Three processes a new consumer brand must go through:
First, the short-term success of explosive product growth Most of the new brands you can see, at the beginning of entering the market, used a single product, a single channel, and a single content promotion method as a starting point to seize the bonus of the category, and then completed the process from nothing to something. The active methods in this process are visible products, channels, and content, and the invisible passive methods are the perception of demand and the delivery of media bonuses. It is too early to say that it is a victory for the brand at this stage. It is more accurate to say that it is a victory for the product. Open questions at the beginning of market entry: physical sensation is greater than judgment, and new brands need to pay attention to two positive and negative points:
Secondly, the long-term potential of the brand will win The promotion method of single product, single channel and single content cannot bridge the gap. The branding method can be used to move from hot products to hot models, product series, series branding, and then achieve brand sedimentation, thus crossing the gap from early adopters to early majority. The value of a new brand does not lie in the brand itself, but in the new users brought about by the new demands and consumption behind it. 1. Yuanqi ForestBrands do not need to work hard to guide consumers' objective needs, because needs exist objectively.
In the field of marketing psychology, there is a concept that users can only remember seven brands in a category. In the current era of media information explosion, products are not competing products, but the competition for attention itself is. Attention first comes from the demand for the category, followed by the presentation of media + traffic + content, and then the choice of brand. That is, demand-search-interest-comparison-selection-purchase-evaluation-sharing-repurchase. In an industry where others are doing well, you have the opportunity to do better. In an industry where others are not doing well, you have no reason to do well. The situation is bigger than the person. The core of business decision-making is all in after the choice, not the choice after all in. Don't forget the basic probability of anything: The probability of an event happening is equal to = basic probability × the probability of the event itself Category is the foundation and ceiling of business. In a declining industry, you cannot escape from it. The basic foundation of the category largely determines the probability of success or failure.
Discover first, then invent. Objectively speaking, anything you can think of has already been thought of or even done by someone in this world. This world has never been and will never be able to achieve the so-called "flat state". The successful businessmen compete on who can first take advantage of the information gap to seek benefits. In Yuanqi Forest’s products, you can almost find the shadow of its products in another business society. Whether it is burning tea, sugar-free sparkling water, milk tea, or electrolyte water, the success that has been verified in a market after daring to be the best in the world is often more likely to succeed, or has a greater probability of success. Sugar-free tea has a high penetration rate among Japanese consumers. Yuanqi Forest Beihai Ranch Yogurt corresponds to the American Greek yogurt brand CHOBANI. CHOBANI's sales exceeded 1 billion US dollars in 5 years. Alien Energy Drinks is benchmarked against Monster, which challenged Red Bull's absolute leader status and became the most dazzling company in the American food and beverage industry since the 21st century. 1. Latecomers but early adopters: insights into local consumer demand
In an industry with many strong competitors, for new entrants, it is important to focus on a relatively small niche, meet the needs of the niche, actively differentiate the large category, establish an expert or leader identity, and become the first choice in the sub-category. At this stage, the new demands brought by the new category are often more attractive than the brand, that is, the category value is the biggest differentiation of the new brand, and it is also the most efficient expression of the new brand's communication with consumers.
2. Eliminate the sharpness of products and focus on zero sugarMy favorite is the Kamagra flavored sparkling water, which has 0 sugar and is guilt-free to drink - this is how netizens commented on Yuanqi Forest. In 2017, Yuanqi Forest achieved success with its sugar-free and sparkling water, using burning tea as a breakthrough. The demand for good taste, non-fat and healthy food is driving the growth of new categories. Products are the foundation of marketing. If the product is not good (whether the product really meets the demand), the marketing will be short-lived no matter how good it is. Yuanqi Forest has led Chinese beverages into the 6-yuan era. Compared with brands such as Coca-Cola, Red Bull, and Uni-President, it is more sophisticated in terms of raw materials. For example, milk tea uses milk powder instead of cheaper non-dairy creamer (commonly known as creamer). Tang Binsen said: This is the only beverage in the Chinese market where the "sugar water" in the bottle is more expensive than the bottle.
