Reborn in 08, a heretical cultivator starting a business

Chapter 205 Taobao Mall Collapses, Midea Begs for Mercy (Seeking Monthly Tickets)
Daily necessities, snacks, and beverages on Taobao Mall were severely impacted by YouTuan community group buying.

Branded products and large appliances are once again being outmaneuvered by Vipshop!

Given this disparity, it's no surprise that Taobao Mall suffered a complete collapse.

A large number of users flocked to YouTuan.com to shop.

As a result, a trend has emerged in many companies: both management and employees are starting to buy New Year's goods for their parents through community group buying.

Everyone else is buying, so it's not appropriate for you not to.

The emergence of this trend is the most terrifying thing.

As expected, the promotions by Taobao and Midea went unnoticed.

In major companies and online forums, the discussions revolve around community group buying of groceries, New Year's goods, and ways to show filial piety.

Few people still care about Taobao Mall and Midea's promotions.

This caused Mei immense suffering.

Midea Chairman Fang Bo was extremely anxious:
"The day before yesterday, Midea's sales on Taobao Mall increased by 35%, but yesterday, not only did sales not increase, they actually dropped by 25%!"

"Isn't this useless? We've been reduced to our original state again!"

"How could this be?"

Midea Vice President Cui Xing sighed: "Chairman, it's not just Midea that's experiencing a drop in sales on Taobao Mall; other brands are also seeing a decline in sales on Taobao Mall."

"You could even say that yesterday, the entire Taobao Mall was experiencing a drop in sales."

"Is sales dropping across the entire Taobao Mall? What's going on?"

Fang Bo frowned deeply: "Is Taobao Mall really that bad? Then all the five million yuan we gave Taobao Mall for marketing and 2000 washing machines wasted?"

"The Little Duck and Vipshop campaign, involving only 1000 washing machines, resulted in a huge sales boom, and Vipshop's user revenue surged across the board."

"Why is it that when it came to our Midea and Taobao Mall promotion, with a full 2000 washing machines, it only lasted one day? And then it stopped working on the second day?"

"Is this a joke?"

Cui Xing was also helpless: "There's nothing I can do, Chairman, it's still Wang Junshan!"

"Yesterday, the Shandong Provincial College Student Entrepreneurship Competition for the Olympic Games held its awards ceremony, and Wang Junshan won the championship. All the media went to report on it."

"At the ceremony, Wang Junshan touted community group buying, saying it was an innovation in e-commerce and a revolution in consumption."

"The media outlets rushed to report on it, which led to netizens' attention being drawn to community group buying. They all went to YouTuan.com to experience community group buying, and no one paid attention to the joint promotion between Midea and Taobao Mall."

"In addition, community group buying orders placed today will be delivered to some areas tomorrow, and for areas not covered, SF Express's intra-provincial logistics will deliver in just two days. Compared to Taobao's week-long delivery efficiency, it's much, much faster, and Taobao Mall is becoming increasingly neglected."

"That serious?" Fang Bo's lips twitched.

"There's no other way. Under normal circumstances, a week's delivery is only five or six days slower than next-day or two-day delivery, and some users can tolerate that."

"But yesterday was the 26th of the twelfth lunar month, and there are only three days left until New Year's Eve. The difference of five or six days will be magnified."

"Orders placed through community group buying yesterday will arrive today. Even if the order is placed today, or even on the 28th of the twelfth lunar month, it will arrive in many areas on New Year's Eve, so it won't delay our New Year's Eve dinner."

"But Taobao Mall is different. If you order something yesterday, it won't arrive until next year, maybe the fourth, fifth or even the eighth day of the Lunar New Year."

"The gap is too big."

"The same applies to New Year's goods, and even more so to new large appliances for the New Year."

"The goods arrived and were installed before the New Year, which was a joyous occasion."

"Ordering before the New Year and having it installed after the New Year would be such a disappointment!"

"If I order from Taobao Mall, it won't arrive until next year, and there's no guarantee that anyone will install it until the seventh or eighth day of the Lunar New Year."

"But Vipshop is different. If you place an order yesterday, it will be delivered and installed tomorrow. If you place an order today, it can be installed on New Year's Eve, so it won't delay your use at all."

"I see. So, Taobao Mall is powerless to resist the impact of YouTuan.com?"

Fang Bo suddenly realized: "Previously, this gap was mainly in the field of large appliances. Now, with the launch of YouTuan.com's community group buying, it has spread to daily necessities, fruits and snacks, and even vegetables, meat and poultry!"

"Yes, community group buying has everything, and it's cheap and fast. Next-day delivery is available in the urban areas of 27 cities. You can also buy groceries by express delivery to towns and other cities. The goods are shipped from nearby central warehouses and delivered by SF Express within the province, so two-day delivery is no problem."

"These are things that Taobao Mall can't compare to."

"It's not just about delivery speed, but also about product categories."

