There is no small market, only big business that has not yet been discovered.
Editor’s note: This article comes from WeChat public account “ Advance Finance ” ( ID: jinbubo), author attack wave.
In the 1970s and 1980s, Japan’s finance and economy ushered in unprecedented prosperity.
In 1987, it took fifteen years to build the Tohoku Expressway, which was 679.5 kilometers across the seven prefectures of Japan. The extravagance of Japanese society has spread throughout the country.
Since 1986, the Nikkei has risen continuously from 13,113.32 for nearly four years, reaching 38,915.89 at the end of 1989, reaching an all-time high. In the environment where one meal can eat more than 100,000 or 200,000 yen, it is normal for the Twenty heart-shaped diamond pendant and Cartier’s three-ring ring to be sold out. With a loan interest rate as high as 30% to 45%, no-income loan to buy a car, the whole of Japan is immersed in the glitz of paper drunkenness.
Under such a magical situation, Japanese society generally believes that the market segmentation has been completed and there will be no emerging large-scale enterprises or national brands.
In this cognitive environment, in the 1980s and 1990s, Japan once again produced a number of international companies. These include clothing, electrical appliances, games, animation, heavy industry, beauty and other fields.
In a spiraling historical process with a certain degree of repetition, and in a rapidly developing socio-economic environment, the era of retaliatory consumption in China has also ended. In the rationally returning Chinese market, many people think one-sidedly that China’s commercial division has been completed. In fact, the opposite is true. At this moment, the market is an unprecedented vitality.
Emergence of key conversion points
I heard a new business concept yesterday: face-to-price ratio.
The definition of the face-to-price ratio is as follows: The face-to-price ratio = 90% of the face value + 10% of micro-innovation
Some people will mistakenly think that the meaning of the word is that 90% of the key role in the success or failure of the product, micro-innovation only accounts for 10%, so as long as the product looks good, the other is not important.
This is not the case. The real concept is that 90% of the face value is equivalent to the basis of attracting consumers, and 10% of micro-innovation is the key conversion point of demand.
That is, in today ’sIn the consumer environment, face value is only a necessary and inadequate option for goods. Good appearance can attract consumers to initiate primary interest and stop in front of your store or product, but it cannot bring direct transaction results; the real key is the 10%, which is the value of micro-innovation.
The 10% of micro-innovation is not upside-down, but it has created a very huge consumer value.
It is also the last step for consumers to directly decide whether to buy.
NITORI and Boots
Let’s look at two business cases first.
In 1972, the Japanese home furnishing brand NITORI opened two stores in one go and began its own entrepreneurial journey. Thirty years later, NITORI went public successfully in Japan, with more than 400 branches all over Japan, and even went abroad to become Japan’s largest home chain store.
At first glance, this home furnishing brand similar to IKEA focuses on high value and innovative design. Its most frequent consumer category turned out to be home accessories. The category income once accounted for more than 60% of the total income, and it is still continue rising.
These good-looking products that comfort people’s lives from the subtleties have greatly increased customer stickiness.
Public data shows that as of February 2017, NITORI has 471 offline stores worldwide. These include 43 overseas stores. At the same time, it is still actively expanding its business. It plans to achieve 1,000 offline stores worldwide by 2022, and 3,000 stores by 2030.
Similarly, Boots, a British lifestyle and daily necessities chain brand, was established in 1849. With a high cost-effective and safe herbal ingredients, it has opened up national brands across the UK. Over 90% of British women have been in Boots each year. Shopping experience.
From the second-generation successor, Jesse Boot, Boots has begun to use herbal essences in cosmetics, and by applying top-grade SPA materials and fragrances to products, it has integrated civilian-level innovative SPA products. At the same time, chain business was launched to rapidly increase product sales channels.
NITORI started from a furniture store of less than 100 square meters, and has now become one of the global retail chain giants of home furnishings. Boots has transformed from a family-run herbal drug store in Nottingham into a British empire chain that specializes in daily necessities. There are currently more than 2,000 branches across the UK.
