How Can E-Commerce Play "Double 11" When The Low Price Weapon Is Removed

Didn't wait until 0:00 on November 11 online retailers The prelude of the "Double 11" war has already been opened.

Wang Yulei, president of Tmall, predicted that this year was the year with the largest number of merchants participating in Tmall over the years. So far, Tmall has 27000 merchants participating in Tmall, and it is open to international merchants for the first time. On the other hand, JD Mall has launched a large number of online and offline Double 11 advertisements, which are no less promotional than Ali, and it is intended to compete with Ali through WeChat channels. Ctrip also made a big push for the 15th anniversary of its launch last week, and e-commerce companies in various fields such as Vipshop and Home of Automobiles did not show weakness, and they were brushing the sense of existence of Double 11. The battle was raging and the scene was messy. The reporter learned from authoritative channels that recently, the State Administration for Industry and Commerce convened 10 e-commerce enterprises, including Alibaba, Jingdong, Suning Yigou, and Ctrip, to conduct interviews, mainly focusing on how to conduct "disorderly management of sales behavior", and requested that the "Double 11" ban the lowest price publicity.

In this way, how can we fight the Double 11 War? What are the winning chips in this year's "Double 11" battle?

The latest battle situation: the trademark war takes the lead

Nobody expected that the first battle of the Double 11 War this year would be the "trademark war".

On October 30, it came out online because Alibaba Holding the "Double 11" trademark, JD should be restricted from publishing TV advertisements containing "Double 11" content. BOE confirms that it is indeed facing the problem of advertising. Later, JD said on its official microblog that an e-commerce enterprise had sent a circular letter in strong words, asking all major media not to issue a letter with‘ The promotion advertisement of "Double Eleven" is based on the fact that the trademark of "Double Eleven" is in the hands of the e-commerce company.

The reporter found that Alibaba had applied for the registration of the "Double 11" trademark as early as November 2011, with the international classification number of 35. In addition, Alibaba has applied for and registered a series of trademarks such as "Double 11" and "Double 11 Carnival" in 38, 41 and other related categories. According to the "Notice Letter" exposed on the Internet, Tmall accused a few e-commerce "Double 11" advertisements of being insinuated, such as "aimless" and "fake", so it took action.

But in fact, the tactical core of trademark war is marketing war. At this time point, JD launched a comprehensive "red envelope" activity on the mobile terminal, where users can shop on JD WeChat and JD Mobile Q Q Shopping will get the red envelope coupons with a face value ranging from 2 yuan to 1111 yuan, and the red envelope will increase the face value after "seeking integration". Ali used Sina Weibo as the traffic portal, and 1111 Weibo big V with the highest popularity of United Weibo distributed double 11 red packets. Ctrip has launched various special promotional products since early October, such as 0 yuan air tickets, 1 yuan tickets, cruise products, buy one get one free, etc. Mogujie.com, a shopping guide website, has prepared a 100 million store coupon quota for users to log in to A Get it on the home page of the app.

As a result of the tussle among e-commerce companies, the marketing cost of the Double 11 has also continued to rise. Peng Hailiang, the e-commerce promotion director of Shangpin Homestead, said in an interview with reporters, "At present, the traffic or marketing cost accounts for 10% of Shangpin Homestead, while in 2009 it only accounted for about 7%."

Regulatory action State Administration for Industry and Commerce Quick interview

Price is the key blow. The situation of "price increase first and then price decrease" has occurred in the sales of Double 11 in the past years, and this year is no exception. Some electrical appliance sellers told the reporter that several major platforms would require sellers to launch half price products, but the profit margin of some categories, such as household appliances, was very low, so they would raise the price at least one month in advance and then adjust the price. "To see if there is any price adjustment, consumers can first add the goods to the shopping cart in the middle of October, and then observe the price. Another way is to use the package sales of two or even three goods, which can also blur the price."

Naturally, this phenomenon has attracted the attention of the State Administration for Industry and Commerce. On October 31, Alibaba, JD, Vipshop, Suning Yigou, No. 1 Store, Amazon Mall, Jumeiyoupin, Ctrip, 58 Tongcheng, Qunar.com and other 10 home appliance companies were called to a meeting to sort out the problems in past promotions and take measures to prevent them.