What kind of packaging is more likely to attract attention? The most eye-catching packaging factor in consumers' minds is: the packaging product name is novel (63%). Among them, 89% of people pay attention to the production date/shelf life, 76% pay attention to health/nutrition related claims, and 73% pay attention to the nutritional ingredient list. Let's take a look at Yuanqi Forest: "0 sugar, 0 calories, low fat, 0 trans fatty acids" The reason is self-evident. 3. Xiaohongshu + influencersThree tricks of traditional brands:
Yansheng Forest, on the contrary, avoided the fierce battlefield of communication advertising in the media, and chose online media + internet celebrities such as Xiaohongshu. Through the investment in new media, Xiaohongshu delivered a satisfactory market answer in the early stage of going out of the circle: in 2019, online transaction volume accounted for 40% of total sales. On Double Eleven 2019, Yuanqi Forest ranked second in sales on the entire network, beating Coca-Cola and Pepsi. There are 50,000 articles promoting Yuanqi Forest on Xiaohongshu, and the number of fans of its flagship store has reached over 3.3 million; the number of fans of Yuanqi Forest’s flagship store on Taobao’s official website has reached 3.35 million, surpassing Nongfu Spring’s 1.05 million, Master Kong Beverage Flagship Store’s 471,000 and Coca-Cola’s 722,000.
4. Sinking into convenience stores to reap the potentialYuanqi Forest has seized the "opportunity" of channel transformation and effectively connected with consumers through the two "emerging channels" of chain convenience stores and e-commerce platforms. "
2. Perfect DiaryMarket introduction stage: large categories, small market, high appearance
1. Product promotion + brand: all in hot productsFrom the beginning of 2017, Perfect Diary did not adopt an omni-channel and multi-media approach to lay out content, but instead put all its resources into Xiaohongshu. Pyramid-style layout: including top and mid-level influencers, as well as passers-by and amateurs for large-scale placement (top influencers for product endorsement, mid-level influencers for large-scale promotion, and passers-by and amateurs for customer testimony). The lower the frequency of placement, the more budget there is. Taking Double 11 and 618 as an opportunity, all artillery firepower is concentrated on attacking one city gate. At most, I received 10 advertisements in a month, 4 of which were from Perfect Diary. "Working with Perfect Diary is quick and hassle-free. They pay me directly without saying anything, which is very worry-free." - said a blogger on Xiaohongshu
In 2018 and 2019, Perfect Diary's marketing and promotion expenses accounted for 48.7% and 41.3% of its net income respectively. Among them, more than 15,000 beauty KOLs on platforms such as Xiaohongshu, Douyin, and Bilibili have become one of the largest expenditures among Perfect Diary's billions of marketing expenses. Since 2018, brands such as MAC, Lancome, and YSL have successively launched Douyin and Xiaohongshu, and YSL has even started live streaming. According to data from CICC Research Institute, after launching new traffic sources such as Xiaohongshu, Douyin, and live streaming and starting to try to cooperate with grassroots KOLs, the sales growth of Shiseido, L'Oreal, and Estee Lauder in 2020 exceeded 60%, while Perfect Diary's sales growth in the same period was only 22%. ——The wild period of a new brand mostly benefits from traffic dividends. Today, more than 70% of Xiaohongshu users are born after 1990, and more than 50% of users are born after 1995. Throughout 2020, they posted nearly 300 million notes on Xiaohongshu and generated 100 million searches per day. In 2021, the cost of seeding and recommending through KOLs and KOCs on Xiaohongshu has also risen sharply, and beauty category recommendations have increased by 13-18% compared to 2020. 2. Brand-effect operation stage: public domain + private domain, brand-effect integrationFirst do the public domain and then the private domain. If you don’t invest in the public domain, there will be no private domain, and the public domain will have zero product effect. Through large-scale investment and wide-range planting of KOL/C on Xiaohongshu, traffic-type purchasing users are brought in. After the transaction, traffic is accumulated through traffic positions (public accounts: Perfect Diary, Perfect Diary Full Alliance, Perfect Diary Experience Store, mini programs: Official Flagship Store, Perfect Diary Heart Selection, Perfect Diary Home), thus forming a 48 million traffic pool belonging to Perfect Diary. Through discounts, buy-one-get-one-free, experience packs, etc., traffic fans are converted, repurchased, and shared. At the same time, Perfect Diary has also established hundreds of personal accounts (Xiao Wanzi). These WeChat customer accounts use the Perfect Diary brand image as IP and are operated by real people. While completing the service, users are stratified, penetrated, repurchased, and converted. 