What Kind Of Value Can Chinese Electric Providers Bring To Branding?

For international leaders, China

It is becoming more and more important in its strategic position.

And want to eat the Chinese e-commerce cake, B2C e-commerce platform Tmall became the international big brands into China's inseparable online market.

Light luxury brand

Li Dakang, President of the Asia Pacific region, once said, "any luxury brand wants the sales of Chinese electricity providers to account for 10% to 20% of the total, but they can't get around the Tmall of Ali."

The luxury brands represented by many brands of Burberry and LVHM group are represented by UNIQLO and A&F.

The brand, the tide card represented by Y3, and the retail department store brands such as Messi have opened their flagship store in Tmall.

Alibaba group CMO Dong Benhong once described Tmall's appeal to the brand. "There are only two brands in the world, one is on Tmall, the other is on Tmall's road."

According to official data released by Tmall, it now has more than 12 thousand international brands, 180 thousand famous and 89 thousand flagship stores.

As of March 2017, nearly 80% of Forbes's most valuable consumer brands have entered Tmall.

And the primary attraction of Tmall to big names is real growth.

Interestingly, more and more brands began to separate Tmall's performance in the earnings report. L'OCCITANE, Nike, Haier, Midea, GREE and other brands mentioned Tmall in the earnings report.

In its 2017 fiscal year earnings report, L'OCCITANE wrote, "sales in mainland China increased by 6% to 124 million euros, mainly due to the group's sales growth in Tmall flagship stores in the region."

It's not just moving goods from line to line.

For many big names joining Tmall, many people in the industry described it as a story of "laying down their body and embracing the Internet".

At first, most of the big players looked at the huge volume of Tmall's users.

Now, Tmall has become the main position of many brands of Internet commercialization, Estee Lauder is one of them. Its nearly five years of Tmall's "mental journey" can be regarded as a microcosm of big brand's digital pformation in China.

According to the world clothing shoes and hats net, in 2013, Estee Lauder's first brand Clinique entered Tmall. Until now, other brands including La Mer, Prescriptives, Origins, BobbiBrown, Aramis and MAC have also landed Tmall.

Before 2015, Estee Lauder's main job was to move products from offline to online.

At that time, the way to connect online and offline was to set up a site to publicize products on line, and then to send them through Tmall.

The main role that the line played at that time included selling goods, and doing simple advertising.

"In the era of PC, that era is the PC era, the mobile Internet is not as strong as it is today. At that time, the implementation is also very heavy. We basically look at the Tmall PC page to ask if this place can give me a location. Can that place give me a location?" said Gary Chu, general manager of Estee Lauder group electric business at the recent Tmall new business strength ceremony.

Online, there has been a large unauthorized market, including some goods distribution and overseas purchasing, and this part of the market tends to purchase star products, star products often correspond to older people, and have a big coincidence with offline users.

For brands, if they enter too much unauthorized market after online, on the one hand, they will lose their voice in this part of the market; on the other hand, the users will have a lot of overlap with the offline, so they can not get the young users and new users that the brand really wants.

In order to get more young users and differentiate from the unauthorized market, brands need to find new people and create new demands.

The solution offered by Estee Lauder is to introduce new products into the small package and repackaging design of star products.

Taking the high-end brand La Mer (La Mer) of Estee Lauder group, the price difference between the brand's products at home and abroad is very large, which leads many consumers to flow to the unauthorized market.

The consumer's perception of price difference is mainly in two aspects: "one is the percentage and the other is the absolute value."

In Gary Chu, consumers are more sensitive to absolute value than percentage.

"If the price difference of the bad 30% is only 20 yuan, will the consumer care about it?"

The best way to reduce the absolute price difference is to line up the small size.

On the one hand, it allows the brand to harvest part of the unauthorized market, on the other hand, it can also reduce the trial threshold of new users and young users.

But in the process of constantly introducing new products, Estee Lauder has discovered several problems:

Online can not let consumers get trial, and new products need more pre consumer experience.

Cosmetics rely more on impulsive consumption, and single visual presentation is not enough to enable consumers to change at the moment they see.

Tmall didn't have the ability to integrate social networks and all channels at the early stage, so that the new products could not get enough voice on the line.

Along with the continuous pformation of brands in digital pformation, Tmall is evolving accordingly.

