Text/Mantis Finance (ID: TanglangFin)
Author/Chen Xiaojiang
In the hypothesis of "rational person (rational person)" in economics, the only goal pursued by the subject in economic activities is the optimization of its own economic interests, such as maximizing the satisfaction of consumers and maximizing the profits pursued by producers化.
This kind of "rational man" who is absolutely proficient in judgment and calculation, does not use emotions and blindly obeys, to a certain extent, may be difficult to truly achieve. However, the flattening of the Internet has accelerated the dissolution of barriers to information asymmetry and barriers to commodity circulation channels, allowing consumers to choose more and increasing consumption rationality is also an objective reality.
Especially in the case of limited economic conditions, it will become more obvious, such as the impact of the epidemic in 2020 that everyone can perceive, and the decline in income expectations will lead to an increase in the awareness of rational consumption. The rise in consumption rationality has caused a surge in practical consumption. The sinking market that pays more attention to cost-effectiveness and the C2M model will become hot in 2020. This is related to this.
Specifically, with the help of the C2M model, the Taobao special edition, which is focused on sinking the demand market, exceeded 100 million monthly active users for the first time after 9 months of launch, becoming the top three platforms in the sinking market. Its user scale in 2020 increased by 550% year-on-year, becoming the fastest growing application in the annual user scale in QuestMobile's "2020 China Mobile Internet Annual Report", which is one of the epitome of it.
Therefore, in 2020, as the world's first shopping app with C2M products as its core supply, the rise of Taobao Special Edition will bring more choices to the industry, manufacturers, factories, brands, and consumers in the sinking market. Changes in the pattern of the sinking market have been stirred up, and 2020 is also considered to be a crucial year for the reshaping of the sinking market.
Buyers of "purchasing shopping" and sellers of "integrated wholesale and retail"
Commodities are never themselves, but represent a certain lifestyle and value orientation.
Financial writer Sun Xiaoji holds the view in his book "Ferrous Shopping: Chinese Consumer History in the 20th Century". "Mantis Finance" believes that the reverse is also true. With the changes in lifestyle and value orientation, it brings Consumption changes, commodity changes, and even industrial changes are also happening. Buyers of "purchase shopping" and sellers of "integrated wholesale and retail" come from this.
In 2020, the Douban Stingy Men/Women Federation will be seen everywhere on Weibo, Xiaohongshu, Station B, Douyin and other platforms, such as "purchase on Taobao special edition, realizing the freedom of mobile phone cases". The new generation of consumers claim that shopping on Taobao special edition is "purchasing" rather than "shopping". The wave of "purchasing shopping" triggered by this is a microcosm of consumption changes and reflects the consumer philosophy of young consumers pursuing high-quality, cheap and good-quality goods.
For a long time, under the consumer effect and public opinion such as "brand effect", "you get what you pay for", and "only buy the expensive ones, not the right ones", low-priced goods were once classified as superior to low-quality goods. No. Now this prejudice is being broken. This group of budget-minded young people squatted in the Douban Stingy Association to communicate online and save money, which has become the norm. It reflects that contemporary consumers are gradually putting aside the prejudice that low prices are equivalent to low quality, and are beginning to be keen to obtain high-quality, low-cost and cost-effective product experience.
In response to this, "Mantis Finance" once appeared in "1688, which is out of the circle. Can you pull the trigger of C2M?" This is described in detail in the article. This group of "Pulling Stars" who shouted "Taobao special edition I love" and "1688 is really fragrant" will spend 47 yuan for 3 bags, 27 yuan for 5 pairs of underwear, and 30 yuan for one piece of clothing/ pants.......
It can be seen that "price sensitivity" is not an "exclusive label" for users in the sinking market. Looking for high-quality and low-cost products has become a "common hobby" of most people. And low-price competition is no longer limited to the sinking market. Consumers in the "fifth ring" are also calling for low-priced, high-quality products.
According to data collected in a consumer survey report by Wanlian Securities, 73.8% of middle-income groups rank the third in the importance of cost performance when they consume. 48% of female consumers rank price-performance ratio before brand, price, and logistics. Among them, first-line consumers account for 54%. And consumers born in the 1990s pay more attention to cost performance than quality.
