CHENGDU,
China, Nov. 22, 2023 /PRNewswire/ -- About us:
Aurora Mobile (NASDAQ: JG) established in 2011, is a leading
customer engagement and marketing technology service provider in
China. Its business includes
notification services, marketing growth, development tools, and
data products. As its sub-brand, MoonFox Data is a leading expert
in data insights and analysis services across all scenarios, aiming
to help companies gain market insights and empower precise
decision-making.
Abstract: Double 11 returns to its roots - igniting consumption
excitement with an emphasis on low prices
Chapter 1: E-commerce platforms' paces and
main strategies during Double 11
As the 2023 Double 11 shopping festival draws to a close, major
e-commerce platforms are reveling in their successes. This year's
promotions followed the established trend of previous years by
extending the duration to provide consumers with ample shopping
time. Unlike the previous two-round pre-sale approach, this year's
focus shifted to instant sales, with platforms like JD.com and
Douyin introducing immediate delivery, eliminating waiting time.
Furthermore, platforms simplified promotional rules to provide a
more convenient shopping experience, cater to diverse user needs,
and enhance overall comfort.
The 2023 Double 11 also witnessed a return to its roots by
emphasizing low prices to capture consumers' attention and
stimulate their purchasing desires, highlighting the price
competitiveness of high-quality products. This shift reflects
e-commerce platforms' commitment to prioritizing user satisfaction
and continuously enhancing services and products. The dual focus on
user experience and price competitiveness injected vitality into
this year's Double 11 shopping spree.
Figure 1-2 2023 Main strategies employed by
e-commerce platforms
Platforms
|
Livestreaming
rooms
|
Brands
|
Brands official
discount
|
Super category
day
|
KOLs
livestreaming
rooms
|
Millions of
products
|
Brand
carnival
|
Alliance
program
|
10-billion-yuan
subsidy day
|
Generous
coupons and
red packets
|
Livestreaming
room red
packets
|
Livestreaming
task contests
|
10,000 stores
party
|
Recharging
shopping credits
|
Pre-sale with
deposits
|
Snapping up
coupons at full
hours
|
Super
livestreaming
room
|
Selected products
livestreaming
room
|
Members
challenge
programs
|
Brands' subsidy
for new
customers
|
Threshold-based
cross-store
discounts
|
Time-limited
discount
|
Red packets
issued at full
hours
|
Red packets for
link sharing
|
Store ranking
contest
|
Brands' award
for new
customer
accumulation
|
Emphasis on low price: Low-price mechanisms, low-price fields, and
service guarantees help platforms create a mindset of
affordability.
During this year's Double 11, major e-commerce platforms have
employed a low-price strategy, using methods such as "low prices"
and "price reductions" as primary methods to attract traffic and
manage products. This strategy includes a range of low-priced
fields, such as the 10-billion-yuan
subsidy, competitive pricing on Taobao, and cost-effective products
with free delivery. It also encompasses price protection throughout
the promotional period and compensation in the event of lower
prices among other service guarantees. These measures are aimed at
ensuring that consumers consistently perceive the platforms'
commitment to affordability, thereby establishing a benchmark for
low prices and effectively igniting consumers' enthusiasm for
shopping.
The low-priced mechanisms employed this year can be broadly
categorized into three types. First, platforms focused on
increasing the visibility of low-priced products by allocating more
traffic to them, which emerged as a main trend. Quantified
indicators were established to measure products' price
competitiveness, such as Taobao's five-star price power index and
JD.com's price star ranking. Products with competitive prices
received more traffic through specific award rules. Second, price
control emerged as a key measure during this year's Double 11
festival. Platforms implemented stricter inspections and control
over promotional prices. For example, Taobao required promotional
prices to be at most 90% of the product's recent price to qualify
for promotional activities, while JD.com utilized dual-verification
methods, namely red-color pricing and actual paid prices, to
guarantee low prices. Third, platforms imposed stricter controls
over the practice of "increasing price at first and then lowering
it". Taobao not only tightened regulations on pricing practices but
also alerted sellers to any discrepancies between the promotional
price and the final paid price. Additionally, sellers could be
disqualified from participating in platform promotional
activities.
