How should we break through the digital economy in the new situation
Business Observer Magazine
2022-02-24 19:26 Beijing
Source: Pengpai News · Pengpai Account · Media
Business Observer reporter Ni Hanfei reports from Beijing
Everything in this world is changing, but the only constant is change. With the increasing maturity of new technologies, big data, VR technology, and artificial intelligence are gradually coming into people's sight. All industries will be impacted by digitalization, only in terms of the degree and timing of the impact. Faced with these irresistible challenges, whether they will be swallowed up by this era is the long-term development consideration for future enterprises.
1、 New Trends in the Digital Economy
1. Cross border integration of industries
Cross border business has become an emerging phenomenon in the industry, whether it is robots, new energy vehicles, or Xiaomi community. Enterprises in various industries are launching diversified new businesses to promote new engines. Nowadays, as long as we open our phones, we can find multiple apps such as Taobao, WeChat, Weibo, Pinduoduo, etc. Among them, WeChat, Pinduoduo, and Meituan belong to the Tencent series; Taobao and Weibo belong to the Alibaba series. The brands in daily life have been locked in by both parties, and our attention and money have gradually taken over their wallets. Now we live in a world surrounded by Alibaba and Tencent. At present, they have extended their tentacles to the real estate industry, and their operation mode has gone beyond the scope of traditional Internet companies.
2. The platform is moving towards monopoly
With the rapid development of the digital economy, the rise of platform economy has become the most influential and widely used economic form. With the rapid rise of Internet platforms, "leading enterprises" have emerged in many fields, and monopoly has become the norm in the rise of super platforms.
With the strong rise of the Internet, Didi Taxi has shaken the taxi industry. Becoming a very important travel platform in China's technology industry, Didi Chuxing currently has over 400 million active users according to statistics.
Alipay APP has become one of the largest digital payment service providers in China in the emerging payment industry, with an annual revenue of 120.618 billion yuan in 2019, including digital payment revenue, digital financial platform and innovative business. Industry monopoly has shifted towards platform monopoly, and small regional monopoly is gradually moving towards large-scale regional monopoly. The historical tide is pushing governments, enterprises, and individuals to constantly move forward.
3. The brand landscape has been disrupted
Due to the continuous development and emergence of new products and categories, they have become an important part of promoting high-quality development in the industry. Enterprises are also divided by era. Looking around, the leading companies in the world trend are some young enterprises with strong ambitions and profit-making abilities. According to a survey of the top ten global companies by market capitalization, three of them are post-95s and one is post-00s. The new generation of companies has already occupied half of the global rankings, and their energy cannot be ignored. Traditional brands are being challenged as a result, and the brand landscape has been disrupted.
Since 2016, there has been a unique chemical reaction between live streaming and e-commerce. With the diversification of social platforms and changes in consumer consumption habits, a new generation of consumers and a new round of marketing revolution have begun. The professionalization of internet celebrities has emerged, and a group of professional original content producers such as Li Jiaqi have driven a new round of consumption growth. In just three months, Taobao's live streaming sales GMV on the night of Double Eleven pre-sale reached 8 billion. New live streaming traditional brands and supply chain enterprises are creating new marketing models to further promote the industrial upgrading of commerce. The sales process extends in different directions, and the future of products is no longer determined by the enterprise itself.
4. The Development of Advertising Industry
The advertising industry is constantly evolving with the development of enterprises, while also utilizing content to create explosive points. Pinduoduo once launched the "Tesla Car Ten Thousand Person Team" activity, which is 40000 yuan cheaper than the official guide price. Even after removing the new energy subsidy, it can still reach a discount of about 20000 yuan.
The combination of Pinduoduo and Tesla may seem awkward to consumers, as they are clearly not closely related. However, this event has brought great brand energy to Pinduoduo. Although Tesla has issued a statement on its official website stating that there is no relevant cooperation between the two, Pinduoduo has verified the cooperation relationship with Tesla and the subsidies are also genuine. In the whole event, Pinduoduo did not cooperate with Tesla's official, but only cooperated with an offline store of Tesla. Such advertising did not violate any requirements of the headquarters on market pricing. Such a strange marketing method is equivalent to Pinduoduo spending only 200000 yuan to reposition the high-end brand of Pinduoduo. For consumers, Pinduoduo has received a real discount. Compared with traditional advertising, advertising on the Internet platform shows another way.
At the same time, the label of the founder of a company has become increasingly important. Many emerging brands are now linked to personal image. Technology entrepreneur Elon Musk's wealth has skyrocketed, surpassing Bill Gates to become the world's second richest person. He is also a very wild and ambitious entrepreneur who can set his sights on the future and want to completely change the energy economy, whether it is an electric company, unmanned driving enterprise, or manufacturing spacecraft... Every time these great dreams are spoken of, they are treated as a joke by others, but he can actually achieve them. Such an attractive founder has fatal appeal, as he is vastly different from the founders of traditional enterprises.
5. Consumers are becoming increasingly lazy
With the passage of time, the post-90s and post-00s generations have become the main force of consumption, and they have also shown several very obvious characteristics: firstly, they are becoming lazier and do not know how to cook or want to cook. Their daily lives rely entirely on takeout, and they only need to play games or watch movies at home to order takeout at the same time. As a result, their lifestyle has also been changed. In recent years, data shows that people use WeChat more often than they use Alipay. This is the reason for this situation. This is because people will stay on WeChat for a long time at home. If they go to Alipay, they will have to poke again. This can be a change that people don't want to do again. In addition, Meituan has sold more than 50 million takeaways every day in a few years, with the latest valuation reaching nearly 170 million yuan, becoming the top three Internet enterprises in China, which is the "market" that people are getting lazy.