(The picture comes from the Internet)
If you pay attention to observation, this phenomenon is happening all around you at any time. My colleague Fan Rose, a new front-line young woman who has an LV bag and wants to change to a BMW, will go to 1688 from time to time, Taobao special edition to experience a "restocking shopping", such as spending a few dollars for a glass and spending dozens of dollars. Money to buy a few hats and so on, and so happy.
The changes in the consumer environment brought about by the consumption boom of "purchasing shopping" have also boosted the wave of "one-size-fits-all". By directly connecting users through the C2M model, the manufacturing plant has become a new species integrating manufacturing, wholesale and retail.
According to the data released by Taobao Special Edition on January 27, since it was opened up with 1688 in September last year, the platform has added more than 70,000 "batch and retail" factory merchants. On average, more than 500 industrial belt factories use Ali C2M every day. Transformation of direct supply from retail factories.
Take Guangzhou Dusheng Trading Company, which has an annual revenue of more than 100 million yuan, as an example. As a company that specializes in slippers, plastic products, and pet supplies, 80% of its sales are exported. After the outbreak of the epidemic, all overseas customers' goods were backlogged in warehouses and faced difficulties in capital chain turnover. Through the Ali C2M channel, the company designed a high-quality and cost-effective slippers that cater to the practical consumption habits of the sinking market. More than 6,000 pairs were sold in the first week of the new era, and it rose to more than 300,000 pairs in June. The C2M business has brought more than 3 million sales, and it has successfully transformed into a new species of "small batches in one".
In fact, the "factory direct sales" model is not new. Whether it is the offline "factory direct sales" physical stores earlier or the subsequent online factory direct sales stores, the factory direct sales model reduces intermediate circulation links and caters to consumption. The demand for saving money and obtaining more benefits for the factory.
However, in recent years, the C2M model, led by the special version of Amoy Factory, has the advantage of not only creating a "short-circuit economy" through factory direct sales, but also predicting market trends in advance and planning for "reverse customization". Wang Hai, vice president of Alibaba and head of the C2M business unit, believes that C2M, the e-commerce platform, can gain insights into consumer demand through digital means, and feed it back to the production side, which can help factories improve quality and efficiency, and reduce factory capital or testing. Difficulty and pressure of the selection and selection.
(The picture comes from the Internet)
"Mantis Finance" believes that the success of Taobao Special Edition lies in observation and amplification. That is, while observing that the needs of users and factories have become vigorous, the enabling effect has been enlarged from an ecological perspective-with the help of the three pillars of Taobao special edition + super factory plan + tens of billions of digital production areas, using its Alibaba Cloud, Cainiao logistics and other infrastructure have built a C2M system connecting C-end users and M-end manufacturers, creating an ecological closed loop from the three links of product manufacturing, circulation to consumption, and boosting the development of the entire industry.
Based on this, the Taobao special edition not only uses the "special economy" to pry open the demand gap in the sinking market, but also uses low-priced and good things to reach potential users in first- and second-tier cities, so that consumers in the Fifth Ring Road have set off a "sweeping wave". Get more choices and become a member of the "restocking shopping" army.
Taobao Special Edition builds a three-in-one C2M ecosystem, sinking the market and enters the C2M era first
From the current point of view, in recent years, as giants such as Ali, JD.com, and Pinduoduo continue to increase their weight in sinking the market, it has become an industry consensus to use high-quality and low-cost C2M products to leverage the sinking market. From the perspective of the matching degree between supply and demand, the sinking market, as the main front of practical and rational consumption, will also take the lead in entering the C2M era.
First of all, on the demand side, an important reason for users in the "price-sensitive" sinking market is that compared with users in first- and second-tier cities, there is a certain gap in economic conditions, which makes them have to plan carefully and pay more attention to cost-effectiveness in consumer decision-making. And practicality, thus becoming more "rational."
However, due to the limitations of commodities, information asymmetry, and the convenience of online shopping, this "rationality" has been buried for a long time. However, the high consumption potential accumulated by C2M products has always existed, but it has not been effectively released. . With the accelerated penetration of the Internet in the sinking market, people’s ability to break information asymmetry and the convenience of online shopping have been improved. Platforms for sinking users, such as Taobao Special Edition, are equivalent to an “open gate and flood release”. To achieve rapid matching and achieve growth.
