How to start private domain marketing? (Case included)

Looking at the development history of the daily chemical industry, giants are quietly entering the DTC layout from micro-enterprises.

In a conversation with the boss of a traditional daily chemical factory, he said:

We used to do OEM for big brands, with annual sales of up to 250 million at our peak. We were very successful in the local area at that time, and our factory was the largest in the area. However, our sales dropped rapidly after big brands started building their own factories in the past two years.

Seeing this trend change, we also started to develop our own brands, but without the Internet marketing gene, nothing came of it. Now we are in urgent need of transformation but can’t find the right direction...

If you have ever attended forums or exhibitions on the "daily chemical living products" industry, you will clearly understand how anxious the owners and executives of traditional daily chemical factories are.

Their anxiety comes from the fact that OEM products have too low profits, and their self-hatched niche brands have no new marketing ideas to quickly expand into the market. Their peers have already started the DTC model that integrates processing and supply to sales. Faced with increasing competition for talent and huge investments in machinery and equipment upgrades, the gap between factories is gradually becoming larger.

In May 2020, the National Bureau of Statistics released the "Total Retail Sales of Consumer Goods", pointing out that the sales of cleaning and daily chemical products reached more than 4.4 billion yuan. From a development perspective, this means that daily chemical products still occupy a relatively important position in the consumption structure of residents, and the daily chemical industry still has room for growth.

As consumers have various problems with their hair quality, skin quality, hair loss, etc., users have higher and higher requirements for daily chemical products. 2021 has entered the era of segmentation and upgrading.

In the context of quality pursuit and innovation and upgrading of digital industries, how can traditional factory enterprises leverage changes in private domain marketing to innovate, preserve volume while building internet celebrity brands and establishing a stronghold?

This article will take a market development perspective, starting from the development history of daily chemical factories to the full-scene of self-built DTC models by leading brands, to analyze the opportunities for building private domain digital growth and user marketing methodology for second-tier daily chemical cleaning and care brands.

01History of the development of daily chemicals at home and abroad

Daily chemicals are not only the fastest growing industry and the earliest to open up to the outside world after the reform and opening up, but also one of the most competitive industries.

Looking back to the 1970s, in general, combined with the development process of foreign daily chemical companies in my country's daily chemical market and their relationship with domestic daily chemical companies, the development of China's daily chemical industry can be divided into four stages:

The first stage: 1970s-early 1980s

Domestic production is monopolized by Shanghai, and local daily chemical brands dominate the market

During this period, many large foreign daily chemical companies had not entered China. The Chinese daily chemical market, which was in the early stages of reform and opening up, was mainly represented by Shanghai. For example, famous brands under Shanghai Jahwa, such as "Herborst", "Liushen", "Maxam", "GUOFU", and "QICHU", occupied a leading position.

Even today when there are numerous daily chemical brands, many consumers still prefer Shanghai brands such as "Meijiajing", "Fenghua", "Haiermian" and "Queen", and some of these brands can still be seen in the market.

The second stage: 1980s-early 1990s

Foreign daily chemical companies are competing for the Chinese market, and Chinese and foreign daily chemical brands are clearly divided

After the reform and opening up, my country's daily chemical industry was fully opened to foreign investment, and many foreign daily chemical companies entered the country. This was also the stage when international giants entered the local development in a strong way.

At that time, it posed a strong challenge to domestic brands. Japan's "Seishindo" was one of the first representative companies to enter my country's daily chemical market, mainly selling products through offices.

Soon after, Procter & Gamble and other companies began to become the first daily chemical companies to register and build factories in my country. However, at that time, domestic daily chemical companies still had not had a head-on confrontation with foreign daily chemical companies, and each occupied a piece of the market. At that time, representative domestic brands included Dabao, Huoli 28, Nanyuan Yongfang, Meiji, White Cat, Langqi, Panda, Xiafei, etc.

During this period, the channels for daily chemical products were limited to wholesale companies or department stores. Dealers were accustomed to waiting for products to come their way, and the market was in the primitive stage of "buying whatever was available."

