Shulou(Shulou.com)11/24 Report--

Abstract: "double 11" returns to the original heart, and "low price" stimulates consumption passion.

Chapter one: rhythm and mainstream play of double 11 e-commerce platform

With the gradual end of Singles Day holiday in 2023, victory reports have come from all the major e-commerce platforms. In this year's double 11 promotion, the long front model has been continued, providing consumers with sufficient shopping time. Different from the two rounds of pre-sale systems adopted in the past, this year's platforms pay more attention to spot sales, with platforms such as JD.com and Douyin actively advocating the concept of "do not wait, spot direct sales". At the same time, this year, the platform is also simplifying promotion rules and providing a more simple and convenient way of shopping to meet the needs of different users and make the shopping experience more comfortable.

This year's Singles' Day event also shows a trend of returning to the original intention, focusing on the "low price" strategy to attract consumers' attention and desire to buy by creating the price competitiveness of high-quality goods. Reflects this year's double 11 e-commerce users as the starting point, continue to upgrade services and products determination. This two-pronged approach of focusing on user experience and price competitiveness has injected consumer vitality into this year's Singles Day holiday.

Figure 1-1 double 11 rhythm of mainstream e-commerce platform in 2023

Figure 1-2 inventory of mainstream games in Shuang 11 e-commerce industry in 2023

Focus on low price: low price mechanism + low price field + service guarantee to help the platform to build low price mind.

This year's Singles Day, major e-commerce platforms vigorously promote low-price strategy, advocating "low price" and "price reduction" as the primary guidance of traffic operation and goods management mechanism. The low-price strategy not only includes a variety of low-price fields, such as 10 billion subsidies, good prices on Taobao, cheap free delivery, etc., but also combines the whole process of price protection, expensive compensation and other service guarantees to ensure that users are always aware of the low-price concept called for by the platform in the process of shopping, aimed at creating a "low-price" benchmark in consumers' minds and profoundly stimulating users' enthusiasm for participation.

This year's low price mechanism is mainly divided into three categories. First of all, the tilt of low-cost traffic has become a major trend, and the platform begins to expose more low-cost goods in traffic distribution. Through the construction of commodity price power index and other quantitative indicators, such as Taobao's five-star price power, JD.com 's price star and so on, the platform tilts more flow to give low-priced goods, and establishes the corresponding flow incentive mechanism. Secondly, the price card control of promoting activities has also become an important measure this year. In this year's Singles' Day, each platform will be more stringent in price activity, price verification and card control. For example, Taobao urges the registration price to be checked at a 10% discount, while JD.com ensures a low price by double checking the scarlet letter price and the hand price. Finally, the control of price increases has become the third largest category, and the platform has tightened its control over price increases and then price reductions. Taobao not only controls the situation that the bid price rises first and then falls, but also reminds and rectifies the actual price rise, and even disqualifies and other related actions.

In the low-price field, it is mainly concentrated in five aspects. First of all, the low price tag, such as the whole network low price, "lightning mark", the same low price, 90-day low price, double 11 low price every day, and so on. The second is the good price channel, such as Taobao good price, Taobao gathering cost-effective. The third is 10 billion subsidies. JD.com and Taobao have launched 10 billion subsidies one after another. The fourth is low-cost free delivery, such as JD.com 's cheap free delivery, Taobao's one yuan free delivery and so on. Finally, there is an official reduction, such as the direct drop of a single item and the official reduction. These multiple fields work together to form a rich and diverse low-price scene, which meets the various needs of users for low-price in the shopping process.

Figure 1-3 inventory of low-price guarantee mechanism

Live broadcast e-commerce: the platform aims to launch a number of live broadcast support policies to stimulate the potential between live broadcast during the great promotion period.

During the double 11 promotion period, live e-commerce is still the core competition area of all major platforms. In order to better help merchants, various platforms have formulated multi-level support policies, provided omni-directional operation tools, and launched a number of targeted subsidy measures to help businesses and broadcasters quickly create a double 11 live broadcast scene. stimulate the potential energy of self-broadcasting and talented anchors, create explosive products, and impact performance.

This year, Taobao Live aims to help ecological anchors complete orders quickly during the boom period by establishing accurate support programs for different types of anchors. Especially for Dashu, we launched the double 11 broadcast plan, including 100 million red packets and tens of millions of traffic, so as to stimulate the potential energy of the talent and achieve rapid growth in performance.