Reviewing NITORI and Boots, although one is a household brand and the other is a general merchandise brand, they have many similarities.
First, both are working to create a scene Upon activation, more purchases can be achieved in a limited consumption scenario; Second, both NITORI and Boots output through stable product formulas , allowing consumers to cultivate a tendency to choose without hesitation, which can stabilize multiple times Repeated purchases; Third, both parties have expanded their customer coverage through more competitive prices, more sophisticated designs, more SKUs, and more detailed categories. Successfully break down the barriers of the class, strive to be suitable for all ages, and not allow user factors such as income, gender, age, education, etc. to cause stratification of audiences. Fourth, they have all discovered business opportunities hidden in their own markets, using the creation and discovery of demand Small innovations have made big articles in details that were otherwise unconcerned.
In addition, NITORI and Boots have the same point in time: After the end of the explosive growth of the domestic economy, the market consumption mentality changed from retaliatory consumption to pragmatic rational consumption mentality.
Return to Consumption Reason
Through the case of NITORI and Boots, we can find an interesting thing. In a highly developed market, the traditional need has gradually been saturated, and the large and obvious gap has basically disappeared (or it can no longer pass the individual In the case of satisfying the power), it is very promising to find the “little needs” hidden in the details.
For example, NITORI met the needs of Japan at that time to improve the quality of life and create new life scenarios; Boots met the British women’s desire for affordable and innovative reform of SPA and a beautiful and exquisite life.
Will this happen in China?
In August 2019, the total retail sales of consumer goods was 3.39 trillion yuan, a year-on-year increase of 7.5%; the cumulative total social consumption from January to August was 26.22 trillion yuan, a year-on-year increase of 8.2%.
Consumption has become the core driving force for economic growth. The cumulative actual growth rate is as high as 5.66%.
On the surface, the growth rate of consumption is slowing down and even hitting the lowest growth rate since 2007. However, in terms of the proportion of consumption in total social demand, the first half of 2019 was the highest in the same period in the past decade and the same month Year.
Part of the reason is that Chinese consumers are returning to reason, from consuming for consumption, to focusing on the rational consumption of the product itself.
In terms of merchandise retail, the monthly merchandise retail consumption increased by 7.2% year-on-year in August, and the actual growth rate of merchandise sales was faster than the GDP growth rate, which has a significant role in driving economic growth.
The sanity of the Chinese consumer market is also in the process of regression.
A small sea of stars
So where is the small demand in the Chinese market?
At present, there are three types of small demand that can make money and have a bright future:
-
Small needs in daily details
-
Requirements for small products
-
Small needs to be created and discovered
At first glance, the three seem to be very similar, but the disassembly is actually a clear difference.
First is a small need hidden in the details of life. Compared with the latter two, this demand is more clear, that is, through the realization of a segmented scene, let your own Life is more quality and ritualistic. Meet the “small” needs that users tend to overlook, and find big business.
Second is the demand for small products. If you pay close attention to the market, you will find that this is also obvious in the market in recent years. In this year’s Double Eleven, the sales growth index of small household appliances such as health pots and egg cookers ranked among the top in the entire network.
According to the “In-depth Investigation and Development Prospect Forecast Report of China’s Health Pot Industry 2018-2023” released by Xinsijie Industry Research Center, the size of China’s health pot market reached 1.6 billion yuan in 2017, a year-on-year increase of 64% ,increase rapidly. In the first quarter of 2018, the health pot market size was 600 million yuan, which increased by more than 2.5 times compared with the same period in 2017. Similar to the proportion of other small kitchen appliances, the sales volume of the health pot online market is relatively high, accounting for about 70% of the overall market, while the offline market has a higher unit price.
Analysis of the egg cooker industry. The total sales of household egg cookers for the 12 months of 2018 were 173,733,400, a year-on-year growth rate of 134.34%, which was basically the same as the overall market for egg cookers. The Cubs household double-layer mini egg cooker ranked first in January for single product sales, with cumulative monthly sales of more than one million yuan. The prospect analysis of the egg cooker industry indicates that sales have increased by 211.27% in the last month.
