Electricity Giant To Fight The "Double Eleven": The Sinking Market Has Become A New Battleground.

"What I said is not in danger. It's not about trading data. It's about whether the user experience is smooth enough." At six p.m. on November 11th, Tmall and Taobao President Jiang Fan sat in front of the media in a conference room of Alibaba Xixi park.

In an interview with the twenty-first Century economic report reporter, he bluntly said he did not value consumption figures, and the great thing was that this year double eleven realized the first one hundred percent of all electricity providers in the electricity market, and the transaction reached a peak of 550 thousand pens / sec.

"This is a holiday for consumers, which is a challenge for us. The whole group has two hundred BU participants, including technology and business teams, and Taobao Tmall you see is only a small part. " Jiang Fan further thought.

On the same day, Tmall double eleven Carnival volume once again refreshed the calendar year record. If we say that the generation of "double eleven" causes consumers to be addicted to addiction to discount sales, nowadays, more and more demand is aroused, and new consumption scenes are everywhere. Whether Suning, many companies or Jingdong are no longer satisfied with the first tier cities, they will reach a broader three or four line market. Shopping experience and after-sales service are also promoting the transformation of the scene by the electricity supplier.

Multi scene application

This year, in the hot sales of e-commerce, there is no doubt that there is a strength to contribute live.

In the early morning of November 11th, the number of live broadcast of "one sister" via the live broadcast of Taobao was 43 million 100 thousand, and the number of live rooms of Li Jia Qi was 36 million 800 thousand at the same time. "Li Jiaqi spent more than 5 hours of live broadcasting, driving nearly 32 million users to watch. In a few hours of live broadcast, everyone in a medium-sized province went up to see it." Previously, Zhong Tianhua, senior vice president of Alibaba, once said that last year's double eleven, Li Jiaqi sold 300 million yuan a person for sale, and conservatively estimated that his personal sales could exceed 1 billion yuan this year.

Double eleven opened only 63 minutes, through direct broadcast of the transaction than last year's double eleven days; until 8:55 in the morning, the live business has broken tens of billions of yuan. While bringing more experience to consumers, live broadcasting has become the biggest draught of brand and business growth. Jiang Fan revealed that more than 50% Tmall double eleven businesses have gained new growth through Taobao live broadcast this year, and have become an important platform for brand businesses to display themselves.

During the double eleven period, the president and executives of nearly 100 brands in the world came into battle in person, bringing goods into Taobao live broadcasting rooms. Wen Hao, an analyst at Tianfeng securities, believes that the content and traffic of the aggregated electricity supplier, and the short video platform facilitate the commercial collision of nearly 40% conversion rate and the billion level traffic. The direct broadcast has both low decision cost and high interactivity, which is conducive to effectively stimulating the consumption potential of the core crowd. "Double eleven period this year, the electronic business platform is expected to fully tap the consumption potential of new and old users through this new channel to achieve incremental consumption."

Along with the widening of online channels, this year's line is also bustling. Compared with the previous double eleven, today's "double eleven" scene is more diverse. In the past, the price advantage of "one dominant company" has been gradually reduced, and the advantages of physical store spot sales and offline fitting experience have become more prominent.

Unlike Ali's development from online to offline, suning.com online has accumulated for many years. At noon on November 11th, Suning data showed that within 12 hours, suning.com online orders grew by 86% over the same period, and the new Super membership exceeded 50% after 90. The average service time at any time was only 22 minutes. The new online Carrefour performance center has reached 150 thousand orders for a half day, and online orders for Suning small stores have increased by 500%. In addition, the traffic volume of Suning Plaza and suning.com Plaza increased by 46% over the same period last year, and sales increased by 56% over the same period last year.

Sinking market force

To sum up, double line integration and scene development will become the major trend of the future electricity supplier. The sinking market is another blue ocean. Alibaba official data revealed that the first two hours of Tmall double eleven, Juhuasuan's "million explosive group" was born with 216 sales of one hundred thousand pieces of explosive products, over 7000 million single products, 576 million single products. In the first hour before the opening, the industrial belt merchants from all over the country harvested more than 50 million orders.

The domestic brand has become an absolute winner. More than 60% of MeiLing, Ronshen, Haier, gazelle, Gu Jia, Sherin and CHEERS brands are from the sinking market. Among them, 100 million, the United States and other brands in the sinking market, the growth rate of more than 100%, and the brand of burya, Sherin and other brands in the sinking market has nearly 100% growth. At the same time, more than half of the most popular mobile phones such as iPhone11, HUAWEI Mate 30 Pro and so on come from the sinking market.

