It's a good deal. I have 10 billion in my pocket.

The purpose is clear-to fight a subsidy war for the benefit of consumers.

At this point, Ju cost-effective, this BABA in the sinking market of the core players, once again choose to increase the size.

In the rivers and lakes of "tens of billions of subsidies," with Juhuashun joining the war, the subsidy war has changed from JD.com 's "Errenzhuan" to "three Kingdoms killing."

This means that all three families must claim one of the three roles of Wei, Shu and Wu. To be sure, everyone wants to be Cao Wei, and no one wants to live in West Shu or defend Jiangdong-- because the outcome is obvious.Even if it is as dangerous as Jianmen or has the natural cutting of the Yangtze River, it is difficult to stop the eight-character conclusion about "the general trend of the world" at the beginning of the "three Kingdoms".

The subtle thing is that Juhuasu's entry is obviously well-prepared, and the timing is very mysterious.

The mystery of entering the game

Everyone has heard the story of the struggle between snipes and mussels, and in the end, no one has ever fucked anyone. The fisherman came over to settle the dispute and took everything away.

In the current sinking market, perhaps onlookers are witnessing the same story.

The name that cannot be bypassed in this is Pinduoduo.

Because before Pinduoduo appeared, most people thought that the overall situation of the e-commerce business had been decided, and on the basis of big players like BABA and JD.com, new players did not seem to have any opportunities.

But with the style of "the countryside surrounds the city" and the "cut" of brushing the screen in the social media group.Pinduoduo in the e-commerce community, which has been considered to have encountered bottlenecks in mode innovation, has opened up a territory for himself-the sinking market, in which he once gained the upper hand.

Of course, being able to suddenly grow big and emerge is also related to the "rural" style of playing. In an era when "consumption upgrading" is generally emphasized, some major opponents, such as JD.com, have relaxed their vigilance, such as JD.com, and even publicly expressed their disdain for Pinduoduo. Naturally, they did not attach importance to the latter as a potential opponent.

So Pinduoduo escaped the initial fragile period and became the archenemy of JD.com. The market capitalization even surpassed JD.com and became the second in the domestic market.

This makes JD.com 's position awkward. Because there are BABA and Pinduoduo above and below, and the latter is constantly nibbling away at his own territory by throwing money and subsidies.

Between Scylla and Charybdis.

JD.com has only one choice: to stabilize his position first, and if he is unable to confront BABA in the short term, he can only fight Pinduoduo first.

So the subsidy war first broke out between the two sides.

The purpose is also very clear: after mastering the vast rural areas, Pinduoduo wanted to "brand up", the first person to encounter was JD.com; and if JD.com wanted to stabilize his rear, there was no other way out, he must first confront Pinduoduo.

That's how it started.

The most idle one is BABA.

But this kind of "leisure" does not mean not paying attention to or launching an attack, but waiting for an opportunity, so that one hit will lead to the success of the first world war.

Now the time has come.

After several rounds of shopping, the continuation of the pattern of subsidy for losing money has become a hot topic, and JD.com did not want to take this sudden rival at all-- at the same time, after a few rounds, whether it was JD.com or Pinduoduo, it's almost all consumed, and it's time to hang up the war-free card and have a truce.

When the snipe and mussel are exhausted after not giving way to each other, it is the time for the fisherman to appear.

Of course, it is also a time for the pattern to change.

So Ju cost-effective came, not only there are tens of billions of subsidies in the ammunition depot, but also prepared a variety of weapons, some of which can be called tit-for-tat.

Tit for tat

Subsidies are not new to Internet companies and have been used many times in the process of promoting products and completing market education.

But now, this method of warfare is becoming more and more difficult to sustain.

The latest case is Taojiji, a social ecommerce that once topped the download list, declared out because it could not fill the hole in "money-burning subsidies".

However, as a latecomer, in order to grab food in the flow vacuum environment, Pinduoduo still launched a subsidy war, and so far it seems to be making good progress, and successfully forced JD.com to take it.

But the outcome of Taoji shows that without a positive profit model and strong cash flow support, the subsidy war is difficult to sustain, which is fatal.

Therefore, the first big weapon thrown out by Juhuasu this time is the normalization and persistence of subsidies.

For PinduoduoThe purpose of "tens of billions of subsidies" is more often a short surprise operation to harvest traffic, and its essence is to "cut a knife" rather than to burn money endlessly-especially at a time of current losses.

