Douyin joins the e-commerce platform "Hourly Delivery", and instant delivery is open!

In today's fierce competition among e-commerce platforms, Douyin e-commerce has launched the "Hourly Delivery" service to expand its diversified operations. Starting from Douyin's "Hourly Delivery" timely delivery service, this article analyzes the reasons for its success and the deep logic behind it, and compares the differences between the "Hourly Delivery" of different platforms. Recommended for students who are interested in e-commerce operations.

There are still a few dozen days left in 2023. Every time this time comes, e-commerce platforms and merchants are very busy.

Why?

In order to get more orders, merchants cooperate with various platforms, optimize products, lower prices, and find anchors to promote products. The purpose is to provide consumers with higher-priced products, sell more, and have a good New Year.

The incremental market of platform e-commerce is saturated. In order to stabilize the market with existing shares, it is not enough to have "more" but also to satisfy the requirements of "fast, good and economical". Therefore, it is necessary to adopt a diversified business operation strategy.

For example:

Take mobile phones as an example. When you want to buy an iPhone, you will compare prices on platforms such as JD.com and Taobao. You will soon find that due to fierce competition, the prices on these platforms are almost the same.

What to do? You will think about who provides better after-sales service? Are there any extra gifts when shopping? And so on. In addition to these, you will eventually wonder whether you can get it fast enough.

Not long ago, in order to create some waves again in the smoke of Double 11, Douyin e-commerce quietly put hourly delivery at the center of the event.

1. What is one-hour delivery?

Literal meaning: It can be in your hands within an hour, instant satisfaction, no need to wait.

Douyin had this feature before, but it was quite special, and it was considered a third-level entrance in the Douyin supermarket under Douyin e-commerce. Now it is different, it is directly taken out of the supermarket and placed next door.

To put it simply, it is quite obvious and can be seen in the main banner position of Douyin e-commerce.

After clicking, you can see various commodities, including fruits, vegetables, meat, snacks, mobile phones, medicines, etc. What does this mean? Is it just about timeliness? No.

From the user's perspective, there are more diversified channel choices and improved purchasing efficiency.

When you watch short videos on Douyin, you can directly click to purchase your favorite products without having to jump between different apps, reducing shopping friction.

At the same time, the increase in channel choices will not only expand the range of shopping options, but also provide better quality goods and services due to increased competition.

I do use Hema often, the quality is high.

However, the only drawback is that the processing fee and delivery fee are calculated together, and the cost is not low. I tried it on Douyin Hourly Delivery and found that the same products within three kilometers are indeed discounted and the delivery is also very low.

From the merchant's perspective, one more entrance means more opportunities to display products.

In today's e-commerce environment, whether it is shelf e-commerce or interest e-commerce, the two most important factors for users are "search and product exposure."

Search behavior is user-initiated, and everyone knows exactly what they want. Product exposure behavior relies more on the platform's intelligent recommendations; when a product has more entrances, it can naturally gain more exposure within a limited time and space, thereby increasing the chances of purchase.

From the platform perspective, e-commerce people are accustomed to calling the icon below the banner carousel the "Vajra Position". The function of the "Vajra Position" is not only to represent a category, but it is also used as a tool for a specific subject activity or reverse flow.

This function also reveals that the team is re-evaluating the importance of a certain market trend and the allocation of resources.

Therefore, a seemingly simple efficiency-improving action not only meets users' needs for efficient and diversified shopping, but also brings merchants greater product exposure opportunities; at the same time, it also reflects the platform's sensitive capture of market trends, opening up a broader development space for Douyin e-commerce in the future.

A long time ago, Zhang Nan, CEO of Douyin Group, mentioned that his highest expectation for Douyin is to make it a "universal entrance" for users on mobile terminals.

To realize this grand blueprint, it is imperative to constantly seek growth and innovation, and "hourly delivery" is one of the key links.

2. Why do you say that?

There are two reasons:

1. Genes

There is a book that can be regarded as an insight into the business thinking of the next century. It is written by James Carse, a professor of religious history at New York University, and is called Finite and Infinite Games.

From his unique perspective as a "player" and a "game," he reveals a profound philosophical wisdom that transcends time and existence.

Simply put, in a finite game, the goal is for me to beat you and you to beat me. In an infinite game, the goal is to keep the game going.

Wang Xing and Zhang Yiming, two entrepreneurs from the same place, have experienced the ups and downs and challenges of entrepreneurship together. Wang Xing's deep admiration for "Finite and Infinite Games" undoubtedly also influenced Zhang Yiming's thinking.

Wait, I'm not bragging.

In many of his public speeches and interviews, he mentioned which books benefited him from in his thinking, and he also mentioned books such as "To Live" and "The Road Less Traveled".

