Sniper spell a lot, Taobao special edition play?

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Welcome to the wechat subscription number of “create a story”: sinacchangshiji
Author / Tang Yahua editor / Liming
Source: rancaijing (ID: rancaijing)
The Internet industry has always been good at creating concepts. The concept of c2m has not been known to the world. E-commerce giants have joined hands here.
At the end of March 2020, Alibaba launched Taobao special edition. After that, Taobao special edition once surpassed Taobao and pinduoduo to the top of free app download list of Apple App store. Taobao special edition mainly focuses on c2m, using the concept of “super factory” to promote the factory’s low price direct delivery to users. This move is interpreted as a positive confrontation in the industry.
In fact, the first mock exam was put forward and practiced in China at first, and the Alibaba also pushed the model in the “Amoy factory” and “every day sale”, but it hasn’t caused much response in C2M. Until 2018, pinduoduo “went out of the circle” in the mode of “pinduoduo”. Big brother Ali was in a hurry. In 2019, Alibaba set up a c2m business department. After one year’s internal testing, Taobao special price board was officially launched.
The core of c2m is to remove the intermediate links such as brand and channel providers, improve efficiency and reduce price. Its zero inventory feature can also reduce the burden of the factory and achieve multi win. However, some people believe that customization is difficult to expand the scale, zero inventory delivery is slow, and user experience is poor. What e-commerce platform is pushing is actually an improved M2C model, that is, the factory first makes special products according to the basic needs of most people, and then sells them to consumers.
In theory, the c2m model that removes middlemen and improves cost performance has only advantages and no disadvantages. But the test in the middle is to connect the platforms of both sides. Alibaba and pinduoduo have large traffic. It is a challenge to do well in operation, collect user demand and coordinate all aspects of enterprise management, production and circulation. Pinduoduo has accumulated some experience in this respect. Can Alibaba, which brings up c2m again, pull back a game?
People in the industry think that Alibaba may just do a follow-up strategy for pinduoduo and do some work at the public relations level. But under the epidemic situation, according to the analysis of practitioners, the industry ushered in similar development opportunities as Taobao in 2003 and tmall in 2008. Foreign trade enterprises seek domestic sales channels, and consumers pay more attention to cost performance. In this regard, Ali has certain innate advantages.
However, in view of its previous shortcomings in the operation of the factory mode, c2m development has little effect. If Ali fails to completely transform the organizational management, operation and incentive mode for the factory, it may fail again.
01
Is c2m a true tuyere or a false concept?
Let’s take a look at c2m in recent years.
C2m is the abbreviation of customer-to-manufacturer in English. Literal translation is the user’s direct manufacturing, which can also be understood as the e-commerce mode of user customization and factory production. The first mock exam was put forward by the founder and CEO of the necessary shopping mall.
Understand c2m and compare it with traditional e-commerce mode. For a long time, the path of commodity circulation is that factories produce first, and brand side connects factories and consumers, and retailers sell products to consumers.
For example, a bottle of shampoo produced by the factory is put into storage first, then transported to the warehouses of distribution stores, then to the hands of wholesalers, and finally to the retail terminals of supermarkets or small stores. “Brands collect or promote consumer demand, which is then produced by factories, and then connected with retailers to sell to consumers through brands. Consumers finally trust brands, and retailers are responsible for organizing brand sales.” Zhuang Shuai, founder of Bailian consulting, explains.
The traditional mode is that the user can buy the product as soon as he sees it, which is convenient and quick, but the disadvantage is that the enterprise has a large inventory pressure, and in case the product is not popular, it may face large-scale waste.
But c2m focuses on reverse customization, that is, the enterprise first collects the needs of users, and then produces. For example, the platform gathered 100000 shampoo orders through the operation of group purchase, placed an order for production for the factory, and the factory delivered directly to users. In the middle, the brand and retailer are omitted, the efficiency is higher and the price is lower, so the factory can also achieve zero inventory backlog.
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However, according to Li Chengdong, an e-commerce analyst, c2m is a false proposition with little value. “This is a concept. Dell computers were customized as early as the 1930s and 1940s. The customization scale is not large, and if the production cannot keep up with it, the delivery speed is very slow, and the user experience is very poor, it is impossible to make c2m for products with time limit requirements. ”
This seems to have been noticed in the industry, so at present, many of the so-called c2m in the market are actually improved M2C mode, that is to say, the order of user customization and factory production is reversed, and in fact, it turns into a large number of factory special price goods for sale.
