How to break the dilemma of traditional e-commerce traffic?

　　Zhou Zhefeng is a member of the club No. 001 and has 15 years of experience in e-commerce. In 2009, Taobao started its business and created a miracle of the original Taobao brand of maternal and infant brands, and achieved a breakthrough in turnover of 0 to 60 million in three years.

　　At the regular meeting of the Crown Club, Mr. Zhou shared how to break the traditional e-commerce traffic dilemma.

　　The following is a selection of full texts:

　　Many people have suffered losses, but the loss of e-commerce. Many people looked down on e-commerce at the beginning and couldn't see the economy. Everyone should also be warned whether you will be eliminated, because many e-commerce companies are too old now. I communicate with micro-businesses and always have crazy ideas. I add friends every night to the early morning, do training every day, and exhale Porsche every day, but e-commerce friends are all deleted today, etc.

　　Competition is getting fierce, we must understand new business forms

　　There are many e-commerce companies around me who have made hundreds of millions of dollars, but they are not doing very well. Instead, they do it like fish in water when they are tens of millions of dollars. Why are their lives difficult? In the beginning, there were many fakes on Taobao, but many people became rich. There were not so many rules at the beginning. When a platform became more and more perfect, its competition would become paler, just like the previous entity became more and more difficult to do. The benefits did not increase but the costs were increasing, because the entity's channels became stronger and stronger. Now it is the same, and the platform will become stronger and stronger. It is the same for the platform to have you or not. So I hope that everyone here will understand the new business model, and you will try and think about changes.

　　This era has begun to change, and it has become the first to enter people. Whether you post photos or videos, you have to enter people first. Some people have business. In the past, Taobao traffic was free, but now it requires money, and the price is getting higher and higher.

　　Internet celebrities are traffic entrances

　　What is an internet celebrity? Are Internet celebrities an Internet celebrity? Internet celebrities are a new traffic entrance, and all commercial competition is for traffic entrance. Why are the shops on Nanjing Road in Shanghai doing very well? Because Nanjing Road is a well-known place with traffic in Shanghai? A shop was investigated and punished before because it opened the sign of the store on the last day of its business for half a year. Many shops on Nanjing Road opened on the last day and then opened for two years.

　　The physical model traffic is very important. Opening Tmall to grab tofu blocks is also for traffic. Internet celebrities are actually an entrance to traffic. Another explanation for Internet celebrities is KOL, which is the opinion leader. A guest just talked about how to choose an Internet celebrity that suits you. Do Internet celebrities must find beautiful women? Not necessarily, I am a mother and baby. There is an expert in mother and baby named Teacher Cui. He has a lot of fans, a large number of mothers are his fans, and every industry has opinions.

　　There was a mobile phone film sold before. He tested a large number of mobile phone films every day. Finally, he could use his mobile phone film to smash walnuts with his mobile phone, and then many people followed him to buy them. The business model has begun to change. In the past, we did price wars and title optimization, and customers were proactively searching. What you did were proactive search customers. If they wanted to buy, they would go to Taobao to search first. Now many of them were guided customers.

　　We go to department stores to sell things, for example, I will attend an important friend's wedding tomorrow. I don't have the right clothes, I want to buy suits, shirts, tie, etc., but I can't complete them all in one store. You have to try it on each store and walk upstairs and downstairs. Even because your vision may not be good, the matching may not be beautiful. You may also have to find a friend who knows how to match. He needs to accompany you to go shopping and help you choose, which will take a lot of time. The same problem also occurs in e-commerce, which is also a headache.

　　So the internet celebrity solved another pain point, and he helped you match them all, and I think this one is suitable for me at first glance. So the store will match the set of the store to internet celebrities, and then consumers will look at it. If I like this set, consumers will place orders and then distribute it to each store. Therefore, the rise of many business models is to solve the pain points of the industry. I think internet celebrities are the entrance to opinion leaders. Why can opinion leaders form traffic? It is because consumers have demand, but the real society cannot meet it. Consumers will follow them, and follow them will make purchases. So whether it is physical or e-commerce, everyone is snatching traffic.

　　I warn everyone to be eliminated because the traffic entrance has been migrated. The threshold for entities is relatively high, the cost of opening a store is very high, and the time for decline is slow. Why can JD surpass them is because JD updates are fast.

　　The gains and losses of micro-business

　　Why do we get there quickly? , because there is something wrong with his business nature, his products are fooled, they are very powerful, they can find selling points, and WeChat businesses are very powerful in selecting products, selecting people, and selecting selling points. They are just a product that convinces people to sell, but it is limited to attracting people for a product, so they need high profits to attract people. If there is a problem with terminal sales, the things you sell are different from what you said, and they will gradually disappear. However, in this process, we found that selling goods on WeChat is feasible, so we will think about what kind of products are suitable for sale on WeChat.