When it comes to the low-price field, there are five primary
aspects to consider. First, there are distinct low-price benchmarks
for various types of offers, such as the lowest price across the
entire Internet, flash sales, the lowest price in the same
category, the lowest price in 90 days, and daily low prices
throughout Double 11. Second, there were specially designed
best-price channels, such as Taobao Good Price Channel and Taobao
Juhuasuan. Third, both JD.com and Taobao introduced the
10 billion yuan subsidy program.
Fourth, delivery fee coverage for low-priced items was provided.
For example, JD.com's coverage for low-priced products and Taobao's
coverage for products priced as low as 1
yuan. Finally, brands issued official discounts on their
products, including direct discounts for individual items. All
these measures contributed to the diverse and comprehensive nature
of the low-price scenario, ensuring it meets the varied needs of
consumers during their shopping experience.
Figure 1-3 Measures for low price guarantee
Double 11
price
guarantees
|
Taobao customer
service price guarantee center
- Automatic price
guarantee: Consumers can initiate a price guarantee and get
compensation for all products with a single click if the products'
price is reduced.
- Manual price
guarantee: Consumers can manually select those products they
want
to get a refund for lower prices.
|
JD.com one-click
price guarantee
- For JD.com, during
Double 11, 800 million products are covered by the price
guarantee for the whole promotional period.
- Consumers can enjoy
the "one-click price guarantee" by searching "price
guarantee" on the homepage.
|
Guaranteed
refund for
lower prices
|
Taobao provides
refund guarantees via its 10-billion-yuan subsidy: When
purchasing any product with the "refund guaranteed for lower
prices" mark, a
consumer can get corresponding compensation if he or she finds
within 24 hours that
the same product is sold at a lower price within the channel or on
other specific
platforms by providing effective proofs of purchase.
|
JD.com guarantees
double compensation for lower prices via its 10-billion-yuan
subsidy: After purchasing any product with such service, a
consumer can apply within
24 hours after purchase for compensation of two times the price
difference if he or she
finds the purchased product is sold at lower prices on other
specific platforms
(including JD.com).
|
Livestreaming merchants: Platforms have implemented targeted
supportive measures to boost the momentum of livestreaming rooms
during the festival.
During the Double 11 shopping festival, the realm of
livestreaming merchants remains a core area for competition among
major platforms. To better support livestreaming merchants,
platforms have formulated multi-level supportive policies, offered
comprehensive operational tools, and introduced targeted subsidies.
These initiatives are designed to facilitate both merchants and Key
Opinion Leaders (KOLs) in swiftly establishing a Double 11
streaming scenario, stimulating heightened livestreaming activity,
and harnessing the influence of KOLs to promote competitive
products and ultimately achieve impressive sales records.
Significantly, Taobao Livestreaming has devised targeted
supportive plans tailored for various types of livestreaming hosts
within the Taobao ecosystem. The objective is to accelerate order
fulfillment during the festival period. Furthermore, the platform
has initiated the Double 11 joint livestreaming program,
accompanied by 100 million yuan in
red packets and 10 million in traffic support. This program is
strategically crafted to bolster the momentum of KOLs and
accelerate sales growth.
JD.com has consistently heightened its efforts to offer
subsidies. It initiated a merchant ranking contest and promoted
alternative livestreaming, granting merchants the opportunity to
tap into 100 billion traffic and a 10-million-yuan cash subsidy. By introducing
three themed livestreaming days - President Livestreaming Day,
Super Livestreaming Day, and Industry Livestreaming Day - JD.com
successfully collaborated with merchants to create trending items
across all categories. During the promotional period, JD.com
capitalized on trending topics by launching the "JD Procurement
Livestreaming Room". The company's procurement team appeared in the
livestreaming room, showcasing selected products with the lowest
prices on the Internet, capturing increasingly higher-grade
attention.
