Amazon Wants To Play The Shopping Festival, Can Help The Electricity Supplier Usher In The Second Spring?

domestic

We have just passed 618.

China says: I want to play the shopping festival.

According to the world clothing and shoe net, in June 29, 2017, Amazon China announced that it will first join Prime member's day for 46 hours, starting from 17 in July 10th and starting with Amazon Japan, and ending 15 in July 12th.

Prime member day is Amazon's version of "double 11" and "618".

Last year's Prime member day was the highest single day sales in Amazon's more than 20 year history, more than the black Friday and Monday.

It has been regarded as the hidden equipment of Amazon.

According to Consumer Intelligence Research Partners, by April this year, Amazon alone had more than 80 million Prime members in the United States, doubling in the past two years, equivalent to 3 out of 10 Americans buying Prime services.

Once the consumer becomes a Prime member, he or she begins to spend more money to enjoy the Amazon's audio and video programs, and unlimited two days courier + free mail makes them chop and cut.

According to the Wall Street firm Needham, Amazon now owns 1/3 of online retail sales in the US.

In a 100 yuan online shopping cost, 34 yuan flowed into Amazon's wallet.

The company's research report said that Amazon's market share could increase to 50% by 2021, thanks to the popularity of member services Prime and its electricity market.

Prime's success in the US has made Amazon want to use it to save the Chinese market.

Indeed, there are some results: Amazon China data shows that after the Prime membership service landed in China, the number of monthly active customers doubled overseas, and the monthly average paction volume of these members purchased outside Amazon sea was nearly 3 times that of non members. In the first quarter of 2017, Amazon's overseas sales of stores were 11 times that of the same period two years ago.

But it still lags behind its competitors.

IResearch China latest data show that last year, the size of China's electricity market reached $378 billion, but Amazon's market share was even less than 1%.

Compared with the top two Tmall and Jingdong, they took 56.6% and 24.7% of the shares respectively.

After the introduction of secret weapons, Amazon still can not penetrate the Chinese market to understand: China's Prime membership is just a lightweight version, failed to build a high moat, the Chinese people have not been able to become a member of "Amazon family".

American Prime members can watch Amazon free video, get more free books and comics, borrow e-books, unlimited photo storage, enjoy exclusive product discounts, etc. These value-added services are basically not introduced into China.

Take Amazon Prime video as an example, it opened to 200 regions and countries in the world in December last year, but China is not included.

The Prime members in China focus on the issue of distribution time and freight costs of cross border shopping for consumers: after being a member, orders for overseas orders are 200 yuan, domestic orders are zero, and cross border orders are free for free all year round.

However, the domestic electricity providers have provided different ways of distribution: Tmall's overseas purchase has both bonded warehouses and overseas direct mail, while NetEase koala's own proprietary products are all from bonded warehouses.

Amazon's overseas direct mail has more overseas links, so the arrival is slow.

Chinese consumers are becoming more sensitive to time when they are spoiled by the "211 times" of the domestic electricity supplier. The one or two day working day is like a loss of 1 hundred million. Amazon has no advantage over the Prime membership.

Consumers have so many cross-border e-commerce platforms, there are more products to choose from, and there is no need to buy member binding on Amazon because the same goods are not necessarily cheaper than other platforms after they are removed from freight.

In addition, the electricity supplier members are not a new concept for Chinese consumers.

Alibaba, Jingdong and others have recognized the importance of ensuring the retention rate of users, before Amazon launched its membership service in China.

For electricity providers, paid members select those who have high purchasing power or high purchasing potential to facilitate the subsequent marketing, and provide value-added services to make users more active and loyal.

Similar to Prime, there are Tmall Super Fans card, Jingdong Plus member and Ali APASS member.

After trying to figure out the mentality of the Chinese people, these local businesses have launched a service with Chinese characteristics: one to one customer service manager, 24 hours without interruption.

Consumers who enjoy privileged services spend more money.

According to the Ali Research Institute survey conducted in 2016, over 60% of the members earn more than RMB fifty thousand yuan per month, with an average annual consumption of about 300 thousand yuan, and a good credit record.

Yang Yaqiong, a senior analyst at Yi Guan electric business, said that membership system would allow users to feel dissimilated and produce stickiness. Although a certain membership fee was charged, more and more users would be willing to accept reasonable prices.

The trend of "consumer demotion" in China's retail industry also affects the enthusiasm of users to buy and buy overseas.

"Price" is not a factor for more and more consumers to consider. But they do not want to spend money, but they do not think it is necessary to spend so much money. Fewer and fewer consumers are willing to pay for the premium of "consumption upgrading" in the past.

In other words, consumption is able to use hundreds of dollars to buy Samsonite factory's pull rod box. Why do we need to buy overseas? Under such a background, Taobao's heart election, honey bud's rabbit tooth mother and so on have chosen a rigorous choice mode of electricity supplier.

According to e-marketer, an American research firm, China will surpass the United States as the world's largest retail market, and Amazon will not miss it.

From 2016 Amazon China launched the first black Friday to Prime member day, and never advertised its online advertising and offline activities, indicating that the company thought it was the harvest season when Chinese consumers became mature and the Chinese electricity market became rational.

But local electric providers have been accompanied by Chinese consumers. Amazon, which does not like to voice, seems to have "absent" the growth of Chinese users.

Amazon and Google need to come up with more convincing moves in the Chinese market, where YAHOO and prime are all raging. The members may be a good start.

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