In 2022, Internet giants will also be busy. They will focus on the people's "food basket", fresh food, meat and eggs, milk, etc., which are indispensable elements for every family. Fresh food e-commerce is difficult to break through the barriers of the past because of its high timeliness, low customer price and other characteristics, because this tough bone market is huge, attracting the big Internet giants. For example, a community group buying food platform originated in Changsha has opened up a new channel for offline retail. Currently, it has purchase locations in 13 provinces and cities, over 6000 prefecture level cities, and more than 30000 townships across the country. Whether it is daily life or shopping festivals such as Double Eleven, the food platform is different from Taobao, and the promise of next day delivery is not affected. Many people working in Beijing and Shanghai place orders for their parents, and whether it is fruits, vegetables, chickens, ducks, fish, or meat, they will be delivered to their parents the next day.
For the sinking market, this convenience can replace the preferred platform with any type of supply chain. Many people greet each other with what good products they found on the preferred platform today. In particular, the impact of the epidemic has accelerated the development of this module. Meituan, Pinduoduo and JD... many Internet giants joined the competition of the preferred platform, and staged an all-star version of community group buying chaos. Not only Internet giants have entered the market, but also the capital market has followed. Data shows that nearly 10 billion yuan has entered the market in just a few months. Community group buying has changed people's lifestyle. Now the chaos of group buying is only temporary, and the survival of the fittest in the market will always exist.
6. Algorithms determine everything
The Internet market, especially the investment industry, needs to objectively identify the value of the product. The superposition of opening frequency and retention time is the "effective time" of the final product. For example, once the Tiktok APP is opened, it will be out of control. Every user's operation will determine the direction of the algorithm. Brush Tiktok has become the normal life of most young people.
Ideal, Xiaopeng Motors, and NIO, as outstanding players in China's new energy vehicle industry, are able to raise funds and expand their market despite facing losses. The reason why they were able to go public is the potential behind the industry. Originating from the interaction of future information, the true core lies in the internal systems beyond automobiles, and algorithms also dominate the disruption.
With the accumulation of data, computing power is also greatly improved. The Internet is deeply integrated with all walks of life, and more and more business decisions are made through intelligent algorithms. With the rapidly changing economic environment and the emergence of competitors, if a company cannot monopolize and cannot perceive a large amount of data, it will be unable to explore unknown opportunities and achieve profitability in the current situation.
2、 The fresh food market is divided up
The fresh food market has not been lonely for many years, whether it is stores or e-commerce, they are constantly trying various methods to meet the needs of the people. The COVID-19 infection in 2020 has led to a sharp increase in consumers' demand for fresh food, and the size of the fresh food market has been significantly improved. At present, there are 12000 fresh food e-commerce enterprises in China. Today's grocery shopping "and" Meituan Youxuan "have emerged like mushrooms after rain, and even Didi Chuxing and Pinduoduo have launched different types of grocery shopping channels. Alibaba and Tencent are not willing to fall behind and have invested in many community group buying platforms.
What kind of business model is most suitable for the current era? The fresh food industry has always had its own thoughts. Due to the fact that fresh produce and fruits and vegetables are essential elements that every household must buy, users will have more stickiness and stability. The demand for fresh produce is very high, and the unit price continues to rise, showing a typical strong traffic population pattern. The fresh food market requires strong logistics support, and maintaining a fresh taste is one of the costs to consider. The supply chain needs to conduct accurate analysis and classification of customer clusters after reducing time costs.
How to cope with market changes? If a company wants to make significant progress, it needs to break through existing thinking and break down outdated systems. Only by abandoning traditional systems can new thinking and methods be introduced. Disruptive thinking of the company will win opportunities for the future. Enterprises are most afraid of standing still. Only by adapting to the times can they seize and accept changes. Faced with the ever-changing market, how to stand out and win a place in the market is a topic that enterprises need to constantly think about.
Segmenting the market and creating new market share, all top players in an industry share a common characteristic, which is being pioneers and pioneers in this category. Under the tide of the Internet, the pioneers have great advantages. Because of the low communication cost, as long as a category is determined to start first, they will certainly make different content, break the conventional thinking and methods, and make other people's unexpected ideas.
To sustain a brand for a long time, it is necessary to personalize the brand. The reason why century old brands can continue to exist today is because they are rooted in the minds and hearts of consumers. When it comes to the "Three Squirrels", people naturally associate them with nuts. Precise market positioning and personalized brand operation make the three cute squirrels stand out on the snack track. To establish a brand, it is necessary to strengthen the position of the leading figure. The leader of a company needs to lead the entire team to create more possibilities, objectively analyze the funding, market, and policies of the overall environment, place suitable talents in the right places, value the abilities and strengths and weaknesses of each talent, and leverage the strengths of each member of the team in order to achieve the highest point of the entrepreneurial team. In the future, let us join hands to face the ever-changing world, build brand competitiveness through the use of new technologies and business models, achieve true leadership for enterprises, and ultimately achieve success.
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