Ali sets up a C2M business unit. Is the spring of the industry belt coming?

[Estate News] Today, when the concept of "new retail" has been fully consumed, don't forget that Ali had five "news" at the beginning.

A few days ago, it was reported that Taobao Tmall ushered in a new round of organizational upgrades. Among them, the Tmall business group established a consumer home improvement group and a fast consumer apparel group, and the Taobao business group established a C2M business department.

In this regard, a Tmall merchant told Yibang Power that the establishment of a large group of consumer home improvement and fast consumer clothing can integrate resources on the one hand, use refined operations to hedge growth bottlenecks in some categories, and also better To capture the surprises brought about by complementary crowds, the core of C2M may still be sinking and customized needs.

For more industry belt employees, instead of falling into the dispute over the stocks behind the consumer home improvement and fast consumer apparel groups, it is better to focus on C2M, which has more growth expectations. The C2M business unit, which is strongly related to the factory, was actually produced in the C-series Taobao business group. This time, what medicine does Ali sell in the gourd?

Ali’s C2M

Yibang Power introduced Ali’s latest “factory sales through” system in October. In this system, Ali tries to provide a set of complete digital solutions from supply chain management to demand side reach for factories dedicated to C2M. The prototype of the

system can be traced back to the Tiantian factory plan officially announced in November 2018. Tang Song, then general manager of Tiantian Special Sale, believed that the traditional product selection model could not solve the value problem of the product itself. Only by going deep into the manufacturing side and using digital transformation to improve the large-scale production efficiency of the factory can the product quality be improved. Reduce commodity prices and achieve sustainable development of the industrial belt.

Taobao Tmall President Jiang Fan expressed his expectations for the Tiantian Factory project: At the Alibaba Global Investor Conference 2019 held on September 23 this year, Jiang Fan focused on the "Tiantian Factory" project. Jiang Fan revealed that orders for this model of factory direct supply are growing very fast and will soon reach the order of 10 million orders per day. The

factory direct supply model provides a clear growth paradigm. Almost all well-functioning e-commerce platforms are trying to open up the path from the factory to the C-side. In addition to the Tiantian factory, Jingdongxixi's "Factory Direct Excellent Products" plan, Pinduoduo's "New Brand Plan", and Suning's "Strengthening Factory" plan all reduce the link between the M terminal and the C terminal to varying degrees. Help factories sell goods, tell new stories and gain new growth.

It is worth noting that the direct supply model of the first generation factories is mostly limited to the two links of centralized shopping demand and reduction of circulation costs. The accumulated shopping demand and cost-reduced cost-effective products are connected through the e-commerce platform. The factory is often in this process. Build your own retail brand and get a brand explosion.

However, Ali’s logic of helping factories digitize does not actually create a factory brand. Yuan Wei, the general manager of Tao Factory’s business at the time, had previously emphasized in a dialogue with Yibang Power that the factory branding campaign was never the goal of Tao Factory. The reason is that the definition of branding is to allow the factory’s brand to get a premium, and Tao Factory ( The core of Ali Domestic Trade Supply Center) is to give the factory stronger daily sales certainty. The

"factory sales through" system goes a step further. In addition to bringing stronger sales certainty to the factory, it also brings stronger production certainty and operational certainty to the factory.

For example, "Factory Sales Link" is based on the cost-effective consumer insights. The operation and data resources of the Taoxi platform will be fully imported into manufacturing businesses to help businesses select, test, design and sell more efficiently. Let merchants truly achieve cost reduction and efficiency enhancement through the C2M model. In a sense, this is the business staff and data brain of the factory. According to Ebang Dynamics, after the production data and sales data are connected, "Factory Sales Link" can predict the sales of merchants in the next 8 weeks in real time, which is convenient for merchants to stock up in advance and accurately arrange production capacity. Some insiders pointed out that “factory sales through” is essentially a set of middle-office services: whether it’s design requirements, rookie logistics network, Alibaba Cloud’s technical support, Ant Financial’s financial services, Tmall’s C-end sales, Factories can be satisfied in this set of middle-office services. Behind this set of services of

is the integration of Ali B series and C series. The integration of

B and C

Jiang Fan’s internal letter announcing the organizational upgrade shows that the newly established C2M division of the Taobao business group will be headed by Alibaba Vice President Wang Hai (nickname: Qi Gong) concurrently as general manager.Two-line report to Jiang Fan and Dai Shan, president of the B2B business group.