"It can be said that Taobao Mall has been outmaneuvered by Vipshop in the high-end consumer market."

"In the lower-tier markets, we are being outmaneuvered by YouTuan community group buying."

"The gap in logistics, the difference between two days and a week, and the huge difference between before and after the New Year have completely defeated Taobao Mall, leaving it utterly powerless to resist."

"It's a foregone conclusion that Taobao Mall's daily active users will plummet."

"Even Taobao Mall's daily active users have plummeted, so Midea's sales on Taobao Mall are also dismal."

"I see, this whole thing is... sigh!"

Fang Bo sighed, saying it would be a lie to say he didn't regret it.

I thought Taobao Mall could hold on, and even if it couldn't beat Vipshop, it could at least put up a good fight.

Given time, with Taobao's foundation and Alibaba's resources, it's not impossible for them to catch up, or even surpass Vipshop!
Unexpectedly, it didn't even last two days before it died!
When YouTuan community group buying took off, Taobao Mall suffered a complete defeat.

What a waste!

"Chairman, the situation is even more serious now, and Midea is in an even more passive position!"

"If this trend continues, the gap between Taobao Mall and Vipshop will widen."

"If we don't adjust our strategy in time and continue to oppose Vipshop, are we going to follow Taobao Mall down this path to the bitter end?"

"This..." Fang Bo fell silent.

Yes, the situation is very clear now.

Previously, Midea still had high hopes for Taobao Mall, but now it seems that Taobao Mall is no match for Vipshop at all!

Even if Taobao resumes shipping after the eighth day of the Lunar New Year, it may still not be able to compete with YouTuan.com.

Even though Taobao has a wider selection, it still takes a week for goods to arrive.

Even though the community group buying deals on YouTuan.com aren't as good as Taobao coupons, they still have the basics, and they offer next-day or two-day delivery!

How can it be compared to Taobao?
Once users get used to next-day or two-day delivery on YouTuan.com, who would still go to Taobao with its week-long delivery?
Isn't this just plain stupid?
It's safe to say that whatever YouTuan.com has, consumers will prioritize ordering from YouTuan.com in the future, aiming for next-day or two-day delivery.

Since it wasn't available on YouTuan.com, I had no choice but to place an order on Taobao, which offers one-week delivery.

Moreover, with the rise of community group buying, YouTuan.com has continuously expanded its product categories, especially in fresh produce, offering a more comprehensive, abundant, and down-to-earth selection compared to Taobao. Simply put, if consumers dare to buy groceries on YouTuan.com, who would dare to buy groceries on Taobao?
It will arrive in a week, by which time it will probably be rotten.

"I've figured out Wang Junshan's plan!"

Fang Bo sighed: "YouTuan.com now has three modules: community group buying, Vipshop, and YouTuan International."

"Community group buying mainly targets the lower-tier market, offering a wide variety of daily necessities, snacks and beverages, vegetables and fruits, fresh produce and alcohol, etc., with next-day delivery and two-day delivery for grocery shopping, making it incredibly fast."

"Vipshop focuses on brand consumption and brand discounts. It is positioned as a high-end platform and offers next-day and two-day delivery. Cross-regional goods transfers take about three days."

"YouTuan International mainly offers imported products, including imported baby products, 3C products, cosmetics, clothing, and more."

"All three sections are on YouTuan.com, each with its own strengths, and they complement each other."

"The needs of different consumers can be met."

Cui Xing nodded: "Yes, and most importantly, there's the linkage function."

"When consumers need to buy something, they can search for it on the community group buying section of YouTuan.com. If the community group buying option is not available, the system will also directly display the search results from Vipshop and YouTuan International."

"The system will guide consumers to place orders on Vipshop or Utour International."

"Similarly, when searching for a product on Vipshop, the system will also show community group buying results, reminding users that there are self-pickup points nearby, making next-day delivery more convenient, and guiding users to place orders through community group buying."

"This approach will create internal fission among users, turning a single user of community group buying, Vipshop, and Ugroup International into a user who uses all three platforms."

"These three matrices cover the lower-tier market, brand consumption, and imported consumption respectively, covering three major markets and three dimensions, and comprehensively appealing to different groups."

"In comparison, Taobao Mall is struggling to survive on its own, even with Taobao.com as a whole."

"There are too many counterfeit goods on Taobao, and the logistics are too slow."

"This is also a major reason why Taobao Mall hasn't taken off. Because it shares the same name as Taobao.com, which is rife with counterfeit goods, consumers assume everything on Taobao Mall is fake..."

“Vipshop is reassuring, everything there is genuine.”

Fang Bo nodded: "So, Taobao Mall is really no match for Vipshop. Does that mean we've narrowed our options?"

"Yes, it's not too late to turn back now."

Cui Xing pleaded earnestly: "Take advantage of the New Year to contact Vipshop, soften our stance, and give up some profits. Maybe this matter will be over."

