Picture source @ Visual China
Since Baidu cut off most non-core businesses and ALL in AI, AT has opened a full-scale war in several new formats. There are more or less AT shadows behind well-known companies such as taxis, local life, and new retail. In the future strategic direction of these bets, Ali and Tencent continue to stage direct confrontation or agent wars.
In the second-hand ecommerce market, Ali carry idle fish directly into the game to win a city, now the market share has exceeded 70%. With the transformation of Tencent 58 Group and the merger of JD.com and Love Recycling, the T-Class team in the second-hand ecommerce market has also begun to take shape, and the new battle of bloodshed is about to begin.
According to the "2018 China Used E-Commerce Development Report" (hereinafter referred to as the "2018 Report") released by the E-Commerce Research Center, the second-hand transaction e-commerce platform market, the proportion of idle fish accounted for 70.7% first, followed by the transfer account The ratio is 20.38%, the second shot is 6.37%, and the love recycling is 3.18%.
Only from the camp, Ali Yuyu and Tencent's three platforms almost won the entire market. From the perspective of the difference in mode, the free fish has always adhered to C2C, love recycling is focused on the second-hand digital C2B2C platform, the comprehensive development of the transfer, patted second-hand has also begun to focus on C2B2C in the past two years.
As a new business that is still in a period of rapid development, there are still many variables in the future of the second-hand e-commerce market. Which model can better adapt to the development of second-hand e-commerce, who will achieve rapid rise in the next few years, To B or NOT To B will determine the final end of the battle.
Second-hand e-commerce period?
According to data from the Ministry of Commerce, the total retail sales of consumer goods in China reached 380.87 billion yuan in 2018. According to the "2018 Report", as of the end of 2017, the transaction volume of idle goods in China reached 500 billion yuan, and it is growing at a rate of more than 30% per year. It is expected that the transaction volume in 2018 will reach 700 billion yuan. In terms of proportion, the size of China's idle goods transactions is only 1.8% of the total social zero.
Moreover, Xianyu officially disclosed that the total amount of transactions on the platform in 2018 was 100 billion yuan, that is to say, second-hand ecommerce accounted for about 30 percent of the overall market.
In contrast, the market share of second-hand transactions in the United States is far greater than that of China. Due to the large population in China, it gradually caught up with the total retail sales of the United States. In January, eMarketer, an international market research agency, reported that total domestic retail sales in China is expected to reach 5600b this year, 100b higher than that of the United States. It can be seen that the two countries are already very close to the scale of retail. However, the market of second-hand trading was compared, but the gap between the two sides was very large.
Compared with other countries' second-hand trading markets, the United States has reached about 2 trillion yuan, which is based on the United States. It can be found that there are still large dividends in the Chinese second-hand market. Moreover, second-hand transactions are very efficient, which is a natural advantage for online transactions without “intermediaries”. AT is now in the layout of second-hand e-commerce, more to explore which model is more suitable for the development logic of the industry, in this regard, Ali and Tencent are taking a different path, which is the biggest attraction in the future.
Why is the size of the second-hand trading market in China? This has a great relationship with the development of China's commercial phase, and the two aspects restrict the activity of the second-hand market in the early years.
First, the restriction of the demand of consumption.
The time of consumption promotion, supply-side reform, and consumption-based economy has not long, and the global financial crisis in 2008 and after 2008 is the time node, and the Chinese economy has experienced a big transformation. In the past ten years, China's economic model has changed from the changed investment and the export-oriented to the consumption-oriented. In the first few decades of the big head of China's economy to the economy, the majority of the people's consumption is just on demand, and the characteristic of this consumption pattern is that it is difficult to produce rich idle items.
It can be said that the transformation of the consumption-oriented economy has continued, and the development of commodity consumption has brought a rapidly developing soil for the second-hand trading market.
Second, the constraints brought about by the offline multi-level trading chain.
The growth in the index of idle goods brought about by consumption upgrades and the development of second-hand e-commerce platforms have brought new breaks in the transactions of the second-hand market in China. The need for second-hand idle items is permanent. For students or young people who are just entering the workplace, as well as users with average income, buying second-hand idle items is a good choice.
However, using the second-hand goods as non-standard commodities, how to standardize the second-hand goods and how to protect the buyers on the platform rules will play a decisive role in releasing the demand.
The < 2018 report > showed that in the questionnaire, the proportion of second-hand ecommerce platform users was 38.22%, followed by 31 < 41 years old (31.21%), and 10.19% (over 41 years old). The data also confirm that young people prefer to trade second-hand idle goods. In used cars, second-hand luxury goods, is also a young consumer group.
