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Online traffic is tight and maternal and infant e-commerce is intensively pioneering offline_E-commerce training

2018-04-19

  Vertical maternal and infant e-commerce, which made its fortune through milk powder and diapers, is now facing the problem of competing on the same stage with comprehensive e-commerce platforms such as Tmall and JD.com. The way to create popular standard products before is no longer advantageous under the encirclement of comprehensive e-commerce. For this reason, vertical maternal and infant e-commerce has begun to seek differentiated ways. Recently, two capital trends have been reported in Miya. While acquiring Youyoutang offline stores, it also invested in the maternal and infant B2B platform Kelp Network. Beibei.com announced that this year it will focus on strengthening the social genes of the platform and vigorously promote social e-commerce Beidian. Faced with the massive attacks of comprehensive e-commerce in the maternal and infant market, how to find a breakthrough in traffic has become a key issue for vertical e-commerce.

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  Online traffic jam

  In the new track of the maternal and infant market, vertical maternal and infant e-commerce is seeking differentiated development by extending the supply chain, expanding offline scenarios, building social platforms, and building self-built brands. Recently, maternal and infant e-commerce Miya led the investment in maternal and infant e-commerce B2B platform Kelp Network, and jointly deepened its layout in supply chain, warehousing and logistics, big data, etc. Zhang Lianglun, founder and CEO of Beibei Group, recently said that in 2018, Beibei will focus on building an e-commerce matrix around community driving forces, accelerate the development of social e-commerce app Beidian, and focus on the operation of mini programs and public accounts. Baby Grid has begun to build its own brand "Grid Selection" and purchase it in accordance with the requirements of "same line, same standard and same quality". Vertical maternal and infant e-commerce is frequently accelerating differentiated layout actions, and the behavior of the above three companies is only a brief epitome of responding to changes in the industry market.

  Behind the differentiated layout of vertical maternal and infant e-commerce, it is not only a demand for expanding business, but also a self-defense measure taken by comprehensive e-commerce to grab food market. It is undeniable that the way to attract customers by relying on hot-selling products such as milk powder and diapers is already difficult to achieve good results in the current market environment. After all, comprehensive e-commerce with scale and traffic advantages is better in this regard.

  Recently, JD Supermarket announced its strategic plan for maternal and infant categories for 2018, saying that it plans to exceed 100 billion yuan in three years. According to the report "Overview of the Trends of the Maternal and Infant Industry" released by Nelson, in 2017, JD.com's share of infant milk powder and infant diapers in the online market of B2C maternal and infant fast-moving consumer goods exceeded 50%. Among them, JD Supermarket accounts for 64.9% of the market share of maternal and infant category B2C, and infant formula accounts for 57.2%. It can be said that the strong entry of comprehensive e-commerce has brought a huge impact on vertical maternal and infant e-commerce.

  Offline pioneering triggers new war

  Faced with the encirclement of comprehensive e-commerce, vertical maternal and infant e-commerce is also seeking a differentiated breakthrough. Recently, news broke that Miya acquired more than 40 stores in Beijing, Shanghai, Guangzhou and some major second-tier cities. Previously, Miya also opened its own offline brand "Miya Paradise" in Beijing, Shanxi, Chongqing and other provinces and cities and opened its franchise rights. While cooperating with the offline maternal and infant chain brand store "Suzudachuan", Baby Gezi is also accelerating the opening of Grid's high-quality cross-border maternal and infant stores, radiating the last mile, and strengthening offline layout has become one of the ways to break through vertical e-commerce traffic.

  But it should also be noted that comprehensive e-commerce's offensive on the offline maternal and infant market has not slowed down. JD.com recently stated that it plans to add 5,000 maternal and child experience stores in the next three years to meet the experience of users in the era of consumption upgrading through offline virtual display, maternal and child service experience, flash delivery services and brand direct delivery. In addition, in November last year, Tmall Smart Maternal and Child Room was put into trial operation in Beijing and introduced Tmall Maternal and Child Product Unmanned Vending Machine. Suning is also accelerating the transformation of its maternal and infant brand Hong Child. The newly established Hong Child Store has combined retail and children's entertainment projects and has been transferred to the third- and fourth-tier markets. It can be seen that when maternal and infant e-commerce carefully reaches the offline market through acquisitions, comprehensive e-commerce has once again shown a trend of constraining.

  The result of this tug-of-war filled with gunpowder is unknown. However, in the view of Li Yongjian, director of the Institute of Finance and Economics Strategy of the Chinese Academy of Social Sciences, with the entry of comprehensive e-commerce, the living space of maternal and infant e-commerce is constantly being squeezed, and the shortcomings in its own development are greater than those invasion of external forces. On the one hand, maternal and infant e-commerce has not built a moat, and the high profits brought by the early price war have not been transformed into sustainable development value, and lacks core advantages; on the other hand, comprehensive e-commerce that has formed a system in logistics, supply chain, quality control, data, etc., such as JD.com's logistics and distribution network, Taobao's user base and data management are all the shortcomings of maternal and infant e-commerce, which have become the capital for comprehensive e-commerce to quickly grab the cake of the maternal and infant market.

  Decrease products and strengthen content output

  Faced with the imminent changes in the maternal and infant industry, how to find ways to break through, stand firm in the territory and gain long-term development has become the thinking point of maternal and infant e-commerce. A relevant person in charge of Beibei.com told the Beijing Business Daily reporter that unlike many companies that mainly focus on standard products, Beibei.com focuses on the platform development model of non-standard products, and then based on this, it plans to cross-border, self-operated, supply chain, etc. At present, non-standard products such as children's clothing and shoes have become the moat of Beibei.com. In 2016, the sales of non-standard products have reached 85%.

  Li Yong insisted that maternal and infant e-commerce needs to strengthen the management of the supply chain and create its own brand based on the characteristics of high gross profit margins of maternal and infant products, but the transformation window is very short. Tang Xingtong, a researcher at Taihe Think Tank, emphasized that maternal and infant e-commerce urgently needs to redefine the direction of enterprises to create value in the future. Even though product quality is the foundation, relying on commodity to create value has reached the limit, and socialization, emotionality and entertainment will be the transformation direction of maternal and infant e-commerce. Maternal and infant e-commerce should not be limited to the stage of converting traffic to obtain value, get rid of the current role of simply playing retail and sales, and seek long-term corporate development by outputting content to consumers, building social platforms, building customer relationships, and providing both humanized and personalized services.

  In Tang Xingtong's view, after comprehensive e-commerce enters the maternal and infant market, maternal and infant e-commerce will find it difficult to form competitive advantages in terms of traffic and price, and will also be at a disadvantage in supply chain construction, logistics distribution and sales. If maternal and infant e-commerce is difficult to change the above situation in the short term, it will inevitably escape the fate of mergers between enterprises and being swallowed by comprehensive e-commerce, and may become a tool for comprehensive e-commerce to obtain traffic and provide products. Li Yongjian bluntly stated that in the next three years, the maternal and infant e-commerce industry will be rapidly integrated, and only 3-5 maternal and infant e-commerce companies will survive.

  It is worth mentioning that under the heavy pressure of comprehensive e-commerce, offline or maternal and infant e-commerce is a breakthrough. Li Yongjian said that offline still has sufficient convertible traffic. Compared with comprehensive e-commerce that operates complex consumer relationships, maternal and infant e-commerce focuses on customers more accurately. It can obtain new traffic through weak offline social methods to divert traffic online and increase conversion rates based on social methods.

  If you have questions about e-commerce operations, you can ask the teacher of Xuanming Network (www.shxuanming.net) online, and we will answer them one by one to protect your e-commerce career!


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