I am still in the first half.


Editor’s Note: This article is from the WeChat public number “letter list” (ID: wujicaijing), author Tan Yuhan, 36 氪 authorized to release.The Internet does not have a second half, but sinks, sinks, sinks!In April of this year, the founder of the snowball, Fang Sanwen, launched a reward question and answer on the snowball. “If you don’t put a lot of money, don’t market, what is the number of users, GMV, customer order, and customer price?”You can also ask: When the marketing expenses growth slows down, what level of growth will there be?The fight for the second quarter of 2019 gave an answer.In the second quarter, a lot of sales and marketing expenses were 6.103 billion yuan. From an absolute figure, this is still a huge expenditure. In the second quarter, the company has also launched a multi-billion subsidy activity. The platform is still passing large-scale marketing expenditures for the future.Growth in the market, but the 105% year-on-year growth rate has fallen sharply compared to the previous three quarters of 302%, 699% and 655%.The number of GMV and monthly active users has not been affected by the slowdown in marketing expenses. The slowdown in year-on-year growth is lower than sales and marketing expenses, maintaining rapid growth.In the 12 months ended June 30, the total number of GMVs was 709.1 billion yuan, an increase of 171% year-on-year; the average number of monthly active users was 366 million, an increase of 88% year-on-year and an increase of 76.3 million.This shows that the efficiency of a lot of marketing expenses has been improved this season.This quarter’s earnings also contributed two figures that are higher than market expectations.The total revenue increased by 169% and 7.29 billion yuan, which exceeded the market consensus of 6.1 billion yuan. Under non-GAAP, the net loss was 411.3 million yuan, which was 70% lower than the 1.791 billion yuan in the first quarter.The market’s general estimate of a loss of 1.87 billion yuan was a net loss of 673.4 million yuan in the same period last year.In the past two quarters, the company has been suffering from high market expenses for marketing, rising customer costs and increasing losses. In this quarter, why has the loss been greatly narrowed?Under the non-GAAP, the difference between the net loss of 411.3 million yuan actually generated in the second quarter and the net loss of the market consensus of 1.87 billion yuan is mainly at the total revenue, compared with the actual total revenue.More than 1.19 billion yuan.The main contribution to total revenue was online marketing technology service revenue, reaching 6.461 billion yuan, an increase of 173% over the same period last year of 2.371 billion yuan.The explanation given by the multitude is that the platform merchant system is improving, reducing the fixed expenditure cost of the merchants, and the advertising products and marketing tools have improved the return on investment of the merchants.At the conference call after the release of the first-quarter earnings report, Jiuding, a strategic vice president of the company, explained the data on the conversion rate of revenue. “The company’s current focus is not on revenue conversion rate, but on how to enrich product categories and make users well.Service.” Jiuding said that these will help to improve user interaction and user interaction with the platform. These interactions will increase the visibility of the platform brand, and the sales and investment returns of the merchants will increase. They are naturally more willing.More investment in the platform, conversion rate will continue to increase.“In terms of revenue generation, the platform is still in its infancy. When balancing revenue generation and platform sales growth, we still put sales growth at a higher priority.” But the growth rate of revenue conversion rate is clearly visible in the second quarter.Financial data also proves this.On the conference call after the earnings report, Credit Suisse analysts mentioned that in order to attract quality merchants, the company once offered a discount, but in the second quarter, the revenue conversion rate resumed growth.Jiuding said that the company will insist on subsidies for high-quality businesses. This policy has been implemented since the first quarter of this year. The company is also striving to maintain a balance between subsidies and revenue growth. In the second quarter, subsidies were reduced, so the conversion rate of revenues fluctuated..”The current fluctuations in revenue conversion rate are negligible. In the longer period of time, the conversion rate will be relatively stable.”From the 12-month dimension, the conversion rate of the company’s revenue was 2.94% in the 12 months ended June 30, compared with 2.92% in the previous quarter and 2.17% in the same period last year.The number has gradually increased in this year and has remained in a stable range. As GMV maintains rapid growth, revenue will naturally increase.Second, the two influencing factors of dismantling GMV are user scale and average consumption.User size is the more prominent figure in this quarter’s earnings report.As of the end of June, the number of active buyers of the multi-platform platform reached 483.2 million, and the number of active buyers in the single quarter increased by 39.9 million. In the previous three quarters, the number of new buyers in the single quarter has declined successively, mainly due to the e-commerce season attribute.influences.Also rebounding is the number of monthly active users.In the second quarter, the figure was 366 million, an increase of 88% compared with 195 million in the same period of last year. This growth rate is higher than the growth rate of the previous quarter. In absolute terms, the number of monthly active users increased by 76.3 million in a single quarter…

In a certain time dimension, e-commerce giants are often supported by a major growth point, such as customer unit price or number of users. However, while the number of users is increasing rapidly, the annual expenditure per active buyer has also increased significantly.In the 12 months at the end of the quarter, this figure was 1467.5 yuan, a year-on-year increase of 92%.A lot of these user-level growth is attributed to the 618 strategy.Since June 1st, the joint multi-brand merchants have launched a 10 billion subsidy campaign to subsidize 10,000 products, including Apple series electronic products, Dyson home appliances, Bose, Sony headphones and so on.During the 618 period, more than 1.1 billion physical orders were sold, and sales increased by over 300% year-on-year.Among them, nearly 70% of orders come from cities of the third line and below.In the “spelling mode”, Chery Automobile, Midea Air Conditioner, Electric Shaver, Electric Toothbrush and Genuine Guoxing Apple Series are popular among third- and fourth-line consumers.From the supply side point of view, the growth of the platform GMV is caused by the products provided by the platform to meet the needs of users.At the end of June, many vice presidents of the company have mentioned that the starting point of the traditional e-commerce and retailers is to help the merchants to sell goods. The starting point of the fight is to help users find the most suitable products.If there is no such commodity in the market, then there is a lot of responsibility to help them “create”.In December last year, the company launched a new brand plan, hoping to remove unnecessary circulation channels and redundant costs in the retail chain, so that industrial products can reach consumers directly from the production line.Simply put, the offline retailer supply chain is: production – logistics – distribution – terminal – consumer; traditional e-commerce supply chain: production – brand side – generation of operations – logistics – consumers;A lot of supply chain is: production – logistics – consumers.Under such a streamlined chain, member companies and pilot brands have to make concessions in the early stages.Even after the new branding plan has been internally established, the team has been thinking for a long time to decide whether to push this strategic project.