JD.com live broadcast, subsidies and incentives have been increasing, the introduction of merchant qualifying and broadcast incentive policies, allowing businesses to share hundreds of billions of traffic pools, while enjoying tens of millions of cash subsidies. Through the three major theme live broadcast days, namely, CEO Live Day, Super Live Day and Industry Live Day, the platform and merchants work together to create explosive products of various categories. During the promotion period, JD.com firmly grasped the hot spots and launched the "JD.com purchase and sales studio". Category procurement and sales personally went into action, selected goods, focusing on low prices throughout the network, attracting a lot of attention, and the popularity continued to rise.

Live streaming on Douyin provides multiple games in terms of traffic support, helping merchants achieve a sales explosion. These include millions of item plans, providing platform traffic exposure resources, and creating live studio explosions through targeted people-to-goods matchmaking. The big stars' live broadcast rooms focus on resources to support the top talent, gather the potential energy of the platform, and achieve rapid sales growth. Good things live studio through the selection of high-quality products and strong subsidies to help businesses impact the target.

Little Red Book has formulated triple support policies for businesses at different stages to help businesses grow in an all-round way. Junior merchants can participate in the "store broadcast sailing plan", which lasts for 28 days, and can get up to 3w + home page recommendation exposure. Advanced merchants can participate in the "store broadcast transition plan", carve up millions of exclusive traffic, and get a large amount of traffic when they reach the standard for the first time. For big promotion merchants, launch the "store broadcast to promote more code" program, during the period of 10.10-11.12, after participating in the "live marketing" promotion, you can enjoy a 50% refund of promotion fees. A series of measures provide businesses with all-round support to help them achieve better performance at different stages.

User operation: the upgrade of members' rights and interests drives the growth of core users and greatly promotes the growth of brand users with full-cycle management.

This year, Shuang 11 platforms, on the one hand, enhance the stickiness of member users and drive the growth of core users through the upgrading of members' rights and interests, and on the other hand, through various upgrades such as water storage customer acquisition, recall conversion, repurchase promotion and so on, to provide the brand with a solution for the whole life cycle of users, enabling the growth of brand user assets.

Figure 1-4 Brand user growth solution

This year, the double 11 platform has also upgraded its membership rights and interests to enhance its membership stickiness through more comprehensive service guarantees and shopping discounts, among which Tmall 88VIP membership rights have been upgraded to three packages: life card, shopping card and universal card, in which the shopping card can enjoy the "new three packages" of e-commerce shopping, which further adds code and protection to the consumer experience: ① shopping discount at a 9.5% discount; ② daily red packet; ③ return freight package; ④ after-sales protection package. 88VIP large amount coupons: large 88VIP coupons with a total value of 20 billion will be issued during the Singles' Day this year, which can be superimposed with other discounts; two waves of large coupons strength: ① opening red: 7000-580; full 3500-280; ② peak period: 5000-400; 1500-120.

JD.com Plus members also upgraded their member rights before Singles Day holiday, including upgrading 1:PLUS from 5 monthly freight coupons to unlimited free mail, upgrade 2: 10 times back to Jingdou to a maximum of 3% rebate, upgrade 3: JD.com International / Pet and other millions of big-name goods discount 5%, upgrade 4: members can get a free medical examination once a year. Plus member double 11 play method: discount 5% discount + member exclusive coupon, Plus exclusive coupon strength: 6000-600 Full 5000-400; full 3000-300; full 1500-120 Ten 8 days Plusday plus 1000-80 and full 1000-40.

Simplified promotion: the promotion rules of each platform are "simplified" and "single product straight down" to improve users' shopping experience.

Starting from the user shopping experience, the Singles'11 platform this year uses fine layering of people. In addition to the full reduction promotion activities, it also promotes simple promotional means such as official direct drop and single item reduction, in order to meet the different shopping needs of different consumers. reduce the shopping burden and input of users, so that users no longer fall into complex calculations or time-consuming to make orders, creating a more relaxed and pleasant shopping atmosphere.

