Kaola.com Product Analysis
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Kaola.com (formerly known as NetEase Kaola) is an independent e-commerce brand under Alibaba that focuses on cross-border retail import business. Its main function is cross-border trade, and its sales categories cover a wide range, with the main focus on self-operated direct procurement. Why has Kaola.com, which has only been online for 6 years, been able to lead the cross-border e-commerce industry? On the morning of September 6, 2019, breaking news came from the cross-border e-commerce sector: NetEase Kaola was acquired by Alibaba Group for US$2 billion. The rumors of "selling out" were settled, and NetEase Kaola (now renamed Kaola Global Shopping) became the focus of public attention, continuing to attract high attention from all sectors of society. According to public reports, during the Double Eleven period in 2019, the activation rate of Koala Black Card soared by 150%, and the activity rate reached 86%. In the just-concluded Double Eleven Shopping Carnival in 2020, the number of Koala members increased by 104% year-on-year, saving more than 100 million yuan. The renamed Koala won the overseas shopping war. Why has this “young” cross-border e-commerce platform, which was founded in 2015, become an industry leader in such a short period of time? What is the current development status and future trends of the cross-border e-commerce industry? This article will analyze the product features of Kaola Global Shopping and lead readers to have a deep understanding of the product. It hopes to use this feature to gain a deeper understanding of the operating logic of the cross-border e-commerce industry. Therefore, this article will analyze from the following aspects:
1. Industry AnalysisAccording to the definition given by scholars, cross-border e-commerce refers to e-commerce platforms and online trading platforms where trading entities in different customs territories conclude transactions, make payments and settle accounts through e-commerce platforms, and deliver goods and complete transactions through cross-border logistics. As can be seen from the definition, cross-border e-commerce is a type of e-commerce. The difference from domestic e-commerce is that it is an international commercial trade activity involving many business processes such as international trade transportation, border inspection, cross-border payment, etc., and its operating model is more complex. Then why has the cross-border e-commerce industry represented by Kaola achieved rapid development in recent years? Since the e-commerce industry itself is one of the industries deeply affected by macro factors, the PEST model will be used below to explore the hidden reasons behind it. 1.1 PoliticsSince cross-border e-commerce involves multiple trading entities across customs borders, domestic policies and the signing of international trade agreements will affect its development. Therefore, the policy level will be explained from the above two aspects. In terms of domestic policies, in 2012, the country launched a cross-border e-commerce service pilot in five cities, namely Shanghai, Chongqing, Hangzhou, Ningbo and Zhengzhou, hoping to solve the bottleneck problem in the development of cross-border trade e-commerce, thus ushering in an era of rapid development of cross-border e-commerce. In 2013, the General Office of the State Council forwarded a notice from the Ministry of Commerce and other departments on the implementation of relevant policy opinions to support cross-border e-commerce retail exports, which included establishing a new customs supervision model adapted to e-commerce exports and conducting special statistics, establishing a corresponding inspection and supervision model, supporting enterprises to collect and settle foreign exchange normally, encouraging banking institutions and payment institutions to provide payment services for cross-border e-commerce, and implementing corresponding tax policies. The "Notice" gives a clear time point for the implementation of the policy, demonstrating the country's firm support for the cross-border e-commerce industry. In May 2020, the Government Work Report of the State Council clearly proposed to grant free trade pilot zones greater autonomy in reform and opening up, accelerate the construction of the Hainan Free Trade Port, add free trade pilot zones and comprehensive bonded areas in the central and western regions, and increase comprehensive pilot projects for expanding the opening up of the service industry, injecting a shot in the arm for the further development of cross-border e-commerce. In terms of international trade agreements, since 2005, China has signed free trade agreements with Chile, Pakistan, New Zealand, Singapore, Peru, Costa Rica, Iceland, Switzerland, South Korea, Australia, Maldives, Georgia and other countries. On November 5, 2020, China, Japan, South Korea, Australia, New Zealand and the ten ASEAN countries jointly signed the Regional Comprehensive Economic Partnership Agreement (RCEP Agreement). Since the agreement covers the world's most populous and largest economic and trade region, lower tariffs and efficient logistics give cross-border e-commerce greater development potential. On December 30, 2020, Chinese and European leaders jointly announced that the negotiations on the China-EU Investment Agreement were completed as scheduled. This blockbuster news is enough to shake up the cross-border e-commerce industry, and the industry's economic development will surely usher in new opportunities. 1.2 EconomyAs we all know, China's economy has been improving over the past few decades. Even in 2020, according to the estimates of the International Monetary Fund (IMF), affected by the COVID-19 pandemic, the global economy continued to be sluggish in 2020, while China's economy will grow by 1.9%, making it the only major economy in the world to achieve positive growth. In 2021, my country's economic growth rate is likely to reach more than 9%. At the same time, according to data from the National Bureau of Statistics, China's residents' disposable income continued to grow from 2013 to 2019, with an average annual growth rate of more than 8%. In the first three quarters of 2020, the national per capita disposable income of residents was 23,781 yuan, a nominal increase of 3.9% over the same period last year. After deducting price factors, the actual increase was 0.6%; the national median per capita disposable income of residents was 20,512 yuan, an increase of 3.2%. The data shows that as the GDP growth rate turns positive, the economic environment gradually improves and national disposable income increases, this will effectively promote residents' consumption capacity and make them willing to buy cross-border e-commerce products. (Photo source: Xinhuanet) 1.3 Society and CultureFrom the overall social and cultural perspective, as the consumption level of Chinese residents continues to increase, it has become increasingly common to use online shopping on e-commerce platforms instead of offline shopping. Online shopping is convenient in terms of time, space and transaction process. Users do not need to wait, which saves time. Therefore, it has become the most common way of shopping for the public. According to the statistics of iMedia Consulting, 65.3% of the respondents use mobile payment platforms for online shopping on e-commerce platforms. The data further highlights the universality and importance of e-commerce online shopping. As the spending power of the younger generation of "trendsetters" who pursue international fashion gradually matures, cross-border products will have a broader market. At the same time, according to statistics from the Ministry of Education, from 1978 to the end of 2018, the number of students studying abroad reached 5.8571 million. Among them, about 84% of those who have completed their studies chose to return to China for employment. It can be seen that the group of international students returning to China for employment is huge. The latest "2020 China Study Abroad White Paper" shows that the total number of overseas students in 2019 was about 890,000, and they often used foreign websites such as Amazon, Best Buy, and Sephora to "shop." Since international students have lived abroad for a long time, they have become accustomed to certain foreign brands. As most of them return to China for employment, choosing cross-border e-commerce to purchase products has become the new normal. (Image source: 2020 White Paper on Studying Abroad in China) In addition, according to public data, my country's current new generation of mothers are mainly born in the 1980s and 1990s. Their demand for maternal and infant products is showing an increasingly higher trend. When domestic products cannot meet their needs well, purchasing foreign goods becomes their best choice. At a time when the COVID-19 pandemic is raging, it is difficult to travel abroad for purchases. Purchasing goods through cross-border e-commerce is one of the few safe and economical options. (Image source: iiMedia Research) 1.4 TechnologyThe development of Internet technology and the continuous progress of infrastructure construction have brought many conveniences to the cross-border e-commerce industry.