The main creators of these growths are young consumers. The tide of market rejuvenation is unstoppable, and young people’s pursuit of exquisite life and ultimate experience has reached its peak. There is huge value and market behind these segmented needs. The mining and satisfying of subdivision needs is a major outlet in the current market. The last point is to waitCreate and discover small needs. This is the most elusive but also the most promising of the three types of small needs.
In most cases, consumers themselves have a hard time knowing their true aspirations. There is only one vague concept: Having a better lifestyle and life experience, but how to make this concept concrete Consumers, they ca n’t speak for themselves. The company that can implement this concept concretely is the company that “creates demand”. It shapes concepts and trends, and it will be actively selected by users.
Prophets and experimenters with small needs
The return of consumer rationality and the emergence of small demand means that the market is likely to breed a number of local brands with great micro-innovation capabilities similar to the NITORI and Boots in the same environment. Most likely, brands will still be born in the retail industry and the small commodity industry.
So as I figured out, I found such a company.
That’s Xiao Xiong Electric, a small home appliance brand that has just come to market in 2019 and was born in the hometown of appliances.
In essence, small appliances are low-frequency consumption. Once the transaction is completed, the communication between the enterprise and the consumer will end immediately.
For brands, only a more complete product line and more brand exposure can allow users to develop subconscious selection habits, and users will continue to choose them when demand arises again.
There are two solutions in this area for Xiaoxiong Electric.
One is to continuously meet the needs of user segmentation. As a national creative small household electrical appliance brand that has cut into the market with innovative categories since its inception, Xiong Bear Electric conducts product iteration and category innovation in two dimensions, vertical and horizontal. A yogurt machine goes from a single yogurt function to a variety of fermentation products, from a single home scene to office and outdoor scenes; from a yogurt machine to healthy small appliances such as egg cookers, bean sprouts machines, health pots, humidifiers, etc. As for the innovative product categories such as sausage powder machine and noodle machine, Xiaoxiong Electric has developed more than 30 categories and more than 400 SKUs in 14 years. Mining user segmentation needs through big data and brand interaction will continue to bring consumers New consumer experience and guide to a better life.
The second is to optimize the user ’s brand experience by improving the self-media matrix, building membership and customer service systems. On this basis, the brand word of mouth is used for secondary communication and diffusion, making it easy to be moved and substituted by the scene Of young people have completed the consumption closed loop of “seeing grass and planting grass and buying”. On the basis of non-intermittent product iterations and category innovations, viewing new products will become a habit for many consumers, once they appear on the marketWith new products, consumers ’first reaction was to‘ see if there ’s a bear for this product ’, thereby driving up traffic and repurchasing. This is the great value of micro-innovation.
Public information shows that Xiaoxiong Electric is using the nearly 1 billion yuan it has raised to build three intelligent factories to improve the degree of production automation and expand production capacity to meet growing market demand, thereby increasing product market share. Rate, main business scale and comprehensive competitiveness.
It can be predicted that the biggest change brought by this scheme is the reduction of costs and budgets, and the further guarantee of quality.
For small household appliances, their own profits are very transparent, and the functions of their products are also being improved. Therefore, what can be reduced is mainly cost.
In the era of OEM, Xiaoxiong has obtained long-term growth engine of enterprise manufacturing power by expanding short-term investment, building factories and production lines to support its multi-category operation model and reduce costs. This is an important support for Xiaoxiong Electric’s “national creative small household appliances” status.
Segmented products are the products of circle and scenario. To make micro-innovative good products truly reach users, the last step that companies need to complete is to lay a sufficient and complete sales channel for the products.
At present, the sales model of Xiaoxiong Electric is mainly online, supplemented by offline, to achieve omni-channel integrated operation. The actual pressure that physical stores may encounter is basically non-existent for Xiaoxiong.
