What are the types of social e-commerce ah, which line ah?

--Original title: 2019 China's social e-commerce industry market status and development trend analysis of traditional e-commerce social development will become the trend

Social e-commerce is emerging

June 2019 mid-year e-commerce merchandise promotion of the momentum of the remaining temperature, online shopping 3.0 era, the The "buy buy buy" hand chopping party through their own online store "sell sell sell", with the help of WeChat, microblogging and other social media to the circle of friends to recommend and share their own favorite goodies, at the same time do not need to consider the purchase of goods, inventory and other issues, has been transformed into money-saving masters. Despite the apparent slowdown in the growth of e-tailing, a hot play in e-commerce - social e-commerce is surging.

Traffic dividend tops, traditional e-commerce reform breakthrough

Social e-commerce, a new mode of business in the network platform through the dissemination of the content of the goods sharing to guide the user to consume, in recent years, the wind is strong. Under the wave of "Internet +", "social + e-commerce" has developed rapidly by virtue of its strong viscosity, interactivity, precise user segmentation and huge commercial potential, as well as lower marketing and time costs.

Luo Zhenyu mentioned in his New Year's Eve speech "Time's Friend 2015" that "all future transactions will be social". The current social e-commerce red hot, indicating that "the future has come, and began to popular". Traffic dividend peaked, the giant stood in the e-commerce trend has been set, social e-commerce in the traditional e-commerce to tear open the gap, from the mixed reputation to the capital chase, from today's "involved in the rumor" to tomorrow's IPO, the tenacity of its vitality is amazing.

The current social e-commerce is mainly divided into three modes: content-guided, retail-type and sharing (group) type, typical representative of the product were Xiaohongshu, Yunji and Pinduoduo.

Social e-commerce three main modes of analysis

Source: Prospect Industry Research Institute

People, goods, field decentralization, customer acquisition costs are extremely low

Compared with traditional e-commerce, social e-commerce is the most important feature is the "decentralization", the initiative to the user. Users are no longer the first to generate demand to the e-commerce platform procurement, but based on interest or social relationships, first through acquaintances or community to stimulate demand and then oriented to consumption. Traditional e-commerce transaction costs are mainly composed of marketing costs and channel costs, social e-commerce is mainly social costs, through fission way to grow the user, so the cost of customer acquisition is extremely low.

Comparative analysis of social e-commerce and traditional e-commerce

Source: compiled by Prospect Industry Research Institute

The core value of social e-commerce is the user flow, which is specifically manifested in the operation of the user, obtaining high-quality and stable flow at a low cost, and retaining the user with content and socialization, and then realizing the closed loop of commercial realization.

The two years of 2018-2019 is the rapid rise of social e-commerce in the wind period. 2018 social e-commerce financing has totaled more than 20 billion yuan, Pinduoduo listed as a company with a market value of 26.5 billion U.S. dollars; Beidian, Yunjie, the global catcher and other social e-commerce platforms are also carried out rapidly.

Because almost no threshold is needed, social e-commerce has spawned a group of entrepreneurs who have grown savagely in the absence of regulation, leaving the social e-commerce industry in disarray in a short period of time.

Business model caught up in pyramid scheme controversy Policies introduced to standardize the development

Social e-commerce operation mode is a new form evolved on the basis of C2C (consumer-to-consumer) and B2C (business-to-consumer), this model belongs to the social e-commerce operation of multilevel distribution, which is prone to evolve into a pyramid scheme under the cloak of social e-commerce.

On March 14, 2019, Guangzhou's Peanut Diary was caught in a pyramid scheme and was fined 74.56 million yuan by the Market Supervision Administration. As of September 25, 2018, the "peanut diary" APP formed 31,530 operators as the tip of the pyramid structure, the total number of members amounted to 21,534,555 people, of which the organizational structure of the three levels and more than three levels of members **** there are 214,960,085 people, accounting for 99.82% of the total number of members, the most layers of the chain has been developed to 51 layers. Members throughout the country in all provinces and cities, the amount of commission received amounted to 456744401.69 yuan. There are many members involved in the case, and the number of layers is complicated.

On March 18, 2019, the "Yunjipin" mega cybercrime group set up Shenzhen Qianhai Yunjipin E-commerce Co. Ltd., requiring members to pay a certain amount of money to qualify to join, through the establishment of a multi-level membership system to form a hierarchy, to develop the number of people as the basis for remuneration and rebates, luring others to continue to participate in the fraudulent acquisition of property, suspected of organizing and leading pyramid schemes, was the Shenzhen police "kicked in a pot".

In addition to this, the operation mode of social e-commerce platforms such as Yunjie, Beidian, and Globalfinder have all been caught in the vortex of the question of pyramid schemes. Network marketing because of the means of covert, involving a wide range of groups, the virtualization of the subject, the low cost of violation of the law and the head of the intellectualization and other characteristics, wandering in the supervision of the "gray zone". Social e-commerce platforms are easy to take the wrong path, relying on "pulling heads" expansion-oriented, although social e-commerce and pyramid schemes compared to the various aspects of the big difference, but the boundaries are still fuzzy.

Social e-commerce and pyramid scheme comparative analysis

Source: Prospect Industry Research Institute

Government regulations and the industry's internal supervision is not in place is also a social e-commerce mode of operation is the cause of repeated problems. Social e-commerce continues to grow, the industry is not standardized problems occur frequently, attracted the attention of government departments. since 2015, China's policy supervision policy continues to improve, the responsibility of the relevant departments continue to strengthen, for the healthy development of the industry to build a framework. At the same time, with the strengthening of law enforcement, it helps to break the prejudice and concerns about the microbusiness industry in the past, and establish a positive industry image.

On June 20, 2019, the General Administration of Market Supervision (GAMS) and eight other departments issued the "Program on Issuing the 2019 Special Action for Supervision of the Internet Market (Net Sword Action)," which increased the efforts to rectify the illegal and criminal behaviors of new modes and new business forms of the Internet market on the cell phone APP side, including social e-commerce, in a bid to purify the environment of the Internet market.

China's social e-commerce market size is growing rapidly

Driven by multiple factors such as the growth of young consumers and the increase in policy, China's social e-commerce market size is growing rapidly. According to Foresight Industry Research Institute released the China social e-commerce industry market outlook and investment strategy planning analysis report monitoring data shows that in 2014-2017, China's social e-commerce market scale has grown rapidly, in 2014 China's social e-commerce market scale has reached just 950.1 billion yuan, a year-on-year growth of 87.2%. As of 2017 China's social e-commerce market size grew to 683.58 billion yuan, compared with 360.73 billion yuan in 2016 also increased by 89.5%, with a compound annual growth rate of 93.05%. Foresight Industry Research Institute predicts that in 2018 China's social e-commerce is expected to maintain its rapid growth momentum, and the market size will break through the trillion yuan to reach about 1.14 trillion yuan, a year-on-year growth of 66.77%.

2014-2018 China's social e-commerce market size statistics and growth

Data source: Prospect Industry Research Institute

With the government's regulation of the online shopping market gradually perfected and standardized, the operation mode of social e-commerce and the boundaries of the pyramid scheme are becoming increasingly clear, and in the future, by virtue of the advantages of low customer acquisition costs, the socialization of the traditional e-commerce business will become a major trend. With more players in the game, a variety of new social games will also be explored and applied.