Who is Wang Hai?

According to public information, Wang Hai joined Ali in 2003 and was one of the early founding members of Taobao. In early 2010, the Taobao data platform at its helm launched a new product "Data Cube". Through this product, Ali opened up global market data to the market for the first time. This well-known paid product has also become a data weapon sought after by many large and medium-sized merchants, and the value of Ali's data has begun to be strongly perceived. Since then, the development of Ali's internal data products has entered a blowout state.

On March 2, 2017, Wang Hai transferred to the B2B business group and took over as the general manager of the 1688 business department. In January before this, Dai Shan, one of the "18 Arhats", returned to the B series as the president of the business group. There are far more than two people in the channel of

C system to B system. Since 2017, batches of business and technical elites from Amoy Department and other departments have been continuously transferred to the B2B business group to support the development of the B2B business group.

The current senior vice president of Alibaba Group and the president of B2B business group Dai Shan called his return to Alibaba B2B as his "second entrepreneurship." She said on multiple occasions that the B2B industry will quickly enter a value return period, and Alibaba's strategic focus is turning to B2B again.

Xiaoyaozi once said at the B series annual meeting that the Industrial Internet will bring changes and opportunities in the entire manufacturing, production, circulation, trade, channels and management. Such historical opportunities will be undertaken by the B2B team in Ali. How does

bear? The most direct way is to use new manufacturing to support new retail. It is envisaged that the data capabilities and technical advantages accumulated by the B series will be able to promote the supply-side structural reform in the process of connecting the factory and the C side.

first review an easily overlooked case. In May of this year, Zhejiang Dongya Glove Factory, BASF and Alibaba conducted a "reverse sourcing" experiment together. It is the global chemical giant BASF that provides the raw materials; 1688 provides the platform, sales channels and connects upstream and downstream; the final product is the old gun Zhejiang Dongya Glove Factory, which has 32 years of PVC glove production experience.

Before 618, these three companies finally realized the digitalization of all links from the supply chain to product design, production, logistics, sales, and after-sales. Consumption data and consumer demand can be transmitted back to manufacturers and even raw materials suppliers as quickly as possible.

Under the traditional model, the cooperation comes to an end after the raw material supplier sells the product to the factory. As a raw material supplier, it is difficult for BASF to get through the entire chain, but this experiment did it. In this process, traditional manufacturers can get more e-commerce empowerment, and high-quality sources have entered the 1688 supply chain.

This is the first successful verification of the C2M model after 1688 has opened up data with Tmall: the customer is from Tmall, and the factory is from 1688. There is no longer a barrier between B2B and B2C. Ali has tried to build a central platform for data inclusiveness to break the barrier.

In March of this year, 1688 established the core strategy of digitization of circulation, with one hand going deep into China's manufacturing source producing enterprises to create a supply chain of goods, and the other hand arranging the procurement and sales of industrial brands. Including Taobao, Maochao, AliExpress, Lazada, etc. have successively connected to the 1688 supply chain.

Under this model, Ali has established a two-way channel between factory goods and consumers: the factory sells goods to consumers in a similar way offline, while the middle station feeds back the real-time information of consumers after buying the goods to the factory. Skip all the setters in the middle. The standardized, automated, intelligent, and de-intermediate channelized manufacturing industry will have the opportunity to regain the bargaining advantage in the industry chain.

