Why the Internet giant love forced Low brush wall?

Text | Sun Hongchao

As a means to penetrate the rural market, wall-washing has always been a favorite for IT vendors and appliance makers; however, what happens if tall Internet giants also fall in love with this Low Low wall?

Recently, the official microblogging Jingdong Mall made such a slogan: "Both to go abroad, but also to the countryside; tall up into the New York Times Square, go down to the countryside can be painted red brick wall." And with the two Photo: One is a huge ad in Times Square, New York, while the other is the slogan of a red brush on the peasant's wall.

This nearly 40 billion U.S. dollars in market capitalization giant is looking to the vast rural land. In this battlefield is not the Jingdong competition, its largest rival Taobao last year in this area has been voiced: "life want to hurry up on Taobao." Next to the slogan is, "want to get rich, Less children have multiple trees. "And" hard-working is the right hand of happiness, thrift is the left hand of happiness. "

Does it look a little like? However, in the Internet city demographic dividend gradually disappear today, giants brush the wall is an inevitable move.

The most is the style of the wall brush

In the recently held Jingdong caravan event Jingdong Mall CEO Shen Haoyu Netease Technology said the wall ads is to promote the Jingdong channel sinking strategy one of the market initiatives to allow more 3 to 6 cities and regions to understand the user Know Jingdong. According to the introduction of Jingdong: "At present, 13 districts and counties such as Tongnan, Fuling, Wanzhou and Jiangjin in Chongqing have wall-to-wall advertisements." The Jingdong side said that the project will start from the fourth quarter of 2013 and will basically be completed in March this year , Has now reached more than 8,000 banners in 145 cities in the country.

According to Netease technology, rural advertising is mostly brush wall ads in fertilizer, pesticides, agricultural machinery and other fields, and the effect is quite direct. Obviously pegged to this area is by no means Jingdong a, as early as last year, the Internet had exposed the wall of peasants Taobao brush out the "life wants to be good, quickly Taobao" slogan. In addition, Baidu's "want to sell, find Baidu", Dangdang "hometown fellow, shopping to Dangdang", 360 "only a good child, safe only 360" and Netease's easy letter " With easy letter, provincial bill "and so on.

However, according to Netease Technology, in addition to high-profile publicity outside the brush wall, several other Internet companies on the wall is not a high-profile thing, 360 and Taobao publicly declared that brushing the wall is not an official act, Taobao said the place should be " Village "local residents spontaneously publicity.

How big is the market?

A natural question is, what is the market for the Internet in rural areas?

According to a report released by Taobao in 2008, online shopping in the second and third tier cities, the central and western regions and rural areas sprung up, accounting for 73.20% of the total online shopping. The same data from Taobao show that in 2012, the average net purchase of netizens in China's county areas nearly 6,000 yuan. According to a CNNIC 2013 report, as of the end of December 2012, the number of Internet users in China reached 564 million, of which rural Internet users accounted for 27.6%, an increase of 1.1% over 2011. As of the end of 2012, the proportion of Internet users at primary and secondary schools and below increased by 2.4% to 10.9%.

The latest CNCC report shows that "as of the end of June 2013, the proportion of rural netizens among China's netizens was 27.9%, reaching 165 million, an increase of about 9.08 million compared with 2012. In the last six months, rural netizens The scale of growth rate of 5.8%, slightly higher than the town. "

These data show that "the disappearance of China's Internet demographic bonus" is more accurate in saying that the Internet dividends in the cities have disappeared, while the rural Internet has just entered a period of accelerated development.

The vast territory of China has caused much of the infrastructure to develop slowly in rural areas, but with the gradual decline of the Internet and the proliferation of smartphones, the barriers no longer exist. To the Internet companies, this huge crowd is like an untapped treasure. Almost all companies are coveted in this market.

Who is it to attract the brush wall?

In recent years, sinking channels has become the hottest topic for Internet companies, but reminding these giants that the cities in China outside the first and second tier cities are divided into two levels.

