10,000-word analysis of brand's overall growth

Contents of this article:

1. How to break through the traffic dilemma through global growth?

2. How can new brands start on Xiaohongshu with a low budget?

3. Efficiently create a closed loop of founder IP

4. How to understand users? 4 steps to define a hit product

5. 90 days 0-10 million self-broadcast, brand thinking for live broadcast

6. Roundtable: How can brands find new growth points in 2022?

7. The pitfalls that online brands encounter when entering the offline market

8. What are the private domain operations of long-termists doing?

9. How does Xiaohongshu achieve high conversions with a low budget?

1. How to break through the traffic dilemma through global growth?

Currently, many businesses have a misunderstanding: brand growth is driven by attracting new customers. They believe that only by constantly attracting new customers can a brand grow, and even the founder’s work focuses on finding anchors and visiting channels, while ignoring products and repeat purchases.

From the growth quadrant, we can see that if a product has low repurchase rate, the merchant is in a dangerous "leaky bucket" even if it is growing rapidly. Perfect Diary has gone from its heyday when it went public to its current share price falling below $1, and the risk of delisting has already given everyone a warning. Rich companies like Perfect Diary are frantically attracting new customers, but without repeat purchases, they continue to suffer losses. 99.9% of ordinary businesses should pay more attention to the importance of repeat purchases.

If a brand wants to grow and make profits, there are two key points: attracting new customers and repeat purchases. Here, I give a simplified global growth model:

1. Bottom-level combing

Whether you want to create a so-called brand or make money, the underlying aspects of the product: positioning, selling points, vision, and product strength must all be considered. Even if you want to make quick money, traffic is not the most important thing. These products don’t have the underlying foundation, so how can the traffic be converted?

All the underlying things must be thought through before any market action or even product development.

1.1 Selling Points

Many brands think it is easy to refine selling points. In fact, what seems to be the simplest is actually the most difficult.

Last month, Lao Wang E-commerce Academy held a training course, where students from three brands shared the selling points of their products. As expected, the selling points of the three brands were not very attractive in the eyes of other students.

• A pet health product: The selling point is 100% fish oil imported from Peru, but other students are more interested in the 25% higher absorption rate and the fish oil that does not stain your hands;
• A menstrual cream recipe: The selling point is that it is a formula of 7 Chinese herbal medicines and is 64 times concentrated, but other students are interested in the fact that it will relieve pain after taking it.

Every brand is very confident that its selling points are well-refined, but many people are blindly confident.

2. Attract new customers:

Why are some brands great at attracting new customers but still losing money?

I hope everyone remembers two key sentences:

1. Consumers are mobile;

2. The product is not good, and they are burning money to attract new customers. They are losing money now and will continue to lose money;

Consumers are mobile:

In terms of loyalty, there are "loss zone", "indifference zone", "emotional zone" and "blue ocean zone".

• Loss zone: In a red ocean environment, most customers face too many choices. At the same time, human nature is to like to try new things.
• Indifferent zone: customers will choose good products, but their loyalty is average. Once they find better competing products, they will leave.
• Emotional zone: Customers become dependent on products and brands and habitually choose products they prefer.
• Blue Ocean Area: Customers have too few choices and have to be loyal to products.

The cruel reality is that products are highly homogenized, and most consumers are in the "loss zone" and "indifference zone". Don't think that as long as you attract new consumers, the consumers are yours, especially for new categories. You have educated consumers, but in the end, the lost users are likely to repurchase from competitors with better products.

The product is not good, and we are spending a lot of money to attract new customers. We are losing money now and have been losing money for a long time.

It's 2022 now, and strategic losses are no longer suitable for new consumption. Why do they suffer losses? In most cases, it is because they are unable to attract new customers, or their poor product strength leads to poor repeat purchases, which puts them in what we call the "leaky bucket" and "no way out" quadrant. In particular, losses caused by poor product strength will only lead to greater losses.

3. Repeat purchase

In repeat purchases, the membership system and private domain traffic are very important parts. The cost of acquiring a new customer is five times that of maintaining an old one. So, don’t ask whether to do private domain or when to do it. The answer is definitely to do private domain, right away.

