China Food

Private domain 3.0 is coming. Let’s talk about private domain again

In the
private domain 3.0 era, the private domain needs continuous feeding of high-quality content, more refined operation mode and an ordinary heart.

Text: Pacino

Source: foodaily daily food (ID: foodaily)

Private domain is a thing that only emerged in 2018. According to the common saying in the industry, private domain is about to usher in its third wave of dividend period.
The first wave of private domain dividends was the first dividend, and wechat was the earliest private domain water testing group. At that time, the private domain could get good results by extensive mass distribution and screen brushing in the circle of friends; The second wave of dividend is the technology dividend. From group robots and fission to today’s CRM and SCRM, the rapid update iteration of tools and technologies helps the brand operate the private domain efficiently
In fact, we do not agree with the idea of private domain dividends. Unlike other new things, the private domain emphasizes the in-depth maintenance of the relationship, which actually has no dividend. As long as you can master the method of communicating with users and bring continuous value to users, it’s not too late to enter the private domain whenever you want.
Therefore, sharpening the knife does not mistake the woodcutter. At this time node, which is about to usher in private domain bonus 3.0, we still want to talk to you again. What is the private domain in foodaily’s eyes? How should we correctly operate the private domain? Where will the private domain go in the future?
Private domain = “private” + “domain”
What is a private domain?
This seems to be a somewhat outdated topic. The general view in the market is that private domain is a traffic channel independently owned, freely controlled, free and reusable by brands or individuals. Tiktok (official account), such as WeChat public address, jitter, red book account, etc., is usually the form of expression, such as brand name or personal tiktok, such as WeChat public address, WeChat group, Taobao group, jitter group, etc., or small program, APP.
Compared tiktok, Taobao, WeChat, jitter, Kwai, and little red book, brand or individual have strong control over private domain.
If you understand it this way, there is no essential difference between today’s private domain and micro marketing in previous years and traditional member marketing in earlier years. The above definition of private domain focuses on “private”, that is, it emphasizes the ownership and control of traffic, but foodaily believes that this is only the embodiment of “private” in the concept of private domain, so what does “domain” mean?
After studying many private domain operation cases, we believe that the “domain” here should refer to the field jointly established by the brand and consumers. This field is not controlled by the platform algorithm. Consumers can feed back product use suggestions to the brand in the “domain”, and the brand can also communicate with consumers at the marketing or brand strategy level in the “domain”. Of course, You can also sell goods. All behaviors in the “domain” depend on the original demands of participants, not just the business intention of the platform party.
Source: independently drawn by foodaily
To sum up, private domain should be a field where brands have ownership, but brands and users jointly enjoy the right to speak and vote. If we want to compare the private domain to a company, the brand is a legal person (shareholding legal person), and the user is a shareholder with decision-making power and participating in the operation of the company.
Source: independently drawn by foodaily
As for the distribution of the discourse power between the brand and users in the private domain, we believe that it depends on the original intention of the brand to establish the private domain.
If the brand wants to face consumers directly, listen to the real voice of consumers, and maintain a long-term communication relationship with consumers, in such a private environment, the brand and consumers should be in a state of equality and common voice;
If the purpose of establishing a private domain of a brand is to promote sales and re purchase, and to improve the short-term ROI as the first meaning, then such a private domain will be dominated by the brand, and consumers will only passively accept the promotion of the brand and participate in the purchase. It is worth reminding that the private domain with sales as the core orientation (or even the only orientation) has certain operation difficulties and risks. If you are careless, you will overdraw the consumer assets accumulated by the brand, and finally, the private domain will become a “dead domain”!
The most ideal private domain should be the third, which combines the original intention of the first two brands, both “soft communication” to maintain consumer relations and “hard promotion” to pursue immediate benefits. The difficulty lies in how to balance these two demands and the mutual undertaking and cooperation of various private domains in the whole private domain strategy of the brand.
