Thirty years after Hedong and thirty years after Hexi, the e-commerce environment ten years ago was completely different from now on. At the moment when the traffic dividend is in the end, what kind of killer weapons can various e-commerce companies come up with?
The founder and chairman of Focus Media have answered everyone's questions at the 11th anniversary celebration of Laogao E-commerce Club, "How to become the first choice in the minds of consumers?"
In addition, Jiang Nanchun said in a post-conference interview that "traffic transformation brand" is urgent!
Why do e-commerce companies build brands?
At present, the e-commerce environment is facing the dilemma of low traffic, and companies that can make money in e-commerce platforms still have considerable traffic, which is conducive to the popularity of their brand.
The role of brands is to build trust, reduce transaction costs, and create transaction premiums . Brands like L'Oreal and Estee Lauder have very high traffic proportions, and the advertising click rate may be three times that of other companies. Secondly, their brand premium ability is also very strong. Compared with companies that promote every month, they only need to participate in one e-commerce festival and sales are coming.
Brands can raise the water level, and occasional promotions can convert potential energy into sales. On the contrary, companies that are engaged in promotions every day will only get lower and lower, and eventually drag themselves down.
Therefore, the purpose of building a brand is to first bring you considerable traffic; secondly, when placing advertisements, the click-through rate and conversion rate will also increase; finally, it is premium ability. Strong brand power can make consumers like you more and the average customer price can also be sold more expensively.
Brand and traffic distribution ratio
Although a brand is important, it does not mean that e-commerce should bet on the brand. If you are a pure e-commerce company, you can promote your brand in a 3:7 way. 3 is brand awareness, allowing users to come to the door actively, and 7 is traffic advertising, which improves the conversion rate of traffic. This is a relatively reasonable distribution ratio, and you will likely be able to make money.
For e-commerce companies that account for half of the online and offline, the ratio is 5:5. Miaoke Landuo's offline proportion is 80%-90%, and 80% of the same brand advertising is taken out, and 1-2 becomes traffic advertising.
That is, the higher the offline rate, the higher the proportion of brand advertising. Because offline shelves have limited capacity, the influence of brand advertising makes people naturally think of what brand they should buy when shopping.
In the online market, goods on the shelves cannot be seen by more people, so more operational means are needed to make users think of you.
How to build a brand for new consumer brands?
When a new consumer brand first considers products and solves survival problems, and then considers building a brand when the annual income reaches 200 million to 300 million.
The low-cost domestic traffic can enable enterprises to reach 200 million to 300 million, or even 500 million to 600 million. At that time, there will be a bottleneck period, and it will not be able to rush up or the cost will be too high in the next stage. By then, the time to build a brand is here. 200 million to 300 million is the starting point for building a brand, and 500 million to 600 million will make the process of building a brand more comfortable.
What you need to understand when building a brand is, what is your core value? Whether there are new features and new categories, we need to find reasons for consumers to choose you over others.
"Eat freshly stewed bird's nest and find Xiaoxian stewed". Others are ready-to-eat bird's nests. They are freshly stewed bird's nests. They are freshly stewed and coldly delivered on the same day. They have a shelf life of 15 days, and 0 preservatives;
"Feihe Milk Powder - Milk Powder that is more suitable for Chinese babies' physique", so domestic consumers will buy it;
Yuanqi Forest, which focuses on "0 sugar, 0 fat, 0 calories", has become a blessing for many users who love to drink beverages but are afraid of being fat. As a new consumer brand, it initially tested online and finally concluded that four products were suitable for development. So through a series of operations, it sold the products to 200 million to 300 million, and finally exploded on Focus Media, breaking through to 2 billion in one fell swoop.
When the company reaches 200 million to 300 million, it proves that its marketing methods are not problematic. At this time, the brand awareness will be spread through Focus Media to help the brand break the circle quickly.
What are the trends of consumer goods and service products in the future?
The social consumption structure is transforming, and young consumption forces are rising. Judging from the current domestic consumption trend, the demographic dividend is over, and the people's heart dividend is unfolding; the traffic dividend is over, and the spiritual dividend is unfolding.
There are three major consumer groups in China: the general public, the middle-class consumption upgrade group, and the Z era people.
√ Mass: People with limited consumption power will focus on leading brands, because these top brands can give them more sense of security, thereby eliminating users' psychological barriers.
