The latest trick in China ecommerce…
“10 billion subsidies” is a new term that is just over a year old, which has been popping up on #ecommerce platforms such as Taobao Marketplace, Pinduoduo, and Suning amongst others. Mainly focusing on the “high value products” that consumers are keen on, many platforms are rolling out the concept throughout multiple categories.
What’s the objective?
There are 4 main motivators behind the #subsidies:
1 – To satisfy the increasing demand of high value products from lower tier cities.
2 – To attract new customers through attractive price & service.
3 – To serve consumers who are willing to try & experience new products.
4 – To accurately capture consumer emotions & psychology.
2 – To attract new customers through attractive price & service.
3 – To serve consumers who are willing to try & experience new products.
4 – To accurately capture consumer emotions & psychology.
Does it work?
Case study #1 - Yves Saint Laurent sold 160,000 lipsticks on #Taobao at 50% discount price in just 2 days. On top of that… 50% of the buyers were from 3rd tier cities and below with 74% of buyers being new users of the brand.
Case study #2 – Pechoin Amino Acid Facial Cleanser became the best selling personal care product on PDD by participating in the 10 Billion Subsidy promotion.
You be the judge…