　　Let’s take a look at the recent sections Alibaba has invested in. Sometimes, at first, I can’t understand it. As long as Alibaba is likely to become a traffic entrance in the future, it will buy it or take a share. I suggest you can circle your customers and do some community things. Because your customers have common characteristics and your old customers have common needs. If you combine their interests and hobbies, lead them to form a traffic community, and form your own traffic, you will not die.

　　Many people asked me if I could do a WeChat business. First, I asked you what you do. WeChat Moments sales need to meet several characteristics:

　　The first is the high repeat purchase rate;

　　The second rigid requirement;

　　The third group.

　　If you meet the requirements, you can do it. We need to learn the advantages of micro-business, his copywriting, his pictures, and his publicity methods. They are very good at grasping pain points to promote and attracting people to buy. For example, brown sugar has a very good positioning since its start selling. Women's menstrual period every month is rigid. There is a wide range of people and every woman has a demand. The positioning of this product is very good, but it is just short-sighted. But we can think about how we can take this path.

　　I just talked about the single-brand pressure system. The second is to build momentum. The ability of micro-businesses to build momentum is too strong. They will pull a group of beauties to drive luxury cars and play around every day. A friend asked me to listen to a lecture by a big name in 1994, so I went there. Later, my friend said that the youngest micro-business in his circle of friends was 9 years old and earned more than 10,000 yuan a month. Why? Because WeChat is simple and convenient to operate. With the decline of single-brand commodity-pressure micro-businesses, platform-type micro-businesses have begun to emerge. Their main system is called the three-level distribution system. Why can platform-type micro-businesses develop more quickly? Because they are improving the commodity-pressure system. You don’t need to spend so much money to suppress goods, price control will be very strict, and the threshold is lowered. Many people start building malls, but they often become profitable and have too strong fission. So the demographic dividend has begun to disappear.

　　Our e-commerce can absorb the advantages of micro-commerce and make micro-e-commerce. Your products are excellent and your customers are loyal, so it is feasible to turn your store into micro-commerce. But the question is, do you still want Tmall? If your old customers become your distribution customers, then Tmall is over. So don’t focus on your products. Your products bring you customers. If your customers are willing to become your distribution, then can you use other products to satisfy them? Some people think that this is my customer and I cannot share it with you, but in fact they are Taobao customers, not yours, but a small number of people’s customers are their own, Taobao is just a platform, such as some internet celebrities.

　　Let’s talk about community. First, there are people and then there are products. First, circle people with common hobbies and common needs. How to play the community? When your customers have needs, you can set up a community and discuss it every day. Many people think that I will do third-level distribution. It’s not that simple. Third-level distribution is just an appearance. The essence is your content. You need to share content. The team operation behind successful cases is very strong, and there is team management after the content. So I want to say that this thing is feasible, full of opportunities, and you can try it. You should pay attention to the key points during the trial process, and there must be content output, team management, and mechanisms to motivate people. The most important thing is whether there are thresholds.

　　Thank you everyone.

　　Q&A session:

　　Member 1: I am in the home appliance industry, and the repurchase rate is very small. It is difficult to do WeChat, which does not conform to the three key points you just mentioned. I think the opinion leader you just mentioned is better. How to implement this matter?

　　Zhou Zhefeng: There are many such experts on Weibo. If you search through some keywords, there will be many people. For example, if I talk about TV, professionals can talk about it for a day, which one is better and which one is worse.

　　Member 2: We are a factory and a clothing supplier for domestic and foreign brands. We do everything from development to design to finished products. We now want to build our own brand, and we are also building a three-level distribution mall. We are now thinking about which category to build and are more confused about product selection. I would like to ask you what opinions you have.

　　Zhou Zhefeng: When you are making products, it depends on how you determine what you do. Nowadays, 90% of WeChat businesses are women, which is why most of the products of WeChat businesses are women's products, so it is more appropriate to make women's clothing. For you, they are not only distributors but also consumers.

　　Member 3: When you were talking about micro-business, you talked about learning their advantages. We make food, such as using their channels or cooperating with them. Is it okay to use their routines for our food?

　　Zhou Zhefeng: This is OK, but you don’t need to find a large team. The price of large teams will be very high. Small teams will put forward some needs. You have to explore it yourself. If you connect with others, you will give you some suggestions and reduce the time, because you have never done it and don’t understand this industry. If you connect with others, you will understand this game faster.

　　Member 4: What is the commission and share of three-level distribution?

　　Zhou Zhefeng: This depends on the product. Of course, the more the better. There are 532 and there are also inverted 235, but it still depends on the product. The more you take out the profits, it mainly depends on how much you can take out. You can get more in the early stage, and the driving force of profit is very powerful. The gross profit margin can be reduced by multiple product types.

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