China Food

Earn 1 billion and lose 200 million. Is the flow playing method dead?


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Wonderlab food substitute source: the flow of official microblog
is a dangerous shortcut,
, but it is reasonable as long as someone takes the order.

before the warehouse burst, any delivery is reasonable, but it is only a matter of efficiency.
and the benefits of saturation are obvious. At the brand level,
is an accelerator that uses the traditional principle of large exposure and penetration to penetrate every offline scene, and uses magical brainwashing to repeatedly appear and reach users in multiple dimensions, so as to help the brand quickly occupy the minds of consumers and quickly seize the market.
at the capital level, it can make the brand’s Gmv rapidly increase in the short term, and run to the first position in the category at a faster speed, becoming the head of the whole subdivision track, which is easier to be attracted by capital and the LPS behind capital who want to invest in unicorns. Generally speaking, the biggest advantage of saturated current input is high efficiency, but the disadvantage is that it costs money.
a well-known, far and near tiktok brand is now famous for its saturation flow. Now, sales volume of one month sales is stable by over 40 million. Even the new probiotics sold last year has been broken by billion this year. Ferocious investment makes it quickly climb to the first place in the category within two years of its establishment and become the absolute head of the track.
‘s excellent founding team and large-scale launch ability can make the brand easily recognized in the capital market in the early stage and quickly harvest multiple rounds of financing. But obviously, behind the rapidly rising GMV, there are hidden costs of tiktok, WeChat, and Xiaohong. This unhealthy growth model that relies too much on traffic will make the brand suffer from financing in the later stage. The saturated launch of
in the traffic dividend period is to take advantage of the favorable time and place. Just like Anker’s early play in Amazon, it can quickly occupy the market at a low cost. However, when the traffic cost rises higher and higher, the precision delivery efficiency can not catch up with the delivery cost. It seems that there are only two ways for traffic brands.
first, keep looking for rich takers.
it is not difficult for the current consumer market to find suitable employers. After all, the traffic bubble has not been shattered. The brand can still create high growth through traffic, and use the good GMV to melt into the next round of money.
it can even be said that as long as we try our best to run to the head of the track, even if the account book is rotten, there is probably capital willing to take over the offer. After all, capital gambles on the track, not the brand. Compared with the survival of a single invested enterprise, they care more about whether they have voted on the fire track.
the second is to quickly acquire high-quality brands after capitalization. Although I rely on traffic, I can buy a good brand that does not rely on traffic when I have money. Here are two typical cases, perfect diary and vitality forest. The
perfect diary was founded in 2017 and has just enjoyed the last wave of traffic bonus. 2012-2018 is a dividend year with low traffic cost, and the lowest cost of getting customers is only a few cents. Perfect diary started rapidly by relying on saturated investment flow, and improved the overall repurchase by relying on the rapid iteration ability of the supply chain. After having stable cash flow, it began to wantonly acquire mature beauty brands at home and abroad, such as xiaoodin, a fashion cosmetics brand, and evelom, a well-known foreign skin care brand. Although
focuses on cost performance, and the domestic supply chain can’t make products with great differentiation, as long as there is enough money to buy brands with both product power and brand power, it can still supplement the weaknesses of the whole enterprise and improve the overall customer acquisition efficiency of the brand.
Yuanqi forest simply set up a horse racing mechanism within the company, engaged in multi brand incubation and competitive strategy, and used a steady stream of sub brands to achieve the purpose of product differentiation. At the same time, it is also trying to expand its territory, such as acquiring never coffee and using a larger and larger brand matrix to obtain new traffic.