To form a synergy of product segmentation, young users, flexible manufacturing, and perfect channels, can Xiaoxiong Electric be able to highlight the siege of Shunde, the “hometown of electrical appliances”, show the ambition of small demand, and become a brand with broad prospects in the era of consumer intelligence.
Small demand, big market
We always overestimate the happiness brought by big stimuli, and underestimate the satisfaction brought by small good. I think this is a philosophy of life in the era of Yanbian.
In the past, in an era of extremely scarce material, we would go to classmates’ homes to play a black and white game console, and we would get together to watch a big color TV. Later, we all had it. But we also have no time to watch TV and play games.
But small beauty has never disappeared. You can think of small appliances as cold machinery. But the designer made it look good by heart, and became practical with innovation, and it has life. It can be a boy’s love for a beloved girl. It can witness a person’s most lost time and bring him a touch of tenderness. It can accompany us to get married and have children, and let us believe in the greatness of time.
This is what I want to say, there is often true love hidden in small needs. p>
If the company is compared to a beauty, the shape of the product is equivalent to the skin, and the innovation power is equivalent to the beauty of the beauty.
The beautiful skin can make a company famous in the girlhood, and the outstanding bone can support its long-term charm.
Consumption frenzy is ending. In today’s new era of big retail, consumer rationality has gradually returned. Whoever can find small demand can make a big deal. The market has never solidified, and people with faith can still be vigorous.
On a global scale, no proving ground can prove the effectiveness of the long tail market better than China. The huge population base and super-consumption power make China’s market not ‘not worth doing business’ and there is no need for valueless users.
There is no small market, only big businesses that have not yet been discovered.
Let’s look at two business cases first.
In 1972, the Japanese home furnishing brand NITORI opened two stores in one go and began its own entrepreneurial journey. Thirty years later, NITORI went public successfully in Japan, with more than 400 branches all over Japan, and even went abroad to become Japan’s largest home chain store.
At first glance, this home furnishing brand similar to IKEA focuses on high value and innovative design. Its most frequent consumer category turned out to be home accessories. The category income once accounted for more than 60% of the total income, and it is still continue rising.
These good-looking products that comfort people’s lives from the subtleties have greatly increased customer stickiness.
Public data shows that as of February 2017, NITORI has 471 offline stores worldwide. These include 43 overseas stores. At the same time, it is still actively expanding its business. It plans to achieve 1,000 offline stores worldwide by 2022, and 3,000 stores by 2030.
Similarly, Boots, a British lifestyle and daily necessities chain brand, was established in 1849. With a high cost-effective and safe herbal ingredients, it has opened up national brands across the UK. Over 90% of British women have been in Boots each year. Shopping experience.
From the second-generation successor, Jesse Boot, Boots has begun to use herbal essences in cosmetics, and by applying top-grade SPA materials and fragrances to products, it has integrated civilian-level innovative SPA products. At the same time, chain business was launched to rapidly increase product sales channels.
NITORI started from a furniture store of less than 100 square meters, and has now become one of the global retail chain giants of home furnishings. Boots has transformed from a family-run herbal drug store in Nottingham into a British empire chain that specializes in daily necessities. There are currently more than 2,000 branches across the UK.
Reviewing NITORI and Boots, although one is a household brand and the other is a general merchandise brand, they have many similarities.
First, both are working to create a scene Upon activation, more purchases can be achieved in a limited consumption scenario; Second, both NITORI and Boots output through stable product formulas , allowing consumers to cultivate a tendency to choose without hesitation, which can stabilize multiple times Repeated purchases; Third, both parties have expanded their customer coverage through more competitive prices, more sophisticated designs, more SKUs, and more detailed categories. Successfully break down the barriers of the class, strive to be suitable for all ages, and not allow user factors such as income, gender, age, education, etc. to cause stratification of audiences. Fourth, they have all discovered business opportunities hidden in their own markets, using the creation and discovery of demand Small innovations have made big articles in details that were otherwise unconcerned.