4. Brand level

It is actually difficult to evaluate the data-based effects of brand stories, PR communications, user word-of-mouth, user activities, etc. on attracting new customers and repeat purchases. But these are all helpful for attracting new customers and repeat purchases. It is to build users' favorable impression of the brand from the emotional and cognitive level.

The traffic generated by emotional recognition is the traffic that truly recognizes the product and the brand, and is not easy to lose.

The purpose of growth is to make profits and grow the brand, not to achieve vain GMV. Never let the focus of e-commerce become spending marketing budget to increase GMV. Growth should be systematic and global.

2. How can new brands start Xiaohongshu with a low budget?

1. Choose Competitive Products

As a new entrant in the industry, when it comes to content marketing, there must be many "predecessors" who have figured out various popular articles. Therefore, choosing competitive products is a good shortcut. Finding a reference and learning from the results you have already achieved is the most efficient way and can also help you avoid pitfalls.

How to find references?

• Products in the same category: Taking our brand "Milk Ginger Tea" as an example, the products under the instant drink category are all reference targets.
• The demand scenarios of the population are the same: consumers who demand milk ginger tea also have the same demand for similar functional gummies, so this type of product is also a reference.
• Products with a lot of hot articles: Hot articles in the food category, you can refer to their hot article ideas

2. Four major elements of Xiaohongshu content

1. First image

Find a suitable presentation format for your product in the near future! Keywords: suitable for your type of product, recent

You can look at these three pictures, they are almost the same. Why can such pictures go viral? Because during this period, such pictures are new to everyone and can arouse everyone's curiosity. Once similar pictures become rampant, users will lose their curiosity and the number of clicks on the pictures will gradually decrease.

2. Title

Once the first picture and title are selected, you are 80% successful. Titles can also be set using fixed templates. for example:

1) "It is recommended that girls replace milk tea with him" can be transformed into "It is recommended that people who want to lose weight replace milk tea with him"

2) “Internal employee recommendation”

3. Carousel and copywriting

Users like to look at pictures. When users click in, the carousel pictures can attract their interest and users are more willing to browse the content. There are a few points to note in the copy:

1) What kind of style is more like personal style

2) How to express the selling point? How many expressions? How to sort? How long

Milk ginger tea, let me talk about two selling points:

• Solve the problem of menstruation
• It tastes good, just like drinking milk tea

There is no need to talk about the other calories, milk powder, and ginger.

3) A hot article does not mean a hot product. You have to find the right balance.

Some notes have very good data, but it is not because the product attracts users' attention and curiosity, but because of the characters themselves. Such explosive articles are not helpful for product conversion.

Product descriptions are very important. If it's too soft, users won't know what you are. It’s too hard, the data is poor, and users know it’s an ad.

4. Comment and interact

Comment maintenance: add fuel to the fire of high-quality content. High-quality comments can drive more interactions, and increased interactions will drive more free traffic.

• Draw attention to the product and encourage purchase.
• Great comments will trigger more comments from fans. The higher the interaction, the more helpful it will be for conversion and improving the weight of the notes.
• Push positive, high-quality comments to the top.

3. Continuous output of content:

All content is time-sensitive. What if a certain form of content no longer has the traffic dividend of the platform?

1) Change the expression of the first picture

2) Change the crowd, needs, and scenarios

For people who are menstruating, after 6 months, they have made almost all the money. But the product still needs to be promoted, so it is time to change the target audience. For example, people who care about their health can also do it, but they can use a different way of expressing the content. For example, "cold body", "air-conditioned room", etc. In this way, it can be created.

3) If that doesn’t work, change the product.

3. Efficiently create a closed loop of founder IP

Yi Zihan, founder of Songxianxian & Qingxinhu

1. Why do we need to create a founder IP? There are several important points:

1. Spread the brand concept: Having a personality and not having a personality will give consumers completely different perceptions. Having a personality will reduce consumers' sense of distance and create a sense of closeness, especially in the private domain, which can increase the product's favorability and trust. On product pages such as Tmall, the founder’s personality is continuously displayed.

2. Create high conversion and long-term repurchase: Taking [private domain] as an example: character first, then product! The annual repurchase rate of Qingxin Lake Private Domain reaches 450%. Consumers are willing to continue to repurchase for a long time because the IP output by the founder represents the brand, and because of the trust in the founder, they have trust in the product.

