The key to the successful opening of a Tmall Taobao store: good products!

　　Hot air, a well-known fashion retail chain brand, has an annual online sales of 200 million yuan. At the regular meeting of Laogao Crown Club, Cheng Jian, the operation director of Hot Wind, shared his operational experience and insights from Hot Wind to this day.

　　The following is a selection of full texts:

　　Good afternoon everyone. What I shared today is called operation. I started working in Taobao in 2006. I entered Taobao as deep as the sea. After six years of working, I went to Hot Wind. I am now responsible for e-commerce. I personally like fishing and photography. If you have any friends who like it, you can work with me. The main content I shared today is four. The first is to give a brief introduction to e-commerce. The second is how the products become the core of hot wind. The third is to talk to you about how the operation is played. It is actually very simple. I don’t know what you don’t know. The fourth is that there are many changes now, how we deal with changes.

　　Guests are the first, not the same as those who are not indifferent

　　Let me first introduce to you Hot Wind. Hot Wind was established in 1996 and is exactly the 20th anniversary. Our positioning is precision retail and fashion brand. We are doing fast fashion and provide wearable services to customers. The main categories include shoes, clothing, bags and accessories. Basically, the things you wear can be found in hot wind. We have about 840 branches offline, distributed in more than 100 cities across the country. Wanda is our strategic partner. Basically, we will settle in every Wanda. We are positioned as a fast fashion retail enterprise.

　　Over the years, many offline companies have started real estate to do this and that. We have not done anything and have been doing retail. The hot air products are quite complete. I just told you that men's clothing, women's clothing, underwear, socks, gloves, scarves, accessories, shoes, hats, and everything. The hot air business philosophy is the first for customers. We keep this in mind from top to bottom.

　　As an e-commerce company, we started late. We entered Tmall in 2008 and entered e-commerce in 2011 and 2012. When we first started working in Tmall, we had a better life offline. There was not so much inventory. We only started to have our own team in 2014. One of the main things I did when I first entered the company was to connect. Later, we started to set up our own e-commerce team and slowly started to do everything ourselves. The online products are the same as offline, and some are also offline. The brand has become a little bit more famous for so many years, and it comes with search. Although our operational capabilities are a little worse, our development speed is still OK. Our overall team size is about 120 people, not including warehouses. Someone asked me if I had more than three new people, please raise my hand. I raised my hand very generously because we have thirty people, we have many product categories and many stores, and we all need to upload it bit by bit. This is a rough introduction to our Hot Wind online and offline.

　　Hot air products are our core links, because there are many types of products, we are buyers-style companies. Because we do not have the ability to design, we are all buyers who choose products from the global way of purchasing goods. So I envy our buyers who often go on business trips to Korea, Japan and Europe to watch shows and buy bags for food, drinks and entertainment, while we can only go to Changzhou for operations, and we have a lot of hard work.

　　Product positioning is key

　　When it comes to products, I have some insights. Some of the things we made before were positioned as finished products, and in the future, we may consider people's suggestions more. For example, Lao Gao has entered the second realm, and we have only reached the second level. We are divided into four types of people in terms of women. The first is a loser, which is to buy cheap things, the second is virtuous, which is people who pursue cost-effectiveness, and the third is a petty bourgeoisie, who pursues high-end quality and a certain brand tone, and who has a certain pursuit of life. The fourth is white, rich and beautiful, who are at the forefront of fashion. Hot Wind focuses on the second and third types of people. Our consumer group is college students, but it doesn’t have much money but has a certain pursuit of quality. The second group is a few years of graduation but its income is not very high, and its pursuit of fashion for dressing. We mainly do these people. Some people said that the loser won the world, but now they may die almost. Only when the crowd is well positioned can they make good products. Finally, it is summarized in four words: people-oriented. We need to know what our customers are thinking and we provide whatever they need.

　　After working on Taobao for so many years, we have been paying attention to traffic. No store says that our traffic is enough. In addition to searching for brand terms, most of our traffic is by searching for our single products, so it will extend to popular products and our main promotional models. Hot wind has done a few tasks in this regard. The first is that good products will bring good traffic, the second is to make customers feel happy, the third is to make the selling point reach the pain point, the fourth is that the wine is also afraid of the deep alley, and the fifth is to give people a rose to leave the fragrance.

　　How to do platform activities?

