Nowadays, it is a good time for brand investment and entrepreneurship.

Editor’s note: This article is from WeChat public account “Qingtong Capital” (ID: qtziben).

In recent years, with the improvement of infrastructure such as logistics/payment and the development of information technology, the barriers of big brands are being weakened, and new brands are welcoming more opportunities. So, in the face of favorable conditions, how should new brands break through?

October 30, Qingtong Capital InvitationZhang Qiuqiu, Vice President of Zhonghai Investment,Shared Brand Opportunities under the New Channel from an investor perspective. The following is the key content of Zhang Yuqiu’s “Qingtong Big Coffee”#:

  • Drivers behind the new channel revolution

  • The essential difference between new and old channels

  • How channel reforms reshape brand logic

  • Major challenges to new brand entrepreneurship

Zhonghai Investment Zhang Qiuqiu: Brand Opportunity under the New Channel

Zhonghai Investment was established in 2014 and continues to focus on the Internet/consumption, medical health, high-tech and other fields. In the field of consumption, our investment cases include Lele tea, beast life, and pets. I personally invest in “brand” and “channel”, which is also this sharing Two keywords.

I. Drivers behind the new channel revolution

Before speaking about consumer brands, we must first understand what changes have occurred in the consumer channel and the drivers behind the changes. We believe,
  The essence of the new channel is to redefine the consumer experience with advanced combinations of efficient social production factors.

So,New channel changes are inseparable from the following3 major elements:

  • Upgrading of consumer targets (capacity, including basic materials, material enjoyment, spiritual experience, etc.)

  • The compliance process is convenient and efficient (logistics, payment)

  • Brand recognition personality (social, content)

Zhonghai Investment Zhang Qiuqiu: Brand Opportunity under the New Channel

The underlying driver is actually a wave of waves.
  The combination of trends brought by different waves has formed a new channel stage.

First stage. < /span>Taking the rise of Taobao and Jingdong as an example

At the timetarget aspect, the entire Chinese production capacity was backward, and some low-quality and inferior products were prevalent. Later, the production capacity began to erupt, and excess capacity was exported or dumped abroad;Performance aspect, logistics (four links and one arrival) barbaric growth, with customs tax return as the main source, the order is pure Human resources, payment is entirely the traditional way;Brand awareness,Using traditional communication without social APP, there is no so-called push or Internet social fission, the content system is Pure B2C distribution, that is to say who has mastered the channel, who has mastered the strong distribution of content.

Taobao and Jingdong, as the first soldiers, ate the bonus from the first stage to the second stage.

Second stage.> In addition to Taobao Jingdong, there are Tmall

Target aspect, production capacity from barbaric production to lean management;Performance aspect, logistics system also enters lean management, payment system Online gradual improvement;Brand awareness, social online communication, content channels transfer from offline/big screen to mobile/PC.

Relatively speaking, Tmall is a better platform than Taobao and Jingdong. The most brilliant and fastest growth period of JD is also in the second stage, not the first stage.

Phase III. US Mission becomes the biggest target
 

With the large-scale popularization of mobile communications, the target and performance have gradually entered the derivative realization period, and payment, social and content marketing have all been transferred to the mobile terminal.

Stage 4. Take a lot of ideas
 

This stage,The most important change is in brand awareness.
  On the social side, WeChat began to develop into the rich media as China’s largest traffic system, and can share various things through small programs. Social tools slowly become a rich media communication channel from a simple low-quality mobile communication. On the content side, it becomes the distribution mechanism of C2B. The audience can specify the content that the self-study hopes to see. The micro-blog vibrating fast is doing the distribution mechanism in front of thousands.

At this stage, the fight as a commodity channel not only occupies the secondary traffic bonus of Taobao, but more importantly, through the correct social play, C2B decentralized play becomes a A successful e-commerce platform.

Now, in some of the projects I’ve been exposed to, I’ve observed a phenomenon: Many local life companies are based on WeChat traffic, to do cities or merchants that the US Mission does not want to do/not pay attention to, and then through social fission, to achieve a rapid rise in GMV. I believe that it may become a trend in the future.

To sum up, from a big logical point of view, the transformation of new channels is inseparable from changes in the subject, performance, and brand perception:

On the subject of consumption, we change from just needing something to pursuing material enjoyment and even spiritual enjoyment.

In the performance process, the density of the fulfillment points is now getting bigger and bigger. The biggest benefit to the brand is that the difficulty of making a national brand is decreasing. Any startup can use its existing infrastructure to get customers from all over the country and distribute products to the country.

In brand awareness, it is difficult for everyone to form a unified consumer consensus and increase the difficulty of being a big brand. But because of this, The barriers of big brands are weakened, and startups have their own opportunities.

II. Essential differences between new and old channels

What are the essential differences between new and old channels based on changes in infrastructure? This is the core premise to be understood as a new brand.

Zhonghai Investment Zhang Qiuqiu: Brand Opportunity under the New Channel In the channel logic, the old channel logic is that people find goods because they are subject to physical entities, high distribution threshold, poor distribution accuracy, slow distribution speed, and long iteration cycle. The new channel logic is to find people, because with the help of information technology, it can reduce the distribution threshold, improve distribution accuracy, distribution speed, and shorten the iteration cycle. In essence, The new channel is based on the flexible and fast-reaction capability brought by the technological revolution, and truly realizes the user-centered, customized group/group field.

On the distribution unit, the smallest unit is converted from a channel to a user. From the perspective of channel operators/brands, each channel has its own innate characteristics. For example, to enter Wal-Mart, Carrefour or a convenience store, it is impossible to enter only one of their stores, and you can talk to many stores at once. The volume and threshold are very high. During the distribution process, it is not possible for every store.