3. Reduce marketing costs: No need to buy traffic everywhere. Once the founder's IP content goes viral, it is equivalent to saving the advertising fees of a celebrity with a million fans;

Therefore, being a founder's IP is of great help to the brand, traffic, private domain, and conversion ends.

2. How to create founder IP:

1. Customized IP story: First of all, you need to customize the founder’s story, and it must be true.

2. Integrate the founder’s story: repeat it across all channels and present it in a unified manner. The founder’s story should be conveyed through any channel that reaches consumers, which will enhance users’ emotional cognition. Once this cognition is established, it is difficult to eliminate.

3. What content does the founder’s IP convey?

1. The ultimate goal of all creative content is to spread corporate values, brand concepts and product concepts. The founder's IP represents the brand and product.

For Songxianxian, the core keywords of corporate values ​​are:

#0Add healthy seasoning##The creator of Matsutake seasoning#, #Make healthy seasonings that your baby will love and your whole family can eat with confidence#, #Three Highs#Pregnant women#Elderly#Can all eat with confidence, #Healthy diet# #Healthy kitchen# #Mother and baby nutrition#

Therefore, creative content should revolve around these core keywords.

2. Spread the company's values: humility, sincerity, persistence, and happiness.

3. Matrix of public accounts + matrix of video accounts. Expand the spread. There are three official accounts: Teaching Vegetarianism, Qingxin Lake Vegetarian Food, and Qingxin Lake Vegetarian Food. There are also 3 video accounts: Songxianxian founder Yi Zihan, nutritionist mother Yi Zihan, and Yi Zihan talks about the ingredient list

4. Planning content

After the content direction and content channels are determined, how to plan the content?

1. What is the founder good at? Take yourself as an example, find a label from yourself, and it must be true. Only the truth can impress people.

2. Communicate in accordance with your own brand concept: find out what you are good at, make a mind map, and find the communication direction. Many founders are afraid of appearing on camera and are perfectionists. The most important thing is to take the first step and make adjustments through continuous attempts.

3. Split the detailed plan according to the mind map and arrange personnel to execute

The next thing to do is to continue output and optimize continuously.

The ultimate goal of IP is to complete the closed loop of implementation. Do founders need to think about how to empower sales? How to empower the brand? When the user's mind is consistent with the mind that the brand wants to convey, the ultimate victory of brand marketing is achieved.

4. The underlying thinking logic of brands with annual sales of one million to over 100 million

Zhao Dan: Founder of Luyouxian

The problems faced at different stages of brand development are different. At the beginning, the problems faced by the company were:

1. In the early days, there was no focus on the target group: At first, it was a company selling fresh products, with a very strong supply chain and many SKUs, but this was product logic, not brand logic. Later, after careful consideration, including supply chain advantages, profits, and the needs of the market population, we finally decided on Cod, focusing on babies aged 6 to 36 months.

At the beginning of 2021, the popular Icelandic Atlantic cod, completely different from its competitors, was packaged in small sizes. Later, it was named Xiao Fang Cod.

2. Fierce competition after transformation: After the transformation into children's complementary food, as a new brand, there is great pressure. From children's fresh food brands to children's fresh food brands, we cover cod products all year round and deeply cultivate the cod category;

3. Seeking strategic breakthroughs: Codfish targets a limited number of people and has a relatively low ceiling, so the company’s strategic focus has changed from children’s codfish to children’s pre-prepared meals, seeking greater room for development;

As a brand with supply chain advantages and entering the new consumer product track, Mr. Zhao has extracted four replicable experiences:

1. Focus: Traditional e-commerce merchants and factories with supply chain advantages often encounter the problem of having too many SKUs. Each product is their own child, but in fact, too many SKUs put pressure on cash flow and inventory. They must have insight into the industry, study competing products, find their own advantages and core groups, streamline SKUs, and focus on products and groups. Only by focusing can we have a chance to break through;

2. A hit product does not necessarily represent a brand, but a brand must have a hit product: To determine the core product of a brand, it is often difficult to have technological innovation, so micro-innovation can be carried out on the product. Luyouxian is in the cod race. It packaged cod into small bags, which is more convenient and immediately attracted the favor of target users;

3. PR builds a brand, and word of mouth is very important: opinion leaders are the key to gaining a foothold and breaking through the circle. It is necessary to find KOLs from different dimensions to help the brand speak out;

4. Keep trying and find new traffic pools: Xiaohongshu, Douyin, Bilibili, and Zhihu are all very important communication channels, especially Xiaohongshu and Zhihu. Both good and bad reviews are rapidly bursting out on these two channels. In addition to these channels, any channel is very important in the process of brand growth.