3. Brand promotion stage: advertising + public relations, cross-border promotionFor consumer goods, brand is a particularly important thing. Whether your brand is formed depends on whether your brand is high-end or low-end in the perception of consumers. Consumers' needs and price acceptance are completely different. The significance of a hot product is to be "seen". The value of the brand lies in the mental traffic pool, otherwise "buying traffic and selling volume" will eventually become a zero-sum game. According to the changes in the word cloud of Perfect Diary's official WeChat public account over the years, when Perfect Diary was first established in 2018, it was in the stage of creating explosive products, highlighting cost-effectiveness, and gradually transitioning to product words. In 2021, Perfect Diary's "exquisite", "fashionable", "high-end", "stunning", "innovative" and other emotional product adjectives appeared in the word cloud, while the word "cost-effectiveness" was still there, but the proportion began to shrink. The proportion of Perfect Diary’s head, shoulders, waist, and tail KOLs:
Brand start-up stage: mass coverage of mid- and low-end KOLs to promote brand penetration and popularity Brand growth stage: Top KOLs help to improve brand favorability and elevate brand status They have collaborated with the Discovery Channel to launch the Explorer 12-color eyeshadow palette, and with Li Jiaqi's dog Never to launch a cute pet palette, or they have chosen popular IPs with high audience recognition, such as Oreo, to achieve cross-border collaborations. In the first half of 2020, Perfect Diary's brand voice was 15.61% among men, and 84.39% among women. In the first half of 2021, 20% of Perfect Diary’s brand voice was from men, while 80% was from women. Perfect Diary is working hard to break through the circle. It is important to remind you that brand building is a protracted war - advance layout, accumulation of strength, otherwise there will be a backlash effect of imbalance between brand and effect. The cost of traffic is always the lowest price at the moment. Especially for new consumer brands, brand is the bottleneck of sales growth. Sales of 300 million for new brands is a hurdle, breaking through 500 million is the key, and it is too late to go back and plan and build the brand when it reaches 1 billion. 3. Inside and outside of NEIWAIEveryone who makes products knows or should know that brand is the foundation of business. Otherwise, it will become a "white label" and a slave to traffic. The way of buying traffic and selling goods will eventually make profits trapped in the cost of acquiring customers - this is ultimately a zero-sum game business. When the category bonus gradually disappears and the brand cannot be established, the glory will become a story of the past. The method of spending money to buy traffic in exchange for sales is acceptable in the early stages of a brand. However, if the brand still relies on low-level operations of simply exchanging traffic for sales in the middle and late stages, the brand will have to work for KOLs and Internet celebrities. In essence, KOLs and Internet celebrities are channels, not the brands themselves. Selling goods and building brands are two different things. If users trust KOLs, not brands. This means that the company's brand has not really established mind and brand awareness among the target population. Once the consumer's mind is saturated, it will be too difficult for you to break in again - the key to not missing an opportunity lies in the window period of the category. Once consumers are overloaded with a certain type of information, it is difficult for them to remember similar information. The underlying logic of new categories is not only the blank in the market, but also the blank in consumer cognition. Generally speaking: there are no more than three all-round players in an industry, and the vacant market gives new entrants new opportunities. Therefore, after the mind is saturated, the only way is to differentiate and open up new cognition. In 2015, the wireless ring market exploded in China. How to seize the natural dividends brought by this category? On the one hand, online hot products are used to grab traffic, enhance exposure, and create the first. The essence of hot products is to solve the problem of consumers' first purchase and voice. In fact, the new domestic underwear F4 brands, Ubras, Bananain, Naitangpai, and Neiwai, have all created hot products belonging to their own brands at different stages. For example, Ubras' Tmall flagship store sold a total of 12.6 million items, of which the most popular single product sold about 4.39 million pieces, accounting for 34.9% of the total sales. Neiwai launched the cloud size-free underwear with