Thoughts on the Home Industry under the “Social E-commerce Model”

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In April of this year, NǑME completed the 180 million yuan A+ round of financing led by Sequoia Capital, and CEO Chen Haogao shouted “The Super Ten Yuan Store plan is still in the ears.

Recently, the ten-yuan self-employed living hall & ldquo; Bai Xiong Xinpin also completed nearly 10 million yuan of angel round financing, led by the chain restaurant brand “Li”, Li Tulin partner of Tiantu Capital It is worth noting that the founder &CEO Zhang Jiaxuan also shouted a slogan: “Do the Chinese version of ‘Brandless& rsquo;.

“ The evolution of the concept of the ten yuan store comes from Japan’s Daiso Baiyuan store. Da Chuang is the veteran of the Japanese 100-yuan store and the leader of this industry. Daiso’s sales have grown rapidly year after year. Since its establishment, it has grown from less than 50 billion yen in 1997 to more than 260 billion yen in 2002. It currently accounts for 70% of the Japanese 100-yuan market and has nearly 3,000 stores. .

This concept has been blown to China and has achieved the climax of the development of similar enterprises such as Mingchuang.

But the 10-year self-operated store model of Bai Xiong Xinpin is different from Daiso, NǑME and Mingchuang, which adopts the social e-commerce model.

Social commerce is a new derivative of e-commerce. It uses social networking sites, WeChat social media, and microblogging network media to facilitate the purchase and sale of goods through social interaction and user-generated content.

At this stage, social e-commerce flats contain two development latitudes: 1) continuous dissemination of fission on the WeChat ecosystem, fission of commodity information, and the creation of transactions by flow and fission, achieving profitability, similar companies have a lot of competition, White bear new products, etc.; 2) relying on content, relying on personal IP, relying on the community, relying on multi-platform operations to complete transactions, similar brands have small red books.

And the development of China’s social e-commerce platform stayed at the first latitude, with fission distribution and market sinking of goods with WeChat with 1 billion highly active users.

At this time, the domestic market, “social e-commerce is in the limelight.”

Why do we say this? We can see one or two of the layout of social e-commerce from major enterprises and e-commerce platforms:

1. NetEase

In 2017, after the micro store owner recruitment plan and “Netease promoters”, Netease once again tried the micro-business and started to test a social e-commerce product called “Friends Purchase”. This is another attempt by NetEase in this field after the “Micro-shopkeeper recruitment plan and “Netease promoters” in 2017.

2, Jingdong

During the 618 period, Jingdong planned a social e-commerce solution called “Jinglili”, which will accumulate supply chain capabilities and retail terminals over the years. The ability to open up to provide infrastructure services for social e-commerce partners. BOE said, “Jinglili plans to start in April this year, and the plan is to launch the game for WeChat eco-electronics players.

3, Taobao

Just in late May of this year, some of Taobao’s active sharing users received a “Taobao Invitation Code” from Taobao, and filled out the invitation code. Can open a new type of store & mdash; & mdash; Amoy shop. According to the official introduction of Tao, Xiaopu relies on the ecological background of Ali, based on the existing Taobao consumer community, by integrating multiple high-quality supply chains, making ordinary consumers easily become treasurers. After becoming a treasurer, you can freely choose the quality goods, and share the goods to get the corresponding proportion of income. The feature is that there is an official endorsement, people do not have to bear the delivery and after-sales, and thus achieve a real “one-click entrepreneurship.

3, KFC

This year, KFC developed the small program “KFC pocket fried chicken shop”, users can freely open the store through this small program. After selling the KFC specials in the store, the shop owner can get the reward.

4, seven wolves

Seven wolves were officially launched at the end of May this year, and Xiaoqi quickly earned a self-operated small program. Consumers can become a distributor of seven wolves by binding mobile phone numbers and earn commissions.

It can be seen that no matter whether it is in e-commerce or in the entity, many companies are eager to explore the hotspot of social e-commerce. But the author found an interesting phenomenon, that is, the home industry has not invested too much energy in this model. At present, there is no home furnishing brand to choose this mode, why?

Home industry & ldquo; And the whole, social e-commerce is “small and beautiful”

The author believes that the specific reasons can start from the characteristics and differences of the two.

We understand that social e-commerce has three core characteristics: first, it has the role of shopping guide; second, it is interaction and sharing between users or between users and enterprises, that is, it has social elements; Third, the most critical, with the mechanism of socialized multi-level rebate, that is, “SNS spread, you can benefit.

