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How to play the second half of the e-commerce company with "9.9 yuan free shipping"?

2017-01-11

  #Laogao E-commerce Online Information# Today, consumers are changing, their consumption power is increasing, and price is no longer the primary criterion for purchasing or not. They are more willing to pay for brand premium or spiritual value. The consumption environment has begun to shift from online or offline to online and offline integration.

  Consumption upgrades also affect companies' transformation and upgrading. For example, Taobao discount shopping guide e-commerce, which once competed for traffic and price, is especially focused on the low-end market, and the 9.9 yuan free shipping category. With the significant decline in traffic in the past two years, it has begun to seek a transformation, either advance to the mid-range or even high-end market, or begin to focus on selecting a certain field, or be merged.

How to play the second half of the e-commerce company with "9.9 yuan free shipping"?

  From shopping guide model to discount sale

  When China's e-commerce was just starting, there were gaps in both itself and the entire market environment. Since then, shopping guide websites for low-end markets have emerged. Around 2012, discount shopping guide websites with free shipping of 9.9 yuan were appeared one after another, and it was the most popular from 2013 to 2014. Most of them have aggregated Taobao’s low-priced products, and even priced at lower prices, mainly focusing on the shopping guide model. Among them, consumers are more familiar with:

  Discount 800: It was launched in March 2013. The group shopping navigation website, under the group 800, was formerly called Tao 800. It was launched in January 2012. It was positioned in early stage with high cost-effective shopping guides, special sales, and ultra-low discounts. It is a typical Taobao customer. At present, 800 yuan has gradually transformed into an independent mall, with shopping guide business and mall business each accounting for 50%.

  Free shipping for Juanpi 9.9: Juanpi.com's website, originally named Jiujiuyou, was launched in April 2012. Its initial positioning was an ultra-low-price trial platform, aggregating Taobao products. In December 2014, it was renamed to Coil Pi 9.9 for free shipping.

  Chuchu Street: The former was Happy Taobao, which was launched in September 2012. It is a Taobao product sharing and shopping guide platform. Chuchu Street was originally famous to attract users by free shipping of 9.9 yuan. The content currently provides mainly includes 9.9 yuan, worth buying and brand group. In May 2016, it completed a 1 billion yuan Series C financing led by SoftBank and Xintiandi.

  Rebate Network: Founded in November 2006, it was originally based on a third-party rebate shopping guide model. Its main businesses currently include rebate sectors and free shipping for 9.9 yuan. The rebate business is based on the integration of merchant resources such as Taobao, JD.com, and Vipshop, providing users with rebate services covering online and offline consumption, including online shopping, offline card swiping, financial insurance, travel group buying, etc.

  Mizhe.com, 51 discount, boutique discount...

  In the past, free shipping for 9.9 yuan was indeed a very attractive number for most people, which could quickly attract traffic and users. The interactiveness and recommendation and selection mechanism of the shopping guide website provided consumers with a communication platform and a sense of freshness, meeting some market needs.

  However, the initial discount shopping guides were all vassals of Taobao and survived by Taobao customers' share. Some shopping guide platforms even became dens for orders and sales. Around 2013, Taobao began to tighten its interface to shopping guide platforms and no longer supported the Taobao customer model for shopping rebates on Taobao. After that, the rules became increasingly strict. Shopping guide platforms including Mogujie and Meilishuo are already difficult to survive on Taobao, and discount platforms are no exception. Many platforms have to choose higher-cost self-control channels to transform into discounted special sale e-commerce.

  In addition, with the growth of the national economic level and the changes in the Internet consumption environment, consumer concepts are changing, and more emphasis is placed on product quality and experience. On the other hand, it is difficult for discount platforms to balance prices, quality, service, etc., and some sellers are designed to handle inventory, so the user experience is not guaranteed and improved. Now, with the upgrading of consumption, discount platforms that attracted attention at the early stage of early prices are slowly losing users, and new users are difficult to obtain, and the development space is becoming increasingly narrow. Free shipping for 9.9 yuan seems to have become a phased product of the development of e-commerce.

  The transformation and upgrading of discount shopping guide e-commerce in the new era of consumption

  Today we can see that several companies that once made free shipping for 9.9 yuan have begun to innovate and change.

  Chuchu Street, which has entered the market for free shipping at 9.9 yuan, has begun to no longer focus on this as its main focus as its transformation from a shopping guide platform to an e-commerce platform. Free shipping for 9.9 yuan has become part of the platform's new strategy, attracting early users at a lower cost, and retaining consumers through other later-term worth buying and brand group services. The last two businesses are the focus of Chuchu Street's efforts.

  Juhuasuan has changed from positioning and operational ideas, cutting off the 9.9-9 free shipping sectors, and developing towards mid-to-high-end and branding. On December 2, Alibaba Group CEO Zhang Yong announced the merger of Tmall and Juhuasuan in an open letter to employees. After the merger, the Juhuasuan team was integrated into the Tmall team. Before this, Juhuasuan has made many efforts in brand upgrades, continuously increasing brand owners' entry, strengthening content operations, and even attracting some domestic and foreign light luxury products to participate, focusing on enhancing merchant brand value and maintaining brand popularity.

  The free shipping of Juanpi 9.9 has also made changes based on image upgrading and adapting to transformation needs. The brand image is mainly Juanpi.com, transforming from a simple e-commerce shopping guide website to a comprehensive discount sale platform, and has received two rounds of investment in less than one year. At present, Juanpi.com is positioned as affordable retail, and free shipping of 9.9 yuan is only part of the business, but the limited-time, limited-edition special sale and hot product effects are still the main model of Juanpi.com.

  With consumption upgrades, how to develop discount and affordable e-commerce?

  After several years of changes, some discount e-commerce companies have turned around and left; some have developed from bottom to top; some are still focusing on discounts and affordable. In any case, it is undeniable that although consumption upgrades have arrived and consumers' price sensitivity is declining in this process, there must be demand in this field, and for discount e-commerce, it still has its own value and market.

  Huang Chengsong, founder and CEO of Juanpi.com, believes that consumption upgrades do not mean high consumption. Focusing on cost-effective affordable retail will be an important level of consumption upgrade and usher in huge development opportunities.

  However, this requires users to accurately position and serve consumers who really have this part of their needs. On the other hand, we need to make the cheaper to the extreme. Not only are the cheaper prices, but the experience and service must also be upgraded. Miniso, which specializes in offline products, is a good case. Of course, a certain cost investment may be required in the early stage. In addition, there is another route that corresponds to intermediate consumers, emphasizing selection and quality, and doing refined operations, that is, small and beautiful ways of playing. Such as what is worth buying, Vipshop model.

  In short, affordable consumption is an indispensable part of the entire consumer field. Cheap goods are not equal to bad or bad products. With the release of consumption potential in third- and fourth-tier cities and rural consumer markets, this market may be revitalized.

  Thank you for your attention and support to Laogao Crown Club . Please indicate the source for reprinting by Xuanming Network www.shxuanming.net

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