From its launch last year to today’s popular "full network", many e-commerce platforms have adopted it as a long-term strategy and are online all year round——
What is the origin of the "ten billion subsidy"?
After spending the longest “Double 11”, sending away the “Black Friday” of Haitao, and then ushering in the “Double 12” at the end of the year, many consumers have found that when all kinds of shopping festivals report in sequence, “Hundred "100 million subsidies", a new term that is just over one year old, has been resident on many e-commerce platforms.
Different from the fixed time limit of the shopping festival, the frequency of "ten billion subsidies" is higher, and it is now even more visible on platforms such as Pinduoduo, Taobao, and Suning.
What does the "ten billion subsidy" come from?
Is it a subsidy for real money?
How to calculate this economic account?
Our reporter asked the person in charge of several e-commerce platforms to chat with industry experts.
What is the subsidy?
——Mainly focusing on the "tip goods" that consumers are keen on, and many platforms have invested more than 10 billion yuan; based on the market price, some 5G mobile phones can be supplemented for 500 yuan each
A box of kiwifruit subsidizes 12.9 yuan, priced at 27.8 yuan; a beauty product subsidizes 120 yuan, priced at 549 yuan; a washing machine subsidizes 330 yuan, priced at 1969 yuan... Randomly click on an e-commerce platform "10 billion subsidies "The page, from fresh department stores, big-name cosmetics to digital home appliances, clothing and luggage, and even car products, home improvement, travel and other products are almost everything.
"Buy cheap this time" "Very good deal"... At the bottom of the product detail page, similar user comments appear from time to time.
From shopping festivals to daily consumption, many consumers enjoy the benefits brought by the "ten billion subsidies".
What is the "ten billion subsidy" subsidy law?
Many platforms such as Pinduoduo, Taobao Juhuasuan, and Suning stated that the "ten billion subsidy" products have expanded to multiple categories or even all categories, and focus on the "tip goods" that consumers are keen on.
"We directly supplement the branded products with the highest attention, the best sales volume and the best consumer feedback in the market. So far, we have covered tens of thousands of products from thousands of brands." Liu Zhongqi, vice president of Pinduoduo New Consumer Research Institute For example, with the help of "ten billion subsidies", the platform has sold more than 3.3 million Apple mobile phones.
As consumer demand and commodity prices change every day, Pinduoduo has specially equipped a monitoring team of more than 200 people for the “10 billion subsidy”, and dynamically adjusts subsidies, commodity prices, and subsidies based on the “real-time price comparison” mechanism. Directory, coverage, etc.
"There will be new brand products included in the subsidy at any time, and there will also be long-term subsidies for old products that consumers love, and the platform will repeatedly replenish." Liu Zhongqi said.
Some people are also curious: Is the "ten billion subsidy" real money?
On the one hand, it is reflected in commodity prices.
"Genuine low price" is the main selling point of many platforms in the "tens of billions of subsidies".
Fan Chunyan, vice president of Suning Tesco's platform operation group, introduced that different commodity categories have different pricing logic.
But in terms of the magnitude of the subsidy, Suning can achieve no less than 10 percentage points on the basis of the current industry bidding.
For example, 5G mobile phones can be topped up to 500 yuan each.
On the other hand, the platform side also has actual investment.
According to Liu Bo, general manager of Alibaba's Daju Cost-effective Business Unit, for the "10 billion subsidy" project, the cash subsidy provided by the Ali platform far exceeds 10 billion yuan.
Pinduoduo’s data shows that after the launch of the "10 billion subsidies" in the middle of last year, the sales and marketing expenses mainly used for commodity subsidies, online promotions and product promotion in the second half of last year reached 16.18 billion yuan; as of the end of September this year, The accumulated platform sales and marketing expenses have exceeded 25.4 billion yuan.
Since last year, "10 billion subsidies" began to appear on more and more e-commerce platforms, and gradually became a long-term strategy.
Pinduoduo, Juhuasuan, and Suning all said: "Ten billion subsidies" are "normalized products" and will be "continued" and "long-term online".
What is the subsidy map?
——Activate the consumer side and stimulate the supply side; 50% off subsidized products such as Disney and Kaiyuan Hotel launched by the platform are all available in seconds
So, what exactly gave birth to the "ten billion subsidies"?
Consumer demand is still the core element.
Liu Zhongqi explained that during the rapid development of the platform, they found that users in both first- and second-tier cities and low-tier cities have continued to increase their demand for branded products on the platform, but their decision-making is subject to factors such as price and service.
In addition, due to geographical restrictions on some products, consumers have a lack of purchase channels and numerous intermediate price increases.
In this context, Pinduoduo launched the "10 billion subsidy" strategy last June.
Juhuasuan regards "10 billion subsidies" as one of the supply-side "combined punches" facing the sinking market.