　　I am in operation, and the products are not our strong point, we buy handmade products, and they also ask us to lose our hands because the styles we look down on are basically dead in the end. Hot wind is not an event-oriented player. We have played differently from everyone over the years. Everyone will have many activities every month, Juhuasuan, direct trains, etc. For us, we are doing daily sales, and the activities account for a large proportion of our sales. There are many reasons for this. We are forced to do things, and we also do activities. What is the purpose of our activities? For example, we are doing activities in spring to quickly generate sales, so we will not care about output and traffic. In fact, Juhuasuan is no longer a place for traffic, but a place for conversion. We will grasp the rhythm when doing activities. The first time is to buy new models, and the second time is to clean up inventory, so we will not care about profits.

　　We prefer to play ourselves. We don’t go to Juhuasuan on Double Eleven. Juhuasuan has so much traffic. Why do we still want to join Juhuasuan on Double Eleven? If we go to Juhuasuan on Daily Eleven, we will occupy a lot of traffic. So we will stagger the time of activities with others, and we will control inventory, because many times we will pursue sales and focus on first place. We do not have such a habit, but we have also become first place, and we pay more attention to balance. Our traffic is divided into three parts. The first is our own traffic, the traffic brought by our brand's popularity, the search traffic for keywords, and some autonomous traffic. The second is the platform's giving, that is, the traffic for some activities, and the third is paid traffic.

　　Faced with the current situation of express trains, we also have some strategies. The definition of express trains is a hot catalyst. It takes two months to grow naturally without making a new express train. I made a express train to shorten the time. The second is to focus on defense as the offense. There are many people who search for hot air, but we also need to buy some words. The third is to only seek accuracy but not extensive. Many activities are for accurate matching. We also require accuracy for express trains.

　　We only make the icing on the cake and not the timely help. If you want to use the express train to bring back the dead, then you should not do it. Only if you have good products, you can have good results through promotion. Don’t fight price wars with others. A friend of mine told me that his peers were fighting price wars with him. He sold 69, and that person sold 59. My friend said I want to kill him. I lowered the price to 49. The express train cost 2,000, I spent 5,000, and I stopped him. I said you don’t compete with others for prices. You upgrade your product. The group of Diaosi is well-known. If you want to pursue quantity, you have to follow the path of Diaosi. If you upgrade your product, your customer group will also be upgraded. Then you don’t care about how much your sales are. You just need to catch the group of people you need.

　　There are only a few good locations for drilling exhibitions, but there is no traffic in poor locations. Large events are relatively expensive. Our promotion budget has always been insufficient. In fact, it is enough to spend a little bit of promotion. We need to catastrophes to promote the right products to the right people. Good steel is used on the blade, and we must make early arrangements for activities. My understanding of Double Eleven is a military parade of our overall operational capabilities. Therefore, we must focus on our daily life and not pay too much attention to the rate of return. Promotion cannot determine the conversion rate. Drilling exhibitions are just a tool. Many people spend a lot of money on promotion for popular products. We think it is just a tool, and we can use it when it is right. I have three insights about promotion. First, it is never a life-saving straw. Second, don’t go out to fight and get beaten up. Third, the proportion of control costs is real money.

　　How to use the right changes?

　　The last point is how to deal with our changes. Last year, we made many basic models and sold them very well. This year, we made many basic models and found that they were basically not easy to sell. Fashionable and personalized things are easier to sell. Consumers have undergone great changes. To describe it, we will never regret the loosening of the belt, and we will become haggard for her. What is popular this year and next year is unpredictable, so our company attaches great importance to it. Conversion rate is not that important, the product is the most important. The main change is the changes in the platform and customers. Thousands of people and faces are very suitable for us, because we have a lot of categories. The second is content marketing, but it is not suitable for us. We are a channel brand, not a retail brand, and we have never advertised and hired spokespersons. Tmall International is very strong this year, and they are all ahead, so we can make the product well first so that consumers can like it. This year we found that our customers have changed. The first point is to focus on personality, the second point is to pursue quality, now we look at the cost-effectiveness of the product, the third point is to enjoy the service more, and the fourth point is to share the group. We will never leave any changes. We must let customers find what they want, and we must continue to provide customers with high-quality products.

　　Q&A session:

　　Member 1:

　　Hello, I also agree with what you just said that it is not based on activities as the main purpose. Japanese sales rely on search, and I hope you can share this knowledge.

　　Cheng Jian:

　　As long as Alibaba’s search mechanism does not change, hot products must be valuable. You have to see which group of people your product matches.

　　Member 2:

　　Let me ask you about the sales volume of your WeChat Mall, and how many people do you do WeChat Mall.

　　Cheng Jian:

　　Sales only account for a small part of our overall performance. Our WeChat Mall is aimed at member users who have purchased our products. We will send some offline discount coupons and guide some new products. Sales are not very important, we are more about communicating.

　　Text/Cheng Jian Compiled/@Laogao E-commerce Circle

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