Consumption has escalated, we all feel it, but we just can't catch it! New consumption is still half veiled.
Clearly my products conform to the tone of the post-90s, why the post-90s don't pay! How to play new retail?
Channel sinking, depth distribution, terminal is king... Traditional Chinese marketing methods that have worked well in the past are on the wane! What about the new marketing?
Have you upgraded your business in 2016?
The 14th China Marketing Festival 2016, hosted by Sales & Marketing, was held in Beijing on Dec 15.
"Upgrade" was a popular word this year. Large to consumption upgrading, industrial upgrading, small to enterprise product upgrading, model upgrading, including marketing model and method upgrading, 2016, the wave of upgrading is more fierce than ever! Almost every company is feeling the pressure to upgrade, from traditional consumer giants like Procter & Gamble to upstarts like Xiaomi.
So where does the pressure to upgrade come from?
New consumption
All marketing is based on consumer psychology and behavior, and the changes between the old and new generations of consumers are as different as ever. The decline of traditional marketing is the result of this shift.
Mr. Rowengao, general manager of Sales and Marketing Magazine
1. Consumer stratification and differentiation
Consumers are changing rapidly, especially with a growing sense of chronology. Mr. Luo Wengao, general manager of Sales and Marketing magazine, pointed out that the differentiation of demand is more and more obvious, the circle of consumers, more and more obvious differentiation, which is the core change.
"In the past, a product can meet the needs of more than ten age groups of consumers, but now a dozen products may not be able to meet the needs of several age groups." "Said Mr. Roweng.
The era of "people by group" is coming. Xiao Xiao Bao Ma, for example, has gathered 2 million fans of young mothers through her wechat official account and earned more than 20 million yuan from her wechat store sales every month. Professional platforms are also gathering people. For example, it is a pleasure to meet me. Through such platforms, people who pay attention to marketing are gathered together to achieve accurate interaction.
2. Sogou: Vertical circle people
In the face of demographic fragmentation, the response of the most traffic-conscious search engines is the most representative. Sogou, which has developed rapidly in the search field in recent years, has launched search channels targeting vertical people, such as wechat, Zhihu and Mingyi. According to the latest financial results, the mobile search traffic of Sogou more than doubled in the third quarter from a year earlier, higher than the overall growth rate of the industry.
3. The most confident generation in Chinese history
The post-90s, post-95s and even post-00s are becoming the main force of consumption. What are their characteristics?
In the eyes of Liu Dehuan, a professor at Peking University, these consumers are entering an era of sophistication that emphasizes diverse experiences and concepts like fashion and fun, almost none of which are related to price.
Peking University professor Liu Dehuan
"This is the most confident generation in Chinese history, because there is no sense of poverty." "Liu Dehuan said.
Liu Dehuan mentioned a very interesting term: "slash youth". For example, a person who is a teacher at Peking University is also a Taobao shop owner. A person can be both an employee and a social network master. Such a blend of identities forces us to redefine and recognize consumers.
4. Three corroborations of consumption upgrading
Shen Tuo, sales and marketing researcher and founder of the Internet Plus Research Institute
Shen Tuo, a sales and marketing researcher and founder of the Internet Plus Research Institute, pointed out that many trends in 2016 have confirmed the upgrading of consumption.
For example: the continuing decline in instant noodle sales. In the past, a large part of the sales of products such as instant noodles, wahaha and eight treasures porridge were accounted for by the blue-collar class, but since 2012, the number of migrant workers in cities has significantly decreased, causing the decline in sales of these products. With the rise of O2O, 30-minute take-out food is delivered to your door, and people don't bother to make noodles anymore. From Beijing to Zhengzhou, a three-hour high-speed train ride, you don't need instant noodles to satisfy your hunger.
For example: custom home becomes one of the few bright colors. There are already several 5 billion companies.
Another example is the explosion of IP and the mainstreaming of the two dimensional culture. In 2017, the generalized population of China will reach 300 million, and the two-yuan culture will develop from a subculture to a mainstream culture.
New retail
The change of consumption leads to the change of retail mode. Where will retail go in the future?
1. Four predictions for new retail
Zheng Yongnan, vice chairman of Beijing Industry and Commerce Federation
Zheng Yongnan, vice chairman of the Beijing Chamber of Commerce and Industry, gave his own four predictions for new retail:
First, we must enter the Internet Plus era.