Therefore, in order to do well in the third private domain, the brand needs to have a strategic vision and in-depth thinking about its internal business overall situation and external Internet ecological environment, which also reflects the micro embodiment of how the brand is digitized and intellectualized this year. The specific brand digital strategy is a more macro topic. Here, we point so far without in-depth discussion. The reason why we put forward it is to give the brand a reminder——
The private domain is only one link. While thinking about the private domain, we need to always remember to jump out of the private domain and see how the whole digital and digital intelligence strategy of the brand is formulated and how the private domain should cooperate with the implementation of this strategy.
The birth and outbreak of private domain
Let’s return to the micro topic of private domain!
We know that there must be a reason for the emergence of any new thing. So, what are the reasons behind the emergence of private domain? Foodaily believes that there are three main factors that jointly give birth to the new thing of private domain:
1. Flow gradually becomes retention, providing soil for the birth of private domain
Private domain is a concept derived from the emergence of the Internet. Its emergence must be closely related to the changes in the overall Internet environment. What changes have taken place in the Internet environment in recent years?
According to CNNIC, although the number of Internet users in China has been growing in the past five years, the growth rate has gradually slowed down. The number of Internet users is getting closer and closer to the total population of China, and the demographic dividend of the Internet has disappeared. Kwai Kwai monitoring tiktok data show that WeChat, micro-blog, jitter, tiktok, B station and other public platform MAU has not increased significantly over the past year, especially for WeChat and micro-blog, which still have the risk of being jitter by short video platform and quick food.
Photo source: independently drawn by foodaily, data source: CNNIC statistical survey on Internet development in China
Image source: independently drawn by foodaily, data source: Analysys
When it is difficult for the whole Internet traffic pool or the public domain traffic platforms to provide the brand with an attraction point from the perspective of traffic increment, the private domain, which can provide the brand with an infrastructure for fine operation of existing traffic, has become a new attraction point. Therefore, we will see that all major platforms update products for private domain operations. For example, wechat has always maintained the product strategy of Buddhism, but in the past two years, wechat has continued to push through the old and bring forth the new, and a series of tools convenient for brand operation such as video number, applet and live broadcast have been developed and improved. In addition, wechat search has also launched the direct function of the official area of the brand for brand search terms;
Tiktok is also true. For enterprise number, it has launched a home page that can display brand information, product posters, POI addresses of exclusive stores under brand lines, and enrich its challenge game, and develop special effects for brand challenge. Even, tiktok has been optimizing its algorithm, weakening the intensity of platform traffic centralization and improving the priority of group chat in tiktok products. This series of product improvement measures are to increase the private domain friendliness of the platform;
Xiaohongshu also has the same product logic. It launched 10 billion traffic support plan, business topic customization, offline store and online account Association and other functions for enterprise number, so as to facilitate the cold start of brand account on xiaohongshu and open up the user resources accumulated by online and offline brands.
Photo source: Hi tea WeChat official page, tiktok page
2. Epidemic catalyses the rise of DTC and helps private domain become the protagonist of brand marketing
Let’s start with the catalysis of the epidemic to the private domain.
There is no doubt that the two-year epidemic has made consumers more dependent on online shopping. More and more consumers are used to online shopping, watching news online and brushing short videos online So, tiktok DAU is over 400 million during the Spring Festival epidemic in 2020, up 60% from the same period last year. Similarly, the epidemic has also made many brands aware of the importance of online channels. Private domain is one of the most prominent online channels during the epidemic. According to the data disclosed by wechat officials in early 2021, the physical commodity transaction of wechat applet increased by 154% in 2020, and the Gmv of merchant self operated applet increased by 255% year-on-year.
The private sector has saved many physical enterprises struggling during the epidemic period. For example, the catering enterprise Xibei is an example of self-help with the help of the private sector during the epidemic period. During the epidemic period, the form of offline consumption is severe, and it is naturally difficult for Xibei, which has been rooted offline, to maintain its performance, so it began to find a way out. Through the enterprise wechat circle of friends, community and other channels, provide customers with takeout delivery and food material ordering services, and finally reverse the decline of business. It is said that during the epidemic period, the micro end revenue of Xibei enterprises has accounted for more than 80% of the total revenue. Through private domain operation, Xibei has obtained 3W + customers.
