Analysis of Watsons Mini Program Operation System

Mini programs that can connect online and offline businesses are favored by more and more companies and have become a powerful driving force for corporate development. This article takes Watsons as the analysis subject, conducts user analysis and competitive product comparison, introduces the advantages of mini programs, and gives suggestions for operational improvements. It is recommended for students who are interested in mini program operations .

1. Overview of Mini Programs

In 2018, Watsons began to actively promote the "O+O" strategy, committed to achieving a seamless integration of online and offline, breaking the somewhat single connection between traditional offline stores, shopping guides and consumers.

The Watsons Mini Program is the online carrier of the O2O new retail strategy. Combining the matrix of corporate WeChat + official accounts + other mini programs, it has successfully resisted the impact of the epidemic on offline business, achieved digital transformation, and seamlessly integrated online and offline.

Statistics show that Watsons Mini Program achieved sales of over 1 billion in just 10 months after its launch! Its strength lies in the fact that it transforms stores and e-commerce warehouses across the country into "forward warehouses", connects product inventory and membership services, and provides online shopping guide services. "Cloud Shopping at Watsons" allows consumers to enjoy a community-style, ultra-convenient shopping experience.

2. User Analysis

1. General Overview

Watsons has more than 4,000 stores and 160 million users, mainly targeting female users aged 18 to 45, covering 90% of urban women aged 18-45 in China. Its vertical fields are beauty and skin care + health care products + a small number of household daily products.

2. Gender distribution

Note: Data source: Analysys Qianfan, Watsons app data

Watsons users are not all female. Male users still account for about 30% of the users, with female users accounting for 69.6% and male users accounting for 30.4%.

3. Age distribution

They are mainly women between the ages of 24 and 40, with the largest proportion being those aged 24 to 30 (born after 1990), accounting for 60%. The proportion of users under the age of 24 cannot be underestimated, and the proportion of Generation Z users continues to increase.

4. Regional and urban distribution

Note: Data source: Analysys Qianfan, Watsons app data

City distribution: Mainly in first- to third-tier cities, with first-tier and new first-tier cities accounting for a total of 41.6%, followed by second-tier cities accounting for 23.9% and third-tier cities accounting for 22%.

Geographical distribution: Mainly concentrated in more developed provinces, such as Fujian, Guangdong, Shandong, Zhejiang, Beijing, Hebei, Sichuan, Chongqing, Yunnan, etc.

5. Spending power

Watsons consumers are mainly middle-class and above consumers, with middle-class consumers accounting for 37.5% and high-class consumers accounting for 25.5%. It can be seen that Watsons consumers have a certain level of consumption and consumption capacity.

Note: Data source: blueMC Watsons Weibo fan analysis

Analyze keywords: "Watsons, buy, skin care"

Content preference: Likes content about good things, recommendations, food, skin care, etc., likes shopping on JD.com, and most of the brands mentioned are first-tier super brands. They have a good taste for life.

6. Sources of Watsons Mini Program users

Offline store BAs, official accounts, corporate WeChat, communities, etc. are generally loyal users of Watsons. Describe the users in one sentence: Mainly women aged 25 to 40, concentrated in first- to third-tier cities, with a medium or above consumption level, who pay attention to good things, food, beauty and skin care, and have high demands on life.

3. Analysis of the advantages of mini programs

Since the launch of Watsons Mini Program, it has achieved remarkable results, the most representative of which are:

① 10 months after launch, generated 1 billion in sales;

② Ranked among the top 50 online mini-programs and the top 1 in the beauty and personal care category;

③Selected as an excellent case in the Aladdin Research Institute's Mini Program White Paper, and won two honors at the 2021 Aladdin Magic Lamp Awards: "Best Brand Enterprise Mini Program of the Year" and "Best E-commerce Mini Program of the Year".

Therefore, Watsons Official Cloud Store Mini Program leads its peers in the field of e-commerce mini programs and has outstanding advantages over competing products.

Personal analysis has the following advantages:

1. Cloud store model breaks through the limitation of limited SKU booths in stores

The "cloud store" model breaks the limitations of time and space, uses the system to move chain stores online, and makes all the business of offline chain stores online (also known as cloudization) and marketing socialized, realizing intelligent order fulfillment. We then use various methods such as shopping guide social retail, live streaming marketing, etc. to provide services to increase revenue.

The cloud store connects offline and online businesses, and needs to carry multiple businesses such as shopping malls, stores, shopping guides, in-house purchases, distribution system businesses and membership businesses, and is connected to multiple enterprise systems. In this way, all stores can put all the company's own products on the shelves, making up for the disadvantage that general physical stores can only accommodate some SKUs at most.

In Watsons' "cloud store", customers are no longer faced with store websites or robots, but rather one-on-one communication and service from exclusive beauty consultants. "Cloud Store" adopts advanced "omni-channel order fulfillment", and its order fulfillment methods include: online delivery, store pickup, store transfer and delivery, and store flash delivery.

