Decoding The "Ten Billion Subsidy": Promoting The Consumption Upgrading Of Brand To The Countryside And Rural Market

        Just last May 24, tmall and Jingdong two major e-commerce platforms officially opened the prelude to the "618" war. Pinduoduo launched the "ten billion subsidy two years ago" at 0:00 on May 22, realizing the production and marketing docking of super large-scale fresh agricultural products and big brand authentic products. Since pinduoduo launched the "10 billion subsidy" in June 2019, it has formed a new consumption mode by means of "precise matching + genuine product subsidy". Other Internet retail platforms have also launched corresponding "10 billion subsidy" to effectively stimulate potential consumer demand.

      According to the latest data released by the National Bureau of statistics, online consumption demand is booming, which has become an important factor in boosting consumption growth. From January to April this year, online retail sales of physical goods increased by 23.1% year on year. Alibaba, meituan, Jingdong, pinduoduo and other e-commerce platforms continue to drive consumption. With the support of housing economy, smart life, cold chain logistics, and group shopping, consumers' cloud consumption habits are forming. Zhang Chunyu, a researcher at the Chinese Academy of Social Sciences and an expert member of the digital Economic Committee of APEC China Business Council, said that in the context of epidemic prevention and control, new consumption patterns such as 10 billion subsidies have become a new driving force to stimulate the consumer market.

To develop the great potential of the rural market and effectively promote the equal rights of consumption is an innovative consumption mode for e-commerce retail platform to adapt to the "better life" in the new era. Materials and pictures

Fireworks in "ten billion subsidy"

On pinduoduo's "10 billion subsidy" channel, the lowest price of the whole network and the real-time increase in the number of orders are drawn, which reflects the real-time activity of China's consumer market.

Zhou Xiaoxi is a cartographer of a new media company in Beijing. As a new "worker", she bought bullet lipstick from pinduoduo's "10 billion subsidy" channel. She found that the price of sea blue mystery face cream and other favorite commodities of girls was mostly lower than the market price. Recently, she has fallen in love with the exquisite products of Chinese products, and has bought the mask of the gazelle, the strength of her father's shoes and the domestic sweeping robot. The post-95 and Post-00's are becoming one of the fastest growing groups of 10 billion subsidised daily living users.

According to the person in charge of pinduoduo's 10 billion subsidy, pinduoduo, in combination with top 100 brands, directly subsidized 500 million yuan through targeted matching and other comprehensive measures, squeezing the space for Shanzhai and inferior products, and promoting the consumption upgrading of "brand going to the countryside" and rural market, thus opening the prelude of "10 billion subsidy".

In a short period of time, the "ten billion subsidy" has become a new consumption phenomenon with low price and substantial benefits from a platform activity. Whether it's fresh agricultural products from all over the world, or "young" domestic brands, or international brands, consumers can now find their choice on pinduoduo's "10 billion subsidy" channel. This Internet model quickly led to the following and innovation of major platforms. It not only provided consumers with products with higher cost performance, but also effectively broke the dual structure of urban and rural areas, developed the huge potential of rural market, and effectively promoted the equal rights of consumption. It is an innovative consumption mode for e-commerce retail platform to adapt to the "better life" in the new era.

More than 10 times faster! Brand official flagship store settled in

The agglomeration effect of e-commerce head platforms is gradually breaking. Short video platforms such as Shuo Yin and Kuaishou have also begun to launch e-commerce business. The online consumer market with efficiency and innovation as the core competitive advantage is increasingly fierce. Behind the growing sales data in the "618" and "double 11" e-commerce consumption festivals, what the majority of consumers really need is big brand low-priced authentic products.

Pinduoduo launched the entrance of "official cooperation flagship store" in the channel of "10 billion subsidy" at the important node of "the second anniversary of 10 billion subsidy", and the number of new brand official flagship stores increased more than 10 times compared with last year.

Consumers can now find official flagship stores in pinduoduo, whether they are the "younger" domestic brands such as big white rabbit, baiqueling, Jiuyang and Huili, or the new cutting-edge brands such as Yuanqi forest, Winona, Xiaoxiong electric appliances and ubras. There are also a large number of international brands such as Unilever, skykey, Adidas, Nestle and so on.

Take the category of small household appliances as an example. In the first quarter of this year, more than 13000 small appliance stores were added to pinduoduo. Driven by the head brands of Midea, Jiuyang and Galanz, more than 600 "brand flagship stores" were added to mainstream brands. At present, new brands such as Mofei, Mitsubishi, covos, yunmi, double easy, Xiaoshi, SKG, Beiding and other new brands of Xinbao Co., Ltd. have also set up official flagship stores or authorized brand flagship stores in pinduoduo.

