China Food

You’ve been cheated by Vera

“ 
don’t be fooled by Weiya’s 3.5 billion overnight. We should grasp the core competitiveness of this industry in the new consumption era through the phenomenon.
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According to the daily list data given by the platform, the sales volume of Weiya live broadcast reached 3.5 billion, and that of Li Jiaqi reached 3.2 billion. This revenue exceeds 80% of the annual revenue of Listed Companies in a shares.
Live delivery with goods has become the key to the rise of new consumer brands, which has become an indisputable argument.
Many say it’s similar to the big changes in the star industry. In the past, stars were made by running tricks, but now they can become popular overnight through variety shows and internet fans.
Then, new consumer brands do not need to be linked in terms of channels, marketing and supply chain as Wahaha and Nongfu Shanquan do. Xiaohongshu, station B and live e-commerce can make their blockbusters no longer need a long preparation period.
But what I want to say is: don’t be fooled by the 3.5 billion goods brought by Weiya overnight. We should grasp the core competitiveness of this industry in the new consumption era through the phenomenon.
Consumer experience is always subject to channels
Since 2016, the trend of new retail has been surging in the circle of friends of various owners.
What is new retail? Ye Guohui believes that the ultimate goal of new retail is to merge online and offline and improve user experience.
“Brands must accelerate the reconstruction of user identification, analysis and reach, so as to improve the user experience.” At that time, ye Guohui was the head of tmall’s new retail platform division.
IKEA, a home furnishing retailer, has done everything in this respect. The all-weather live experience makes users feel that IKEA is home.
But the offline scene is a result of experience and a failure of experience. The user’s most basic and material experience has two aspects, the first is the price, the second is the space distance.
IKEA has only 18 stores in the Chinese market, and because of its large business area, all of them are located in the suburbs of the city.
In the case of energy consumption game, the best-selling book of economics and management, such a layout increases the space energy consumption of users.
● IKEA Chongqing IKEA at 2 am, shot by Huang Xiaojun
As a result, the convenience stores, experience halls and fresh supermarkets close to the community have become the hot pursuit of capital.
It should be emphasized that such market phenomena are only allowed to happen in China.
In a Kuznets cycle, the prosperity and decline of the construction industry can reflect the cyclical fluctuations, and the average length of the cycle is about 20 years.
In the past 20 years, there has been a construction industry phenomenon in China that is not available in the world.
China’s real estate led to the form of community aggregation, which takes away a whole place and builds more than a dozen buildings, and then suddenly gathers people of the same age class, the same income level and almost the same family structure here.
At present, there are 3000 households or 10000 people in a residential area in China.
This number is equivalent to a large town in Europe and America. In Europe and the United States, a small town will have a hypermarket, a lot of commercial support.
This has given the community offline stores and even large supermarket dividends.
Wang Wei, a legend of fresh food, once said that the small offline stores currently being pursued are just a transitional stage. In the future, the development of large-scale comprehensive supermarkets in the community is very likely.
● convenience supermarket in the community, photo / Sohu Focus
Of course, IKEA’s business model does not allow it to move big stores to the community.
After 22 years in China, the elephant finally bowed to the space energy consumption and went to the line within reach.
Online can also solve a problem, namely price energy consumption.
As one of China’s largest hand sanitizer brands, blue moon is in pinduoduo’s sales volume, accounting for 10% of the brand’s online sales, which is in line with Jingdong’s.
Users outside the Fifth Ring Road can buy cheap blue moon here.
In the past, suppose people bought a bottle of hand sanitizer in a couple’s shop, and the price was 13 yuan. In fact, its price composition is at least seven times of transportation, as well as about 3 yuan of rent, manpower and the benefit sharing of each link.
Back to the manufacture of hand sanitizer, the cost is only 3 yuan.
In the non internet era of channel property visualization, a bottle of miscellaneous hand sanitizer needs about 10 yuan of channel cost. Otherwise, it will not reach consumers.
Now, you can buy such a bottle of hand sanitizer on pinduoduo. Assuming the price is 7.9 yuan, the price composition is composed of 3 yuan cost + 4 yuan logistics + 0.9 yuan platform extraction.
If it is 8 yuan, the factory can earn 0.1 yuan.
Consumer goods are always subject to channels. Even online channels, there is still a channel cost of 4.9 yuan.
But the end-users spend less money, and the reduced price and energy consumption make many consumer goods go on the road of small profits and high sales.
● pinduoduo channel enabling agricultural production areas, photo / China business daily
In the new era of consumption, the path of consumer goods reaching end users has become flat.
A typical channel is that the factory products directly find Li Jiaqi and Weiya. These Taobao live broadcast, live broadcast and so on KOL tiktok, has become the channel.