Consumers can take photos of the products they need and send them to their exclusive shopping guide, who will then push the corresponding orders. After the user pays, the system automatically matches the nearest store to initiate delivery, and the goods are delivered to the consumer in about 30 minutes, which is convenient and easy.

Watsons can use the geographical location of various online order sources such as "cloud stores" and the advantages of its offline stores across the country to adjust goods nearby. It has achieved home delivery of goods within 1 hour after consumers in 480 cities across the country place an order.

2. The forward warehouse has advantages in distribution and strong fulfillment capabilities

In 2018, Watsons and Tmall cooperated to establish the "Scheduled Delivery" service; currently, "Scheduled Delivery" has covered many cities across the country. With the in-depth cooperation between Cainiao and Watsons Tmall flagship store in the logistics supply chain, the scheduled delivery service is expected to cover 3,000 stores in 300 cities across the country.

Services include:

① There is no shortage of goods in the city for urgent delivery. Place an order at Watsons Cloud Store and nearby stores in the city can quickly deliver goods to consumers.

②Support online ordering and offline pickup.

③Hands-free delivery at home during shopping. After placing an order at an offline store, delivery can be arranged to your home without having to pick up the goods while shopping.

④ One-hour lightning delivery. Watsons can use the geographical location of various online order sources such as "cloud stores" and the advantages of its offline stores across the country to adjust goods nearby. It has achieved home delivery of goods within 1 hour after consumers in 480 cities across the country place an order.

⑤ Provide services to customers online. Customers can enjoy comprehensive consulting services, online reservations and other preferential rights in Watsons Cloud Store.

⑥ Watsons Cloud Store also supports ordering at place A and picking up at place B, so you can travel light when you are on business or traveling. For example, if you find that you have run out of toothpaste while brushing your teeth, you can place an order at Watsons Cloud Store and it will be delivered within half an hour.

3. UI+ visual design is youthful and trendy, fitting in with and highly penetrating the young groups

The overall UI+visual design of the Watsons mini program reflects a trendy style with rich colors, high contrast, and high creativity. It fits the design aesthetics of contemporary young people, has a strong recognition, is youthful and trendy, and is in sharp contrast to other mini programs.

4. Brand + social marketing to extend user life cycle

According to the Aladdin Mini Program White Paper, the high penetration of Mini Programs in netizens' lives has made it a "standard feature" in daily life.

Among them, users aged 18 to 29 account for a total of 35.4%, and the proportion of young groups continues to increase. Mini programs are reshaping the consumer ecological life with young groups as the core.

The virtual idol "Qu Chenxi" and the cloud-raised pet "Qu Qimao" launched by the app continuously improve the two-dimensional and cute index of the mini program, creating a more dynamic social interaction for young people. At the same time, corporate WeChat and communities are used throughout multiple scenarios such as users' work, life, and vacation to unleash the brand's social marketing capabilities and effectively extend the user life cycle.

5. Systematization of operation strategy, covering new customers, activation, conversion and retention

(1) New customer acquisition operations

Cooperate with store BA, corporate WeChat, official accounts, communities or other media matrices to direct traffic to the mini program. On the mini program side, there are also 1 yuan group purchases, 0 yuan trials, rebates and other forms of promotion to attract new users.

Key features: One yuan is worth it

1 yuan is worth it: start a group/join a group with 1 yuan - invite friends to help (attract new members) - get coupons - enjoy discounts after coupons.

Advantages: It attracts new customers while promoting the sales of popular products. Give away part of the profits to stimulate old users to share and invite new users to place orders. Leverage one user, attract multiple users, facilitate multiple orders, and increase sales.

(2) Promoting operations

Activities such as daily sign-in to receive red envelopes, petting cats, community recommendations, scheduled coupon grabbing at the coupon center, daily promotions, and 0-yuan trials promote the daily activity of the mini program.

Key features: Daily check-in, cat-stroking, content community

Daily sign-in: guide users to sign in daily to receive red envelopes for discounts, and increase the number of active users of the mini program.

Qulumao: It takes into account both activation and retention functions, and also undertakes part of the task of attracting new users. Not only can you pet cats in the game, but you can also accumulate love by completing tasks and redeem gifts, such as discount coupons, free shipping coupons, merchandise, etc. At the same time, some tasks in the game have a limited number of play times and require the help of friends to ensure the retention of old customers as much as possible and to achieve rapid fission.

Content community: There is a content community section on the homepage, which is used for users to recommend good products, accumulate user content, and form product reputation. This feature is also helpful for the activeness of loyal users.

(3) Conversion operations

The main functions include first-order conversion (100% cash back on the first order), daily promotions, large coupons, discounts on good products, capsule machines, etc.

Key features: cash back on first order, large coupons, etc.

100% cash back on first order: New users who place their first physical order will receive a 50%/60% discount coupon on the entire site. Encourage new users to place their first order and at the same time give out store-wide coupons to promote second-time repurchases.