Douyin livestreaming employed various methods to direct traffic
to merchants, leading to explosive sales results. Notably, Douyin
launched the 1 Million Product Program, offering platform traffic
and exposure resources and aligning users with products to
cultivate trending items. KOL livestreaming rooms concentrated on
channeling resources to first-tier KOLs, facilitating rapid sales
growth by harnessing the platform's momentum. Furthermore, the
Selected Products Livestreaming Room spotlighted high-quality
products and generous subsidies, empowering merchants to achieve
their sales targets.
RED has implemented a three-tier supportive policy structure
designed to assist merchants at different stages of development,
facilitating their growth through comprehensive support. Emerging
merchants can participate in the "Livestreaming Starter Plan",
which offers 28 days of support inclusive of over 30,000 instances
of homepage recommendation exposure. For more established
merchants, the "Livestreaming Upgrading Plan" provides access to
exclusive million-level traffic and substantial boosts in exposure
once they achieve their initial sales targets. Moreover, in support
of promotional merchants, Douyin introduced the "Livestreaming
Promotion Boost" plan, which promises a 50% refund of promotional
fees for merchants participating in the "Livestreaming Marketing"
promotion from October 10 to November
12. These measures collectively furnished merchants with
comprehensive support, guiding them through different stages of
development to achieve improved performance.
User operation: elevating membership benefits to broaden the
core user base and implementing full-cycle membership management to
facilitate the growth of brand users
Throughout this year's Double 11 event, all platforms
intensified efforts to enhance member loyalty and expand the core
user base by elevating membership benefits. Furthermore, they
extended full-cycle user management support to brands to reinforce
brand user growth. This encompassed strategies for accumulating
potential users, acquiring new ones, re-engaging and transitioning
users, and incentivizing repeat purchases.
Figure 1-4 Solutions for brands' user base
expansion
|
Tmall, Tmall
|
JD.com
|
Early-stage
accumulation
of potential
consumers
Acquiring
new
consumers
|
U trial use
|
Paid trial use; giving
out samples for
trial use
|
Brands' subsidy for new
users
|
New user
coupon
|
Grab a recommended
item
|
Grad a recommended item
when
paying
|
Member trial
use
|
Points
redemption
|
Customer
acquisition
via
promotional
activities
Recall X
Transition
|
Brands' subsidy for new
users
|
Brands' coupons for
first-time
purchase
|
Membership operation
and benefits:
large amount coupons for members,
exclusive prices for members
|
Membership discounts:
exclusive
coupons for members, threshold-based
discounts for members
|
User reach and recall:
advertising,
group chat, customer service
messages, text messages, etc.
|
Quantified intervention
and recall: text
messages, PUSHs in-site engagement
points
|
Repurchase
upgrading
Increased
customer
unit price &
purchase
frequency
|
Brand deposit
card
|
Member deposit
card
|
Repurchase
coupon
|
User repurchase
coupon
|
Store private domain
measures
|
Chart lingering
coupon
|
Multi-channel user
recall
|
Store private domain
users' recall, etc.
|
During this year's Double 11, platforms elevated membership
benefits, aiming to enhance member loyalty through a more
comprehensive array of service guarantees and an elevated shopping
experience. Notably, the Tmall 88VIP membership underwent an
upgrade to introduce three distinct packages: the Lifestyle Card,
Shopping Card, and King Card.
Specifically, the Shopping Card comes with three new benefits for
online shopping to improve the consumer experience and provide
guarantees: ① a 5% discount on top of other offers;
② daily red packets; ③ delivery fee coverage for returned
purchases; and ④ after-sales guarantees. Additionally, Tmall
issued a substantial number of large-value coupons totaling
20 billion yuan for 88VIP accounts,
which could be cumulatively stacked with other offers. These
coupons were released in two phases: ① Grand Opening:
580 yuan off for every purchase of
7,000 yuan; 280 yuan off for every purchase of 3,500 yuan; ② Highlight Period: 400 yuan off for every purchase of 5,000 yuan and 120
yuan off for every purchase of 1,500
yuan.
JD Plus membership benefits received a significant upgrade ahead
of the Double 11: ① The previous 5 free delivery coupons per
month were upgraded to unlimited free delivery; ② The previous
10 times points accretion was upgraded to a maximum of 3% shopping
amount rebate; ③ JD International/JD Pets and millions of
products from big brands enjoy a 5% discount on top of other
offers; ④ Members can get a free medical checkup once a year.