Secondly, from the perspective of supply, China’s manufacturing industry, as the world’s factory, earns “low” processing fees for big-name OEMs, but surrenders most of its profits, making it “big but not strong” as the main industry. Pain points.
In particular, the global epidemic in 2020 will spread to the international supply chain, bringing unprecedented challenges to foreign trade factories, transforming into domestic sales, and directly connecting users through the C2M model, becoming a breakthrough for foreign trade factories in Guangdong, Fujian, Zhejiang, Jiangsu and other places.
The reason behind this is that China has no shortage of factories that manufacture high-quality goods, but factories lack direct channels to connect with users. Using the Internet's C2M model to create a "short-circuit economy" and shorten intermediate links to increase profits and bargaining power, it happens to be able to meet the long-term demand of factories to maximize profits. Data shows that the Taobao special edition has been officially launched in March 2020, featuring "extremely low prices". 1.2 million merchants have settled in, including more than 500,000 foreign trade merchants. It reflects that industry belt merchants, especially foreign trade factories, are using the Internet as the main channel for transformation and upgrading, and gain new growth through C2M digital solutions.
The accumulation of ecological potential energy on both sides of supply and demand paved the way for the sinking market to enter the C2M era first. However, the biggest difficulty of the C2M model is that it responds quickly to market demand, and has small batches, customized flexible production capabilities, so as to meet the diverse and individual needs of consumers, and this has high requirements for supply chain coordination, which has become a lot of constraints. The key to the development of platform enterprises.
Specific to the C2M ecological network of a single platform, only when the network level is subdivided, the connection is more, and the density is higher, the ecosystem will become stronger and form a virtuous self-circulation, so as to accumulate data and respond quickly. Supply chain coordination of production and sales. Therefore, only when this C2M ecological density is high enough, it means that the market has officially entered the C2M era.
From a split point of view, the network level involved in the C2M model roughly includes three major aspects including insight into personalized consumer demand—feedback to factories for mass customization production—wholesale/retail delivery to consumers. It involves the platform's comprehensive data capabilities, flexible production capabilities, the ability to connect industries with factories, and the sales capabilities of "batch and retail".
Compared with the current mainstream C2M platform, the advantage of the special version of Taobao backed by Ali comes out. According to SPDB International’s point of view: the special version of Taobao backed by Alibaba can utilize its huge user data, cloud computing services, and combine Alibaba’s supply chain and Ant Group’s financial services to effectively improve the factory’s operating efficiency and reduce its operating costs. Its cost advantage attracts more customers.
(Picture from Shenwan Hongyuan Research)
Needless to say, at the level of consumer comprehensive data, as the largest e-commerce platform in China, Alibaba's user data and digital capabilities are undoubted. Its 20-year accumulation on the supply side can support consumers' superior consumption. In terms of the industrial belt connection alone, the Ali 1688 platform covers 172 first-level industrial belts, accounting for about 70% of the national first-level industrial belts. This provides a strong industry support capability for the full access to the 1688 Taobao special edition, as well as "batch and retail". The foundation of digital transformation of “One”.
Therefore, after the Taobao special edition entered the sinking market, the three-in-one C2M ecological closed loop created by it inadvertently raised the threshold of C2M gameplay in the sinking market. In terms of consumer experience and industrial chain efficiency, while promoting industry progress, it also forces other players to accelerate follow-up, prompting the sinking market to accelerate into the C2M era.
*The pictures in this article are from the Internet
Welcome to the gathering place for financial enthusiasts, please add WeChat to communicate with friends: tanglangcaijing01
This content is [Mantis Finance] original,
It only represents personal views. Without authorization, anyone may not use it in any way, including reprinting, extracting, copying, or creating mirror images.
Some pictures are from the Internet, and the copyright ownership has not been verified. They are not for commercial use. If there is any infringement, please contact us.
Mantis Finance (WeChat ID: TanglangFin):
• Pan-financial new media.
• One hundred thousand WeChat + exposed text "Who killed the Victoria's Secret Show"? Creator of "etc.;
•Focus on: new business (including live broadcast, short video and other big entertainment), new marketing, new consumption (including new retail), listed companies, new finance (including financial technology), blockchain and other fields.