Electricity Supplier Show "618": Low Subsidies Can Not Afford Globalization, More And More Obvious

In the year, the days of chopping hands are getting more and more. In the past, "double 11" took the lead. Now the "618" fever is also rising as the temperature in June. Originally launched by Tmall, the "double 11" has developed from Tmall's one-man show to a big business spree of the whole network. With the annual volume of turnover increasing, the number of businessmen and consumers involved and the expanding scope of the influence, the "double 11" has even become a cultural symbol.

This year, Jingdong launched the "618" promotion, which has entered the seventh year. It is different from Tmall's patent application for the word "double 11". In this year's "618 year" promotion, the Jingdong announced that the 618 activities this year have removed two words of Jingdong, hoping to make "618" an open brand that the whole society can use. Jingdong's intention is obvious. If we can make "618" into second symbols with the same influence as "double 11", why not?

"618" curtain down electricity providers have shown their spancripts.

From this year's participation in the "618" big promotion of the number of electricity providers, the "618" sphere of influence is indeed expanding. According to incomplete statistics from China business daily, in addition to Jingdong's "host", this year's "618" period, Tmall, suning.com, Gome Plus, vip.com, Amazon, NetEase koala shopping, NetEase strict selection, foreign terminals, Xiaohong book, honey bud, Beibei network and other mainstream e-commerce platforms have launched corresponding promotional activities. Like "double 11", after the big promotion of the curtain, the time for electricity suppliers to show their spancripts is coming. From June 1st onwards, as of June 18th, 24 points, Jingdong 618 national Mid Year Shopping Festival cumulative amount (industry caliber) reached 119 billion 900 million yuan. On the 18 day, from 0 o'clock, peak orders were constantly refreshed, and sales in the first hour exceeded 250% in the same period last year. Meanwhile, during the 618 period of this year, the proportion of Jingdong mobile terminal users reached 88%, and the PC end users accounted for 12%.

According to the data released by Tmall, only 10 minutes after zero in June 18th, the total turnover of Tmall 618 clothing exceeded 1 billion yuan, and the opening time was only 7 minutes. Tmall's international spanactions broke 100 million, and the industry of the fast opening industry increased by 378% over the first half of the year, and Tmall's supermarket increased 13 times compared with the same period last year. According to Gome Plus official data, as of 12:00 a.m. on June 18th, Gome Plus trading volume (GMV) grew by 365% over the same period, while mobile terminal orders accounted for more than 78%, and rebate merchandise had been shared 360 thousand times. According to the data released by NetEase koala sea, as at 6 p.m. on June 18th, sales of NetEase koala shopping platform compared with the same period last year 618, has increased by more than 400% over the same period last year.

Due to the different statistics of each electricity supplier, their operation modes (platform, self run or platform + self operation) are also different. The report cards of the electricity suppliers can not be quantified and compared, but the heat of "618" is undoubtedly beyond doubt. This also reflects that under the background of the overall slowdown of the whole industry, the electronic business platform still spares no effort to train the incremental market. As the protagonist of "618", Liu Qiangdong, chairman and CEO of Jingdong group's board of directors, said in an interview with CCTV finance and economics that the proportion of electricity providers in the consumer goods market is bigger and bigger. In the next ten years or so, the proportion of electricity providers in the consumer goods market may reach 40%. The proportion of electricity providers in the entire sales market will bring about great changes to the whole country's economic structure.

　　 Low price subsidy And "two elections", businesses are hurt.

This year, "618" is bustling, electricity providers want to take advantage of fame and fortune, but some people are happy to be worried. This year, the first to stir up the "618" fever is the news that Tmall and Jingdong are forcing merchants to choose two. No matter it is "double 11" or "618", the platform of electronic commerce will play the banner of giving profits to consumers. At the same time, the hot SKU of businesses can often oversell, and there is also a chance to sell inventory for backlog commodities. However, this seems to be a win-win situation for consumers and businesses, but this is not the case. In November of each year, Alibaba giants and Jingdong representatives are trying to compete for the "double 11" period. They often launch a seesaw battle around low prices and counterfeiting. With the expansion of the "618" influence, the contention also broke out during this year's "618" period.

Every big promotion, the most attractive to consumers, is the "super low price" displayed by the electricity suppliers. The profit sharing part may be subsidized by the platform, subsidized by the merchants themselves, or jointly undertaken by the two parties. Electric providers are keen on frequent festivals, but businesses do not want to lose money. In June 18th, as the voice of super WeChat in the official WeChat public account, music as super voice TV was said to be subsidized by the two big third party e-commerce platforms, such as coupons and full cash return, and most of the cost of these subsidies was forced to pay for super TV, seriously disrupting the price system of super TV, and far beyond its affordability.

