Core Insights - The article discusses the business model behind low-priced products on e-commerce platforms, highlighting how merchants manage to sell items at prices as low as 3.8 yuan while still making a profit [1][11]. Group 1: Pricing Strategies - Low-priced items, such as those under 10 yuan, accounted for 35.7% of total transactions on e-commerce platforms in 2025, indicating their growing importance [1]. - Merchants often utilize a "consolidated shipping" model to reduce logistics costs, allowing them to lower the per-item shipping cost to 1-2 yuan [1][3]. - Some merchants employ a "freeloading" strategy, where they include their small items in larger shipments from other sellers, reducing their shipping costs to as low as 0.5 yuan [3]. Group 2: Cost Structure - The production cost for simple items like phone cases can be as low as 0.5-1 yuan, especially when purchased in bulk from manufacturing hubs [3]. - The average profit margin for low-priced items was approximately 15% in the first three quarters of 2025, meaning a 3.8 yuan item might yield a profit of around 0.7-0.8 yuan [3][11]. - Many low-priced products serve as "loss leaders" to attract customers, with some merchants willing to sell at a loss to increase foot traffic [6]. Group 3: Customer Acquisition and Retention - Low-priced items act as a draw for customers, with data showing that stores offering such products see a 30% increase in overall visitor traffic [4]. - Approximately 25% of customers who enter a store to buy low-priced items end up purchasing additional higher-margin products [4]. - Stores with low-priced items have a 20% higher repurchase rate compared to those without [11]. Group 4: Additional Revenue Streams - Many low-priced products offer upsell options, where customers can pay extra for better quality or customization, with 40% of consumers opting for these add-ons [6]. - Merchants often implement minimum purchase requirements to encourage bulk buying, increasing the average transaction value by 35% [7]. - The use of "shared logistics" and optimized packaging for small items can save 0.5-0.8 yuan per shipment, further enhancing profitability [9]. Group 5: Consumer Behavior and Satisfaction - Despite lower prices, consumer satisfaction for items under 10 yuan remains relatively high, averaging 4.1 out of 5, indicating that many low-priced products meet basic expectations [10]. - E-commerce platforms often provide subsidies for low-priced items, which can account for about 5% of the product price, making these items more attractive to consumers [10].

Group 1 - The event "Come to Pack Cotton and Laugh Out Loud" took place on May 2, showcasing a blend of local culture and modern entertainment for the citizens and tourists of Baotou [2] - The performance featured a comedic cross-talk titled "I Am the Singing King," which creatively combined children's songs, popular music, and local humor, engaging the audience with laughter and applause [2] - The cultural experience extended to a tea house with traditional decor, enhancing the immersive atmosphere with nostalgic items, while the Baogang Iron Flower cultural market transformed industrial heritage into lifestyle aesthetics [2] Group 2 - The "HELLO·Baogang" series of creative products serves as miniature city postcards, featuring landmarks like the Baogang No. 1 blast furnace and the Double-Winged Horse sculpture, thus revitalizing urban memories through artistic reinterpretation [3] - The cultural feast intertwined the weight of industrial civilization with the vibrancy of local life, creating a unique narrative as the evening set in over the red-brick factory [3] - The sounds of laborers' songs and the creative market's ambiance contributed to a lively atmosphere, symbolizing the enduring spirit of the city as it transitions into spring [3]