Inventory of Chinese new e-commerce model in 2020

Posted by zaiwu 09/04/2020 0 Comment(s)

When it comes to the e-commerce model, you may immediately think of C2C, B2C, B2B, etc. However, it is now 2020, and various new e-commerce models are emerging. If we still use this division as a little narrow. Therefore, this article will take into account the traditional e-commerce model, while focusing on introducing new or relatively niche e-commerce models. In this article, Domatters will present four relatively mature e-commerce models so far, and share their business processes, profit models, and business logic behind them.

 

1. Traditional e-commerce

 

There is currently no separate definition for the Chinese e-commerce industry. Before ‘Pin Duoduo’, the well-known e-commerce giants basically belonged to the category of traditional e-commerce. This type of e-commerce platform is generally established early, large in scale and high in popularity, such as Taobao / Tmall, Jingdong, Suning, Vipshop, etc. The new e-commerce platforms under this model include NetEase Koala, NetEase Yanxuan, Siku, and Xiaomi Youpin.

 

Traditional e-commerce is integrated through retail, marketing, logistics, finance and other business forms to form a supply-side network synergy, thereby improving the effectiveness of the entire organization and further sharing service costs.

 

2. Social e-commerce

 

In the past 2019, the term "social e-commerce" has spread all over the country, and it has also attracted widespread attention in the industry. According to incomplete statistics from Ebon Power, in the first half of 2019 alone, 17 social e-commerce financing events have occurred, with a total amount of more than 2 billion yuan.

 

Different from traditional e-commerce, social e-commerce focuses on consumer interpersonal relationships. It generates aggregate benefits based on people-to-people sharing and fission, which in turn reduces platform acquisition costs and service costs.

 

At present, there are four main social e-commerce models in China:

 

a). Social content e-commerce

 

Under this model, the platform relies on high-quality content to guide value-based consumption decisions. It can be divided into 2 categories according to whether the platform products are self-operated. The specific business model and profit composition are as follows:

 

b). Social sharing e-commerce

 

 

Under this model, the platform relies on social relationship chains to promote user fission and product dissemination. It can also be divided into 2 categories according to whether the platform products are self-operated. The specific business model and profit composition are as follows:

 

c). Social retail e-commerce

 

Under this model, e-commerce platforms rely on retail capabilities to promote inventory optimization and incremental mining. According to the traditional e-commerce division method, it is divided into the following three categories. The specific business model and profit composition are as follows:

 

D). Social e-commerce service provider

 

Under this model, the platform relies on professional services based on big data and new technologies to empower all aspects of social e-commerce. According to the types of services provided, they can be divided into the following three categories:

 

3. Fresh Food E-commerce

 

Fresh e-commerce refers to the use of electronic commerce to directly sell fresh products on the Internet, such as fresh fruits, vegetables, and fresh meat. Affected by the epidemic this year, Chinese fresh e-commerce industry broke out strongly. The current competition in the track is still fierce, and Hema, Daily Fresh, Dingdong grocery shopping, Meituan grocery shopping and other platforms have shown their magic.

 

4. Maternal and child e-commerce

 

As the name implies, maternal and infant e-commerce refers to a vertical e-commerce platform that focuses on maternal and infant products and peripheral services.

 

 

Affected by the opening of China's "second child" policy, the entire maternal and child market "received" related dividends. Many are growing rapidly, and some even become in short supply, such as baby care divisions, Yuesao, maternal and child stores, children's playgrounds and other maternal and infant e-commerce industries. Also enjoying the "second child" policy dividend, according to the "2019 China Internet Mother and Baby Market Research Report" released by the data research agency BigData-Research (Bida Consulting), the number of users of China Mobile's mother and baby platform in 2019 reached 200 million. This is an increase of nearly 30% compared to 2018.

 

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