The State Administration for Industry and Commerce proposed that the duration, methods and rules of promotional activities must be announced in advance on the website, the business qualifications and identity information of promoters must be checked, the recent online commodity prices must be comprehensively sorted out, and operators must be prevented from fabricating preferential promotions and deceiving consumers by adopting the method of "first increasing prices and then reducing prices".

At the same time, according to the summary of the State Administration for Industry and Commerce, the rights and interests of "Double 11" consumers have been violated, mainly because some fake discounts mislead consumers, as well as false propaganda and illegal advertising. Some network operators use terms that violate the provisions of the Advertising Law, such as "the lowest price in the whole network", "the lowest price in history", "sales first", "ranking first" and so on.

However, Chen Yuwen, an assistant to the chairman of the board of directors of Yenchun Group, told reporters that after several years of attempts, businesses no longer focus on a single flow or sales volume, but more on the application of big data. "We need to understand consumer behavior and consumption decisions, such as why consumers make decisions? This will determine the direction and pricing of products this year. After a year of precipitation of big data, our regular customers can reach an average return rate of 30%, and the return rate of big events can reach 50%."

　　 War preparation tactics

How to play Double 11 without selling the lowest price

Tactic 1: Overseas shopping attracts new customers

This year's Double 11, Tmall Global made its debut on this year's Double 11, becoming the focus of attention of domestic consumers. Taobao Overseas, AliExpress, etc. also participated in the "Double 11" for the first time, which is also the first time for Alibaba to expand its annual largest shopping carnival to the world.

In addition, Amazon China announced that it has launched the direct mail service to China from six major overseas sites, so that consumers can enjoy more than 80 million kinds of international products from Amazon in the United States, Germany, Spain, France, the United Kingdom and Italy, comprehensively launching the "overseas shopping" offensive. And Store 1 has also entered the Shanghai Free Trade Zone in December and laid out cross-border e-commerce business. Its online "No.1 Overseas Shopping" project takes the lead in introducing overseas high-quality goods into China through bonded import mode and overseas direct mail mode.

Taking the cooperation between Tmall Global and the American Costco supermarket as an example, Zhang Yong, CEO of Alibaba, said to reporters that the intermediate link saved by the direct transaction between Costco and Chinese consumers through Tmall Global has greatly reduced the costs of both sides. At the same time, the current bonded stock model can also save some logistics costs.

Lin Wenbin, a senior analyst, believes that the improvement of the spending power of the post-80s and post-90s digital "aborigines" has gradually shifted their focus on online shopping products from price and service to quality and brand, while overseas shopping has met consumers' diverse needs from price to personalization, becoming a new driving force for online shopping growth.

Tactic 2: Mobile payment promotes O2O process

Two years ago, when the "Double 11" first emerged, many offline retail enterprises, stores and general merchandise did not commit themselves to follow. During the "Double 11" last year, Alibaba's offline promotion was also boycotted by traditional home stores such as Red Star Macalline, and there was obvious rivalry and competition between offline and online enterprises.

But this year, more and more offline retail enterprises have chosen to follow the trend. The relevant person in charge of Red Star Macalline told the reporter that on November 8 and 9, Red Star stores across the country will carry out the "classic home tour" activity, and jointly launch online payment and mobile payment with ICBC to accelerate the development of O 2O. Taking Ali as an example, 317 stores of 28 department stores such as Yintai Commerce, Wangfujing Department Store, Joy City Department Store, and Guangbai Department Store officially participated in the Double Ten One Shopping Carnival O In the special session of "2O", mobile Taobao United Department Store Group opened the whole electronic link of goods, members, payment, etc., and realized the online offline shopping approach.

Peng Hailiang, director of e-commerce promotion of Shangpin Home Distribution, said that the rise of O2O was mainly due to the rapid growth of mobile terminals this year. "Last year, the mobile end to store consumption was only 10%. In just half a year this year, the proportion from Tmall mobile end to store has increased to 30% - 40%, and the proportion of online sales in total sales has reached 50%, or even more." Peng Hailiang believes that this breakthrough mainly depends on getting through the online and offline payment links. "In the past, it was difficult for O2O to make transactions online. Customers who came to the store would choose the traditional transaction process. They would pay off the line with a pos machine, and there were not many people who returned home to complete transactions with computers, which would lead to the loss of customer flow."