Online Brands Lack The Awe Of Offline Market

In the past two years, the rise of innovative consumer brands is obvious to many people. With the support of capital, the pursuit of e-commerce, the hot discussion of users, and the frontier innovation, many entrepreneurial brands have become the focus of the topic in the circle.

In the past, new distributors have also reported dozens of brands. We have always been firm. As long as there is "innovation", it is worthy of being reported and seen by more people in the industry. It is of great value and significance to learn from peers and promote cooperation between upstream and downstream.

But this is not to say that these enterprises have absolute leadership. On the contrary, most of the time, these innovative consumer brands are in the spotlight, and the actual operation is far from as bright as it seems.

In the Internet circle, the industry usually talks about enterprise management with "syllogism". 0 to 1, 1 to 10, 10 to 100. In my understanding, from 0 to 1, the core element is innovation, whether it is category innovation, product innovation or scene innovation. As long as the entrepreneur can make innovation at a certain point, meet the current new consumption demand, and grasp a pain point, it is not particularly difficult for the enterprise to complete from 0 to 1.

Many innovative consumer brands can complete the leap from 0 to 1 stage in one year and three years in the long term. With stable supply, mature products and a fixed group of users, we can achieve a volume of 100 million.

However, when it comes to stage 1 to 10, that is, between 100 million and 1 billion, many innovative consumer brands basically stop here. It's not that the product itself is not bad or the marketing is not bad. However, as a food field, offline is the real market, while offline is a tough bone to chew.

If we only make one single product, the sales volume of 100-500 million online is basically the top brand in the category, and 50% of the market space is basically consumed. To achieve 500 million to 1 billion, it is an inevitable choice to go offline. However, when we really went offline, we found that online and offline were completely two commercial formats, and market expansion was hindered frequently.

-01-、 Innovative consumer brands are confused when they are offline

During this period, during the preparation for the China FMCG conference at the end of August, when inviting and sharing guests, I also communicated with several friends in the industry of innovative brands. In the process, I found that many innovative consumer brands played very smoothly online, but they were completely confused when they arrived offline.

The brand with rich resources can quickly enter the chain retail channels such as HEMA, Yonghui, Wal Mart and Quanyi; the brands with a little lack of resources, or entrepreneurs without any offline experience, or even the cooperation mode of entering HEMA and Yonghui are not clear, and the suppliers behind them can not be found, and they do not know how to enter the market.

For the offline "Mengquan" innovative consumer brands, in order to lay out offline, they recruited sales directors, but they often quit after two months. Those who don't know how to sell are the sales executives of the first-line brands and become partners. However, the logic of playing a new brand and a well-known brand is very different, with different backgrounds, different resources, and incompatibility.

Finally, I couldn't help it. I couldn't play offline, but I went back online. In order to break through the ceiling of a single category, I began to extend the product line and continue to spin online. Although this is also a path, but in any case, we still have to go offline. In the field of food and beverage entrepreneurship, offline is certainly inseparable.

Why do we have such a problem? I think the core is cognitive bias.

-02-、 Lack of awe to the offline Market

What is cognitive bias?

Some time ago, Mr. Zhou Weiping, the founder of A1 snack Research Institute, had an in-depth exchange about the online red brand. As he has 20 years of experience in traditional food industry, he founded A1 snack Research Institute, an innovative consumer brand in 2016. I think his answer and understanding can give you some inspiration.

Mr. Zhou said that we can see that many of the entrepreneurs of these innovative consumer brands are born on the Internet. Compared with traditional businesses, they are often "superior to others". I'm more advanced. I'm revolutionizing you and subverting you. With this mentality, in their eyes, many traditional offline dealers are very low, doing goods handling.

I think it's very proud to be on the top 1 list. Of course, going offline can also do well. There are a lot of business rules on and off the line, but in fact, they are totally different. Such as pricing, specifications, packaging. Besides, there is not enough space for dealers to cooperate with each other. This is essentially a lack of awe of the offline market, which is the first problem.

The second problem is that we did not really go deep into the front line and feel the temperature of the market. The understanding of market and demand is limited to the circle around him. If friends around you are using iPhones, you will think that all Chinese are using iPhones; if your friends are eating healthy meals, you will think that all Chinese people are losing weight.

In the past, we have been talking about consumption upgrading, and then we put forward consumption stratification. It's true. Today, your products sell very well in HEMA, but once you put them in the traditional store next door, you can hardly sell them. The market we are facing is not a single market, but a diversified and stratified market.

Behind each channel is a consumption ecology, and behind each city is a consumption ecology. Consumption in the first and second tier cities is quite different from that in the third and fourth tier cities. We must not understand the whole market from our personal cognition.

The third problem is organization matching. Mr. Zhou said frankly that there are many people with internet genes, but there is a lack of people with offline capabilities. If there is no such person in the early stage, the whole enterprise does not have the offline gene. If it is recruited in the later stage, it often changes and cannot stay. Because the whole enterprise resources are given to the online, offline resources are difficult to get. Without resources, there will be no guns and ammunition. Naturally, there will be no good performance and gradually marginalized.

They don't understand the offline market, lack of awe, and there are no resources in the people recruited. This is the dilemma of many innovative consumer brands entering the offline market.