In other words, M2C mode retains the short chain advantage of direct user access to the factory, and eliminates the experience defects caused by zero inventory and long production cycle.
“At present, pinduoduo and Taobao are such special prices. They are all in stock. In fact, the primary stage of c2m is not determined by the real needs of consumers but by the general needs. For example, I want to buy a soap box, but the color and shape are not necessarily. The platform collects the demand of basic funds and lets the factory produce them. In essence, the factory treats consumers, but makes them into special products. ” Zhuang Shuai mentioned.
In his view, this demand is the Costco model of retailers, which has been proved to be very successful. “For example, Costco has their own brand paper towels. When users go to Costco, they find that there is no breeze paper towels, but their quality is also good, and their price is cheap, so they buy them.”
“No matter Costco or pinduoduo, they may collect hundreds of thousands of product needs every month. Because of the large amount of customization, they find factories to produce, and express delivery is also connected by the platform. The core of this model is that there is huge online traffic, which can promote the change of supply chain. This mode of intensive production is a good model for the weak brand commodities such as general merchandise, small household appliances and small furniture. ” Zhuang Shuai tells fuel finance.

But according to Li Chengdong, even if it’s M2C, Taobao has been working for many years, “this concept is meaningless. The core is whether things can be sold cheaply and well.”
02
Ali and pinduoduo face to face c2m
It is this c2m, which is supported and despised by some people, that has caused some “fighting” in the industry.
As early as 2013, Alibaba’s 1688 launched “taofactory” based on the concept of c2m; Baidu’s Bing Sheng, who once worked for Baidu, was necessary to establish the world’s first c2m e-commerce platform in 2014; in 2016, Netease strictly selected and launched ODM mode e-commerce, connecting with major manufacturers and focusing on select mode.
But these are all living in a small and beautiful way, until pinduoduo’s “new brand plan” started, giant Ali began to worry.
Pinduoduo’s “new brand plan” started at the end of 2018. Pinduoduo provides data, product development and pricing suggestions for the factory, and establishes a direct supply and demand model for consumers. With wechat traffic bonus and sinking + social interaction, pinduoduo quickly opens up the situation.
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And the daily special price was originally a special product launched by Taobao in 2010, with a price of 9.9 yuan as the main price. With the rapid rise of pinduoduo, in November 2018, Tiantian special price was upgraded to Tiantian special price, and c2m was mentioned again, indicating that small and medium-sized factories would be digitized. In 2019, aliju cost effectively launched the “Factory Marketing” system, and Taobao business group established the c2m business department.
At the same time, the e-commerce giants have noticed the cake. Taking advantage of the relatively mature business model and development ability in c2m field, JD launched “Jingxi”, which will release 100 million new products and c2m products in the next three years; Suning released c2m ecology, focusing on building c2m platform.
At the end of 2019, pinduoduo upgraded the “new brand plan” to “new brand alliance”, claiming to upgrade the support of a single factory store to an industrial belt type coverage layout; on March 26, 2020, at the Alibaba c2m Strategy Conference, Wang Hai, vice president of Alibaba and general manager of Taobao c2m business department, announced the official launch of Taobao special edition.
At this point, pinduoduo and Ali in the c2m competition into a glued state.
Interestingly, just one day before Taobao special edition went online, jujiasuan and pinduoduo had a scolding battle on the Internet. First of all, pinduoduo claimed that Taobao banned pinduoduo’s second-hand taoapp, which made it impossible to place an order in the category of jujiasuan 10 billion subsidies. According to the official response, a large number of unidentified and registered “users” in a certain area continue to try to use various means to crawl the platform information and steal preferential subsidies, so Ju made relevant restrictions on such violations.
Later, pinduoduo and Xiaoer Lefu replied on Weibo, “pinduoduo and Xiaoer are curious to see how Taobao copied Duoduo’s orchard, 10 billion subsidies, money saving monthly card, cash sharing, etc.?”
Pinduoduo’s sophomore also mentioned that because the Shanghai Office of Yitu technology is downstairs from pinduoduo’s headquarters, the Taobao account of Yitu technology employees using the same IP address has also been banned. Although Alibaba and pinduoduo scolded and fought more than once and twice, it caused many melon eaters to watch.
Back to c2m e-commerce, several companies in the industry have their advantages and disadvantages.
