What Is Taobao'S C2M Strategy To Do In The Near Future?

In March 26th, Taobao released the C2M strategy and put forward the "super factory plan" and "ten billion production area plan". Meanwhile, the "Taobao special edition" APP, which has been tested for one year, is also formally launched.

Vice president of Alibaba and general manager of Taobao C2M business department, Wang Hai, said that Taobao C2M strategy will rely on core digital capabilities and Taobao special edition. It will help 1000 industrial upgrading factories to produce "super factories" of over 100 million output value in the next three years, create 10 billion new orders for industrial enterprises, and build 10 digital industrial belts with over 10 billion output value nationwide. Cluster.

"Compared with the traditional industrial belt manufacturing plant, digitalized factories show greater resilience. Digitalization is both immunity and growth. The Taobao C2M strategy aims to bring the new digital infrastructure to the major industrial belts in the country, develop new supply with digital new infrastructure, expand new consumption, and bring industrial upgrading and economic development.

According to official figures, during the past 3.8 Tmall queens Festival, industrial belt business has harvested more than 45 million orders, of which C2M orders for customized goods increased by 370% over the same period.

　　 Taking factory direct supply as the core and aiming at sinking Market

Taobao's special edition aims to sink people, so shopping style, style design and product composition are all customized for this crowd.

"Taobao APP covers a very large population, we will have a lot of overlap, but Taobao special edition will be used in a more suitable way to sink people, through the C2M to bring cheaper products and better quality products to consumers." Wang Hai explained.

Compared to the "Juhuasuan", which also focuses on the sinking market and the flagship parity brand, the Taobao special edition takes the factory direct supply as the core, through the "super factory plan" and the factory form a close connection, and jointly studies the commodities needed for designing the market. "They will work together to form a new supply system of Taobao to meet the diversified needs of consumers, so as to better penetrate into the sinking market."

The reason why Taobao special offer can provide high quality and low price products is that the Taobao C2M plan has changed the way of production and operation of the factory. "The core of C2M is on-demand production. Every product produced does not need to consider inventory, and inventory is a very important part of the whole commodity pricing. If we can make the production more precise and make the production products more targeted at consumer demand, we can really reduce the price to consumers' benefits.

Wang Hai also said that the most obvious feature of Taobao special edition from the public beta to the official release is to upgrade factory direct supply to a very important link, which is also the core feature of the Taobao special edition in the future. "Through Ali big data system and technical capability, we can guide factories to create goods that consumers really like."

It is reported that since March last year, Taobao special edition began to be tested internally. The flagship super low price white goods and nine pieces of nine packages were launched today. The first day is the top AppStore free application list.

Three advantages of Taobao C2M mode

One end of the C2M mode is connected to the manufacturer, one end connects the consumer, through the construction of the "very short link" to remove inventory, logistics, total sales, distribution and other intermediate links to reduce the cost, so that users can buy high quality products. Alibaba "Amoy factory", "every day factory", Jingdong "Beijing made", many "spell factory", Suning "fight factory" and other mainstream domestic e-commerce platform are "platform factory" mode into the C2M.

Wang Hai said that after years of operation, Alibaba's understanding of the whole data capacity and the understanding of commodity planning have been gradually strengthened. Therefore, we hope to use C2M to help factories transform the language of consumers into the language of supply chain, thus docking the market demand.

"Taobao C2M has three advantages: first, the Taobao special edition is the first shopping platform with the core of C2M industry belt as the core, and a digital system linking factories and consumers. On the one hand, it effectively helps SMEs improve efficiency and achieve growth. On the other hand, it also provides consumers with good and cheap products through factory direct supply; second, Taobao platform. With the advantage of digital data such as strong data, cloud computing and IOT, we can accurately understand the needs of the 800 million consumer market and improve the accuracy of commodity planning. Third, the super factory plan relies on the advantages of Ali's economic ecosystem, and integrates the supply chain and financial services of Ali, which can provide full link services to factories and reduce operating costs.

He also said that the significance of Taobao C2M strategy lies in improving the efficiency of interconnection between the consumption Internet and industrial Internet of things through the construction of digital ecosystem, so that the industrial belt factories can respond to the needs of consumers quickly and promote the matching of supply and demand.

It is reported that as early as 2013, 1688 of Alibaba launched the "Amoy factory" based on the concept of C2M to digitize the supply chain of the industrial belt factory. Over the past seven years, Taobao and 1688 have formed a complete set of C2M digital solutions.

In June 2018, Ali formally launched the C2M project, and continuously strengthened the supply of industrial belt. In November 2018, Taobao launched the "daily factory" project, aiming to upgrade the number of factories and businesses in traditional manufacturing and local characteristic industries in C2M mode, and put forward the goal of transforming 10000 digital factories and 100 digital industrial belts in three years. According to official data, the project has helped more than 2000 factories and 20 industries to carry out digital transformation and upgrading.

In March 2019, Taobao's daily sale was integrated into Juhuasuan, making it clear that the goal of hatching 1000 global industrial belts. In the C2M transformation, then the on-line "Factory Marketing" C2M digital solution, integrated Ali cloud, rookie, ant gold clothing and other Ali economies, ecological resources, through data, finance, logistics, technology empowerment, etc., to help businesses achieve real efficiency.