It can be foreseen that with the advent of the 5G era, network speeds will continue to increase, user experience will continue to improve, and the proportion of people using e-commerce for shopping will be higher. The above factors have jointly driven the popularity of cross-border e-commerce platforms in recent years. So what will be the development trend of this industry in the next few years? Is there enough market space? According to data from the China Industrial Research Institute, my country's cross-border e-commerce retail import and export volume exceeded 100 billion yuan in 2018. In 2019, the retail import and export volume of cross-border e-commerce reached 186.21 billion yuan, five times that of 2015, with an average annual growth rate of 49.5%. It is estimated that by 2025, the import and export volume of cross-border e-commerce retail will reach 488 billion. As the number of comprehensive cross-border e-commerce zones in my country increases, the market size of cross-border e-commerce will continue to grow and the market prospects are broad. In addition, according to data provided by iResearch Consulting, the main purchasing group of cross-border e-commerce is the middle class, and the domestic middle class is growing continuously. In 2010, there were approximately 114.2 million households between the emerging middle class and the upper middle class, and in 2015, there were approximately 188.3 million households, and by 2020, the number is expected to reach 244 million households. As the domestic middle class continues to grow, cross-border e-commerce will continue to have development potential. From the above two pictures, we can see that there is still a lot of room for the cross-border e-commerce market, and it will continue to grow rapidly in the next few years. 1.5 SummaryIn recent years, the country has formulated a large number of policies conducive to the development of cross-border e-commerce, opened free trade pilot zones and bonded areas (in 2019 alone, 24 new cross-border e-commerce comprehensive pilot zones were established), and signed free trade agreements with a number of countries and regional organizations, firmly supporting cross-border e-commerce to expand its business. At the same time, as the only major economy with positive economic growth in 2020, China's per capita disposable income has steadily increased, and the younger generation of the middle class has a demand for purchasing cross-border products. In addition, the domestic Internet is well developed, infrastructure construction is constantly upgrading, and the booming cross-border e-commerce still has good prospects. 2. Competitive Product AnalysisFaced with this rapidly growing trend, a group of participants have emerged. Among them, there are both large Internet companies and some unicorns and small and micro enterprises, such as Tmall Global, Kaola, JD International, Suning International, Vipshop, Xiaohongshu, Aomai, and Yangmatou. According to data from iResearch Consulting, Kaola and Tmall Global are significantly ahead of other companies in terms of user scale and corporate revenue, and belong to the first tier; JD International, Suning International, Vipshop, Xiaohongshu, Aomaijia, etc. are also influential participants in the industry and are ranked in the second tier; other companies are at a disadvantage in terms of user scale and market share, and are classified as the third tier. Currently, Kaola and Tmall Global are both subsidiaries of the Alibaba Group. They have similar market shares and business models, and are direct competitors. So, we will use the growth paths and business models of these two companies as entry points to gain a deeper understanding of their similarities and differences. 2.1 Kaola Global Shopping2.1.1 Kaola.com’s Growth Path
2.1.2 Kaola.com’s business model Core of the model: The core of Kaola's business model is: B2C self-operated direct purchase model. A professional procurement team is established to go deep into the product's origin, strictly review the qualifications of all suppliers, and set up a review mechanism to eliminate counterfeits at the source and ensure product safety. Traffic source: NetEase has a full-line layout in the fields of news, music, comics, reading, education, finance, etc., and has established a rich product matrix, abundant traffic, users and media resources. Therefore, before being acquired by Alibaba, Kaola's business traffic was diverted and converted by its parent company NetEase. Product categories : Kaola.com has a wide range of products, and the platform's sales categories cover mother and baby, beauty and cosmetics, home life, nutrition and health, global food, clothing and luggage, digital appliances, etc. Warehousing and logistics: Kaola.com controls every aspect of product warehousing, logistics and after-sales service. It has the largest bonded warehouse resources and logistics cloud system in the industry, and has established a three-level cross-border logistics warehousing layout covering overseas direct mail-overseas collection-domestic bonded import. In addition to domestic bonded warehouses and overseas warehouses, Kaola.com has also independently developed an intelligent management system "Xiangyun" and a cloud TMS system "Rui Lin", and fully opened them to upstream and downstream partners. Development trend: After being acquired by Alibaba Group for US$2 billion, in order to differentiate itself from Tmall International, on August 21, 2020, Liu Peng, Vice President of Alibaba Group and CEO of Kaola.com, officially announced that Kaola.com will strategically upgrade its membership e-commerce business and will utilize Alibaba's global supply chain capabilities to better meet the needs of trends with a direct sales model. At the same time, ten major membership benefits were announced, with upgrades focusing on global selection, customization, ultimate cost-effectiveness, and exclusive services. Kaola.com will solve the consumption problems of new middle-class members, focus on China's 300 million new middle-class people, act as their global buyers, use black card members to go deeper, and maximize the satisfaction of the needs of individual members and group members. This means that Kaola Overseas Shopping will create a new competitive space between offline retail membership and online e-commerce overseas shopping, and may fundamentally rewrite the current rules of the overseas shopping industry. 2.2 Tmall Global2.2.1 Tmall Global Growth Path
2.2.2 Tmall Global Business Model Core of the model: Similar to Kaola, the core of Tmall Global’s business model is also the B2C model. Traffic source: Tmall is the largest B2C platform in China, with distinct platform characteristics and a large number of customers and merchants accumulated in the early stage. Backed by Tmall, Tmall Global has attracted many overseas merchants to settle in, such as Costco, Macy's, Chemist Warehouse, Victoria's Secret, LG, Matsumoto Kiyoshi, etc. Product categories : Currently, more than 26,000 overseas brands from 84 countries and regions around the world have entered Tmall Global, covering more than 5,300 categories. More than 80% of the brands are entering China for the first time, and there are many types of similar products for customers to choose from. Warehousing and logistics: According to news reports, as of September 2020, Tmall Global's "Overseas Direct Purchase" has deployed more than 100 overseas warehouses in five major regions: North America, Europe, Japan, South Korea, Hong Kong, China, and Southeast Asia, and has established an official procurement team of more than 100 people in more than 20 countries and regions around the world. In terms of logistics and distribution, Tmall Global uses both the bonded warehousing model and the overseas direct mail model. Among them, the bonded cargo logistics mode is:
