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What is behind the rise of
new consumer brand?
Five years ago, you asked young people at that time what they wanted to do if they started a business? Most would say, dry o2o.
Today, five years later, I think half of the people will say that they want to be popular and be content creators, while the other half will say that they want to be a new consumer brand and a little lucky brand they like.
As a matter of fact, the two types of entrepreneurs are the main ones who want to invest in me this year.
It’s easy to understand why there are so many people who want to be a celebrity, but there are so many people who want to be a brand. You may feel a little exaggerated. But I’d like to share two data with you, which can reflect that new consumer brands are enjoying unprecedented opportunities
Among the brands with a turnover of over 100 million in tmall double 11 this year, 16 have been in tmall for less than three years, most of which are new consumer brands. At the same time, grandmother brands such as big white rabbit milk candy, Huili sports shoes, Xie Fuchun, baiqueling and Ma Yinglong are also experiencing a round of recovery. According to the view of the business week, the biggest driving force behind this is the new generation of post-95 and Post-00 consumers, because since 2019, the post-95 and Post-00 consumers have become the largest consumer groups in the world, and this trend will continue until 2030.
So, what is behind the rise of new consumer brands?
You may think that this is a symbol of the cultural confidence of the new generation of Chinese.
Some people think that this is the deep differentiation of the domestic consumer market, and new consumer brands are all the champions of subdivision categories, rather than the well-known mass brands.
Others believe that this is the success of red man’s marketing and grass planting strategy.
And, this is the natural spillover of China’s supply chain efficiency approaching the world-class level.
All of the above are true.
However, what I want to discuss is whether the rise of new consumer brands is a temporary buzz or a truly mature product movement?
The answer is uncertain, but the trend is deterministic:
New economic variables, such as red man, algorithm, 5g and c2m, have resonated. China’s consumer market is undergoing unprecedented deconstruction and remodeling.
Recently, I happened to see a sentence worthy of our careful taste, “in essence, all expressions are copywriting, all outputs are creativity, all products and brands are content, and all content is advertising.”
Behind the rise of new consumer brands is the concept change of the younger generation of consumers, such as paying for feelings and recharging beliefs. Many new consumer brands sell half products and half copywriting, making products into content rather than function.
Short term marketing skills, long term?
Some of the brand founders and investors I recently contacted are becoming more and more rational. The imagination inspired by the new consumption concept is being consumed rapidly. It is difficult to arouse the interest of consumers by selling copywriting and feelings excessively. Many start-up brands have many competitors when they first show their talents.
Therefore, my view is: the rise of new consumer brands is a three-dimensional battle. Even the best marketing strategy has to rely on the new economic system and new infrastructure behind it. There are three cornerstones behind this
1. Product category upgrading support
I wonder if you have found that the rise of domestic products begins with the upgrading of electronic products. In the process of replacing function phones with smart phones, domestic brands account for more than 90% of China’s mobile phone market.
Product category change, quietly changed the people’s product value evaluation logic. Since then, the rise of new consumer goods and brands has not been a “new brand”, but a “new species”.
For example, Xi tea, Lele tea, Naixue tea, tea color and so on, created a new track in the process of “selling feelings” – new tea drinks.
For example, the puffed food of house cat diary has opened up a new track in the process of “selling stories” – New snacks.
For example, three and a half meals opened up a new track in the process of “selling experience” – Super instant coffee, which can be dissolved in water, hot water or milk in three seconds, and its taste is close to that of freshly ground coffee.
Another example is jiangxiaobai. In the process of “selling copywriting”, it has created a new track – new wine drink. In addition, there are two new tracks: new wine drink 1.0 (original jiangxiaobai) and new wine drink 2.0 (fruit jiangxiaobai and mixed drink).
For example, Chaozhou entertainment, sleep economy, anti sugar meal, plant food, smart small appliances, Guochao clothing and so on. These fields not only appear as a new brand, but also “species reengineering”. You and I don’t even know if there are similar products abroad.
All kinds of new domestic products and new species are actually the value carrier of a subdivided group. Nowadays, the consumption of the whole society has entered the “be era” from the “have era”. Consumers spend money not only to have, but also to show their own existence.
2. Iterative support of marketing mode
Since the beginning of 2020, the wave of nationwide live broadcasting has sprung up, and no one is not live broadcasting, no business is not transforming into live broadcasting e-commerce. Many people think that this is a short-term outlet. In fact, this is the inevitable result of the iteration of the marketing model, and this iteration will last for a long time.
