Ma Yun is puzzled. Our products are cheap and can attract more customers. Is this a mistake? Low prices are their biggest advantage. Why did Feng Yu say this is a problem?
Could it be that Feng Yu thinks they should increase the prices of their products to increase their profits? But if this is the case, our competitiveness will be weaker.
"Director Feng, I don't understand."
Feng Yu switched on Ma Yun's laptop and went to Taobao to search for Li Gui Sports.
"Look at this pair of running shoes. The retail price is 399 RMB, but look at Taobao. The price ranges from 59 RMB to 399 RMB. Are the pictures the same?"
"Of course, there might be some mistakes in the pictures. Maybe it is a different model, and that's why it is cheaper. Or maybe it is a promotion, and the prices are lower. But most of the products are fake! "
"You feel that fake products are harming the brand's profits. You all are only providing a platform and state that if the brand sells fake products, you all will be held responsible. But how much have you all done over the years?"
"Many people, especially those who are new to Taobao, felt that Taobao's products are cheap. You all are also promoting your products this way, right? But are the prices lower than the cost? "
"That's normal. Even if it is a promotion, it will not be sold at a loss. But why are you selling a 399 RMB pair of shoes at 59 RMB? Is the cost of this pair of shoes so low? "
Why do many people choose Taobao? The most common answer is that it is cheap.
Cheap wasn't a derogatory term, but if it was cheap and the goods were fake, then the nature of the word would change completely.
Feng Yu continued to search for other products. For example, a Chanel lipstick. The original product is priced at 299 RMB, and this is considered a very cheap product. But what about Taobao? There was a piece that cost 29.9 yuan, and there were even cheaper ones.
Is the cost of the retail stores really that high? Absolutely not!
It's obvious that the cheaper products are fake.
Maybe there are some exceptions, and they are not fake. For example, a clothing factory had a fire and was extinguished by the firefighters. But many of the clothes were soaked in water and were sold at a loss. This price is the original product, but it states the reason.
And most of the cheaper products of big brands were simply fakes. Not only did it hurt the interests of the brand manufacturers, but it also hurt the website. If everyone thought that the products on Taobao were fake, there would definitely be a huge loss of users in the future.
Why was Hua Xia able to create so many e-commerce companies in his previous life? Digging Bao had been in business for so many years, and the number of users had already far surpassed Digging Bao. The biggest reason was that others claimed to be the genuine goods.
Many people didn't care how much it was cheaper. They just felt that online shopping was more convenient. Compared to the cheap price, most people cared more about whether the product was genuine. This was because many people had paid a high price, the same price as the specialty stores, but what they bought back was still fake!
I don't want it to be cheap, and what I bought is fake. This is very hard to accept.
Ma Yun retorted: "Director Feng, this is indeed a setback for us. But the cost is too high, and the workload is too high. The results are low, and it might even hurt our foundation."
Feng Yu shook his head. "Do you think that consumers are not stupid? They will definitely know that this kind of cheap product is fake. They are just buying face to satisfy their vanity. These consumers will not complain, and you all are not responsible for this, right? "
"But have you thought about this? Our whole country is cracking down on fakes, and those fakes in the shopping malls are slowly disappearing. But now, fakes are coming back on Taobao. Who do you think will be affected the next time the higher-ups crack down on fakes?"
"We are the ones who provided the platform, and we did not charge them for rentals. But we still charge them for advertising fees, right? Our smart search system is sending fake products to the consumers, right? Is this really not related to the website? "
"There is nothing wrong with using low prices to snatch the market share. But there is a big problem. We cannot sacrifice the product's quality, website's reputation, or even violate laws and regulations!"
"But the consumers are looking at the reputation of the shops. We have the Diamond and Crown rating system, and it is very effective." Ma Yun argued again.
"That's right. The Diamond and Crown rating system can reflect the reputation of the shop, but this can be done. Do you agree? At the start, many consumers do not know how to complain, and even if they bought fake products, they will not complain. The system will just accept the reviews as good reviews. "
"Also, you can search online. Did you see Taobao sellers threatening consumers to delete their reviews and harassing them with phone calls every day?"
"These news might be released by our competitors, but are you sure there are no real cases?"
"I know you're trying to attract consumers and businesses, and you're starting to charge businesses some fees to make money, but haven't you noticed that many shops have just opened, and they've already sold several diamonds in less than a week? Are their products really that popular?"
Many new shop owners who entered Taobao realized that without diamonds, it was really difficult to attract customers. Hence, they looked for people to buy from them. In any case, they were doing the same thing, and Taobao's fees were extremely low. Many of them didn't even charge. The cost they had to pay was extremely low, and they could earn a few diamonds or even a crown.
Buy their products and good reviews. If you look at the internet, many of the good reviews are wrong.
"Director Feng, I know what you are talking about. But there are too many problems now. If we remove all these problems, it will not just be a problem of our workload. Many shops will disappear, and many of our customers will leave. This is because some people are here for the cheap deals."
Feng Yu shook his head. "You don't understand what I mean. Some products might not have their own brands, but they are designed and produced by us. We don't need big brands, and as long as we are willing to promote our products, we will still be able to sell well. Furthermore, there are no risks."
"As for those products that are obviously fake, if we keep them, then consumers will think that Taobao only sells fake products in the future. We won't be able to attract many high-end consumers, and we won't be able to sell those expensive products."
"Director Feng, we have also considered this. Our idea is to split up Taobao and slowly look for reputable shops. We will bring them to a new website, for example, Taobao Shopping Center. As for those products with discounts and promotions, we will let them enter a website that specializes in discounts and promotions. Every day, there will be special offers, just like a supermarket. "
"We will keep the original Taobao website, and in the future, we can increase our efforts to crack down on fake products and make them disappear!"
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