It can be said that in the context of consumption upgrading, the second-hand trading market has great potential in the future. In addition, the entry of the two giant beasts of the Chinese Internet AT will further accelerate this rhythm.
The dispute of AT reproduction mode
Second-hand trading is not a mystery, and before the emergence of second-hand e-commerce, there are very well-known flea markets, old market and other regions in various cities, and there are almost a flea market in each university, which is used to meet the idle commodity exchange of the young group of college students. But the number of idle items in the region is limited, not matched to the actual just-demand consumption, and the off-line second-hand recycling is to the limit, leading to the fact that many people would rather send the idle items to their friends or to lose them and do not want to sell them. The scarcity of supplies determines that the size of the traditional second-hand transaction is difficult to make.
The development of the Internet, so that second-hand idle transactions to find the best channel. In the PC era, netizens have begun to publish information on the sale of second-hand items on the BBS, forum, many universities have appeared campus forums online and offline flea markets, and later 58.com second-hand channels, Taobao second-hand channels and so on become second-hand platforms. With the development of mobile Internet, second-hand trading is no longer just a channel, but an independent platform.
For example, Taobao second-hand channel split independent Xianyu, 58.com second-hand channel upgrade turn, and JD.com will close the beat after replanning to clap two hands. With the gradual refinement of the second-hand e-commerce market, such as Guazi, who focuses on second-hand car trading, Confucius Old Book Network, which focuses on old book trading, and the emergence of second-hand platforms such as Plum, which focuses on second-hand luxury goods trading, in addition to the emergence of second-hand e-commerce platforms such as recycling, looking for beautiful machines, recycling treasures, and enjoying things, the emergence of second-hand ecommerce platforms such as catching more fish, second-hand ecommerce ushered in a prosperous moment.
The expansion of China's Internet field can not escape the control of giants. In recent years, the field of takeout has the shadow of giants in the field of shared bicycles, and the second-hand e-commerce market can not escape such a fate. Without the intervention of Internet giants, the second-hand e-commerce market can not prosper and develop so fast. Throughout the current second-hand e-commerce market competition, in the final analysis is still the model dispute between giants.
Alibaba's leisure fish was first involved in the second-hand e-commerce trading market and is a practitioner of C2C. Although there are C2B2C attempts, C2C is still the core model. The transfer of C2C mode is a joint investment between Tencent and 58. The "pat" and "love recycling" have been strategically merged. They are all second-hand commodity trading platforms of JD. The relationship between JD and Tencent has been very embarrassing and can be seen as Tencent is also behind the "pat" and "love recycling". It can be said that Tencent has a wider layout in the field of used e-commerce.
The same is to try C 2 B 2C, turn the excellent fast leisure fish excellent products for four or five years. The original product service was officially launched in June 2015, engaged in iphone recovery and consignment service, and introduced the former Apple Genius Bar after-sale quality inspection engineer to join the team, and officially changed its name to "transfer excellent product" in May 2016. the original product service was officially launched in June 2015, engaged in iphone recovery and consignment service, and introduced the former Apple after-sale quality inspection engineer to join the team, which officially changed its name to "transfer excellent product" in May 2016. According to the data released by the transfer, the transfer of premium products was once the number one second-hand mobile phone transaction. At present, this is already a very important business, is the shift to C2B2C positive transformation of the most important results.
JD.com revived the idea of patting second-hand products in order to strike both C2C and C2B2C. On April 16, 2019, he released idle functions in the new version of the second-hand release, released the function of Baina goods, as well as the bazaar service, focusing on JD.com resale and spare parts library goods, which can be traced back to the source. Marking, the second-hand formal transformation to the C2B2C model, coupled with the merger of love recycling, will adhere to the C2B2C model.
C2C model is more friendly to sellers, free pricing and no middleman "domestic helpers", whether to sell depends on the seller's mood. But it is not a small problem for buyers, although the platform will "force" sellers to follow the rules in terms of operating rules, but these are measures of an ex post facto nature. Therefore, we will find that Xianyu platform on a lot of disputes. In addition to some real disputes, many are caused by differences in understanding between buyers and sellers.
According to the 2018 Report, 38.22% of users reported having experienced consumption problems on the used e-commerce platform. Among them, sales of fake and fake, shoddy (57.52%), consumer rights protection (66.88%), platform supervision is not in place (53.5%) and so on. In the C2C model that favors the seller's friendliness, the above problems are unavoidable. After all, the platform has limited energy.
