Get the guide to creating hot-selling products in the second category of e-commerce!

Nowadays, "Internet + e-commerce" has penetrated into every corner of life, accompanying everyone's food, clothing, housing and transportation. According to a Morgan Stanley report, China's e-commerce sales exceeded US$1 trillion in 2019, accounting for 50% of the world's total.

On the one hand, the dazzling data demonstrates the huge growth potential of China's e-commerce market. On the other hand, it also hints at the fierce competition that is bound to accompany the advent of the e-commerce boom.

So looking at China, where are the market dividends for the second-tier e-commerce (direct-operated e-commerce)?

How big is the direct-operated e-commerce market?

As of May 2019, Alipay had 582 million monthly active users, while WeChat had 1.12 billion monthly active users .

It is obvious that Alipay users represent the mainstream group of online payment in China. The 582 million monthly active users support multiple e-commerce online payment platforms such as Taobao, Tmall, and Vipshop. Then let’s think about this question: who are the users who differ in the number of WeChat users compared to the number of Alipay users?

They are people who are using mobile Internet but do not know how to shop online.

Do you feel an inexplicable sense of intimacy? It may be that they are right next to you, such as your parents, grandparents. They have the typical characteristics of early Internet users. They do not trust online payments, have a strong desire to shop, and make e-commerce purchases through cash on delivery. They are the second-tier e-commerce users.

What if these people started shopping online?

582 million users have already supported e-commerce platforms such as Tmall and Taobao, and a consumer group that is several times larger than this market will inevitably bring new e-commerce dividends. There is and only exists a second type of e-commerce market.

Now you should know how big the second-tier e-commerce market is?

So how to seize these e-commerce dividends? How to stand out in the vast e-commerce market by making clever use of big data analysis? How to discover new opportunities amid fierce competition?

So far, tens of thousands of businesses have flocked to the platform. Since mid-2015, news and information flow platforms have emerged as a new force, and we have officially entered the era of mobile Internet advertising.

News apps are mainly used by people with "three highs": high education, high income and high position. After the user base in first- and second-tier cities is saturated, they are quickly expanding into towns and rural areas, with users moving to third-, fourth- and fifth-tier cities, giving them a natural advantage in monetizing traffic. The advertising revenue of news information flow of Tencent, Toutiao, NetEase, Sohu, Sina, Phoenix and other companies has grown rapidly in the past few years, and the second-tier e-commerce has also continued to explode as a result.

It took only three years from the start in 2015 to the GMV of 20 billion in 2018. In 2019, according to the media revenue target, it is estimated that the GMV will reach 30-40 billion, with a growth rate of more than 150% , which will usher in the first year of explosive growth.

Category II e-commerce has gone through three stages of traffic dividends, from pictures and texts to animated pictures to short videos, which means that the news and information platform has reached the bottleneck of increasing revenue. It has leaped from the information flow to the social information flow (WeChat) and entertainment information flow (Tik Tok) era, and has officially ushered in the first year of the explosion of video sales!

Author: Aiqi SEM

Source: Aichi SEM