Online offline business is inevitable, and it is private domain that can effectively help realize online offline business.
Image source: screenshot of Xibei youmian village applet
DTC (direct to consumer) is one of the very clear trends in the global business field in recent years. The simple understanding is to remove intermediaries and deliver products and services directly to consumers. In the United States, the traffic undertaking of DTC is the official website of the brand. Because American consumers use PCs more frequently, they have already formed the consumption habit of visiting the official website of the brand.
China is different. Due to China’s rapid Internet process, PC soon encountered the rise of mobile Internet, so Chinese consumers did not form the habit of accessing the brand’s official website. Before the vigorous development of the mobile Internet, the flagship store on the e-commerce platform was the main channel of most brand DTC. Today, when the mobile Internet has long been developed and mature, the channels of brand DTC have become diversified. The e-commerce platform is only one of the choices, and the private domain is a more direct and efficient DTC channel than the flag store on the e-commerce platform.
Source: independently drawn by foodaily
In today’s domestic consumer goods market, we have witnessed that too many new consumer brands start from e-commerce and private domain. Through these online DTC channels, new consumer brands overtake in the corner, which has the momentum of subverting the traditional giants of the industry. Three and a half tons is a good example. For three consecutive years, it has become the top 1 in the category of “coffee blending” of tmall double 11, surpassing the traditional coffee giant Nestle. In June this year, three and a half tons completed a new round of financing of hundreds of millions of yuan, with a valuation of 4.5 billion.
Today, when cutting-edge brands rely on a variety of online channels to achieve DTC, why don’t we believe that the private domain will become the pig on the tuyere!
3. It’s difficult and expensive to get customers in the public domain!
I believe you must have heard such a famous saying: I know half of my advertising expenses are wasted, but I don’t know which half. This was put forward by John warnamek, the father of the department store industry, in 1861. It was called “Goldbach conjecture” by the advertising and marketing circles, which reflected that the brand and advertising circles were generally confused and helpless about the uncertainty of advertising at that time.
Today, 160 years later, with the maturity of the Internet and the penetration of big data into all walks of life like capillaries, there are more texts and data for the evaluation of advertising effect, and the uncertainty of advertising has been effectively solved. However, new problems have emerged. The vigorous development of the Internet and big data has indeed brought a visible amount of browsing / playing / comments, but it has also spoiled this session of consumers——
The emerging content and platforms are using all kinds of martial arts to grab users’ attention, which directly leads to users’ distraction. When multiple forces pull users from all directions, users are actually in a swing or even static state. This is not a good thing for brands. Brands try their best to create content and distribute it through various public domain platforms. Such a model has been difficult to form a sufficiently efficient joint force to obtain users. Even if they work hard to obtain users, it must have cost a lot.
A set of data from iResearch can prove that with the passage of time, the customer acquisition cost of public e-commerce platforms has remained high and even continued to grow from perfect to surplus Internet facilities. By 2020, the cost for mainstream e-commerce platforms to obtain a single user has risen to 50 ~ 70 yuan! The high cost of getting customers is squeezing the value of the public domain platform, but also forcing the brand to find a new way out.
How to retain the acquired users as much as possible and maximize the user value is the problem that the brand needs to solve, and the private domain, as the most effective DTC channel, is the best solution at present.
Photo source: iResearch Consulting’s Research Report on China’s private domain traffic marketing insight in 2021
To sum up, the emergence of private domain and the promotion of the station in the foreseeable future is an inevitable trend. Today, with the advent of the Internet, for brands, it is no longer an extensive stage in which business growth can be achieved by “shaking off their arms and working hard and shouting loudly”. It is the right way in the world to operate finely and maintain patience and peace to understand and talk with consumers.
Am I suitable for private domain operation?
