The cheap 618 and fake orgasm

A brain teaser, what ads have you seen the most recently?

Yes, every family is celebrating 618, and today let’s talk about the embarrassing 618.

I believe that since the end of May, everyone should have known that JD.com is going to have 618 again~, and then, in the past two days, I believe that many people have been flooded with messages not only from JD.com but also from Suning.com, No.1 Store, and Tmall.

Okay, let’s talk about this shameless 618 today.

Why is there 618

JD.com says on Baidu Encyclopedia: On June 18, 1998, Liu Qiangdong started his business in Zhongguancun and established JD.com.

Therefore, since 2010, JD.com has started the "618 Anniversary Celebration" event.

Unfortunately, Beijing Jingdong Century Trading Co., Ltd. was actually registered in 2007. Therefore, June 18, 1998 was actually the day when Liu Qiangdong rented a stall in Zhongguancun and started his physical store business. In order to verify this fact, I deliberately controlled the date of the search results to before 2009, and found that there is indeed such a statement, but the exact truth is unknown. We can assume that this is a fact.

However, the birthday of the stall selling 3C products should have nothing to do with JD.com, it was just used as an excuse. After all, the 618 store anniversary sounds more reasonable than the 618 entrepreneurial anniversary.

But if we think carefully about what happened in the year before 2010, perhaps we will understand more clearly why JD.com chose the mediocre 12th anniversary to start its store celebration.

On November 11, 2009, Hangzhou, Alibaba, Taobao, and Singles’ Day appeared in front of the Chinese for the first time.

If you know that before the rise of Tmall, JD.com was the only one in the B2C field, it would be easy for you to understand why Double 11 forced JD.com to take on the challenge next year.

Funny follow-up

In 2011, Kuba followed suit and held an event on June 17 to block JD.com.

In 2012, Suning, Tmall, Kuba and Dangdang joined the battle together, triggering the most popular 618 mid-year celebration of the year.

In 2013, Yihaodian and Yixun also followed suit with the 618 Mid-Year Celebration, but they were not very popular.

In 2014, No.1 Store, Suning, Tmall...

In 2015, it’s here again…

Things change over time. Kuba, Dangdang, and Yixun all fell, and then one after another, they continued to come forward.

Along with the "discount", some people also said "discount after price increase", "not as cheap as usual", "really not good" and so on.

Someone asked me why I hate JD.com. I really don’t hate JD.com. I am still a gold user of JD.com. I just don’t like this single promotion method.

Moreover, this way of playing is a bit boring and even dirty.

Of course, I don’t deny that there are definitely some promotional categories or even products, but I think that sometimes before users really buy something for the sake of cheapness, they can use a third party to do price comparison and price monitoring, and then they can see at a glance whether it is really cheap or not.

Silently recommend a web page: Box Price Comparison.

(Please give a tip to the person in charge of box price comparison as advertising fee after seeing this)

Behind the price war

The follow-up and climax seem to be very lively, but the essence behind them is still the simple and crude idea of ​​price war.

I really don't understand what the meaning of price customers is.

Some people say that this is to quickly occupy the market. Once the market is occupied and users develop habits, profits can be made.

The logic is all correct, but I would like to ask, if the latecomer has a huge financial backing and uses the same method to engage in a price war, and the product experience, product categories, and logistics speed are similar, how long will it take for the latter to eliminate the market occupier?

In fact, it’s still the same strategy where if you lower your price, I’ll lower my price too.

If you don’t believe me, just wait and see.

Someone asked before, why are Didi and others providing subsidies while Uber is not following suit, is this a good thing?

I think this is pretty good.

Ele.me has also been providing subsidies continuously, but as soon as it stops providing subsidies, it will immediately lose market share, because when you have no money to burn, your competitors will come out to reap the spoils of your business.

This is why when Didi and Kuaidi merged, their combined annual revenue was only US$25 million, while CAR Inc., which has been making a fortune in silence, has already had an annual revenue of US$600 million, not to mention Uber, which also has an annual revenue of over US$100 million.

In many industries, service is the real deciding factor, even if all users say that all they want is cheapness.

But if they are given better service, they actually don't mind paying a little more money.

The premise is that the service is good.

I once asked my wife a question (she has been studying in college, far from the Internet): "You said you have used Ele.me a few times recently and found it good. So, what if Ele.me stops subsidizing you?"

My wife said, “I will still use it.”

"What if Meituan gives subsidies at this time?"

“Then I might use Meituan.”

"What if no one subsidizes, but one of them delivers faster than the other and also gives away napkins and drinks?"

"I don't need a drink, but I'll use whichever one is faster."

"What if it's not fast, but it's cheap?"

"That depends."

"How do you determine which one is faster?"

"You'll know once you use them all."

Did you find it? Price: Customers care about price, but price is not the only determining factor.

Pretend orgasm

Wangxiangyuan is very open when it comes to cross-industry cooperation. Alipay once cooperated with it and treated everyone to a big meal.

The stores at Wang Xiang Yuan were extremely cooperative, working with Alipay to produce and place a large number of posters and cards. Alipay even cited this as a "case study."

So, do you know why Wangxiangyuan does this?

This is how Wang Xiang Yuan views discounts:

"I don't offer discounts myself, but if you're willing to pay, I'll be happy to let all customers know that the discount on his meal is yours."

Carefully consider the logic behind it, and you will find something very interesting:

1) Wang Xiang Yuan doesn’t like discounts

2) Wang Xiang Yuan does not reject discounts, as long as someone is willing to bear the cost

3) Wang Xiang Yuan wants its customers to know who is responsible for the cost