In the early 1990s, the target groups of foreign-funded and domestic daily chemical products began to differentiate, but during this period, domestic brands also achieved greater success in niche areas.

From 1990 to 1996, the daily chemical market underwent major changes. Among them, there are two brands that deserve people's attention in China in its development history, namely "Vitality 28 Group" and "Liby Group".

It was rated as "the most popular consumer product in the country" for eight consecutive years. It was also the first company to advertise laundry detergent on CCTV and the first company to put up billboards in Hong Kong and mainland China's daily chemical industry.

At that time, Shashi Daily Chemicals pioneered the sponsorship of the Hubei Football Team by paying a sky-high price. In 1996, Vitality 28, which was trying to go public due to its blind expansion, signed an agreement with Germany's State Features.

As the major shareholder of the jointly established "Hubei Huoli Meijieshi" detergent brand, the German party did not implement the agreement in accordance with the provisions. Instead, it shelved the "Huili 28" trademark and promoted its own "Qiaoshou" brand series products on a large scale.

Ultimately, due to failed strategic decisions, "Vitality 28" basically faded out of the Chinese market. Although a Chinese company successfully repurchased the Vitality 28 trademark seven years later, it was too late to turn the situation around.

《Mergers and Acquisitions at Each Stage》

By 1996, the market structure of Chinese and foreign daily chemical companies in China had gradually changed dramatically. Germany's large-scale capital investment set a precedent. After that, well-known foreign Japanese companies continued to enter the country, such as Johnson & Johnson of the United States, L'Oreal of France, and Olay of the United States. From then on, the marketing war of daily chemical products in my country really began.

These target groups are basically high-income women, so the product prices are very high. At the same time, American Amway, Avon and other companies have brought the direct sales model to China and achieved many results in daily chemical products.

At this time, the domestic market has the fastest growth momentum in Guangdong, so during this stage, foreign daily chemicals focus on high-end, while domestic ones focus on mid- and low-end.

The third stage (1990s-early 21st century)

Domestic daily chemical products have begun to break through, and market segments have become increasingly professional.

Since 1996, China's daily chemical products have come into direct confrontation with foreign ones. Among them, Diao Pai laundry detergent, Shu Lei shampoo, Liangmianzhen tea tree oil soap and others were the first to break through the foreign investment defense line. Domestic daily chemical companies began to continuously impact the encirclement of foreign daily chemical companies.

Liby Group (Liby), founded in 1994, was an important watershed in the life of its founder Chen Kaixuan. That year, he and his two brothers came to Guangzhou with five people and founded Guangzhou Liby Detergent Co., Ltd. They rented three offices in Guangzhou Development Building on Lujing Road, working during the day and sleeping on the floor at night.

In 1996, by chance, Xu Xiaodong joined Liby Group as secretary to the then general manager. As the company had few employees, Xu Xiaodong took on several duties, running both marketing and administration.

At the beginning of his business, Chen Kaixuan did not have a lot of capital to build a factory, nor did he have technical and professional talents. His only advantage was his familiarity with the sales channels of laundry detergent. In today's fashionable terms, this is called light asset operation, and its essence is "private labeling and laying eggs by borrowing chickens."

In order to survive in the cracks, Chen Kaixuan took a decisive move to "avoid big cities and focus on the sinking market."

He identified the weak links of big brands at the time due to limited energy and unfamiliarity with the local environment, and made prices more reasonable while ensuring quality. At the same time, Chen Kaixuan was bold in innovation in marketing. He never looked for local department stores but instead for individual distributors with a reputable and strong sales network, and he also stepped up advertising and marketing efforts.

Then each region selected a company to do wholesale sales. By 1997, Liby had become the "boss" of Guangdong's laundry detergent industry in just three years.

However, during this period, domestic daily chemicals began to enter a period of segmented growth, such as adding anti-static and anti-virus functions to laundry detergents, and adding whitening, sun protection, acne removal and moisturizing functions to skin care products. At the same time, domestic daily chemicals sought new opportunities in the professional and functional markets.

The relatively successful brands at that time included Ding Jiayi, Dabao, and Lengshenling. During this stage, Chinese, foreign and Japanese companies mainly competed in sales channels, and there was little market overlap, so large-scale competition among daily chemical brands had not yet formed.