a single product price of 169 yuan as a super single product to focus on online. Secondly, establish offline channels. Offline stores are not only a channel, but also a scene touchpoint for brand strength and category extension. The earlier this touchpoint is established and the greater the potential of the business district selected by the touchpoint, the more conducive it is to establish the brand in the minds of consumers. For example: the beauty brand Glossier resolutely chooses to open an offline store because it is the most suitable store for new brands to establish "direct dialogue" with customers, and even a brand dojo. Through the touchpoint layout of offline stores, on the one hand, it can establish a deeper and broader connection with customers at a lower cost, and on the other hand, it paves the way for category extension. In fact, 90% of sales of major global and domestic intimate apparel brands come from offline channels. In 2017, Neiwai began to invest heavily in expanding offline channels. It is said that the first shopping mall Liu Xiaolu chose was the Shanghai Jing'an Kerry Center, "Neiwai's first store must be opened in the core area of Shanghai", and Neiwai waited for a year for this location. In the three years from 2017 to 2020, Neiwai has 110 retail experience stores in 29 first- and second-tier cities across the country, and has strategic cooperation with first-tier owners such as Kerry, Sun Hung Kai, Swire, Hang Lung, and China Resources. On the one hand, the location of offline stores in high-potential business districts can reflect the brand image and effectively form brand endorsement. On the other hand, as traffic becomes more and more expensive, offline channels can bring brands greater category expansion space and more development opportunities. With the help of the layout of offline channels, Neiwai has gradually expanded from underwear to home casual wear, dance sports and home products.
4. Xiaoxian StewIn the past, traditional brands promoted brands through CCTV + celebrities. Now, new consumer brands promote brands through pictures/short videos + KOL. The basic logic of a business: exposure X clicks X purchases X average order value. The more you plant and the more concentrated the planting, the greater the base of exposure. Under the condition that other conditions remain unchanged, it will bring the possibility of growth to the business. Corresponding relationship:
The focus of brand promotion is different at different stages, from the brand's original audience to competitors, from categories to cross-categories, and then to scenarios. Through promotion at different stages, on the one hand, the promotion area is increased and the base of the exposed population is increased; on the other hand, the promotion density is deepened to occupy the user's mind. There are two types of grass planting: area and density
1. From 0 to 10 million, product promotion should focus on product features and selling pointsAt this stage, you can understand that products should be placed before brands. When a brand is unknown, consumers evaluate it based on its products. When a brand is well-known, consumers evaluate products based on its brand, because the product's functions and the specific feelings it brings are the basis of word-of-mouth. Especially for new consumer brands, the first step to opening the door to consumer awareness is to rely on the golden key of product strength; even if old brands launch new products, the product must be the main focus. Swisse launched blood orange essence. In the first phase of Xiaohongshu, the focus was on the benefits of blood orange and why blood orange can supplement collagen, helping consumers understand the benefits of blood orange. The product was even named after its function: Blood Orange Collagen Liquid (rather than Blood Orange Essence). The product’s nickname “Collagen Liquid” lowers the consumer’s cognitive threshold, and what you see is what you get; by promoting its efficacy and principles, it helps consumers understand the efficacy of blood oranges. Similarly, when Xiaoxiandun was from 0 to 1, it focused on polishing its products and highlighting the functions of ready-to-eat fresh bird's nest. In the 18 years when the content was first released, it mainly focused on weight loss, skin care, and emphasized product functions, with the focus on weight loss and skin care accounting for 28% and 37% respectively. In this stage, consumers recognize the brand through products, and complete their initial understanding of the brand through product functions, services, and usage experience. Therefore, in this stage (new consumer brand 0 to 1), the seeding should focus on the function, use and experience of the product. Let consumers know clearly what your product is, why they choose you, and why they trust you; clarify the category, clarify the differentiation, and establish credibility.