But for Juhuasu, this is a protracted war, as simple as that.

Ju cost-effective relies on BABA, has a mature profit model and abundant cash flow. Relatively speaking, it is difficult to say that JD.com can fight a subsidy war for many years. As for Pinduoduo, who is losing money, although he does not seem to be short of cash flow now, he still has to carefully consider how long the capital market's recognition of himself can be maintained. After all, no one will bet on an unprofitable company for a long time.

The second weapon is not simple, it is called explosive subsidy.

This gathering is worth 10 billion yuan in subsidies, with a high focus on the selection, focusing on popular categories such as iphone, Dyson and sk2 Immortal Water. Of course, these categories are also subsidized by Pinduoduo and JD.com. But Jushu cost-effective direct choice of popular style cut, head-on war, obviously from its determination to seize the minds of consumers in the sinking market and the ability to achieve the bottom price of the whole network. And these price cuts, simple, direct, no routines, and other platforms formed a contrast.

The third one is authentic.

Tens of billions of subsidies have hit the authentic, the biggest pain point of the sinking market. As we all know, the sinking market has the cruelest price war in the industry, and the profit pressure is huge. In this case, it is difficult to ensure the quality of goods, because some platforms make a name for themselves by virtue of extreme low prices. This kind of short-sighted behavior will bring unpredictable consequences to the sinking market, so this time it is Pinduoduo's desperate extreme low price.

All goods with tens of billions of subsidies are guaranteed to be authentic. Tmall supermarket, Tmall international official direct operation and other self-operated businesses are important sources of subsidies for 10 billion yuan. Even Tmall flagship stores such as Yangtao flagship store are enterprise stores officially certified by Tmall. To do all this, it requires real investment from the platform, but it also ensures the consumer experience to the greatest extent, as said by Liu Bo (Hua Mingjialuo), general manager of Dajuhuashuasuo. Tens of billions of dollars in subsidies should be gathered to make consumers feel at ease and comfortable.

The fourth is the direct participation of brands.Part of the tens of billions of subsidies will be a straight drop in brands. Most official stores of brands will not actively participate in the subsidy war and price war, but why are they willing to cooperate with Juhuashuasu? The reason is very simple, Juhuasu has a massive user base, good user mind and the most concentrated marketing explosive power, so brands can get new customers here and open up new growth space.

In other words, in this protracted battle of the sinking market, Jushuasu is not a single-soldier breakthrough, but a systematic battle-Taobao and Tmall will go hand in hand. BABA let Ju cost-effective subsidies have user sources, genuine mentality, as well as financial and business sustainability, which its competitors do not have. History has long proved that BABA's business is easy to form a strong joint force, and this systematic and ecological mode of operation is very difficult to defeat.

The fifth is the platform shop to participate.

As we all know, some official stores on the platform seldom participate in the so-called subsidy war, price war, because there is no shortage of consumers, such as the official flagship stores of mobile operators, some online activities do not participate at all, but this time the platform is also cost-effective to sink the market.

The five weapons aim at the five pain points and five bottlenecks of the sinking market, and the essence of innovation is to break the bottleneck and solve the pain point tit-for-tat.

Strategic confrontation

Whether it is Pinduoduo, who first triggered the subsidy war, or JD.com, who took part in the war passively, although they all have heroic words, they all know in their hearts that blindly throwing money is not the conventional mode of an e-commerce platform, so it is not difficult to start a price war. how to end it is a problem-- but now that BABA joins the war, it's hard to stop.

This is a strategic showdown. Whoever retreats halfway will be out.

For Pinduoduo, this battle cannot be lost.

Because the sinking market is where Pinduoduo made his fortune and is his hometown. If you lose the war in your hometown, there is no way out.

Of course, Pinduoduo also knows that his magic weapon is to focus on road goods and knockoffs at extreme low prices, so his purpose is also very clear: to achieve brand improvement through subsidies, at least to reach the level of not being teased by others to "fight for the evening", in order to enter the e-commerce industry, so as to whitewash yourself.

To put it bluntly, Pinduoduo is spending money on credibility and traffic.

But the first encounter was with JD.com.

In terms of volume, JD.com ranks second, and has been based on the "authentic" positioning, of course, is also the primary goal of Pinduoduo brand, so a competition is inevitable.