5. 90 days 0-10 million live broadcast, brand thinking for live broadcast

Chen Wanli, founder of Laidian Technology

Tik Tok is like a horse racing mechanism every day, only 5% of people can make money, and its user base and traffic are not as good as before.

Online businesses face nationwide competition, and as a brand you have to think every day: How to create unique value?

1. Tik Tok is still in the development stage

I am optimistic about the future of Douyin e-commerce because I believe in one thing: all business models must ultimately be more efficient. The penetration rate of live e-commerce is less than 30%, and it is still in a relatively early stage:

• E-commerce retail growth rate is greater than offline and overall
• Tik Tok's growth rate is greater than the overall e-commerce market
• The growth rate of strong sellers is greater than that of Douyin

2. Four reasons why brand live streaming is not doing well

1) Recognize the problem, learn quickly from more people who have achieved results, and see your own situation clearly.

2) It’s a mentality problem. I’m anxious. When I see others making tens of millions a month, I want to do the same. But I can’t follow the underlying logic of Douyin. I can’t eat hot tofu in a hurry.

3) The problem of people. All the excellent traders have done their own work, and the people you can recruit are basically mediocre.

4) Issues with execution. The boss entered the game with a try-it-out mentality and treated Douyin as a channel. Although he paid lip service to the game, he did not invest any time or energy in it, leaving it all to the team. His execution was completely unable to keep up with the pace of Douyin.

Why we were able to do well by switching over from Tmall? Because I think the underlying logic of e-commerce is essentially the same, and it will ultimately come back to the degree of matching between “people, goods, and places.”

3. The underlying logic of Douyin

1) Track selection: When merchants choose a track, they need to consider whether the track is large enough, how fast the number is started, and the degree of supply chain matching.

2) Using brand thinking to create TikTok

Making Tik Tok is just grasping the essence of traffic through brand thinking

3) Trade-offs in business strategy

4. Understanding of Tik Tok Algorithm

Tik Tok is essentially an Internet product, and the algorithm is behind the product. Why a live broadcast room has no traffic? Almost all problems can be traced back to the underlying system of the algorithm.

Douyin likes hot products, so the brand live broadcast room must have its own three models: traffic model, retention model, and conversion model

Therefore, we need to tell Douyin what kind of people it needs through clear “people, goods and places” to help Douyin quickly build a model.

5. Control of people, goods and venues

The transmission of people, goods and places is mainly about conveying emotions through content. Doing live streaming is like running an offline store. How do successful offline stores operate?

people:

1) Identify the core pain points of the population

What problems do the group have, what problems can I solve, what products can I use to solve them, and what are the corresponding words?

Moms, middle-aged and elderly people, office workers, wealthy men, etc.

2) Users’ thinking that meets the same needs: Today’s users, especially those born after 1995 and 2000, are no longer limited to explaining the product’s selling points. Many users will like a brand because of the brand’s values ​​and vision. The competition nowadays is not just about brand products, but also about vision.

3) Treat traffic as people, and treat consumers as people: Douyin is a content platform that pays more attention to consumer experience. In particular, negative reviews from consumers have a greater impact on Douyin than Tmall, so we must respect every bit of traffic and provide a good experience for every bit of traffic.

goods:

1. E-commerce products are the foundation of business operations. If the products and product structure do not have advantages, it is impossible to gain a competitive advantage.

For example:

If you search for blenders on TikTok, you will see blenders from many brands. If your product itself has no advantages, you will have little chance of winning when competing with other competitors.

2. Product Depth:

If a consumer wants to buy product A, he is more willing to choose store 1 to make the purchase, because in his impression, store 1 is more like a professional seller of product A, rather than store 2 or store 3.

