In a regular review meeting of Laogao E-commerce Club in December last year, Lao Jin, the founder of Jin Xilu Home Textiles, was invited to discuss refined marketing, and his uniqueness is the full text of the speech:
I studied Taobao in January 2014, and the store officially started operating in March. I have been working in home textiles for eight or nine years and have been offline in the industry, but I have always existed as a professional manager rather than as a startup. I officially started operating the Tmall store in March 2012. I built the mall directly. Later, after opening the mall, I found a store C for some testing, but I didn’t do it with sincerity and just built a mall. Store C has always been in its growth stage. In March last year, we just rented a small office building, with an area of 100 square meters upstairs and two computers on the upper floor. Moreover, 100 square meters is the building area, so in May, we moved our first home and the office area expanded to about 300 square meters. There were a lot of unfinished office buildings, so we were given a condition that we could rent one by one. By June, I found that we had rented 13 rooms, which was 1,300 square meters based on the construction area. But then it became very inconvenient, like a warehouse. So we moved our current home, and we are now in a factory in Jinqiao District, Pudong, where we work. There are now three places in the country, one is Hefei, which is our customer service center. There are about 20 people and less than 30 people. Our warehouse is still preserved in Shanghai, but there are only four employees, about 20. The trial operation is in the warehouse. In addition, there is a warehouse in Nantong that was established at the beginning of this year, and a logistics department was established and a truck was bought. The warehouses in Nantong are about 2,000 square meters, and the warehouses in Shanghai are more than 1,000 square meters, and the current storage area is 4,000 square meters. Now we have a warehouse under construction of 5,900 square meters, which means that by October this year, we will have a storage area of 10,000 square meters, and have a daily delivery capacity of nearly 10,000 tickets. This is a rough situation for us.
This was our operating situation last year from March to December, because in the previous stage, our turnover was relatively small, only a few hundred thousand, which was rising a little bit. From March to December, the Jinxilu brand has made a total of more than 30 million, because the turnover of our team in the previous stage was probably all from e-commerce, with a total of 50,000,000. This year, the growth of Tmall and the entire category is also relatively fast. In addition, our team foundation is much better than last year. So from the perspective of turnover, our storefronts exceeded 50,000,000 in May. In fact, in May, our home textiles are off-season, and the real peak season is October, November, and December. At the end of last year, we signed a Tmall 30,000,000 K last year, and basically now we have completed the task. This is a state that I want to interact with you before the opening. After the Chinese New Year, do you think you are doing well? Maybe everyone is too modest, but I think this is still a relatively real manifestation. Although everyone is more modest, I think a small part of my life is very good, especially after the Chinese New Year and the second half of last year, I have a clear feeling, that is, the competition is becoming increasingly fierce. Especially on Double Eleven, we put up a high account and made more than 10 billion yuan, with an annual turnover of 11,000, which has had a great impact on the entire society. The owners of physical stores, big and small, have gained unprecedented attention to e-commerce, including physical players who have already become e-commerce, and have also gained unprecedented investment and attention. Because I was fortunate to be a member of the Tmall think tank before, because these people are basically high-end merchants on Tmall, I was surprised and very sad to find that most of them are e-commerce leaders of offline brands. Moreover, it was difficult to see those real big bosses in the past. Their value may have been several hundred million or ten billion a year ago, and it was difficult to see big bosses. Now it is normal to see these big bosses and be able to eat on the same table. What does this mean? This shows that they have unprecedented attention, but we should sweat coldly behind it. What we are giving us is unprecedented pressure. So my personal judgment is that from 2008 to 1002, it may be a good growth period for our Taobao brands. After missing this period, it is not that it cannot be done, because the overall trend is changing and the entire market is changing. In a very fair competitive environment, offline brands actually have certain advantages. Therefore, many things are fair and unfair, and unfair means fairness, so we have encountered unprecedented things. A few days ago, I was chatting with a boss with sales of hundreds of thousands offline. Ten years ago, his advertising investment was over 100 million. The advertising investment this year should be like this on Taobao. He has an advertising budget of about 60,000,000. Such a budget may be an astronomical figure for me, but for him, he still has the ability to increase his investment in rebuilding his brand.
A concept we have been mentioning last year: refined operations and differentiated marketing. This is a sentence I often read last year, and basically just do these two points. At least there is a rapid development. In recent years, whether it is differentiated marketing or refined operations, these are the foundations. Because Taobao is also doing refined operations this year, the data marketing in it has attracted unprecedented attention. Then another point I want to hear is that this year is the year of brand plus marketing, and in fact, the brand is also my personal point of view. In other words, don’t distinguish between online and offline brands, brands are only divided into brands and non-brands. But I think many offline consumers have new consumers who have just been born in the future. They will not distinguish between these Taobao brands, whether they are brands produced by Taobao or offline brands. They will only think that it is a brand or not. In other words, if we want to build the market this year and want to have a great development, such as if we want a turnover of over 100 million or have great ideals, then it must be brand marketing . Why is it marketing? Marketing planning or marketing management is a very critical step to the explosive growth of the brand. For example, some activities that are also brands operate on Tmall or offline are successful and unsuccessful. Why are all the same brands and the same investment? In fact, marketing plays a big role. Some examples can also be given. For example, a few days ago, a friend in our category was doing Juhuasuan. He did Jucus customization. Of course, the brand was his brand. He might have only sold a few thousand orders, or even a few hundred orders. However, because of a marketing concept in his eyes, he invited an old lady in her eighties and nineties to hand-painted some patterns, and some flowers that are more touching. He transferred these hui flowers to the four-piece set of bedding sheets on the bedding, and at the same time did some charity activities. For every four-piece set of bedding, the boss will be given a subsidy of 10 yuan and he can describe the entire design process of the product. The old lady's words were compared with the flower shape, and the designer was reshaping such flower hearts and making the finished product. Finally, we will create a very credible marketing campaign. The four-piece set he usually sells only ￥99. At that time, he had no choice but to fight a price war, but through this customization, he actually sold the four-piece set on the bed for ￥149. After 10 yuan, he still had 139 yuan. Later, he sold it, which may be the concept of brand plus marketing. If I can make a judgment, 2014, 2015, and 2016 may be an opportunity for offline brands. Perhaps after 2016, the opportunity for offline brands has been missed again. Because at that time, some very popular brands might appear on the Internet, two or three of the 10 brands on the Internet popped up, doing very well or more. Because by that time the proportion on the Internet should be very high, I may not see it or have a low exposure rate. So by that time offline brands will be very difficult, and that's what it is. It is a personal point of view to sucking in a wealthy man or enjoying the shade under a big tree.
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