Let's talk about the core users attracted by the brush wall: five cities, six cities, that is, the traditional sense of the county or even the country. Netease learned from the situation, the current part of the overall user awareness and use of the Internet is still very early stage, requires a lot of education costs. And although the overall market share of the five or six-tier cities as a whole is huge, subject to the development of the local economy and consumer attitudes, the average individual's potential for consumption will be very limited. As a whole, the cost of new customers for individual users will be even greater high.

In addition this part of the user acceptance of online advertising is not high, the giants are repeatedly publicity smart phone advantage is still the implementation of the most simple telephone SMS + mobile phone news features. At the same time because the city is too small, mobile maps, public comments difficult to have room for survival, relatively speaking, online literature, online shopping, paid mobile tour instead there are some good prospects.

For online shopping, fifty-six city logistics is always an unavoidable problem. Jingdong proud to build self-built logistics system for many years, according to Jingdong public information shows: As of March 31, Jingdong self-built logistics has covered 495 cities nationwide, accounting for nearly 75% of the number of cities in China. Jingdong also joined the Ministry of Agriculture led the "information into the village households" project and plans to gradually docking in 2014 within the country about 10000 rural information service stations, as a network purchasing point, as well as rural logistics distribution station and Since mentioning. According to Jingdong prospectus information shows that the next 3 years, Jingdong will invest 1 billion -12 billion US dollars to continue to increase logistics construction, the goal is to make the country's vast county, rural users can enjoy the convenience of online shopping.

However, this large number of figures does not translate into a real user experience. Even in the sinking caravan, there are still reporters who have been evading threats to Shen Ho-yu and claim that the user experience in their hometown is not good. According to Netease Technology, most of the five or six cities in Beijing Jingdong is still through third-party distribution, there are few Jingdong own distribution business.

Shen Haoyu given the answer is that Jingdong will not consider the cost of logistics can not control the moment, the most important way now is to encourage employees to return to their hometown of fifty-six cities to start businesses, the income and the number of orders linked to mobilize the enthusiasm of the salesman .

Coincidentally, the domestic express delivery giant SF also tried to enter the five or six cities by this approach, SF insiders told Netease Technology, SF front view in the "last mile" force, but the company just to encourage employees to venture in rural outlets Shunfeng, and Keep direct, not for public recruitment.

In recent years, Internet manufacturers are keen to play the rural card, but in fact the channel sink is not as simple as imagined, every household needs appliances, for example, those home appliance chain giants still can only sink to the fourth-tier cities, real Few involved in rural markets.

For Internet giants, the third and fourth tier cities is their most important point to grasp at this stage, in this regard they have one of the best learning objects: the only product will be.

Third and fourth tier cities king

The past two years, the only product will be from the original "bloody market" growth for the Chinese e-commerce pole, the only difference between the only product and other e-commerce is that a large part of its users from third and fourth tier cities, and other electricity Business users mainly from a second-tier cities.

As we all know, in the field of the Internet, tier one and tier two cities are often the core areas where the giants' service focuses on customer focus and revenue generation. In the third and fourth tier cities, there are often certain groups of users that the giant has temporarily neglected, or they are not precisely covering this part of the user base. Vipshop's user orientation is focused on the third and fourth tier cities, to avoid the challenges of competitors or giants, to avoid the giants of the core business silently plowing the vertical market.

The only product brand discount to meet the can not afford the luxury but can still wear the brand name of the three or four line city user psychology. It meets the three or four line has a certain economic strength of female users a brand satisfaction and vanity. Such a simple business model for the only product will be more than 80% repeat purchase rate, but also to its market value once exceeded 10 billion US dollars.

In addition, the third and fourth tier cities have also made preparations for the acceptance of Internet companies. In recent years, they fled Beixingguang to become the voice of many people who wander in the first and second tier cities. Especially for many practitioners in the Internet industry, many people Has been put into action, returned to his home for a new life. This brings talented people to the third and fourth tier cities.

Compared with the first and second tier cities and the fifth and sixth tier cities, the third and fourth tier cities have a huge consumer base, more substantial disposable income and strong consumer desire, and a huge market space. Perhaps in the future, there will be more VIP products appear.