-03-、 Be an honest man and return to 4P itself

As a traditional FMCG practitioner, I was instilled from the very beginning of my career. I must talk about 4P in terms of product, price, channel, promotion and market. On the contrary, the current innovative consumer brands, under the survival soil of the Internet, talk about operation, traffic, users, transformation and so on.

There's nothing wrong with it. It's natural to talk about it online. But in order to get more business, when the brand wants to go offline, please abide by the offline rules. The offline physical business is not on the Internet. It will not be so big. Be an "honest man", cultivate every market and channel, and treat every dealer partner kindly.

1. "Universal" products

If the product itself, this is the strength of innovative consumer brands, there is nothing to be picky about. The matching of products and consumer demand is no problem. But in addition to demand, offline "price" is a key indicator. Why do you say that? Online, through the Internet, we can accurately reach the target consumers, not only consumers with demand, but also consumers with purchasing power.

However, offline, in the face of a wider market, it is often impossible to reach consumers accurately. The most appropriate way to measure purchasing power is the average level of the industry.

Take a bottle of bubble water as an example, the mainstream price is 5 yuan. You are a better product. No matter whether there is a brand premium or not, it is understandable to sell it for 6 or 7 yuan, but if you sell it for 10 yuan or 12 yuan. Sorry, even if you blow up the product, most consumers will leave you.

From another dimension, the core carrier of offline market is static shelf. Unlike the Internet, you can communicate your products to consumers through text, pictures, videos and other forms. However, the offline static shelf can only rely on the outer packaging of the product, and your brand is also unknown.

If you want to get more business in the offline market, it is the most important thing to get the price down. Of course, returning to the positioning of innovative consumer brands, if your products are to meet a small number of high net worth groups, through online e-commerce or one or two off-line scenes, there is no problem at all. It's important what you want. However, if we want to go from 500 million to 1 billion, it is very difficult to satisfy a small number of people with only one single product.

In the general words of Zhou of A1 snack Research Institute, "the pyramid of price and scale is always there. Every time you increase a dollar, your consumer group will shrink, and every dollar you reduce, your consumer group will expand. You should know which market you are going to fight in! "

2. "Respect" channel

Online, innovative consumer brands can directly connect with consumers, communicate with consumers, talk to consumers, and choose matching platforms through insight into consumers. Therefore, we talk about "operation" most online, and the object of operation is consumers.

But offline, in most cases, except for self built retail, it is difficult for FMCG brands to achieve single line contact with consumers, let alone two-way communication. Offline, the most important link is "commodity distribution" when placing goods in the nearest place to consumers through channels.

How to persuade retail stores to buy your products? Maybe many entrepreneurs think that I am a famous brand with a lot of traffic. Even if I enter the channel like HEMA Xiansheng, they don't charge me the bar code fee. As a community supermarket of 500 square meters, you ask me for the exhibition fee, but you don't think the gross profit space is enough

Sorry, for a community supermarket owner, even if you are a big online brand, as long as you are not Coca Cola, the initiative will always be in me. Persuading retail stores to buy your products is not simply based on your being an online brand and your products are good. Reasonable profit is the basic threshold, and customer relationship is also the key factor.

Offline, a commodity has gone through 30 years of baptism from dealers, distributors, retail stores, and finally to consumers. We should believe that existence is reasonable. Respect the offline business rules, give dealers reasonable profits, describe the operation of the market, and let channel partners sell your products to more places.

3. Understand "dynamic pin"

Respecting channels is to solve the problem of distribution entering stores. Understanding dynamic marketing is to solve the problem of being bought by consumers after entering the store. Why should consumers buy your goods, not other people's goods.

You say my quality is better? But how do consumers know. You said that I sold it to Top1 online. There are grass planting advertisements in xiaohongshu and Shuo Yin. But I'm sorry, according to the funnel model: first, consumers don't necessarily remember; second, even if they remember, consumers may not be able to see 1500 SKUs on four or five groups of shelves in an ordinary 150 square meter community supermarket; third, even if you see them, your competitors are not only the same products, but also may not be the same products. They are on sale or have small pendants tied to the products The fee taker was drawn away.

In the past, we have always said that the attributes of FMCG are "homogenization, low concern and instant consumption". The offline market products are basic, but not * *.

With such a cognitive mentality, let's look at "dynamic marketing". As Internet entrepreneurs, they are very concerned about ROI, focusing on the integration of product and efficiency. How much money they have invested and how much money they have paid back can be seen immediately. This is very common on the Internet.

But when you go offline, you have invested 100000 yuan today, and you may not even see a splash. You can't see the effect in the short term. At this time, whether you vote or not, you may still have no water spray, if you don't, there will be no sales. This is a great test of one's ability to market.

For the dynamic sales of a new product in a regional market, we often need to make "invisible" pre investment, such as pushing head display, cutting box display, poster posting, tasting experience, bottle labeling

The essence of off-line dynamic marketing is not how good the selling point of the product is and how much it matches the consumption scene at that time. It's about how to attract consumers, let them pay attention to me, and let them feel that they need you at this moment. The method of moving pin on the static shelf under the line is completely different from that on the line.

When you go back to the next line, when you're thinking about the next line, when you're thinking about the next line, when you're thinking about the next line, when you're thinking about the next line, when you're back to the next line, when you're thinking about the next line, when you're ready to go to the next line, when you're. Please go out and have a look at the small shops in the circulation community, the wholesale market and the stores in the third and fourth tier cities. What is the real market!