In addition, NITORI and Boots have the same point in time: After the end of the explosive growth of the domestic economy, the market consumption mentality changed from retaliatory consumption to pragmatic rational consumption mentality.
Return to Consumption Reason
Through the case of NITORI and Boots, we can find an interesting thing. In a highly developed market, the traditional need has gradually been saturated, and the large and obvious gap has basically disappeared (or it can no longer pass the individual In the case of satisfying the power), it is very promising to find the “little needs” hidden in the details.
For example, NITORI met the needs of Japan at that time to improve the quality of life and create new life scenarios; Boots met the British women’s desire for affordable and innovative reform of SPA and a beautiful and exquisite life.
Will this happen in China?
In August 2019, the total retail sales of consumer goods was 3.39 trillion yuan, a year-on-year increase of 7.5%; the cumulative total social consumption from January to August was 26.22 trillion yuan, a year-on-year increase of 8.2%.
Consumption has become the core driving force for economic growth. The cumulative actual growth rate is as high as 5.66%.
On the surface, the growth rate of consumption is slowing down and even hitting the lowest growth rate since 2007. However, in terms of the proportion of consumption in total social demand, the first half of 2019 was the highest in the same period in the past decade and the same month Year.
Part of the reason is that Chinese consumers are returning to reason, from consuming for consumption, to focusing on the rational consumption of the product itself.
In terms of merchandise retail, the monthly merchandise retail consumption increased by 7.2% year-on-year in August, and the actual growth rate of merchandise sales was faster than the GDP growth rate, which has a significant role in driving economic growth.
The sanity of the Chinese consumer market is also in the process of regression.
A small sea of stars
So where is the small demand in the Chinese market?
At present, there are three types of small demand that can make money and have a bright future:
-
Small needs in daily details
-
Requirements for small products
-
Small needs to be created and discovered
At first glance, the three seem to be very similar, but the disassembly is actually a clear difference.
First is a small need hidden in the details of life. Compared with the latter two, this demand is more clear, that is, through the realization of a segmented scene, let your own Life is more quality and ritualistic. Meet the “small” needs that users tend to overlook, and find big business.
Second is the demand for small products. If you pay close attention to the market, you will find that this is also obvious in the market in recent years. In this year’s Double Eleven, the sales growth index of small household appliances such as health pots and egg cookers ranked among the top in the entire network.
According to the “In-depth Investigation and Development Prospect Forecast Report of China’s Health Pot Industry 2018-2023” released by Xinsijie Industry Research Center, the size of China’s health pot market reached 1.6 billion yuan in 2017, a year-on-year increase of 64% ,increase rapidly. In the first quarter of 2018, the health pot market size was 600 million yuan, which increased by more than 2.5 times compared with the same period in 2017. Similar to the proportion of other small kitchen appliances, the sales volume of the health pot online market is relatively high, accounting for about 70% of the overall market, while the offline market has a higher unit price.
Analysis of the egg cooker industry. The total sales of household egg cookers for the 12 months of 2018 were 173,733,400, a year-on-year growth rate of 134.34%, which was basically the same as the overall market for egg cookers. The Cubs household double-layer mini egg cooker ranked first in January for single product sales, with cumulative monthly sales of more than one million yuan. The prospect analysis of the egg cooker industry indicates that sales have increased by 211.27% in the last month.
The main creators of these growths are young consumers. The tide of market rejuvenation is unstoppable, and young people’s pursuit of exquisite life and ultimate experience has reached its peak. There is huge value and market behind these segmented needs. The mining and satisfying of subdivision needs is a major outlet in the current market. The last point is to waitCreate and discover small needs. This is the most elusive but also the most promising of the three types of small needs.
In most cases, consumers themselves have a hard time knowing their true aspirations. There is only one vague concept: Having a better lifestyle and life experience, but how to make this concept concrete Consumers, they ca n’t speak for themselves. The company that can implement this concept concretely is the company that “creates demand”. It shapes concepts and trends, and it will be actively selected by users.
