The core driving force for Tmall’s three-year doubling is the new product growth and new product strategy.
“More than discounted goods” is no longer the only theme of the double eleven, Tmall wants you to taste more.
200,000 brands, 1 million new products, billions of sales, this year Tmall double eleven, new products become the new growth engine. As early as the first day of this year’s double eleven pre-sale, the number of new products that broke through 10 million reached nearly 100. Under the strong promotion of new products, the first day of the Tmall double 11 pre-sale turnover has doubled compared with the same period last year.
The new product is the most important new story of Tmall this year. The two presidents of Tmall have high hopes for it. In January 2019, the former Tmall president Jing Jie announced at the “First China New Consumers Festival”: “The new product launch will be the core strategy of Tmall in 2019.” On the day when the double eleven opened the pre-sale, the new Tmall president Jiang Fan had set the KPI double eleven and three major KPIs, and the new product occupied an important position.
The cooperation of major brands is also very high. In the past year, whether it is a highly localized foreign brand such as Starbucks, L’Oreal, KFC, Haagen-Dazs, or a well-known Chinese brand such as Perfect Diary, Big White Rabbit, Li Ning, etc., or Madi Duff Overseas niche brands such as the Spanish beauty brand that is famous for Ampoule products have chosen to launch new products in Tmall. In 2019, the Tmall platform will sell more than 90 million new products, an increase of 80% over the same period last year. New product distribution channels are still moving to the Internet. According to data from Ali Research, more than 75% of head businesses will choose to release new products online by 2020.
New channels and new gameplay have greatly boosted sales. In 2018, the turnover growth rate of new products reached twice the overall growth rate of Tmall platform, which effectively promoted the growth of the performance of major brands. Jia Luo, general manager of the Tmall Consumer Platform Business Unit, asserted: “The core driving force for Tmall’s three-year doubling is the new product growth and new product strategy.”
New product sales have become the main driver of online consumption, from the Ali Institute
Taking Starbucks as an example, choosing to be hungry as a delivery channel is only the beginning. In the year of accessing Ali, Starbucks opened its flagship store in Tmall, and for the first time launched the new cat claw cup and other products in the e-commerce channel. . According to the data provided by Ali, the 1000 cat claw cups sold by the Starbucks Tmall flagship store were all sold out in 0.07 seconds. The “cat claw cup” was on the mobile phone Taobao.The search index has soared 120 times. Starbucks also urgently added stocking, and subsequently replenished 3,000 in its Tmall flagship store, but it was still online. In the case of Tmall selling Ampoules and other products, Marty Def has sold the new products in Tmall for half a year, and has already created sales equivalent to the sum of the past few decades.
During the promotion period, discounts are still an important indicator for users. Because the play of the Tmall is too complicated, the subsidy is not simple enough, and many users have criticized it. Therefore, the combination of more, more, Jingdong, Suning is still a familiar formula, have played the “billions of subsidies” banner during the double eleven, and use low prices to attract consumers. The complex Tmall played a real subsidy of 10 billion.
Double eleven has reached the eleventh year, and the major e-commerce platforms obviously hope that the user’s mind is not just “buy bargains.” Jingdong played the slogan of “Double 11 Global Good Things Festival” and subsidized a number of overseas big brands. A lot of fights will continue the 618 billion subsidy gameplay, emphasizing “the same brand of the lowest price”, but also want to take into account “cheap” and “good goods.”
If Jingdong, and many more are still looking forward to the transition in the form of subsidies, and cultivating users’ minds about “good goods”, Tmall will go even further: using the heat of the promotion, through pre-sale New products such as Tmall U and Black Box will be launched without new discounts.
Ali e-commerce wants to make a distinction between it and the fight. According to data from three-party organizations such as Symmetric Technology (SST), Taobao and the users of the company have nearly 80% overlap. Taobao urgently needs a new highlight, showing that it has more room for development.
Shortening the incubation period of new products
New products are an important way to add new brands, but for brands, incubating and releasing new products has been a high-risk thing.