√ People who upgrade middle-class consumption: love beauty, play, love health, fear of old age, death, loneliness, lack of love, lack of mood, lack of stimulation, and look for opportunities in "3 love, 3 fear, 3 lack of". In addition to the urgent needs, this type of people also needs products that can provide special features and comfort the soul and emotions.
After working hard, they will compensate and reward themselves, and show their own aesthetics and personality by purchasing a certain brand.
√ Era Z people: younger consumer groups. Brands resonate with consumers through younger colors and expressions.
Among the above groups, the Z era and the middle class people pay more attention to intangible value. Popular products are divided by tangible value by formation cost. After consumption upgrades, the intangible value and cost are very different, among which trust is the largest non-formal cost.
Intangible value can be a projection of people's spiritual needs such as appearance and high school , just like "Jane Eyre Father's Love Formula Yogurt". In addition to 0 additions, raw milk, and lactic acid bacteria, the father's love formula represents love for children, and uses functional selling points as the core output point of tangible value. Intangible value can directly enhance the differentiated value of the product, 0 additions + father's love = consumers don't care so much about the price of the product itself.
In addition, NetEase Cloud Music once put music reviews in the subway car, and many young people expressed that they were "heart-wrenching", but after that, these "heart-wrenching" people may still listen to QQ music when they look at your advertisement. This means that there is no core value output, and without the support of tangible value, we are devoted to intangible value.
What do you think about dusting information? What direction will the future be?
At present, the trend of fragmented and dusty information is irreversible because everyone is a self-media. In fact, brands need to be centralized, rather than fragmented or dusty.
For example, the largest consumer goods company in China once placed advertisements on CCTV, and the screen dominance effect could be seen in the entire China. In the era of mobile Internet, the company was easily diluted if it was still advertising like this.
Mobile Internet is like the vast space. It is difficult to remember a brand in such a vast place. When you stand on the ground and face 5,000 office buildings, 30,000 communities, and 500 hypermarkets in Shanghai, you will naturally remember you if you do these things thoroughly.
① Use repetition to fight forgetting. If a person reads countless information in a day, there are very few that can truly remember. Only those information that keeps repeating the screen can be remembered by you.
② Use centralization to fight fragmentation. Because centralization can trigger brands, CCTV more than ten years ago, Hunan and Zhejiang TV stations 7-8 years ago, and Focus Media 3-4 years ago, these centralized media have allowed hundreds of millions of people to see those brands.
③ Use certainty to fight uncertainty. Previously, Fan Milin named "Sisters Who Make Waves" and received a huge rating, but the second year Yili took over was not satisfactory, which is uncertainty. Focus Media is based on certainty. There are 300 million people in these buildings this year and 400 million people will be available next year. Advertising is placed in every elevator and corridor, and it cannot be changed, so that everyone can see it. This is certainty.
The above three sentences are the core of building a brand. As long as you repeat and continuously, you can eventually enjoy the benefits of time. Quantitative change will definitely lead to qualitative change.
What is the difference between this year and last year’s e-commerce environment?
Compared with last year, the bottleneck of traffic dividends is more obvious, which is an irreversible trend. In such a dilemma, the core of success of consumer goods is the brand . When you reach 400 million to 500 million per year, you must transform quickly, otherwise the market competition pressure will become more and more intense, the degree of intra-conversion will increase sharply, the traffic cost will become higher and higher, the profit margin of the company will be infinitely narrowed, and e-commerce will be more and more difficult.
This kind of hard work is because everyone's perception has not been upgraded. It is like Ulike itself is at a 1 billion bottleneck, but it has exceeded 3 billion through transformation and upgrading, and the effect is remarkable.
How do you view Lao Gao?
I have known Lao Gao for more than a year and he pays great attention to values.
At this summit, Lao Gao shared the truth that "doing something meaningful to society and getting more of it yourself" and he also understood the meaning more and more. I remember he asked me why I was still flying in the middle of the night every day, and I replied, because I love this job, this is my work.
Like me, Lao Gao regards his career as his own work. If we face the end of life, we can be very calm and leave no regrets, because we have left some meaning to the world.
Whatever you sow, what kind of results will be obtained, life is for service, making money is by the way and destined, on the contrary, life is for making money, losing money is by the way and it is by the way. As long as you love something, you can overcome all difficulties and not even feel tired; on the contrary, if you don’t love something, your mental state will not enter a positive energy state.
So I think Lao Gao’s realm is getting higher and higher.
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