Prophets and experimenters with small needs
The return of consumer rationality and the emergence of small demand means that the market is likely to breed a number of local brands with great micro-innovation capabilities similar to the NITORI and Boots in the same environment. Most likely, brands will still be born in the retail industry and the small commodity industry.
So as I figured out, I found such a company.
That’s Xiao Xiong Electric, a small home appliance brand that has just come to market in 2019 and was born in the hometown of appliances.
In essence, small appliances are low-frequency consumption. Once the transaction is completed, the communication between the enterprise and the consumer will end immediately.
For brands, only a more complete product line and more brand exposure can allow users to develop subconscious selection habits, and users will continue to choose them when demand arises again.
There are two solutions in this area for Xiaoxiong Electric.
One is to continuously meet the needs of user segmentation. As a national creative small household electrical appliance brand that has cut into the market with innovative categories since its inception, Xiong Bear Electric conducts product iteration and category innovation in two dimensions, vertical and horizontal. A yogurt machine goes from a single yogurt function to a variety of fermentation products, from a single home scene to office and outdoor scenes; from a yogurt machine to healthy small appliances such as egg cookers, bean sprouts machines, health pots, humidifiers, etc. As for the innovative product categories such as sausage powder machine and noodle machine, Xiaoxiong Electric has developed more than 30 categories and more than 400 SKUs in 14 years. Mining user segmentation needs through big data and brand interaction will continue to bring consumers New consumer experience and guide to a better life.
The second is to optimize the user ’s brand experience by improving the self-media matrix, building membership and customer service systems. On this basis, the brand word of mouth is used for secondary communication and diffusion, making it easy to be moved and substituted by the scene Of young people have completed the consumption closed loop of “seeing grass and planting grass and buying”. On the basis of non-intermittent product iterations and category innovations, viewing new products will become a habit for many consumers, once they appear on the marketWith new products, consumers ’first reaction was to‘ see if there ’s a bear for this product ’, thereby driving up traffic and repurchasing. This is the great value of micro-innovation.
Public information shows that Xiaoxiong Electric is using the nearly 1 billion yuan it has raised to build three intelligent factories to improve the degree of production automation and expand production capacity to meet growing market demand, thereby increasing product market share. Rate, main business scale and comprehensive competitiveness.
It can be predicted that the biggest change brought by this scheme is the reduction of costs and budgets, and the further guarantee of quality.
For small household appliances, their own profits are very transparent, and the functions of their products are also being improved. Therefore, what can be reduced is mainly cost.
In the era of OEM, Xiaoxiong has obtained long-term growth engine of enterprise manufacturing power by expanding short-term investment, building factories and production lines to support its multi-category operation model and reduce costs. This is an important support for Xiaoxiong Electric’s “national creative small household appliances” status.
Segmented products are the products of circle and scenario. To make micro-innovative good products truly reach users, the last step that companies need to complete is to lay a sufficient and complete sales channel for the products.
At present, the sales model of Xiaoxiong Electric is mainly online, supplemented by offline, to achieve omni-channel integrated operation. The actual pressure that physical stores may encounter is basically non-existent for Xiaoxiong.
To form a synergy of product segmentation, young users, flexible manufacturing, and perfect channels, can Xiaoxiong Electric be able to highlight the siege of Shunde, the “hometown of electrical appliances”, show the ambition of small demand, and become a brand with broad prospects in the era of consumer intelligence.
Small demand, big market
We always overestimate the happiness brought by big stimuli, and underestimate the satisfaction brought by small good. I think this is a philosophy of life in the era of Yanbian.
In the past, in an era of extremely scarce material, we would go to classmates’ homes to play a black and white game console, and we would get together to watch a big color TV. Later, we all had it. But we also have no time to watch TV and play games.
But small beauty has never disappeared. You can think of small appliances as cold machinery. But the designer made it look good by heart, and became practical with innovation, and it has life. It can be a boy’s love for a beloved girl. It can witness a person’s most lost time and bring him a touch of tenderness. It can accompany us to get married and have children, and let us believe in the greatness of time.