Development trend: On September 1, 2020, Tmall Global announced the upgrade of its overseas warehouse business and officially launched the official cross-border direct mail business "Overseas Direct Purchase" project, introducing five major consumer rights: buying Hermès without matching goods, free shipping worldwide for orders over 299, special plane delivery worldwide within 7 days, simultaneous new products at overseas counters, and official direct purchase of overseas originals. The project uses overseas warehouses around the world to provide overseas direct mail services to domestic consumers. Based on Cainiao's global warehousing layout and the construction of a global supply chain network, the project puts the latest trendy new products and limited edition high-end products released overseas directly on the shelves for sale to Chinese consumers through official direct procurement. 2.3 SummaryFrom the analysis of the above two products, it can be seen that Kaola Global Shopping and Tmall Global were established at a similar time, their businesses were officially launched at a similar time, their core businesses are both B2C self-operated, and they are direct competitors. However, before Kaola.com was acquired by Alibaba, the two products relied on different parent companies. Tmall Global was backed by Alibaba Group and had stronger financial resources, which provided sufficient guarantee for it to catch up with its competitors and expand its business in the future. In terms of specific business models, although both are centered on B2C, there are differences between the two. NetEase Kaola adheres to the self-operated direct purchase model and review mechanism, while Tmall Global attracts overseas merchants to move in directly. In terms of consumer after-sales protection, NetEase Kaola is better. In terms of product variety, because Tmall Global has more national brands and a wider range of products, the number of products available for consumers to choose from is greater than that of Kaola Global Shopping. In terms of warehousing and logistics, Kaola has a three-level cross-border logistics warehousing layout and has developed an intelligent management system. Tmall Global mainly adopts two modes: bonded stocking mode and overseas direct mail mode. Relatively speaking, Kaola's logistics management level is higher. Finally, in terms of development trends, Alibaba Group acquired Kaola Global Shopping. Tmall Global will continue to focus on user breadth and maximize user penetration on Taobao Mobile; while Kaola Global Shopping will focus on user depth and serve Kaola Black Card members. There is currently no way to know how the two will perform in the future. 3. User Value AnalysisIn the cross-border e-commerce market, there are four main participants: domestic consumers, overseas suppliers, distribution logistics parties and platform parties. The business logic diagram of Kaola.com can be represented as follows:
If the platform wants to achieve rapid business growth, it must simultaneously meet the needs of domestic consumers and the demands of overseas suppliers. Among them, logistics distributors provide auxiliary services in cross-border e-commerce services, which have no actual demand and will not be analyzed here. Next, let’s explore the needs of these two groups of users and what measures Kaola has taken to better meet their needs. 3.1 Domestic Consumersin the country, the actual consumers of Kaola.com are mostly middle-aged and young people. According to iResearch Consulting Group’s research data, 78% of China’s cross-border online shopping users are aged between 24 and 39, and the largest cross-border online shopping group is those born in the 1980s and 1990s. As those born in the 1980s and 1990s grew up, China was undergoing a major reform and opening-up. This large group of people have been exposed to foreign TV dramas, cartoons, and advertisements since childhood, and have even used products featured in the advertisements. Compared with their parents, they are more receptive to new things and are very willing to buy and use overseas products. After developing a strong desire to purchase overseas products, domestic consumers mainly use the following methods to purchase. 3.1.1 Purchase abroad In order to purchase the overseas products they desire, one solution is undoubtedly to let consumers go abroad to the place of origin to purchase them in person. Because at the place of origin, they can actually choose the products they like, minimizing the possibility of purchasing fakes. However, this approach also has limitations. Firstly, the procedures for going abroad are complicated and time-consuming, and language barriers during shopping result in a poor shopping experience. Secondly, the transportation costs to and from overseas destinations are generally high, resulting in a high economic cost for actual shopping and a low cost-performance ratio. 3.1.2 Overseas Purchasing Before 2013, there was no cross-border e-commerce retail policy implemented in China, nor were there any cross-border e-commerce experimental zones. At that time, overseas purchasing was a mainstream way to buy overseas products. The process can be summarized as follows: domestic consumers purchased local products through overseas purchasing agents and then mailed them back to China. Among them, overseas purchasing agents include international students and overseas Chinese living in the local area. This method requires consumers to have enough trust in the overseas purchasing agents, and there is generally no need to declare customs when mailing the goods back to China. However, this purchasing method also has obvious problems: First, some dishonest purchasing agents sell counterfeit goods, causing consumers to worry about the quality of goods; there are no clear rules, overseas purchasing agents add prices on their own, and product pricing is not standardized; logistics time is long and the shopping experience is average; after-sales service is imperfect, and there is a phenomenon of purchasing agents "running away". 3.1.3 Personal Overseas Shopping For consumers who cannot go abroad to buy for various reasons and cannot find reliable overseas purchasing agents, shopping overseas by themselves is one of their few options. When using this method, you need to compare and screen on foreign e-commerce websites, place an order, and then mail it to China. According to the survey results of iResearch Consulting, domestic overseas shopping users prefer discount marketing methods of e-commerce websites the most. During important Western carnival seasons such as Black Friday, Thanksgiving, and Christmas, e-commerce websites offer large discounts and promotions, and domestic overseas shopping users participate enthusiastically. But this approach also has its limitations:
It can be seen that the above three methods each have their own advantages and disadvantages, and none of them can meet the shopping needs of consumers well. 3.2 Overseas SuppliersThe product quality of overseas suppliers is the core concern of domestic users when choosing overseas goods, and it is also one of the core competitive advantages of cross-border e-commerce platforms in attracting users. With the improvement of consumption capacity, more and more consumers are pursuing a high-quality life and are willing to choose high-quality overseas products. According to iResearch Consulting, in 2018 more than 30% of users will choose overseas products because of their good quality. It is an indisputable fact that domestic users pursue cost-effectiveness of products, but product quality is receiving more and more attention. On the other hand, according to public reports of the Economic Daily, foreign companies as overseas suppliers have a strong desire to invest in China, pursue China's economic hotspots, improve technology, and cooperate with Chinese companies. Fundamentally, overseas suppliers have an urgent need to actively expand into the Chinese market, enhance the influence of their corporate brands in China, and increase corporate revenue. They have adopted the following methods to deepen their presence in the Chinese market. 3.2.1 Establishment of a joint venture At the beginning of reform and opening up, restricted by the policy environment at the time, foreign-owned companies encountered many difficulties in carrying out activities alone in the domestic market. Local companies understand the domestic environment and can serve as matchmakers for foreign companies and solve practical problems. Therefore, forming joint ventures with local companies is a common choice for them. For example, Procter & Gamble is a successful example in this regard. It established a joint venture in Guangzhou in 1988 and quickly seized the Chinese daily necessities market. Of course, in actual operation, this model is also prone to conflicts. The business philosophy and operating model of a joint venture are not solely controlled by foreign investors, and the operating costs are not low, which can easily lead to disputes. 