On the contrary, the self-operation mode like XX good product is more friendly to the buyer, and the platform bears the important responsibility for screening the "second-hand goods". The user only needs to be satisfied with the price of the product displayed by the platform, OK, get back to the home, and enjoy the after-sales service of the platform. But this buyer's freedom is based on the sacrifice of a seller, first of all, even if the platform doesn't want to make a profit, the cost of building a self-employed business is bound to come back in the price difference of the second-hand item acquisition. In addition, in the C2B2C mode, the seller is directly communicating with the platform, so it loses a lot of autonomy, such as how to set the price on the platform.
In the final analysis, C2C or C2B2C is just a more selective choice for sellers or buyers.
Seller VS buyer who is more important?
The demand for buyers and sellers in the second-hand e-commerce market is fixed. The two sides have the same demand to reach a transaction, which can minimize the transaction cost. However, the second-hand e-commerce market not only faces the problem of counterfeit goods in the traditional e-commerce market, but also faces the transaction items of both parties. Disputes caused by satisfaction.
The leisure fish is taking care of the seller's route, relying on the Taobao grade, Alipay real name certification, Sesame Credit, Taobao credit evaluation, etc. to present the user's credit data in real time. The buyer can establish a certain trust relationship with the seller based on the data, and the platform allows the individual to Buyers and individual sellers directly docked, through the negotiation of prices between the two sides to achieve a transaction, to achieve idle circulation, so the free fish is biased towards the seller's C2C model, just because of the Taobao credit endorsement, and Taobao "one-click resale" advantage, the fast fish quickly Become a head player in the comprehensive second-hand trading field.
This light mode is very suitable for Ali, the king of China's e-commerce, with a cat and a large amount of commodity trading. In a certain situation, the "One-key-to-sell" has solved the problem of the development and quality definition of second-hand commodity prices. Because of the price and information of the first-hand commodity, the buyer's information does not solve the problem of equal status. This is Ali's own advantage. In the force C2C, the accumulation of the traditional e-commerce field can be realized by the seller and the buyer. In contrast, the second-hand e-commerce C2C model, which is based on the large-scale e-commerce platform, is difficult to achieve this contradiction.
Tencent's three trump cards are biased towards taking care of the traffic, and the advantages of pat and love recycling are on the B side. According to the data provided by Bida Consulting, in March 2019, the monthly number of live fish APP users reached 24.399 million, and the number of monthly users reached 11.429 million. In the field of second-hand e-commerce transactions on the C2C model, basically It was finished by the fish and the turn.
Therefore, on the one hand, Tencent supports the transition and the leisure fish, on the other hand, the expansion on the B side, pat and love recycling in the C2B2C mode, is basically a leader in the field. Compared with the C2C model, the platform is only used as a platform for connecting buyers and sellers. It is convenient for buyers and sellers to directly contact and communicate with each other and negotiate the entire transaction process. C2B2C is the platform involved in the transaction between the buyer and the seller, providing a complete service, further profit through the difference and the price.
Tencent is a small-scale second-hand e-commerce platform, because there is no strong e-commerce empire as a backing. The development of the C2B2C model is more in line with their current situation.
The next stop of competition: efficiency and trust
When the second-hand trading market was just opened, China's second-hand trading re-routed in Europe and the United States, and progressed in the exploration, the second-hand e-commerce trading market also developed rapidly from B2C, C2C mode to C2B2C mode. However, in developed countries in Europe and America, the second-hand e-commerce transaction industry has developed relatively mature, and China and developed countries have different credit systems. The establishment of China's credit system is still not perfect. In the second-hand trading industry, the establishment of trust relationship between buyers and sellers is a transaction. A natural weakness in the process.
Tianhao believes that no matter how AT competes in the field of used e-commerce, it is always inseparable to solve the problem of "efficiency and trust", which is a test that all platform vendors can't avoid. For the seller, the concern is how to sell quickly and worry-free, and for the buyer, how to buy the value is good, and both buyers and sellers have a transaction expectation, the transaction expectation determines the transaction effectiveness.
To extend one step further, the transaction efficiency is determined by the trust of the buyer and the seller. For the platform, the trust problem can be solved to better absorb the traffic and improve the efficiency. In the C2B2C mode, the platform intervenes in the transaction, provides the test evaluation report for the transaction items, and provides the consumers with real and reliable purchase information. Establish a trust relationship between buyers and sellers.
Tian Hao believes that under the downward pressure of the economy, the role of the "idle economy" brought about by second-hand ecommerce transactions is more prominent. How to excavate China's vast second-hand e-commerce trading industry, China must explore a second-hand e-commerce trading market based on the perfect credit system of buyers and sellers according to the reality of social credit system, and finally let buyers and sellers and trading platform "win three" is the long-term way.
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