Lin Youde asked: "Is our platform taking the low-price route?"

"Yes, the lowest price route will win by volume." Zhou Yujie said: "Now Tmall, JD.com is taking the high-end route, and Taobao itself is a mid-range. Although Taobao has made mistakes at present, it is not feasible to take the same route. If we want to counterattack, we must take a different route.

Group buying is a way to reduce prices. Another way is to buy directly from the manufacturer. We open up the supply chain at the lowest cost so that users can shop directly from the manufacturer. As long as our traffic is enough, countless users can add up to bring enough volume to the manufacturer and help them get rid of various dealers."

Manufacturers cannot give products to consumers directly. First, because the information is opaque, and second, the purchase volume of individual consumers is too low, so they can only seek help from dealers. In the era of online shopping, they seek help from online shopping platforms.

"But can the manufacturer agree? If the price on our platform is very low, it will affect their offline physical stores and Taobao and JD.com sales. This is to cut off oneself from its own channel." Lin Youde frowned and said, "As far as I know, Taobao and JD.com have tried to make changes in this area, but they all failed in the end."

In the past 2000s, when Taobao rose, the cost of online marketing was much lower than that of offline multi-tier dealers, which led to the very cheap online shopping price in the early stage, breaking the interests of offline dealers.

And these people will naturally not be willing to do so. When this power gathers, no brand dares to ignore it. No matter how convenient the Internet is, it will not be able to popularize everyone. If you offend offline, you can only sell your own products through the Internet in the future. Wouldn’t you be seeking death?

Therefore, under the multi-party game, the three parties formed a balance. The prices of online shopping platforms increased significantly, which was only slightly cheaper than physical stores, or the same price, forming a balance of interests. Some brands will also launch special online products, forming two types of products offline, avoiding price conflicts between the two channels.

Although online shopping platforms have been a major increase in offline physical stores in the early stages, on the one hand, no manufacturers will agree to give up offline and only online. On the other hand, after the price increases, their own profits will increase significantly.

Taobao is a little better, it is just a third-party platform. JD.com’s model first purchases it yourself and then sells it to consumers. The profits will be amazing after the price of the product is raised. This is also the reason why Alibaba is jealous, so it created a Taobao mall, which was later Tmall.

As a result, the mission of the Internet platform was gone and it became a money-making machine with amazing profits.

Zhou Yujie smiled and said, "Who said I want to cooperate with a brand? I sold it on Pinduoduo, so it won't be a big brand. Pursuing cost-effectiveness is the only purpose of Pinduoduo's existence. I don't even want the so-called brand premium."

"Then how do we ensure quality?" Lin Youde asked.

Zhou Yujie smiled and said, "Who made Apple's phone?"

"Foxconn!" Lin Youde quickly answered: "Are we looking for OEMs from big brands?"

"Yes, it's OEM, especially those with ability." Zhou Yujie nodded and said: "Now a product is in the hands of consumers, it is usually OEM production. Brands make a lot of profits, and then it's a few layers of dealers. After these layers of procedures, the prices of general products may have increased several times. If we can do this, we can reduce the price of the product to the extreme."

The ex-factory price of the product is generally about 3 times or even more different from the price that goes to consumers. Even if Zhou Yujie is not professional, there are actually a lot of data on this aspect on the Internet.

For example, down jackets are usually purchased at least 800+, and expensive ones are available for 2,000+, but according to the data on down jackets, the average export price of a down jacket is US$28.

Or from the annual report of a giant company, for example, in a certain year, a certain force basically only makes air conditioners, and the air conditioner base built in a certain place has an annual output value of 10 billion yuan and a production capacity of 6.5 million yuan. The average ex-factory price of an air conditioner is 1,500 yuan. However, on the market, civil air conditioners are basically above 3,000 yuan, while central air conditioners or vertical air conditioners are more expensive.

If it is OEM, then the brand owner will make higher profits.

"Let OEMs sell directly on our platform can indeed avoid the trouble of merchants' conflicts between offline and online channels, but many products are not easy to walk on this road." Zhong Guangwei said.

Zhou Yujie smiled and said: "Of course, home appliances, digital products or other products that involve safety, user experience, and are more expensive. They won't work on platforms like ours, at least not in the early stages.

I have never thought that these products with relatively high premiums have been occupied by JD.com and Tmall for a long time. There is no need to fight them head-on. We can do simple things first.

For example, tea cups, socks, hardware tools, kitchen small items, clothes hangers, toilet paper, etc. Many of these are fast-moving consumer goods. Users generally do not value the brand, and the brands on the market generally dislike the production troubles, so they all adopt the OEM model. If we can provide channels for direct manufacturers, then for manufacturers, this is the lowest marketing cost."

The road that Taobao and JD.com failed, Zhou Yujie would not go again. No matter how big the online shopping platform is, it would not be possible to suppress all merchants. Merchants pay attention to offline channels, which would mean that Internet platforms like Taobao could not destroy the lives of offline multiple layers of dealers. At most, they would have some impact and make them less damn.

For the already formed huge interest groups, only by jumping over and achieving a dimensional reduction strike can you succeed. Of course, this success is not impossible to defeat all merchants, but it is still possible to achieve a greater impact.

"Then we are going to start looking for suppliers of these products now?" Zhong Guangwei asked.

Zhou Yujie shook his head and said, "No rush for the time being. Once we do e-commerce, it is easy to be noticed by Alibaba and JD.com. So in the early stage, we only made one product and treated it as a vertical e-commerce to operate it.

When our users have enough numbers, we will move to comprehensive e-commerce!”

"Vertical e-commerce?" Lin Youde asked: "Mr. Zhou, what products do we make?"

Zhou Yujie smiled and said, "The products we want to make must be what most people need, and they are also severely oppressed by dealers in the production process.

Lao Zhong, you Quxin has been purchasing!”

"fruit?"
Chapter completed!