During the Double 11, JD Plus members can enjoy a 5% discount on
top of other offers, along with exclusive large-value coupons.
Specifically, these coupons included a discount of 600 yuan for every purchase of 6,000 yuan; 400
yuan off for every purchase of 5,000
yuan; 300 yuan off for every
purchase of 3,000 yuan; and
120 yuan off for every purchase of
1,500 yuan. On November 8, Plusday, there is an additional
discount of 80 yuan for every
purchase of 1,000 yuan and
40 yuan off for every purchase of
500 yuan.
Simplified promotions: simplifying promotional rules and
enhancing the shopping experience with direct discounts on
individual products
During this year's Double 11, platforms placed a high priority
on enhancing the users' shopping experience. They revamped user
categorization strategies by implementing measures such as
discounts after reaching specific thresholds. Additionally, they
utilized straightforward methods like brand official discounts and
direct discounts on individual items. These actions were aimed at
fulfilling the diverse shopping needs of consumers while minimizing
the burden and investment required for shopping. Consequently,
users were freed from complex calculations and the time-consuming
effort of selecting additional items to qualify for specific
discounts. This led to a more relaxed and enjoyable shopping
atmosphere.
Figure 1-5 Main platforms have simplified
promotional rules during this year's Double 11
Taobao,
Tmall
|
JD.com
|
PDD
|
Douyin
|
Brand official
discount
|
Simplified
pre-sales
promotion
|
10-billion-yuan
subsidy and direct
discount on single
items
|
Brands official
discount
|
Direct discount on
single items
|
Immediately
available products
|
Stackable brand
official subsidy
|
Direct discount on
a
single item from
15%
|
Taobao
livestreaming lower
price in a flash
|
Deposit refund
available at any time
|
/
|
Stackable 100-
million-yuan
consumption
coupons
|
Simplified promotional rules carry positive implications and value
for platforms, brands, and consumers. For the platforms, the
foremost advantage of simplified promotional rules lies in the
improved user experience, mitigating confusion and bewilderment
that users may encounter during their shopping journey. The second
benefit entails a decrease in platform maintenance costs.
Simplified rules diminish the requirement for extensive technical
support and customer service, thereby lowering operational
expenses. The third benefit is the cultivation of long-term user
loyalty and trust, as users are more likely to trust and engage
with platforms with straightforward promotional methods.
For merchants, the simplification of promotional rules has
lowered the participation threshold, making it easier for them to
get involved in the festival. Moreover, merchants can leverage the
whole-domain traffic subsidies provided by platforms for simplified
promotions, leading to heightened brand exposure. Third, simplified
promotional rules are more accessible and easier to understand,
encouraging users to place orders and effectively boosting the
conversion rates for brands.
For consumers, simplified promotional rules not only cater to
their diverse shopping styles but also save time and enable them to
purchase discounted products by stacking offers.
Chapter 2: User Analysis of Double 11
E-commerce Platforms
During the promotion period, the daily number of new users of
e-commerce platforms decreased year on year, indicating that the
e-commerce industry has entered a state of intense stock
competition.
During this year's promotion period, the daily number of new
users of e-commerce platforms saw a significant decline compared to
2022. However, it is evident from the low-price strategies adopted
by various platforms this year that, in an era of gradually peaking
traffic, the competition for existing users has become particularly
crucial. When examining the average daily active users of each app
during the promotion period, Taobao, Douyin, JD.com, and RED all
demonstrated varying degrees of growth compared to the previous
year. Notably, RED exhibited the most robust growth, registering a
9.2% increase.
