Another adjustment of Tmall’s “from transaction to consumption”.
Source|AI Blue Media Exchange
ID: lanmeih001
Author|Yang Lei
Edit | Han Xiaohuang
“I found that Tmall really listened to persuasion. In the past, everyone said they didn’t want to grab things at zero o’clock, so they changed it to start at 8 o’clock in the evening; later, everyone said they didn’t want to make up the order, so it became a direct discount.”
At the first e-commerce New Year’s Day in 2023, Taobao and Tmall canceled the cross-store full discount for the first time, and changed it to the merchant’s official instant discount of 10%-15%.
This small step taken by the platform has excited both merchants and consumers.
Li Tian, who is about to be promoted to a baby mother, said that recently, she took time to prepare a waiting list for the baby who is about to be born. In addition to comparing brands, she also had to calculate the most cost-effective price. “It’s a waste of a whole night to collect wool, and it’s a headache to calculate. This big promotion doesn’t need to be calculated, and I don’t need to bother to make up the bill. It cured my obsessive-compulsive disorder and choice anxiety.”
Fenglai operators who participated in the official instant discount of food brands also admitted to AI Blue Media: “The store directly sells profits to consumers, which saves people the trouble of making up orders. It used to be 300-30, which is equivalent to a 10% discount ; and now the discount is 13%, which is equivalent to a 13% discount, which is more favorable and saves trouble.”
It is understood that the cancellation of cross-store full discounts this time is a strategy of Tmall, and platforms such as JD.com and Douyin have not yet followed up. At the New Year’s Day, Tmall took the initiative to make adjustments to the gameplay, which will reduce the burden on the platform, merchants and consumers.
Judging from the past years, every time the big promotion node, the activities and gameplay of the platform are too tossing consumers. The cycle is long, there are many routines, and the rules are complicated, so that consumers are losing their enthusiasm for making orders and their desire to participate in activities. In a word, consumers have become less and less interested in festival promotions, and even more and more tired.
Take Double 11 in 2022 as an example. All major e-commerce companies will no longer release battle reports, and merchants have expressed that they “can’t move anymore.” Behind the superficial “Buddhism” of e-commerce giants, it is an indisputable fact that the growth rate of e-commerce sales has slowed down.
How to revitalize the big promotion of e-commerce and revive the national consumption enthusiasm is a proposition left to all e-commerce companies in 2023.
At present, Taobao and Tmall are the first to answer questions.
The supply and consumption ends are bitterly combined, and the list is full and the bill has been reduced for a long time
For Tmall’s sudden abandonment of the “cross-store full discount” strategy, Fang Fang, a snack brand operator, was surprised at first. “Last year’s 6.18 and Double 11 two big promotions, both of which were quite strong. It is a surprise that the cross-store discounts were suddenly canceled during the New Year’s Day.”
Looking back at 618 in 2022, Tmall took the lead in releasing an unprecedented discount strategy of 50% off when you spend 300 or more on 618, and then JD.com quickly followed up-50 off when you spend 299 or more. The full discount strategy of Double 11 is also similar to 618.
In addition, JD Plus members and Tmall 88VIP members also enjoy exclusive discounts. The two platforms can be said to be more expensive than the other. In the final analysis, they are to stimulate consumption.
There is indeed an effect, but it is not so obvious. Relevant data show that in 2019, 2020, and 2021, the GMV growth rates of the entire network during Double 11 will be 51.8%, 43.3%, and 12.2%, respectively. By 2022, major platforms will tacitly choose not to announce the GMV growth rate.
This also reflects from one aspect that the promotion strategy of “cross-store full discount” that has lasted for many years is becoming invalid.
For consumers, the price comparison between platforms is labor-intensive, the gameplay is more complex and brain-consuming, and the price is full of chaos. On the one hand, the attractiveness of the big promotion to consumers is weakening year by year. It is more rational and cautious in practice, and it is difficult to be routine.
This is also often complained by consumers: “One operation is as fierce as a tiger, and I lost two yuan and five dollars.”
Merchants also complained about the cross-store full reduction. Among them, the business that complained the most was “My Happy Wardrobe” by Zhang Dayi, a top online celebrity.
For a long time, Zhang Dayi’s store has been a “magic tool” for some consumers whenever e-commerce is promoted. When consumers can’t get their favorite products, they will go to Zhang Dayi’s store to take pictures of the corresponding amount of goods, and refund them immediately after checking out.