Depth highlights the professional image. Without depth, there will be no large live broadcast room.

3. Use accompanying products to set off the live broadcast room

When consumers enter the live broadcast room and there are enough products, they will stay longer. With more products, the live broadcast room will have a different aura. Compared with a live broadcast room with only a few products, consumers are more willing to believe that it is a large store.

4. The end point of e-commerce is the supply chain:

99% of the sales in live streaming fail in the supply chain. The advantages of the goods determine whether the live streaming room can be successful. And every high-quality live broadcast room must attach great importance to the live broadcast room of the supply chain.

field:

The so-called love that grows over time usually begins with love at first sight, and this is especially true for live streaming. A good live broadcast must be "directed". A good live broadcast is very much like a good movie, and even has some acting elements.

How to create an awesome site:

• Real scene: the part that consumers can see when they come in, including the scene, anchor, clothing, background, lighting, etc.
• Virtual scenes: water army rhetoric, situation control rhetoric, voice, and emotional guidance.

Specifically can be divided into:

1. Light: The clarity of the picture does not necessarily mean that the more expensive the equipment, the better.

2. The activity atmosphere of the background: The floating screen should have information such as prices and discounts, so that new users who enter the live broadcast room can find clues about the live broadcast room through the background, such as: are there any good things here, and there are no cheap products here. This can also increase the stay in the live broadcast room.

3. Things in the first perspective: The key is to let consumers come in and know what you are selling?

4. The anchor's attire is also very important: because we are pursuing a simple style, the anchor's style and the style of the live broadcast room should be unified;

5. Water Army: Improve the atmosphere of the live broadcast room through interaction and answering;

6. Roundtable: How can brands find new growth points in 2022?

1. As the epidemic recurs and traffic becomes more expensive, how should new consumer products adjust and respond?

Main ingredient:

The impact of the epidemic on everyone is relatively consistent. Because of the delivery address, we will have a fluctuation of 20-30%. We respond by direct shipment from factories and stocking up on suppliers, but because we are in the snack food category, changes in the economic sector have little impact on the snack food category.

These changes are on the supply chain and express delivery sides, not due to changes in consumers. The ceiling for the snack category is relatively high. The impact of all epidemics on the track is relatively low.

However, the company will not be greatly affected in terms of recruitment and marketing. But they will focus on the business model, hoping that everything will be one-way and positive. Douyin will not make money, will not have a large volume, and will be more concerned about the quality of the content, etc.

Wang Yichao:

The delivery capacity will indeed be affected. The demand is there, but consumers cannot buy it and the products cannot be delivered. If production cannot keep up, we must control marketing investment to ensure that the business model is positive.

When investing in brand building, you need to control your emotions, take consumers’ feelings into consideration, and be cautious about inappropriate advertising.

Zhou Lei:

Consumers’ consumption upgrades are basically irreversible. We used to buy very good products, but because of the epidemic, we buy bad products. There is no possibility that consumers will reduce consumption, especially household products.

What industries have been impacted? An industry with false demands. Under the epidemic, some bubbles have been squeezed, but for industries with rigid consumer demand, merchants do not need to have too much negative emotions. Is our population accurate and is our business model stable?

2. In this year's environment, will there be any emphasis on product, brand, and marketing?

Lu Zhu: Consumer goods have a triangle: product, matching, and channel. Consumer product companies need to study these three factors.

Product side: The R&D center has received more attention, attracted talents from Nestlé and Mars, and studied the company’s second growth curve. The ceiling of the chicken feet category is relatively high, but that doesn’t mean we won’t reserve a second curve. Especially this year, the cost of chicken feet has increased a lot.

Channel side: The offline share continues to rise, and is not significantly affected by online traffic, and is still increasing. Gain incremental growth on Douyin and Pinduoduo.

Brand side: Continue to follow last year’s plan, continue to increase entertainment marketing, and place mid-roll advertisements. Because we have conducted in-depth user interviews, the most common scenario used by users is watching TV series. The proportion of women watching dramas is higher than that of men, so we think we should invest in big dramas based on user scenarios and user population portraits.

