Shopee Store Opening should shift to differentiated competition and improve user experience

Shopee Store Opening price war has long damaged the industry ecology. Shopee Store Opening urgently needs to shift to differentiated competition

Recently, Shopee Store Opening, such as food delivery and e-commerce, has been summoned by regulators for its "100 billion subsidy" strategy. Aggressive promotions such as "zero-yuan purchase" and "20 minus 18" have been stopped. Analysts believe that although Shopee Store Opening's price war attracts traffic in the short term, it will damage Shopee Store Opening's profits, riders' rights, product quality and user experience in the long term. Shopee Store Opening should shift to differentiated competition and achieve sustainable growth by improving service quality and innovative experience138.

1. Negative impact of Shopee Store Opening's price war

(1) Shopee Store Opening's profit compression, forced to reduce quality

Small merchants are trapped in the dilemma of "no traffic if not participating, loss if participating". Some restaurants are forced to reduce the quality of ingredients or close their online businesses due to 1 cent orders3.

Order volume ≠ profit growth. Shopee Store Opening needs to bear the subsidy cost + delivery fee, which ultimately leads to "losing money to gain publicity"1. (2) Riders’ rights are damaged and safety hazards increase

The short-term surge in orders leads to a sudden increase in delivery pressure. Riders may speed or drive in the wrong direction to catch up with orders, increasing the risk of traffic accidents1.

Shopee Store Opening compresses delivery costs, and the growth of riders’ income is unsustainable. In the long run, it may cause labor loss3.

(3) Consumers benefit in the short term but suffer in the long run

Low prices are unsustainable. After subsidies stop, prices will rebound or even go higher (such as the historical rules of online car-hailing and food delivery industries)8.

Shopee Store Opening may reduce the quality of goods/services to reduce costs, and consumers will eventually have to pay for the “low prices”11.

(4) Shopee Store Opening falls into a “money-burning trap”

Users come because of subsidies, but they leave when subsidies disappear. Shopee Store Opening finds it difficult to cultivate loyalty and its profit model is fragile1.

Long-term price wars lead to stagnation of industry innovation. Companies do not have enough profits to invest in research and development, and fall into low-end competition7.

2. Differentiated competition is the key to breaking the deadlock

(1) Shift from “price war” to “value war”

JD.com builds trust through self-operated logistics + genuine product guarantee to avoid being involved in pure low-price competition4.

Meituan explores instant retail and combines local life services to improve user experience, rather than simply subsidizing8.

(2) Data-driven personalized services

Amazon uses user behavior analysis to achieve accurate recommendations and increase repurchase rate6.

Netflix customizes content based on viewing data to avoid homogeneous competition6.

(3) Optimize supply chain and user experience

Improve delivery efficiency (such as drones, smart warehousing), rather than relying solely on low prices to attract users12.

Strengthen after-sales service (such as transparent return and exchange policies) to reduce Shopee Store Opening losses caused by the abuse of “refund only”8.

(4) Industry collaboration and policy guidance

China Association of Automobile Manufacturers calls on automakers to stop price wars and shift to technological competition11.

New EU regulations encourage differentiated services, such as charging 5G networks according to performance levels to avoid homogeneous internal competition12.

Source:Shopee Store Opening:https://www.cnjiaxiao.com/category-Shopee%20Store%20Opening.html

Source:Shopee Cross-border E-commerce:https://www.cnjiaxiao.com/category-Shopee%20Cross-border%20E-commerce.html

Source:Shopee Store Opening:https://www.cnjiaxiao.com/category-Shopee%20Store%20Opening.html

3. Future Trends: Healthy Competition Ecosystem

Stricter Regulation: China’s State Administration for Market Regulation has asked Shopee Store Opening to “stop involutionary competition” and may strengthen law enforcement in the future13.

Upgraded consumer awareness: Users are more concerned about quality and service rather than simply low prices, such as organic food and high-end electronic products, which have seen a 6% increase in demand.

Technology empowers differentiation: AI and big data analysis help Shopee Store Opening accurately locate demand and avoid blind price wars210.

Conclusion: There is no winner in the price war on Shopee Store Opening. Shopee Store Opening needs to shift from “competing on subsidies” to “competing on experience” and build long-term competitiveness through differentiated services, technological innovation and compliant operations. Regulators, industries and consumers need to jointly push the market towards a healthy development model of high quality and low prices.