Those explosive products that have gone viral all over the Internet have just captured these 4 points.
Editor’s note: This article is from the micro-channel public number “notes Man” (ID: Notesman), Author: Zhou Ying, Editor: Zhiyong, the duty editor: gold wood research.
Content source: Shanghai Jiaotong University Antai College of Economics and Management EMBA “Jianghai Convergence · Sailing Free Trade Port” Zhixingtianxia Haikou Station.
Sharing guests: Zhou Ying, Director of Antai EMBA Program of Jiaotong University, and professor of “Marketing” course.
Note: Note: As a partner, Notepad is published after review and authorization by the organizer and the speaker.
Think before reading:
What is the underlying logic of the rise of new brands?
Is it possible to build a model for the creation of new brand explosive products? ?
Let’s take a look at the past explosives first:
Gifts to be given? “Platinum”;
Afraid of getting angry? “Wang Lo Kat”;
Thirst and sleepy? Drink “Red Bull”;
Nine Suns equals? “Soymilk”;
The microwave oven is equal to? “Galanz”;
Spicy bar is equal to? “Weilong”
These familiar brands have used decades of hard work to become synonymous with category. Nowadays, the consumption pattern is changing. On Tmall Double Eleven in 2020, a large number of new brands will stand out. 357 new brands won the first place in the sub-category. 16 new brands rushed into the 100 million yuan club. 54 new brands’ double eleven sales exceeded the whole year of last year. Turnover.
Perfect Diary has a turnover of 600 million, becoming the first in the beauty category;
Ubras has sprung up, sales surpassed 300 million, becoming the number one underwear category;
The sales of Xiaoxiandu on the whole network exceeded 465 million yuan, a year-on-year increase of 263%;
Bubble Mart has sold more than 100 million yuan, ranking first in the Tmall model play category;
The transaction of the cloud whale sweeping robot surpasses 200 million;
Three and a half coffee turnovers are 100 million yuan;
Vitality Forest became the No. 1 sales volume of Tmall’s water drinks category;
More and more subdivided, vertical, and niche new brands have quietly become popular and are entering the mainstream consumer group’s vision. Their speed from 0 to 1 is becoming faster and faster.
What is the commonality of these phenomenal explosives? What is the underlying logic behind their rapid exit? How to build a key factor model for explosive products to promote more Chinese new brands out of the circle? What is the difference between the new brand and the traditional brand to create explosive products?
This article will focus on these issues and discuss how to create a new brand of explosive products in China.
1. The commonality of new brand explosives is 3F
1. Fast (Fast)
Through researching these explosive products, it is found that most of them are completed in about 4 years from establishment to becoming explosive products. Fast speed here refers to rapid detonation, rapid iteration, and rapid growth.
For example, Wang Baofeng was established in 2017, Zhong Xuegao was established in 2018, Ubaras was established in 2016, and the Perfect Diary brand was established in 2017. These products have been completed in a short period of time from research, R&D, product testing and marketing. The transformation from 0 to 1.
New brand creation time
2. Focus (Focus)
When these new brands enter the market, they often focus on one type of single product, one selling point, one type of crowd, one type of platform, and one time period. They can achieve a sales breakthrough of 100 million yuan at a rapid pace, and then proceed. Category extension.
For example, Perfect Diary initially focused on make-ups such as lipsticks and eye shadows, focusing on big-name make-ups, focusing on young people aged 18-30 as the mainstream population, using Xiaohongshu as a platform to detonate, taking Double 11 and 618 as an opportunity to concentrate resources Break through.
3. High-profile (Fashion)
In the era of “face value is justice”, new brands attract young people’s attention by creating high-value products.
Packaging design master Shiren Sasada once said in “0.2 Seconds of Design Power”: “The time for shopping customers to see the goods in front of the shelves is only 0.2 seconds. Think.Let the customer exclaim at this moment, ‘Wow! “And if you are willing to stop, you must rely on eye-catching packaging”.
According to Nielsen data, 64% of consumers will buy products with more attractive packaging. It is not enough for the product to be practical, and it must be “good-looking”, and even the behavior of “buying caskets and returning beads”. For example, the design of Perfect Diary’s joint models with Metropolis and Discovery are stunning.
Perfect Diary joint design
Second, the underlying logic of China’s new brands going out of the circle-four major bonuses
In 2020, a large number of cutting-edge brands can stand out in a red sea. What is the underlying logic behind this? The exit of new Chinese brands depends on four major dividends, namely economic dividends, traffic dividends, platform dividends and consumer dividends.