Wang Yichao: The general direction is to cultivate categories and occupy minds with brands.

We will focus on attracting new customers and repeat purchases. In terms of attracting new customers, we conducted a survey last year and found that most of our customers still don’t know about “Kongke”, so our brand is only well-known in some areas and has not yet completely broken through the circle. Therefore, this year we will spend more budget on building categories and brand awareness. At the same time, the differentiation should be communicated to consumers who have already purchased the product.

We will shoot brand advertisements and at the same time conduct cross-border and joint ventures with some brands.

Zhou Lei:

We are also among the purchasing customers who do not understand the brand. This year, we will focus on social media expansion, celebrity collaboration, and product placement in variety shows.

Puxi will invest more in TikTok this year as it is an important growth track. In addition, growth can be achieved through content delivery.

3. What is your prediction for the future of Douyin e-commerce? What role do you play within the company?

Lu Zhu: With 600 million DAU, it is a platform that no one can avoid. We will continue to improve the conversion efficiency of the live broadcast room, and have been optimizing from the level of buying traffic to the conversion "technique". However, we believe that the self-broadcasting model is not a particularly good model. We will invest in Douyin Challenges and other brand promotion activities. We will not completely regard it as a food delivery platform other than Tmall. We will also think about how to improve the brand promotion end through Douyin's content.

Wang Yichao: We view Douyin from the perspective of attracting new users and promoting activation. For attracting new customers, short videos and live broadcasts are more direct and efficient in explaining products.

We view self-broadcasting as a dynamic, three-dimensional details page. For shelf e-commerce, the details page is a one-time investment. However, the investment in the self-broadcasting room continues, and the investment is not low. This is a challenge for our products which do not have high margins.

Douyin is pushed to consumers, and brands have to spend money to purchase it, so the cost of advertising is high.

Zhou Lei: We have high expectations for Douyin. Established its own content team and co-created content with consumers. The short-term input-output ratio has not reached my ideal value, but it is moving in a good direction.

First of all, as a content reach platform, it actually reaps the benefits of selling goods.

4. Traffic becomes more expensive, what is your experience in acquiring customers?

Lu Zhu: It is inevitable that traffic will continue to become more expensive. Traffic is an algorithmic logic, which will not make you a lot of money essentially, and the cost of acquiring customers will always be higher.

That’s why we invest in entertainment marketing whose ROI is unclear. This is truly about building brand awareness. Continue to penetrate the market through branding rather than bidding for traffic through category competition.

So the ultimate solution is to build your own brand power.

Wang Yichao: Traffic was cheap before, but it might not be really cheap because there was a lot of invalid traffic. It is expensive now, but it is not really expensive because there is more valid traffic. Traffic should be judged by its value, not just its price.

What we need to do is that when consumers open Tmall, they already want to buy empty moments, and Tmall is just taking over. We are working more in this direction and doing mental pre-sales. As the saying goes, before consumers go out, they have already decided to buy Coca-Cola, and the supermarket just takes over.

Zhou Lei: The value brought by traffic is not just about sales volume. In addition to sales volume, there are other things it can do. This involves the concept of branding.

If I buy the traffic, I have it. If I don’t buy it, I don’t have it. No one can afford it. The traffic generated by content will generate brand awareness and repeat purchases, so we will weaken the judgment criteria of single ROI for customer acquisition traffic, but instead increase the brand judgment criteria and increase brand attributes.

5. What kind of advice would you give to your peers?

Master Lu: For start-ups, don’t rush to pursue growth. This is a good time to grasp the rationality of the business model. Customer acquisition, repeat purchases, and gross profit. Whether the business model is high-quality is more important than scale. Increasing volume with a bad business model is the wrong direction.

We must work hard to build our organization and culture. Our company attaches great importance to the introduction of talents. Whether you make a little more money or a little less this year, you will pay it back. The results obtained by chance are not long-lasting.

Wang Yichao: Use a form that suits the brand's current stage: It is not recommended to consider loyalty and reputation when there is no brand awareness to solve the brand's current problems. Invest budget early on to build brand culture. Because your influence is limited, your culture is also limited. Because of the current information explosion, every brand wants to talk about culture and values, which consumers cannot accept.

