Discussion keeps the world turning.
This is Roundtable. You're listening to Roundtable with myself, Hey Young, I'm joined by Lee Yee and you should in the studio.
Coming up, season Chinese online shoppers have seen it all.
The sales tactics, the marketing ploys, yet they consistently gravitate towards particular e-commerce platforms for different product categories.
What is it that compels them to make these choices with a big e-commerce marketing event on the horizon?
How are e-market, let's say e-commerce marketplaces, innovating to create captivating shopping experiences that keep customers coming back for more?
And attention please, fitness enthusiasts, peaking university has unleashed a weight loss course that's making the campus well, let's say making waves on the market.
And what are the secrets to shedding pounds, gaining confidence and staying healthy?
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He said FM Roundtable at Foxmail.com, now on Roundtable as we continue today's discussion.
This year's June 18th shopping festival is not just about slashing prices and offering great products, e-commerce platforms are upping their game by enhancing services, scrapping the dreaded pre-sale model.
Why does so many young consumers flock to JD.com for, well, what do they do there?
This and Tao Bao, T-Mall for everyday items and VIP shop for clothes and shoes.
A closer look at the latest financial reports from these platforms might reveal the underlying logic of this diversified shopping behavior.
So are we witnessing a new era of fragmented e-commerce experiences?
So there is double 11, which occurs on November the 11th, the OG of China's online shopping extravaganza culminated in one day, but there's Jan, well, there is June 18th.
Forgive me for not being so excited, but please give us the backstory of the impact of this upcoming online shopping promotion day.
Sure, I think after this W 11 shopping festival, which has already become so well known here in China and in this worldwide, I think this 618 or Lu Yao Bai shopping festival is also becoming one of the largest e-commerce events or festivals here in the country.
It's actually named after a state, June 18th, and it's typically spent several weeks leading up to this day with the promotions and discounts would start as early as the beginning of June.
And this festival has already become a crucial period for retailers and brands to engage with consumers, attract new customers and boost their sales figures.
So when you look at the history or origin of this 618 shopping festival, I think before people usually considered as a major opportunity or a major day for you to buy electronics or mobile phones, digital devices, because it actually was officially launched by JD.com in 2010 to celebrate the company's founding anniversary.
And this platform was actually known for selling digital devices and customers would actually trust this platform when it comes to choosing these items.
But then when you look at more participation from other major e-commerce platforms such as Alibaba's T-Mau, Pin Dodo, and Suning, they have also joined the event.
So it's actually already becoming a national shopping gal.
I think. Yeah, the ultimate celebration of consumerism.
But yeah, it's so funny in China.
I think what we mean is like a carnival.
A carnival. But in English, it's translated, well, also in Chinese, it is a deer.
So a direct translation is a festival.
It's like, but we're not really celebrating anything.
It's just a big promotional day, just like Black Friday, just like any other, I can't think of any major e-commerce shopping discounted big day kind of thing in Western countries.
But I think this is a great idea for the businesses because if one big company is doing this and you kind of want to jump on the bandwagon and you contribute to the momentum.
And at the end of the day, you all profit from it.
And it's like lift the tide rises and it lifts all boats.
Especially, we've mentioned double 11.
It happens later on in the day, later on in the year in November.
So now we're at the mid part of the year.
So it deserves its own e-commerce shopping day.
We can have promotion, I think, of course, a lot of these other platforms aside from JD.com and TMR joining this so-called festival, you know, this actually grew significantly in scale and influence.
And according to domestic media out less sixth tone, the total 618 sales of all e-telling platforms in China in 2023 reportedly reached 111 billion US dollars, roughly five times more than what US consumer spends during Black Friday.
So, you know, this is a huge thing right now in China.
And I think that is why these platforms are trying to improve consumer experience when they are spending money.
So a few years ago, these merchants developed a pre-sale model.