This kind of thinking will definitely affect organizational development. From Toutiao to Douyin Group’s previous business development, we can clearly see a key action: disruptive innovation.

for example:

Toutiao originally helped content creators develop and recommended good content to everyone. This continuous cycle of GROW model made it stand out among traditional websites.

People even joked that ByteDance has incubated products such as Duoshan, Dongchedi, Neihan Duanzi, and Xigua Video, and is like a factory that continuously produces new products.

Later, Douyin became the second curve of Toutiao. On top of that, based on content, it integrated shelf e-commerce and gradually formed an overall ecosystem integrating information, entertainment, social interaction and shopping.

Therefore, this approach reveals the gene of "infinite game thinking".

2. Market needs

The retail industry is like a huge network.

Logistics, platforms, online merchants, and offline stores are all working hard to make the grid of this network more accurate and detailed. The technology behind the hourly delivery will definitely improve business efficiency.

In addition, some public data also show the growth rate of this instant retail.

for example:

The 2023 "Instant Retail Research Report" shows that in recent years, the growth rate of instant retail has maintained an average annual level of more than 50%, and the market size is expected to reach three times that of 2022 in 2025.

What does it mean?

People's demand for instant services is growing rapidly, and this model has been verified by Meituan, Alibaba, and JD.com.

If you don’t believe me, just look at Alibaba’s Ele.me, Hema, Tmall’s Three Hours, JD.com’s new system “Hongtu” released last month, and Meituan’s Flash Purchase, all of which have launched a variety of support measures for merchants.

…..

Although other companies’ capabilities in the four aspects of “more, faster, better, and cheaper” vary, constantly filling in their advantages can also become a key ability to capture the minds of users.

Therefore, it is natural for Douyin e-commerce to upgrade its delivery within 1 hour, combining the completeness of its own infrastructure with market demand. Moreover, it is necessary as Double 11 is coming soon.

In fact, Douyin is already very powerful in terms of traffic and commodity trading.

However, its delivery service has not been strong enough before. Now it has strengthened the "hourly delivery" service and worked hard to improve it, which will definitely enhance the user experience and complete the closed loop from consumption to delivery.

3. Is 1-hour delivery a form of internal competition?

There is no doubt that many people feel that from Meituan’s initial community group buying to the subsequent rapid rise of social e-commerce, coupled with several major offline fresh food and retail giants in China, all of these have contributed to the vigorous development of "instant delivery."

However, I do not agree with the view that Xiaoshida is a finite game and everyone is trying to kill their peers.

Why?

From a habit perspective, it is not only dopamine that makes us addicted, but also speed. Whether it is obtaining information, purchasing goods, or enjoying services, speed has become the standard for measuring everything.

This level of satisfaction is not only reflected in the accelerated pace of life, but more in the inner yearning for efficiency and convenience.

In other words, we have become accustomed to "speed" and our desire for speed has penetrated into our bones. Anything that is slightly slow may make you impatient.

for example:

A few days ago, I went to Luckin Coffee to order a cup of coffee.

Because they have a collaboration with Tom and Jerry, many people lined up to buy it for their children. I didn't want to buy that model, but there were so many people, and I had to wait in line for a long time for other models.

I really didn't want to waste time here, so I walked to Nayuki's Tea next door. There were much fewer people there, and although it was 5 yuan more expensive than Luckin Coffee, I could drink it right away.

This incident made me realize that in order to avoid waiting a little longer, I would be willing to go somewhere else, even if it means spending a little more money.

To be honest, as a man, I am quite rational in my pursuit of speed in shopping and I can keep my composure. The girls around me are different. Even if it is for a small thing or an experience, if I have time, I don’t want to wait.

If you don’t believe me, think about it:

After every Double 11 and 618 promotions, many girls are eager to check the logistics and order status, fearing that the goods will be a few hours late.

Some people use their mobile phones to check logistics as a snack to kill time when they are tired at work. They check it every once in a while, waiting for the "signed for" notification.

So, what can we see?

Speed ​​is not only a demand, but has now become a business. In the current era driven by the word "fast", sometimes, good, cheap, and more will take a back seat. People want to have it now, and it doesn't matter if they sacrifice something else.

In previous years, things were a little different.

Shelf e-commerce has just started, and people pay attention to the experience brought by product styles. Brand and quality take the first place, and you are also willing to spend more time and money for some creative designs and things that express yourself.

The biggest inspiration we can get from Japan's fourth consumer era is that people have realized that consumption is not a waste of throwing things away after use, nor is it endless consumption, but rather self-enrichment.

Therefore, back then people valued quality and quantity more, but now speed and economy have become the new priorities.

If you don’t believe it, look at another set of data:

As of October 20, 2023, Alibaba's total market value is US$207.8 billion, Pinduoduo's market value is US$138.2 billion, and JD.com's market value is US$39.4 billion; did you know that in October 2019, Pinduoduo's market value was only 46.4 billion, while JD.com's market value reached US$63.2 billion.