1. Economic dividend
In 2020, facing the sudden new crown epidemic, the economy has suffered heavy losses. The global economic growth rate has shrunk by 4.3% year-on-year, but China’s overall GDP has exceeded 100 trillion yuan, an actual growth of 2.3% year-on-year, ranking second in the world; 2020 In the list of Fortune 500 companies, China has 133, surpassing 121 in the United States; Tmall double eleven will set a new high in 2020, with a transaction volume of 498.2 billion yuan.
With such a severe epidemic, it is not easy for my country to achieve rapid growth in online sales. The strengthening of China’s comprehensive strength has promoted the self-confidence of the Chinese people and strengthened the pride of the domestic brand.
2. Traffic bonus
By December 2020, the number of Chinese Internet users will reach 989 million, with a penetration rate of 70.4%; the number of online video (including short videos) users will reach 927 million, accounting for 93.7% of the total Internet users; 873 million short video users, with a utilization rate of 88.3%, Short videos have become traffic portals, and the new traffic dividends have laid the foundation for new brands and new models.
China’s traffic dividend has experienced Weibo in 2015, WeChat in 2016, Xiaohongshu in 2017, Douyin in 2018, short videos, live broadcasts and video accounts in 2019-2020, and now it shows ” Shuangwei flicked the pattern of “B fast red vision”.
In March 2020, Taobao had 760 million monthly active users, 470 million Kuaishou, and 560 million Douyin. By the end of 2020, the number of daily active users of Douyin exceeded 600 million.
3. Platform bonus
At present, the three e-commerce platforms of Tmall, JD.com, and Pinduoduo have all started to incubate and support new brands, becoming the focus of competition for the three e-commerce platforms in the future.
Starting from 2016, Tmall has launched marketing tools such as TMIC Innovation Center, Tmall Black Box, Super Category Day, etc. to empower new brands to grow.
In 2020, Tmall upgraded the “Tmall Super Rookie Program” to provide traffic, data, and marketing support for the development of new brands. Within 3 years, it helped 1,000 new brands sell more than 100 million yuan a year. Annual sales of 100 new brands exceed 1 billion.
Tmall President Jiang Fan emphasized that “The past 10 years have been the 10 years for offline brands to embrace the Internet. The next 10 years are not only the key 10 years for the digital transformation of traditional enterprises, but also the 10 years for the Internet to create new brands.” /p>
The 2020 Tmall new domestic product plan proposes to add 3 Chinese brand products to everyone’s shopping cart. Tmall New Product Innovation Center will incubate a new brand every day and train 1,000 new product planners for Chinese brands;
Tmall’s new cultural and creative plan to help 1,000 Chinese brands and well-known IP at home and abroad to cross-border cooperation; Juhuasuan “Juxin Product” plan to help 10,000 new domestic brands open up new customers and new markets.
Promote new brands and become the core of Tmall’s platform strategy in 2020.
In 2019, JD.com also released the “JD Super New Plan” and launched the new product launch platform “JD Cube”, creating a full life cycle solution of “planting grass-weeding-raising grass” for new products.
At present, JD’s Cube has been fully upgraded, integrating the five high-quality capabilities of the entire platform: data capabilities, operational capabilities, content capabilities, ecological capabilities, and user operations. It has become a participant and promoter of “innovation”, and will contribute to JD’s annual double ten. One brings over 300 million new products.
Pinduoduo’s “New Brand Plan” launched at the end of 2018, proposed to support 100 industrial belts from 2021 to 2025, order 100,000 new brand products, and drive 1 trillion sales.
In the next five years, Pinduoduo will take root in the Chinese cosmetics industry belt and cultivate 5 billion-level cosmetics new brands, including 10 1 billion-level new first-line cosmetics brands.
The e-commerce platform has gradually become a fertile ground for the development of new brands. It has created a luxuriant new brand of domestic products and set a new record of “counter-attacking big names”.
4. Consumer bonus
① New crowd
Why new brands can prepareIt is popular because the post-95 generation Z (born in 1995-2009) has become the main force of online consumption.
China divides the population according to the X, Y, and Z generations. Generation Z has a population of 260 million, accounting for 18.5% of the total population. The preference of this generation is ACGN culture, A (Animation) refers to animation, C (Comic) Refers to comics, G (Game) refers to games, and N (Novel) refers to novels.