Use marketing media within the company's resources: select appropriate media based on the budget to achieve the most economical results.

Zhou Lei: When running a business, you have to allow yourself to be imperfect. Many companies are facing problems now. I will start by addressing where I am weakest. If the supply chain is weak, we should invest in it and bring it to the average level. But in the breakthrough phase, we must maximize our advantages. When two armies are fighting, if all your indicators are average and you don’t have your own “Mao”, it will be difficult to break through.

You must be clear that you are competitive and have your own breakthroughs and strengths.

7. The pitfalls that online brands encounter when entering the offline market

1. There are several pain points online at present:

1) Traffic is getting more expensive: Not only traffic is getting more expensive, but logistics costs have also become more expensive recently.

2) Low-price competition: Everyone is lowering prices to acquire users and increase GMV;

3) Unlimited competition: Your competitors, hundreds or thousands of them, Tmall and Taobao stores with the same products are all your competitors;

4) Low customer loyalty: Especially those born after 2000, who are very willing to try new things and have no brand loyalty at all

5) Traffic experts start their own businesses: Talents who are good at online work either have high salaries or start their own businesses.

2. Offline opportunities:

Although many stores have closed due to the epidemic, the offline market is still very large. The offline market share is at least twice that of the online market. There are several core points for offline opportunities:

1) Broad market

China has a large population and a huge market, so cities from first-tier to eighteenth-tier cities all have their own living space.

2) Regional barriers

There is a complete Matthew effect online, while offline brands have regional barriers and have never even been heard of in other provinces or online.

3) Limited competition

A 200-square-meter mother and baby store, with one category and 10-15 brands, is the maximum number possible. There are usually only 3-5 brands, so competing with 3-5 brands offline is completely different from competing with hundreds of brands online.

4) High loyalty

For offline purchases within a 3-kilometer radius, loyalty is higher than online purchases.

5) Offline experience

Offline, you can directly touch and experience the products, so the conversion rate is higher.

3. The logic of offline brands:

1) The needs of first-tier and third-tier customers are different

The population of many first-tier cities has entered the fourth consumption era, while second- and third-tier cities are still in the third consumption era, and fourth- and fifth-tier cities are still in the second consumption era. People only buy expensive things with big logos, not the right ones.

The rise of domestic products is not just in Beijing, Shanghai, Guangzhou and Shenzhen. But it is second- and third-tier cities. Data shows that people are more receptive to Chinese culture, and it has always been second- and third-tier cities.

2) Products with high trust costs

It is more difficult to win in the first-tier cities, but it is relatively easy in the third-tier cities because they trust the shopping guides and the display more.

3) The layout and position are more important

Without visual impact, it is easy to be ignored, so we should choose to cooperate with stores that are willing to put us in the spotlight.

4) The salesperson determines the sales volume

A shopping guide is similar to a striker in football. An offline shopping guide can decide the finishing touch of a product. Whether a product sells well offline does not depend on the product’s exposure on Xiaohongshu or Douyin, but mainly on the shopping guide’s ability.

5) High conversion rate of on-site experience

Online, the main comparison is price, but offline, price is not the core factor. Perhaps because of a word from the shopping guide, today's consumers are willing to place an order even if the product only costs a few yuan.

4. Deep distribution, occupy the mind

1) Enough channels

2) The penetration rate is high enough

3) The layout represents trust: either don’t have it, or have a large layout, otherwise there will be no effect.

4) The shopping guide is the finishing touch: The shopping guide’s guidance is very important, otherwise the effect will definitely not be good if he just lies there quietly.

5) Dealers, stores, and shopping guides all need to be taken care of: It is not enough to just deal with the store owner, but it is also necessary to deal with every store clerk. There are so many links, and if one link is broken, it won’t work.

6) Only continuous activities are effective: Offline activities may not be very powerful all at once, but they must be continuous, because offline communication is not as fast as online communication and the transmission efficiency is relatively low. Only continuous activities are effective.

