Counterattack On The Physical Retail Line: Creating Better Products To Create A New Economic Model For The New Community

Editor's note

The B station broke the circle and became a hot topic at the beginning of 2020.

Young people's lifestyle often becomes the new economic trend vane. With the first group of 90 to enter the age of 00, after entering the age of 20, this "tide" is emitting amazing economic strength. The capture of every living consumption trend by the new generation and the creation of every "net red" thing interprets the vigorous vitality of the "tidal economy".

The new crown pneumonia epidemic situation is also profoundly changing people's inherent life concepts and lifestyles, reshaping the new generation's consumption concept and economic behavior, redefining the connotation of "tidal economy", and the new industry and new mode has sprouted quietly.

As a result, the twenty-first Century economic report combined with the 21 Financial APP and fast company magazine launched the "China Tide economy" series of media coverage, focusing on the "tide" power in the economic operation.

At ten a.m. on Sunday morning, the famous brand black gold store located in the middle of Kang Wang Road in Liwan District opened business as usual, saying that "as usual" was not very accurate, not only because it was a shop that resumed business quickly at the end of the new crown epidemic, but also counted in the bustling downtown business district, because the products in the shop were not as "usual": the most prominent place at the door. The epidemic prevention products, including alcohol, disinfectant hand washing liquid, tissue paper and other epidemic prevention products, are becoming more popular than manway's joint series. The distribution of the epidemic prevention area, the home area and the rehabilitation area is obviously a special measure to deal with this special period.

"By the middle of March, more than 90% of the national top quality stores have resumed business." Ye Guofu, a global co-founder of CEO, told reporters that "the performance of our store has rebounded rapidly since early March, and it is expected that the overall sales will return to 70%-80% this week."

In the first year of the year, the sudden new crown epidemic brought the most difficult test question to the whole retail economy. As a new retail representative enterprise with headquarters in Guangzhou, the name of "excellent products" has handed out the high score "answer sheet" in less than two months: quick response, timely adjustment of strategy and self-help, and more efforts to make social power providers through the epidemic situation. Its original new community marketing mode has provided a new model for the physical retail industry under the cold winter, and has gone out of the new path of the "tide economy" era.

Transformation: something that has not been done in the past can be done now.

From the beginning of the founding, the name of the product was targeted at the 18-35 year old consumer group, the so-called "millennial generation".

According to statistics, China's "millennial generation" has about 415 million people, accounting for 30% of the total population. In the report of the millennial generation, reshaping travel and shopping habits, Roland Begg management consultants proposed that China's "millennial generation" consumers will dominate the consumption pattern of China and the whole world in the next 10 years. The "millennial generation" lifestyle has become the vane of social and economic trends: they pay more attention to quality and service, and pursue individualization, diversification, high quality and experiential consumption.

The most notable feature of the "millennial generation" is born in the Internet and longer than the Internet. They are the backbone of China's seven hundred million Internet users.

However, in 2013, the famous premium products have always focused on offline retail, until 2017, and then formally launched the "touch net", and launched the fashion original life self operated electronic business platform, named Chuang Chuang. At the end of November of that year, Ming Chuang said that the platform, relying on the name of the product line and the more than 2000 Largest stores in the world, has successfully completed the first step in building the O2O ecological chain.

In the past six years, although the name of the top quality products has been placing the main sales outlets online, it has gradually accumulated resources, waiting for the layout of the online ecological chain. The outbreak of the new crown pneumonia outbreak in Ye Guofu seems to be the best opportunity for a famous product to launch its online channels. "What has not been done in the past can be done now."

Over the past 6 years, we have cultivated more than 25 million members and community fans. During the epidemic, this group of members and fans formed a natural private flow pool. The famous and high quality products take the opportunity to start the social networking project, borrow the marketing ability of WeChat ecology, and regard the community as the main channel to communicate with members and fans, on-line small program mall, providing products with just needed products, and get more users and sales through social fission. Famous and high quality employees take part in the online live broadcast voluntarily. They sell products on their own. They also launch the "contactless distribution" service, and cooperate with Shun Feng to launch the "city rush service" to ensure that the goods can be delivered to consumers in the first time during the epidemic situation.

For this traditional retail industry has never seen the "new community marketing" mode, Ye Guofu read: "in the past, you see most of the electricity providers do not have physical stores, and our mode is not relying on the third party platform, based on its own stores, directly oriented to customer service. This has a higher brand trust than previous e-commerce or micro business. Its greatest advantage is that it helps to enhance the stickiness of our offline members, thereby enhancing the rate of repeat purchase.