For JD.com, it is equivalent to a powerful opponent popping up out of thin air. Because of his own positioning, it is very difficult for JD.com to knock on Pinduoduo's site through the extreme low price model regardless of cost, because that will lose the brand impression points, so when Pinduoduo launches a price war, it is doomed that this battle will be launched in JD.com 's main brand range.

It's hard to take advantage of it.

Because the flames of war are on JD.com 's turf, and the opponent is wantonly attacking with the mentality of "barefoot is not afraid of wearing shoes", even if JD.com wins the counterattack, where can he catch up? Can we catch up with Pinduoduo's hometown and start to attack each other with fake goods?

The difficulty is that we have to follow.

Therefore, under a passive situation, JD.com also began to "subsidize 10 billion yuan," because in any case, he should not lose his basic disk. If these users go to play more and "come ashore safely," and form a habit over time, JD.com will fall into the dilemma of fighting on two fronts.

The one with the most cards is value for money.

Because back to BABA, there is no shortage of traffic, there are helpers, advance can attack and retreat can defend.

In the past two years, Juhuashuasuan was still Tmall's marketing tool, and he didn't pay much attention to the sinking market. However, as Pinduoduo has acquired a number of sinking market consumers who have newly touched the net, Amoy has quickly completed the transformation of these new users relying on cost-effectiveness. Now, more than 80 per cent of users of Puduo are users of Tmall on Taobao, and the latter has a much stronger brand mind than more, which is determined by BABA's industry status.

Pinduoduo and JD.com have played several rounds, and they can't hide their tiredness after losing to each other. The entry of tens of billions of subsidies undoubtedly refers to the end of this competition.

For BABA, this is also the upgrading of competitiveness brought about by business optimization within the system, which is to build a new industry moat.

Returning to the origin of the price war is especially familiar to BABA-the low price and small profit model of e-commerce is precisely the values that BABA brings to consumers.

Subsidy war

But in any case, the subsidy war is always popular.

For example, the subsidy war in the sharing economy has become a phenomenon, although the tide has receded, but the industry has completed its restructuring.

The war to sink the market has also escalated suddenly as a result of the cost-effective entry.

This is the killing of the three Kingdoms.

From the perspective of resources, Juhuashuasuan is obviously closer to Cao Wei, which has the core hinterland of the Central Plains.

Whether it is the scale of users, the strength of the platform, or the mind of users, almost all the time, land and people are in harmony.

In terms of scale, gathering more than 700 million Taobao users covered by 10 billion subsidies will have a diffusion effect-even merchants who do not participate in the event may launch activities or even directly participate in the event because of the surge in traffic. it directly magnifies the actual effect of tens of billions of subsidies. The latest figure is that within 20 hours of the launch of the 10 billion subsidy, the number of visitors has exceeded 1 million, and this number will only grow bigger and bigger, and the establishment of strong minds of consumers will in turn make the platform more attractive to brands.

There is no need to say much about the strength of Taobao Tmall. BABA has a very mature business model, including a profit model, with abundant cash flow to support tens of billions of subsidies.

In contrast, Pinduoduo is still in the stage of "buying traffic", which is even the early way of playing on the Internet. And after the listing of the capital market, the subsidy model of burning money is constantly being questioned by investors, especially Pinduoduo is still in a state of loss, which is doomed that its subsidy model is unsustainable.

It is worth mentioning that there is also a famous way to become famous-"bargaining", because relying on third-party sharing links, there is also a huge risk of being "choked" in terms of traffic.

In terms of the user's mind, the goods bought by Pinduoduo are called "successful landing", which means that the user is thin and sticky, and the user even has the mentality of escape, which will be a hard wound for Pinduoduo.

But for value for money, it has a natural advantage.

In BABA's sequence, Juhuashuasuan plays the role of brand sinking, while behind it is the huge support provided by Tmall on Taobao, and it is also the first choice for users-- this is the competitive advantage brought by their minds.

But in the end, this is a protracted war, not a skirmish that can be divided by one or two subsidy wars.

Because the three are listed companies, the financing ability is super strong.

This means that, at least for a while, the subsidy war is not short of ammunition-for all three.

However, it is certain that Ju's cost-effective participation in the war has changed the distribution and trend of the war.

Tens of billions of subsidies are a number, or even just the beginning.