《Market Performance of Each Enterprise》

The fourth stage (early 21st century-2015)

Chinese and foreign daily chemical companies entered each other's markets, and competition among daily chemical brands began.

Entering the 21st century, foreign daily chemical companies not only focus on the high-end market, but also open up to attack the domestic mid- and low-end markets.

During this period, Avon acquired the daily chemical brand "UP2U", France's L'Oreal acquired the domestic daily chemical brands "Yue Sai" and "Little Nurse", Shanghai Toothpaste Factory (Zhonghua Toothpaste) was acquired by Unilever, and Hubei Sibao Group (Shu Lei, Fengying, Meitao) was acquired by Germany's Beiersdorf.

Japan's Senshindo even purchased "Aupress" and then launched the mid-to-low-end brand "ZA". At this time, China's daily chemical industry was in a situation of large market share and small profits, so it turned its attention to high-end daily chemical products in the hope of gaining greater profit margins.

At that stage, Liby re-determined its development strategy and expanded its business in related fields of the daily chemical industry.

In 2005, Liby acquired and reorganized Lantian Liubizhi to enter the oral sector. In July 2006, it acquired and established Shanghai Gaozi Cosmetics Co., Ltd. to enter the cosmetics sector. Only then did Liby's "big daily chemical strategy" take shape, covering nine categories and hundreds of varieties.

During this period, Shanghai Jahwa also re-launched the high-end brand "Herborsist" series, and Shenzhen Lisda Company focused on operating the "Lange" brand.

Due to China's efforts in operating in the high-end market, foreign countries have begun to view China's daily chemical industry as a competitor, and domestic companies are no longer willing to stay in the middle and low-end markets. Around 2015, the "brand war" between China and foreign countries began.

02 Channel diversification and the rise of niche brands

Before 2000, the main sales channels for daily chemical products were department stores, small and medium-sized supermarkets, beauty salons, drug stores, and television shopping. However, department stores and supermarkets were not well developed, and large companies could only engage in distribution and wholesale in the form of branches or offices.

Looking back at history, many domestic daily chemical brands were mainly concentrated in rural areas surrounding cities. Even in the supermarkets and department stores in mainstream first-tier cities, domestic brands could not be found at all. All of this was linked to the changes in media channels.

Media evolution leads to “channel diversification”

Before the emergence of modern communication studies, "communication" and "transportation" were essentially the same term, that is, communication was a sub-concept derived from the concept of transportation. Channel agency, in the final analysis, was "the mismatched exchange and circulation of personnel, materials and information."

The trajectory of transportation progress can be seen at every stage of our development. Transportation is essentially a traditional form. Transportation technology determines the cultural scale of human history and affects the mutual connection and communication between cultural circles. Therefore, road communication is also an important aspect of the overall historical process.

American scholars believe that "changes in the form of communication media" are usually caused by the complex interaction of perceived needs, competition, social pressures, and technological changes.

New media does not emerge independently, but rather emerges from the evolution of old media. Old media does not die after the emergence of “new media”, but rather adapts and continues to evolve.

A biography of Tencent covers 20 years of changes in Chinese social networking, and a history of Sina covers 20 years of Chinese media transformation. The similarities between the two are that both social networking and social media have fundamentally changed people's way of communication and "consumption", and also changed the way media and corporate brands reach users.

The evolution of media also represents the transformation of the daily chemical channel retail industry. Tsinghua University professor Li Fei said in "The Third Retail Revolution: Embracing Consumer Sovereignty":

The first retail channel revolution was when Walmart founder Sam Walton (March 29, 1918 - April 6, 1992) launched a global ground-connected chain store revolution. Domestic innovators included Suning, Gome, CP Lotus, and the subsequent Miniso and KK Pavilion.

The second retail revolution was the e-commerce revolution launched by Jeff Bezos (1964-), the founder of Amazon, which was based on PC Internet technology. China’s Tmall and JD.com are the innovators of domestic retail.

The media changes in this era have also brought many opportunities to e-commerce companies, such as the early shopping guide e-commerce companies Mogujie, Jumei, and Zhe800.

