The shopping festival is not afraid of many, and I am afraid that there is no party.GMV 58.5 billion, just past the 99 cost-effective section, in the first year after the upgrade, handed over a good answer.On September 9th, the sales of Taobao increased by 40% year-on-year, which was 2% higher than the 38% of Tmall 618.The upgrade of the cost-effective section is just a microcosm of Ali’s competition for the sinking market.In the past year or so, in the face of a lot of hard work, Ali’s sinking action has not stopped at the product level.In reverse order of time, in March of this year, Taobao App launched a special sale area; poly cost-effective, daily sales, rush to buy and merge; in September 2018, Taobao comprehensive revision, strengthen the feed recommendation of the feed; August, Taobao launched on the Alipay home page”The section… In this wave of intensive product and team adjustments, the cost-effectiveness is always the protagonist of the story.If you say that in the past few years, in order to be a big Tmall, the cost-effective choice of “sacrifice” is now the time when it comes back to the rivers and lakes.In the 2015 year, the cat was busy with the consumption upgrade. When Taobao focused on building the community, the one-stop battle in the Thousand Groups was still on the old road with cheap discounts, and the strategic position fell.In December 2016, the integration of the cost-effectiveness into Tmall has completely turned into a large-scale marketing platform to help Tmall and the brand.In 2016, when the poly cost was incorporated into Tmall, the fight was just three months online.At that time, Ali and Jingdong, who were fighting in the war, did not notice that this startup company with the main model of the group would rise rapidly through the “9 9 packs” and go straight to the traffic virgin land in the sinking market.The sudden rise of a lot of people made Ali unable to guard, and made Ali realize that the scale of the larger users is still sinking in the market. At this time, the cost-effective poly cost is once again remembered by Ali.”Re-incubating a platform, a brand, the interior is not unthinkable, but it is not easy to start over. The cost-effectiveness is to do limited-time special sales, focus on cost-effective, why don’t we take it back?”Why is it a lot of money to fight against the fight, Alibaba’s general manager of the business unit Jia Luo said.According to Jialuo, the business model of limited time-limited sales is different from the “daily sales” sales method of Tmall, which can focus on explosive sales, more suitable for short-term, high-frequency marketing, and easier to promote the growth of merchants’ transactions., to get new customers for the brand.Tmall’s data also shows that merchants who have done well in the last two years have used the cost-effective burst effect almost without exception.In this context, in March of this year, the other two major sales-oriented businesses that originally belonged to Taobao BG, “Amoy Shopping” and “Daily Sale” were formally merged, and the current large-scale cost-effective business unit was formed.Although it has not been rumored by the outside world, it has become a business group independent of Taobao and Tmall, but it is relatively independent internally.The product line has been built, and the team’s integration is accompanied.Before the integration, the price-performance market business of the Tao Department was scattered among the three business lines of poly cost-effective, daily sales, and rushing to buy. Among them, the poly-costing belongs to Tmall BG, and the daily sales and the rushing purchase belong to Taobao BG, although each has its own focus.However, reporting to different responsible persons and independently assessing KPIs will inevitably overlap in the business and merchandise.Take the daily sales as an example. Previously, it mainly helped the industrial belt factory to upgrade and upgrade through digital technology. This is in line with the fact that the cost-effectiveness itself helps the brand merchants to obtain the customers’ attributes.In order to avoid internal inefficient competition, after the integration, the cost-effective planning of these two parts of the business has been clearly defined, forming a “new brand supply” and “new factory supply” two core businesses.“New Brand Supply” helps brand merchants to develop the sinking market, and Yun Cong, the general manager of the brand business operation of Daju Costing Division, is responsible for the “new supply of the factory”, which is responsible for Tang Song, the head of the original daily sales, who is now in the big gathering.The general manager of the industry belt operation of the cost-effective division, focusing on the industrial belt, both of which return to Jialuo.The result of the integration is that the KPI assessment is re-divided and no longer competes for merchants and commodities.In this cost-effective festival, the industrial belt merchants under the responsibility of Tang and Song won a lot of resources within the cost-effective, and became a highlight of the 99 cost-effective festival.On September 9-10, two days, the number of orders for industrial belts with a total of more than 40 million was more than 40 million, a year-on-year increase of over 438%.”From November 2018, the decision was made to internal organization adjustment in December, and the 1st position of each business was set up. In January 2019, based on the new organizational structure and strategy, the merger was announced in March of the same year, and the details of the team were carried out.”Adjustment”, for the integration of the team, Jialuo revealed that “the efficiency is very high, and the whole process took less than half a year.” It is reported that in order to elaborate on why Ali has to make this change, why should he face the sinking users andIn the new business war, Xiaoyao even personally met with the team.At the same time, Jialuo and Taobao & Tmall President Jiang Fan also arranged a special meeting to interact with employees and answer employee questions to dispel their concerns.The festival is not the purpose of a series of