Electricity dealers use consumer "ignorance" to make big money

[East elder brother Reading Electric quotient] This time last year went to Hangzhou, visited Ali a few previous dozens of employees, a big guy assistant, said a lot. East elder brother has a point of view, he is not very understand, "do electric dealer only information asymmetry can make money." ”

Yes, it is estimated that many people do not understand, should be very confused, the Internet is not broken information is not transparent? Jack Ma created Taobao, Cat, is not to allow users to freely and equally choose the highest cost-effective goods and merchants to choose transactions. Commodity information transparent, merchant information transparent, purchase record evaluation transparent, plus Alipay, in order to achieve the greatest consumer interests of fairness. Users online by the traditional unscrupulous merchants deceived fear, Taobao is committed to breaking the information asymmetry, trading unfair, Taobao Cat captured the heart of the user, become the largest electric business shopping platform. These are irrefutable facts and truth, how East elder brother put forward "do electricity quotient, information asymmetry can make big money of crooked?" ”

Why are sellers and merchants so bitter?

How to win in the business competition, rely on the brand is to rely on the cumulative, it is not discussed here. What about commodity differentiation? Minute was copied, today on the line of hot new products, the next day no more than the third day there is a lower price of the same paragraph out; service differentiation? As long as it is a useful sales strategy, the basic will also be learned, such as the most popular carving ye-fu oil that set of play basically has been out of date. Brand has not had the opportunity, the commodity differentiation and the service difference Basic also has no, that only then has the price war, on Taobao has made the long-term excess premium really is very difficult. This seems to be the choice most merchant brands have to face if there are other options.

Because the information is symmetrical, the gross profit margin is getting lower, and the labor cost is more and more high, and the marketing cost is more and more high, coupled with the user-biased complaints evaluation mechanism, the credit scoring mechanism, the whole seller in Taobao operating pressure more and more, the entire Ali Department of the ecological deterioration. Sellers merchants more and more bitter force, in fact, is an inevitable!

The dilemma of traditional brand merchants after information symmetry

The vast majority of people made a mistake, for Taobao Cat, as well as Beijing east such a platform, of course, to achieve the largest information transparency and symmetry, materials, material, after-sales service, as well as a variety of user evaluation information, based on this to help users find the highest cost-effective goods and services. But for the brand, this is the most fatal injury! The object of this article is not the platform, but the merchant and brand in the platform.

The premium ability of the brand depends on three kinds, one is the accumulation and influence of the brand; the second is the differentiation of product design and service, the third is to rely on users have no choice, or the excess premium of information blind area. China's reform and opening up to 40 years, the development of the brand is almost the 90 's after the things, the brand accumulation is far from, such as Jinjiang apparel brand is basically hit by the CCTV ads, hit a well-known. Product design, have copied overseas also have their own design. These are the three or four line brands that sink to the three or four-tier cities to get a relatively premium base, and, of course, more importantly, because the international line of brands cannot sink to three or four-tier cities, users don't have that much choice and the brand gets a premium. To be blunt, users have no other choice. And the internet has broken the regional barrier!

When Zara,h&m and excellent Uniqlo, such as the first line of international brands (non-luxury brand) to 200-300 yuan in the price of the cat on the day, those in the department store end of the thousands of fake foreign brands, how to hang live! When Taobao has no integrity of plagiarism, differentiated design is not, and any service innovation can be imitated minutes. Domestic three or four line clothing brand in Taobao cat inside, to the top of the international brand, but the factory shop lower prices down. Instead, it became the sandwich layer, with both ends being bullied.

East Brother This two years back to County home, family always said Taobao is good, one is the line of the brand choice more styles; two even the same brand line is also cheap, offline price too pit Dad, basically can buy online not to buy offline. But after online shopping, there is a strong price anchor effect, always feel that the line sold expensive.

Four cases of making money from asymmetric information

In a highly transparent market competition, basically the merchant's gross profit margin is close to the bottom line, and once some new players join, because Taobao Cat's credit system, will promote no bottom line of the bid, and then you will find that many businesses are at the cost price, or even lower than the cost price of the sale of goods, 9.9 of mail, There are also 3 of dollars of mail, really not the lowest only lower.

All is let transparent competition to blame, look, Taobao business is a dead end, so we see is a superficial change to big sellers, some sellers suddenly rich, suddenly disappeared! Is there really no solution?

Information transparency under the competition, seemingly without flaws, in fact, the flaw at ease. East elder brother here to cite several examples of Internet information asymmetry to make money.

East elder brother do not need 360 navigation, also need not good 123, of course many East elder brother fan also do not need, but if you go back to see your parents the elder person of the internet hundreds of millions of users, also use navigation website. In our seemingly simple baidu.com, youku.com,taobao.com is not easy to remember, but in them there is an insurmountable barrier.