Figure 2-1: Comparison of daily new users
(10k) of mainstream e-commerce
platforms in 2022 and 2023
Platform
|
2023
|
2022
|
Year-on-year
comparison
|
Taobao
|
2400.1
|
4455.1
|
-46.1 %
|
Douyin
|
2214.3
|
3379.4
|
-34.5 %
|
PDD
|
2067.8
|
6892.4
|
-70.0 %
|
JD.com
|
1425.0
|
3168.3
|
-55.0 %
|
RED
|
1301.5
|
2306.8
|
-43.6 %
|
Kuaishou
|
757.6
|
1538.9
|
-50.8 %
|
Data dates: 10.31-11.11
(Year 2022 and 2023)
Data source: MoonFox iApp
|
Figure 2-2: Comparison of average daily active users (100m) of mainstream e-commerce platforms in 2022
and 2023
Platform
|
2023
|
2022
|
Year-on-year
comparison
|
Taobao
|
4.4
|
4.2
|
4.0 %
|
Douyin
|
4.0
|
3.9
|
1.9 %
|
PDD
|
2.4
|
2.5
|
-5.7 %
|
JD.com
|
1.3
|
1.2
|
6.2 %
|
RED
|
1.3
|
1.3
|
-3.5 %
|
Kuaishou
|
1.0
|
0.9
|
9.2 %
|
Data dates: 10.31-11.11
(Year 2022 and 2023)
Data source: MoonFox iApp
|
The pre-sale start, grand opening, and highlight period witnessed
three waves of user peaks. The commencement at 8 p.m.
facilitated a one-day advance in traffic surges.
Examining the daily trend during the promotional period,
including the pre-sale start, grand opening, and highlight period,
e-commerce apps experienced a surge in both traffic and users.
Specifically, Taobao, JD.com, and PDD exhibited particularly
significant increases. In addition, looking at the proportion of
active users in each period, the strategy of starting at
8 p.m. has led to a noticeable
forward shift in traffic during the peak date.
Figure 2-3: Daily active user trend (100m) of mobile shopping apps during Double
11
Date
|
Taobao
|
PDD
|
JD
|
Douyin
|
RED
|
Kuaishou
|
2023/11/11
|
4.68
|
2.79
|
1.58
|
3.97
|
1.03
|
1.29
|
2023/11/10
|
4.49
|
2.53
|
1.40
|
4.03
|
1.02
|
1.25
|
2023/11/9
|
4.36
|
2.34
|
1.33
|
4.05
|
1.01
|
1.26
|
2023/11/8
|
4.35
|
2.34
|
1.34
|
3.99
|
1.00
|
1.25
|
2023/11/7
|
4.33
|
2.30
|
1.33
|
3.99
|
1.01
|
1.25
|
2023/11/6
|
4.34
|
2.27
|
1.32
|
3.98
|
0.99
|
1.26
|
2023/11/5
|
4.21
|
2.47
|
1.10
|
4.03
|
1.05
|
1.31
|
2023/11/4
|
4.19
|
2.42
|
1.10
|
3.98
|
1.05
|
1.31
|
2023/11/3
|
4.43
|
2.30
|
1.11
|
3.93
|
1.03
|
1.26
|
2023/11/2
|
4.45
|
2.25
|
1.17
|
3.93
|
1.00
|
1.25
|
2023/11/1
|
4.47
|
2.25
|
1.38
|
3.90
|
1.01
|
1.25
|
2023/10/31
|
4.48
|
2.24
|
1.32
|
4.05
|
0.99
|
1.26
|
2023/10/30
|
4.24
|
2.22
|
1.19
|
3.94
|
0.99
|
1.26
|
2023/10/29
|
4.18
|
2.36
|
1.13
|
4.00
|
1.05
|
1.31
|
2023/10/28
|
4.17
|
2.38
|
1.09
|
3.99
|
1.04
|
1.31
|
2023/10/27
|
4.20
|
2.22
|
1.13
|
3.99
|
1.01
|
1.28
|
2023/10/26
|
4.35
|
2.23
|
1.14
|
4.04
|
1.01
|
1.27
|
2023/10/25
|
4.37
|
2.24
|
1.20
|
4.00
|
1.00
|
1.27
|
2023/10/24
|
4.42
|
2.22
|
1.37
|
3.97
|
1.00
|
1.26
|
2023/10/23
|
4.11
|
2.21
|
1.35
|
3.92
|
0.99
|
1.27
|
2023/10/22
|
4.05
|
2.36
|
0.93
|
4.00
|
1.05
|
1.32
|
2023/10/21
|
4.02
|
2.39
|
