Deepening The Global Market Coverage, Making Many Bets And Long Line Layout

The originally marginalized sinking market has gradually become the new blue ocean that the electricity supplier industry is rushing into.

This has a concentrated explosion in the "double 11" just now. Even the media used the "first line market disfavor" to describe the preference of the big business platforms to the sinking market.

Ali said publicly that the outbreak of the sinking market is an important driving force for Tmall's "double 11" record this year.

Over the past two years, over 70% of Taobao Tmall's over 200 million new users have come from the sinking market.

During this year's "double 11" period, nearly 40% of Jingdong's new subscribers came from Beijing's hi tech group, and more than 70% of them came from emerging markets in the lower tier cities.

For this year's "double 11", we have not released more data in many aspects, but rather emphasize the dilution of the border and deepen the coverage of the global market.

In many ways, the popularity of mobile Internet and the rapid growth of new electricity providers represented by many spells represent the infinite power generated by the "new consumption" behind the equal rights of urban and rural consumption.

In fact, in the eyes of the outside world, driven by the trend of the sinking and upward trend of the electricity supplier, it is also slightly "low key" to fight a lot.

In November 22nd, Cao Lei, director of the e-commerce research center of the network society, told the times weekly reporter that many NASDAQ products had been launched in July 2018, and many of its models have attracted the attention of the whole industry. The development strategy from the sinking market to the "five rings" is one of the focuses.

In the new conference call, David Liu, the vice president of strategy, stressed that a lot of positioning is always trying to cover all users, social levels and users of different geographical distribution.

In November 25th, a lot of momentum continued to rise, opening price of 35.56 U.S. dollars, up 4.62%. Its share price rose by 7.63% last Friday.

The performance is still bright in the off-season.

In November 19th, Nelson, a third party data company, released a report showing that the offline cities (prefecture level and county-level cities) had 120 million potential people. Of these, 56% had a monthly disposable income of more than 3000 yuan, and 31% of those willing to try new products and 55% of them were willing to upgrade.

Take the fast food products as an example, Justin Shagent, President of Nelson China, said that the scale of China's FMCG market increased by 190 billion yuan from 2015 to 2019, of which 59% of the growth came from the low level cities. The future macroeconomic policy and the continuous urbanization process will also release the consumption potential of low level cities.

The potential of consumption in the sunken market is undoubtedly a great positive factor for many spells, which was revealed in its 2019Q3 earnings report released in November 20th.

As of September 30, 2019, the number of active buyers over 536 million 300 thousand years was up to 150 million 800 thousand, up 53 million 100 thousand from the same period last year, representing an increase of 53 million 100 thousand over the previous quarter.

The average annual consumption of active buyers increased to 1566.7 yuan, an increase of 75% over the same period last year of 894.4 yuan. The first tier city users spend more than 5000 yuan per year on the platform.

In the Q3 quarter, a lot of revenue was achieved by 7 billion 513 million 900 thousand yuan, an increase of 123% over the same period last year. During the 12 months ended September 30, 2019, GMV was 840 billion 200 million yuan, an increase of 144% over the same period last year, 348 billion 800 million yuan.

"Q3 quarter is the low season of the electricity supplier industry." In November 21st, Tang Yongping, an electricity supplier, analyzed the times weekly reporter. From 7 to September, just in the heat of 6. 18, he had to prepare for the stage of "double 11". The platform and businesses maintained their daily operations, and there was no special consumption boom.

Tang Yongping said that in the industry off-season environment, a lot of users, revenue, GMV and other financial data can still maintain a relatively rapid growth and development, and its many years of deep ploughing and sinking market has a strong correlation between the leading edge.

On the other hand, the increase of market, operating expenses and expansion of losses has led to a lot of fluctuations in stock prices.

In November 23rd, a capital analyst told times weekly that short term stock price volatility is also a manifestation of risk release. For value investors, a lot of stock price falls often mean opportunities.

In response to this, many companies said in the earnings report that they have healthy and stable cash flow and cash reserves.

In the Q3 quarter, the net cash flow generated by a lot of business activities was 2 billion 618 million 200 thousand yuan, compared with 1 billion 631 million 400 thousand yuan in the same period last year.

As of September 30, 2019, most of them had cash, cash equivalents and restricted cash of 34 billion 400 million yuan, and the total amount of cash available was RMB 40 billion 300 million yuan.

Adhere to the long-term strategic layout

"Our" billion subsidy "is not a slogan. Every cent we spend is worth it. In the eyes of many co-founder and CEO Huang Zheng, the reaction of the capital market in the short term will not become an interference item that obstruct the pace and pace of long term strategic layout.

Huang said at the earnings call conference that the strategic layout of 10 billion yuan subsidy is more of an investment, in order to grasp more long-term market opportunities.

He analyzed two developments: first, the figures performed well, but in fact it was because the platform was too conservative to seize investment opportunities; two, the poor performance of the figures meant that the platform was investing in larger market opportunities.

Huang Zheng immediately said that the next quarter will continue to be a multi billion dollar subsidy strategy. Many data show that as of now, its tens of millions of dollars to subsidize the entry day live users have exceeded 100 million points, the participation of domestic and foreign brands more than 2800, hot subsidies for goods over 23 thousand.

In many ways, tens of millions of yuan subsidies will help many high quality brands rapidly expand and sink through their popular products.

Through this plan, more than 10000 explosive products, including Apple MacBook and Dyson hair dryer, have gone deep into the sinking market at an unprecedented low price. During the "double 11" period, more than 400 thousand new iPhone phones were sold through more than ten billion yuan subsidy scheme.

The achievement of the strategy of combining more and more agricultural products with ascending markets is recognized by the Ministry of agriculture and the rural sector.

In November 15th, many enterprises, such as China UnionPay and China Telecom, won the recognition of the Ministry of agriculture and rural areas. Tang Ke, director of the market and Information Technology Department of the Ministry of agriculture and rural affairs, said that many business platforms, such as spelling out the electricity market, should give full play to their advantages, identify the consumer market and make full docking with the producing areas.

The data from many aspects also showed that the sales volume of agricultural products reached 65 billion 300 million yuan in 2018, and it is expected that the growth rate will be doubled in 2019. During this year's "double 11" period, sales of agricultural products from poor areas increased by more than 220%. These products were mainly purchased by consumers from one tier city.

On the other hand, the new brand plan also provides impetus for the development of many platforms.

According to the financial report, as of the end of September this year, more than 85 members of the "new brand plan" have been spelled out, and over 800 brands, including well-known brands, have been involved in C2M customized production.

In the Q3 quarter, a lot of new brand products based on daily necessities and smart appliances were accumulated. The cumulative orders exceeded 27 million orders.

In the long run, the goal of all kinds of strategic plans is to weaken the labels of users and markets. Zeng Hui, who is the head of the subsidy program for more than ten billion yuan, has said in an interview with the times weekly reporter that he had never emphasized that consumers came from the first tier cities or the sinking market.

Zong Hui believes that users are individuals who have unique needs. All kinds of differentiated consumption needs should be respected and satisfied on many platforms. This is also the long-term positioning and goal of various strategic initiatives and layout.

Huang also added in the earnings conference that brands and merchants are also the core elements of developing more and more. Whether it is billions of dollars subsidy, agricultural products upgoing or new brand plan, the most important thing to do now is to bring more brands onto the platform so that users can know the value of products and establish trust in the platform.