The risks are mainly from two aspects. First, the new product development cycle is long and the investment is large, but the consumer’s demand changes rapidly, and the brand push is often outdated. Second, it is not easy to promote new products. It is difficult to start without a proper promotion season and a differentiated route. The data of Nielsen shows that even in the United States with the most consumer civilization, the success rate of new products is only 5%, and over 70% of new products will be delisted within 18 months.
The consumption environment in China’s rapidly changing market has also brought greater challenges to overseas brand incubation. Take the beauty brand as an example. Compared with overseas big brands, the domestic beauty brand has a newer speed, lower pricing, and more flexible gameplay in major social media, and is gradually grabbing the attention of young people. This change is directly reflected in the sales data. In the past year, the list of the top ten is the foreign high-end beauty brand. However, since last year, the new national beauty brands such as Perfect Diary, Zhiyouquan, and Huaxizi have begun to occupy a place. This year’s double eleventh day, perfect dayFor the first time, the industry’s real-time sales rankings have surpassed the overlord Estee Lauder for many years and become the new champion. For the first time this year, Huaxizi, who participated in the double eleven, also entered the top ten list.
2019 double eleven day beauty brand industry rankings, pictures from the data platform “business staff”
In the past three years, Tmall has successively established Tmall Black Box (global marketing), Tmall U first (online offline channel sample pull new), Tmall new product innovation center department (TMIC, provides massive big data) three A business unit that develops new and new solutions for the brand to increase the success rate of new products. Last year, Tmall’s new products exceeded 50 million. Of the key new products supported by the small black box, 80% entered the top 3 items in the same period.
Tmall new product incubation product matrix, each with its own functions, the picture is from the official Ali
In addition to building a product matrix, Ali also gives the brand the most powerful new traffic. On April 17, 2019, Tmall announced a major strategic upgrade, and the mobile phone Taobao home Tmall entrance was directly upgraded to Tmall new products. Based on these, foreign brands such as L’Oreal, Procter & Gamble, Unilever also began to take the initiative to seek opportunities for new products cooperation with Tmall and other e-commerce platforms.
Tmall provides a large amount of big data to the brand through the New Product Innovation Research Center and the Trend Forecasting Center, helping the brand to conduct crowd research, predicting fashion trends, and shortening the cycle of new product incubation while trampling.
L’Oreal has launched a high-end medical beauty brand called Xiulike in the European and American markets. After Tmall’s big data research and crowd insight, it constantly adjusted the Tmall flagship store operation and promotion strategy. L’Oreal introduced new overseas products to the Chinese market. The new cycle has been shortened from 150 days to 15 days. The small town youth C2B custom cream jointly developed by L’Oreal and Tmall Data became the first in the sales of Tmall cream products on the day of the listing, and sold more than 100,000 units.
P&G China has developed a new product in the pastIt will take only a few years, and after data cooperation with Tmall’s new product innovation center, it only takes 9 months. In the past few years, the number of new products released by P&G China has almost been released in the past 20 years, and the number of new products released has increased greatly. The success rate of P&G in Tmall is as high as 95%.
At present, the Tmall New Product Innovation Center is using big data to penetrate the C2B flexible supply chain, and is trying to change the traditional pattern of manufacturing, improve the speed of brand production and the ability to respond to the market.
Tmall New Product Incubation System, picture from Ali Research Institute
The cooperation between Unilever and Tmall in new product development is a typical case. The first product jointly launched by both parties is an anti-mite shower gel. Based on Tmall’s big data for 2016 and 2017, anti-mite shower gel is becoming a new necessity, and Unilever has decided to develop such new products as a new entry point for the care market. After the product was put on the market, as an exclusive sales channel, Tmall re-captured the consumer market data through trial sales, and formed a complete consumption feedback report to provide Unilever, providing a basis for the continued production or research and development of the product. Based on this, on April 9, 2018, Unilever announced the establishment of the “Great Health Joint R&D Center” with the Tmall New Product Innovation Center to incubate more new health care products.