0.94
|
4.01
|
1.04
|
1.33
|
2023/10/20
|
4.05
|
2.29
|
0.95
|
4.02
|
1.01
|
1.29
|
Data collection period:
October 20 to November 11, 2023
Data source: MoonFox iApp
|
Figure 2-4: Average active user breakdown by period for two days of
grand opening during Double 11 (October 31
to November 1)
Time
|
0 a.m. on
October 31
|
1 a.m. on
October 31
|
2 a.m. on
October 31
|
3 a.m. on
October 31
|
4 a.m. on
October 31
|
5 a.m. on
October 31
|
6 a.m. on
October 31
|
7 a.m. on
October 31
|
%
|
1.3 %
|
0.6 %
|
0.3 %
|
0.2 %
|
0.3 %
|
0.6 %
|
1.2 %
|
1.7 %
|
Time
|
8 a.m. on
October 31
|
9 a.m. on
October 31
|
10 a.m. on
October 31
|
11 a.m. on
October 31
|
12:00 on
October 31
|
13:00 on
October 31
|
14:00 on
October 31
|
15:00 on
October 31
|
%
|
2.2 %
|
2.6 %
|
2.8 %
|
2.8 %
|
3.0 %
|
2.7 %
|
2.6 %
|
2.7 %
|
Time
|
16:00 on
October 31
|
17:00 on
October 31
|
18:00 on
October 31
|
19:00 on
October 31
|
20:00 on
October 31
|
21:00 on
October 31
|
22:00 on
October 31
|
23:00 on
October 31
|
%
|
2.7 %
|
2.8 %
|
2.7 %
|
3.0 %
|
3.2 %
|
3.2 %
|
2.8 %
|
2.0 %
|
Time
|
0 a.m. on
November 1
|
1 a.m. on
November 1
|
2 a.m. on
November 1
|
3 a.m. on
November 1
|
4 a.m. on
November 1
|
5 a.m. on
November 1
|
6 a.m. on
November 1
|
7 a.m. on
November 1
|
%
|
1.4 %
|
0.7 %
|
0.4 %
|
0.2 %
|
0.3 %
|
0.6 %
|
1.3 %
|
1.8 %
|
Time
|
8 a.m. on
November 1
|
9 a.m. on
November 1
|
10 a.m. on
November 1
|
11 a.m. on
November 1
|
12:00 on
November 1
|
13:00 on
November 1
|
14:00 on
November 1
|
15:00 on
November 1
|
%
|
2.3 %
|
2.7 %
|
2.9 %
|
2.9 %
|
3.0 %
|
2.7 %
|
2.6 %
|
2.7 %
|
Time
|
16:00 on
November 1
|
17:00 on
November 1
|
18:00 on
November 1
|
19:00 on
November 1
|
20:00 on
November 1
|
21:00 on
November 1
|
22:00 on
November 1
|
23:00 on
November 1
|
%
|
2.8 %
|
2.7 %
|
2.7 %
|
2.8 %
|
2.9 %
|
2.9 %
|
2.6 %
|
1.9 %
|
Data source: MoonFox
iApp
The breakdown of active users by period is calculated as the number
of active users in that specific period
divided by the total number of active users over the two days of
the grand opening. The average is calculated
for Taobao, JD.com, and PDD.
|
Throughout the promotion period, there was a significant increase
in user loyalty, and the overlap rate among major e-commerce
platforms exceeded 50%.
Looking at the number of daily starts per person on each
platform during the promotion period, it reveals a notable increase
in starts on the first two days of the grand opening and the
highlight day. This indicates a clear upward trend in user loyalty
during the promotion. Concerning the overlap rate among the three
major e-commerce platforms, it is evident that their user overlap
rates all surpass 50%. In the future, enhancing the user loyalty of
this segment poses an urgent consideration for e-commerce
enterprises.