Figure 1-5 double 11 mainstream e-commerce platform simplifies promotion rules

Simplifying promotion rules brings positive significance and value to the platform, brands and buyers. First of all, for the platform, the first benefit of simplified promotion is to enhance the user experience, through simple and clear promotion rules, reduce users' confusion and confusion in the shopping process, so as to improve their shopping experience. Secondly, simplifying the promotion rules also reduces the maintenance cost of the platform. Because the more complex promotion rules require more technical support and customer service, the burden of simplifying rules is reduced. Finally, the simplification of promotion helps to promote long-term user loyalty and cultivate the mind of users, because users are more likely to trust and understand platforms with simple promotion methods.

For merchants, simplifying promotion rules first lowers the threshold for merchants to participate, and it is easier for merchants to participate as the activity process becomes simpler. Second, merchants can get global traffic subsidies through simplified promotions, and the platform will provide traffic subsidies in promotional simplification activities to increase brand exposure. Third, simple promotion rules help to encourage users to place orders, because it is easier for users to understand simple rules, thus effectively improving the conversion rate of the brand.

For consumers, simplifying promotion rules not only meets the needs of diversified shopping methods, but also saves time and costs, and can buy cheaper goods through superimposed discounts.

Chapter 2 user analysis of double 11 e-commerce platform

During the great promotion period, the daily new users of the e-commerce platform declined compared with the same period last year, and the e-commerce industry entered the stock competition.

During the promotion period this year, the number of daily new users of the e-commerce platform declined significantly compared with the same period in 2022, but it can also be seen from this year's platform low-price strategy that in the era when traffic gradually peaked, the competition for stock users is particularly important. From the average number of daily active users promoted by each App, Taobao, Douyin, JD.com and Xiao Hongshu all increased to varying degrees compared with the same period last year, of which Xiaohongshu increased the most, with 9.2%.

Figure 2-1 comparison of daily new users of mainstream e-commerce platforms in 2022 and 2023

Figure 2-2 comparison of average daily active users of mainstream e-commerce between 2022 and 2023 (100 million)

There are three user peaks in the period of pre-sale, good start and high tide, and the start at 8 p.m. Makes the traffic break out one day earlier.

From the big promotion trend, pre-sale opening, good start, and peak period, e-commerce App ushered in the peak of traffic and users, of which Taobao, JD.com, pinduoduo is particularly significant. In addition, from the percentage of active users in different periods, the strategy of starting late at 8 makes the outbreak date obviously ahead of traffic.

Figure 2-3 trend of daily active users of each mobile shopping App during Singles' Day

Figure 2-4 during the double 11 period, the average percentage of App active users in different periods of time had a good start for two days.

During the outbreak period, the stickiness of users increased significantly, and the coincidence rate of major e-commerce platforms was as high as 50%.

From the daily per capita startup times of each platform in the great promotion period, we can see that the user startup times increased significantly in the first two days and the peak period, and the user stickiness showed an obvious upward trend on the day of great promotion outbreak. In terms of the coincidence degree of users of the three major e-commerce platforms, the user coincidence rate is as high as more than 50%. In the future, how to improve the stickiness of this part of users to the platform is an urgent problem for e-commerce enterprises.

Figure 2-5 the per capita start-up times of the main participating platforms per day during the double 11 period (times)

Figure 2-6 Analysis of user coincidence rate of mainstream e-commerce platforms in October 2023

New first-tier and second-tier cities have greatly promoted the increase in the proportion of users, and the number of new users still shows an obvious downward trend.

From the city line level of active users during the promotion period, the new first-tier cities, second-tier and third-tier cities are the main shopping force, while the proportion of users of new first-tier cities and second-tier cities in each platform has increased. However, among the new users, the proportion of third-and fourth-line and below urban users is significantly higher than that of active users, which shows that the trend of e-commerce platform to expand new users to the sinking market is still very obvious.

Figure 2-7 Analysis of user portraits of mainstream e-commerce platforms during the promotion period

Chapter 3: the Development trend of Singles' Day

Trend 1: low prices set off a battle for users, the ecology of a virtuous circle or the key to maintaining low-price competitiveness

With the disappearance of the traffic dividend, users return to rationality, making low prices become the killer mace of various platforms to compete for users, and pay more and more attention to the promotion of price power. However, at present, there are many malignant phenomena in the low price of e-commerce platform. In the future, the platform needs to be optimized in the aspects of reducing cost and increasing efficiency, consumption stratification, strengthening supervision and so on, in order to establish a win-win environment and maintain long-term price competitiveness.