"Regardless of whether it is a first-tier or a second-tier city or a third-tier city, consumers have the same pursuit of quality and cost-effective life." Liu Bo said, "Ten billion subsidies" have been continuously activated through high-frequency, powerful, big-name, and explosive subsidies. On the consumer side, pull the supply side.
Li Mingtao, Dean of the Research Institute of China International Electronic Commerce Research Center, pointed out from the perspective of the entire industry that nowadays, Internet platform traffic dividends are declining, and e-commerce platforms have high costs for developing new customers.
"Ten billion subsidies" are not only a means to attract new customers, but also a market competition strategy.
"Through the introduction of promotion rules, the effect of stabilizing merchants and promoting consumption can be said to be immediate."
After the outbreak of the epidemic this year, boosting consumption has become a key part of the whole society, and the "tens of billions of subsidies" have also been further exerted.
Based on the changes in the consumer market brought about by the epidemic, Pinduoduo has significantly expanded the coverage and subsidies of the "10 billion subsidies" for "vegetable baskets" and "rice bags" and other livelihood products to meet consumer demand in special periods.
During the "Eleventh" Golden Week, Juhuasuan will provide targeted subsidies for tourism and movies.
Take hotel and scenic area tickets as an example, the "ten billion subsidies" launched Disney, Changlong Wildlife Park, BTG Home Inns, Kaiyuan Hotel, Accor Group Hotel and other 50% off subsidies, all of which are in seconds.
Suning even brought the "10 billion subsidies" offline, and gave support to communities, counties, towns, and supermarkets.
In nearly 7,000 Suning retail cloud stores in counties and towns across the country, the words "Ten billion in subsidies, pay for you" can be seen everywhere.
"Under the influence of the epidemic, many industries have entered a period of weakness. The supply side of merchants cannot fully meet the needs of users, and user needs are suppressed due to the epidemic. These industries and businesses have been assisted through subsidies." Liu Bo said.
In Li Mingtao's view, under the dual background of downward pressure on the economy and a sudden epidemic, some consumers are indeed anxious about the future and urgently need to boost their confidence.
"'Ten billion subsidies' have played a positive role in boosting industry morale and enhancing consumer confidence. At the same time, this is also a positive response of e-commerce companies to the country's consumption promotion policy."
What is the effect?
——Consumers get benefits, the brand gets new customers, and it is expected to upgrade and expand in the future
After more than a year, what is the effect of the "ten billion subsidy"?
Each platform showed a set of data.
Pechoin Amino Acid Facial Cleanser is one of Pinduoduo's best-selling beauty and personal care products under the “ten billion subsidy”.
This was originally a herbal cleansing product launched by Pecho Ling, a time-honored domestic brand, but the competition for products of the same price is fierce.
"After being selected as Pinduoduo's '10 Billion Subsidy', the price of this product has been greatly reduced, and consumers are more willing to try to buy and experience time-honored new products, which not only drove the product sales to rise sharply, but also created the platform's cleansing products this year." Liu Zhongqi said .
At present, the average daily active users enjoying subsidies on Pinduoduo have exceeded 100 million.
Juhuasuan "Ten Billion Subsidy" has also reached official cooperation with many international and domestic head beauty brands, including LVMH Group Givenchy, L'Oréal Group Saint Laurent, Shiseido's IPSA, CPB, in addition to Armani, Benefit, NARS, etc.
During the "Double 11" period, Juhuasuan's "10 billion subsidy" subsidized 160,000 half-price Saint Laurent lipsticks in two days, of which more than 50% of the third-tier and below consumers.
"This cooperation not only allows consumers to enjoy benefits, but also helps the brand gain a large number of new customers. 74% of buyers are new users of the brand." Liu Bo said.
There are many similar cases on all major platforms.
"The launch of the tens of billions of subsidies campaign is to accurately capture the emotions and shopping psychology of consumers. The low prices and rich scenes that are implemented are very popular with consumers. For Suning.com, it has successfully strengthened the barriers to competition. Continue to broaden the'moat'." Fan Chunyan said.
How will the "10 billion subsidies" develop in the future?
"As long as consumers' demand for high-quality goods exists, the platform will continue to increase its size on the existing basis, unlimited time and unlimited subsidies, and create a better shopping experience for consumers." Liu Zhongqi said.
Liu Bo also said that in the future, Juhuasuan’s tens of billions of subsidies will continue to be upgraded and expanded. By linking with Taobao, Tmall, Ele.me, Alibaba Health, Fliggy, Hema, Tao Piao Piao and other Alibaba economy brands, it will build an agricultural, Ali's tens of billions of subsidies in many fields such as electronics, tourism, movies, health, etc. allow consumers to enjoy more low-priced quality products, and new brands have more opportunities to break through.
Reporter Li Jie