Figure 2-5: Daily average number of starts per
capita(DASPC) during Double 11 period
Date
|
2023/11/11
|
2023/11/10
|
2023/11/9
|
2023/11/8
|
2023/11/7
|
2023/11/6
|
DASPC(times)
|
6.4
|
5.9
|
5.9
|
5.8
|
5.9
|
5.8
|
Date
|
2023/11/5
|
2023/11/4
|
2023/11/3
|
2023/11/2
|
2023/11/1
|
2023/10/31
|
DASPC(times)
|
5.7
|
5.7
|
5.9
|
5.9
|
6.4
|
6.4
|
Date
|
2023/10/30
|
2023/10/29
|
2023/10/28
|
2023/10/27
|
2023/10/26
|
2023/10/25
|
DASPC(times)
|
5.8
|
5.8
|
5.7
|
5.6
|
5.7
|
5.6
|
Date
|
2023/10/24
|
2023/10/23
|
2023/10/22
|
2023/10/21
|
2023/10/20
|
|
DASPC(times)
|
5.5
|
5.4
|
5.2
|
5.2
|
5.2
|
|
Data Dates: from
October 20 to November 11, 2023; Main participating platforms
include JD.com, Taobao, PDD, Douyin,
Kuaishou, and RED.
Data source: MoonFox iApp
|
The proportion of users participating in the promotion has
increased in new first-tier and second-tier cities, while the
proportion of new users still shows a clear downward trend.
From the perspective of city tiers of active users during the
promotional period, new first-tier cities and second-tier and
third-tier cities emerge as the primary shopping force.
Additionally, the proportion of users on each platform has
witnessed an increase in new first-tier and second-tier cities.
However, the proportion of new users in third-tier and below cities
is significantly higher than that of active users, indicating that
e-commerce platforms still show a clear trend of expanding new user
acquisition in lower-tier markets.
Chapter 3: Development Trends of Double 11
Shopping Festival
Trend 1: Low prices trigger competition for users; a virtuous
cycle of ecology may be the key to maintaining low price
competitiveness.
With the fading of traffic dividends and a shift towards more
rational user behavior, low prices have emerged as a crucial
competitive strategy for various platforms to attract users. During
promotional periods, they place increasing emphasis on enhancing
price competitiveness. Currently, however, low prices on e-commerce
platforms are manifest in many problematic forms. In the future,
platforms need to optimize in terms of cost reduction and
efficiency improvement, consumer segmentation, and strengthened
supervision, in order to establish a win-win positive ecology and
maintain long-term price competitiveness.
Currently, low-price traps on e-commerce platforms have resulted
in multiple issues. Firstly, some platforms overly prioritize low
prices, leading to insufficient supervision over the qualifications
and product quality standards of merchants, resulting in a
phenomenon where low quality is coupled with low prices. This
prevalence of shoddy goods and "three-no" products (no brand, no
quality certificate, no sales record) seriously affects the overall
quality level of the market. To solve this problem, optimal
solutions may include guided consumer stratification to improve
product value and offer precise product supply tailored to
different consumer needs. Simultaneously, reinforced product
quality control is necessary to curb the proliferation of
low-quality products.
Secondly, some platforms and merchants reduce costs by
compromising on after-sales service, performance efficiency, and
other links to gain greater pricing space, forming a low-price trap
characterized by diminished performance. Such practice adversely
affects consumers' shopping experiences, diminishing user loyalty
toward both platforms and brands. To address this issue, platforms
and merchants need to decrease the end-to-end cost of shopping
through technological and model innovation and focus on a
differentiated supply chain and goods supply strategy to minimize
unnecessary price competition.
Finally, there is the problem of exclusive low prices, wherein
leading platforms, KOLs and influencers, secure exclusive low
prices through traffic advantages while simultaneously charging
high intermediary fees. This disturbs the normal competition among
channels and deprives consumers of genuinely low prices. To solve
this problem, authorities need to strengthen regulatory mechanisms,
intensify supervision of vicious competition, optimize cooperation
mechanisms among platforms, institutions, and merchants, establish
healthy and standardized charging modes, and strengthen supervision
of data fraud and non-standard content.