This is what I want to say, there is often true love hidden in small needs. p>
If the company is compared to a beauty, the shape of the product is equivalent to the skin, and the innovation power is equivalent to the beauty of the beauty.
The beautiful skin can make a company famous in the girlhood, and the outstanding bone can support its long-term charm.
Consumption frenzy is ending. In today’s new era of big retail, consumer rationality has gradually returned. Whoever can find small demand can make a big deal. The market has never solidified, and people with faith can still be vigorous.
On a global scale, no proving ground can prove the effectiveness of the long tail market better than China. The huge population base and super-consumption power make China’s market not ‘not worth doing business’ and there is no need for valueless users.
There is no small market, only big businesses that have not yet been discovered.
So where is the small demand in the Chinese market?
At present, there are three types of small demand that can make money and have a bright future:
-
Small needs in daily details
-
Requirements for small products
-
Small needs to be created and discovered
At first glance, the three seem to be very similar, but the disassembly is actually a clear difference.
First is a small need hidden in the details of life. Compared with the latter two, this demand is more clear, that is, through the realization of a segmented scene, let your own Life is more quality and ritualistic. Meet the “small” needs that users tend to overlook, and find big business.
Second is the demand for small products. If you pay close attention to the market, you will find that this is also obvious in the market in recent years. In this year’s Double Eleven, the sales growth index of small household appliances such as health pots and egg cookers ranked among the top in the entire network.
According to the “In-depth Investigation and Development Prospect Forecast Report of China’s Health Pot Industry 2018-2023” released by Xinsijie Industry Research Center, the size of China’s health pot market reached 1.6 billion yuan in 2017, a year-on-year increase of 64% ,increase rapidly. In the first quarter of 2018, the health pot market size was 600 million yuan, which increased by more than 2.5 times compared with the same period in 2017. Similar to the proportion of other small kitchen appliances, the sales volume of the health pot online market is relatively high, accounting for about 70% of the overall market, while the offline market has a higher unit price.
Analysis of the egg cooker industry. The total sales of household egg cookers for the 12 months of 2018 were 173,733,400, a year-on-year growth rate of 134.34%, which was basically the same as the overall market for egg cookers. The Cubs household double-layer mini egg cooker ranked first in January for single product sales, with cumulative monthly sales of more than one million yuan. The prospect analysis of the egg cooker industry indicates that sales have increased by 211.27% in the last month.
The main creators of these growths are young consumers. The tide of market rejuvenation is unstoppable, and young people’s pursuit of exquisite life and ultimate experience has reached its peak. There is huge value and market behind these segmented needs. The mining and satisfying of subdivision needs is a major outlet in the current market. The last point is to waitCreate and discover small needs. This is the most elusive but also the most promising of the three types of small needs.
In most cases, consumers themselves have a hard time knowing their true aspirations. There is only one vague concept: Having a better lifestyle and life experience, but how to make this concept concrete Consumers, they ca n’t speak for themselves. The company that can implement this concept concretely is the company that “creates demand”. It shapes concepts and trends, and it will be actively selected by users.
Prophets and experimenters with small needs
The return of consumer rationality and the emergence of small demand means that the market is likely to breed a number of local brands with great micro-innovation capabilities similar to the NITORI and Boots in the same environment. Most likely, brands will still be born in the retail industry and the small commodity industry.
So as I figured out, I found such a company.
That’s Xiao Xiong Electric, a small home appliance brand that has just come to market in 2019 and was born in the hometown of appliances.
In essence, small appliances are low-frequency consumption. Once the transaction is completed, the communication between the enterprise and the consumer will end immediately.
For brands, only a more complete product line and more brand exposure can allow users to develop subconscious selection habits, and users will continue to choose them when demand arises again.
There are two solutions in this area for Xiaoxiong Electric.