Business trouble is not only forced to "bleeding" to do low price promotion, in Tmall, Jingdong giant sawing battle, many businesses are in a dilemma. According to media reports, with the "618" promotion coming, a large number of clothing businesses have been invited to participate in the promotion of Jingdong's "618" main venue, and are frequently under the pressure of "two election one". Tmall's second grade requires brands to "lower the venue, announce the announcement and send micro-blog". Businesses have to delete promotional activities, send micro-blog accusation against Jingdong, businesses to take stock of themselves, raise commodity prices, otherwise Tmall will receive the "punishment" under the promotion venue or search shielding. In order to prevent clothing merchants from withdrawing from the promotional venues on a large scale, the Jingdong has locked the backstage lock of inventory and shop decoration for merchants who have promised to attend the venue, and the brand can not directly withdraw from the venue.

some Clothing brand Businessmen told the media that before "double 11" and "618" would happen "two elections one", but I didn't think this was particularly serious. "We chose to participate in the home activities of Jingdong, and the traffic of Tmall was basically abolished. The performance goal that was originally set out this month has been mixed up by two elections so that it can accomplish 80%. " In this regard, Cao Lei, director and researcher of the China Electronic Commerce Research Center, said that it is similar to letting businesses stand in teams and carry out "two election one" and so on. This is a common occurrence in the retail industry. It may be difficult to really say who is right or wrong, but the burden and confusion created to businesses and consumers are inevitable. Cooperation between businesses and platforms is a prerequisite for opening up sales, and we hope that both sides can create a good sales environment.

　　 " New retail Under the background of the first "618"

Although "two election one" is the old tradition of promoting the festival of electronic commerce, but as the first "618" since the birth of the concept of "new retail", the big promotion of the electricity supplier during the year shows different new features and new trends. There are different opinions on what exactly is "new retail". In June 9th, Ma Yun, who first proposed the concept of "new retail", gave his answer. On the same day, Ma Yun said at the 2017 Alibaba investor day conference that the core of new retail is to sell goods to consumers and serve consumers. All online and offline practitioners should make efforts in the same direction, that is, to make consumers happy. The electricity supplier has only accounted for 15% of the total retail sales of consumer goods in China. If the electricity supplier can cooperate with 85% of the traditional retailers under the line, it will be a happy result. The most important thing is that consumers can enjoy better quality of experience and service.

Cao Lei pointed out that this year's "618" electricity supplier mid year big promotion has gradually demonstrated the trend from simple sales to consumers, to the internal demand for service consumers. For example, Tmall upgraded its brand slogan from "Heaven Cat enough" to "ideal life". It will strive to meet the vision of consumers' internal needs and join the brand slogan. As an important symbol of Gome's new retail landing acceleration, the first professional VR cinema in the world settled in GOME stores, and the completion of VR cinema has become a breakthrough for Gome's new retail. Electricity supplier promotion activities and physical retail linkage in the past two years in the "double 11" period has become more and more common, and this year's "618" is no longer just online carnival.

　　 JD.COM Shouting "offline 618" slogan, said more than 30000 small and medium-sized stores overnight "red" to participate in its online and offline joint shopping festival. In Hangzhou Kerry Center and Yintai City West, Tmall carries Blueair, Dyson, CPB, Lancome, Shiseido and other 28 brands to create "Tmall new retail experience hall", allowing consumers to experience black technology such as "future makeup mirror" and "virtual makeup room". Suning.com also linked up 4000 stores under the line to jointly launch the "618" big promotion this year. Even Wanda, who has been in trouble in the electricity business, did not want to let go of this marketing opportunity. Its flying company flew to the 30000+ entity store of the business alliance to hold a large-scale Carnival campaign during the 618 period, with a view to attracting more users, traffic and consumption to the real business.

This year's "618" not only realizes the vertical linkage between online and online, but also extends from domestic to abroad in the region. In June 12th, Tmall supermarket officially launched the "Tmall to sea" project, and gradually extended the Tmall model to the retail network established by Ali in Southeast Asia. Just a day ago, the Jingdong announced plans to invest in Thailand in order to expand the Jingdong's overseas business outside Indonesia. In addition, cross-border electricity providers, including vip.com, NetEase koala and ocean terminal, are also making efforts during the "618" period: vip.com upgraded its brand and strategy to "global selection of genuine products", and NetEase koala launched the "618 sea scouring ceremony", while the Ocean Terminal opened the "foreign goods movement". The participation of many cross-border electricity providers has made this year's "618" medium and large platform and brand showing a more globalized feature.

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