In December 2019, Taobao business group set up C2M business department, vice president of Alibaba vice president Wang Hai, general manager, double line report to Chiang fan and B2B business group president Dashian.

　 Full link infrastructure services for "super factories"

In the past year, the number of monthly active customers in China's retail market has reached 824 million, of which 60% have come from sinks, while 90 and 00 have become new forces of consumption. In the words of Jin Ke, general manager of Taobao C2M Industry Department, price performance consumption is becoming more rational and even becoming a norm.

In almost all consumer goods, nearly 40% of the cost effective product supply comes from the industrial belt. Therefore, Taobao C2M division and factory merchants have also carried out many forms of cooperation.

At the 2020 Taobao C2M strategic conference, factories and merchants from Zhaoqing, Guangdong and Zhejiang Wenzhou shared their gains after joining Taobao's C2M program.

Guangdong Shun Shun Odis is a factory specializing in the production of automotive interior cleaning and disinfectant products. During the epidemic, the general manager of the company, Qu Wei Hao, found that the search data of spray alcohol increased sharply through the intelligent data center of Taobao C2M, but the goods on the platform were very few. Therefore, he decided to organize workers to resume work in the new year's Eve to produce aerosol alcohol. Thanks to digital tools, in the past, it took 3 months for the R & D process to take shape in 3 hours. Now, his factory can produce and sell 176 thousand aerosol alcohol every day, the most one day, selling 80 thousand orders.

Due to the suspension of stationery shops at home and offline, the sales performance of Wenzhou stationery factory, stationery and watercolor pens and crayons has also been greatly affected. However, relying on Taobao C2M backstage data system, general manager Dong Fenghao still grasped the stationery market demand during the epidemic period, and had a comprehensive understanding of the stationery fashion style and color. Although the factory capacity has only recovered 70%, the C2M commodity order of the week during the epidemic period increased by 450% compared with that before last year's digital transformation in December.

"With C2M's system assistance, we need to prepare 43 days of ready stock. Now, it only takes 31 days to produce and sell synergy, which is equivalent to 34% of the capital occupation, and also greatly reduces the risk of unsalable sales. Most importantly, through product evaluation and feedback, businesses can better improve product functions on the one hand, and can also drain more repeat customers. "

Jin Ke said that the previous "everyday factory plan" focused on the manufacturing side, made a lot of digital transformation from manufacturing, production lines, production and so on, while the "super factory plan" integrated more links from planning, sales life cycle management to supply chain, financial services, and the whole link was gradually precipitated in the form of commercialization. "In the past, more resources may be invested, and now it is further landing in the form of products, and links are more complete."

It is understood that the "super factory plan" launched four major infrastructure services: first, new product development services, two is marketing services, three is supply chain services, and four is financial services.

In terms of new product services, manufacturers can understand consumers' demand preferences through Taobao C2M's big data analysis, and further grasp the scale, heat and competition of the relevant market. "We will also deliver deep and accurate planning to the manufacturers. Once the project is completed, the explosion will be half done, which will completely change the way of R & D of the factory."

In terms of marketing and promotion services, the platform will manage the entire life cycle of factory products. Suppliers with e-commerce capabilities can use semi trusteeship to provide marketing support from the platform, and factories that lack the power of operation of the electricity supplier can choose full hosted services. "In the introduction period, we will focus on optimizing the information; in the growth period, we will achieve the highest efficiency in the transformation; in the outbreak period, we will add all the traffic to achieve absolute explosions; and in the recession, we will be cleared at the first time."

In warehousing and distribution services, Taobao C2M plans to get through the entire link from product production to final delivery. At the very beginning, the platform will build a satellite warehouse near the nearest factory. With the increase of the order quantity, the central warehouse and the single warehouse will be gradually increased in the later stage. The efficiency of the warehouse distribution service will be enhanced through the link of layers, and the whole sales and inventory will also be presented in a data way, and the actual production and production capacity of the factory will be optimized. At the same time, to help manufacturers reduce warehouse logistics costs, in the delivery link to provide deterministic services.

In terms of financial services, the financial services of Taobao C2M Division also covered the entire link from factory production to sales. Specifically, in the factory's stocking stage, it can provide credit loan products. When factories participate in the big promotion activities, there is a matching "activity loan". In daily operation, there is a "marketing recharge treasure". When all goods enter the warehouse, they can also carry out inventory financing, and in the final refund section, they can also provide a quick return service.

In addition, Taobao C2M business department has also built a special marketing activity IP - "factory direct purchase Festival" for the industrial belt, which is planned to be held at the end of each month. At the end of the year, "trump card" will be held as an annual official. In the daily operation process, products from the industrial zone will not only be recommended on Taobao special edition, but will also be accurately launched in the daily sale and Alipay Mini programs.

It is understood that the "super factory plan" has been in Guangzhou, Jieyang, Dongguan, Shenzhen, Quanzhou, Jinhua, Wenzhou, Ningbo, Taizhou, Baoding and other 10 cities in full cooperation.