These three characteristics determine the development focus of social e-commerce:

First, the social e-commerce platform is sinking and tends to provide the underlying services. Social e-commerce and micro-business are mainly based on the functions provided by the social e-commerce platform.The complete standardized trading service realizes the transaction within the closed loop of the social e-commerce platform and completes the distribution fission of the goods. This determines that although the social e-commerce has strong fission distribution ability, most consumers do not have clear and strong consumer demand. However, in the process of social interaction, the consumer information is generated by the promotion page of the product information. Consumers often buy with them.

Second, the demand for social e-commerce and micro-business channels is strong, and it tends to break through the closed loop of social platforms. As the development grows, social e-commerce and micro-business are obviously not satisfied with operating within the closed loop of the social platform, tending to obtain more traffic. After all, the amount of traffic determines the size of the fission range, so the products sold are mostly fast-moving products that can carry a large range of traffic.

The characteristics of low-frequency home products obviously do not meet the above two characteristics. Low-frequency consumption can not make the flow saturated, and the remaining traffic needs to be filled by the sellers and buyers involved in the closed-loop, plus in the high In the case of the customer unit price, the consumer’s purchase process will be more cautious, the rate of fission will be hindered, and the liquidation and transmission paths will be more roundabout, apparently contradicting the characteristics of social e-commerce.

With the help of the wind, we can “lender the power?”

Even if there are certain contradictions between the characteristics of the home industry and social e-commerce, the model can still Bring us some inspiration.

Market sinking and opening up the price/performance advantage

With the popularity of computers and smartphones, more and more people use social media, and many people spend the same time Increasing. A large number of people use WeChat public accounts, Weibo, social networks, etc. every day. It can be seen that social e-commerce involves a wide range of people and involves a large number of people.

With the advancement of global technology, the manufacturing capacity of the household goods industry has been greatly enhanced, and the relative surplus of production capacity has also lowered the price of household goods and further expanded the market. In recent years, the level of national economic development has been continuously improved, and the per capita disposable income has increased. This condition has objectively stimulated the continuous development of the domestic household market. For the first- and second-tier cities, visiting MUJI and IKEA may have become as common as going to the supermarket, and the famous products rely on high cost performance and distribution ability to open chain stores to businesses across the country. Complex or even urban tourist attractions. Due to the leadership of these international big names and successful companies, some home furnishing companies want to spread from major cities to towns and towns. The general practice is to open offline franchise stores to achieve brand sinking, which is the supply chain integration and back-end production of enterprises. The ability puts high standards and strict requirements. And consumers who want to impress the sinking market, cost-effective has become a key factor in the competition of major brands.

The low operating costs of social e-commerce are also a fact that can reduce the pressure on the operating costs of enterprises. In addition, the third- and fourth-line people are gradually becoming the main consumers of social retail consumer goods including household items, and because of the differences in culture and cognitive habits, this market is difficult for traditional e-commerce to really sink. This has created a broad space for cooperation between home businesses and social e-commerce.

Sales path shortening service, promotion cost

Social e-commerce is popular in the era of mobile Internet, borrowing Internet social tools, opening up a new channel for enterprises to acquire customers and sell products. To open a new channel for consumers to buy, is a media bridge connecting enterprises and consumers. This medium takes advantage of social relationships based on social relationships. On this basis, based on social relationships, it is more convenient to provide after-sales service, and it can better provide post-purchase services and benign interactions. In addition, the long-term use characteristics of household products also make consumers have higher demand for services. The characteristics of social e-commerce can make up for the lag of traditional marketing methods. In addition, word-of-mouth communication and the collection of constructive opinions are easy to develop under the social e-commerce model.

At the beginning of the article, the financing news of Bai Xiong Xinpin and the layout of major enterprises. When social e-commerce is constantly blessed by giants and capital, we are seeing more and more people joining. In the battle of social e-commerce. However, it cannot be denied that the social e-commerce at this time still continues the platform model of the mobile Internet era and the way of thinking about traffic, and the innovation remains to be discussed.

And how long can we decide how long this model can go is how many new development methods we can find in the future, how many new concepts are derived, and how many innovations and new developments. Under the new model, what we need to pay most attention to is what the home business can find in the new model, which will help to develop the future, and then paving the way for future development. It is the attitude that the home industry should stick to. (*This article has indicated the source and source, the copyright belongs to the original author, if there is any infringement, please contact us)

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