This paper analyzes the logic of the pop-up, the advantages of taoxiaopu and the future development prospects.
The newcomers to taoxiaopu usually ask: how can taoxiaopu compare with other platforms when there are so few products in taoxiaopu?
1、 Cognitive errors
First of all, there are not so few goods in taoxiaopu. There are tens of thousands of them, which is far more than most platforms. Of course, compared with Taobao and Jingdong, it’s not in the same order of magnitude. Secondly, there is a cognitive misunderstanding.
In the traditional e-commerce mode, people are looking for goods – that is to say, if you want to buy anything, go to a platform like Taobao / Jingdong to search for keywords, and there will be many options on the page.
At this time, you need to compare brand, price, quality, style and other dimensions before you choose to place an order. In this case, of course, the more goods you can choose, the better.
But social e-commerce is totally different from logic. It’s about finding people for goods. For example, I have one or several super cost-effective products for porridge, which you can share with you. If you think this product is good, you may place an order directly, and omit many selection behaviors in the middle.
Like some wechat products, there may be only a few kinds of products, but they can also sell hundreds of millions of sales in a year. So in the mode of social e-commerce, quantity is not a problem, high cost-effective pop money is the core, so you see Li Jiaqi can sell more than 10000 Lipsticks in a few minutes.
2、 The logic of burst payment
So how to make a hit?
Burst money is similar to group buying or cost-effective group buying, which is to reduce the cost of taking goods through volume, so as to achieve a win-win situation between the seller and the buyer. In fact, no matter what form of sales, in the final analysis is the supply channel and sales mode.
From the supply side, burst money needs to ensure the quality of the brand, the price is still low, good quality and low price can have a broad mass base; from the sales side, burst money needs a wide range of influence as the premise, you have to convey the information to consumers in a timely and accurate manner.
And influence can be divided into personal influence and team influence. Like a million fans of the Internet, his influence can reach tens of millions of people. As soon as we start broadcasting, we all know that there is such a high cost-effective thing, and then the sales will go up, and the pop money will appear;
For the team, the influence of each person may be limited to a few hundred people in the circle of friends, but what if there are hundreds of thousands of people and millions of people pushing a product at the same time? The influence can also reach tens of millions. If tens of millions of people push it, the influence will be even greater. Suddenly, it’s like a night of spring breeze, and the city is full of golden armour.
Maybe for a product, the annual sales volume is only 1 billion in normal times, and it’s 500 million in a few days through the way of money explosion. How can an enterprise refuse.
The increase of sales volume will enhance the bargaining power of the platform on the supply side and lower the purchase price, thus bringing more benefits to consumers. What matches with it is the larger sales volume, which is a virtuous circle, we call it the “burst model”.
At this time, a question arises: why do suppliers supply you with good quality products at low prices?
You may say that the money blasting mode just mentioned is mutually beneficial and win-win cooperation.
But think about it carefully. The pain is in the start-up stage. The early scale of influence determines the speed of the spread of goods. The amount of influence is not enough, and the amount of money is not enough. So it’s a dead cycle of chicken first or egg first.
Enterprises do not do charity, especially brand enterprises, will not pay for your ideas.
If it’s a small platform and you can get the goods, it may be so.
The supplier happens to have a batch of tail goods or goods in stock, which can be returned to you in time, saving the tedious process of supply to the large platform. The account period of several months, of course, will be more complicated.
So we usually see that the supply of pop-up products on small platforms is small, and the supply is unstable, and the coverage of influence may be tens of thousands to hundreds of thousands of people, or even less.
If it was Ali, it would be totally different. Imagine a small platform’s purchase leader and Ali’s purchase leader go to an enterprise to negotiate. If you are the enterprise’s boss, how to make a decision?
Probably lead the boss to receive Ali, and the person in charge of the following departments will receive the small platform. If you go to a city to support local characteristic industries, it may be the mayor who receives Ali, but the main government officials may not see the small platform.
Although taoxiaopu is still in the process of development, everyone knows Ali’s size and influence. First of all, I believe you have this ability. In addition, taoxiaopu is Ali’s own son. With this endorsement, it has more advantages. How does this advantage manifest and operate? We’ll give it a special lesson.
It should be noted that it is not good to have too many commodities in the early stage. If the quantity of goods is limited, then the types of goods pushed by the shopkeeper will be relatively synchronous, which can guarantee the quantity of the suppliers in the early stage. As has been said before, the variety of goods is not the core element of social e-commerce.
So it’s not difficult to choose hundreds of hundreds of millions of goods from Ali’s supply chain as the hot money. Moreover, this kind of goods can be supplied continuously and in large quantities.
What’s more, Alibaba’s accumulation in the supply chain over the years is far from what we can imagine. For example, Alibaba bought the cross-border e-commerce platform of Netease, Netease koala, half a year ago. Now it seems that the sword has some meaning.
From the sales side, it’s not only the shopkeeper who brings the goods, but also many distribution platforms, video platforms and network celebrities. It’s beyond your imagination to cooperate with the media matrix that nobody can reach.