It was actually initially introduced to help manage stock and logistics, allowing customers to actually reserve their items with a deposit ahead of the festival so that in this way merchants could also know how much more stock they needed to prepare.
But you know, after I think years of these kind of, you know, ways or methods of mechanism of pre-sale, a lot of consumers are finding out there are some shortage of this because there is a long period of buying an item because it is a pre-sale.
So maybe you need to pay a deposit in first hand and then maybe you need to wait for another 15 or 30 days to be the actual day that you will get your item shipped.
Right. Yeah. So this pre-sale model has been in place for almost a decade or so, but we've heard so many complaints in recent years.
But why drop it now? Well, I think it's because customers no longer really wanted and they just have enough about it.
And because when you look at this pre-sale model, actually, it usually involves say customers to collect different coupons in advance.
And sometimes it really involves a lot of efforts.
It's not really like, okay, this product is sold.
It's usually so that 300 and now it's 618 or 11, so it's becoming 152.
No, it's not really that easy.
Somehow, I think e-commerce platforms, they are making so challenging for customers to navigate those rules and different, even that's complicated, as strong racing, I would say that.
You know, you got to understand those rules in advance and also participate quite early, say for a 618, probably you got to get prepared and gear up, say from early May.
So that's how complicated and exhausting for customers out there.
And also more importantly is that sometimes the promises that those e-commerce platforms gave before this pre-sale model, they can't really deliver it as they promise.
They're not honoring their promises.
What? What kind of issues arise in what ways do they fall short?
Yeah, actually, there are so many complaints in this way.
As of May, the ninth consumers had filed over 80,000 related complaints via tech firms in a complaints platform, hey, Mao, because the shipping and receiving cycles have become longer, the after sales and problem solving cycles have also extended and issues such as being unable to return or exchange goods and not receiving timely shipments, make consumers feel that their rights are being infringed upon.
So in this way, you know, because of the long cycle of the whole purchase, a lot of consumers are complaining that all of these things, they need to be addressed very timely, but they're not.
Right. And the worst of the worst, in my opinion, is one person, a consumer reported to have paid a deposit for, I can't name the name, a referger raider.
And originally, this person thought that he's paying $3,100 yuan for it, but, and of course, with the pre-sealed deposit, you know, setting in his shopping basket for a long time.
And then eventually, he paid, let me do the math quickly, 1,400 more.
So it takes such a long time, you kind of get, you forget full about it, and then eventually this person actually was not warned, he did not notice and paid up more for this item.
And then, of course, that's frustrating.
Then it becomes meaningless to pay the deposit, because the deposit is for reserve the price of these items.
And usually, you know, the reason that customers would just participate in his pre-sell is that there are, say, promises coming from e-commerce platforms, saying that you can get the most affordable package if you get involved in a pre-sealed, however, if it's not the case, then customers, of course, would also be angry.
And also, another thing is that you mentioned, we call it a shopping promotion carnival as festivals now.
Another fact is that we do have so many, say too many, say shopping promotion carnival throughout the years, which also make customers, they feel like, which day is actually the most proper day for me to buy the product, and so that I can really get a cheapy studio.
So we can't really identify, and we can't really differentiate with different shopping festivals, could also lead to more complaints coming from customers side.
We're also, may I just raise one point, we're all getting a lot smarter about this.
We're talking about really seasoned online shoppers who've, like I said earlier, seen it all in the last more than a decade for sure.
So now to energize and mobilize your consumer base, if not looking out for new consumers, that's quite a challenge for these online marketplace platforms.
So if they're ditching the pre-sealed model, then what else are they trying out, or what else are they touting so that they can get the attention of potential customers right ahead the June 18th shopping day for e-commerce?
I think overall it's for improving shopping or consumer experiences, canceling these pre-seals for these shopping festivals, simplifies online shopping experience and rules to actually enhance their experiences and promote in some way healthier e-commerce practices.
This shift reflects I think Chinese consumer's growing rationality because we are all trying now understand what kind of scheme that you're using and all of these adding up coupons and go for pre-seal or not working on right now.