We have said a lot before, just to answer a question: is the private domain in line with the current general trend? The answer is certainly yes, and high probability is also the trend in the future. Then, we, who have always been used to philosophical speculation, will ask a question: OK, private domain is indeed the general trend. Does this mean that I have to do it? It is obviously wrong to blindly follow suit.
Foodaily shares here several judgment dimensions to judge whether it is suitable for private domain operation for brand reference:
1. Brand life stage
The foundation for the establishment of private domain is that the brand must have a certain fan / user base. If it is a start-up brand and is in the stage of accumulating seed users, foodaily suggests starting from the public domain first! Honestly, let some people know you, understand you and trust you, and then select a certain level of users and guide them to the private domain. At this time, they can meet the prerequisites for private domain operation.
2. Product customer unit price and repurchase rate
According to iResearch’s research results, products with low Re purchase and low customer unit price are not suitable for private domain operation.
Most products with high customer unit price and low Re purchase rate have a long decision-making path. Brands should start from establishing a good brand image and reputation in private domain operation, and pay attention to additional services such as feedback collection and after-sales service after product purchase, so as to highlight the sense of being valued by consumers;
For high repurchase rate products, the first thing the brand needs to do is to maintain the relationship with users at all times. Whether it is daily communication or special node services, it needs to respond in time. In addition, for products with high re purchase and low customer unit price, special attention should be paid to the control of preferential strength, and different preferential schemes should be set for people with different labels. The formulation of preferential schemes should follow a criterion: it should be “fine” and avoid “flooding”.
Photo source: iResearch Consulting’s Research Report on China’s private domain traffic marketing insight in 2021
3. Comprehensive consideration of cost
A good private domain operation requires investment in manpower and technology. With the increasing willingness of all walks of life to get involved in the private domain, there will be an increase in manpower costs, technology purchase costs and technology development difficulties. As we mentioned earlier, the cost of getting customers in the public domain is increasing year by year. In the future, as the private domain is gradually widely used, the cost performance of the private domain may also decline. The brand needs to consider comprehensively in combination with its own business environment, product characteristics and growth strategy, and finally decide whether to carry out private domain operation and how much resources to invest in private domain operation.
How to do a good job in private domain operation
How to do a good job in the private domain is a more important issue than whether to do it. For the majority of brands, the importance of the private domain is self-evident. I believe that many brands, especially new consumer brands, are already in the stage of exploration, both in consciousness and action. Next, foodaily will provide you with a set of correct steps for private domain operation.
STEP1. Determine the main battlefield with wechat as the private domain
We mentioned earlier that in the overall environment of the gradual peaking of Internet traffic, in order to continue to maintain their attraction to the brand, all public domain platforms are trying to improve their functional settings, and even do not hesitate to update the underlying algorithms of the platform to increase their private domain attributes.
But for now, foodaily believes that wechat is still, and will be, the most suitable public domain platform for private domain for a long time in the future.
First, because wechat has the largest user group, it can provide brands in various industries and segments with sufficiently fine population classification, which is the basis for the establishment of private domain;
Second, the social attribute of wechat has long been deeply rooted in the hearts of the people. The essence of private domain is the deepening of the relationship between brands and consumers, and social networking is the core idea of establishing and deepening the relationship;
Third, wechat has the most perfect and mature private domain infrastructure, including personal number, wechat group, circle of friends, applet and video Number Different private domain modules are used to form mature content logic and user habits, and different modules are used to realize interworking and series connection, which can facilitate the brand to output and plant grass through various and multi-channel content in the process of private domain operation;
Tiktok, of course, is the most important factor that helps WeChat to pull the gap from other platforms in private domain. Compared with public domain platforms such as jitter, Kwai, B, Xiao Hong, Taobao, WeChat is the most friendly and brand friendly user interface, and the lowest algorithm intervention provides the most free soil for private sector operation.
