How can a brand achieve channel transformation from 0 to 1?

How can a brand achieve channel transformation from 0 to 1?

There are many people around me who are working hard to make products, but after the products are made, they don’t know how to sell them. I wonder if you have the same doubts.

I had the same confusion at that time:

①How to sell the products produced?

②How to find the breakthrough point of sales?

③ Should you face consumers directly or find sales channels?

④If you choose channel sales, how do you connect with the channels?

After exploring for half a year, we firmly chose the S2B2C model.

Focus on the supply chain, focus on connecting channels (big B + small B), and don’t face consumers directly.

After nearly two years of hard work, Goodnight Light Bulb has achieved relatively good results in both product layout and channel layout.

This article will share with you all my practical experience in the past two years without reservation!

Let me first give you an overall summary of this sharing.

[ Point ] The ultimate hot-selling product is 0——The product is the starting point of the channel
[ Line ] Single point breakthrough is 1-Build the main position of the channel
Face 】Multi-point blossoming is 10——From single channel to multi-channel
[ Body ] Model innovation is N——Model entrepreneurship is the only way to develop omni-channel

01 How to create an ultimate hit product with annual sales of one million bottles

A total of five core keywords

The first keyword: new category

Nowadays, products are highly homogenized. How can your product stand out?
The first prerequisite is innovation - only differentiation can make it popular.
For example, our starting product: the small light bulb bubble essential oil, is definitely an innovative product in the foot bath industry.
At present, the mainstream foot soaking products on the market are foot soaking foot bath bags, which are very troublesome and require boiling water.
Moreover, the feet will be colored after soaking, so young people basically don’t soak their feet.
Bubble essential oil is the first essential oil dedicated to foot soaking. Its main selling point is to add some oil to foot soaking.
Drive out cold and dampness in 15 minutes, simple operation - instantly beats foot bath bags.
The annual sales volume has remained stable at one million bottles in the past two years, and it should be the number one in sales volume in the innovative foot bath category.

The second keyword: real pain point

It is easy for everyone to understand pain points, but what are the real pain points?
Sometimes we find a pain point that is really painful, but our solution is not the first choice.
Such pain points are false pain points for the product.
For example, when we were making bubble essential oil, our initial selling point was that soaking your feet for fifteen minutes can lead to eight hours of deep sleep.
At that time, I set up an anti-late-sleeping alliance, and fans in the group strongly suggested that we make a product that improves sleep.
But later I found that improving sleep quality was a pain point.
But everyone’s first choice solution is to take sleeping pills, and foot soaking is not the first choice.
Later we adjusted our positioning: soak your feet with essential oils for 15 minutes to drive out the cold and dampness.
Not only can you soak your feet, you can also rub your feet - soak your feet 15 times and rub your feet 50 times.
The result is that bubble essential oil sells well not only in winter, but also in summer, which is a miracle in the foot bath product industry.

The third keyword: strong experience

In the past few years of working on products, I have dealt with many product people and often encountered some complaints:
①My product is so good, why don’t customers buy it?
②Why don’t customers understand that my product is so effective?
My answer is simple - you didn’t let the product speak for itself.
So how do you make your product speak?
It’s very simple, it’s about creating a strong experience and giving consumers strong psychological hints.
So where does the psychological suggestion come from?
From his vision, smell and touch.
Today we will mainly introduce the sense of touch, still taking bubble essential oil as an example.
After soaking your feet in essential oils, your feet will continue to be warm for half an hour. At the same time, your feet will be slippery and fragrant. People with particularly heavy cold and dampness will have wet knees and backs.
This feeling is extremely comfortable and will give consumers a strong psychological hint - this product is really good, my cold and dampness will be expelled immediately.

The fourth keyword: high appearance

We have always said that this is an era where appearance is everything, and the same goes for products. Appearance is also important.
But a product doesn’t have to be good-looking; it can also be interesting.
The product packaging needs to be interesting, the moment of opening the packaging needs to be interesting, and the process of using it also needs to be interesting.

The fifth keyword: good name

A good name is half the battle, and products are no exception.
A good product name will trigger a scramble among channels and consumers!
We put a lot of thought into naming each type of light bulb. The best product name I have ever given is Small Light Bulb Liquid Moxibustion.
Moxibustion defines its category and efficacy, the liquid defines its differentiation, and the light bulb defines its image and fun.
As soon as this product name appeared, the entire channel market was in turmoil, and various online and offline channels rushed to cooperate.
In the past year, this super product has naturally grown by nearly 1,500 channels in Youzan’s distribution market.
The above are the five major standards for making a light bulb an extremely popular product, but some other standards are not excluded:
For example, high cost-effectiveness, high repurchase rate, etc., everyone is welcome to discuss together.