One is to continuously meet the needs of user segmentation. As a national creative small household electrical appliance brand that has cut into the market with innovative categories since its inception, Xiong Bear Electric conducts product iteration and category innovation in two dimensions, vertical and horizontal. A yogurt machine goes from a single yogurt function to a variety of fermentation products, from a single home scene to office and outdoor scenes; from a yogurt machine to healthy small appliances such as egg cookers, bean sprouts machines, health pots, humidifiers, etc. As for the innovative product categories such as sausage powder machine and noodle machine, Xiaoxiong Electric has developed more than 30 categories and more than 400 SKUs in 14 years. Mining user segmentation needs through big data and brand interaction will continue to bring consumers New consumer experience and guide to a better life.
The second is to optimize the user ’s brand experience by improving the self-media matrix, building membership and customer service systems. On this basis, the brand word of mouth is used for secondary communication and diffusion, making it easy to be moved and substituted by the scene Of young people have completed the consumption closed loop of “seeing grass and planting grass and buying”. On the basis of non-intermittent product iterations and category innovations, viewing new products will become a habit for many consumers, once they appear on the marketWith new products, consumers ’first reaction was to‘ see if there ’s a bear for this product ’, thereby driving up traffic and repurchasing. This is the great value of micro-innovation.
Public information shows that Xiaoxiong Electric is using the nearly 1 billion yuan it has raised to build three intelligent factories to improve the degree of production automation and expand production capacity to meet growing market demand, thereby increasing product market share. Rate, main business scale and comprehensive competitiveness.
It can be predicted that the biggest change brought by this scheme is the reduction of costs and budgets, and the further guarantee of quality.
For small household appliances, their own profits are very transparent, and the functions of their products are also being improved. Therefore, what can be reduced is mainly cost.
In the era of OEM, Xiaoxiong has obtained long-term growth engine of enterprise manufacturing power by expanding short-term investment, building factories and production lines to support its multi-category operation model and reduce costs. This is an important support for Xiaoxiong Electric’s “national creative small household appliances” status.
Segmented products are the products of circle and scenario. To make micro-innovative good products truly reach users, the last step that companies need to complete is to lay a sufficient and complete sales channel for the products.
At present, the sales model of Xiaoxiong Electric is mainly online, supplemented by offline, to achieve omni-channel integrated operation. The actual pressure that physical stores may encounter is basically non-existent for Xiaoxiong.
To form a synergy of product segmentation, young users, flexible manufacturing, and perfect channels, can Xiaoxiong Electric be able to highlight the siege of Shunde, the “hometown of electrical appliances”, show the ambition of small demand, and become a brand with broad prospects in the era of consumer intelligence.
Small demand, big market
We always overestimate the happiness brought by big stimuli, and underestimate the satisfaction brought by small good. I think this is a philosophy of life in the era of Yanbian.
In the past, in an era of extremely scarce material, we would go to classmates’ homes to play a black and white game console, and we would get together to watch a big color TV. Later, we all had it. But we also have no time to watch TV and play games.
But small beauty has never disappeared. You can think of small appliances as cold machinery. But the designer made it look good by heart, and became practical with innovation, and it has life. It can be a boy’s love for a beloved girl. It can witness a person’s most lost time and bring him a touch of tenderness. It can accompany us to get married and have children, and let us believe in the greatness of time.
This is what I want to say, there is often true love hidden in small needs. p>
If the company is compared to a beauty, the shape of the product is equivalent to the skin, and the innovation power is equivalent to the beauty of the beauty.
The beautiful skin can make a company famous in the girlhood, and the outstanding bone can support its long-term charm.
Consumption frenzy is ending. In today’s new era of big retail, consumer rationality has gradually returned. Whoever can find small demand can make a big deal. The market has never solidified, and people with faith can still be vigorous.
On a global scale, no proving ground can prove the effectiveness of the long tail market better than China. The huge population base and super-consumption power make China’s market not ‘not worth doing business’ and there is no need for valueless users.
There is no small market, only big businesses that have not yet been discovered.
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