On social platforms, some netizens ridiculed, “There is no Zhang Dayi on the way to collect orders, just like there is no Jerusalem in the West.”
But Zhang Dayi’s behavior of making a single netizen finally “broken his defense”. During Double 11 in 2022, it seems that Zhang Dayi’s Weibo trumpet responded to the behavior of netizens to collect orders and removed cheap goods from the shelves.
After Taobao Tmall canceled the cross-store full discount this time, some netizens said that Taobao Tmall deprived them of their “happiness”-“I quite enjoy making orders, we have Zhang Dayi!”
In this regard, AI Blue Media Exchange found that the merchant “My Happy Wardrobe” did not participate in the official instant discount during the New Year’s Day.
In fact, it’s not just Zhang Dayi who has been suffering from “full discounts across stores” for a long time.
More Tmall merchant stores will also be targeted by consumers to collect orders when they put 6.9 yuan and 9.9 yuan products on the shelves. “The high return rate has increased the labor cost of our operation. Sometimes the product has already been shipped, and consumers refund halfway, we have to intercept the express delivery.” A maternal and child brand told AI Blue Media Exchange.
At this New Year’s Day, consumers are more certain of their purchase purposes based on the new rules of the platform, that is, the phenomenon of buying and returning has been significantly reduced.
Tmall Returns Straight Men’s Style Promotion
Tmall’s sudden adjustments to its gameplay at this New Year’s Festival are not “on a whim”, but purposeful adjustments.
In the state where the entire e-commerce environment traffic is completely divided, Pinduoduo used low prices and tens of billions of subsidies to lay down the fourth and fifth lines, and entered the fifth ring. Later, new e-commerce forces such as Doukuai quickly ate traditional e-commerce The platform market has put Taobao, Tmall and JD.com under great pressure in the past year.
In fact, Jingdong has clearly shown signs of fatigue. According to Tiger Sniff statistics, in 2022, the year-on-year growth rate of Jingdong’s net income in the first half of the year will slow down to 11%—this is the lowest growth rate since 2018; the year-on-year growth rate of the number of annual active users will also drop to 9.2%—after experiencing After more than two years of high-speed growth, it fell back to the growth rate range of less than 10%.
Although Taobao Tmall still occupies the first position in e-commerce, it has to change its mentality and be prepared for danger in times of peace. In the past year, Taobao Tmall has made many changes to improve consumers’ shopping experience on the basis of proposing the “from transaction to consumption” strategy.
And this return to straight men’s promotion is also one of the most powerful performances. The change in the promotion method will also benefit the platform, merchants, and consumers.
The first is to reduce routines and return to business itself.
In 2016, Taobao Tmall was the first to launch cross-store discounts. At that time, in order to encourage buyers and sellers, the platform allowed different stores, brands, categories, and commodities to form related consumption, and also allowed consumers to form effective consumption links across categories, brands, and stores at one time.
The effect is also obvious. On the one hand, consumers can stay longer on the platform, browse more products, and stimulate consumption; on the other hand, the user activity of the platform is greatly improved, and brand merchants can also increase sales.
According to iiMedia Consulting, since 2016, the turnover of China’s e-commerce platforms on Double 11 has increased year after year, and the “cross-store full reduction” has contributed a lot.
At this stage, as merchants and consumers become more and more numb to big promotions, it is time for the platform to make changes.
Tmall, which emphasizes “consumer experience”, took the lead in making changes and returning to its original intention. It can be clearly seen that Taobao and Tmall have been developing in the direction of “simplification” this year, reducing the burden on both merchants and consumers.
Secondly, the winner of e-commerce is ultimately to fight for low price, quality and service.
Recently, at JD.com’s internal meeting, Liu Qiangdong once again described his previous victories to executives and JD.com employees and analyzed the reasons for his victory: the key factor in winning Dangdang is price; the key factor in winning Suning is still price.
Platforms such as Doukuai and Pinduoduo also directly put the “lowest price” on their promotional pages.
Competing for quality and service has always been Tmall’s advantage; but when it comes to competing for prices, Tmall does not have an advantage.
Therefore, in terms of price competition, Tmall has to show its sword in advance and attract consumers through “straight men” discounts.
Generally speaking, in the e-commerce environment full of routines, Tmall took the initiative to break the rules set by itself this time. Not only did the platform begin to have the awareness of stepping out of the “comfort zone”, but it also made merchants and consumers supportive again. stand up.
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