China’s Social E-commerce to Reach 3 trillion in 2020

Social E-commerce

According to the “2019 China Social E-Commerce Industry Development Report”, social e-commerce maintained rapid growth in 2019, and the market size is expected to reach 260.58 billion yuan, a year-on-year increase of 63.2%, much higher than the average growth rate of e-commerce. In 2019, the number of social e-commerce consumers reached 512 million, becoming the main force of e-commerce innovation. At the same time, according to the Ministry of Commerce, China’s online retail market will reach 9.6 trillion yuan in 2020, and the social e-commerce market will reach 3 trillion yuan, accounting for nearly 30%.

Regardless of the size of the market or the growth rate, social e-commerce will become a new force in the future of e-commerce, and in the social e-commerce, the purchase of this model has become the mainstream of development.

Especially with the development of China’s e-commerce for more than a decade, the growth rate of e-commerce from 35.1% between 2014 and 2017 slowed down to 30.6% from 2017 to 2018. When the stock market has been exhausted, e-commerce wants to develop further and can only look forward to finding a new development model as a breakthrough.

In this context, social e-commerce came into being. This e-commerce model has become a new growth point, and many e-commerce giants have entered.

The Core of Social E-Commerce is Supply Chain

Social E-commerce
Social E-commerce

According to the “2018-2019 China Shopping E-Commerce Industry Research Report” released by Ai Media Consulting, the scale of China’s purchase of e-commerce users is expected to grow to 474 million in 2020.

However, with the rapid development of the purchase of e-commerce, in the pursuit of development speed, some of the purchase of e-commerce platform due to the lack of control over the supply chain, resulting in the emergence of cottage fakes. At the beginning of the purchase of e-commerce, the user was left with a stereotype of “purchasing more e-commerce fakes”, which is extremely unfavourable for the development of e-commerce.

The sales volume of the goods can reflect how fast the development platform is developed, and the control of the supply chain can finally determine how far e-commerce can be purchased.

For e-commerce, the supply chain is the core of its development. Only by building a sound supply chain and providing a wide range of goods can we have enough goods to meet the different needs of users. However, due to the diversification of user needs, the supply chain of the purchase of e-commerce is an extremely complicated process.

The upstream needs to cooperate with suppliers to purchase the goods that the users need. The middle reaches require reasonable warehousing and scheduling, and the downstream needs a complete logistics and service system. To create a complete procurement e-commerce supply chain, there are too many resources to fully coordinate.

This is also the reason why some e-commerce companies are not controlling the upstream suppliers for their own development, because if the customs are too strict, it will lead to the reduction of commodity categories, and cannot meet the needs of platform users.

Purchasing e-commerce sample – Suning’s purchase, steady and steady, starting from the supply chain system, slow work and work, its model has become a model of social e-commerce.

At the beginning of 2019, Suning purchased the core strategy of direct mining around the production area to release the “Baoshan Baohu Baohai” plan. Through the direct production of the origin, the quality of the purchased goods was guaranteed and the problem of fake goods in the cottage was eliminated.

In order to meet the user’s demand for product diversity, Suning has launched a “selling brand” and “selling the base” plan. “Paste brand” will incubate 10,000 small and medium-sized brands, and “selling base” will be expanded to 500 during one year.

From the source to control the quality of goods, re-create the exclusive supply chain system belonging to the purchase users, to ensure the quality of goods, with rich goods to ensure the diversity of users. At the same time, Suning’s warehousing and logistics advantages are used to ensure the most convenient service for users.

With high-quality genuine products and perfect services, Suning has won the favour of users. According to the third-party data mining and analysis agency Ai Media Consulting released the “2017-2018 China Shopping E-commerce Industry Research Report”, 2018 China’s purchase of e-commerce users on the mainstream procurement e-commerce platform service satisfaction survey, Suning fight The purchase ranked first among the three service indicators: “logistics distribution speed”, “authentic guarantee satisfaction” and “overall service satisfaction”.

Suning’s purchases have stabilized and stabilized and truly built the supply chain system for the purchase of e-commerce. In the early stage, the foundation of Suning was purchased, and the development of e-commerce in the future will be faster and faster, the foundation will be firmly fixed, and the superstructure will develop faster.

This is also a long-term layout of Suning’s purchase. After all, only the quality of the purchase can get the user’s long-term favour, can develop longer.

What Kind of Supply Chain is a Good Ecology?

Social E-commerce
Social E-commerce

The supply chain is built for the better development of the platform, which is the foundation. At the same time, how to achieve a win-win situation for both parties, maintain a better cooperative relationship, and build a mutually beneficial and win-win community is an important link to achieve long-term development in the future.

While building a supply chain, Suning also supports merchants in the supply chain, so that the two sides can realize the combination of interests and form a community of interests.

The “spelling base” created by Suning is not only the supply chain system of Suning’s purchase, but also the use of e-commerce to enable the remote places to have no hard-to-sell goods so that more merchants can benefit.

The system of cooperation and win-win will be the best supply chain ecology for e-commerce, and the layout of Suning’s purchase in this area will also make this community more robust.

The following Shenshi merchants take the example. On September 23, Suning purchased and held a double eleven merchants conference. At the same time, Suning’s purchase upgraded the “base” to “selling the village”. This strategic upgrade also marks Suning. The purchase wants to involve more merchants in rural areas and let rural goods go out better.

Located in Yanyuan County in the depths of the Great Liangshan Mountains, the altitude is over 3,000 meters. Thanks to the topography of the plateau, the “Ugly Apple” planted in Yanyuan County is known as the “highland apple that is close to the sun and far from the city”. Moreover, Yanyuan County is located in the Great Liangshan Mountains, with sufficient sunshine, the large temperature difference between day and night, and extremely sweet apples. However, in the local mountainous areas, transportation is inconvenient, and the farmers do not have good marketing channels. After the fruits are cooked, there are often problems in selling.

The arrival of Suning’s purchase has opened a new door for local farmers. In view of the lack of fresh channels, limited transportation and other aspects, Suning’s purchase relies on Suning’s warehousing and logistics system, which improves the turnover rate of farmers’ goods and allows farmers to sell their products better and sell faster.

With the help of Suning’s purchase of this platform, the ugly apples in Yanyuan County began to be better promoted throughout the country. The “Ugly Apple” also became the “Golden Dragonfly”. Apple’s best-selling led the local 81 households, solved 300 the peasants of the rest are employed.

In March of this year, Suning contracted to contract 30,000 mu of kiwifruit and 100,000 mu of mandarin orange in Xiangxi. Under the promotion of Suning’s purchase, Xiangxi kiwifruit has reached a wider range with the help of Suning Tesco, Suning’s online shopping and other online channels, as well as offline Sushengsheng Supermarket, Suning Xiaodian and other stores, as well as Su Xiaoqun community group purchases in the consumer market.

For Suning’s purchase, “purchasing the village” is not only a simple upgrade of the supply chain system, but also a community of interests created by it, so that rural goods can better go out and enrich their own platform products, and let the supply chain merchants also Benefit together.

With the stable supply chain system, Suning has solved the core problem of purchasing e-commerce. Incorporating supply chain merchants into the community of interests will make Suning’s supply chain system more stable. The two-way ecology of Suning’s purchase will provide a new demonstration for the purchase of e-commerce.

Blue Technology

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