At present, the low-price trap of e-commerce platform is a problem in many aspects. First of all, some platforms pursue low prices too much, which leads to insufficient supervision of merchants' qualifications and product quality standards, resulting in the phenomenon of low quality and low prices. This leads to the proliferation of fake and shoddy products and seriously affects the overall quality level of the market. In order to solve this problem, the direction of optimization includes guiding consumer stratification, improving the quality-to-price ratio of products, platforms and businesses need to provide accurate product supply according to different levels of consumer demand, and at the same time strengthen product quality control to prevent the proliferation of low-quality products.

Secondly, some platforms and businesses reduce the allocation in the after-sales service, performance efficiency and other links, in order to reduce costs and obtain more room for price reduction, which constitutes the trap of low price reduction. This practice harms the shopping experience of consumers and reduces the user loyalty of platforms and brands. The ways to solve this problem include reducing the full-link cost of shopping through technological innovation and model innovation, paying attention to differentiated supply chain and goods supply, and reducing unnecessary price competition.

Finally, there is the problem of exclusive low price, that is, head platform, VJ and talent get exclusive low price through the advantage of traffic, and charge high intermediate fees at the same time. This disrupts the normal competition between channels and makes consumers lose their real low prices. In order to solve this problem, it is necessary to strengthen the supervision mechanism, strengthen the supervision of vicious competition, optimize the cooperation mechanism among platforms, institutions and businesses, and establish a healthy and standardized charging model. at the same time, strengthen the supervision of data fraud and content non-standard behavior.

In the future, it is necessary to form a win-win healthy ecological platform for platforms, businesses, institutions and consumers. This will help to maintain sustained price competitiveness, enable businesses and institutions to develop in an orderly and healthy manner, and ensure that consumers can have a continuous "high quality and high price" experience.

Trend 2: the change of user demand promotes the upgrading of platform and brand, and quality becomes the development trend of online shopping.

Consumption returns to rationality, the needs of users are becoming more and more refined, and the demand for shopping convenience, security and personalization increases, which promotes the upgrading of all aspects of the platform and brand. The rich supply of high quality and low price of the platform and the secure and convenient service guarantee, coupled with the return of brand value and product innovation on the brand side, are promoting the continuous development of e-commerce shopping field in the direction of quality.

The needs of users have undergone profound changes, reflected in many aspects. First of all, consumers tend to return to rationality and pay more attention to whether the product meets the demand and whether the price is reasonable. In addition, the fluency and convenience of the shopping process has become the focus of attention, the pursuit of low decision-making costs. Followed by a high degree of attention to the protection of personal information, users pay attention to the privacy and security of data. The attention to the product itself has also been improved, and users pursue quality, personalized and green goods. In addition, users pay more attention to the value of the commodity brand, and the brand story and value become an important factor to consider.

These changes in user demand have had a great impact on e-commerce platforms and brands, forcing them to reform and upgrade. In terms of platform upgrade, the first thing is price-driven, low price has become the core factor to attract users, and the platform needs to improve its price competitiveness. Synchronously, goods are stratified according to factors such as demand, competition and user behavior, to provide cost-effective goods for different groups of people, and to form a sustainable low-price ecology. In addition, the platform also needs to optimize the supply structure and quality of goods, expand categories and brands, and provide quality and differentiated goods. In terms of services, starting from the core pain points of users' shopping, we provide a number of security services, such as genuine goods protection, price protection, expensive compensation, privacy protection, spot delivery, quick refund and so on, in order to ensure users' sense of security in shopping. Logistics also needs fast transportation, real-time traceability and privacy protection to enhance user experience.

Brand upgrades are also important. Brand needs to return, brand power has once again become the core of attracting users, paying attention to the construction of brand image, vision and values, so that consumers can better understand and understand the brand and establish emotional ties. At the same time, brands need to carry out product innovation and continue to launch competitive and differentiated products. In terms of commodity quality, with the increase in the number of expert users, brands need to have higher quality requirements and quality supervision to ensure that the sold goods can make consumers feel at ease to buy and use. In addition, the ability of private domain operation has become critical, and brands need to establish long-term and close two-way relations with users in order to better understand and meet the needs of users. These upgrading directions will help the platform and brands to better adapt to and meet the changing needs of users, and promote the whole e-commerce ecology to be more healthy and sustainable.

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