Zhuang Shuai mentioned that it is necessary to be similar to the strict selection of Netease, but the biggest paradox of this type of strict selection of e-commerce is that it is not clear whether it is a brand or a retailer. “If it is a brand, the category is limited. After growing up, we will make a new brand and use the multi brand strategy to increase the sales volume. If it’s a retailer, it’s going to expand its category to a large scale. However, the necessity and strict selection of Netease are still vague. This model has not been verified in the history of business development, or its scale is limited. If we don’t make a clear positioning, we will face great challenges in the future. ”
For example, Procter & Gamble will not make a strict choice. It will choose large categories such as shampoo and soap to make subdivided brands, such as Piao Rou and Haifei silk. The strict selection of e-commerce model is suitable for limited categories, such as furniture and home textile, but whether the food and electrical users will choose is not certain. Millet products began to introduce brands to do special sales, which is equivalent to the role of retailers.
The advantage of pinduoduo is to collect a large amount of demand in a short period of time through the pinduoduo, and enable the upstream factory with “order”. For the factory, there are both stable orders and no need to bear the inventory. With digital transformation, the intermediate information recording, monitoring and supply chain services are improved, so as to reduce costs.
According to the platform data, by the end of 2019, there were about 106 formal members of the new brand plan, more than 900 enterprises including well-known brands participated in c2m customized production, and more than 2200 customized products were launched, with an order volume of more than 115 million.
In this case, Taobao special edition will become a powerful weapon for Ali to snipe and fight against Duoduo, or will it be a flash in the pan?
03
Can Taobao’s special edition be made?
The slogan of Taobao’s special edition app is “optimize the factory and wholesale price every day”. Landing app, the page is similar to Taobao, but also classified by categories such as beauty makeup, home appliances, mother and baby. Most of the goods are in a few to dozens of yuan, similar to Taobao in style but cheaper.
“In response to people’s pursuit of cost-effective products, Taobao officially launched Taobao special edition, which is the world’s first shopping app with c2m industrial belt as the core supply. It can effectively help small and medium-sized enterprises improve efficiency and achieve growth, and also provide consumers with good and cheap products through the way of factory direct supply,” said Ali
Along with Taobao special edition, there are also “super factory plan” and “ten billion production area plan”. The three measures are also called three pillars of Taobao c2m strategy.
In terms of the positioning and difference of Taobao special offer app, Wang Hai, vice president of Alibaba, explained that the special offer app is designed to provide channels for industrial belt and customized products, so the experience of c2m customized products in Taobao special offer will be more concentrated and focused. According to data released by Alibaba, during the last March 8 Shopping Festival, orders for c2m customized goods increased by more than 370% year on year.

Li Chengdong thought: “Taobao has given up the concept for many years before, just because now pinduoduo is talking about the c2m concept, which belongs to the follow-up strategy. Taobao special edition launched the core purpose is to fight against pinduoduo. ”
Bao Yuezhong, a new retail expert, believes that C2M is one of the modes and directions of e-commerce. In the future, the ways of selling goods and channels are diversified, and it is impossible to go from manufacturer to channel to terminal.
“This can’t be defined as the competition between enterprises alone. In recent years, Ali has stepped out of the successful way of online retail mode, and pinduoduo has taken another way with the way of wechat community fission, which has made positive exploration for the change of channel mode in the whole consumer goods industry.” Bao Yuezhong mentioned.
Zhuang Shuai interpreted according to the latest market situation. In his opinion, Taobao special edition still has a great chance. “Especially under the influence of the epidemic, it is difficult to recover the whole foreign trade export in a short period of time. The pressure of Chinese foreign trade enterprises may last for two to three years. This is the same time that Taobao in 2003 and tmall in 2008 developed. It is also a new round of export to domestic demand. Foreign trade factories are looking for domestic demand sales channels. Taobao obviously has its brand advantage, audience advantage and regional advantage. ”
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However, c2m, as Alibaba’s early model, has not achieved results. Now the market has changed, and the strong are like a forest. Can we seize the market in pinduoduo’s hands if we pick it up again?
Mr. Zhuang recalled that Alibaba’s factory model experiment actually dates back to an earlier time. From 2006 to 2007, Alibaba launched a product called lianginfinite, but the project finally died.
“Alibaba has always been a platform, providing services to brand makers and retailers. Taobao’s supply chain management ability is very weak, which requires them to make adjustments in organizational structure, technology, marketing mode, management mode, incentive mode, etc. If it is not adjusted, it is still not good to mention c2m again. ” Zhuang Shuai said.