It was not until the end of PC and the emergence of mobile phones 4G that the rise of Inke, Xiaokaxiu, live streaming, and Pinduoduo on WeChat were derived one after another. Media channels led to the explosion of daily chemical products from domestic niche factories, and OEM niche models also emerged by taking advantage of the evolution of media in different periods.

It now seems that offline channel terminals are saturated while online channels have become diversified, because domestic infrastructure has been completed and PC+mobile traffic has reached all Chinese users.

"Media in the midst of media change"

Channel diversification improves transaction efficiency

The core of business is how to trade with others. Trading is the essence. From an economic perspective, all products used for transactions are called commodities. Once commodities are circulated, transaction costs will be generated. In order to reduce transaction costs, media are used to reduce "transaction costs".

This includes "search costs". For example, if consumers want to buy an LV bag, they used to have to go to a physical counter store, but now they need to do it online (Tmall and JD.com). E-commerce has increased efficiency by half.

The second is “comparative cost”. Users do not know which store’s products are genuine, so flagship stores appear to provide credit endorsement.

The third is the time cost. If you buy a pair of shoes in a physical store and are not satisfied with them, you need to go to the store again to return them, but with the credit endorsement of an online platform, you can refund them instantly.

Fourthly, transportation cost. If you make a skin care product, the product will still be sold to the general agent, provincial agent, municipal agent, and then to the consumer. In today's market, it will be difficult for your product to penetrate the market and will be eliminated.

Therefore, the essential change of the media is to solve all "transaction efficiency" problems, make channel commodity prices more open, and allow users to buy cost-effective commodities with low premium space. This has also caused the fourth retail channel revolution.

The article "Artificial Intelligence, the Soul of All Things" says: "The era of consumer sovereignty has arrived, consumer democracy, consumer freedom and consumer equality" are no longer slogans.

The fourth retail revolution has arrived, triggered by the saturation of Internet growth and the massive rise of the SoLoMoMe consumer group (social, local, mobile, Me).

Along the way, we have seen changes in customer relationships, such as from mass economy to fan economy, business model from B2C to C2B and C2M, DTC model, the format revolution from retailers' physical stores and online stores to consumers' personal stores, and the channel revolution from single channel and multi-channel to omni-channel.

03 Incremental saturation, seek existing market

As the incremental market for daily chemical products (cleaning and care products, shampoo, laundry detergent) becomes saturated, user choices are becoming more diverse based on function, brand power, and demand. Therefore, after users consume a certain product, the most reliable way of operating is to retain users for a long time and transform them into a fan economy.

So how can we retain users?

The best way is to directly reach users on social networks and establish relationships with them. This is also the only way for domestic daily chemical products. I summarize it into two aspects: the first is to establish a DTC model, and the second is to build a good content distribution matrix for the brand.

What is DTC mode?

The DTC model originated in the United States. According to foreign media reports, Unilever acquired the British snack brand Graze in February 2019. The transaction price was approximately 150 million pounds (approximately RMB: 13.478 billion). It can be seen that the ambition and layout of this model will cause huge changes in the entire domestic market in the future.

The core of DTC means that the brand interacts with consumers directly through the official website channel (in foreign countries, it is a website or its own APP, and in China, it is a closed-loop matrix of Moments, mini-programs, corporate WeChat, communities, and public accounts within the social ecosystem) without going through distributors or intermediary platforms, so as to achieve the effect of converting social growth and reduce advertising investment costs.

Heytea’s 2020 annual sales report pointed out that data on consumer insights, taste preferences, etc., which originally had to be purchased from third-party channels at a high price, can now be directly collected by storing “consumers” in its own mini-programs.

Providing users with a way to purchase without going through third-party platforms such as Meituan, Ele.me, and Dianping, which is one of the applications of DTC.

There are many domestic players that are also undergoing transformation, such as Perfect Diary, Flower Fairy, Yuanqi Shenlin, Su Shi, Nike, Adidas, Jack Jones, Anta, Xiaomi, Want Want, Megale, etc. They can maximize their product channels without participating in investment exhibitions.