Low price, tail cargo and other "labels" no longer belong to the sinking market. In addition, phased consumption has become the engine of double eleven growth this year. The phased payment method has lowered the consumption threshold, further expanded the consumer group and increased the consumption amount. In Chiang fan's view, this year, for the first time, phased out as a major consumption mode of double eleven, the first installment of the 24 installment free interest rate has promoted the growth this year.

This wave is "all the way to the west", greatly promoting the upgrading of consumption in the central and western regions, and releasing the potential of consumption. According to the official data of Le Xin, this year's double eleven, the first five of the trading volume of the company's staging music mall are Wuhan, Guangzhou, Changsha, Chengdu and Xi'an. The volume of transactions in some central and western cities is also far higher than that of the traditional high consumption cities such as Beijing and Shanghai.

Hong Zhisheng, an associate researcher of the Chinese Academy of Sciences strategy and Consulting Research Institute, said in an interview with the twenty-first Century economic report reporter that the purchasing power of the three or four tier cities has been increasing in recent years, the fundamental reason is that the overall demand is growing, and the relationship between China's developed regions and the three tier cities is also more closely related. "The release of consumption power, the diversification of category scenes, and the stratification of consumers have promoted the rise of sunken market consumption. In particular, the change of consumption groups, young people in small cities are getting closer to the first tier cities, which is completely different from their parents' generation. "

Electricity supplier subsidies war again

Whether demand customization or phased consumption, under these 42 levers, the consumption data of the sinking market are pleasantly surprised, and there is a huge demographic dividend. QuestMobile's previous report showed that as of the end of March 2019, the scale of mobile Internet users in the three and below cities reached 618 million, and the per capita usage time grew rapidly.

As the earliest player in the sunken market, the rise of many short periods has surpassed Jingdong in terms of user volume, GMV and market value. It has become the second largest electricity supplier in the domestic market value and ranks among the top four China Internet Corporation companies. Let the capital see the consumption potential of the sunken market. In this vast market, the electricity giants have a new traffic dispute, which has long been filled with smoke, and the subsidy war is rekindled.

This double eleven, Ali, Jingdong, and many other large platform competition between subsidies is even more white hot. Jingdong and Alibaba still use familiar coupons, red packets, full reduction, deposit deduction, shopping allowance and other preferential activities. Ali is expected to subsidize 50 billion of this activity.

As the biggest competitor of Alibaba, Jingdong also shouted the slogan of "10 billion subsidy, 100 billion discount". Jingdong pushed its social networking business Beijing Xi, and double eleven also arrived at the time of "winding up". According to the company's data, the peak sales volume of Jingxi platform reached 16 million units in the first eleven hours. Its consumption pattern is mainly based on the combination mode and the 9.9 package mode. It provides hundreds of millions of 1 yuan products in this double eleven, and Jingdong finance provides 1 billion yuan cash subsidy to follow up.

This initiative has yielded good results, with more than 7 of Jingxi users coming from the 3-6 line sinking new markets, among which the new users from these sinking markets account for 3/4 of the new users of Beijing Xi, and have made a deeper impact on emerging markets.

And many slogans are chanting slogans such as "no way, no money, no money, no need to wait". This double eleven, a lot of more focus on subsidized Apple products again, once again adjust the new iPhone 11 series phone price, breaking the lowest price record of the whole network. However, as of now, a lot of fans have been captured by the current double eleven through direct profit sharing measures, and they haven't announced their double eleven record.

Price war is undoubtedly an important means to stimulate users. The electricity giants are burning subsidies to seize the market. The battle and the sinking of the market make the future of the electricity supplier complicated and confusing. But it is certain that subsidy is not a long-term policy or a market rule.

"The consumer's potential for consumption has been increasing, and the sales volume of double eleven has proved this." Hong Zhisheng stressed that double eleven can not absolutely represent China's consumption, it is more of the use of the psychology of shopping, but also has been trying to concentrate on the release of a stage of consumer demand.

Big businesses want to rush to the front. Under the promotion of competitive mentality, business behavior is starting to become irrational. In the case of low discounts and transaction losses, some vendors are investing heavily in advertisements such as subway, TV, websites and other media. Under such circumstances, whether or not to make profits is not so important.

In the book "irrational prosperity", Robert Schiller, who won the Nobel prize in economics in 2013, once said that the market is often driven by emotions rather than value judgments. Emotional mutual infection will make the market more and more deviated from value judgments, and more and more prosperous.

Whatever Schiller's attitude towards this phenomenon, an objective reality is: those companies that best use this emotion are the most successful companies in the market because they are closest to others. Whether or not the business has benefited from it, Tmall has become the biggest winner as a platform. And the new consumption pattern that it dominates will also stir up the nerves of businessmen in the long run.