Analysis of social e-commerce marketing crowd trends!

The rise of Pinduoduo, Yunji and others has set off a boom in the social e-commerce industry. Traditional e-commerce is restricted by traffic thinking, and the cost of acquiring customers is rising, making it difficult to expand growth. Traditional physical stores are impacted by e-commerce, with reduced customer flow and declining performance.

New retail connects online and offline, and deeply integrates Skynet and Groundnet; social e-commerce utilizes human network + new retail to form a new business model and ecological closed loop. The new business model must be centered on people (merchants + shopping guides + makers + micro-businesses).

A group buying tool dedicated to monetizing social traffic. After simple configuration, merchants can set up group buying activities on WeChat, allowing customers who have completed transactions to voluntarily forward the activity link to form a group, allowing merchants to quickly seize mobile traffic while obtaining more orders.

Promotion conversion: Solve the pain points of merchants , quickly clear inventory and generate sales, and sales equals profit.

① Start a group/join a group → ② Invite friends → ③ Successfully join the group/ship the goods if full (automatic refund if not satisfied)

How to achieve zero-cost negotiation with supplier products: entry point; Supplier A produces mineral water, with a production cost of 1.5 yuan/bottle and a supply price of 2 yuan. If I sell it successfully, I can earn a product profit difference of 0.5 yuan. Let the supplier provide a bottle of mineral water sample for free, and promise: within 30 days, if this sample cannot be sold successfully, we will pay the supplier according to the supply price of 2 yuan. As a merchant, there will be no loss, which can form a good negotiation entry point.

Target:

1. Attract new and old fans to the platform, cater to fans' price-cutting mentality, and quickly achieve advertising effects at low prices;
2. An interactive marketing tool that encourages old customers to bring in new customers, increases old customers' stickiness to the platform, and uses gift-giving mode to get users to pay.
3. Use WeChat to spread rapidly;
4. The new students to be transformed include, on the one hand, the new students attracted during the summer vacation, and on the other hand, the new students attracted by this activity.

Sharing: (Customers help you sell, old customers bring new customers to join the group purchase, and friendships serve as a trust endorsement for selling products) Place a group purchase order and become a group leader → Share the group information to your circle of friends, and invite friends to join the group purchase → Consumers can choose to join the group and choose the group leader to collect the money or join the group directly.

Commission: (The leader is the group leader, calling on the masses to join the group, the group leader makes extra money and establishes a direct sales platform)
Place an order for group buying and become the group leader → Share the group information to your friends circle and invite friends to join the group buying → After the group is formed, the transaction amount will be returned to the group leader.

1. Outlook on consumer trends

1. Five major drivers of domestic consumer trends can be distinguished:

(1) The offline market is booming: consumer demand in third-tier and fourth-tier regions and below is increasing;

(2) Consumption upgrade and downgrade: The overall situation is still in the consumption upgrade cycle;

(3) Significant changes in population structure: declining birth rate and widening intergenerational gap;

(4) Diversified demands and personalized consumption: Unplanned shopping demand increases;

(5) Brand nationalism: Domestic brands are increasingly being chosen in product categories.

2. Offline market bonus period

Lower-tier cities have a huge population and growing consumer demand, but the penetration rate of online shopping is still lower than that of first- and second-tier cities, and purchasing behavior still relies heavily on offline activities, so there are good opportunities in the short term. The population growth rate and migration direction are still mainly concentrated in first-tier cities and urban clusters.

3. Consumption rise and fall

From the supply chain perspective, in the past few years, the product strategies of mainstream e-commerce platforms have continued to move towards quality and consumption upgrading. On the other hand, group buying platforms have seized the actual needs of offline market users in the past two years and activated the purchasing power of the offline market with the help of social traffic. There is no "consumption downgrade" in the real sense in China. Whether it is the online market or the offline market, consumption upgrading is still a common phenomenon. Both first-tier and fourth-tier cities are increasing spending, including services and physical consumption.

4. Significant changes in population structure

The population has entered a decline cycle, those born in the 1960s have entered a retirement cycle, and those born in the 1990s, who currently have optimistic consumption power, have entered family life. Subsequent personal expenditures are facing a series of pressures, and the trend of family miniaturization is obvious, which has a great impact on traditional retail formats: large-scale family replenishment retail stores are under increasing operating pressure, while small and community formats face better opportunities. Retail formats such as hypermarkets and supermarkets, which are the "main battlefield for replenishment", are gradually declining. The business of convenience stores and community formats that focus on small-scale family services is increasing year by year, and the retail format is experiencing an iteration phenomenon.

The biggest difference between generations of consumers lies in the change in time allocation habits. To a certain extent, the time allocation habits of the post-90s generation are the reason why offline retail is in trouble.

5. The rise of personalized consumption

Consumers in mainland China's cities are ahead of the rest of the world in their pursuit of speed. They often demand instant gratification and fast express delivery. On the other hand, with the increase in per capita income, especially among consumers in first- and second-tier cities, quality requirements are increasing, and the mass products provided by traditional retail channels are difficult to meet consumer demand.

At the same time, unplanned shopping needs brought about by multiple factors such as the improvement of consumption levels are largely met through social shopping scenarios, mainly based on recommendations from friends around. Personalized consumption is on the rise, especially among people in first- and second-tier cities. More than 80% of people gradually prefer to try new products/niche brands in terms of consumption willingness, and the pace of product updates is accelerating. More than 64% of consumers are willing to try new products simply because of the innovative packaging experience.

6. Brandism

As the national economy continues to develop, nationalist tendencies in the consumer field continue to increase; more than 60% of consumers prefer to buy domestic products, and the market share of local brands continues to grow. On the one hand, the reason why consumers prefer domestic products is that the gap between the quality of domestic products and overseas brands is narrowing; on the other hand, the natural emotional and cultural closeness is also an important factor. The emotional support of domestic products is significant, especially among male groups and online cities, where this emotional drive is more obvious.

2. Structure Description

The traditional retail system, which takes "commodities" as the core and "purchase-sales-inventory" management as the dimension, is becoming less and less adapted to the current market development and fails to meet the needs of customer consumption experience and improve merchant efficiency. In the new business era, retailers need a completely new retail system.

New retail takes "customers" as the core and uses the three major business elements of "people-goods-place" as the technical development dimension to fully meet the retail companies' multi-type channels, diversified business formats, diversified scenarios, and social marketing.

Author: Tweezers

Source: Tweezers