The whole live broadcast e-commerce has been developing for six or seven years. So far, the head live broadcast has formed a behavior similar to TV promotion. A considerable number of users watch live broadcast to buy things not because they like the popular anchor, but because the price is too cheap. A lot of consumer brands cooperate with the head anchor, and they will be required that your products can’t be sold at a lower price within half a year.
In the short term, it’s like pinduoduo in a red circle. What I need to emphasize is that this does not represent the new economy of the red man. It is just the point and aspect of the new economy of the red man. It is the need of market education at present.
In the PC era, you need to enter a password for payment, and you need to use U shield for online banking. Now these steps have been omitted. Just brush your face, and you can even pay without password.
Now all the live broadcasting and delivery, from bandwidth, computing, payment and transaction to the last circle of friends posting and showing off, shorten the link from decision-making to purchase to within three minutes. This is totally unprecedented in the history of the Internet in China.
Live e-commerce is the main battlefield of celebrities, and the studio is an excellent laboratory for personalized output of consumer brands.
The rise of new consumer brands just inherits the potential energy of the new economy of red man. The typical case is perfect diary, with nearly 15000 cooperative red men, including more than 800 fans with millions of fans.
China Kwai Rui development 2020 annual report shows that: combined with micro-blog, WeChat, jouling, tiktok, Xiaohong, B station and Taobao live data, it is found that the number of red people who have more than 10 thousand fans in 2020 has reached 9 million +, and the average daily output of these red people has reached 37 million 500 thousand +.
In the future, there will be countless “perfect Diaries”, even though most of them will not achieve such a short-term and dramatic success, but it is an inevitable trend that live broadcast and celebrity marketing will become the standard for the future development of brand companies.
3. Infrastructure upgrading support
In today’s era, the biggest convenience of the rise of new consumer brands is that you can focus on brands without too much worry about other things.
What does “other” include? In the past, if you want to create a brand, you can’t do without a factory. You have to manage the media, channels, shelves, and there are several layers of distributors in the middle. You have to arrange many regional directors, city managers, and MDR… Ouch, it’s hard to think about it.
Now, from the product to the consumer, there is only one red man live broadcasting room. After only one layer of logistics, the consumption chain has been greatly shortened, and the efficiency of the connection between supply and demand has been greatly improved.
Today, the average express delivery cost of US $1 can be delivered to the whole country, and the brand can reach 800 million online shopping users anytime and anywhere. More than 1 million celebrities are directly connected with thousands of consumer brands through IMS world show platform, and celebrities have gradually become a mainstream and popular new career.
With the powerful blessing of the new infrastructure mentioned above, professional service providers will appear to create a new consumer brand, including product R & D, design, manufacturing, logistics, marketing and other links. You just need to focus on insight, connect and serve users, turn users or consumers into fans, and focus on brand.
Even if you are in the remote mountains, the edge of the territory, the corner of the city, as long as you understand the needs, can express, can communicate, you can create a personal IP, directly connected to the consumer brand, in addition to the celebrity anchor can bring goods, maybe a good article, a good picture or even a good music, can empower the brand, can bring goods. This is the power of new infrastructure to inject new consumer brands.
According to the 2020 China consumer brand development report released by Alibaba Research Institute, 80% of the products consumers consume on tmall are domestic products.
According to the data report released by the business data center of China first finance and economics, the search index related to “new domestic products” has shown a steady upward trend, and the consumption scale of online domestic products market has maintained growth in the past three years.
I often wonder, what are the fundamental characteristics of new consumer brands that are different from the past? Don’t traditional brands do live e-commerce and red man grow grass? Obviously not.
My conclusion is that the fundamental difference between new consumer brands and traditional brands is “decentralized” thinking.
1. The “central” thinking of traditional brands
Traditional brands are mainly “centralized” thinking. Don’t think that tradition is outdated. The “centralized” playing method of traditional brands is also very advanced.
Don’t think that traditional consumer brands are noisy and inefficient advertising bombardment. They will also grow grass, moisten things and seize the mind silently.
You can reflect on your favorite movies and TV dramas, we media articles you are most interested in, and app tools you use most often. Where are there no hidden advertisements? Those “centralized” consumer brands know how to eliminate your aversion, remove your vigilance, and then embed your thoughts.