3.2.2 Opening offline direct stores Opening offline direct stores is also an important way for overseas companies to enter the Chinese market. In the brand's offline direct stores, domestic consumers can feel as if they are abroad. They can experience the products up close and compare and select the one that suits them. However, this model also has its shortcomings. The most prominent problem is that offline store rent expenses are relatively high and the store operating costs are high. If this part of the cost is transferred to consumers, the unit price of the goods will be too high, affecting sales; if the company itself bears it, it will also be a considerable expense, which will also affect the company's income. 3.2.3 Suppliers build their own websites In addition to opening offline stores, overseas companies also build their own websites to sell their products directly to consumers. For example, many international brands such as Estee Lauder, L'Oreal, Louis Vuitton, etc. have their own websites. However, due to the differences in language and culture between China and foreign countries, the promotional content of self-built websites may not be accepted by domestic consumers, and the actual ordering process and logistics distribution of the website are also prone to obstacles. 3.2.4 Settling in overseas e-commerce platforms Joining mature overseas e-commerce platforms is another common solution. Among them, the more well-known platforms include AliExpress, Amazon, eBay, Wish, etc. During important holidays or shopping seasons, overseas companies can participate in the platform's discount activities to attract consumers to place orders and increase sales. However, after entering mature overseas e-commerce platforms, overseas companies will still face the problem of cross-border payments. Inconvenient payment methods will affect customers' willingness to place orders and affect transaction volume. According to the above comparative analysis, it can be seen that the above four methods have their own advantages and disadvantages, and the demands of overseas suppliers are still not met. 3.3 PlatformFrom the above analysis, we can see that the main problems with the current solutions for domestic consumers in purchasing cross-border goods can be summarized as follows: The quality of goods varies greatly, and authenticity cannot be guaranteed; screening high-quality goods is time-consuming and labor-intensive, the specific operations are complicated, and the shopping experience is poor; the pricing of goods is not standardized, and consumers do not get any benefits; the timeliness of logistics is poor, and it takes too long to receive the goods; there is a lack of after-sales service for goods, and it is difficult to protect rights, etc. The demands of overseas suppliers include reducing operating costs, eliminating barriers caused by language and cultural differences, promoting brands and increasing awareness, making cross-border payments simple and convenient, and ensuring smooth logistics. So, how does Kaola, as a platform, better meet the needs of the above two parties and attract them to this platform? 3.3.1 Product screening (Image source: Internet) Since its inception, Kaola.com has focused on direct purchasing, established a professional purchasing team to go deep into the product's origin, and strictly audited the qualifications of all suppliers and set up a strict review mechanism. (Photo source: China Youth Network) At the same time, by using blockchain technology, product registration, warehousing and logistics information will be uploaded to the blockchain data node, making the product information traceable. Strict access mechanisms and identity registration procedures eliminate counterfeits at the source and ensure the safety of goods to the greatest extent possible, thereby avoiding domestic consumers' concerns about product quality. iResearch’s survey data also proves that consumers are highly satisfied with Kaola’s product authenticity guarantee. On the other hand, according to public reports, Kaola.com has established branches and offices in nearly 10 countries and regions, including San Francisco, Tokyo, Seoul, Sydney, and Hong Kong, and has gone deep into the origins of goods to select the world's high-quality products. Kaola helps consumers screen high-quality goods in advance, selects high-quality products, simplifies the shopping process for consumers and saves time. This effectively solves the problem of consumers wasting time and energy and having a poor shopping experience. 3.3.2 Pricing Advantage Because Kaola.com mainly adopts the self-operated model, it can coordinate all aspects including warehouses, logistics, operations, etc. to reduce channel costs. By purchasing in large quantities and maintaining a stable long-term basis, we can obtain overseas wholesale prices and have the advantage of independent pricing, which can effectively reduce the purchase cost price. We can also offer larger discounts during domestic holidays and important shopping festivals (such as Double 11, 618, and Fan Festival promotions). Therefore, the problem of irregular commodity prices is well solved, consumers' pursuit of cost-effectiveness is met, and consumers get benefits. (Image source: Internet) 3.3.3 Logistics and warehousing Domestically, Kaola adopts a bonded warehouse model, which not only meets legal and compliance requirements, but also reduces costs and achieves fast delivery. According to public data, Kaola.com has a bonded warehousing area of more than 150,000 square meters in the four bonded areas of Hangzhou, Zhengzhou, Ningbo and Chongqing. Kaola.com has become the company with the largest bonded warehouse scale among cross-border e-commerce companies. Overseas, Kaola has initially built an international logistics and warehousing center in the United States. In the future, it will open international logistics and warehousing centers in countries and regions such as South Korea, Japan, Australia, and Europe to further enhance its logistics and warehousing capabilities. NetEase Kaola has a presence in important regions at home and abroad and has built a powerful warehousing and logistics system and capabilities, which can effectively make up for the shortcomings of poor timeliness in previous cross-border shopping and allow products to reach consumers more quickly. 3.3.4 After-sales service Kaola has formulated complete return and exchange rules and procedures. According to the instructions given on the official website, products purchased from Kaola.com support 30-day returns, and cross-border products (involving customs clearance procedures and time limits) support 7-day worry-free returns; some individual products (for example, short-term overseas food, underwear for close-fitting use, etc.) may not enjoy the return policy, and consumers need to pay attention to the special instructions on the product page. The specific return and exchange process includes filling out a return and exchange application, waiting for customer service confirmation, sending out the returned and exchanged goods, customer service receiving the returned and exchanged goods, completing the refund or sending out the replacement goods, etc. (Image source: Internet) Clear after-sales rules provide a basis for consumers to protect their rights, guarantee the legitimate rights and interests of consumers, and solve the problems of lack of after-sales service and difficulty in protecting rights in previous cross-border shopping. 3.3.5 Babysitting service Kaola.com provides overseas suppliers with a complete set of nanny-style services, including cross-border logistics warehousing, cross-border payments, supply chain finance, online operations, brand promotion, etc., clearing the obstacles caused by language and cultural differences faced by foreign brands entering China and helping them to land in the Chinese market. At present, Kaola.com has signed strategic cooperation agreements with hundreds of foreign brand suppliers from the United States, Britain, France, Canada, Japan, Australia and other countries, including many international first-line brands and well-known manufacturers. (Photo source: Online News) From the actual situation, a large number of overseas suppliers attach great importance to cooperation with Chinese cross-border platforms and have a strong willingness to cooperate. One of the important reasons is that cooperation saves costs, solves problems in logistics, payment, operation and promotion, obtains greater profits and meets their demands. 