Gen Z have their own unique spiritual pursuits and consumer values. This generation is described as “exquisite and poor”. Although they don’t earn much, they have not given up the pursuit of exquisiteness. They are willing to pursue the life and The things I like become poor, they are so poor that they live happily and shiningly.
② New concept
The consumption concept of Generation Z has also undergone great changes, from focusing on “functional consumption” to “consumption of beauty”, from “pleasant consumption” to “pleasant consumption”.
They are more willing to try new things, admire good looks, pursue individuality, and focus on self-satisfaction. Products must not only be easy to use, but also fun and beautiful.
Consumers of the traditional generation are more inclined to “pleasant” consumption. They choose luxury goods and well-known brands with big logos to enhance their image and status through brands; Generation Z consumers no longer advocate authority and Obeying, pursuing independence and self, focusing more on themselves, pleasing themselves has become their mainstream consumption concept.
They do not only focus on brand awareness, but also pay attention to small and beautiful niche brands, and choose characteristic products that fit their own personal settings. Some consumers even describe it simply and crudely as not to use the same brand as their parents, because that represents the past and outdated, and they also long for their own brand to appear.
At the same time, the new generation pays more and more attention to domestic products, and their attention to Chinese brands has increased from 38% in 2009 to 70% in 2019, especially those in the 20-29 age group. The highest degree.
Chinese consumer groups’ attention to Chinese brands
③ New consumption
New consumer groups will inevitably bring new consumption opportunities, which give birth to new species, and also drive the growth of new brands, forming a unique “new product” driving force, and new products become the biggest growth opportunity in the new consumption era , Every new demand will becomeThe new golden track.
Currently, China’s new consumer products have the fastest growth rate, including medical beauty, Internet celebrity food, anti-sugar meal replacement, beauty and personal care, sleep economy, and trendy toys.
In addition, many of the new brand entrepreneurial teams are also young people. Brand founders such as Sandton and Ramen Talk are all born in the 90s. They themselves are new consumer groups and can accurately capture the needs of young people. Capturing opportunities keenly.
Top ten tracks for the rise of new products in China
Three, the BOMB model of the brand’s explosive products
Hundreds of millions of new products are launched into the market in China every year. Tmall Black Box alone has launched 200 million new products in the past year. How these new products can become explosive products in a short period of time, through research, I constructed a BOMB model, hoping to provide reference for the breakthrough of new products.
Explosive key model
1. Select the track/explosive category (Bigmarket)
The most difficult first step in creating explosive products is to choose the track (select category). If the track is not well selected, no matter how hard you try, you will get half the result. The process of selecting the track is to foresee the outlet-find the outlet-to seize the outlet process.
The big track is the best sunrise industry, choosing categories with big market, high growth, high frequency and standardization. Just like fuel vehicles and new energy vehicles, noUndoubtedly choose the latter.
For example, Wang Xiaoluo started his business for the first time and chose the cooked foods of braised pork knuckles, but in the end it failed to become an explosive product. Change the braised chicken feet and focus on the zero food category to get a chance of rebirth.
In 2019, the company came back to life. In 2020, double eleven sales reached 20 million yuan, an increase of 500% year-on-year, ranking first in the Tmall Jingdong chicken feet category. The reason is that the snack track will far exceed the cooked food category in terms of consumption frequency and consumption scene. It can be seen that choosing a track is very important.
The track of Perfect Diary is very well chosen. It chooses make-up in cosmetics, and also chooses lipstick and eye shadow in make-up.
First of all, the cosmetics track ranks second in the growth rate of total retail sales of consumer goods in China in 2019; secondly, the small track is selected. From the perspective of skin care and makeup, the technical and brand thresholds of skin care are very high, Estee Lauder , Lancome and other big names are hard to surpass.
From the perspective of growth, the growth of cosmetics is higher than that of skincare. From 2018 to 2019, the turnover of skincare products on Taobao and Tmall increased by only 33%, while the growth of cosmetics was 40%.
However, compared with South Korea and Japan, the proportion of makeup in my country is still very low and there is more room for growth, so Perfect Diary chose the small makeup track. In makeup, lipstick is a must-have item in women’s makeup, and it has great advantages regardless of the frequency of purchase and the scene of use.
2. Outstanding selling point/Outstanding
Choosing a good category lays the foundation for explosive products, but to become an explosive product, there must be an explosive point. This explosive point comes from the pain point of consumer demand. This explosive point solves the barriers to consumer purchase and promotes consumers to be the first Purchased this time, but only when the product has a screaming point can it spread quickly and detonate the market.
