Where to start with e-commerce - Traffic is not a business, it is the result of a brand winning the hearts of the people

During the epidemic, the live broadcast room of Laogao's e-commerce circle invited Jiang Nanchun, the founder and chairman of Focus Media . As the boss with a market value of 100 billion yuan, he shared with fans of the live broadcast room "How to become the first choice in the minds of consumers". The following is the full text of the content:

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1. E-commerce people cannot send goods during the epidemic, and the bosses are all anxious?

E-commerce cannot send out goods during the epidemic. I think everyone should not be anxious. In our work history over the past 30 years, this kind of thing has been encountered many times. These are inevitable in the cycle. The world will experience these things, and these will be better. They are local difficulties. You may not be able to change the world. You have to change your heart and use a more positive and optimistic attitude, and the world cannot be destroyed.

2. Do e-commerce companies have to build brands? What are the benefits of building brands?

Not all e-commerce companies need to build brands. You can see that companies in different cycles are different.

E-commerce companies with a total of 000 million to 200 million do not need to be brands , but they can plant grass accurately, distribute accurately, and iterate some products;

200 million to 2 billion to 3 billion, you need to build a brand , you need to break the circle of brands and rush to a larger market, become the king of segmented categories, or become the first choice for a certain segmented scenario and segmented functions. Positioning exploded, and finally the brand broke the circle;

After reaching 3 billion, you will enter a bottleneck again. What you need is the product matrix , and new products with correlation can also be triggered in scenarios, bringing more purchase frequency;

10 billion What you need is value output, such as just do it, identity proof, cultural identity , and the final purchase is because the heart is connected with the product, the inner resonance, and the cultural resonance.

The practices of e-commerce companies at different stages are different. They do not necessarily have to build brands. They may start with functional selling points, later on identity proof, and then value output. The key is not to go to the wrong stage. What is most afraid of is that tens of millions of e-commerce companies start to talk about feelings and values. Only the leader brands can talk about value output. Only very rich people say that they are not interested in money, and they can be said that they are not interested in money. It would be bad if they are not interested in money.

3. Will the market consumption upgrade weaken in the next 2-3 years?

Over the years, consumption has been upgraded while degraded. The public's consumption needs to be cost-effective, which means that the tangible value divided by whether the formation cost is high, but it is actually functional consumption; the middle class is emotional and spiritual consumption, consumption of intangible value, consumption is categories, self-label, and products are projections of self-personality.

From function to identity consumption and spiritual consumption, this is consumption upgrading. There are two directions: one is refined and the other is health. The public needs higher cost-effectiveness and stronger supply chain capabilities to reduce costs and improve cost-effectiveness. Either it increases the emotional premium and has a stronger emotional resonance symbol. Consumption upgrade is the self-reward of the middle class after working hard and becoming a better self.

4. E-commerce is also in the process of being in the process of being fierce, so how can we make differentiation?

Everyone found that the demographic dividend and traffic dividend disappeared and entered the era of stock game. It was easy to kill both quantity and price, that is, internal circulation. When the demand was not that big and the business did not increase, they started to promote and promote. The promotion began to be effective. Later, they did not promote or sell, and they started to engage in traffic.

The time for traffic dividends has passed, and you find that the precise traffic is all about it. As soon as you increase, your traffic will immediately turn inverted, and everyone will encounter this problem. What is the essence of consumer goods? It is to create a differentiated value, either create a new category or create a new feature. Then seize a time window to saturate the attack, and finally the created category must have mental property rights. Consumer products are homogeneous, you only have one time window, leading the opponent 6 months ago has created new categories and new features, and saturated attacks at this time.

There is nothing that cannot be imitated in consumer goods, but more importantly, after creating a category, whether this cognition can be solidified. If cognition is solidified, it means that with mental property rights, consumers will have preconceived ideas. You may create a differentiated value for consumer products, but this differentiation is just a window of time.

How to create differentiated value? There are many ways to become the boss in the segmented markets, such as the milk powder industry, children aged 0-6 months old, children aged 7 months to 12, all have different targeted products, and international brands target the high-end market and form different selling points according to the needs of the physical development stage.

5. Some industries are suitable for brand building, some industries are suitable for big brands, and some industries may have to make only one small brand after struggling for a lifetime, or it is impossible to make a brand. What do you think of the industry and brand?