3.4 SummaryThrough the above analysis, we can find that compared with other cross-border commodity purchasing methods, the Kaola Global Shopping platform solves the problems faced by domestic consumers and overseas suppliers, while balancing the interests of both parties and meeting their respective needs. This is also the reason why Kaola Global Shopping is popular among all parties. 4. Commercial Value AnalysisThe core business of Kaola.com is e-commerce business, so here we use GMV, an indicator for measuring the competitiveness of e-commerce platforms, to analyze the core business situation of Kaola.com. GMV = number of users * conversion rate * average order value The three indicators of user number, conversion rate and average order value will affect GMV, thereby affecting Kaola's core business. Next, we will analyze what measures Kaola.com has taken to improve these three key indicators. 4.1 Increase the number of usersIn order to ensure the growth of Kaola Global Shopping’s business, it is necessary to continuously attract new users to use Kaola Global Shopping to purchase products. In order to achieve this goal, Kaola has taken the following measures. 4.1.1 Large-scale advertising investment Method 1: Sponsor a popular variety show For example, Koala.com has sponsored Mango TV's self-produced variety show "Super Mom" Season 3, Zhejiang Satellite TV's flagship variety show "Running Man" Season 2, Hunan Satellite TV's slow variety show "Longing for Life" Season 2, and iQiyi's "Youth With You" and other variety shows. In the second season of "Running Man", Koala Overseas Shopping was even cleverly integrated into the game session, which not only increased the brand's exposure frequency, but also quietly conveyed the slogan "Buy imported products on Koala" to the audience, allowing more new users to choose Koala to purchase products. (Image source: Internet) Method 2: Invite celebrities to endorse. During Double Eleven in 2020, Ning Jing, who became popular in "Sisters Riding the Wind and Waves", was invited by Koala Haigou as the product spokesperson and entered the live broadcast room to introduce Koala membership rights, interact with the audience, and share skin care secrets. The celebrity effect has made Koala attract more fans' attention and increased the number of users. (Photo source: China Daily) 4.1.2 Cross-platform traffic drainage In addition to naming programs and inviting celebrities to be spokespersons, Koala Haigou also actively cooperates with other platforms to attract new users. Before the acquisition, Koala Haigou was affiliated with NetEase’s brands, Koala advertisements could be seen in NetEase News, NetEase Cloud Music, and NetEase Games, which effectively increased the number of Koala users. Koala Haigou has also cooperated with Tencent Video to launch a member buy one get one free event, attracting users who like to watch Tencent Video to register and use Koala Haigou. (Picture source: Kuai Technology) 4.1.3 Invite friends to make money Koala Haigou once posted a money-making activity for inviting friends - old users invite friends to register as new users and get cash rewards; invite friends to place orders for the first time, old users can also get additional rewards; there is no limit on daily invitation to friends. The activities of inviting friends to make money are led by the old and effectively promote the increase in the number of users. (Picture source: Internet) 4.1.4 Reputation of old customers In order to establish a good reputation among old customers, Koala Haigou insists on product and user-oriented, selects products, and controls the quantity of products to a comprehensive but not too many; pursues the ultimate cost-effectiveness, strictly controls product quality and allows customers to gain benefits, so that old customers are willing to recommend products to their relatives and friends around them. According to the public speech by Yuan Foyu, general manager of the marketing department at that time, more than 50% of Koala HaiPu users came from word-of-mouth recommendations from old users, which demonstrated the importance of word-of-mouth. 4.2 Improve conversion rateAfter guiding users to the platform through the above method, new users need to place orders on Koala Hai Purchase and convert them into paid users on Koala platform. According to the shopping process, users will first search for the product and enter the product list page, then click on the product details page to see more information, and finally enter the shopping cart page. Therefore, the way koala sea shopping can improve conversion rate will be divided into three parts to explain it separately. 4.2.1 Product List Page As can be seen from the screenshot above, Koala Haigou uses the following methods to attract customers to place orders: Design 1 : High-definition large-scale display of products. In the product list page, clear appearance display pictures of each product are given, giving users a good first impression. Design 2 : Price displays cost-effectiveness. It helps domestic users to compare the cost-effectiveness of the products and initially filter out the products they like to buy the most. Design 3 : Filter products according to different attributes. Users can choose brand, origin, function and other attributes according to their actual needs, and can also choose to sort products based on sales, price, etc., so that consumers with different needs can find their intended products and have the desire to further read the details page. 4.2.2 Product Details Page After users take a fancy to their intended products on the product details page, they will naturally click on the product details page. The above picture shows the above example of Xue Lingfei's amino acid facial cleanser, which shows how Koala Haigou helps users lock in the product in this step: Design 1 : HD scene diagram. You can see on the left side of the page above that there are several scene pictures that allow users to enter the scene of using the product in advance. The immersive feeling further enhances users' favorability for the product. Design 2 : Special offer free shipping. On the right side of the details page of the above picture, next to the product price, there are labels that specifically indicate special prices and free shipping. The four words "special offer" and "free shipping" make users who pursue cost-effectiveness have a stronger desire to buy. Design 3 : Authentic product guarantee. In the picture above, below the purchase quantity, there is a line of instructions: genuine product guarantee, 7-day no-reason return. Actively prove to users that the quality of their products is excellent, so that consumers can have no worries. Design 4 : List the hot selling list. On the left side of the picture, the hot sales list of similar products is listed, which once again emphasizes the popularity of this product. For example, the facial cleanser in the picture below is ranked second on the hot list, indicating that the product has extremely high popularity and promotes customers to place orders. Design 5 : Show positive reviews. The above picture is an example. In the user evaluation part, the positive review rate is directly given by 98.2%, indicating that the product is very popular. At the same time, the user's positive review text and pictures once again verify that the product is of high quality and attract consumers. Design 6 : Customer service follow up. At the bottom of the details page, manual customer service follows up to answer users’ questions in a timely manner, allowing customers to have a better shopping experience and help increase their willingness to place an order. Design 7 : Limited time special offer. During the important discount promotion season, Koala Ocean Shopping Club launched a limited-time special offer. By creating a sense of urgency, more users can rush to place orders. (Picture source: Internet) 4.2.3 Shopping cart page After the user enters the product details page from the product list page, if the order is not placed immediately, the product will usually be added to the shopping cart, which is often the last step before the final order is placed. Koala Ocean Shopping has also taken many measures to promote the final transaction at this step. Design 1 : Highlight discounted prices. In the shopping cart interface, we once again highlight special prices and discount prices, and seize the customers' pursuit of affordability. Design 2 : Highlight discount information. For products with coupons, the discount information will be displayed again on the car purchase interface. Since Koala Haizhuang has koala beans, this interface will also display koala bean deduction information. Design 3 : Highlight the gift information. For products with gifts, the Koala shopping cart page will also be highlighted, which also takes advantage of people's desire to take advantage of the order and promotes ordering. Through the above methods, many users will be satisfied with the product and recognize the cost-effectiveness of the product, and a considerable number of users will be willing to place an order to purchase. 