What do these data reflect?

Consumer demands and choices are changing rapidly. The changes in market structure and company status strongly suggest that the combination of speed, price and efficiency is the condition for the new market.

Therefore, I think that the business model of "delivery within hours + the best value for money" is a wise move to follow the trend of modern consumption. This method can make users feel that buying things is very cost-effective without having to wait too long.

For enterprises, this model can not only quickly meet customer needs, but also stand out among so many competitors.

Therefore, although everyone seems to be involuted on the surface, they are actually making the pie bigger. Future competition will be a competition of cheapness and speed. Whoever can grasp these two points will be able to obtain the "entry ticket" of the user's mind and gain a firm foothold in the market.

4. “Hourly Delivery” of Each Company

However, just looking at the “hourly delivery” module, each company’s capabilities vary.

1. From the perspective of technical performance

JD.com has a natural advantage after years of experience in logistics. With its own logistics system and cooperation with Dada, it can directly achieve delivery within hours or the next day, and the quality of the goods in stock can be directly guaranteed.

Taobao and Tmall are more prominent. After acquiring Ele.me, they provide delivery services to 400 cities; in fact, their approach is more like adding value to local convenience stores and realizing an online and offline integrated operation model.

In addition, the Ele.me Fengniao business also provides delivery services to nearly 1,000 supermarkets such as RT-Mart, Auchan, and Sunac China. In short, it is "the retail version of Ele.me + infiltrated supermarkets."

Meituan. It has multiple delivery channels. In addition to its own delivery service, it also cooperates with Fengniao, UU Running Errands, SF Express, and Shansong.

It is worth noting that in the past two years, Meituan has been strengthening its delivery capabilities and now also provides exclusive transportation services for many brands.

Douyin. According to public information, it mainly relies on Dada, Shansong and SF Express for its “hourly delivery” service. All three companies said that as long as you place an order on Douyin, they can deliver it instantly.

In terms of the technology and logistics capability models of the four companies, JD.com and Meituan focus on self-growth, Taobao and Tmall are busy with empowerment in addition to self-growth, and Douyin makes up for its capabilities through third parties.

2. From the perspective of service and experience:

JD.com is needless to say. In the past few days, it has been playing the game of "fast", but after mastering "fast", it lost the low price.

At a JD.com management training session after Double 11 last year, Liu Qiangdong personally pointed out that JD.com had made prices increasingly expensive for some consumers and that the company needed to return to its low-price strategy.

It was this sentence that led JD.com to start its "low-price campaign". At the same time, the subtext behind this sentence is that JD.com is facing a change in "user mentality". What does it mean? The "fast and good" image that was created for everyone in the past has to shift to "saving and fast".

How difficult is this?

There are many reasons for JD.com's price, such as self-purchase of high-profit categories, few POP merchants on the platform, and difficulty in forming a competitive atmosphere. To be honest, it all comes down to supply-side issues.

Taobao and Tmall are actually on par with JD.com in terms of "hourly shopping".

I have shopping experience on both platforms, and after careful observation, I found that for similar products, the price difference is not that big, but the key difference is the user's "mental anchoring". Taobao always gives people a feeling of good quality and low price.

If 5 points is the full score for Douyin's e-commerce service, netizens would give it around 3.5 points; the other 1.5 points are mainly based on "user consumption habits" and after-sales service.

Meituan’s service experience is another matter, because it is considered a local life e-commerce. If you compare it with its similar company Ele.me, it can be said to be far ahead.

3. From the perspective of category

Meituan’s “Hourly Delivery” category mainly focuses on “life-oriented” products, and has a relatively clear user mind anchor.

JD.com's public information shows that it has launched more than 400,000 full-format stores, with business covering more than 2,000 cities, counties, districts and cities, and the home delivery dimension has covered all categories of goods.

Taobao and Tmall have Ele.me, and with the empowerment of supermarkets such as RT-Mart and Sunac China, it can be said that they have formed a huge ecosystem in terms of product variety. No matter what consumers want, they can almost find it.

Several of them claim to be leaders in instant retail, but I dare not make any rash comments.

However, Douyin e-commerce may still have a long way to go. Although the pilot program started in August 2022, it will enter 15 cities including Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, and Hefei within a year.

In addition, Xiaomi, Yonghui Supermarket and some local merchants have been introduced, but to be honest, it is still not enough to support the potential of the "hourly delivery" category.

Therefore, from technology to service experience to product categories, each company has its own strengths. As for which one is better? Ultimately, it depends on where consumers prefer to buy things.

V. Conclusion

Douyin e-commerce is entering the market, which is a good thing. Everyone is talking about the route of "physical goods + instant service". I personally don't care who can really lead the new pattern. However, who can lower the price and increase the speed is another matter.

Author: Wang Zhiyuan

WeChat public account: Wang Zhiyuan (ID: Z201440)