Summary of the Key Points
This article responds to Zhong Zhaozhao’s criticisms of the platform economy in the program “Dialogue,” which include claims such as “platforms killing offline businesses, creativity, and emotional consumption,” “e-commerce being mere intermediaries,” and “price competition destroying productivity.” By recalling real pain points of offline consumption, analyzing the nature of intermediaries, and providing examples of the rise of new brands, the article refutes these arguments. It argues that while the platform economy has eliminated some traditional offline businesses, it has also reduced consumer costs, created opportunities for new brands, and given rise to new types of offline experiences. The author points out that Zhong’s examples (such as the pricing strategies of Coca-Cola and Pepsi) are debatable and that we should view the laws of business iteration objectively.
1. The “Emotional Consumption Era” Offline Actually Hides Many Pain Points
Zhong Zhaozhao claims that platforms have killed the emotional and creative aspects of offline shopping, but was the offline experience really that good in the past? The author cites the Wuaishan Market in Shenyang as an example: in the 1990s, small clothing stores would buy goods from Wuaishan for dozens of yuan and then sell them for hundreds or even more, with opaque pricing. Back then, buying a piece of clothing could cost a mother half her monthly salary—emotional consumption often came at the expense of other necessities. Online shopping, however, has changed all this: prices are now transparent, and people can buy stylish clothes for just a few dozen yuan, expanding their wardrobe options. Young people no longer have to make difficult choices when buying clothes; instead, they can use fashion as a means to express themselves (for example, the young people at The Box who dance randomly while wearing affordable clothing). This shows that not only expensive purchases are a form of emotional consumption; a wide range of affordable options can also stimulate creativity.
2. “E-commerce is an Intermediary”? But Intermediaries Are Not Necessarily Negative
Zhong Zhaozhao labels e-commerce platforms as mere intermediaries, but intermediaries are a necessary part of the business ecosystem:
- Small offline stores that profit from price differences are intermediaries, as are distributors in the beverage industry (from manufacturers to regional distributors to supermarkets). Should all of these be eliminated?
- E-commerce, on the other hand, has opened doors for new brands. For instance, the seasoning brand Nan Shizhao became popular through online sales and live broadcasts, redefining the market for this product. Yuanqi Forest initially grew through internet channels before having to cooperate with traditional distributors. Without e-commerce, these new brands might not have had a chance to start at all due to the high barriers of the traditional distribution system.
Zhong’s criticism may be influenced by his own industry; the beverage business relies heavily on immediate offline consumption (buying a bottle when thirsty on the street), so he is more inclined to defend the traditional channels.
3. “Price Competition Destroys Productivity”? Zhong’s Examples Don’t Hold Up
Zhong argues that price competition is destructive, using Coca-Cola and Pepsi as examples: they don’t engage in price wars but instead raise prices together. However, this doesn’t necessarily mean healthy competition; it could be a form of tacit collusion. His own ability to compete on quality (such with jasmine tea) is due to the high profit margins in the bottled water market. Ordinary brands may have no other choice but to engage in price wars to survive. While price wars can be problematic, they also benefit consumers by driving brands to improve efficiency. The blame for focusing solely on prices cannot be placed entirely on online platforms; there are also unethical offline businesses that cut corners.
4. Platforms Haven’t Killed Offline Businesses; They’ve Created New Ones
Zhong claims that platforms have killed traditional offline models (like the Wuaishan Market), but in reality, they have eliminated outdated forms of commerce and given rise to new ones. For example, The Box in Beijing is a new type of offline experience driven by online trends: young people learn about fashion online and can afford trendy products, using these experiences to express themselves in real life. Business is about iteration—old models fall, and new ones emerge, building on the foundations of the previous ones.
In conclusion, the article suggests that there are no absolutes in business; change is inevitable. We should view changes objectively rather than nostalgically reminiscing about the past.