Explosive points come from pain points, explosive points resolve purchases, and scream points resolve fission. For example, the 0 calories, 0 fat and 0 sugar of the vitality forest; three and a half meals are super instant in 3 seconds; the “fresh” and “instant” of Xiaoxian stew; Ubras’s no size, no steel ring, no restraint; perfect diary The big-name Pingchang; Hyaluronic acid liquid of Runbaiyan; Huaxizi’s “Oriental Makeup” and so on.
3. Multi-Channel (Multi-Channel)
Currently, most of the explosive channel breakthroughs basically start online, because consumer habits have moved from offline to online, and online retail accounts for an increasing share of the total social consumer goods.Plus, as of the end of 2020, the online retail sales of physical goods was 975.9 billion yuan, an increase of 14.8%, accounting for 24.9% of the total retail sales of consumer goods.
The main online channel platforms include e-commerce platforms such as Tmall and JD, and live and short video platforms such as Douyin, Kuaishou, and Xiaohongshu.
From a national perspective, China’s live streaming has developed rapidly. In 2020, the scale of China’s e-commerce live streaming will reach 96.1 million yuan; from the platform, Taobao’s live GMV will be about 100 billion yuan in 2018, and about 200 billion yuan in 2019. More than 400 billion yuan.
From a personal point of view, the top three anchors in 2020, Wei Ya topped the list with GMV 31 billion, Li Jiaqi 21.8 billion and Xin Youzhi 12.1 billion.
From the brand point of view, take Huaxizi as an example. Among the 6 new products released from January to July 2020, the monthly sales volume reached more than 10,000 to 200,000 units through Li Jiaqi’s live broadcast platform, and those sold in non-live broadcast rooms. , The monthly sales volume is only around 1,000. Therefore, most popular channels are e-commerce, live broadcast and short video.
China live broadcast platform and live broadcast e-commerce scale
4. Broadcast (Broadcast)
The dissemination of China’s new brand explosives basically adopts the public domain traffic plus private domain traffic to acquire customers through public domain traffic, and use private domain traffic for retention, repurchase and fission.
Public domain traffic needs to be purchased with money, such as Douyin, Kuaishou, Xiaohongshu, Toutiao, Taobao, etc., but subsequent private domain traffic needs to be introduced to allow users to settle down, for example, corporate WeChat official accounts, Mini programs, official websites, communities, etc. Only by grasping private domain traffic will the funnel effect be avoided.
Corporate explosives communication roadPath
For example, the main communication channel of Perfect Diary is Xiaohongshu. Through the pyramid layout of Xiaohongshu, it includes the head, shoulders, waist, and large-scale distribution of Internet celebrities, as well as passers-by and amateurs.
After the transaction, the three official accounts of Perfect Diary, Perfect Diary Pet Fan Alliance, Perfect Diary Experience Store, and three small programs of the official flagship store, Wanzi Xinxuan, and Wanzi Home will be attracted through discounts and purchase gifts. Among the private domain traffic, the number of Perfect Diary fans has reached 48 million, forming a powerful private domain traffic matrix.
Perfect Diary’s public domain traffic + private domain traffic
Four. The difference between new brands and traditional brands in the way out of the circle
The traditional brand is “big and complete”, and now the new brand is “small and beautiful.” Traditional brands want celebrity endorsements, and now more use KOL+KOC combinations.
Traditional brands rely on traditional media such as TV, radio, newspapers, magazines, etc., and now use more public domain traffic + private domain traffic. New brands are different from traditional brands in terms of brand path, innovation and communication methods.
1. The path of brand development is different
In the traditional economic era, it takes decades for a product to become an explosive product. It is difficult to enter or exit the market here. It mainly depends on self-owned funds to promote it. It is scale-driven, scale first and then brand.
The company first adopts a good product and carpet bombing advertising method to attract consumers’ attention, achieve large-scale sales, and establish a brand image.
How do you play now?
Enterprises use market research to find the pain points of consumers, build them through category-driven explosions, and become the champions of single-category market segments, attract capital intervention, and use capital and marketing to drive explosives out of the circle and quickly increase product awareness. Then expand the category and expand the scale.
In the era of mobile Internet, new brands have quick market insights, quick responses, and quick iterations. They have changed lanes and overtaking in just three to four years.
The difference between traditional brand and new brand building path
2. Different innovative methods
There are two ways for enterprise innovation: The first is incremental innovation, that is, the improvement of performance, packaging, taste, and variety; the second is subversive innovation, that is, technology and business model innovation.