In the future, it is essential to cultivate a healthy ecosystem
platform that fosters mutual benefits for platforms, merchants,
institutions, and consumers. This approach will aid in sustaining
price competitiveness, allowing merchants and institutions to
develop in an orderly and healthy manner. It ensures that consumers
can consistently enjoy a "high-quality and low-cost"
experience.
Trend 2: Evolving user needs propel the upgrading of
platforms and brands, with quality becoming the development trend
of online shopping
The rationalization of consumer demand and growing sophisticated
user needs have intensified the need for shopping convenience,
security, personalization, among others, prompting comprehensive
upgrading of platforms and brands across various dimensions. The
platforms' high-quality and cost-effective offerings and convenient
service guarantees coupled with brand-side emphasis on brand value
and product innovation, collectively propel the development of
e-commerce shopping towards a quality-oriented direction.
The user's needs have undergone profound changes, evident in
multiple aspects. Firstly, consumers tend to be more rational when
shopping and pay more attention to whether the product meets their
needs and whether the price is reasonable. In addition, the
smoothness and convenience of the shopping process have become a
focal point, as consumers seek to minimize decision-making costs.
As a result, there is a heightened emphasis on personal information
protection, and users are concerned about the privacy and security
of their data. In addition, user demand has shifted towards a focus
on product quality, uniqueness, and sustainability. Users are also
more attentive to the brand stories and values, which are
significant considerations in their purchasing decisions.
These changes in user demand have significant implications for
e-commerce platforms and brands. They are compelled to make reforms
and upgrades to align with the evolving preferences of users. First
and foremost, pricing becomes a critical factor. Low prices remain
the core element that attracts users to a platform, necessitating
an enhancement of the platform's competitiveness in terms of
pricing. Simultaneously, based on user needs, competition, and
behavior, platforms should establish a layered approach to product
categorization. This approach provides cost-effective products for
different groups, forming a sustainable low-priced ecosystem. In
addition, platforms must optimize supply structures and product
quality, expand categories and brands, and provide high-quality and
differentiated products. In terms of service, platforms should
prioritize addressing users' core shopping pain points. This
includes ensuring authenticity, price protection, privacy
protection, stock delivery, and prompt refunds to provide users
with peace of mind when shopping. When it comes to logistics,
platforms must provide fast and traceable delivery while
guaranteeing privacy to enhance user experience.
Brand upgrading is also essential. Brand power is the core
principle of attracting users. Brands should concentrate on brand
image, vision, and value construction to enable consumers to better
understand and establish emotional connections with the brand.
Meanwhile, brands need to innovate in product development,
continuously rolling out differentiated products with competitive
edges. Regarding product quality, as more expert users emerge,
brands must uphold higher standards for quality requirements and
quality supervision to ensure that their products are safe to buy
and use. Additionally, the ability of private domain operation has
become critical. Brands need to establish long-term and close
two-way communication with users to better understand and meet
their needs. These upgrading directions will help platforms and
brands better adapt to and meet the constantly changing needs of
users, promoting a healthier and more sustainable development of
the entire e-commerce ecosystem.
MoonFox Data
In China, MoonFox Data is a top
supplier of thorough data insights and analysis services. With a
solid foundation in mobile big data that is comprehensive, stable,
secure, and compliant, as well as professional and accurate data
analysis technology and artificial intelligence algorithms, MoonFox
Data has launched various products including mobile application
data (iApp), brand insights data (iBrand), precise marketing data
(iMarketing), alternative financial data, etc. In addition, it
provides professional research consulting services through the
MoonFox Research Institute, aiming to help enterprises gain market
insight and empower precise business decision-making with data.
Website: https://www.moonfox.cn/
Contact number: 400-888-0936
Name: Felix
Title: Director of Sales, Industry Insight Division
Tel: +86 -13366276383
Email: zhouzt@jiguang.cn
Address: 608/F, Tower B, Wintrust Center, No. 1 Xidawang Road,
Chaoyang District, Beijing,
China
Name: Silvia
Title: Senior Marketing Manager
Tel: +86-13691629681
Email: zhangkx1@jiguang.cn
Address: 608/F, Tower B, Wintrust Center, No. 1 Xidawang Road,
Chaoyang District, Beijing,
China
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