From Taobao to Douyin, the reason why traditional e-commerce cannot do well in Douyin e-commerce has been found!

This year's epidemic is different from 2020. The epidemic in 2020 has little impact on e-commerce, but this year's e-commerce industry has been affected by the epidemic. Since the outbreak of the epidemic in various places, regional sales have been restricted, express delivery has been suspended, and related warehouses have been blocked. Especially in the more than two months of the epidemic in Shanghai, the economies of cities such as Hangzhou, Suzhou, Wuxi, Changzhou, and Nanjing have been affected and have fallen directly.

The Yangtze River Delta urban agglomeration is the ballast of China's economy, and the Yangtze River Delta region is the core area of ​​e-commerce, and many e-commerce companies are affected to varying degrees. Faced with the survival of enterprises, e-commerce people are generally anxious and confused, which is also to help e-commerce people get rid of confusion and find the right direction. Therefore, Lao Gao E-commerce decided to open a private board of directors to solve the real and difficult problems for e-commerce bosses in need.

This private board of directors discussed in-depth contents in strategy, brand and management. The specific content is as follows:

Lao Gao:

首先非常感谢大家百忙之中抽出时间来一起交流，也感谢红小厨的创始人周啟坤兄弟和卡贝的阿凡达兄弟，都是金冠俱乐部的老兄弟了。

Hongxiaochu is a new domestic pre-made dish brand with annual sales of 700 million yuan and has rich online and offline sales channels. It has e-commerce platforms such as Tmall Mall, JD.com, Vipshop, NetEase Koala, etc., social e-commerce such as Yunji and Xiaohongshu, offline channels such as Hema, SF Express, and Yonghui, totaling more than 100 new retail channels.

In 2021, Hongxiaochu's GMV exceeded hundreds of millions of yuan. This year, Hongxiaochu began to upgrade its brand, reconstruct the advanced talent management system, connect with financing, and accelerate the layout of pre-made dishes' supply chain. It is launching self-built factories and strategic investment in factories.

Kabe Technology Co., Ltd. has been established for 14 years and has been focusing on hardware design, production and sales. Its e-commerce team has more than 200 people. Its kitchen and bathroom home decoration products have annual sales of more than 300 million yuan, and it has a warehouse of 100,000 square meters, with an average daily order volume of 30,000 orders.

They use their own factories to effectively save product costs. It has also won the honors of the top ten brands in the kitchen and bathroom industry on e-commerce platforms such as JD.com, Taobao, and Tmall for many years, and has been rated as a benchmark brand in the home decoration hardware industry.

Both of them have been fighting for more than ten years in the e-commerce field. They are the first in their respective industries, doing very well and doing very long. The problems experienced by e-commerce entrepreneurs are similar, so they specially invited them to have an exchange with everyone.

The partners who come to communicate today are my many fans and old members of Laogao E-commerce Club . The Shanghai epidemic has impacted many e-commerce companies. So how can we do a good job in long-term operations under the epidemic, how can we go against the trend and capture new changes and new opportunities?

This is a question that everyone thinks about and cares about, and this is also the value of today's private board of directors. This exchange is mainly to create value for everyone and solve their problems. This is the most important original intention. Because the road to entrepreneurship is not smooth sailing, and even painful, the problems experienced by e-commerce people are similar, so everyone actively asks questions and communicates fully.

Mr. Chen:

I am an e-commerce company in Jinan, Shandong. I am working in the cosmetics category. I have only been in the cosmetics category for two years and am a new recruit in the cosmetics industry. We started with traditional e-commerce, with only two battlefields: Taobao and Pinduoduo. We are doing well at the moment, but now we are facing a bottleneck. We don’t know whether to develop the supply chain in the future, or to strengthen our e-commerce efforts . We hope to get guidance from three teachers?

Lao Gao:

Since I entered e-commerce in 2008 , there have been many companies I have experienced, seen and learned in recent years, and my views are relatively comprehensive. I suggest that cosmetics categories must be done by wood, fire, earth, gold, water and the five elements. Marketing is fire in gold, wood, water, fire and earth. Paying too much attention to marketing will easily ignore supply chain, customer service, products, talents, teams, etc.

Many cosmetic brands pay too much attention to marketing, and Perfect Diary and some cosmetics micro-business brands have made marketing too much. Cosmetics is an extremely large track that can be done for 100 years . Many cosmetics were found in tombs of the Qin Dynasty, tombs of the Han Dynasty, and tombs of the Warring States Period. There are cosmetics in places where people love beauty. This is an industry that will not decline, so it should be laid out for a long time.

Therefore, both gold, wood, water, fire and earth must be consolidated. Supply chain, talents, channels, products, services, and repurchase are the key factors for repurchase in the cosmetics industry. The repurchase rate of cosmetics should not be less than 50%, so these things must be done well. In addition to Taobao and Pinduoduo, other platforms suggest that you should do the best you can, and continue to amplify the marketing trend, because the coverage of cosmetics is very wide.

All mainstream platforms such as traditional e-commerce, Douyin Kuaishou Live, and Xiaohongshu should be involved, so as to do a good job in your brand planting. There is a member of Jinguan Club who can make Dewu, who can make 4-5 million yuan a day. Dewu is particularly suitable for cosmetics and clothing categories. The users of this platform are very young and have strong consumption power. The post-00s generation can't even blink their eyes when they buy things.

Of course, after more channels, you must have a focus. Maybe the focus is one or two channels, and other channels can be completed by cooperating with others. Now that the traffic is scattered, there is no need to worry about too many channels, channels are one direction. Because all businesses are traffic businesses, including e-commerce, it is recommended to layout multiple channels, including gold, wood, water, fire, earth, and strengthen your channels, supply chain, talents, customer service, and repurchase.