High-frequency and high-value things are basically rare. Most of them are suitable for branding. One is high-frequency and low-value, such as soda, beverages, and food. One is low frequency and high value, such as automobiles and real estate. It is not easy to build a brand with low frequency and high values. It does not require a brand with low frequency and low values. It only takes one every few years or even ten years. It has no great value to build a brand. Low frequency and high value, high frequency and low value are all OK.

6. Why is it difficult for e-commerce to produce brands? There has not been a brand in the past ten years, but instead, it has produced brands in recent years?

New consumer products have grasped new human and new needs. The reason for their rise is to capture new traffic. The traffic dividends of various platforms have been grasped . After they rise, they have not returned to their essence. The essence of consumers is called channel penetration rate and mental penetration rate.

Channel penetration rate is whether you are online and offline, your channel is deeply distributed, and your ability to harvest traffic is strong. This is called channel penetration ability. Seizing the mind is in the consumption mind, otherwise you will easily be swept away. Why is it easy to build a brand offline? Because of limited shelves and limited consumption, there are only a few e-commerce brands you think of, which are easier to succeed.

The Internet is called Unlimited Shelves, which are infinite in nature and are particularly easy to roll. If you rely on the traffic dividend, your competitors can also enjoy the traffic dividend. If you can play, he will also play. This is the technique. What is not easy to roll? Brands are not easy. Few people make cola and herbal tea, but they just dare not roll them. These brands have entered the minds of consumers.

Of course, if you want to make a good product, it will be eliminated by the market long ago, but the essence of consumption is not the product. After creating a product with differentiated value, you must seize the time window to solidify it. It is not that the Chinese cannot make Coke, but that they cannot imitate Coke's position in the consumer's mind. This is the real moat.

What is a brand? It is continuous traffic , high conversion rate, high popularity, high recognition, and high premium ability. On the other hand, if there is no brand, you can only rely on traffic on the Internet, and products and traffic methods will be imitated, there will be no moat, and it will be easily swept.

If the e-commerce company that has received the traffic dividend is not taken over, it must accept the brand dividend, because the traffic dividend does not belong to you, it belongs to the platform, and it will pass, and you can't even count as a platform. What you need to grasp is the essence, which is the algorithm of the human heart, and the brand is the algorithm of the human heart. Only by calculating the human heart is a more advanced algorithm and you can make money on the platform.

Everyone should never regard traffic as the foundation of business. Traffic is not business, traffic is the result of a brand winning the hearts of the people . Why does Taobao have traffic? Because you think Taobao is omnipotent, and you can’t find anything to find Taobao; why does Tmall have traffic? Brand flagship stores are all on Tmall, and you think you can go to Tmall if you buy genuine products; why does JD have traffic? You can get there in the morning and afternoon, and you look for JD; why does Vipshop have traffic? Big brands have 30% off, and you look for Vipshop; why Pinduoduo has traffic? How much more is Pinduoduo?

Their traffic is because the brand has won the hearts of the people. Never enjoy it in traffic. The ultimate decision is to layout. The traffic dividend will not last long, and the basic traffic dividend is over.

The essence of consumer goods is first, in-depth distribution, and the second is to force the mind to occupy the mind. Today, new consumption needs to learn from old consumption, and make up three lessons: the first is to make up the supply chain course; the second is to make up the offline channel course, seize offline channels, and limited shelves; the third is to get rid of the mind.

Today, old consumption makes money or new consumption makes money. Wahaha, Nongfu Spring, and Wangwang have 20-30% net profits. We need to learn from old consumption. They have not kept up with the situation, but they are playing the essence, and limited shelves have seized their minds. Price and traffic costs are dead, and without a brand, you will eventually take away your profits.

7. How can we make differentiated competitions when making standard products?

First of all, there must be a differentiated innovation in the product. If you are the boss, it doesn’t matter even if you don’t innovate. The boss is calling for banning the category. The second brother is called feature , and this feature is best opposite to the eldest brother, and JD.com is an example. The third brother called Vertical Focus, and Vipshop, a website specializing in special sales, is an example. The fourth brother is called Pinduoduo, who does social group buying . This is true in every industry, and general business wars are all about these four logics.