So leading to a more straightforward approach by these retailers and replacing pre-seals with many a lot of other ways of life streaming promotions, or you can just get into that store directly and get the coupon and buy with a more reasonable price for greater convenience and focus on product, value and affordability.
Can I just also add one sort of side point you shouldn't about what you just said?
Because not only is it people are kind of tired of the concept of multiple coupons, the problem is after going through that really complex math problem, you realize you didn't really get a big discount, right?
I think ultimately people want the really sweet deal, but the merchants as well as the platforms, they have, they've outsmarted you and I don't think we are.
That's a surprise maybe because the businesses, you know, they have the whole year to come up with solutions, I suppose.
Anyway, so I think people want the really sweet deal and that's not something you always get from online platforms anymore.
And also you might as well just tell me upfront how much less can I pay?
Yeah, actually that really makes a lot of sense for customers.
And also, mean time when you think about those say smaller size stores that are having their business on different e-commerce platforms, maybe for them to have this quite complicated promotion schemes and also pre-sell model would also be challenging because if you are going to rolling out this sort of pre-sell, then it means that you got to have good coordination about how to handle all the deposits and also how to do the final payments in a proper and in a way that satisfy your customers.
And also you got to do your inventory right, right?
Especially for smaller size store owners.
And also you got to make sure you can deliver your goods, especially during this major shopping festivals or carnivores because we do see a lot of complaints about deliveries, because it's because logistics company, they also face quite a lot of challenges when it comes to say a prolonged shopping promotion process.
So I think it might also be a good news for different stateholders in this regard.
So you're saying that actually without the pre-sell model it might even be good for logistics?
I think, Penies. I think if the process could be say shorter and it could also really help say companies to say do the inventory and also to basically to sell what the need to sell.
Right. Instead of to have a lot of plenty in balance.
Right. I remember a decade ago, yeah, that's how long I've been doing this show.
It was news that after double 11 and then the logistics companies were really struggling.
They had to hire new delivery crew.
And also, you know, basically there was just too many delivery orders and not enough people doing it.
But 10 years later, I don't hear this kind of news that much anymore.
I suppose also with the development of AI and advanced logistics systems, maybe these companies have figured out a better way to predict and calculate and also sort of allocate the hands who need to deliver as such.
So without this pre-sell model, hopefully they have figured out a solution as such and really, you know, makes so that it makes sense to put this sales tactic to sleep, so to speak.
And also, I like to check with you guys one phenomenon or this is more like status quo that with the e-commerce marketplace, we know it's highly competitive and it's becoming more fragmented as well as solidified in a way that like the reports say, people kind of know what platform they will go for when it comes to certain products.
And also around this time of year, when you know that there is a big promotional day coming up, then maybe they know where to hunt for those deals as well.
Let's say if I want to get a new flat screen TV, then maybe I'm going to a specific platform and if I want more loop paper and hopefully at a really dirt-j-priced, but also I want triple ply.
That's not exclusive. That is not excusable, then I'll go to this other specific platform.
And do you think this is just sort of showing that consumers are becoming smarter, more experienced?
Or maybe this is like a more mature e-commerce environment that we're living in these days in China?
I think so. You know, a lot of these platforms are trying a lot to actually build up a brand image or their own position in this market.
So for example, some of these platforms, they are well known for their logistics.
They offer great service in this way and no matter what kind of problems that you met or after sales problems that you have, they will solve this very timely.
And then in this case, a lot of these people, when they're buying very maybe expensive home appliances, they will go to this certain platform.
And when this platform is well known for selecting good apparel or good looking, I don't know how to describe apparel, but anyway, they will go to a specific platform to buy these clothes.
So I think this is also, you know, I think this is mutual, both for the platform and consumers.
All right. I think it's quite really a natural thing when you look at the e-commerce business have been, has been developed so fast for, say, decades here in the country.