With this ingenious mode, the online business of famous and excellent products during the epidemic period has increased by 300%, not only to a certain extent, it has hedged the loss of the performance under the line, but also let the famous excellent products find the opportunity to expand the online layout and run out of the new track of physical retail. Ye Guofu expects that within this year, the proportion of online sales of famous and high quality products will be close to 10%.

Evolution: "seize the opportunity of the rise of the parity brand"

In the new economic wave of the millennial generation as the main consumer force, "getting young people to get the world" seems to be the secret and creed of every brand or product's success. The capture of every living consumption trend by young people and the creation of every "net red" thing are interpreting the vitality of this trend.

The brand name and excellent products that conform to this trend have opened up the market of young people rapidly from the very beginning by the extreme product design, the price of earth gas and the good shopping experience.

The market strategy of famous and excellent products coincides with the view of consumption of the millennial generation. "The new product of famous brand products is once a week." Ye Guofu told reporters, "why should we keep such a fast frequency? Because consumers are constantly attracted to come in. We are serving young people and young people. The biggest characteristic of them is their sense of scarcity and new things. If you don't have anything new, you can't live. Why have there been so many brands of the same type in the past, and the last ones left are us? Because other brands are not doing enough in the field of innovation, and slowly there is no new product, customers are tired of it. "

Fully understanding the preferences of young people and responding quickly is the unbeaten advantage of famous products. As early as three years ago, the famous and excellent products introduced Hello Kitty and other big IP. After that, we gradually explored a set of mature IP cooperation system, and launched the peripheral products with many IP cooperation such as pink panther, KAKAO FRIENDS, man Wei, the Imperial Palace and so on. We caught the trend of young people's taste and provided original design. By CO listing with other IP, we can see that the name brand is trying to get out of a new mode to cater to the "consumption upgrading" of young people.

Despite the grim situation of the new crown outbreak, the name of the top quality products did not stop the pace of product updates. During the epidemic period, the product development team of famous and high quality products always adhered to the front line, increased the category of anti epidemic products according to the needs of consumers, launched timely market masks and sterilizing products, and set up defensive product areas in stores to make up for the significant gap in the market.

Ye Guofu believes that the new crown pneumonia epidemic situation has also given a deep lesson to the 80 and 90 after consumption as the main consumer: "they refuse to be moonlight again, and they will start to work harder and make more efforts to save money."

This may be another kind of "consumption escalation" - the inherent lifestyle and consumption concept will be broken and reshaped, "consumers will spend every penny more carefully. This is a good opportunity for the rapid rise of parity brands.

Ye Guofu expects that global consumption will return to the essence of the epidemic and return to the pursuit of cost-effective parity. He said that the newly developed products of the famous and innovative products will be reduced by 20%-30% on the basis of guaranteeing the quality, so as to meet the global parity consumption draught with a more excellent "high quality and low price".

Expansion: "800 million helping partners, expanding overseas"

With the characteristics of high quality and low price, the famous and excellent products have opened up the global market, and have more than 4200 stores all over the world. Among them, more than 1700 nearly 100 countries and regions outside China are a model for Chinese enterprises to go to sea.

Even in the most serious February, the top quality products did not stop overseas expansion. "In the 1 and February of the global epidemic, our overseas business even increased by 30%." Ye Guofu revealed.

When the entity retailing shop hit by the outbreak of the epidemic, the excellent products went upstream and walked out of the forerunner.

In March 11th, a famous excellent product was announced to set up a 800 million yuan "support fund for partnership with famous and excellent products". All eligible franchisees can apply for loan application to name Chuang headquarters to solve cash flow difficulties. Headquarters will also approve specific loan quotas according to their cooperation, qualifications and needs.

This initiative is aimed at assisting the franchisees to ease the cash pressure and speed up the resumption of production, thereby stimulating the circulation of the industrial chain, expanding the number of stores and expanding the business layout. According to Ye Guofu, as of March 14th, nearly 20 franchisees reported their applications to headquarters, with a total application of nearly one hundred million yuan.

Every black swan event will have new changes. During the SARS epidemic in 2003, HUAWEI was at a critical juncture, while playing international litigation with CISCO, while the domestic 3G investment was wasted. "No complaints, two mediation, self-confidence is more important than gold". Under the leadership of Ren Zhengfei, HUAWEI worked hard to reduce the cost of enterprise operation and force the overseas market, and overseas revenue exceeded the domestic market in two years.

Ye Guofu believes that the opportunities faced by famous and excellent products are even more advantageous than the UNIQLO and MUJI products that Japan has seen in the 30 years of economic recession. "Enterprises that can truly create value for consumers and society will never be eliminated by the market, and will certainly pass through a short period of difficulty and usher in an opportunity for explosive growth."

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