In front of these personal channels, consumer goods still need to face the latest style, the lowest price of the whole network and other requirements.
Last year, the birds dove with Li Jiaqi and hugged Weiya. In fact, it is a game between the brand and the channel.
Offline, online, KOL, after the analysis is chilling, consumer goods back to the old era of channel king?
Product brand gives way to channel brand
More than that.
The influence of channel brand is gradually covering up the product brand.
In the past, if a new shopping mall opened in a city, UNIQLO, Zara and other brands were invited to settle in. Basically, the entry fee is free, and there is an exclusive policy.
Two years ago, the exclusive policy of Starbucks in shopping malls was poked out by lucky coffee.
But this phenomenon is becoming less and less. Excellent consumer goods brands may have a series of cooperation with shopping malls, but that kind of treatment has never been given again.
Prada, an Italian luxury brand, is a good example.
Prior to the announcement of moving into tmall, early light, the owner of Plaza 2000, Russell street, Causeway Bay, Hong Kong, China, revealed that the lease of Prada shop will expire in June 2020 and will not be renewed at that time.
Prada’s rent here is HK $9 million a month.
● Prada’s closing Hong Kong store, photo / Luxe
In front of the channel, the brand always has to bend down to speak, although your downstream discourse power has been highlighted how great.
The same is true for online channels. Pinduoduo’s 7.9 yuan hand sanitizer may be directly launched by the platform to a factory in the future.
After undertaking the national demand, the marginal cost of this factory will be reduced, and the price to the terminal will be lower. By that time, a large number of manufacturers and other hand sanitizer brands will be mercilessly squeezed out.
At present, pinduoduo is cooperating with kexinrou and plant protection in the field of napkin. The two factories can sell 200000 units per day during peak period.
Last year, pinduoduo even cooperated with zhaochi Co., Ltd. for the first customized TV, the 65 inch 4K TV was launched for only 1999 yuan.
When channels start to make their own products, they have nothing to do with brands.
This trend is becoming more and more intense. Yonghui supermarket has launched its own brand “optimization”. Since then, Jingdezhen’s porcelain bowl brand and Shunde’s small household appliance brand have all begun to be labeled with “Yonghui preferred” brand, occupying market share.
● Yonghui preferred private brand matrix, figure / zaker
The path trend of consumer goods reaching users is actually the process of establishing channel brand credit system.
Take the current popular KOL with goods as an example:
First, they share quality content socially. When sharing content, Rebecca, Yu Xiaoge, Weiya, etc. mainly tell users how to live a decent life with practicality and style.
The second is trust agent. They usually use their own experience to tell users what to buy and how to buy. Users trust the things recommended by these girls.
In order to better manage the trust of users, on the one hand, they are very cautious when receiving product promotion information. All the products to be promoted will be used by themselves and will be recommended to users if they feel really good.
Therefore, when consumer goods are in contact with your channels, the to B communication does not really need brands, but products.
In the future, the channel is unlikely to dilute its own brand to endorse a bad product.
Just like last year, Li Jiaqi was accused of false propaganda in promoting the non stick pot overturning and the promotion of Yangcheng Zhuangyuan crab. These not only attracted criticism from authoritative newspapers such as the people’s daily, but also made many netizens turn black.
Li Jiaqi responds to the non stick pot incident, photo / Weibo
When all channel brands maintain the same “credit system”, good products have more opportunities to reach consumers.
This is what product managers often say. Good products speak for themselves.
Only the upstream supply chain is left for consumer goods
As mentioned above: when all channel brands maintain the same “credit system”, the products with more opportunities to reach consumers must be good products.
Good products test the supply chain.
There are only two types of upstream supply chain construction
The first is to cooperate with mature upstream industrial chains, such as millet and three squirrels.
The second is to extend their own upstream, such as jiangxiaobai, Xicha, etc.
How to judge whether a company should build the whole industry chain by itself? When the industrial chain is not mature, that is, when the interface of each chain link is not clear, it will be very efficient for a company to integrate these chains.
With a classic case:
At that time, Ford was engaged in the whole industry chain. Iron ore was transported from upstream, and cars could be sold downstream. But Ford struggled to build the whole industry chain because it couldn’t find a suitable cooperation unit at that time.
Others can’t understand his playing method, and the cost is very high.
SAIC-GM Wuling has the same logic. After taking control of the upstream supply chain, Beijing Benz lost 400 million yuan a day. When it asked the government for permission to return to work ahead of schedule, Wuling changed the production of masks and mask machines in a few days, and provided 2 million mask donations every day.
Production data of Wuling mask, figure / official screenshot
Generally speaking, when the industry is mature, enterprises should only focus on the core and outsource the supporting facilities with small profits.
This kind of division of labor and cooperation to achieve efficient, a typical example is three squirrels.