《Comparison between traditional brands and DTC models》

So why do we need to adopt the DTC model?

Online, we are looking for more platforms such as "JD.com, Tmall, Pinduoduo, Xiaohongshu" to join.

If we follow this line of thinking, it is not difficult to find that most of the money has been invested before the goods are sold, and data research shows that the commission rate of many domestic e-commerce platforms is not low, and expensive promotion costs are also required.

For consumers, which channel platform to buy from is not the biggest obstacle in decision-making. As long as the price is right and the product is guaranteed, it is not impossible to buy through the brand’s own channels.

Secondly, for brands, the products scattered in each channel need to be managed and operated by someone, which costs the company a huge amount of money.

If the products can be aggregated and presented on the official website of the own brand (official account, mini program, video account website, etc.) in the WeChat ecosystem, it will also provide consumers with a better experience and make it easier to form loyalty.

The DTC website (www.pantryshop.com) under the Best Inc. is currently using this model. In order to create a promotional effect, various products are combined into "gift packages". Consumers can choose to subscribe according to their own needs and purchase them in the cheapest way.

From the perspective of marketing strategy, since TOC is directly facing consumers, the brand itself is responsible for marketing promotion and shaping, so it does not need to focus on paying promotion fees to third-party platforms, and it does not need to create its own official website according to third-party standards. It can be designed according to the brand tone. Obviously, this can be achieved in China, such as using SaaS.

Why do we need to create a content matrix for our brand?

In the social era, the essence of media is information. Brands are no longer based on the shelf mentality of the 20th century, where they are placed coldly on the shelf and wait for consumers to choose. Companies need to empower their "culture", "content" and "stories", which are also the social language that consumers value.

On the one hand, brands create content matrices for the purpose of "distribution in the public pond", such as using social media such as Toutiao, Baijiahao, Video Account, Xiaohongshu, Bilibili, etc., and on the other hand, it increases the social distance with users.

In terms of content output, the tone of the former depends on the brand value proposition, while the latter is to guide consumers, KOLs, and KOCs to distribute content on other platforms.

Zui'e Niang is a typical case. It adopts three commercialization models: self-operation, exclusive agency and agency. It produces professional red wine content in the form of IP, which makes it easy to understand and is also very suitable for reference and selection by niche Internet celebrity brands in daily chemical products.

So how do major daily chemical brands create content?

I can summarize it in five words: "high frequency of activities". The activities here should be content activities. For example, on Mother's Day, we should create family-related content as much as possible, allowing users to participate in complete specified actions, such as "going to Xiaohongshu and Weibo to check in on topics", and enjoying surprise product packages.

Content is an ongoing process that requires different ways of interacting with users. It is not impossible to add offline scenarios in appropriate cycles, such as "pop-up stores", "joint music festivals", "check-in challenges", etc.

Whether it is content or DTC model, it is definitely not a simple strategy. It is an innovation at the brand strategy level of advertisers. To be successfully implemented, technology, sales, marketing, data and operations must be coordinated. How can we do it at a low cost and be successful? In fact, there is a clever way to do it.

04 DTC cold start, closed-loop growth flywheel

The prerequisite for DTC is to play with users. The core battlefield of users is the WeChat ecosystem, so daily chemical brands (cleaning and care products) can start from the WeChat ecosystem.

The first step to retain users in the private domain closed loop and find the right entry is to use the "tool selection" to guide them to add corporate WeChat.

Using WeChat for Business to achieve fission is, on the one hand, convenient for subsequent marketing promotion within the DTC model and secondly, for quickly reaching users. So how can we use WeChat for Business to complete a friend growth activity and thus form a flywheel effect? This involves four aspects: event planning, attracting new customers, designing interest points, and execution.

Liby DTC launched (starting from 0 and growing by 10,000 people in 3 days)

In March, the Liby (Li Lejia) brand planned an event with the theme of "Fan Pampering Festival" to guide users to add the company's WeChat, and chose Hunan as the location for a small-scale test.