In 2017, Wang Hai's first step after taking the post of general manager of the 1688 division was to fully access the data of the Ali retail terminals such as Taobao, Tmall, AliExpress, and Lazada. After the data on the retail and supply sides were connected, 1688 continued to penetrate the digitalization of SMEs.

has the same feeling as when it launched the "Data Cube", Wang Hai felt the growth brought by data capabilities. In an interview with the media, he said: "...In recent years, especially in the last two or three years, the market scale of the enterprise side has grown very fast", "This growth rate is unprecedented in the past ten years."

According to industry insiders, Alibaba has integrated the B2B and B2C business into the group's large-scale business layout for overall thinking, and C2M will be the key deployment front. In the framework of the previous stage, big Taobao (Taobao, Tian(Mao, Juhuasuan) Juhuasuan's Tiantian Sale provides sales channels, 1688 is responsible for the Tiantian factory behind the Tiantian Sale, and the middle-level technical solution comes from the Alibaba Cloud IoT department. Z1z

has a daily sales related practitioners to Yibang Dynamics that after this round of organization upgrades, the new collaboration method has not been specifically synchronized yet, and further notice is still needed.

Weaving Industry Belt

At Alibaba’s 20th Anniversary Annual Meeting, Zhang Yong, Chairman of the Alibaba Group’s Board of Directors, proposed three new strategies: domestic demand, globalization, and big data cloud computing. The future strategy of promoting domestic demand through "sinking" "" and "supply side" two keywords are concentrated. Z1z

Juhuasuan undoubtedly took on the important task of penetrating the sinking market. In fact, in the past eight quarters, Taobao users have returned to the high-growth track of 20 million orders of magnitude growth every quarter. This is due to the rapid sinking and popularization of Alipay. On the other hand, the sinking market is fierce. The competition itself has also cultivated the e-commerce consumption habits of more users.

Before this year’s "Double 11", Juhuasuan announced this year's All in Double 11 "Three Arrows Plan":

① united with 1,000 brands to jointly customize 1,000 popular products, and empowered the supply side to bring consumers in the sinking market Extremely cost-effective shopping experience;

②The tens of millions of explosive groups will impact 10,000 million groups, 1,000 100,000 groups, and 100 million single pits, converging the purchasing power of consumers and hitting new sales records for businesses;

③jointly 2,000 industrial belts, 1,000 agricultural bases, 5,000 digital factories, and 50,000 special production lines provide consumers all over the country with good products from the source directly. Combining the above three strategies, the cost-effective "Three Arrows Plan" is precisely the product of combining both "sinking" and "supply side."

A report published in 2018 by Accenture, a multinational management consulting company, showed that only 7% of Chinese companies had achieved significant results in their digital transformation at that time, and the revenue growth rate of these fast-transforming companies was 5.5 compared to other companies. Times, the sales profit margin is 2.4 times.

It is obvious that digitalization is the only way for industrial belt factories to continue their vitality.

This year, an event called "Super Origin Day" went online 1688. Based on the "Super Origin Day", 1688 successively built 15 industrial belts in Zhejiang Yiwu, Shandong Qingdao, Zhejiang Zhili, Hebei Baigou, and Zhejiang Wenzhou into 15 super IPs. Users can log in to 1688, click on the homepage to enter these online industrial belt display areas, and complete the entire transaction process from browsing, consulting, and placing orders in one stop. According to public information,

has generated 170 million orders for industrial belts empowered by Alibaba's B2B on Double 11 this year, and more than 5,000 new factories in 2000 industrial belts across the country have completed digital transformation, providing new supplies for platform consumers.

At the beginning of 2019, 1688 started to use the new Slogan, "the source of the factory goods through the world". The "source" in Slogan refers more to the industrial belts distributed throughout the country. According to Ebang Dynamics, the focus of 1688 in 2019 is to take root in the 15 industrial belts and hope to influence and drive the development of more industrial belts. The establishment of the

C2M division may bring Ali B2B one step closer to the dream of the weaving industry belt.

Want to know more? Enter the Yibang reader group to open a chat↓↓

add the editor below to pull you into the group

private message keywords " Ali "

Today's main pen