What is C2M? C2M Review

Development History

In 2015, Bi Sheng, the former Baidu veteran and founder of Letao.com, launched his new product "Necessary" - C2M e-commerce platform. After six months of launch, the C2M model quickly became popular with a 150-fold increase in sales, attracting many traditional manufacturing companies to join in.

In April 2016, NetEase Yanxuan was officially launched, claiming to be the first e-commerce company in China to adopt the ODM (original design manufacturer) model.

introduce

The core connotation of C2M is "customized production". It connects different production lines through the Internet, uses a huge computer system to exchange data at any time, sets suppliers and production processes according to customer product order requirements, and ultimately produces personalized products in an industrialized customized model. It is a new type of e-commerce Internet business model.

C2M is different from traditional B2C and B2B models. It realizes direct connection between customers and factories, removes all intermediate price-added links, and can provide customers with high-quality, low-priced, personalized products. It will completely change the previous production-driven consumption sales model and realize user demand-driven production and manufacturing.

C2M Model Features

First, remove the intermediate platform link. From a theoretical point of view, the C2M model caters to the trend of removing the middleman in e-commerce to the greatest extent, using a huge computer system to exchange data at any time, and it has achieved a good combination of direct sales by manufacturers, experience marketing, and data traceability.

Second, realize zero inventory of products. The emergence of C2M model has greatly reduced the squeeze of inventory and funds in the production process, and in the link of timeliness, it has also correspondingly improved the management efficiency in production activities. Its significance at the level is that it does not exist in the form of warehouse storage, but is in a state of turnover, and can avoid the risks of price reduction and slow sales caused by market changes and product upgrades.

Third, provide personalized customization. With the acceleration of information circulation and the highly developed communication methods, the consumption concepts of wealthy consumers have begun to change, and they are paying more and more attention to personalized products. C2M just caters to the needs of young consumers for personalized and differentiated products.

Advantages of C2M mode

1. The c2m model eliminates the layers of markups by middlemen. Consumers connect directly with factories, which reduces factory costs and allows customers to purchase products at lower prices, thus maximizing customer benefits.

2. In the traditional sales model, a big cost is inventory. The C2m model greatly reduces the squeeze on inventory and funds. At the same time, in terms of timeliness, it also improves the management efficiency in product production. It can also avoid the cyclicality and slow sales of products.

3. With the current economic development, people's consumption level has improved and they pay more attention to personalization. C2M just caters to the needs of young consumers for personalized and differentiated products.

Disadvantages of C2m model

1. The biggest problem with the C2m model at present is that product quality cannot be effectively guaranteed due to the lack of supervision by middlemen.

2. C2M is directly connected with manufacturers, so it is impossible to have all kinds of goods, and there are certain limitations.

3. After all, C2M is a new e-commerce model. When the quality and price are similar, consumers tend to choose the e-commerce platform they are familiar with.

4. The pre-sale period is long. Consumers want to receive their favorite products as soon as possible, and they have high requirements for timeliness. However, in the C2M model, it takes a certain amount of time for manufacturers to produce after receiving pre-sale orders, so there is a shortcoming in terms of timeliness.

Breakthrough strategies for the development of C2M model

1. Expand market share and enhance suppliers’ enthusiasm for flexible transformation

The C2M model strategy is to achieve seamless connection between customers and product generation. On the one hand, customers can put forward personalized demands and even directly design and generate products and content; on the other hand, product suppliers can quickly respond to customer needs through big data capabilities, flexible manufacturing capabilities, etc., and ultimately achieve personalized product generation efficiently and at low cost.

2. Sales and supervision and improvement of platform functions

The core of C2M is to eliminate middlemen, but it cannot solve a series of existing problems before, during and after sales. Therefore, for users with poor consumer experience, operators or product providers must build a platform to play a regulatory role and create a network environment for consumers to buy with confidence.

3. Strengthen strategic cooperation with own factory brands

Currently, many brand OEM factories have established their own businesses, so cooperating with such factories can minimize the impact caused by reducing the intermediate links. The factories themselves can undertake a series of processes such as design, production, and sales, and can better control costs.