The capital in the track is so restless that people can't help asking, what will be left after this wave of glistening money runs out like water? Not long ago, the Ruixing thunderstorm burned billions of subsidies, and it changed from a positive case to a negative textbook overnight.

Throughout the history of the war of burning money subsidies in China, the wounds are always unhealed, and the pain is forgotten first.

Counting the last ten years, from 20 1 1, the story of the internet giant began a thousand-regiment war that reverberates so far, followed by almost progressive years-e-commerce subsidy war, online car rental subsidy war, take-away subsidy war, and * * * enjoy bicycle war.

Looking back at the failure of the new three regiments at this time, it has become several waves in the tide of burning money. So, what is behind the high subsidies of the new three regiments?

1. Money for time

There is a philosophical saying here that what you see is always what others want you to see. When we think we have grasped the trend of big enterprises, it is often the time when the overall situation of others has been decided.

The arrival of the new Third Regiment seems to many people to be like barbarians rushing in and trying to kill the old master with "disorderly fists". However, in fact, the Internet giants did not come in with a fever, but they had long been eyeing it. The third group trampled all the pits on the road and dragged their brand-new "car" out.

However, there are advantages and disadvantages. Stepping on other people's footprints late will avoid stepping on thunder, but it will certainly lose the opportunity. At this time, it is necessary to exchange money for time to get back the opportunity. In the face of the aborigines on the track, the original capital accumulation is not enough in front of the new third regiment. Just press the spell and grab the increment they haven't developed yet.

In the face of competitors who are also Internet giants, what we have to do is to stay ahead of our competitors and seize enough market share with money. This naturally involves the following points.

2. The opponent is doing it, right or wrong.

A saying in movies is, "Don't let your enemy get what he wants". Therefore, some big names in the track are actually passive entry, and the same is true for the10 billion subsidy. Is the opponent doing right or wrong?

If you don't do it, others are doing it, regardless of whether others have carved up your market share or not, but when others are doing it in full swing, the volume will definitely overwhelm you. Jia Duobao and Wang Laoji killed Lao San and Zheng Qi at the herbal tea track, which is the best example.

3. Traffic war, not community war

Regional associations are doing community group buying, and giants are doing social e-commerce. Internet giants all know that "those who get traffic get the world", and they want to start a traffic war from the beginning, not a community war.

Therefore, when the new third group entered the market, it has always been a encirclement and suppression point for community group buying by misappropriating the entire ecological chain behind it. Breaking through the traffic carried by this point is their goal, and survival and profit and loss are not within the consideration of the new third regiment. Therefore, it is "necessary" to invest billions of subsidies at every turn.

On the other hand, the regional community faces a point, which is the only point in itself, but it hopes to enter the whole face of local life through this cut-in, bearing a lot of burdens, making profits is important, and it is more important to survive first.

4. User retention, not society itself.

As mentioned above, Internet giants are all vying for traffic. The ultimate goal of the high subsidy of the New Third Board is actually the user retention we have been talking about, not the project itself, nor the society itself. The so-called "drunkenness is not about wine."

In other words, the New Third Board is essentially interested in users themselves, rather than just burning a lot of money in the community business, which is why it is an important logic to place a full order on the parent company APP of the New Third Board;

On the other hand, it also explains why the voice of authorization has been heard by internet giants. Giants are pursuing the retention of users of their own platforms, so it doesn't matter if I subsidize you, but since ancient times, who can tell the situation that "a hundred birds are not born, rabbits are dead, and dogs are cooked"? After all, according to the present situation, there must be brave people under the four rewards, which can really bring all kinds of efficient events.

5. Absorb dominant genes as the third generation of e-commerce.

Some time ago, I read an article saying that the new e-commerce era has changed from "amoy" to "spelling", which means that e-commerce is changing from traditional search e-commerce to recommended e-commerce. To put it bluntly, it is something that was bought online in the past, similar to planned consumption. Now it is social+algorithm that fills the shortcomings of traditional e-commerce in the scene.

Now the emergence of community group buying is a brand-new retail format, which can be understood as the third kind of retail and the third generation of e-commerce. The centralized e-commerce represented by Taobao and JD.COM is 1.0, and the social e-commerce represented by Pinduoduo is 2.0, so the distributed e-commerce based on sales and centralized procurement is 3.0 of e-commerce.

On the one hand, the Internet giant's burning money is definitely to reproduce various advantageous genes such as supply chain efficiency and low customer acquisition cost of the third generation e-commerce. However, because the community was born in the ecology of WeChat, although other giants participated in the war, they would never be prepared to live under the direct rule of Tencent, not to mention their own commodity system, payment system and delivery system. Why do they pin their heads on other people's pants?

6. Establish N business growth curves.

The complete interpretation of the subtitle is that the internet giant tries to establish the imagination space of the nth business growth curve through community group buying, and provide weight for the total value of the parent company.

The most typical representative here is Didi. As the big brother in the online car, Didi is also a great success. At that time, the subsidies were so amazing that taking a taxi was cheaper than taking a bus. Soon after the merger, Uber was merged and Bumblebee was intercepted until subversion. After that, Didi successfully conquered the same city track. After that, cheap taxis and low-priced takeout are gone forever.

However, it is not always a good thing to dig deep into a field. It can be seen that the current valuation of Didi stays at 50-80 billion, which is not the fault of Didi, but the constraint of the industry ceiling. Therefore, the strategic goal of Didi IPO has not officially landed.

Nowadays, it is urgent to cut into the community group buying track and shout the slogan of "no upper limit for investment, winning in the market first". I wonder if the second growth curve can be successfully established.

Summary:

There must be two sides to the war of burning money, and both advantages and disadvantages will exist, so I won't discuss it here. On the one hand, I want to retain the original users, on the other hand, I want to seize the new traffic, and then put aside the ecological binding influence of others to create my own closed loop.

Therefore, as an Internet giant's money burning behavior, the author can only say that the introduction of any project or the landing of marketing actions has its strict background and position behind it. We should not only look at the superficial actions and what we want to express, but also explore the logic behind them, and we must not blindly follow them.

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