02 How to achieve channel from 0 to 1

The answer to the light bulb is a single-point breakthrough. When a company first starts to build a channel, it is most taboo to have a comprehensive layout and a random shot.
It is impossible for you to take over all channel segments from the beginning. You need to focus on products and channels.
In today's business era, various channel sectors are emerging one after another.
From the original physical store to the later search e-commerce,
Then to WeChat business agents, self-media e-commerce, social e-commerce, community group buying, and community group buying.
And the live streaming short video e-commerce that has recently become popular.
Each channel segment has its own core gameplay. It is unlikely that you can understand all channels at once and lay out all of them at the same time.
So for a startup product company, I strongly recommend that it choose a main channel for layout.
Take this main position as a single breakthrough point, completely destroy this channel sector, and then proceed to the next step - multi-channel layout.

In order to help everyone choose their own channel main position more scientifically, Dengbao has made two points:

First, I will carefully decide which channel segment to prioritize based on the core resources I have.

If I had the resources of an e-commerce team, I would definitely give priority to Tmall and Pinduoduo.
If I have large-scale resources, I will definitely create a public account.
If there are live broadcast resources, I will definitely do it.
If there are group buying resources, I will definitely plan community group buying.
If I had a large number of agency resources, I would definitely start a new social retail model.
Second, you must give priority to upward channels. Don’t go against the trend, but go with the trend.
The current trend is in live streaming e-commerce and social group buying, and start-up brands are recommended to choose one of these two channel segments as their main battlefield.
However, these two channel sectors have one very special point – they are extremely fond of price.
If you decide to prioritize these two channel segments, product pricing and promotion plan formulation will be very important.

03 From single channel to multi-channel

Because our current channels are relatively single and mainly concentrated in the public account sector which is on the decline.

Therefore, at the beginning of this year, our main task is to upgrade from a single-channel status to a multi-channel segment.

In the past five or six months, Goodnight Little Light Bulb has opened flagship stores on Pinduoduo, Xiaohongshu, and JD.com.

At the same time, we have also deployed some channel resources for offline health clubs.

In addition, we have indirectly connected with some live broadcast channels and community group buying channels through more than 20 channel partners.

In June, I discovered something strange: nearly half of Xiao Dengbao’s group buying orders came from one tool: Kuaituantuan.

Then we will focus on studying Kuaituantuan. I boldly predict here that 80% of the sales of community group buying in the future may be taken away by Kuaituantuan.

This is based on two judgments:

First, after such a long period of commercial influence, whether it is direct sales, micro-business, agency, or group buying, many people have been eliminated, but there is also a group of people who persisted and survived.

These people are awakening; they need more freedom and more autonomy.

On the one hand, they are still serving the original platforms, and on the other hand, they have begun to embrace the tool Kuaituantuan and are independently selecting and sharing products.

This means that a large number of group leaders will choose this group buying tool, and there are plenty of group leader resources that allow you to directly blend.

Second, if we want to do a good job in a channel section, it is best to have an aggregation platform, so that the connection can be most efficient. The aggregation platform for the official account channel is Youzan Distribution, and the aggregation platform for the group buying channel is Kuaituantuan.

Recruiting sales assistants and star group leaders for Kuaituan is our core task in the second half of the year.

In this section, we took a different approach from everyone else.

We have done a differentiated thinking - group leaders need to learn:

Choose a new platform : They need to learn the tool quickly;

Start again : They need to systematically improve their product selection ability, sales ability, community operation ability, and fission team ability.

04 Innovative channel cooperation model is the only way for enterprises to develop omni-channel

In the past two years, I have been focusing on building channels and have achieved remarkable results. However, the bigger and more channels there are, the more worried I become.

After all, these channels are not my own. What if they collectively stop cooperating with me one day?

So I have been thinking about how to deeply bind high-quality channels with us.

During this process I made some attempts:

Initiative 1: We have currently invited more than 20 channel partners across the country to work with us to develop channels;

Initiative 2: This year we also invited the first batch of outstanding channel partners and high-quality channel representatives.