According to the person in charge of pinduoduo's home appliance business, nearly 70% of the small home appliance brands on the market have opened flagship stores in pinduoduo. It is expected that by the end of this year, most brands will establish a flagship store system on pinduoduo. For big brand businesses, 10 billion subsidy is a new consumption growth market. Big brand businesses find new consumption increment and provide products to consumers that have not been touched before.

Fresh agricultural products take the lead in consumption

The "10 billion subsidy" is not only for popular products such as apple mobile phones, Maotai, beauty products, but also special categories such as fresh agricultural products. It helps fresh sellers find a larger market for just needed goods outside the traditional offline channels, and promote the upward development of agricultural products through accurate matching of large-scale production and sales.

In the first half of the year, Li kuaizu, a fresh merchant born in the 1980s, mainly sold mango, pomegranate, orange, grapefruit, plum and other agricultural products in the second half of the year. With the help of 10 billion subsidies, 100000 packages were sent out every day at the peak.

"I'm subsidizing 10 billion yuan to sell vegetables from my hometown. The best sellers are tomatoes and fruit cucumbers." Zhang He, a post-90s generation from Shouguang, Shandong Province, is busy recently. During the two-year anniversary of the 10 billion subsidy, his shop signed up for nine products to participate in the promotion activities in the fresh food zone. The store headed by the couple received thousands of orders every day, and delivered more than 6000 packages per day during the peak period.

In order to go all out to participate in the two anniversary activities, Zhang he produced the highest quality products. For example, garlic, the most popular currency in offline markets and other businesses is 4.5cm in size, small in size and relatively economical in cost. 5cm is already a hot item in the market. This time, Zhang He chose to directly supply more than 6 cm of "export standard" products. Zhang he said frankly that the 10 billion subsidy has a direct effect on the sales of agricultural products. Consumers drying tables and fruit trays in the comment area are the biggest driving force for him and farmers.

Yu Bencheng, the "second generation of farmers" of Shandong Province after 1995, lamented that his own products such as apples, pears and flat peaches could also be subsidized by 10 billion yuan“ Our latest improvement of pearl cotton aluminum film bag packaging is the suggestion given to us by a Shanghai elder sister (consumer) in the 10 billion subsidy. As an agricultural product manufacturer, we are far less famous than those who sell mobile phones and household appliances in terms of popularity and unit price, and even less beautiful than beauty shops. However, we can also get the same opportunity to participate in promotional activities with high attention such as the "618" consumption season and the second anniversary of Baibu. "

"With the shift of national consumption habits to online, users' online shopping needs gradually cover all categories, and agricultural products are one of the biggest growth points," said the person in charge of pinduoduo's 10 billion subsidy. Therefore, our "10 billion subsidy" has also been adjusted to cover the "rice bag" and "vegetable basket" in an all-round way, continuously inclining resources to fresh agricultural products, and driving up the production of fresher and more affordable agricultural products through the platform flow. "

According to the annual financial report of pinduoduo in 2020, Gmv of pinduoduo's agricultural products exceeded 270 billion yuan, doubling year-on-year. Pinduoduo has created a high-speed road of "agricultural products upward" through the upward mode of direct delivery of agricultural products from the origin to match the current situation of China's scattered small-scale farming, which greatly shortens the circulation and supply chain; A large number of agricultural products in the current season opened the cloud market, and proposed a new solution for the breakthrough of "small and scattered" agricultural products sales.

For example, Guangxi's passion fruit was not even heard of by many consumers in Beijing, Shanghai and Guangzhou. Due to large production and small sales, passion fruit was often unsalable before. In the past two years, driven by the mode of competition, passion fruit has broken through the regional boundaries of Southwest China. It has developed into a net red fruit and become a local rich fruit, bringing real income to fruit farmers.

There are also some businesses to import fresh food to the domestic. Li kuaizui started to do pinduoduo in 2016. He purchased fruits from Vietnam and other places of origin and sold them to all parts of the country. "We sell the best quality fruits on the 10 billion subsidy. We pack them in gift boxes and send them by parcel post at the same time. Moreover, the price is cheaper than offline stores." Some businesses provide Chilean salmon steak, French silver cod, Vietnamese black tiger shrimp, etc. after 10 billion subsidies, "let more consumers eat delicious high-grade fresh food.".

Under the guidance of the Department of market and information technology of the Ministry of agriculture and rural areas and the "analysis report on China's agricultural products online retail market and key single products" issued by the Institute of agricultural information, Chinese Academy of Agricultural Sciences, believes that structural differences drive the front-end upgrading of agricultural products supply chain. The emerging new e-commerce platform and new retail platform focus more on the instant consumption of fresh products, and provide stable orders for the upstream production areas. It is of great significance to promote the rise of fresh products in rural areas, and promote the optimization and upgrading of online retail category structure of agricultural products.