However, for the design of upstream production mode, some economists also believe that industries with low technology dependence can transfer production and processing costs outward.
Therefore, although Xiaomi company has made the upstream and downstream integration model perfect, its mobile phone industry is highly dependent on technology. In fact, it is not suitable for outsourcing, but needs to do it by itself.
The brand of new consumer goods in upstream supply chain is jiangxiaobai in the field of liquor. Although the company seems to be playing Internet thinking, it has its own brewing base and has established an agricultural company to grow sorghum.
With the development of new retail, the discourse power of channels may be stronger in the future and the brand will aging. Moreover, the essence of brand business is that the enterprise collects brand tax from users, which is no more than the problem of how much brand tax.
But in the future, it will become a precious asset in the whole consumer goods field, and it is the upstream high-quality supply chain. No matter how the e-commerce platform, community e-commerce, content e-commerce and so on develop, the high-quality supply chain must always be one of the core competitiveness of the bottom.
For example, one day, tmall, pinduoduo, Wal Mart and non printing products launched a brand of self owned liquor, whose brand and culture may not be so important.
● upstream production base of jiangxiaobai
Everything is endorsed by channel influence, and consumers are more likely to accept it.
So what should consumer product entrepreneurs strive for? We should keep our own supply chain and let the products of liquor brands in this channel be their own brewing base real estate, even sorghum is planted in their own land.
It’s the foundation of the industry, it allows your business to make money consistently and steadily.
This foundation is solid, the product has been recognized by channels, and the brand building will be natural.
It is likely that even if your brand is not so publicized, the tax on that brand is less, but the competitiveness still exists.
I think the gross profit rate at this stage can be excavated in the aspects of organization management, supply chain allocation, etc.
Although consumer demand is from material to spiritual. But the premise of rising to the spiritual level (brand identity level) is that the foundation of material level has been laid.
It is the so-called consumption upgrading that it is not blindly influenced by brand marketing and the masses, but by independently judging the product quality and implementing rational consumption decision.
Is the brand competitive in the end?
In 2019, there was a hot debate in the circle about the final competitiveness of the brand. Zhang Rui, CEO of Shiqu, Meng awake, founder of Yaoye beef brisket, and kirongdong, founder of women’s knife technique, all participated in the process.
Many of the views are that China has no brand but a factory brand. After all, Coca Cola, Adidas, KFC and other super IP, in China can not find one.
Without brand, there is no premium, which is a loss in the international trade of consumer goods.
But there is no way. In China, the world’s largest consumer market, the impact of brand may be weakened in the future. The product is the king and will move towards a brand free consumer goods era.
Shen Shuai Bo, CEO of surging influence, mentioned in the previous article:
Swatch is the best price performance song in Europe; Walmart is the victory of cost performance in the Americas; decathlon is the price performance anti market behavior in luxury market in France, while UNIQLO is the ultimate cost performance representative of Japan.
China also has such a participant, Shen shuaobo said it was a famous and excellent product.
The common point of these brands is that they are squeezing brand premium to highlight the ultimate price performance of products. Through the product as king, even the management without brand, in fact, it will also produce a familiar brand in the end.
● UNIQLO Sanlitun store, Beijing, photo / xinhua.com
In the ordinary days, the source of all is explained, mostly by the population.
The post-90s generation in China has unprecedented acceptance of new things, especially sensitive to price and quality – such user characteristics have promoted the brand-free movement with the ultimate cost-effective.
As early as twenty-three years ago, UNIQLO was born in Japan.
In the fourth consumer era, Sanpu exhibition said that UNIQLO caters to the Japanese “new generation of mankind”. They were served to stroll around silver seats as children, and high school began to play in Shibuya.
But to the bottom, it is still the economic basis that determines the superstructure.
UNIQLO development cannot be separated from the Plaza Agreement. After the agreement, the yen soared and Japanese goods no longer had a price advantage in overseas markets.
Young people no longer dare to touch expensive and luxurious clothes, but they need “fashionable, durable, but not expensive”.
It is clear that China is experiencing such an economic cycle.
As the main consumer, the post-90s generation is facing the mortgage of housing and car loan, etc. when they graduate, they will return to the old mortgage.
Nielsen’s survey of 18-29 year olds shows that 86.6% of the respondents are “in debt” and have a debt of 120000 per capita.
● debt status report of Chinese consumer youth, figure /dt finance and Economics
It can be concluded that the current consumer industry in China is the best time to learn from UNIQLO, Decathlon and other brands.
Why should brands be deliberately built? Focusing on the construction of channels and supply chain is actually the accumulation of brand comprehensive strength.
The brand to the end, competitiveness is reflected in the ultimate cost-effective products.
Author: huangxiaojun; source: new business to participate, reprint has been authorized.
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