4.3 Increase Average Order ValueThe average customer price is affected by the amount of a single purchase and the frequency of purchases. Increasing these two indicators will help increase customer unit price. Below, we analyze how Koala Ocean Shopping increases the average customer price from two aspects: increasing the amount of a single purchase and increasing the frequency of purchases. 4.3.1 Increase single purchase amount Design 1 : Display combination set. In Koala Ocean Shopping, following the product price, the option of "Show More Combinations" is often followed by the "Show More Combinations" and uses related products as a combination set to bundle them to increase the amount of users' single orders. Design 2 : Set up orders and purchase discounts. Common order-making strategies include full discount activities, full discount activities, etc. The exchange strategy is to use low-priced exchange to bundle sales. They can all increase the number of items purchased by consumers in a single time, increase the consumption amount, and increase the average customer price. Design 3 : Free shipping for full amount. Koala Haigou’s self-operated mall generally shows free shipping for more than 88 yuan. When the price of the product is less than 88 yuan and is close to 88 yuan, customers can choose to collect other products and provide free shipping for free shipping to increase the average customer price. Design 4 : Recommend complementary products. Platforms often automatically recommend related products based on user searches. Taking facial cleanser as an example, the page will recommend complementary products, such as recommended makeup remover. During the browsing process, users will buy the products they like, increasing the average customer price. 4.3.2 Increase purchase frequency Method : Establish a membership system. Whether on the product details page or the shopping cart page, users will see the black card membership price in a prominent position. Black card membership prices will make customers more affordable every time they shop, making them more willing to buy back at Koala Sea next time, which will increase the number of purchases for users. The perfect koala membership system will help increase the frequency of orders for users and thus increase the average customer price. 4.4 SummaryFrom the above analysis, we can find that in order to optimize its marketing revenue, Koala Haigou has tried various methods to continuously increase the number of users and increase the conversion rate and average customer price. It seems that the effect is good at present, and it accounts for a large proportion in the cross-border e-commerce market. NetEase Koala has great commercial value. 5. Product Iteration AnalysisIn order to deeply analyze the version iteration rhythm of Koala Haigou and explore the product iteration logic, this article summarizes all the core versions of Koala Haigou from V1.0.0 to V4.42.4 as follows: Taking the oppo platform as an example, according to the curve distribution of the download volume of Koala Haigou on Kuchuan, it can be seen that the curvature of user growth has increased rapidly from V3.8.7 (August 30, 2017) to V4.24.5 (that is, March 4, 2020), and the user growth has flattened after V4.24.5 (March 4, 2020). This curve belongs to the "S-shaped" curve, so the iteration of Koala Haigou is divided into three stages for analysis: (Source: Cool Chuan.com) Phase 1: Startup PhaseBefore August 30, 2017, Koala Haigou released the V1.0.0-V3.8.1 version, which is the launch stage of Koala Haigou products. The main goal of this stage is to attract the first batch of users, improve the main functions, verify user needs, and polish the user experience. The main operation of this stage is to attract the first batch of users from NetEase News, email, entertainment and advertising channels, and establish basic functions required for users from selecting intended products, purchasing products, paying orders to logistics and after-sales. This function is a necessary function for users to complete purchases. Specifically, it includes complete product search, product details display, online customer service answering questions, online payment, real-time display of logistics tracks, order query, self-service cancellation, logistics reminders, etc. At the same time, in order to further improve the shopping experience, Koala Haigou also did the work of improving and upgrading functions at this stage. Continuously optimizing the search page, adding the video playback function of the details page, upgrading the details page information, and adding the "Product Question and Answer" module will help to more comprehensively display product information and help users understand the product more comprehensively. Among them, since cross-border products are generally expensive, adding video playback function on the details page can effectively help users make up their minds to purchase products. Supports third-party authorized login such as WeChat Alipay, adds merged payment functions, and adds WeChat Alipay payment functions to improve the convenience of account login and online payment. Supporting personal center binding mobile phone numbers improves the security of the account. The online membership system can increase the number of user repurchases. At this stage, the ranking of Koala Haigou APP has gradually increased. The main reason is that Koala Haigou meets the basic shopping needs of users and continuously improves product functions to effectively improve the user experience. The second stage: build operation tools, increase user stickiness, and expand user scaleStarting from August 30, 2017 to March 4, 2020, the version was updated from V3.8.7 to V4.24.5, which is the rapid growth period of Koala Haigou. It can be seen that the number of users continues to increase at this stage. Increase the stickiness of old users, expand the influence, and attract new users have become the focus of product iteration at this stage. In terms of retaining old users, Koala Haigou continues to optimize basic functions at the product level, including upgrading the homepage, adding new combination recommendations on product pages, adding video functions on evaluation pages, changing product specifications of shopping carts, upgrading customer service after-sales service, and launching a new personal center, which further improves the user experience and conversion rate of Koala Haigou products. Among them, adding video functions to the online evaluation page can show the full picture of the product from the buyer's perspective, effectively increasing users' willingness to purchase. At the same time, Koala Haigou has improved some functions through online launch, which has improved user stickiness, such as launching grass planting community and upgrading grass planting community, establishing and upgrading black card member discount system and exclusive customer service system. These are all very important functions to maintain user activity and enhance user stickiness. In addition, in order to attract more new users to use, Koala Haigou has begun to build some on-site operation tools, such as inviting address book friends to receive rewards and inviting new users to receive red envelopes, hoping to reduce operating costs by actively attracting new users and achieve rapid user growth. Secondly, Koala Haizhuang also launched large-scale shopping promotional activities, such as Koala Haizhuang 12.12 Year-end Ceremony, 816 Super Big Brand Discount Season, Koala Double Eleven Carnival, Koala Black Five Sea Shopping Festival and other activities. In these activities, promotional methods such as full discounts, discounts, free postage and taxes are adopted to continuously meet users' pursuit of affordable shopping needs. In order to seize market share, Koala Ocean Shopping has also accelerated its operational pace at this stage. The main operations include: titled popular variety shows, such as "Where Are We Going, Dad", the third season of Mango TV's self-made variety show "Mom is Superman", the second season of Zhejiang Satellite TV's ace variety show "Running