This is also the first time that Liby Group has entered the private domain marketing after observing the DTC model. The tool chosen is Weisheng SCRM. The activity effectively increased the number of friends by more than 20,000, and the number of friends in the Taskbao fission activity increased by about 155%. The entire activity lasts for 1-3 days.

There are four main dimensions:

1. Design products with the theme of Fan Festival for free

2. Offline store headquarters dispatch shopping guides to enter the store to guide and introduce activities

3. Perfect SOP script

4. Push activities on various social channels of the official account

The team consists of about 5 people who are responsible for the entire process, including fission activity planning, poster design, copywriting output, business docking and subsequent operation and maintenance.

It is revealed that Liby will test the private domain again on May 20th in a joint venture with Weisheng SCRM. This time, the efforts will be increased by increasing cash red envelopes, the number of offline supermarket shopping guides and interactive lucky draws. At the same time, group buying will be added during the event, and the estimated number of users is about 20,000.

From the perspective of the WeChat ecosystem, the entrance to the DTC model for daily chemical product design is not simply “guiding users to add corporate WeChat.”

Its Liby official account has also added interactive games. It is a closed loop that integrates mini-programs + flash communities + corporate WeChat + official accounts + video account activities. The flywheel of this closed loop is "activity", and the entrance is obviously also an activity.

The intensity and frequency of activities (content + products) directly depend on user participation and repurchase rate. If Liby can analyze users' "distribution area, age, and attributes" through mini-program data analysis during this stage, it can then organize brand-related "city flash mobs" and "offline theme activities" around users.

For example, campus marketing competitions and handicraft festivals for 10,000 people can further socialize brand fans and shape young people’s cognition. In the future, such barriers will not be surpassed by competitors.

《Brand flash mob, socialize with users》

Danone Private Domain DTC Launched (20,000+ SPCs, 300+ Core Shopping Guides)

Products under the Danone Group, a diversified multinational company in Paris, France, are also actively building a DTC model and starting from the private domain.

Danone established a shopping guide + shared shopping guide SPC (process control) group model through Weisheng SCRM to expand the number of stores and core shopping guides in order to increase Danone's purchase order volume and channel stickiness in China.

By using WeChat for Business to consolidate private domains and centralized management, we eventually achieved the goal of 20,000+ SPCs and 300+ core shopping guides/stores. This is just a trial run.

In the early years, Danone has created a mini program "Danone Fan Club" around "fans + products", which not only has a sign-in points system for users, but also presents a closed loop in setting up welfare points.

With a complete content system and sound mechanism, Danone is relatively mature in SPC supervision and group activities.

The overall rhythm is to set theme activities, magnify interest points, have store guides guide customers to add the company’s WeChat account to the social group, announce product discounts and policies, and actively sell through promotional methods, from early testing in one province to a nationwide step-by-step launch, and finally the line of operation and maintenance forms a standard SOP.

In the active social segment, Danone added social mini-game activities to improve conversion rates. Judging from the layout of the mini-programs, the co-branded IPs Liu Haoran and Ouyang Nana further increased the stickiness with fans.

Users can not only play games in the community but also jump between mini-programs, directly forming a mini-program matrix from the Danone Fan Club to the Nutrilon Mom Club, the Mei Ma Member Center, the User Check-in Challenge Points Center, the Pulse flagship store, and the Evian flagship store.

I have personally experienced very high stickiness in one of Danone’s corporate WeChat activity communities. I believe that its advantages lie in “ fan games, points check-ins, and continuous benefit points for users ,” which is also an aspect worth exploring for many daily chemical brands in their private community development.

The success of many emerging DTC beauty brands on the market has driven the popularity of this model. In fact, not only large companies are making plans, but small and beautiful brands are also gradually entering the consumer's field of vision through social media and WeChat ecosystem.

Therefore, in the process of building DTC, daily chemical companies also need to have more popular products, high-frequency repurchase, and high-profit products to attract user retention , otherwise it will be difficult to break through in the fierce environment.

05 Consumer full-link life cycle design

Attracting users to add corporate WeChat is only the first step in DTC. Setting up the user life journey is actually a big deal. If it is not done well, the churn rate will be even higher. After all, corporate WeChat does not currently have the capabilities of personal WeChat Moments and all the other capabilities. It is more like a business social network.