Second, big data will dominate our future business;
Third, the final focus should be on user experience;
Fourth, the future of business must be innovation.
2. FMCG: The overall growth rate slowed down, and some categories broke out
Ding Jie, global partner at Bain & Company
Figures from retail stores are the best indication of real demand. Ding Jie, a global partner at Bain & Company, reveals this shift in consumption, based on data from 12 Bain shopper reports since 2012.
Since 2011, the growth rate of fast-moving consumer goods has dropped sharply. In the first half of 2016, the overall growth rate was 3%, and this growth mainly came from the price increase. Among them, food and beverage continue to show negative growth, and the degree of high-end is low. However, Ding Jie also pointed out that while overall consumption growth has slowed, some categories have seen rapid growth, such as pet food, yogurt, water purifiers and international travel.
In terms of channels, e-commerce and convenience store channels maintained strong growth, the growth rate of supermarkets slowed down, and the sales of hypermarkets declined. But local, more down-to-earth retailers, such as Yonghui and RT-Mart, are bucking the trend.
3. E-commerce: content marketing
He Man, Red Belt lecturer at Taobao University
Since 2013, e-commerce has been growing by single digits instead of 30 percent per year.
"The original e-commerce pay attention to the cost performance, now is the best quality, the fastest, the most convenient, this is the first two years of this year the big difference." Taobao University red belt lecturer He Man said.
In his opinion, the traditional e-commerce model is to do explosive, the new e-commerce is to do content marketing. Content marketing model does not need to do the same as before, can operate a number of goods, so that the customer price can be done, but also can increase the active search.
4. Miyou.com: featured e-commerce
In the era of the rise of mobile e-commerce, "Miyougou" in the pattern of APP flooding, is dedicated to the most appropriate consumer preferences and product production, covering fresh, clothing, creative, festival, overseas five types of goods under the premise of straight hair, full transparency, accompanied by the "pre-sale" model and unique marketing strategy, 2 weeks of sales of 1.2 million. Such a unique e-commerce model will further cut the market share of traditional PC terminal e-commerce.
5. Physical retail: Are your members high value?
Retail data expert Zhao Xiaomeng
Retail data expert Zhao Xiaomeng used several data sets to reveal the reality of brick-and-mortar store membership marketing:
Membership sales in the vicinity of 50% is the qualified line, below 50% means the business is not controlled; High-value members return 10 times before the store has value; At least 15% of members are not operational, whether using wechat, phone or SMS; Only 17% of high-value members overlap with fans.
The statistics are brutal. Does this mean that member marketing is ineffective?
Of course not.
Zhao Xiaomeng has the answer: We must pinpoint high-value members and build effective connections.
"More data is not better, but more precision is better." Zhao Xiaomeng said.
6. Department store: "Double iteration" leads to domino effect
Retail expert Liu Hui
"There is no worst, only worse." This is how retail expert Liu Hui describes the department store industry. Is the department store industry really hopeless?
Double iteration is bringing profound changes to traditional retail. The so-called "double iteration" refers to: first, 890 iteration 567, that is, 80/90/00 generation iteration 50/60/70 generation; Secondly, the iteration of retail technology mainly refers to the transformation of physical retail brought by the Internet economy.
The result of crowd iteration is: the era of design is king; Cosmetics, home furnishing, cultural products, luxury goods, fixed products develop rapidly; High quality is more important than low price; The psychological experience of shopping and the convenience of shopping become particularly important.
The results of technology iteration are as follows: first, the management structure changes, the work of floor operation department is reduced, the data analysis function is transferred, the whole cashier system tends to disappear, and the planning department and member management department are strengthened. Second, cost changes, human resources costs, planning costs, energy costs tend to decrease.
High probability events of department store in the next three years: full use of wechat service number of department store; Department store cashier comprehensive promotion; Self-service cashier systems are increasing in department stores, cashiers are facing layoffs, cash registers may disappear, and coin bags become a thing of the past. Floor management managers, supervisors and other positions facing layoffs; There is a self-employed manager in the investment department.
New marketing
Light demand is not enough, but also a suitable supply, who can find a meeting point in the vast new demand for consumption?