They also have an ace weapon – intelligent recommendation. Today’s Toutiao and Taobao e-commerce’s intelligent recommendation mainly serve traditional brands, which shows that traditional brands can not only bomb in the air, but also fight in the street. They already have the ability of snipers.
However, the biggest regret of traditional consumer brands is to spend money to buy traffic and effect. KOL (red man and opinion leader) are regarded as cheap image spokesmen by them. They are addicted to the number of grass planting, exposure times, live broadcast sales, purchase and transformation and other effect indicators.
Can the effect be sustained?
2. “Decentralization” thinking of new consumer brands
You can take a look at those new consumer brands. If they are still “centralized” in the ecosystem of Taobao, they will not grow up. Why?
If you want to create a new category on Taobao today, you can’t afford these keywords and competitive search. You can’t compete with the original and mature traditional brands. What shall I do?
What is the brand thinking of “decentralization”? It’s about looking for value alliances and taste spokesmen.
Tiktok: you live without rehearsal, every day is a live broadcast, you feel a moment of feeling, share a song, or send a micro-blog, a circle of friends, a little red book, a jitter, and all the dots that you love to convey to your side, which may be neglected, may be bored, maybe, maybe, you will be liked, noticed, and loved. Imitation. As long as you are serious, there are always people in the world who like you.
Those who like you all the time, that is your values alliance, you can also become their taste spokesman, which is the core essence of red man. Everyone has a chance to become a celebrity. No doubt you can. You don’t have to pay for traffic and effects. Your reputation and influence will naturally spread and become your private traffic.
What is private domain traffic?
Although new consumer brands are not new, the rise of new consumer brands in this round is different from before. In addition to the awakening of the younger generation’s life cognition, entrepreneurs and brands rely more on the comprehensive support from social networks and private domain traffic.
The flow of public domain is often goods do not move, people move, supermarket shelves, e-commerce shelves are so. Private domain traffic is that people don’t move, goods move, products are designed as content or programs, so that you like the content and indirectly like the brand.
For example, zihi pot and Wang Satin’s rapid rise in popularity mainly rely on content to attract fans. Zihi pot even co creates with Tencent’s video hot variety show “tomorrow’s children’s orchestra season” content, which connects the content with the brand, indirectly realizes the fans of consumers and precipitates private traffic.
For many traditional brands, live delivery is often a cheap promotion, but the prices of some new consumer brands are very strong, even in the face of economic downturn.
For example, the new clothing brand gelix, the new tea brand Naixue, they do live broadcast not to bring goods, but to add wechat and build communities. Even if the product price is not low, but the value-added service is good, the fans and consumers will feel it is worth it.
Value is the sustainable connection. Private flow is the concrete carrier of value alliance, the ultimate value of all celebrities, and the underlying logic of the rise of new consumer brands. The essence of all this is “decentralized” thinking.
said at the end of
At the beginning of its development, all the new consumer brands that have grown up now almost do not need to put in competitive advertising. With a popular anchor or an article, you can bring the goods. The effect is dozens of times of the traditional way, and the cost may be only 5% or 10%. This is how these brands developed iteratively.
At the same time, red man resources empower new consumer brands at the level of new media communication and value connection.
At the communication level, short video and live broadcast are the media with the lowest threshold at present. It’s easier for consumers to understand short videos and new brands at any time.
In terms of values, new consumer brands start from the bottom and find common ground and good friends from the most common people. They share a favorite product. It’s not whether the price is expensive or not or whether the function is good or not, but “I’ve used it” and “we’re the same”.
Z generation consumers have reshaped the new rules of the game. All brands must be concise and to the point in terms of communication and values. This is a familiar way for new consumer brands to deeply cultivate the new economy of Hongren.
Author: Li Meng; source: Li Meng (ID: imslim Eng), reprint authorized. Joining the community: Cherry (wechat: 15240428449); business cooperation: Amy (wechat: 13701559246). It is recommended to read chobani’s 2020 | Unilever Zhizhuo meat maker goes on the market | fermentation technology produces protein | probiotics are not old yet, epigenetic has come | year end list of Japanese snacks | new opportunities for Chinese yogurt | will 2021 be the first year of cheese snacks? Daily new products: Isee trends | editor’s | reader’s
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