The source of air bubble forest water: Official micro-blog
wants traffic foam not to burst,
only has a down-to-earth product to make
, if the bubble will eventually burst, it’s only time later.
what else can brands kidnapped by traffic do to transform and save themselves before naked swimming?
the answer has long been commonplace, and we should make products in a down-to-earth manner.
although the capital market welcomes founders with investment background, the consumer market obviously recognizes product manager founders.
because this usually means that the brand can have more investment in product R & D, and strive for perfection in the polishing of product efficacy and design. Such products can not only avoid the “self Hi” of the founding team to the greatest extent, but also better meet the actual needs of consumers.
is like jiaonei, a brand of underwear head. Its two founders Zang Chongyu and Li Zechen are both designers and have more than ten years of working experience. This professional background has laid the foundation for the products in jiaonei. The extremely comfortable fabrics, the innovation of non sensory labels, and the avant-garde and fashionable design have all become the reasons for the high repurchase rate and the stickiness of fans in jiaonei. The importance of
products is self-evident. No matter the flow type brand or the channel type brand, what can live to the end depends on excellent products.
although the reason is simple, it is difficult to do. Many new consumer brands, in order to make the data as soon as possible, bring products with 60 points or even failing to the shelves; Some simply decided to leave the bulk of the cost to the marketing side at the beginning of its establishment, and the products were only produced by OEM at will.
Source of jiaonei pajamas: what kind of product is a good product that can harvest real re purchase?
I. The product must be able to solve the real pain points of consumers.
this article focuses on “truth”.
the pain point must be the real needs of consumers, not the groaning of the brand, let alone the artificial pain point created for selling goods.
many brands will enter the market from subdivided categories for misplaced competition, but segmentation often means no market. For example, how many consumers really need to put cosmetics in the refrigerator?
good products should conform to human nature and be able to pry new scenes or new people. For example, the popularity of instant food brands such as Ramen and jinmiantang has solved the needs of young people for convenient cooking in the home scene. People want to eat faster and better.
products want high re purchase, but also addictive.
the addiction here is pure, that is, to meet any one of the seven sins or to find a suitable position in Maslow’s demand triangle. The ultimate goal of any product should depend on this.
for example, it is popular in private areas, and consumers are competing to be Koc’s female fun brand adult candy. It can bring practical pleasure to women and instant joy to people. It can not only meet the short path, but also make people addictive. Consumers are willing to pay the bill and are more willing to spontaneously share it with their girlfriends.
give another example of the food and beverage category. Although brands are playing health cards with sugar substitutes, this is to meet people’s higher-level spiritual needs. However, it is often difficult for health products to be delicious. For food, health can only be drained, and delicious will lead to re purchase. Bad healthy food is often not addictive, which is bound to lead to the loss of users. Foods with a high repurchase rate are still products containing addictive elements such as salt, sugar and fat.
Adult candy fun toys source: Official
II. The product itself has high potential energy
. High potential energy products can generally bring people ultra-high expectations.
products with high product potential energy are often products with high quality and low price, reaching the level of large FMCG.
is like three and a half meals of freeze-dried coffee. The reason why it has achieved high re purchase among fans is closely related to its strong product potential. A cup of freshly ground coffee in offline cafes often costs 20 yuan, but a freeze-dried coffee only needs 6 or 7 yuan, which can almost perfectly restore the taste of the store, which provides consumers with an unexpected user experience.
another example is Wuling Hongguang miniev. The essential reason why it became a popular God car as soon as it was launched is that it provides a price higher than expected, inherits Wuling’s excellent product power and has very high product potential energy.
therefore, when making product iterations, the brand should make great efforts to improve the overall perception of the product, pull up the sense of user experience, or raise the perception of efficacy, and then lower the price or use threshold, so that consumers feel that it is really beyond expectations, which will lead to re purchase.
Three and a half coffee source: Official microblog
conclusion

the end of the flow brand, just like the famous saying in Hamlet, to be or not to be, that is the question.
in the bonus period of traffic, the brand can get customers at a lower cost and quickly seize the market. Traffic makes brands, making them the head of the track in the short term, recognized by consumers and recognized by the capital market.
when the bonus period of traffic has passed, traffic has become the shackle of the brand, putting them on a huge investment cost. It is very difficult to get out of the transition.
when deciding to adopt the saturated investment and flow playing method for a long time, the brand should know that it is on a road of no return. As for whether to raise funds as soon as possible or find ways to capitalize, it should be prepared early.
if saturation investment is only regarded as a temporary tactic, the brand needs to work hard on product strength and brand strength, upgrade products at the supply chain end on the basis of stable categories, and improve the precision delivery efficiency, so as to get rid of flow dependence and truly realize a soft landing.
after all, traffic is only tactics at best, not all. Products are the foundation of all weapons. On this basis, what the brand needs to explore is how to layout at the strategic level and realize the overall leap. When the bonus comes again, how to seize the opportunity and jump to the sky; When the dividend is no longer, how to hold the basic market and adjust the strategy in time.
Author: Han Jingyi; Source: botf future brand (ID: band of the future), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
join the community: Cherry (micro signal: 15240428449). Related reading

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