This means that With the new product incubation system, Tmall’s data is more comprehensive, data particles and dimensions are more abundant. Ultimately, these brand data and consumer data will become the Ali infiltration industry chain. Upstream, such as the core resources of manufacturing. A senior executive from the home appliance industry revealed in an interview with the media that Ali, which holds two large pieces of data for brands and users, is incubating and releasing new products through different categories to guide factories and brands with data. Produce products that are preferred by the user, and this is already part of the new manufacturing. Ali can guide the factory to produce products through data and user interaction, improve product efficiency and user accuracy, and further shorten the cycle of new product development and incubation time.
E-commerce promotes core marketing scenarios
There is also a solution to the launch of new products.
The small black box can help the brand to detonate new products within 30 days through global marketing. In the past, it often took 180 days to go online, and the big promotion of 618 and double eleven maximized the maximum.The effect of cooperation between the two sides. During the 618 period, more than 80% of Tmall merchants chose to launch new products on the Tmall platform. The Double Eleven is a concentrated display of the results of the cooperation between the two parties. Tsao, director of the Tmall brand marketing center, said: “The highest peak of China’s new product explosion is not during the Chinese New Year, but the Tmall double 11.” This year’s double eleven Estee Lauder released a new package of small brown bottle gift box (new upgrade and new Packaging is in the new category), selling more than 520,000 bottles, accounting for a quarter of the global sales of Estee Lauder’s small brown bottles.
New black box new global marketing path, picture from Ali Institute
Tmall’s definition of the new product, the picture is from the Ali Institute
The double eleventh promotion has become a must for all major brands to push new. This year, Tmall Double 11 has more than 50% of the big beauty brands, and chose to release the most important Christmas gift box of the year to Tmall Double Eleven, including 215 of Senior Hall, Lancome, Givenchy, Yves Saint Laurent and SK2. The big brand has specially customized 241 exclusive new products for Tmall Double Eleven, which are packaged and sold through small black boxes. In addition, more than 20 luxury brands around the world, the first time to enter the official flagship store of Tmall, also in order to catch up with this year’s Tmall double 11 new products.
There is not only overseas brands, national brands and domestic brands, but Tmall is also trying to promote new products in the e-commerce channel during the double eleven period as a new brand’s tipping point.
A classic case is the ice cream brand Zhong Xuegao. Zhong Xuegao is a new generation of net red brand that is hatched by Tmall. Since its launch in May 2018, a total of 10 million ice creams have been sold, which is expected to reach 12 million by the end of 2019. As a new brand, Zhong Xuegao only went online for less than half a year.It was launched by issuing an ice cream called Ecuadorian pink diamond in the huge traffic field of Double 11. On the day of the Double Eleven, the new ice cream, which sold for as much as 66 yuan, sold out for more than 20,000 pieces in 10 hours.
In 2018, Zhong Xuegao’s double eleven-first Ecuadorian pink diamond ice cream was a hit, the picture was from Tmall official
The Net Red Army is a new force that joins the Double Eleven to promote new. In July 2019, Ali announced that it would absorb 100,000 celebrities and KOLs within three years, and certified the “Tmall New Products Launcher” to build a new content culture for Tmall’s new products through the cultivation of red-person training programs.
Among them, Taobao live broadcast is an important carrier and channel. It can be foreseen that the huge stimulation of Taobao live broadcast will also bring new growth momentum to Tmall new products. On the day of Tmall Double Eleven, the outbreak of Taobao Live has also become the biggest growth point of the brand. The opening is only 1 hour and 03 minutes, and the direct sales of are more than last year. 8 hours and 55 minutes, Taobao live broadcast lead has broken 100 billion. More than 50% of merchants have achieved new growth through live broadcasts.
Taobao Live will bring more imagination to Tmall’s new products, and the next Zhong Xuegao is likely to be born here.
(Headmap from Tmall official)