pinduoduo and MINISO, which is ambitious in the sinking retail market.
Ali's new retail layout completes the escalation of the sinking retail market?
Almost on the same day that MINISO submitted its prospectus, Taobao's special edition launched the "One Yuan More Fragrant Festival", with more than 100 million factory goods all 1 yuan free. I personally went off to face the sinking retail, and faced the MINISO premium products.
After Tencent first invested in MINISO, Ali accelerated the completion of the new retail puzzle. After the renovation of Yintai and Gaoxin, and the acquisition of offline department stores, sinking retail is the top priority of the entire new retail business and the last link in Ali's new retail layout.
In the ever-changing sinking retail market, everyone wants to be invincible, e-commerce no longer dominates everything, and offline stores are not always sticking to the rules. Online and offline invade each other, and there is no longer a clear distinction.
MINISO, which "mainly attacks" offline, used O2O distribution services to cooperate with Meituan, Ele.me and JD Daojia as early as during the epidemic, and now it is clearly stated in the prospectus that the listing recruitment funds will be used The development of online business and the strengthening of digital operations are gradually moving towards omnichannel.
As for Ali, after launching Taobao specials to break through the sinking market, it once again launched the offline version of the "One Dollar Shop". The online and offline two-way layout is a big blow to MINISO, which is eager to go public.
First of all, the price of goods and SKU advantages are there. Are you not interested in the one-yuan household goods? The powerful Ali spends a lot of money to sink the market and will give you the "lowest price" for "low prices".
The second is Ali’s strong supply chain advantage. According to Ali’s latest data, there are 1.2 million merchants on the Taobao Special Edition, 41% of which are directly supplied by factories. That is to say, there are already more than 500,000 industrial belt factories on Taobao specials. Edition opens a shop.
MINISO’s directly-operated stores only accounted for 3.1%, and third-party stores, including franchise stores and dealer stores, accounted for 96.9%. There are more than 4,000 stores around the world, and MINISO, which relies on large quantities to get goods from factories and sell them at low prices, will no longer occupy the low-price front line, scale efficiency, and supply chain advantages are not worth mentioning in the face of such a volume.
Moreover, under the rapid expansion, MINISO has not yet made a profit. According to the prospectus information, revenue in 2019 was 9.4 billion yuan and a loss of 290 million yuan; as of June 30, the 2020 fiscal year, MINISO had revenue of 9 billion yuan and a loss of 260 million yuan. Ali's efforts to offline have cast a shadow over the prospects of these stores.
However, the current "ten yuan shops" have already occupied the core business districts, with a certain amount of passenger flow, and have formed a brand effect in the minds of young people. These advantages Ali is still insufficient in the short term.
Why does Ali Yiyuan Store have a greater impact on Pinduoduo than MINISO?
However, with the world of Ali's "ten yuan shop", perhaps more anxious than MINISO is sinking e-commerce Pinduoduo.
As we all know, "Taobao Specials" was originally launched by Ali to attack Pinduoduo. When Internet traffic has peaked, the sinking market does have strong vitality and charm. But when Pinduoduo has already occupied the minds of users, apart from constantly advertising as subsidies for Taobao specials, there seems to be no good way to stop Pinduoduo's rapid growth.
In the online sinking market, Ali has always been suppressed by Pinduoduo, but this time Ali took a salary from the bottom of the tank and extended its position to offline. The offline is Ali's best counterattack.
Compared with Pinduoduo, Alibaba has lost its first-mover advantage in the sinking market, but as the largest e-commerce traffic portal, Alibaba has incubated Tmall Supermarket, Word of Mouth, Cainiao, etc., in cloud computing, warehousing logistics and financial payment. The large infrastructure has been fully constructed, and these are precisely what Pinduoduo lacks.
The development of a ten-yuan store offline can greatly shorten the consumption path of users. When there is no obvious difference, consumers will usually not want to go far and close. In the short term, Taobao Special Edition plans to open at least 1,000 "1 yuan stores" across the country within 3 years. It is very possible to do so, but it is difficult to say whether Pinduoduo can lose money from online to offline. Don’t forget Pinduoduo. It is still losing money.
There is Intime Department Store on the top and a dollar store on the bottom. For new retail, Ali has basically completed the layout, and Pinduoduo has helped Ali complete the education in sinking the market, and Ali has no room for counterattack, using "one yuan" to pull the price to the bottom line. While Pinduoduo was still paying close attention to "pay more", "extreme rabbit logistics" and "wholesale", Ali had already gone farther and farther on its new retail road.
Author: rather lack
Source of this article: Songguo Finance, please indicate the copyright