Looking at China's retail industry, the community should be the best model with the lowest cost model among all businesses. It has done business in the community, downstairs or even at the door of the neighbor's house, and opened up the last 100 meters or even 1 meter with consumers. This is the last 1 meter that e-commerce, live broadcasting, supermarkets, and community stores have not gone through other modes of commerce except for express delivery.
According to relevant statistics, the retail scale of China's community** in 2023 will be about 8365100 million yuan, and the number of users will increase from 201.2 billion in 2017 to 8 in 20234.5 billion. The market size of China's community ** is expected to reach 3500 million yuan. I have to admit that this business model has strong vitality and competitiveness. During the pandemic, the growth rate of the community** was as high as 300% in 2019, still more than 60% in 2021, and more than 50% in 2022. This is a height that live broadcasting, traditional e-commerce, and supermarkets cannot reach. Some people even predict that in the future, China's retail pattern will be shelf e-commerce, live streaming, and community.
The era of "traffic is king" has passed, and the era of "retention is king" has quietly begun. The traffic that can stay is "private domain retention", which is the most powerful ** for repurchase and monetization. And the community** is the best model for private domain retention, and there is no one. Because the community** is the neighbor's business, it is a business model based on trust and emotion between acquaintances and semi-acquaintances in advance pre-sale, pick-up the next day, or delivery.
In this mode, the people in the group are customers and neighbors, and the parents of each family have more or less understanding, and the head of the group can have an in-depth understanding of their customers, know their needs, and can recommend products in a targeted manner, providing them with not only products, but also a full range of services. This kind of ability to sell goods is incomparable to any model.
At present, the cost of traffic acquisition on major e-commerce platforms is getting higher and higher, and how to improve the repurchase rate has become the most important and urgent task for all merchants. Repurchase has also become the core driving force of business growth.
However, for the community, generating more orders in a fixed flow, this method of reverse volume extraction solves the problem of difficult repurchase. The first mode of pre-sale and then delivery, with a large amount of low price, at the same time eliminating a large number of logistics and transaction links in the middle, the cost is greatly reduced, and consumers can also buy better quality products with lower **.
We choose to be the ultimate in cost, so that we can give the profit to the consumer and the head of the group"! In 2023, Mr. Jiang Chenghui, the manager of the childhood tongue brand of the ** quick-frozen rice noodle brand in Meituan, said: "The quick-frozen rice noodle products on the tip of our childhood are all high-frequency consumer goods, which are just needed products, and they must be repurchased when they are used up. On the basis of achieving the ultimate cost, as long as it can continue to provide value and refined operations, it is possible to continue to repurchase, and the tip of my tongue is also working towards this goal! Regarding this point of view, the outstanding sales performance of Childhood Tip of Tongue on Meituan Preferred in 2023 gives the best evidence: Childhood Tongue, which entered Meituan Preferred in May 2023, continues to dominate the top 1 position in the sales volume of its single product egg yolk cheese paper skin siu mai, and on the winter solstice in 2023, its product rhubarb rice dumplings will also continue to dominate the sales volume of the list.
It can be said that the high repurchase rate makes the community**, and the community** will also be expected to become the best business in the next 10 years because of its high repurchase rate.