The boss is fighting a defensive battle, the second brother occupies the characteristics, the offensive battle, the offensive battle, the third brother focuses vertically, fights guerrilla warfare, defends the hill that he can defend, and the fourth brother is called flanking battle, landing in an unmanned area, creating his own new product.

All walks of life will always have opportunities. Don’t think that you can’t find a unique positioning. It depends on whether you want to seize the traffic dividend or find uniqueness in the product. Either invent a new function or serve a unique group of people. Functional differentiation, vertical group gathering and differentiation can be achieved. It becomes the first choice among subdivided functions, subdivided groups, and subdivided scenarios.

8. Under homogeneity, in which direction should small brands and small home appliances in the Pearl River Delta break through the encirclement of big brands?

First of all, you have to break through homogeneity, because homogeneous products will definitely be rolled out in the market . If you are a small company, focus vertically and serve a group of people, cut to segmented scenarios, and become the first choice. If the market is not big enough, look for segmented people and segmented scenarios. One person’s food, single women, and the elderly are all segmented people.

Cut the crowd into detail as the first choice for a certain subdivided population and the first choice for a certain subdivided scenario. There are many in the Pearl River Delta, such as sk machines. It has made a neck massager. The infrared light is very easy. From this perspective, innovation can be endless. The core problem is that it is not in homogeneity and there will be no results. Grasp a differentiation and rush out, and then try to solidify its consumption.

9. How long will it take for new consumption and new brands to benefit from the dividends?

I think there are still many dividends. From the perspective of new consumption, I think a generation needs a brand . China's new consumption has broad future prospects. The problem with new consumption is that everyone is in the traffic dividend. Don't be so pessimistic. I think that as long as the e- commerce people with new consumption continue to move forward and discover new human and new needs, the new generation will definitely need new brands.

25 years ago, Nongfu Spring was a new consumer brand. Every generation has a new consumer brand, so don’t worry about this problem. The continuous change of people, demand and change of demand, and the upgrading of the times will lead to new brands. The core problem is that when a new consumer brand becomes a brand, you must understand that you are not popular by traffic, because after being ripe by traffic dividends, you do not think about what differentiation of your product is and what unique value it provides to which group of people. Think about this problem clearly and return to the fundamentals. Differentiated value has been created, which is how to seize the time window and solidify the problem of consumer cognition.

10. The recognition of sub-categories is not high. How to differentiate and refine the core selling points? (Mark pen category)

It depends on your marker pen as a leading brand of marker pens. It may have been hundreds of millions of dollars, and others don’t know about you. If you are the leader of the market, you can say that if you choose a marker pen for five consecutive years, you will be far ahead in sales. If you focus on marker pen for 20 years, you will be the leader. If you are the leader, you will quickly take the oath because there is no leader in the industry and consumers are following the crowd. If they know this brand, they will reduce the trial and error cost and choose you.

If there is a boss in this industry and this boss exists but consumers don’t know him, you can grab the boss and find ways to find selling points one by one and become the boss in this category.

11. How to position and differentiate the ToB business for customizing gifts?

First of all, what is the unique value of your gift customization compared to others? The demand on the B-side is that you hope that the price difference is very big, and you hope that you can give it a lot of value, which is many times more than the cost, which is great value for money, or provide new and unique gifts, or provide greater face and a stronger sense of value. You can also provide special gifts for banks to provide gifts for high-end people and understand what high-end people want. You can cut into a specific group of people to serve. The Chinese market is big enough. If you do gift customization, you must ask yourself why you choose you instead of others.

12. How can differentiation be accurately entered?

Differentiation is the segmentation function, you have created a brand new function. All successful brands must have product advantages , what are the differences between you and the competition, and what are the pain points of consumption. Is there a differentiation in function or something different? Then we cut into the subdivided population to serve specific groups, so my content can be done with specific groups. I don’t care about others and become the first choice for this group.

13. How do retail pharmacies build segmented tracks?

Retail pharmacies can have different services, either they are all things or there are special medicines that are not available elsewhere, or they can be served 24 hours a day, or they can be delivered to their homes, 15 minutes, or they are special pharmacies that serve middle-aged and elderly people. It doesn’t matter if the elderly come in and don’t buy medicines, they can do a free new test.