“This is contrary to the traditional brand development model.” Jing Ran said that the traditional brand development model is to pursue high value-added, to promote large-scale expansion and product development investment with high profits, while the new brand plan is to remove channels, marketing, etc.All added value.Until the one-generation foundry brand became the new first-line brand, the new brand planning team was considered to have reassured.Home Guardian is a member of the new brand plan. Its parent company designs and manufactures products for the world-renowned sweeping robot brands, including Honeywell, Whirlpool, Philips, etc., with an annual production capacity of more than 1 million units. Most of these products are priced at 1,000 yuan.Above, the sweeping robot under the new brand jointly created by the new brand plan is priced at 278 yuan.The data provided by many parties is that from the end of 2018 to June this year, the home guards sold more than 300,000 sweeping robots, and most of the orders came from the sinking market.”When the price of the sweeping robot is more than one thousand yuan, its target users may only have 10 million people. If the price is lowered to about 300 yuan, the target user may surge to 100 million people, which is a tenfold increase.”Good analysis.In essence, the rapid growth of the multi-GMV is driven by the increase in retail efficiency.The net loss of the three-pronged merger narrowed in the second quarter, in addition to the speed-up growth achieved by the revenue-side, but also the effective control of the cost side.In the previous four quarters, sales and marketing expenses accounted for more than 100% of the total revenue. The fight was almost all of the revenues to the market, in order to purchase the number of users and the future high growth of revenue, while in the second quarterThe proportion of marketing expenditure was 83.7%.Jiuding, vice president of strategy and strategy, said that the company did not set a marketing expenditure quota and a proportion of revenue.From the perspective of the growth rate of GMV and users, the efficiency of marketing expenses has indeed increased in this quarter.A simple and rude way to roughly calculate the cost of getting a lot of sales (= sales and marketing expenses / new buyers in a single season), in the second quarter and third quarter of 2018, respectively, 61 yuan and 77 yuan, but steep in the fourth quarterIt rose to 183 yuan and extended the high customer cost to 197 yuan in the first quarter of this year.In the second quarter, the cost of passengers declined, falling back to 153 yuan.In fact, even the passenger cost of 197 yuan this year is significantly lower than other e-commerce giants..
In the conference call after the release of the financial report in the first quarter, Huang Wei mentioned the form of selling a lot of sales and marketing expenses. Brand advertising is to help raise awareness; online pay-per-effect advertising is to increase user traffic and increase user usage;Vouchers and discount promotions can increase users’ repurchase rates and repurchase habits, motivating users to try out new features of the platform.For the latter two, Huang Wei mentioned that the company has real-time performance monitoring and evaluation, including several factors that can calculate the rate of return, such as shopping frequency, shopping categories, interaction with other users, and the number of new users., help the number of inactive users, and more.There are many different monitoring cycles for these indicators. Some are one day, some are one week, and some are one quarter. According to the difference in return rate, the marketing expenditure of these channels is continuously adjusted.The efficiency gains of sales and marketing expenses may also stem from this, constantly adjusting the marketing cost distribution channels according to the rate of return, and increasing the proportion of performance advertising and subsidies.”In the second half of 2019, we will continue to expand the benefits and subsidies.” Jiuding said.Fourth, these marketing expenses are not just sinking market users.In the first quarter of 2019, 44.2% of the newly added users were from second-tier cities and above.The latest data given by Huang Wei is that in January of this year, the GMV of users in the first- and second-tier cities of the multi-platform platform was 37%. In June, the proportion has risen to 48%.However, he also said that the fight has not changed the user development strategy. The growth of first- and second-tier cities is because the platform has always focused on user needs and put the interests of users first.“This shows that the company’s investment in brand recognition has paid off, and the number of users in low-tier cities is also increasing. It is a service for all groups.” Jiuding, vice president of strategy and strategy.This is another transformation from the supply side.On July 31 last year, the company announced two announcements, respectively, to issue targeted investment invitations for consumer goods and furniture and building materials such as apparel, food, cosmetics, etc., and invited brand owners to settle in. In August, many brands went online, and Netease carefully selectedHundreds of brands such as Armani and Bose have settled in.In the tens of billions of subsidies launched during the 618 period this year, large subsidies have flowed to 3C digital products such as Apple mobile phones with higher unit prices.The uplifting strategy of agricultural products that is good at fighting is also playing a role.During the 618 period, nearly 70% of agricultural product orders came from first- and second-tier cities.In June of this year, after the news that the poly-sales will become an independent business group, more and more people are also considering to consider the “limited time spike” channel independence, set up the second fight business group, and enter the first- and second-tier cities.Whether this is true or just a public relations war, the pace of moving towards a first- and second-tier cities has accelerated significantly.When the e-commerce giants rushed to the sinking market where many of them started, the fight was also going up, squeezing into the first- and second-tier markets that had long been considered to have been divided.