You do see those e-commerce platforms, they are trying to sustain and develop their core strength to stand out in the market.
It's not really like the, the, the earliest phase you do, you see e-commerce platforms, they are trying to, you know, track more customers with price war, try to attract customers by, by rolling out, say, really affordable prices.
But now you see different platforms, they are realizing they can really be competitive in different areas, which, which could also help them to better their services provided to customers.
Great point. This, I will finish this discussion with one example.
You know, remember when Talbao was busy fending off challenges from established players, such as JD.com, an unexpected disruptor came in the form of Pinduoduo, a nested platform that capitalized on the group buying model and deep discounts to lower cost, conscious customers and really shifting the e-commerce landscape in this country.
And I suppose, you know, this is just one of those examples that serve as a stark reminder that in a rapidly evolving e-commerce landscape, the most formidable threats often come from unexpected corners.
And that's why it's called disrupting innovation in the tech world.
So Talbao decided to copy, should I say that?
Well, adopt a similar strategy as Pinduoduo as, it's rolled out the Jin Tuiquan feature, right?
So refund with no questions asked, I suppose.
You don't even need to mail back the product that you're not satisfied with.
And then, yeah, with competition, it usually brings better service.
And which customer doesn't enjoy that?
Coming up, this is the next topic of today.
Recently, the course of peaking university titled fitness, this is physical fitness enhancement, exercise and diet taught by associate professor Zhang Xiao Yuan from the Department of Physical Education has caught much media attention.
The universities we chat official account introduced this course stating that it helped one third of the enrolled students lose more than 5% of their body weight and have of the students reduced their waistlines by more than 5 centimeters, achieving notable results.
So what's so special about this course in delivering weight loss results that it's making the social media headlines?
Well, I think it's really special because it's actually becoming a so professional design in terms of helping you lose your weight.
And according to media reports, actually you can't really sign for this course if you're saying anyone, actually you can only be part of this course if your BMI is above 25, meaning that only those with obesity or who are overweight can sign for this course.
So I think this course is really designed to help people, especially for those young people who are suffered, who are troubled by obesity and who really want to lose in weight in a quite scientific way because the person, the professor you mentioned actually, she has been conducting researches in terms of fitness, diet and also health promotion.
She has also been doing research about overweight people and also people suffering from obesity.
So it's also like a quite academic and scientific process in terms of losing weight.
And also I think their curriculum can be caught as comprehensive because the course is dividing to theory, exercise training and live discussions.
This whole approach covers not just physical activity, but also the importance of nutrition and knowledge sharing.
And of course, visible results, the weight loss class has been running for two years and it has helped one third of the students successfully lose over 5% of their body weight, as Koyan said, with the best record being a student who lost 33 pounds, that's 14 kilograms in one semester.
So I think this is why it's not only helping them to actually lose weight, but also teaching them the knowledge of losing weight, not only the scientific approach of doing exercises but also eating healthy.
And also fostering a supportive community of people who are your classmates, who maybe together can help each other out and boost your morale a little bit since you're all staying on campus and doing this together.
But also, can I just bring your attention to one phenomenon that has long been there.
It's even got its own English term, freshman 15.
So for a lot of young people, when you're freshman in a college, I don't exactly know why, but you put on a lot of weight.
And then in your sophomore year, you think about how to lose it.
Or I suppose it might have something to do with when you're breaking away from your maybe slightly rigid high school day routines and you can eat whatever you want, you eat whatever you want, you might even sleep in, not advised, but not lead a really healthy and orderly schedule.
And that might contribute to gaining those extra pounds.
But it seems like according to this course, as it establishes that these kind of old, almost trite advice, but with scientific knowledge and a pretty, and I guess you really need to put your heart into that and following your plan, then still controlling the weight is possible.
And I also like to highlight one thing that is not just about seeing the number decrease on the weighing scale.
It's also about building muscle and really leading a healthy lifestyle.