Large coupons: By distributing limited large coupons at regular intervals, users can feel that they have earned something, which encourages them to place orders.

Gachapon machine: Users who place an order and pay a total of RMB 159 or more can participate in the Gachapon machine lottery, which includes physical prizes and venue-wide coupons. Users have a high chance of winning venue-wide coupons, which can further promote repeat purchases.

(4) Retention operations

The main functions include membership center, cat petting, sign-in to receive red envelopes, community promotion and other functions to promote retention.

Main functions: Member Center, Qulu Cat

Member Center: Through the paid membership cards of black card and green card, users can be bound to become loyal users of Watsons. Member privileges include preferential prices for goods, discounts on purchases over a certain amount, free third-party membership for card application, multiple points, exclusive services (regret medicine, free trial bottles, free professional beauty, free skin evaluation), etc.

Cat petting: daily cat petting tasks to stimulate retention.

Sign in to receive red envelopes: Sign in to receive large coupons for the entire store, which promotes activity and retention. Coupons also stimulate repeat purchases.

6. Systematization of people, goods and venues

People: Watsons focuses on segmented vertical categories, has clear user labels, and has a stable source of user traffic. Users have an urgent need for daily products such as beauty, skin care and health care.

Goods: After years of polishing, the products are highly matched with users. The number of SKUs in the mini program is not restricted, and the offline stores have sufficient supply, complete categories, and price advantages. Mini Programs have sufficient guarantees in the supply chain.

Field: After years of cultivation, users have developed the habit of online shopping and are no strangers to the O2O model. The mini program has mature transaction scenarios and perfect operation strategies, which can effectively promote user consumption. In promotional activities, there are sufficient channels (official accounts, messages, corporate WeChat, and communities) to reach users.

4. Comparison of Competitive Products

This article compares the online mini program of Watsons with similar offline stores to compare the advantages and disadvantages of Watsons mini program and areas for improvement. The comparison results are as follows:

Comparison summary of competing products: Watsons Mini Program has complete marketing functions and a richer range of operational tools. Compared with other competing products, it has advantages in various aspects and is better overall. However, the Watsons Mini Program also has aspects that can be learned from others. For example, a new points system can be added to the membership privileges, and users with different levels of loyalty can be operated differently. It can also conduct more in-depth operations for members, adding birthday privileges, birthday month privileges, and membership anniversary gifts.

V. Operational Improvement Suggestions

1. The positioning of the channels and category tabs on the mall page is not clear enough

2. Community operation ecology needs to be optimized

Although there is a community ecosystem, it lacks overall activity, with fewer posts and interactions. Posts require more than 150 words, and the threshold is high. It is speculated that there is a lack of professional community operators to operate the community ecosystem.

Suggestion: If this section is useful, you can purchase PGC content from other platforms in bulk, or concentrate manpower to make a batch of PGC as filler content.

3. Product details lack necessary information prompts

4. Product recommendations can be added to the product details page + my page to improve traffic utilization

5. The display styles of advertising spaces are not uniform and there is no unified standard

Some banners have too many elements and the key selling points are not highlighted.

Suggestion: Establish unified visual design standards and design according to the standards.

6. Inconsistent price display

7. The header banner of some activity pages is too high, and the display efficiency is low

VI. Conclusion

After the above analysis, we have the following conclusions:

1. As Watsons started its O2O strategic layout early and its digitalization process was fast, the Watsons Mini Program is highly sophisticated, with complete product functions and complete operation strategies. It has achieved good results and awards in the past two years.

2. Watsons' users are mainly women aged 25 to 40, concentrated in first- to third-tier cities, with a medium or above consumption level. They pay attention to good products, food, beauty and skin care, and have high demands on life.

3. The advantages of Watsons Mini Program are: ① Cloud store model, breaking through the limitations of limited SKU booths in stores; ② Strong fulfillment capabilities and guaranteed after-sales service; ③ Brand + social marketing to extend the user life cycle; ④ Systematization of operation strategy, covering new customers, activation, conversion, and retention; ⑤ Systematization of people, goods, and venues, which complement each other; ⑥ Product functions are ahead of peers.

4. Compared with competitors, Watsons Mini Program has complete marketing functions and richer operational tools. It has advantages in all aspects compared with other competitors and is better overall. However, the Watsons Mini Program also draws on the experience of others. For example, a new points system can be added to membership privileges to differentiate operations for users with different levels of loyalty. It can also conduct more in-depth operations for members by adding birthday privileges, birthday month privileges, and membership anniversary gifts.

5. Although the Watsons Mini Program has many advantages, there are still some details that can be systematically optimized, such as channel positioning, banner advertising design specifications, community operations, booth utilization, etc.

The above is purely personal analysis and communication and does not represent the official views of Watsons.

Author: Thinking Village

Source: Leave some time for thinking