"If we fight to the end, Midea's online market will be finished."

"If it's just large appliances, that's fine, since the main market for large appliances is offline. But Midea also has many small appliances!"

"The online sales rate for Midea's small home appliances is extremely high!"

"For small items like hair dryers, induction cookers, and kettles, which cost around 100 or 200 yuan, many consumers buy them online directly. Not many people would go to a Midea store just for a hair dryer or a kettle. It wouldn't even cover the travel expenses!"

"Even for the sake of Midea's small home appliances, we can't continue to fight against Vipshop."

"It's not impossible to bow down and admit defeat."

Fang Bo's lips twitched, feeling extremely aggrieved.

He found this humiliating situation hard to accept, but for the long-term development of the company, he seemed to have no choice but to comply.

Previously, there was hope that the rise of Taobao Mall would lead to a surge in sales, offsetting the sharp drop in sales on Vipshop.

But now, Taobao Mall itself is being hit hard, with its daily active users plummeting. How could Midea's sales on Taobao Mall possibly surge?
Not realistic at all.

In this situation, bowing down to Wang Junshan and admitting defeat seems inevitable.

In particular, Midea has a large number of small home appliances, which account for a high proportion of Midea's revenue and profit.

For large appliances like air conditioners, it's worthwhile to go to a physical store. But for small appliances like hair dryers and kettles, online shopping is much more convenient.

"Sigh, it seems this is the only way!"

Fang Bo sighed deeply, and the light in his eyes dimmed instantly.

This retreat led to the complete collapse of the Midea Group.

From now on, when facing Vipshop, they can no longer think of being superior or demanding special privileges. They can only bow down and submit like other brands.

Fang Bo sighed repeatedly and looked at Vice President Cui Xing: "Old Cui, what do you think..."

Cui Xing nodded: "Chairman, this kind of thing is a bit embarrassing, and the other vice presidents probably don't want to go. It's okay, I'll go."

"For the sake of Midea's development and future, I'm willing to swallow my pride and personally go to Wang Junshan to apologize to him!"

"You've worked hard." Fang Bo patted Cui Xing on the shoulder, feeling very sad and full of regret.

If he had known that Taobao Mall was so useless, he wouldn't have bothered accepting Alibaba's invitation.

If he had known that Wang Junshan was so ruthless and tough, he would never have fantasized about putting Wang Junshan in a bad position, suppressing Vipshop, and thus demanding special privileges!
Now look what's happened. Midea failed to put pressure on Wang Junshan and is now almost beaten to death by him.

Yesterday, other brands saw a surge in sales on Vipshop due to the popularity of YouTuan.com.

People who buy New Year's goods and groceries through YouTuan.com's community group buying platform will also buy from you because they see that home appliances such as Gree, Haier, Joyoung, and Supor are cheap with discounts of 20% and 10% and that the platform supports home appliance subsidies in rural areas!
I'm also thinking about getting some new home appliances for the elderly in my family to improve their quality of life!
Those with the means can buy air conditioners and televisions costing several thousand yuan.

Even those on a limited budget can buy a twin-tub washing machine, microwave oven, or even a kettle and hair dryer for a few dozen yuan.

As a result, sales of large and small home appliances from brands such as Gree, Haier, SUPOR, Joyoung, and Little Bear have all surged.

Only Midea saw its sales decline instead of increase due to traffic restrictions and the cancellation of all discounts.

Midea's sales on Vipshop are almost gone, and its sales on Taobao Mall have also plummeted.

This can only be described as adding insult to injury.

What's worse is that sales are still falling today!
As expected, Midea's online sales plummeted across the board on the 27th day of the twelfth lunar month.

Meanwhile, Vipshop's sales continued to climb.

Taobao and other platforms have suspended logistics, so consumers can no longer shop online.

As a result, many loyal Taobao users have had no choice but to turn to platforms like YouTuan.com that are still operating normally.

In addition, YouTuan.com not only continues to operate, but also achieves next-day, two-day, and three-day delivery thanks to the powerful warehousing and logistics system of Future Logistics, SF Express, and Haier RRS. The delivery time is frighteningly high!
Orders placed on the 26th or 27th of the twelfth lunar month can be received before the New Year, which has truly amazed consumers!
They were full of praise for the community group buying and Vipshop's logistics efficiency, and even recommended it to their friends and family, achieving viral growth.

As for Taobao Mall, which only received goods after more than a week, and which gradually resumed shipping after the eighth day of the Lunar New Year, and whose goods only arrived after the fifteenth day of the first lunar month, no one paid any attention to it.

There is no harm without comparison.

This gap is really too big.

These platforms have changed the attitudes of loyal Taobao users, turning them into loyal fans of Vipshop and YouTuan.

These people were used to shopping on Taobao and didn't want to switch platforms, but after this one experience, they can't go back!
(End of this chapter)