What aspects do you need to have from 0 to 100 million?

　　Important time must be reserved for the most important person. The five-year regular meeting of Laogao Crown Club, we are honored to invite a very young entrepreneur to bring you wonderful sharing. This sharing guest has very rich theoretical and practical experience. He is a master's degree from Southwest University in Kun, Australia. His brand, Kossi, originated in Nordic, is a simple wardrobe focusing on making authentic, ever-changing resin magic films! After graduation in 2010, he returned to China and entered the e-commerce field in 2011. He created a brand new brand in just two years and turned it from 100 million. What marketing concepts have he used in the past two years and what kind of Taobao store operation methods have made such a legend? The next time is left to Mr. Lu Jun, the founder of the Kosi flagship store brand:

　　The following is the full text of the guest's speech, compiled and published by Lao Gao's e-commerce circle!

　　Lu Jun: Good afternoon everyone. I am very happy that the club has given me the opportunity to stand here to share with you. I have been joining the Crown Club for almost a year. During this year, I have met many brothers and sisters and helped me a lot. Every time I come to listen to the guests’ sharing and communication, it has been very helpful to me. Our sales doubled after I joined the club, and I would like to thank the club for their help. Today I can stand here to share with you. I just want to tell you some useful things. In terms of my experience, I am different from many of my friends here. I graduated from college in 10 years and started to establish the brand Kossi in 2011. When I started doing e-commerce, I found that many things I learned when I was studying were just two words - nonsense. I read a thick book on brand strategy and then I found that if I use this thing like this, it would definitely not work, because it is all about big companies, and I have to work for others, including Internet marketing, which are only suitable for big companies. I want to tell you something useful, so if your annual market is between 1 million and 10 million, it may be useful, and it is OK to listen to it for more than 10 million. What I have summarized today is some concepts that are not too big in the market and are in the process of doing it. We mainly talk about three things: marketing, branding, my failure case. I paid about 1 million in this case. Success cannot be copied, but the experience of failure can be learned from.

　　Talk about marketing first

　　Everything I talked about today is not a theory but my understanding of these. It is purely my personal understanding and may not be correct. You can communicate with me. Marketing thinking, let me talk about our Taobao’s point of view: traffic is king. We can do a lot of things with traffic. This view is not wrong and cannot be called a misunderstanding. But in fact, we can think at many levels of this view. Have you ever thought about how much traffic your traffic should be? I had this view in my first year of Taobao because there weren’t many things at that time, it was just an event. At that time, we were the most cost-effective, including gold coins. But I found a problem: when there are activities, they are very good and tired, and when there are no activities, they are very idle. Can our team have a good response to the volatility of traffic?

　　Today, everyone wants to make the "tofu cubes" position. "tofu cubes" are the most important. There are three products under this keyword. The first product is from ours, and the second product is from the other two. I can say that the conversion rates of the first and second positions are 10%. I saw a case two days ago. I think we are also doing this, making fine sofas. That day he went to Juhuasuan. His products for Juhuasuan were the same as the most popular products in his store, but he made another connection to Juhuasuan. His details page is very good. He made two sets of different details pages for the search traffic and the traffic of Juhuasuan event. The details page for the search emphasizes the material, quality, and cost-effectiveness of the sofa, and emphasizes the tone of the brand for the event, making the visuals very beautiful to grasp the shopping desire of the event. Therefore, different strategies can be found for different traffic. Second, when I communicate with my friends, I often hear them say that quality is very important. That's right, but today someone told me what your family's advantages are. I said that the quality of our family is definitely better than others, and some people will ask me that their family's things are used very poorly but they sell very well. In fact, there is a misunderstanding here: the quality matter is not decided by the merchant, the competitor, the consumers. Nowadays, online shopping people are not so sensitive to quality. When consumers buy things, they will establish a line in their minds based on the details page and the reviews of users they have bought. As long as the things they receive are not lower than this line, they will not feel that your things are of poor quality. I am not saying this to let you go back and reduce your quality, but just remember that consumers are not that sensitive to quality. This is my feeling. Let’s talk about these two points to lead to my thoughts on marketing. Why do we need to better understand marketing? In order to make Taobao better. I think marketing is to meet users' needs better than competitors and thus make profits. Here are a few keywords!