Source: independently drawn by foodaily
STEP2. “Integration” of private domain operation
After in-depth research on the private domain operation of many brands, foodaily found that most of the successful brands in private domain operation have opened private domain accounts on multiple public domain platforms, and these private domain accounts will deliberately drain to the wechat platform in the process of outputting content, so as to guide the private domain traffic obtained from other public domain platforms to the wechat private domain system as far as possible.
Obviously, brands have clearly realized the important position of wechat in the whole private domain system, and take wechat as a platform for in-depth operation. The “private domain” of other platforms and wechat form a “joint force” to finally maximize the value of the private domain.
We call this operation strategy: private domain integration.
Photo source: 2021 new consumer brand private Marketing Report
Yuanqi forest is the best example of “private domain integration”. The reason why we say so is not that only Yuanqi forest is aware of the importance of “private domain integration”, but that we rarely see a brand established for only five years that can quickly get a piece of the soft drink giant’s mouth and has a great momentum of catching up. Behind the success of Yuanqi forest is the help of the new consumption wave, as well as its own factors, such as its deep cultivation in private domain operation.
Source: independently drawn by foodaily
The end point is official layout of the forest and the official public number, which is the starting point of the operation of WeChat’s private domain system. The end point is the shopping mall of the small program, the official store Mini program of the yuan forest, and the personal micro signal of the forest of yuan is the flow center of the system running. The WeChat official account is the official location of the WeChat.
The specific cooperation and circulation between each module are summarized in a road map. This is the current general playing method of consumer goods brands (including beauty brands) at the wechat private domain level. Many articles have introduced it in detail, and we will not elaborate here.
Source: independently drawn by foodaily
But there are still several points worth learning:
1. Differentiated operation of different function oriented private domains: we mentioned earlier that the ideal private domain should be both brand oriented and sales oriented, but how to balance the two needs brand thinking. Yuanqi forest provides a simple and feasible idea. The wechat private domain system of Yuanqi forest operates these two private domains almost completely independently, and Yuanqi forest sets two completely different operation strategies for these two private domains.
The brand oriented private domain is simple in link, mainly in the four modules, namely, personal micro signal “small yuan”, official account “gas forest”, official store Mini program “Yuan forest official shop” and WeChat group “Qi community”. The sales oriented private domain link is more complex, with more cooperation between each module. Taking wechat group as an example, according to the planning of Yuanqi forest, the brand oriented private domain group mainly carries out new product recommendation, after-sales service, daily communication with consumers, and even trouble sharing! The sales oriented wechat group is completely different. There are more frequent lottery interactions and the behavior of guiding consumers to the applet “yuanqijia membership store”.
Image source: screenshot of Yuanqi forest wechat group
2. The contents of different modules are regular and organized: foodaily believes that to judge whether the brand has mature and in-depth thinking on the private domain, it can be judged from whether the output content is planned and standardized. Yuanqi forest has done a good job in content planning and standardization. Taking the wechat video number as an example, Yuanqi forest has set up two video numbers, “Yuanqi family” and “Yuanqi forest”. The output content of Yuanqi family is mainly food DIY using the products of Yuanqi forest, which is more life-oriented and shortens the distance between Yuanqi forest brand and consumers;
“Yuanqi forest” is different. The output content mainly includes two aspects. One is the brand action of Yuanqi forest, including star endorsement and variety title. This kind of content is mainly to build brand spirit and establish emotional communication with consumers; Another kind of content is health knowledge popularization. Professional content can not only educate consumers, but also establish the professional image of the brand;
Therefore, looking back, the content of Yuanqi forest on the video number is not only regular and methodical, but also very hierarchical, creating the image of Yuanqi forest in the eyes of consumers from different aspects.
Image source: screenshot of Yuanqi forest video
Besides WeChat platform, the “convergence” of the private forest in the yuan Qi forest area is also mainly reflected in the platforms like Xiaohong, B station and jitter. The biggest feature is that the forest of yuan has deep understanding of each platform, and has already grasped the tiktok tools of each platform and can skillfully use it.