Tao Shiquan, founder of Jiang Xiaobai
1. Jiang Xiaobai: Segmented entry to meet special consumption scenarios
Positioned young and fashionable youth Xiaojiu Jiang Xiaobai may be the closest to the new generation of consumer groups.
In the view of Tao Shiquan, founder, chairman and CEO of Jiangxiaobai Wine Industry, a good product is the premise of good marketing. If the product is thoroughly understood, marketing will naturally come naturally. In terms of resource allocation, Jiang Xiaobai has invested 4321, 4 parts into consumer research. 3 points input products; 2 points for brand investment; 1 is put into sales.
One of Jiang Xiaobai's biggest highlights in 2016 was the sharp increase in online sales. In Tao's view, the growth in online sales comes from increased consumer interaction.
In 2016, Jiang Xiaobai launched a 2.0 version of small wine -- expression bottle. The copy on the expression bottle comes from the original consumer. Which brings us back to the essence of drinking. The first need for drinking is expression. Why are we willing to post moments, Weibo?
I just want to be heard. That's what the expression bottle is all about. Scan the QR code on the bottle, enter the H5 page, write a sentence, and you can get a customized version of Jiang Xiaobai.
2. Oulin: Consumption upgrading and function segmentation
Li Baiqiang, brand general manager of Oulin Group
The upgrade of consumption brings the upgrade of Oulin products, the upgrade of brand operation ideas, and finally the upgrade of terminal performance.
The consumer group of Ou Lin is oriented to the middle and high-end. For consumption upgrading, Ou Lin launched new products with functional segmentation, such as water purification water tank.
"Olin is an advocate of a better life, of making the kitchen the center of the home." Oulin Group brand general manager Li Baiqiang said.
3. Miniso: Service is one of the reasons brick-and-mortar stores fail
Ye Guofu, founder of Miniso
Four years ago Jack Ma and Wang Jianlin made a bet: In the future, e-commerce would account for more than 50% of retail sales, and Wang Jianlin would lose 100 million yuan to Jack Ma.
In the view of Ye Guofu, global co-founder and president of Miniso China, the game between entities and e-commerce is a process of losing and losing. In the past three to five years, brick-and-mortar stores have been going out of business in large numbers. Starting in 2016, in the next three to five years, e-commerce stores will go out of business in large numbers and new entities will emerge.
Why did brick-and-mortar stores fail in the past?
Ye Guofu points out that service is one aspect. Too much manual intervention can not guarantee the service level, which harms the consumer experience of customers and increases the cost. The average salary of waiters in the clothing industry accounts for 20% of the cost, while Miniso accounts for only 7%. Because it is in the process of de-service, the shop assistants only need to do a good job in tally and damage prevention.
4. Qilu TV: Elite crowd is returning to TV media
Qilu TV advertising Department planning Director Zheng Guodong
Content is also a product, and it is also in the throes of changing consumption.
Now more and more traditional ground media in China are being fully marketed. What they provide is no longer a simple TV service, but more ground activities, which are inaccessible to the Internet. The self-upgrading of traditional media is also worth learning from.
Zheng Guodong, planning director of Qilu TV's advertising department, pointed out that in today's increasingly fragmented media environment, a brand needs focus if it wants to stand out and be successful. Qilu TV Station effectively covers 100 million people in Shandong and its neighboring provinces by wired and wireless. It has 298 brand customers, all of whom invest more than 5 million.
"People think that the new media is to manage the young group, the traditional media cover the old, the young, the sick and disabled, but in fact, many statistics show that the elite group is returning to TV media." Zheng Guodong said.
At the conference, dozens of enterprises and individuals received this year's China Enterprise Marketing Innovation Award and China Golden Ding Award. For details of the list, please refer to wechat 2 today.
The conference was supported by the micro-roar video live broadcast and Himalaya voice live broadcast simultaneously. The two screens were linked, and tens of thousands of people watched the conference together, which caused a wide range of hot discussions on the Internet.
At this point, the 14th China Marketing Ceremony in 2016 came to a smooth end.
In the past period of time, our work has been focused on "upgrading", and our focus has been more on the post-90s and post-00s. The rise of this consumer group has brought us panic, but also brought us more expectations for the future business model. It can be predicted that a new era of in-depth interactive marketing is coming!