A total of ten people became registered shareholders of the Little Light Bulb Partnership Company;

Initiative three: We have recently launched the Little Light Bulb Entrepreneurship Shareholder Plan, the core goal of which is to deeply bind a group of Kuaituan star group leaders.

05 Question and Answer Session

1. How to manage and reuse channels more effectively

① Channel management is divided into: channel structure management, channel member management, channel operation management, and channel performance management.

Let’s briefly list some basic management, such as price control, promotions, material updates, etc.

We need to have strict systems for these and communicate clearly before starting cooperation to avoid unpleasant problems later.

As a brand, corresponding management is the basis, and it is more about standing from the perspective of empowering channels and understanding the needs of channels.

② As for reuse, in the past it was simply a consumption of channel resources.

Now it must be based on a win-win situation. I think this is the sense of crisis of every brand.

If channels cannot be reused and long-term cooperation is not possible, it will be a loss for brand owners.

2. Do new brands entering Taobao and JD.com have no traffic support and advantages at all, and cannot survive without spending a lot of money? If yes, where to go? If not, how to play?

Whether there is absolutely no traffic support and advantage depends on the individual.

At present, there are not many brands with innovative and popular products, and there are also those who do not understand the operation methods of search e-commerce.

Without much capital to burn, it is indeed not suitable to deploy Tmall, Taobao and JD.

Because we are determined to be a channel, the logic of Xiao Dengbao's layout of search stores is not to focus on how to spend money to obtain traffic.

Instead, we focus on finding a channel partner who can professionally operate this sector, and at the same time use an innovative channel partnership model to bind this partner.

The Goodnight Light Bulb Pinduoduo flagship store is authorized to channel partners to operate.

They are professional operators of Taobao, Tmall and Pinduoduo, and have their own complete operating model and operating rhythm.

After we reached the cooperation, we also achieved very impressive results. From the perspective of the channel, this is how I solved this pain point.

If you want to build your own private domain fans and don't want to spend money and time,

The one I am currently optimistic about is Kuaituantuan, which is free and has a fast conversion rate. It seems to have great potential.

3. It is difficult to promote new health food brands. Various platforms restrict health-related words, such as clearing heat and detoxifying, etc. KOLs are quite taboo about food, especially health food, and a large number of orders are rejected. What can we do?

① How to promote health products and circumvent the Advertising Law

Personally, I think that we should not be afraid of the promotion of "health preservation". As long as we have a clear positioning and focus on this positioning, there will be many ways to do it.

When it comes to health products, you should never compare them with medicines. They are not meant to “cure diseases” but to “prevent diseases from happening”.

For health products, we should focus on the customer's pain points and dig deep into the product's value points.

Sometimes, what customers need is not a cure, but a solution to their problems. Why can it “clear away heat and detoxify”?

Think about the root cause behind it, what causes the "heat and toxicity", and if the product solves the root problem, perhaps there is no need for sensitive words.

② The channel is not interested in health products and the order is rejected

To be honest, we focus on making home health products, and it seems that this kind of taboo does not exist.

I think the reason is still a positioning issue. When creating a product, there are 5 key words behind the hit product, and there are many details that need to be paid attention to when broken down.

Targeting the crowd, designing the packaging, solving pain points, implanting culture... and so on.

If it is defined as a health product and compared to medicines, it is indeed easy to be rejected, as people will feel that you are selling "fake medicine".

Health products were rejected and excluded. I think the positioning must have touched a point that the other party was unwilling to accept.

It is recommended to re-examine the positioning and what pain points and value points the product can solve, which may be clearer.

4. How can brands efficiently select the most suitable promotional channel combination?

How to find the right channel accurately and quickly is the biggest challenge for brands.

After clarifying your brand positioning and the target customer groups of your products, choose one of the many channels that currently has a high conversion rate and focus on polishing it.

At present, how to quickly select the right channel is a question that should be thought about in reverse.

Our brand and products can solve the pain points of which channels. Once we have sorted this out, we can find the suitable channels clearly and accurately.

We must be clear about the types of channels and the pain points of channels. Only by knowing ourselves and the enemy can we win every battle.

5. Now that public accounts are declining, is this actually an opportunity for new brands? New brands have the opportunity to reach large sizes, with lower costs, and now only highly sticky users are opening them, leading to better conversions?

That's true, but there are a lot of things that need to be matched by the new brand.

For example, product positioning, pricing, promotional policies, commission ratios, and high-conversion rate tweets must comply with the requirements of the official account channel.

Author: Qun Xiang

Source: Qunxiangle

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