Taking xiaohongshu platform as an example, Yuanqi forest uses almost all the private domain tools of xiaohongshu. Including using the punch in tool to “playfully” implant the brand concept of “vitality and generosity”, associating the account home page with the official flagship store, bringing the product purchase link when publishing notes, launching a business topic # vitality Forest Full Score juice # for new products, and inviting KOL and Koc to participate in the topic communication The use of these tools seems insignificant, but it reflects the in-depth understanding of the private domain of xiaohongshu by Yuanqi forest brand.
Photo source: screenshot of Yuanqi forest xiaohongshu account
Like wechat, Yuanqi forest has also established an official community in xiaohongshu, and the group has been filled with 500 people. What is the concept of a private domain group with 500 people in xiaohongshu? The beauty brand “private domain king” perfect diary rises in xiaohongshu, but so far, the perfect diary has only 4 people in xiaohongshu’s private domain group! In contrast, the group of 500 people in xiaohongshu proves that Yuanqi forest takes great pains in private domain!
Photo source: screenshot of Xiaohong book group chat
STEP3. Cultivate soil suitable for private areas
The private domain really entered the public view in the 17th and 18th years. At that time, many Internet enterprises gradually realized that the traffic hit the top, so the private domain began to be discussed. Today, it is only three or four years. Therefore, the private domain is still a new thing that needs everyone to “care” for its growth.
Although the major public domain platforms are continuously developing functions and tools suitable for the private domain, this is only the improvement of infrastructure. Most importantly, the brand side needs to change its awareness and provide an appropriate “soil” for the private domain. The soil here includes not only the cultivation of talents, but also the renewal of organizational structure.
Organizational structure sounds a little esoteric. In short, the renewal of organizational structure is actually a reasonable redistribution of interests. So how to achieve rational distribution?
Adam Smith said that “the food and drinks we need every day are not from the favor of butchers, brewers or bakers, but from their self-interest”. People are animals pursuing their own interests, so the rational distribution of interests is actually the management of talents within the organization and putting the right people in the right position.
Private domain operation, in the final analysis, is to solve the problem of good people. Do a good job in consumer insight externally and talent training and division within the organization internally. After these two things are done well, why don’t you worry about doing a good job in the private domain by using the private domain playing method we shared earlier?
Key to future private domain success
What is the future trend of private domain operation?
Content is still the key to the future development of the private domain. In the past few years, the private domain has stayed at the stage of standardizing the process, exploring new playing methods and developing new technologies. Once this process is completed, the private domain will return to its essence – relationship maintenance, and good relationship maintenance requires content interaction. No user is willing to become the “private domain traffic” of the brand, However, if the brand can continue to provide high-quality content that is valuable to users, users are the brand’s “private domain friends”;
Private domain operation is bound to be more refined. When the brand private domain assets accumulate to a certain scale, the batch standardized content production and communication methods will lose their effectiveness, and the refined operation will become a trend. The first mock exam has been introduced into the AIPL system in the past few years. This model can classify people in a distance based on the relationship between consumers and brands, and facilitate the brand to touch and manage the crowd. Foodaily believes that AIPL will also become one of the refinement directions of the brand’s private domain operation in the future, not only limited to the AIPL in a single private domain module, but also the AIPL of the whole private domain system;
“Chronism” of private domain operation. Whether it is the perfect diary of the king in the private domain or the cutting-edge vitality forest in the private domain mentioned earlier, their private domain operation at this stage is still focused on sales transformation, which will be weakened in the future. The brand will carry out long-term maintenance and normalized communication to users through the private domain. At that time, Gmv and KPI will be less important. At the same time, Brands will no longer regard private domain as a life-saving straw. Only with an ordinary heart can they win.
reference material:
[1] Guanchao new consumption 2021 new consumption brand private marketing report
[2] The third wave of private domain dividends hit, but the way to obtain them has changed
[3] Ai Rui: Research Report on China’s private traffic marketing insight in 2021
[4] in this year, the private domain has become “war epidemic” and normalized to new growth
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