Man", the second season of Hunan Satellite TV's slow variety show "Longing for Life", iQiyi "Youth With You", etc., constantly increasing brand exposure and increasing popularity; cooperating with Tencent Video to launch joint members, etc. From the perspective of data, at this stage, the number of users of Koala Haigou has increased rapidly, indicating that Koala Haigou has achieved good results in a series of actions at the product level and operation level at this stage. The third stage: expand promotional activities, carry out member e-commerce models, and enhance member rights and interestsFrom March 23, 2020 to now, the Koala Ocean Shopping version has been updated from V4.25.3 to V4.42.4. Koala Ocean Shopping has entered a mature stage. At this stage, user growth has slowed down. Koala Ocean Shopping's main goal is to explore new promotional activities and business models to ensure user retention. In terms of specific actions, Koala Ocean Shopping is actively expanding new promotional activities. In addition to the 618 and Double 11 Koala Ocean Shopping Festivals that are launched every year, new discount promotional activities are launched almost every month, including 415 Vitality Week, 515 Good Goods Festival, 721 Koala Black Card Day, 821 Koala Black Card Day, 99 Weeding Festival, 11.25 Koala Black Friday Global Treasure Festival, New Year's Goods Festival, etc. These discount promotions once or twice a month can not only attract new users to download and register at any time, improve conversion rates, but also help increase the number of purchases for old users and increase stickiness. At the same time, Koala Haigou has also expanded its new business direction, developed towards member e-commerce, and paid more attention to member rights and interests. Specifically, the member price of the product is clearly marked on each page and the member discounts are displayed; at the same time, Koala Haizhuang has been continuously upgrading its black card rights and interests, launching major discounts on black card discounts, black card exclusive super red envelopes, black card member red envelopes, black card membership red envelopes, black card membership full discounts and discounts, so that old users can buy affordably, improve the purchase frequency and shopping experience of old users, and ensure user retention rate. Overall , Koala Haigou fully grasps the iteration rhythm of the version. In the early stage of Koala launching, we focused on polishing the basic shopping functions and directed traffic from other channels to attract the first batch of new users, but we did not rush to promote them in large quantities, because at this stage, the product functions are not complete and the user experience is poor. Even if many new users are attracted through large-scale promotion, users will be lost. When the basic functions stabilize, Koala Haigou began to continuously optimize and upgrade new functions in product form to improve the shopping experience. At the same time, we began to try to launch promotional activities to meet the needs of different users, and carry out large-scale operation promotion to attract and retain more users. When the number of users reaches a certain scale, Koala Haigou began to actively develop new promotional activities and develop towards member e-commerce, focusing on improving member rights and preferential efforts. This is the overall iterative step of Koala Ocean Shopping. 6. Product structure analysisIn the iterative analysis, the iterative steps of Koala Haigou product functions are explained. Next, we analyze what users' needs these functions meet and how they are distributed throughout the app. This is mainly analyzed through product structure. The following picture is the product structure brain diagram of Koala Haigou V4.42.4: In order to facilitate further analysis, the author re-examined the product structure of Koala Haizhuang according to users, scenarios, needs and functions, and obtained the following table: Overall analysis: Koala Haizhuang users are consumers of cross-border e-commerce products, so product design must meet the needs of consumers. When consumers use koala ocean shopping, there are three main scenarios:
Scenario 1: What needs do consumers have before purchasing and what functions does Koala Ocean Shopping meet consumer needs?Consumers before placing an order for purchase at Koala Sea Shopping can be divided into two categories: consumers with clear shopping goals and consumers without clear shopping goals. Their needs are different before placing an order, so separate statements: For consumers with clear goals, their needs are clearer, that is, select product categories, search for target products, and understand the current promotional activities and the discounts of target products. Among them, the selected product categories can be realized through the home page - product classification module, koala cool street, boutique supermarket, overseas direct purchase and other modules. Searching for target products can be achieved through the home page-search box module. All the functions mentioned just now are found on the product homepage, which is very reasonable in design. Because as a consumer with clear goals, I hope to quickly find the target product through search and browsing as soon as possible. The operation cost is low and the operation is simple, which caters to the needs of users. For consumers who do not have a clear shopping goal, they often need to review past collections, watch other people's recommendations or koala recommendations, current promotions and live product videos, and find their own shopping goals. Among them, viewing favorite products and watching other people's recommendations can be achieved through the My Like module and the WOW module. If you want to check out the recommended products of Koala, click on the "Today's Events" module. Understanding the current promotion activities can be achieved through the homepage's daily lottery module, promotional activity area module, rolling product chart, hard-core subsidy module, black card daily member selection module and other functions. Watching product live broadcasts and hot sales lists are respectively entered by Chuishu TV and the global factory reputation hot list. These features have effectively improved their shopping willingness. At the same time, the functions mentioned above are located in the navigation area at the bottom of the APP, and are affiliated to the Like module, Today's Event module, and Home page module respectively. These three areas are adjacent to them, making it easier for consumers to switch freely to find their intended products. When users find their target products through the above functions, they will transform into consumers with clear goals. Since then, their needs and corresponding platform functions have been explained in the previous text, and will not be repeated here. Scenario 2: What needs do consumers have in purchases and what functions does the platform use to meet this needs?No matter which type of consumer, you must complete the process of locking the product to placing an order and paying for purchases. Specifically, consumers at this stage have the need to learn more about the product, add to the shopping cart, check information, place orders and complete payment. In the APP, in addition to understanding the product in detail, you need to complete it on the product details page, the other four requirements can be met only by the shopping cart module. Koala Haigou sets it independently in the bottom navigation area as a first-level functional module, which shows the importance of this module. At the same time, such a design can reasonably eliminate the operation of consumers switching interfaces continuously, simplify the process, and help improve consumers' shopping experience. Scenario 3: What are the needs after purchase and how does the koala platform meet?After purchasing a product, consumers need to check the order and understand the current product status. Viewing orders is mainly achieved through my order module. When the product has been sent, the logistics information of the product becomes particularly important, and the relevant information is also presented in this module. When the product arrives successfully in the hands of the consumer and signs for it, you need to return and exchange or refund when evaluating the product or product quality problems. It is also implemented in my order module. Since this module is very important to consumers after purchasing products, Koala Haigou sets it in the middle core position of the "My Koala" page to facilitate users to find and use. This design also reflects Koala Haigou's emphasis on this function. For consumers who are willing to share their experience, Koala Haigou also provides a release function module. This functional module can be entered by the Like function in the navigation bar at the bottom of the APP, located in a conspicuous position in the lower right corner of the interface, and is marked clearly in blue and green. This design reflects Koala Haigou’s support and attention to consumers’ release of their own user experience. summaryFrom the above analysis, we can find that the functional design of Koala Haigou can meet the needs of users in the three scenarios before, during and after purchase. At the same time, the high-frequency functions required by users are highlighted and distributed reasonably in the product structure, which can be called a product with relatively excellent design. 