　　The first is demand. When we do operations, products, services, and Taobao, we must take into account the needs of users and look at the needs of users from the perspective of users, and then we need to do a little better than our competitors. If the user thinks that your quality is better than your competitors, then your quality is better. If the user does not think that your quality is better than your competitors, even if your cost is higher than that of him, it is not better.

　　Second, profit. In the end, doing business is to make a profit. It is better to satisfy users than competitors and make profits. This is a shopping ring, and users follow this ring, and my understanding of marketing is based on this ring. This ring is involved in each node. Can we do better than competitors on some nodes? We call this core competitiveness. If you cannot copy it, it is core competitiveness.

　　Third, search is traffic, how to see your product, but if you have 100 hours, please allocate a little to several other points. The allocation of these points can bring you great benefits or some core competitiveness. This is my understanding of marketing. Demand can be stimulated by the user themselves or we can inspire. We can think about how the user needs of my product are stimulated, whether they are automatically stimulated or need to be guided to generate demand. Search involves a lot. When users have needs, they can search through many channels to visit your store. Have you made plans at these points and done better than competitors? These are all the needs of better serving users.

　　Fourth, judgment and decision-making. There is a data called user churn ratio in the Taobao backend. This is a core indicator for our team to optimize conversion rate. Why do we do this analysis of which customer ends up buying? This is the user's needs. All page layout, brand layout, and advertising traffic must be taken into account user needs.

　　Fifth, purchase and experience. Many people will say that experiencing products is very important, but a very important factor in the purchase process is customer service. In fact, if customer service can become a core competitiveness, it is difficult to replicate. If your customer service team has the service awareness and service concept of Haidilao service staff, then do you think about whether your competitiveness can be replicated by your opponent? Every point can establish core competitiveness because the user needs are there. This is my understanding of marketing. In summary, it is to meet user needs better than competitors, and the ultimate goal is to make a profit.

　　Next, let’s talk about brand thinking

　　I personally think that the brand is just a name, and behind it is a differentiated positioning. Why build a brand? There is a meaning behind the name, which is my understanding of the brand. Many of the people here today are small sellers and medium-sized buyers. After all, there are not many big sellers. Have you given them a name that the user remembers and gives this name a different meaning, and successfully implanted the name into the user's mind. The online shopping crowd is so large, what kind of user group should we capture and find ways to design the user group to remember what we do. Brand positioning, we often say on Taobao that we sell goods, so don’t dream of brand. My point of view is that the effectiveness of the product is very important in Taobao, but this may conflict with the brand. The reason why the effectiveness of the product is important is that it involves shopping scenarios. E-commerce shopping scenarios are relatively large, so users will be more inclined to be cost-effective. Our thinking of building a brand is that if everyone thinks that this thing doesn’t need to be a brand and you do it successfully, then this is your core competitiveness. Why build a brand? Let users remember us and give us some room for bargaining, and users will repurchase them according to the products you sell and positioning. If you are a product with a high repurchase rate, a good brand can reflect your segmentation and your professionalism, so that users can repurchase. If you are a brand with a low repurchase rate! Just make strategic losses!

　　About strategic losses

　　If you lose for a while, then make money. This is called a strategic loss. What to do to deal with strategic losses? Making yourself appear more professional or have a certain brand layout may help, but not necessarily. Brands can support our marketing 2vy. I personally think that many competitions in the future are actually competitions in marketing 2vy, which is how many millions of sales you can generate if you invest 1 million. In 2012, our brand’s conversion rate was more than 3%, and our customer order was more than 200. By 2013, we have risen to 5.2%, and by 2014, we have reached more than 6%. This increase in conversion rate cannot be attributed to what we do on the brand

　　Finally, let's talk about a case worth one million

　　I'm almost thanking for this money in this case. I started making Kosai in 2011. After more than a year of development, we achieved it by the end of 2012, our monthly sales were about 3 million, not too big or small, which is the safest and most ok to do. My confidence was a little overinflated after a year. My uncle came to me and said let’s make women’s shoes. I said it’s okay. I am a person with a sense of crisis. A product is cyclical. Doing it well today does not mean that I can still live in this market in three to five years, so I want to expand. I think my team and my judgment can be supported, so we started making women's shoes. Our initial positioning was to make comfortable women's shoes. We had all the marketing layouts well and we were lucky. In March, our single shoe exploded the market. When I analyzed the data, I found a problem: the repurchase rate of old users is low. I analyze the reasons, it is a problem of positioning, and we need to rethink positioning. The comfortable women's shoes are too wide to be positioned and need to be thinner. I wanted to locate the wedge, but when developing the product, I found that there were too few choices. Then I developed it myself. I started to pick up the models in August and found that it was not very good, and there was no problem with the art and vision.