14. Electric bicycles are rolled seriously. How should private enterprises make breakthroughs in electric bicycles?

Both Yadi and Emma have developed their own characteristics, which are nothing more than starting from different needs perspectives. One is to cut the crowd, serve women, and the young people, and the elderly. One is to cut the functions and the other is to cut the scene. There can always be many kinds.

But what is important is what your product advantages are, what is good at, what is differentiation with competitors, and what consumers’ needs are . The three-point combination will find a very good point.

15. Traditional Taobao brands are being competed by a large number of new brands. How can we make a breakthrough now?

E-commerce brand essentially should have omni-channel channels . No matter what Taobao brand or Dou brand is, the life of various named brands is not in your hands, but in the hands of the platform. For you, the entire platform should be improved. On the one hand, it is to improve the operational capabilities of each platform, and more importantly, how is the in-depth online and offline distribution capabilities, or ask yourself what unique value it provides.

Taobao brand is not important, it looks like the traffic dividend idea. You should ask me which specific value I have provided to today, which is the foundation of the business. You need to have a competitive entry point in the consumer's brain. Every brand in the market occupies a unique point. You need to ask yourself what the unique point is. This is the core of your entrepreneurship, not about which platform you started.

16. Does state-owned enterprises have the opportunity to increase the amount of salt saving? I want to make high-end salt, but the ingredients of high-end salt and low-end salt are similar. What should I do if many consumers don’t agree with it?

The so-called good and high-quality things in this society are just a little bit better, and it is impossible to say that they are many times better. For example, salt used for steak, salt used for seafood, and salt used for barbecue. This is a special project. The second possibility is that the purity rate is particularly high, 99.99% purity rate, or healthier salt, I removed more impurities.

High-end salt in this society is not much money. You can classify it according to salt. There are many ideas. Don’t think internally that there seems to be no difference. Whether the difference is big or not is seen in the consumer’s perception . If consumers think the difference is big, it will be big, and if consumers think the difference is big, it will be small. The key is whether your education can be in place.

17. How to conduct differentiated marketing of hairy crabs in Yangcheng Lake?

Yangcheng Lake hairy crabs are a place of origin that consumers think. They are not a brand. They have to look at the differences between Yangcheng Lake hairy crabs. For example, I only sell Yangcheng Lake hairy crab kings, only sell crab kings weighing more than half a pound, hairy crabs without antibiotics, heavy metals do not exceed the standard, and export them to many countries such as the EU. They are either heavier or healthier, and there are many brand new things that can be found in Yangcheng Lake.

18. How to choose a good industry?

Everyone is thinking about the industry, and basically everyone else has done the industry you can think of. Unless you have had insights from ten years and can see what will happen in ten years, then you can set out today. I think this is a kind of forward-looking nature. Why Alibaba succeeded? In 1999, people thought e-commerce could change the world. If your perception is ten years ahead of others, you may bring a huge opportunity to lead your opponent.

The second type is cooperation in other industries . For example, Focus Media combines elevators and TVs to have newer ideas. On the contrary, it thinks about problems from the human life circle rather than the geographical location, creating a new field that is completely blank.

19. Is there still a chance for sauce-flavored liquor? How to get started?

The sauce-flavored liquor is actually very hot, but the hot is the channel, not the consumer side, and everyone is pouring into the channel side. Now there is no channel. A good dealer and a powerful dealer already have 4-5 brands of sauce-flavored liquor, and the channel has been occupied by people with real strength. Now it’s hot channels, not consumers.

Today, ToB needs to deepen its efforts. For example, if you have a certain channel, you need to help this channel sell. In this process, we find the uniqueness of sauce-flavored wine. For example, Guotai, Jinjiu, Jinsha and other companies are all very powerful companies, and they all have their own unique features. These companies have occupied better channels and better positions. You need to make uniquely positioned products in the market segment.

20. How do you view Feihe’s success? Can Feihe be replicated?

I think all success can be replicated. First of all, Feihe's product supply chain is very good. The first one is to create his own supply chain. It only takes two hours from raising cattle on the ranch to milking to powdering, and it is also at the 47-degree north latitude gold milk source belt. However, Feihe's real takeoff is a unique differentiation. After melamine, all international brands are internationally professional and safe.