For example, Taobao yesterday signed a contract with Liu Tao to bring goods, and the first show brought 148 million goods, surpassing Li Jiaqi and directly chasing after Weiya, the first sister of Taobao. I believe that such things will become more and more common in the future.
A strong supply chain, together with flow stars and millions of ordinary promoters, will promote the market share of taoxiaopu naturally higher and higher.
3、 What are the advantages of taoxiaopu’s late admission?
Now some keen friends may ask, taoxiaopu can rely on Alibaba’s brand endorsement to solve the problem of commodity supply, but what about the influential people? Taoxiaopu enters so late, what’s the advantage now?
1) From the perspective of brand impression, Ali is still the first brother of e-commerce. When thinking of shopping, universal Taobao is the first choice.
Just like thinking of search, baidu is the first choice; thinking of social networking, Tencent is the first choice. As long as the brand image is widespread, the mass base for promoting taoxiaopu will exist, because Alibaba’s e-commerce in any form is normal and acceptable to all.
2) Why do you think taoxiaopu’s mode is not much different from other platforms because of its late admission, so it has no competitiveness?
This is because people subconsciously think that taoxiaopu is driven by the concept of “making money”. When the social e-commerce model came out, everyone agreed that the first thing to do was to eat meat, and when the soup was too slow, many people swarmed in.
Of course, all the major and medium-sized platforms, because they can’t come up with a better plan, will also comply with the public opinion and give a high return, so as to achieve fast horse racing and enclosure. If you circle, it’s hard for other platforms to rob people without paying a higher cost.
However, this way of stimulating by high returns is not sustainable, and will eventually return to the supply chain itself. For a detailed explanation of this, please refer to another article I wrote, “taking taoxiaopu, Fenxiang and pinduoduo as examples, in-depth analysis of social e-commerce gold digging Road (I)”.
Because of the prevalence of this mode, people mistakenly think that social e-commerce is like this, so there is the illusion that taoxiaopu is late.
In fact, as just mentioned, the essence of social e-commerce platform lies in the competition of supply chain. No matter what moves and routines you use in the initial stage, your landing point will definitely return to the supply chain and back to the sales. At the beginning of the establishment of small and medium-sized platforms, there is no advantage of supply chain, so we can only choose to lure them.
But taoxiaopu is not the same, because relying on Alibaba, the Big Mac, chose the “supply chain driven” mode from the beginning, and the right rich second generation.
A few days ago, I did a research on beauty products, and selected 20 beauty products commonly used by girls in taoxiaopu, all of which are directly supplied overseas.
After the statistics, we found that the price of these products is about 60% off of tmall flagship store, and the price of a single product is 20-60 yuan cheaper than that of a purchasing agent, which is basically the same as the price of some small and medium-sized platforms.
You can also search relevant products by yourself to verify the authenticity of what I said. Moreover, the pricing strategy of big brands is relatively stable, which is beyond the reach of small platforms and Taoists.
When the platform is driven by the supply chain, its development mode and track are totally different.
The first group of people, simply because they chose to believe in Ali’s strength, joined when there was nothing; then by attracting people with the same vision and slowly building up the membership scale together, they had the millions of shopkeepers who are now taoxiaopu. When most people only see the lack of Taos, these millions choose to believe in the future. Of course, you will be one of them after you join.
Slowly, the number of people increased. Taoxiaopu provided a small number of good and cheap goods, and gradually expanded its influence in the circle of friends through this million people.
This stage is driven by “human resources”. In addition to a few people with higher cognition can understand the potential of the development mode of taoxiaopu, most people can only experience and perceive taoxiaopu through commodities. But there must be some people who, after many experiences, have also turned into taoxiaopu’s shopkeeper.
This process will be relatively slow, so many people will feel uncomfortable when developing the team, without the pleasure of running in a horse enclosure. However, with the increase of the number of shopkeepers, they will reach a critical point, and quantitative change will produce qualitative change.
From reliable sources, we know that the growth rate of shopkeepers in taoxiaopu is about 2% every day. Some people may say that when the critical point comes, I will do a small shop to save a lot of time cost.
Theoretically, it is possible, but it is difficult to predict exactly when the critical point will appear. Even if you are lucky enough to catch this point, because the development after the critical point changes exponentially, the accumulated people and teams develop faster, you do not necessarily catch the bonus.
As more and more platform managers cooperate with channel publicity, the power of “burst mode” will appear.
What needs to be added is: unlike the popularity of small platforms, Alibaba has the largest cloud computing platform in the world; through the modeling of consumer behavior and the push of big data, consumers will have a better experience of purchasing goods.
With the improvement of the supply chain, taoxiaopu will enter into “platform driven” from “human driven”. I think that’s the time when taoxiaopu will grow explosively.
One of the more luxurious things is that taoxiaopu has launched the online price comparison system. This system is not for home use, but for the display of goods in the background.
This price comparison system has three dimensions:
The quality, reputation and popularity of the product in the whole network can only be displayed in the front end if it meets the requirements;
The real-time floating price of the commodity, especially with major competitors