　　This story gives me some inspiration. First, the positioning of a brand requires a strong supply chain to support it and product support. Second, it is a well-known mistake for me to build a woman’s brand from a man’s perspective, and I cannot understand our user needs well. Third, you should be humble at any time, not overconfidence, and feel that you can do anything. Thank you everyone, that’s all for my sharing!

　　On-site Q&A

　　Member 1: Hello, Mr. Lu, I would like to ask questions about strategic losses. You mentioned that a store loses ten yuan per order and fights you to the death, right? It must be the same position as you, but its brand must not be as strong as yours, otherwise he will not take such measures to increase sales. What do you think is that the store or brand wants to achieve some results, such as what should he do if he wants to surpass you?

　　Lu Jun: First of all, I want to see how much money I have in my pocket. Second, do my opponent have any weaknesses and can be attacked by me? If so, I will prepare to hit him. If you want to play, you may have to do marketing and plan. This involves different industries. If a large part of the user needs in my industry come from search. We are demand-based products. I will look at my current traffic layout. Which point is relatively weak, we will open it from this point.

　　Member 2: I would like to ask a well-known agent how to build a brand.

　　Lu Jun: If this brand is well-known and your traffic often comes from this brand term, then what you have to do is do better than the same agent, and also fall into the shopping ring. You can meet user needs in some points than what you do with the same distributor. When doing business, we are nothing more than profit and competition. You have to see clearly where your competition lies.

　　Member 3: The data you just showed a brand conversion rate. I have never been exposed to this before. Can you tell me how it counts it?

　　Lu Jun: This is the data in the backend of the data Rubik's Cube. What he means is how many people saw how many people bought your products in the end.

　　Member 3: In fact, it can be understood as a conversion rate of your store?

　　Lu Jun: Yes.

　　Member 4: How long did you take the case worth one million? How long did you spend a monthly sales of more than ten thousand?

　　Lu Jun: The store will be opened in December, and the following year will exceed one million.

　　Member 4: What method is used?

　　Lu Jun: The method we used at that time may not be suitable now. We first made single products and then made the entire store. First, focus on one product to make user needs, marketing plans, and traffic diversion plans. I started a campaign, and later gradually expanded the traffic and monitored the conversion rate.

　　Member 5: I am a well-known agency brand, how to transform and develop my own brand.

　　Lu Jun: What are your issues now? Is it transfer your user base to the brand you have newly developed? First of all, is your brand repurchase rate high?

　　Member 5: Yes, not very high. I want customers to buy our brand by knowing this well-known brand.

　　Lu Jun: First of all, trust. If you want to transfer old users to a new brand, you need to transfer trust first. A brand is actually a name. You can first make two brands a conceptual equal sign and deposit users here. Second, if you want to use a new brand to play the market, it involves how competitors in the market will play.

　　Member 6: The first one is what is your repurchase rate?

　　Lu Jun: It’s about 15%.

　　Member 6: Where is your industry?

　　Lu Jun: It is about 6%-7%.

　　Member 6: What is the second repurchase cycle?

　　Lu Jun: Within 30 days.

　　Member 6: The last question is what I care about the most. I feel that your thing is not the kind that can repurchase at high frequency. How do you make users repurchase?

　　Lu Jun: First of all, we are simple furniture. In addition to simple furniture, our products include simple bookcases and simple shoe cabinets. If the user buys a wardrobe and thinks it is not bad today, he will come and buy a shoe cabinet very quickly. Second, our products have the characteristics of free assembly and can be assembled according to user needs. We have several jobs to get user repurchase. First, we have a CIM system that will do a series of caring work when users purchase. Second, our package has a box of brochures, hot-selling products and QR codes!

　　The sharing ends. Every article and every point is shared by Mr. Lu’s practical experience. For useful people, it is indeed worth more than 10,000 yuan. For some people who just read the real information and just read it, this content is nothing. I just want to remind everyone that if you just read it but have no insights, I advise everyone not to waste time reading it. If you find it useful, forward it to others!

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