7. Operational AnalysisThe development and operation of products are closely related. In order to explain how Koala Haigou operates this product so as to grow rapidly in a short period of time, according to the AARRR model, the main operating activities of Koala Haigou have been sorted out as follows. 7.1 Attracting new customers (A)In order to attract new customers, Kaola.com mainly uses the following methods. Method 1: Celebrity endorsement
Method 2: Name variety show
Method 3: Cross-border cooperation
7.2 Inspire activeness (A)After users download and register the app, they need to activate users. Koala Haigou’s method to improve user activity is mainly through pushing messages:
7.3 Improving Retention (R)In order to continuously obtain profits, Koala Ocean Shopping needs to improve the platform's retention rate. In order to improve retention rate, Koala Haigou mainly does the following:
7.4 Share and spread (R)In order to guide user communication and expand influence, Koala Haigou mainly does the following:
7.5 Increase Income (R)In the chapter on commercial value analysis, the method of koala ocean shopping to increase revenue is explained through analysis of GMV, which will not be repeated here. 8. ConclusionThrough the overall analysis of the cross-border e-commerce market and Kaola.com, we can draw the following conclusions: 1) The situation in various aspects such as policies, economy, society and culture, and technology is conducive to the vigorous development of cross-border e-commerce, and the cross-border e-commerce field still has good prospects. 2) In the e-commerce industry, Koala Haigou has an advantage in user scale and corporate revenue, has a strong industry influence, and is in the first echelon with Tmall International; and compared with direct competitors, its advantage lies in the adoption of a self-operated direct procurement model and review mechanism, which can provide domestic consumers with better after-sales service and pay more and more attention to member rights. 3) In the cross-border e-commerce market, there are four main participants: domestic consumers, overseas suppliers, distribution logistics parties and platform parties. Among them, the distribution logistics party provides auxiliary delivery services. If the platform wants to achieve rapid business growth, it must meet the needs of domestic consumers and the demands of overseas suppliers at the same time. 4) Koala Haizhuang’s core business is e-commerce business. In order to maintain the continuous growth of revenue, first, Koala Haigou continuously acquires new users through various methods such as paid advertising traffic and customer reputation; second, Koala Haigou completes user conversion through a series of design elements such as product list pages, product details pages, shopping cart pages, etc.; finally, Koala Haigou achieves an increase in customer unit price by displaying combination sets, full discounts and exchange, free shipping for full amounts, recommended products, and establishing a membership system. 5) Overall, the development of Koala Haizhuang since its establishment can be divided into three stages, and the rhythm is well grasped. First, focus on polishing the basic shopping functions, and direct traffic from other channels to attract the first batch of new users; when the basic functions stabilize, Koala Haigou began to operate and promote on a large scale, and continuously optimize and upgrade new functions in product form to improve the shopping experience; when the number of users reaches a certain scale, Koala Haigou began to actively develop new promotional activities and develop towards member e-commerce, focusing on improving member rights and preferential efforts. 6) The users of Koala Haizhuang are consumers of cross-border e-commerce products, so their product design is to meet the needs of consumers. There are three main scenarios for consumers to use koala to buy: before, during and after purchase. Through the review of the Koala Ocean Shopping function, we can actually find that most of the consumer's needs can be well met. A good user experience is the vitality of a product. 7) Operation is crucial to the development of a product. It can be seen that Koala Haizhuang has done a lot of work in attracting new products, promoting vitality, retention and self-dissemination, and the activity effect is still good. Above, this article analyzes the reasons behind the rise of Koala Ocean Shopping from seven parts, including industry, competitors, user value, commercial value, product iteration, product structure, and operation. It can be seen that the rapid growth of Koala Ocean Shopping is the result of the combined effect of multiple factors. IX. Future OutlookThrough the above analysis in this article, we can find all aspects of the rapid rise of Koala Ocean Shopping. As a leader in the cross-border e-commerce field, what is the future development of Koala Ocean Shopping? To explore this problem, in this chapter, the SWOT model will be used for analysis, hoping to draw useful conclusions from it. From the above analysis, it can be seen that if Koala Ocean Shopping wants to continuously obtain profits: 1) It is necessary to improve the platform's technical level, reduce commodity costs, operation costs, and increase revenue. Since Koala Haigou has been merged into Alibaba Group, it can actively adopt Alibaba Group's technical and organizational framework. At present, Koala Haigou has adopted Ant blockchain technology to upgrade the full-link traceability system for the product. In the future, we can also actively utilize Alibaba Group's existing retail resources and logistics and distribution experience to achieve lower cost prices and increase profits. 2) Consider appropriately increasing the types of goods from the core consumer groups. For a long time, due to the differences in operating models, koala has fewer products than other competitors. But it is gratifying that Koala Haigou's attractiveness to brands has increased, and more brands are willing to cooperate with Koala. Koala Ocean Shopping mainly targets the 300 million middle class in China. As more young people enter this group, Koala Ocean Shopping needs to appropriately upgrade its product types to adapt to the ever-changing consumer tastes. 3) Take appropriate measures to improve member rights and conversion rates, and develop your own core competitiveness. At present, Koala Haizhuang is about to transform into a member e-commerce company, so attracting new products is no longer the focus of Koala Haizhuang's development. Koala Haigou needs to work hard on the membership system to enable more users to convert to black card members and be willing to renew their membership. At present, Koala Haigou has continuously upgraded its black card rights and established a membership day. In the future, it is necessary to continue to increase its rights and interests and launch other activities to increase member conversion rates. For example, a personalized customized discount package is launched for members, and more complementary product combination sets are given to choose from. These methods can greatly eliminate consumers' selection and price comparison steps and enhance users' willingness to convert to members. A perfect membership service system and a large membership scale can become the core competitiveness that distinguishes Koala Haigou from other cross-border products. Author: Agent Nick Source: Agent Nick |
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