Until now, Tmall has been playing more and more roles in connecting brands with target users. In the meantime, through Amoy resources to help brands find potential users, around the visual and content presentation of brands, we have developed a series of tools such as "data bank", "Tmall small black box" and "fan noodles", so that brands can interact with users more.

At the same time, Tmall is also gradually participating in the front-end product development process through the application of big data, helping brands better understand user needs, and adjust products in time according to user behavior changes.

A few days ago, Tmall released the "new product innovation plan", covering the whole link of new product development, from new product hatching to submersible operation to the first stage.

Previously, Estee Lauder launched an eye essence. Before listing, it got a sneak model through "panning big data", then distributed 20 thousand test items to seed users, and recovered tens of thousands of evaluations within 10 days.

It is worth mentioning that among the 20 thousand people who received the trial products, 14 thousand people returned to Tmall flagship store to visit related products, the return rate was 70%, and the turnover rate was increased by 60%.

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Let the product "aiming rate" a little higher.

Besides vision and content presentation, the core of brand is product.

Justin Comes, vice president of Marx Wrigley candy company, shared a set of data. In 2016, innovative products contributed 60% of the total sales of fast selling products, and 25% of them were post-90s consumers.

The two points in the industry's current consumer market are that the new generation of consumers is becoming the main purchasing power, and the consumer group is evolving towards a more subdivided direction.

How to target young users and create innovative products that meet their needs has become the primary topic for brands to achieve business growth.

But the cost of innovation is often great.

Clay Christensen, a famous Harvard Business School thinker, said in a study on commodity innovation that the average listing success rate of new products is less than 5%, and correspondingly, the budgetary input of new products will account for more than 50% of the annual budget.

That is to say, even if the success rate of new products is very low, new products are still placed in the important strategic position of the whole year.

On the other hand, with the evolution of market segmentation, brands need to introduce new products to different market segments, which means that brands will invest more and more in new product research and development.

How to compress this part of the cost has become a more urgent problem for the brand to solve.

In the past 18 months, the average cycle of brand new product iterations, the general brand took 10 months to do preparatory work, including research, and the remaining 8 months were used for manufacturing.

The Tmall new product innovation plan mentioned above is helping the brand shorten the R & D time by improving the efficiency of the three links of new product research, sneak operation and new product launch.

In September this year, a shampoo based on the new product plan was about to come out.

According to Tmall superbrand day leader Xiu Xiu, at the end of last year's cooperation with Procter & Gamble, Tmall's big data found that the growth rate of shampoo was two times that of ordinary shampoo, but there was a general lack of corresponding brands of more than 40 yuan in the market.

In view of this market gap, the market forecast and pricing positioning were followed, but the whole new product development took less than 1 months.

"Insight into the market opportunities is only 7 days, the concept of product selection is only 10 days, and the estimated market potential is less than 8 days. During this period, the big data from consumer feedback are constantly revising and improving the link of new product design and promotion."

Xiu Yun introduced.

This research system has also been applied to the introduction of new overseas products.

Previously, L'OREAL had a high-end product, which could be introduced into China. Most of the products were mature women, but Tmall found that most of its users in China were young, and accounted for 45% after 1990s.

After further detailed distribution of the samples, it was found that the relative anti-oxidation and anti-aging effects of the domestic young consumers were more respected for their anti acne function, so L'OREAL introduced new products to the users' needs.

At present, there are more than 500 million active users on the Ali business platform. According to Jing Jie, vice president of Alibaba group, the highest penetration brands in these 500 million groups only cover twenty million of the population.

In Jingjie's view, for many brands, there is still much room for penetration, and this figure is at least fifty million.

"How to move from today's brand penetration to fifty million, even ten million, is a huge growth for a brand. This impact is not only on Tmall, but on sales in China, or even on brand users in China as a whole."

Jing Jie said that the most important thing that Ali has done in the past two years is to let the brand operators turn these 500 million users into a viable consumer group.

Based on this, 500 million users themselves constitute the foundation for business growth and business development with all brands.

"We hope that the brand can reduce the risk that innovation has to pay with the help of Tmall platform, accelerate the speed of innovation and cash flow, so that these innovative products can break the original time and space constraints, so that 500 million purchasing people can quickly perceive the value of these commodities and become a continuous buyer, which is the value Tmall wants to help every brand business achieve."

Jing Jie told reporters this.

More interesting reports, please pay attention to the world clothing shoes and hats net.