For example, the mature brand Feihe milk powder has long been conveying a core concept that it is more suitable for the physique of Chinese babies. Of course, this statement does not stand up to thought. Does it mean that foreign milk powder is not suitable for the physique of Chinese babies? Obviously, this is not the case. However, cognition is greater than facts, and signals cannot be interrupted. Repetition can establish cognition and then influence cognition. 2. From 10 million to 100 million, amplify keywords and penetrate scenariosAfter completing the product function-based promotion from 0 to 1, how to achieve the amplification from 1 to 10. The key lies in completing the crowd portrait through the data population in the first stage. Through the crowd portrait, circle the keywords, and promote the crowd around the keywords. Based on the A4-A5 crowd as the basic data, expand the A2-A3 crowd through the crowd portrait, and the method is to reset the core keywords. Taking Xiaoxiandun as an example, in 2018, it mainly focused on weight loss and skin care; in 2019, it strengthened the extension of the concept of pregnancy care and anti-aging, and at the same time increased the percentage of skin care recommendations from 28% to 45%. This means that the combination of skin care and function is effective. Focusing on the A2-A3 population, complete the user population portrait, and based on the A2-A3 user population portrait, iterate keywords and penetrate the population. For example: After April 2019, the scenarios for Xiaoxiandun's advertising began to change. The proportion of "weight loss" scenarios decreased to 11%, and the proportion of "skin care" scenarios was the highest, accounting for more than 45% of the total ratio. The proportion of "pregnancy care" and "freezing age" scenarios increased significantly, and the proportion of "health preservation" scenarios was still at the bottom. We used super-head KOLs to increase awareness, and used "weight loss", "skin care", "anti-aging", "health preservation", and "pregnancy care" as keywords for penetration. We gradually developed the core keywords: skin care as the main focus, health preservation as the foundation, pregnancy care, and anti-aging as the grass-planting strategy to penetrate the population. Focusing on the product function, Xiaoxiandun has put a total of 422 notes on Xiaohongshu since 2018, focusing on weight loss and skin care in 2018, and infiltrating keywords into pregnancy care and anti-aging in 2019. In the past year alone, Qiangua Data found 2,202 notes on Xiaoxiandun, including 231 business notes.
3. From 100 million to 1 billion, cross-border combination, large-scale encirclement10 million to 100 million is 10 times, 100 million to 1 billion is also 10 times. The same 10 times, the brand's actions are different in magnitude. If you still stay in the grass planting method of the previous stage at this stage, no matter how much grass you plant, you will not be able to grow into a big tree. In the face of the increase in scale, it is time to establish the determination to fight a big battle. In the process of enterprise development, there will always be a difficult decision to make. Once this decision is made, the enterprise will bid farewell to mediocrity. Most companies do not lack this opportunity, but lack the courage, so they miss the key window period in the minds of consumers . Once this window period is missed, it will be useless to use ten or a hundred times the force to capture it. Talking about methods at this stage is equivalent to not understanding business. The core of this stage is not the technique, but the mind and the heart. Many companies that have passed the first two stages died at this stage and have since become mediocre companies and mediocre brands. Of course, we still have to say that from the perspective of the user pool, the core of increasing from 100 million to 1 billion is to use brand pull to increase the user population from A2-3 to O-A1, and to increase the brand's basic traffic. From brand population, to competitor population, to category population, to cross-category population, and scenario population. At this stage, the core logic of the brand lies in the logic of the market. The brand is a tool for the enterprise and a way to occupy the minds of consumers. The core of branding is to make the brand = category and let the brand represent characteristics. The form of grass planting should be consistent with the purpose of the brand. We plant grass, but it must grow into a big tree. Only brands that leave a mark in the minds of consumers can transcend the backlash of traffic. Otherwise, they will continue to be blocked by traffic, the cost of media placement will be pushed up year by year, and the price of KOL will naturally rise.
Saturation attack by targeted marketing. Whether online or offline, the ultimate competition is to occupy the minds of consumers. To occupy the word, let the brand replace the category and become the synonym of the new category. At this time, enter the coordinated operation of all media and channels. Online hits, offline harvesting, Internet celebrities bring goods, KOL follow-up, and targeted regional detonation. When consumers are repeatedly exposed to "grass-planting content, live streaming, targeted advertising, and KOL short videos" during distribution and penetration, and identify with the "warmth" conveyed by the brand, the brand will gain a place in the minds of consumers, achieving a word occupation and eventually becoming synonymous with a new category/new track. This is done through cross-border marketing, brand co-branding, seizing new traffic dividends, creating momentum, public relations, and advertising. Multi-dimensional and multi-scenario, to achieve multi-touch to the crowd and the general crowd.
Author: Houshan Keju; Source public account: New Consumer Brand Research Society (ID: PPD6977) |
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