Listen to friends talk about Melissa, did Baidu's history of the most important three decisions, the first is to persuade Robin Li to return to business, the second is independent do search, the third is 2004 years 50 million bought xingping good 123, now is just two navigation keyword, a year can bring more than 50 million revenue. The navigation website has also become the Internet product with the lowest technical content, lowest operating cost, but the highest rate of return. The reason why there is such a great value, especially the launch of the electric dealer, is because it has not been online, or just net users, most of them are "white" "Blind", what you recommend them, what they use, frankly speaking is the use of information asymmetry. The user is like a ship in the sea, no matter what decision, desperately waiting for the lighthouse to indicate the direction. So a large number of users because net time is too short for various reasons, and "ignorance", of course, does not mean they can be deceived.

Another case is a founder in Nanjing, he has dozens of accounts, add up millions of micro-credit fans, in the cost of finding the best-selling promotional products, and then to Alibaba to find the source, and then in the micro-letter on a higher than the cost of a higher price to recommend to users. Every product he chooses is a hot item and makes money. If the Internet is transparent, users should go for a good buy instead of a micro-letter purchase. Only product will brand special sale, the first is a cost-effective dry, of course, a good deal is also just Taobao inside a variety of brand promotion discount to take out to do group buying channel, in the final analysis, the only product will be Taobao apparel category inside a subset, or even the same goods, Taobao more cheap, why more and more users choose only product will it? So a lot of users time and energy is limited, can always pay attention to different platforms, really want to around analysis, also really tired.

The third case is happened in the days of the cat Jingdong, of course, many people have been accustomed to it. Whenever the festival, Ali and Jingdong will take money to subsidize businesses to play, at cost price, or even lower than the cost of selling products. Big promotion Day, how many consumers buy, or offline retailers, and even participate in the promotion of the merchants themselves bought. The platform's small two estimate is also flattering! So whenever the government repeatedly orders, or the media criticized the electric business fake promotion, East elder brother standing beside haha smile, if see the Sales promotion day earnings margin is basically have misery speak! Selling below the cost price is really the truth, how can no one believe it! Of course, the point is not to tell you on the promotion day to rob the money of the platform. And why many consumers do not know how to around, how did not see the lower prices of goods?

Tung once let many Ali Baidu and other internet big guy answer a question they can not answer: Days cat Strong in the apparel department of non-standard products, the vast majority of users choose Taobao Day cat shopping is normal, then the standard products 3c communication products, why users do not choose the price of goods and service experience more protection of the Beijing East? In the third quarter of the financial results, the Beijing-East quarter active users but more than 60 million, there are almost 200 million more Internet users do not need to Beijing East? Answer for what reason? Liu said, commodity prices and services, is the impact of user decisions of the three major elements, old Liu can also come to answer this question!

The fourth case is double one of the top 10 finalists of the two brands Jack Jones and Uniqlo, is this two traditional electric operators more powerful operation, perhaps we think that the day cat gave more resources. Of course, the brand of resources is really not small. Because these two brands of goods are cheaper, or better service. Of course, these are important reasons, more important reason, tens of millions of people agree with the two brands, rushed in directly to buy, and did not compare other brands of goods. In fact, the user is very strong self-preconceived judgments, Taobao day cat daily large number of users directly search brand + flagship store, are more typical, this group of people are simply impatient to do comparison.

A chance in a dilemma, don't die on your own

Internet information asymmetry is caused by the user itself, and the information is not called the merchant and the brand creates the profit space, but is no longer the simple low price thinking. One is that its own education and net have long been caused, some people just don't know so much, so the luxury of fakes always have space, the second is the user's limited time and energy, which is likely to compare so many sites and merchandise; The third is the user lazy to compare, the habitual choice of their trust, enough, two times the cost of choice is too high The fourth is the user innate cognition problem, directly ignores the brand and merchant that he does not pay attention to.

East elder brother is a article to break everyone (including Ma Yun) think of common sense, or we do not have this common sense! Preconceived is that the internet has broken the information asymmetry, the Internet is the natural information symmetry, can only always focus on competitors, die knock themselves. The nature of the Internet (electricity quotient) is indeed to eliminate information asymmetry, but the person is subjective, this is two different things. A large number of people face the Internet, in the face of the long online shopping world, they are a confused, they need to be guided to tell, what is worth buying, not just rely on a set of search parity tools.

Say so much, to the end of the final!

User natural silly, natural have "measured", and their attention points are different, definitely more than price, do not die in the price war! The second is in Taobao cat Jingdong system, after all, it is difficult to avoid transparency, in the sales in a passive situation, the establishment of their own "official website", the user and other merchants, commodities isolated, the establishment of their own fan group is very important, long-term things.