In this era, competition is fierce in all walks of life, especially the price war among e-commerce platforms, which has caused many small and medium-sized enterprises to fall into a dilemma: they can neither afford to invest nor lose money! Even good wine needs to be hidden in a crowded alley! Therefore, many small and medium-sized entrepreneurs are very concerned about this issue: How can we achieve accurate promotion and obtain higher returns with lower cost investment? Today, the editor will take a look at the input-output ratio of different channels with you, and reveal the true situation of the input-output ratio of physical, e-commerce, and micro-business channels! For more traditional and conservative friends, they are more inclined to invest in physical stores; however, there is an obvious objective fact: physical stores have experienced several rounds of store closures, and the root cause lies in the increase in rents and the decline in offline customer traffic! Let's do some calculations: Rents keep rising. The average rent for physical shopping malls is 20 basis points, and a slightly high-end shopping mall will cost more than 20% to 30%. Add in labor, promotions, and materials, and the investment is definitely more than 40%! What’s even more hateful is that offline channels have been impacted by the Internet, business is not very prosperous, but rents continue to rise! ! ! Join Taobao platform ?Most of our friends born in the late 70s or 80s are familiar with the Taobao model. Some of them have also made a fortune by starting their own businesses on Taobao! However, Taobao today is completely different from the Taobao five years ago. Taobao data showed last year that there were already 8 million sellers. Intense competition has led to an increase in promotion costs. Now, most Taobao stores basically spend 15%~20% on advertising. If it is a Tmall store, plus Tmall’s commission, it will be almost 20%~25%! Entering these e-commerce platforms basically relies on price wars, and during festivals and other times, merchants are forced to offer price cuts and promotions, so they hardly make any money or even lose money! What about WeChat business channels?Some people say that micro-businesses can earn millions a month just by lying in bed, while others say that micro-businesses do not make money. What is the truth? WeChat business transactions mainly rely on customers who are recommended to shop by acquaintances through social connections. This group generally attaches great importance to quality and is relatively insensitive to price. At least they won’t make such shameless demands as “utterly unscrupulous and inhumane” as asking merchants to offer free shipping for 9.9 yuan ! This internet celebrity e-commerce or micro-business model based on recommendations from acquaintances on social networks also has many advantages in profit margins ! This is also one of the reasons why a large number of traditional enterprises have flocked into the micro-business field. According to the WeChat business teams and brands I have contacted, I have made a statistics: A Fankou brand invested about 100,000 yuan in two months to promote the WeChat business industry and achieved a turnover of more than 3 million yuan. B Tianrui brand invested more than 10,000 yuan in promotion expenses through the WeChat business platform, carried out two investment promotion activities with the theme of "free trial", and received more than 2 million yuan in order returns in one month! The C Ant team invested less than 30,000 yuan, did a soft article promotion, and recruited 500 partners. D For example, Cradle Fruit invested about 50,000 yuan in advertising expenses, built a team of more than 300 people in one year, and achieved sales of more than 200,000 yuan on Singles’ Day. e9 Doctor once invested more than 100,000 yuan in promotion expenses on the WeChat business platform. On the Double Eleven Day, it achieved a turnover of more than 5 million yuan! f Maxim Team, Haha Team, invested about 100,000 yuan in promotion expenses and achieved sales of several million yuan. They once received a return of 600,000 yuan in a week through a soft article; they used half a year to build a team of more than 600 people. (Please click here to read the original text for the above cases) Of course, these are just some data from the WeChat business channel this year. Currently, micro-business has entered a period of recovery, and many traditional enterprises want to enter the micro-business market. Profit margins are one of the reasons that attract traditional companies to enter. In addition, there are three more reasons: ❶ The settlement cycle of general e-commerce platforms can be as fast as three to five days, or as slow as half a month or even a month. The settlement cycle of traditional channels can even be as long as three months! Unlike traditional channels and e-commerce platforms, WeChat business is a cash flow business where payment comes before delivery. For businesses, cash flow is king! ❷ Low promotion and operation costs! For traditional enterprises, the agency or distribution model is like finding some salesmen who do not need to be paid by the company but are countless times less troublesome than employees! ❸ WeChat is still the social tool with the largest number of users and the most active users. Information spreads quickly, which is beneficial for brand promotion! By increasing revenue and reducing expenditure, you can make money by reducing promotion costs and operating expenses! Current situation analysisLarge enterprises have long occupied offline supermarkets, shopping malls, and Tmall and JD.com platforms and have accumulated certain advantages. However, it is already very costly for small enterprises to enter traditional channels or Tmall and JD.com. To open a Tmall store, one must first pay hundreds of thousands of yuan, including payment for goods and promotion. Without an investment of hundreds of thousands of yuan, it is impossible to survive in the first year! Compared with opening a physical store, Tmall stores often require an investment of millions of dollars. In the micro-business industry, it costs about 50,000 to 100,000 yuan to invest in advertising, and a certain amount of payment depending on the product category. With three or five people, they can achieve sales of several million yuan a year, and it is relatively easy for each person to earn hundreds of thousands or even millions of yuan. At this stage, the WeChat business channel has the highest input-output ratio among these channels!Of course, this low-cost counterattack opportunity will not last long. Some people may have realized that the micro-business started to pick up in late September and entered a period of recovery and rise. When a large number of traditional companies see this opportunity and rush in, they will inevitably enter into a price war. |
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