business and team integration, the poly cost-effective is once again pushed to the front line, pointing to a lot of how, how can quickly occupy the user’s mind?Ali chooses the way he is best at – making festivals.”Would you like to upgrade the 99 major promotion?” In fact, it has already begun to brew after the establishment of the Daju cost-effective business unit.In July, the decision to upgrade the cost-effective section was officially finalized.The inside hopes that this will help the brand to sink and form a favorable attack on the fight.On August 19, at the launching ceremony of the 99-questioning festival, Jialuo announced that this year’s 99-time promotion will be officially upgraded to the “99 cost-effective festival”.Inside it was positioned as Ali’s third largest shopping festival.In the face of this exam, Jialuo put forward three assessment indicators: the scale of the transaction, the number of users reached, and the number of linked brands.Correspondingly, the cost-effective section handed over the following transcripts: two days for the cost-effective festival, GMV 585 billion, equivalent to more than 1/4 of the double 11 last year; orders from the sinking market (third-tier cities and below) reached 60%;At the number of merchants, there are about 60,000 brand-name merchants participating in the cost-effective section, and the number of brand-name merchants participating in the double 11 last year was 180,000.Although more targeted at the sinking market, almost all of the head brands that participated in the double 11 and 618 have appeared on the list of merchants in the cost-effective section.In the early stage of communication with the brand, Jialuo found that many big names actually have a strong interest in the sinking market.Take the cotton era as an example. This enterprise with female consumers as the core audience has a consumption ratio of 59% in the first- and second-tier markets, and the breakthrough space in the sinking market is still very large.For users in the sinking market, they are not aware of the brand, but just want to have a more cost-effective product in the case of brand awareness.The solution given to this cost-effectiveness is – custom models.In this cost-effective section, the cotton era specifically launched a “customized baby cotton towel” for the sinking market.In the process, the length and toughness of the cotton fiber are kept to a maximum extent, and in the case of the same amount, the price is reduced by 30% compared with the classic one.In order to prepare for this cost-effective festival, the cotton era has reached a customized cooperation with the poly-costing in August, and launched the above products for the cost-effective section.Poly cost-effectively revealed that the goods of this 99-cost-saving section are already second only to the level of double 11 in terms of discounting strength.Although it will not be explicitly required to “need the lowest price of the whole network, especially lower than the price of the fight”, but the brand will be the default sales of the same item when participating in the event, the poly cost-effective platform is much lower than the fight.Take the cotton baby “soft cotton towel” mentioned above as an example. The price of the non-wet towel packet of 6 packs on the cost-effective section is 66.9, and the price of the pack is 78.9.The left is the price of a multi-platform platform, and the right is the price during the cost-saving period. In order to stimulate the consumption demand of the sinking market, the cost-effective plan also deliberately launched the “88 red envelope saving card”.With the “88VIP”, another major membership system under the Ali E-commerce ecosystem, users who need more than 1000 mischievous values can purchase at a price of 88 yuan. The entry threshold for 88 red-bag money-saving cards is lower, and consumers have a minimum monthly fee of 6.8 yuan.Prices can be opened and shopping offers are available all year round.”88VIP is mainly to open up the Ali economy, so that consumers can have an affordable experience across the scene; 88 money card is focused on the Amoy platform, the core is to provide the most cost-effective minimum threshold for the user.”Said.At present, 88vip can only cover the products of Tmall Mall, and the cost-effective card can cover all the products.But the two do not conflict and can be used in combination.However, the festival is only temporary. At present, the most important thing is to upgrade the supply side. How can we provide high-quality goods through cooperation between brands and industry belts.This idea coincides with the “new brand plan”.After being smothered by Ali and JD on the “two choices”, the company launched a “new brand plan” in December last year, and plans to support 1,000 factories to complete the brand upgrade.After the sinking market was pooled and Jingdong was eyeing, the “upstream” plan that had been put together was also accelerated.Previously, some media broke the news that many of them were considering upgrading the “time-limited spike” channel to the “second fight” business group.It is reported that the business group will enter the first and second tier cities to cope with the challenges of convergence.During the 618 period this year, the person in charge of “limited time spike” has introduced that the “limited time spike” has become the traffic engine of the platform, and the overall data is straightforward.During the 618 period, the “limited time spike” order increased by 320% year-on-year, which exceeded the overall growth rate of the GMV in the same period, and became the most important reserved repurchase traffic pool.An interesting news is that in the days of the cost-effective festival, many investors have been nervously staring at the high-selling stock prices, which are afraid of being involved.Apparently, Ali’s determination to sink the market has already made the company and its shareholders nervous.On October 10th, the fight will be ushered in its own anniversary, and the competition on the sinking market will continue..
Focus analysis | In order to block the back road of more and more, the “cost-making” bright bayonet