Since cosmetics can be made for many years, your layout must be big and long. Never make a two-year layout for such a good category. You will regret it very much in the future. All platforms must be available, and even after the domestic platforms are deployed, cross-border e-commerce can be deployed .

According to my own analysis, there will definitely be very powerful national trend brands of cosmetics in the future, because with the rise of Chinese traditional culture, the whole world is very willing to accept oriental culture, and China's national trend cosmetics will definitely have a huge market.

周啟坤：

Every time I listen to Lao Gao’s sharing, I feel passionate. I will add two points. Today’s living environment for enterprises is different from the past ten years. Everyone knows that traffic is decentralized. In fact, behind it is the country’s policies and governance. There are some new challenges in growth during the dividend period of urbanization and population.

There are two core words in "The Art of War": one is calculation and the other is change. It is considered to win first and then fight. Our Hong Xiaochu also encountered some problems this year. In the past, every channel would try to meet the trend. In the past, the channel was relatively monopoly, and a single channel or one or two channels were enough. I found that it was not possible this year.

So how do we solve the channel problem? I think we should not watch JD.com’s live broadcast live broadcast first, but we should know what we want and what we want to achieve at the stage, and then calculate and deduce how to all in the channel. Just looking at the channels, enterprises have different stages. One stage is product strength and the other is user operation. Once the product strength is solved, users must be operated. Do a good job in user operation. Whether it is ToB or ToC consumer product brands will be very strong.

Avatar:

You are a pure online brand. Now it is becoming more and more difficult to acquire customers, the cost is getting higher and higher, and the competition is becoming more and more fierce. The situation of your transformation is similar to our problem. Take ourselves as an example. Since 2012, we have been in the field of e-commerce. Looking back today, it is indeed a product of the times.

In the past, we were more engaged in product strength and price strength, and we used the direct train to obtain traffic on the platform to make conversions. We also feel that the traffic dividend is gone, the brand power is not enough, and the competition is very cruel. Although we can still have some size now, we always feel uneasy.

During this period, I am also thinking about where the new track and new opportunities are? I think content e-commerce is a very good increment. But one problem may be faced, that is, the genetics problem. The team has become accustomed to the Taoist system's method and suddenly needs to change the method and cannot adapt. I personally think this is a very important issue in genetic transformation. If the gene transformation cannot be transformed, it will be difficult to maintain two different thinking at the same time, and it may even be necessary to adjust the entire organizational structure.

I have also thought about a method recently to see if it will be helpful to you: various marketing promotions continue to build a stock market, and the new media team will find ways to try to explore the market for incremental content while making super-selected content products. First, it can ensure that the company can survive, and second, it can cater to trend development, which is what we are currently adjusting. I think as the boss of the company, you have to understand that genetic changes are difficult.

Lao Gao:

Thank you very much for your sharing. The Avatar brothers have a special identity. He is a lifelong honorary member of the Golden Crown Club . He enjoys a right and a lifelong honorary member. From the beginning, his son and grandson do not have to pay the membership fee, and three generations do not have to pay the membership fee. This is a very awesome honor.

Following the sharing of the two brothers, I will also add that the four words in "The Art of War" - "Sun Tzu's Art of War" are surprising. When you see that in ancient times, one or two regiments of troops would definitely be drawn out to guerrilla forces to burn the opponent's food and grass. For your original traditional e-commerce business, first of all, you cannot let it decline in your mentality. On the basis of consolidation or even amplification, you must prepare one or two reserve teams to make breakthroughs ahead, such as breaking through cross-border e-commerce , breaking through content e-commerce, etc. You must think strategically. I have also done this over the years.

Many people have moved towards a strategic misunderstanding, and have allocated half of the original team to a new field, and found that the original business has suddenly declined. Because the troops are drawn, it is easy for the original business to decline due to the pull of manpower, energy and financial resources. If the new ones cannot be done, then there is no way out.

So we must take the initiative to fight the battlefield of traditional e-commerce. I have seen so many people, and it is difficult for the original traditional e-commerce team to do a good job in new e-commerce, and the probability is too small. You need to build a small team with new genes to test. Once it is tried, it may be another 100 million to 300 million in the future.

Avatar:

I also have deep experience in this question. Why is traditional e-commerce so well done, and why can’t Douyin do it? After thinking seriously, I found that the most core problem was because there was a way out. In the past, traditional e-commerce was a grassroots person who started a business. At that time, because there was no way out of business, he would never lose. So I think the root cause of traditional e-commerce not being able to do new e-commerce well is the retreat path, and there is basically no way out . This is also my recent feeling, so I have no way out for this matter, so I have to carry the knife on it myself.

Mr. Chen:

Thank you for your sharing, I have benefited a lot. Today is a qualitative change for me. We are a traditional e-commerce company with a team of 100 people. It is relatively difficult to turn around. In the original thinking, the words of the three big brothers have changed my thinking and strategic pattern, which is very rewarding.

Lao Gao:

This is why everyone should come out to communicate and learn frequently, because a few words from people who have experienced it may help you avoid detours in the next few years. Everyone is the boss. After two or three years of detour, they lose their financial resources, energy and time. These are irreversible opportunity costs, so it is impossible to start over again.

So for the boss, your strategy must be correct and not wrong. The things we just discussed are actually strategy. What strategy is to do and how to do tactics. What we are discussing is more about direction. This is too critical and we must not be wrong!

This is why the Golden Crown Club communicates every week. In the 12 years since its establishment, no company has gone bankrupt because as long as the direction is right, the rest is to work hard. Everyone is working very hard, and the most feared thing is that the direction is wrong. As long as the direction is not wrong, there will not be too big problems in the business.