User classification, point system subscription system, create KOS

How to classify users? Based on the empirical methodology of operating with millions of users, daily chemical brands can transfer C-end users to "subscription paying members" through basic mechanisms.

From the operational marketing perspective, by adding a membership day every month and designing a points system and medal system for members, the operations team can then design a series of related gameplay around "subscription membership."

This not only includes product consumption but also user-generated content, such as creating a "mini program exchange community", "open product trial", "product tasting group", "product fan meeting" and other activities for users to build a brand value network.

When a daily chemical brand has enough hardcore fans, they will become its own KOS. By setting up a relevant online distribution agency mechanism, your flywheel will be infinitely magnified. Not only can they bring goods, but they can also develop new products based on the accumulated data.

L’Oréal Paris launched five beauty KOS in 2016, focusing on the vertical field. Although these beauty bloggers are not big traffic Vs, through their recommendations in just a few months, True Match became the best-selling foundation in the UK.

In the early stage, Adidas used opinion leaders around everyone in the dark social field (WeChat, email, incognito browsing) to subtly influence potential consumers.

Currently, we have established long-term cooperation with more than 2,000 opinion leaders in the private sector, covering nearly 15 cities. All these private domain mechanisms can be innovatively replicated in the social field of daily chemicals.

Offline brand study tour + factory traceability to cultivate fan groups

Nowadays, many daily chemical brands (cleaning and care products) do not invest too much in offline modules and user stickiness, on the one hand unconsciously and on the other hand because they think it is not important.

In today's digital construction, offline operations are actually a huge advantage for factory brands. Liby is a typical case in 2020. According to statistics, it broadcast nearly 8,000 times in total, with more than 1,000 cooperating anchors, bringing in sales of more than 2.5 billion.

In addition, Liby also held the "Strongest Sales Officer" event, and ultimately selected 50 anchor contestants who had the opportunity to visit the company's factory. This was an invisible promotion for the brand content side.

Let the KOS and KOLs cultivated through private domains participate in the factory traceability tour as representatives to experience the culture while allowing consumers to have in-depth brand awareness and form long-term ties. Social e-commerce in the past few years has played this model to the fullest, and this is also a model that daily chemical brands can learn from.

Going back to the source, offline study tours can greatly shorten the distance between consumers and brands in a novel way. If relevant commendation conferences are held every year around KOL and KOS, it will give it additional meaning.

Xiaohongshu and Bilibili will send invitations to high-quality KOLs on their platforms at their annual conferences every year. In today's era of new consumption, consumer relationships are more important than positioning. It is time to abandon the traditional traffic thinking and truly cultivate user thinking. The essence of the relationship from fans to friends is not upgrading, but iteration.

In the field of consumer relations, operating and activating brand users is still a huge amount of data. After more than 10 years of development, social media has slowly entered a period of rise and fall. The way daily chemical brands use the corporate WeChat portal to scale up and systematically accumulate users is essentially a change in the media method of the great era.

Allowing millions of added friends to establish relationships with the brand, once they transform from public fans to private friends, may be the beginning of real change.

In conclusion:

This is a good era, and opportunities are reserved for corporate brands that know how to manage users.

This is a bad time, and opportunities are passing by companies that are not user-centric.

In the future, shopping in supermarkets will be more lively. During promotions, each brand will add shopping guides and guide customers to add corporate WeChat to consolidate the private domain ecosystem. By establishing a DTC model, it will ultimately cultivate stickiness online, increase repeat purchases, and form a moat.

Some key data references:

1. State Administration of Radio, Film and Television: Analysis of total retail sales of consumer goods

2. HowNet: Research on the Development Strategy of China's Daily Chemical Industry Part 1 (Development History of China's Daily Chemical Industry)

3. Yan Yanchun: Artificial Intelligence, the Soul of Everything

4. Unilever spent 1.3 billion on the layout, Yuanqi Forest and Heytea are also doing it, how attractive is the DTC model?

Author: Wang Zhiyuan

Source: Wang Zhiyuan (Z201440)