When dealing with equally excellent competitors, Feihe's method is to attack them and it is more suitable for Chinese babies behind international professional safety. Behind this is the opposite. Feihe has a very accurate positioning. Compared with all international brands, it is more suitable for Chinese babies and may be closer to Chinese mothers, and has taken the lead in seizing a unique position.

While creating a differentiated value, we seized the time window. CCTV and Focus Media launched two cannons, forming a market detonation, which solidified this perception. Deeply cultivate channels on the ground, in-depth distribution, 130,000 maternal and infant terminals, 80,000 shopping guides, and 800,000 venues a year. They are at the bottom. All the success is the benefit of real kung fu continuously accumulating time.

21. Cashmere coats and women's clothing are all imitating luxury goods, and the product homogeneity is very serious. One style has been sold for several years. How can it be differentiated?

When it comes to cashmere coats, you will think of Ordos. It already has a leading brand. How to differentiate at this time. For example, your cashmere comes from a little goat or a little lamb. If you talk about the styles, they vary from person to person and are not easy to succeed. So you can talk about the raw materials used in cashmere. One is the difference in raw materials, the other is the difference in categories, or you use a unique cashmere in a certain area, which has better warmth. You can also be more high-end, more expensive than Ordos, and you can also make it popular.

22. Can a brand take into account both Internet celebrities and high-end?

The real brand is a public brand , and the Internet celebrity brand thinks it is easy to disappear. The word "Internet celebrity" is not a good word, it is a small group of online and can easily change. Internet celebrity brands find ways to become public brands, and a real brand is a social consensus. People are looking for goods. When you think of a category, you think of you. The sense of high-end is nothing more than that you provide high-end people. You can face a more niche person. You become a high-end brand and provide a unique service to a unique high-end group. Internet celebrities and high-end people are not contradictory.

23. How do you view the dilemma that Perfect Diary is facing now?

I think Perfect Diary encounters difficulties are similar to those of new consumption today. Perfect Diary has come through it. He has spent a lot of energy on R&D and supply chain. He used to grow very fast and relied on traffic dividends. I believe that Perfect Diary's management is also aware of this problem, so they are improving in product research and development, and have entered the R&D supply chain to make up lessons, consumer minds to make up lessons, offline channels to make up lessons. In time, I believe that the management will definitely lead Perfect Diary to a new round of process.

I think everyone should cheer up new consumption and hope Perfect Diary will do better, because every process is moving forward in a wave style. No company is directly rushing to the top. It may be because of a unique innovation, but it may fall down because of innovation, but it may bounce higher when it rises again.

24. The market for Chinese medicine foot soaking bags is currently solidified. Is there any direction to break through?

This industry is perfectly possible. The key is whether your consumers think it is reliable or not. Who is the endorsement of your product? Because there are many online, everyone will talk about it yourself, but there is no endorsement. For example, your product is jointly developed with the China University of Traditional Chinese Medicine. If your product has strong endorsement and unique functions, there are still many people in the Chinese market who believe in foot soaking very much. This is a symbol of Chinese culture. It is recommended that you think about it from this aspect.

25. In the current epidemic situation, everyone is anxious except for the problem of shipping.

Don’t be too anxious. We are already lucky enough. We will always experience many twists and turns in our lives. The challenges of everyone are not challenges, and the dividends of everyone are not dividends . Everyone is going through this process, which is not terrible.

The second is to believe in this era and this country. I think this is very important because you are lucky enough in this country and this era. China has been so much behind the world before, and now it is on the road to returning to the world. Your life can be combined with China's first return to the world. How lucky!

If a person has some twists and turns in such a large wave, you must maintain enough confidence, because if you were not born in China and in another country and region that has no growth at all and does not have a broad market, then your efforts will be useless. China still has a lot of room for growth by 2028 and 2030, and fluctuations are normal, but if it does not change, China is the strongest country in the world.

Even if the country is cheering for everyone, it will take some time. As long as everyone keeps cheering and working hard, the market will definitely get better. The epidemic is very sluggish in 2020, and the market will recover in a few months. So you still need to have enough confidence because there is no better era than the Chinese market.

Original text: Where to start with e-commerce - Traffic is not a business, it is the result of a brand winning the hearts of the people