8. What are the private domain operations of long-termists doing?

Sisi, founder of HONI and your pet food

1. Reasons for starting the model:

HONI started out as a group of friends, with just 3 people in the beginning. We are adopting the WeChat direct sales model and doing 0-1. Why do we start like this? Here are a few points:

1. Pet owners currently have four characteristics: young, female, highly educated, and able to pay

2. Raising a pet = raising a baby, with strong social and sharing attributes

This shows that these people have the attribute of sharing, and most of these users are not married and have children yet. They raise pets before raising babies. Therefore, I think the population of people who raise pets and mothers and babies are highly consistent.

3. Rigid demand, stickiness, stability, and high repurchase rate

4. Use personal connections and trust to break the ice of the domestic trust crisis: This industry generally believes that foreign brands are better, and new brands entering the market must first resolve the trust crisis. Therefore, the best way to break the ice is to use your network to build trust in the product through friends.

5. Satisfy users’ emotional and spiritual needs: It is difficult to explore and respond to their spiritual needs if you only use products for short and quick communication.

Therefore, we use WeChat direct sales to build our brand and achieve very good results.

But you have to know that quality is the basis of fission, and fission will not generate compound interest. If the product is not good, you may buy it once for face, but you will never buy it again. Exchanging trust with users is our original intention.

2. Whose needs are we meeting?

Our products are for pets to eat, but the buyers are the owners.

According to Maslow's needs, we can see that safety needs and physiological needs are the needs that pets need to meet.

What HONI sees is that in addition to pet owners, we hope to achieve richer emotional/spiritual experiences/goals through pet raising.

3. Personal IP Trust Empowers Altruism

Everyone needs to inject personal characteristics into the brand. Many dealers may choose to cooperate because they trust the founder, but we hope that our partners can convey trust and interpret the brand story in their own language.

True altruism should not be about lowering prices. We need to use values ​​to guide, the private domain must have a soul, and people are the core of the private domain.

9. How can new brands achieve high conversion rates with low budgets on Xiaohongshu?

Ashe Lemon Republic Co-Founder

1. Strategy: Find the traffic password

As a new brand with a limited budget hopes to achieve the highest conversion effect, we chose koc handheld explosive article delivery. With a small investment, you can achieve a very high return.

2. Find Xiaohongshu experts

1) Brushing: The content that is brushed is generally of higher quality, because the platform will not recommend it because of the fake accounts.

2) Search: Product keywords related selling points: low-sugar drinks, etc. Find bloggers with popular articles and choose them;

3) Copy: Study the influencers of competing products and select suitable bloggers from their influencers

We will not:

1) Reject one-price institutional cooperation

2) Refuse to cooperate with the experts without knowing their details

Formulate screening rules for bloggers:

1) Talents with a cost of less than 1,000 yuan;

2) The explosive rate of handheld content of the same category of products released in the past month is greater than 10%: the keywords are in the same category. If it is an explosive article of a different category, the brand's products may not necessarily become explosive;

3. How to increase the explosive rate and effectively attract traffic

1. Authentically share and co-create content rather than control it

Selling point stacking is not important

Brand exposure is not important

Brand topics are not important

2. Our formula for hits: creative and traffic-generating main image + exaggerated and subjective title + content length should not exceed 10 lines + no more than 2 hard selling points

Not every topic will produce a hit article, but different time periods tend to produce different content. How to discover it specifically? Just brush it more.

3. Heat the fries to give your notes a second chance to explode

• After the note was published, the traffic was abnormal and the French fries tested whether it was illegal.
• Content enters plateau stage, French fries leverage traffic for the second time
• Investing in hot articles that have already been published may bring you surprises

4. Violation risk control, in line with Xiaohongshu's traffic ecology

1) Brand keywords/branded packaging

2) False marketing: efficacy words/extreme words

Our drinks have many vcs that can whiten them, but we don’t say whitens, we can say “will be white”, and we don’t say that the lemon republic will whiten them, but we say that vcs can whiten them. Sensitive words and banned words can be found in the website: http://m.ju1.cn/

3) Restricted marketing: sensitive words/banned words

4) Repeated plagiarism: content with extremely high similarity

Once a blast article appears, similar blast articles can be imitated and copied in batches.

4. Control evaluation

Create a sense of reality and praise, and guide users to place orders

5. Recycling: secondary utilization of content

The content that has been published can be placed in Tmall's comments and is a good review for Tmall

You can also sync to bloggers or organizations to visit