In the industrial era, traditional brands rely more on subversive innovation and are technology-driven. From basic research and development-product design-mass production-partial test marketing-full commercialization, a breakthrough from 0 to 1 is achieved in a chain manner, but every link of this chain is difficult to surpass, with a long time and high risk.
New brands adopt more incremental innovation methods, and quickly occupy the market by launching new categories, new packaging, new flavors, etc. This kind of innovation adopts a network-driven type, centered on consumer needs, and the research and development, supply chain, production, marketing, and sales platforms are carried out at the same time, and the C2M model is adopted, which is faster.
The innovation of Chinese enterprises has gone from the initial internal innovation, led by internal R&D personnel, to open innovation, research and development in cooperation with scientific research and third parties; and then to the current community innovation, user needs are led by this method. Accelerate the product iteration process. Xiaomi has adopted this innovative method.
Traditional brand and new brand building path
3. Different communication methods
Traditional brand dissemination is a centralized form, which is achieved by buying traffic, for example, advertising through TV stations, radio, etc., this kind of scattered advertising, it is difficult to accurately find consumer groups, and it cannot track consumers’ In response, it is difficult for anyone who has seen the advertisement and who has purchased the product to capture these data. This is exactly the drawback of traditional media.
The dissemination of new brands is a decentralized form, relying more on new media for dissemination. For example, Double Wei Yi Flick B Fast Red Vision, this kind of spread has two benefits:
First, accurately reach and match customer groups through algorithms to quickly form conversions;
Secondly, after the first level of communication, the audience is reached through the audience to form “fission marketing”. The flow depends on the self-propagation of people. This fission may be due to good products or good content. In the past, it relied on buying traffic to manufacturing traffic.
Five. Summary, reflections and ideas
China’s new brand explosive products have the 3F characteristics of fast speed, strong focus and high appearance.
The underlying logic of China’s new brand explosions comes from the four major dividends, namely economic dividends, traffic dividends, platform dividends and consumer dividends.
The BOMB model of China’s new brand explosive products was constructed, namely, explosive categories, explosive selling points, explosive channels and explosive communication to provide reference for the industry.
There are big differences between traditional Chinese brands and new brands in development paths, innovation methods, and communication methods.
China’s new brands have quickly become popular throughout the Internet in a short period of time. How can they go from being popular to becoming popular in the future?
The product is 1, the marketing is 0. After the enterprise completes the breakthrough from 0 to 1, on the one hand, it must realize the development of 1 to N replication. On the other hand, investing in technology and R&D can truly realize the sustainable development of the enterprise.
Short-term marketing, mid-term marketing, long-term product marketing, and the use of technology and products to drive the product to become popular.
For traditional large and comprehensive companies, they have gone through many years of development. Regardless of brand and scale, they have occupied the market advantage, but the biggest problem they face is that the products gradually lose the occupation of consumers’ minds.Continuously being cut and eaten by new brands, if you do not face up to market challenges, you will gradually lose market share.
How can traditional brands not be surpassed by new brands? Two-wheel drive must be used, that is, to build a corporate moat through technology and innovation, and focus more on disruptive innovation to lead the development of the industry.
This article mentioned the once-explosive products represented by Wanglaoji and Joyoung Soymilk, and the new-explosive products represented by Perfect Diary and Wang Baofeng oatmeal. So who will be the focus of the explosive products in the future? What are the characteristics? What means are used to reach quickly?
Three groups of explosive products in the future: These products will focus on groups such as those who love beauty, those who are afraid of death, and those who lack love.
People who love beauty promote the birth of explosive products for medical beauty, beauty makeup, and fitness; people who are afraid of death will promote health care, 0 calories, 0 fat, 0 sugar, and the outbreak of organic food; lack of lovers will promote one person to eat, one person to swim, convenient quick freezing, The outbreak of small appliances and pet food.
Three characteristics of future explosive products:
Short-term explosion is a trend. This short time is not a short life cycle, but a shorter time from creativity to explosion;
Intelligent products, driven by technology, no longer relying too much on marketing and appearance to attract consumers;
Lateralization, starting from the research on the pain points of the needs of the community, focusing on demand-differentiated and personalized products.
Three fine methods for future explosives: These products will rely more on algorithms and data, precise product selection, precise selection of people, and precise catalysts.
Drucker said: “The greatest danger in turbulent times is not the turmoil itself, but still using the logic of the past to do things. The best way to foresee the future is to create the future.”
*The article is the author’s independent point of view and does not represent the standpoint of Noteman