Image source: Figureworm Creative
In the early stage of the preparation of Double 11 every year, many sellers "waved the flag and shouted" in the circle of friends, using food and wine to boost the morale of employees and set up flags. The time has finally come to test the results, have you broken the order?
At the beginning of the month, the pre-sale of domestic double 11, Li Jiaqi and Wei Ya's record was remarkable, breaking the record. Looking at overseas markets, the double 11 promotion of cross-border e-commerce sellers can also be seen. Taking the Southeast Asian market as an example, on the day of the double 11 promotion last year, many sellers won thousands or even tens of thousands of sales, and this year is still the same.
However, in the eyes of many people, there is still a solidified imagination of the consumption level of the Southeast Asian market. What is the Actually Southeast Asian Market like? How do thousands of sellers at sunrise do it?
Analysis of local Southeast Asian cultures, leaving aside your stereotypes
In the past two years, the development momentum of cross-border e-commerce in Southeast Asia has been rapid. Shopee and Lazada, as the two major local e-commerce giants, you catch up with each other and are on par. Taking the Shopee platform as an example, as one of the main e-commerce platforms in Southeast Asia, Shopee covers Indonesia, Malaysia, Singapore, the Philippines, Vietnam, Thailand, Taiwan, Brazil and other sites, and still has the trend of expanding the market.
Based on the platform, what will be found around the consumption habits and local customs of the Southeast Asian market?
Uneven income levels: In several major markets in Southeast Asia, the per capita income of Malaysia, the Philippines and other countries is equivalent to the first-tier cities in China; Thailand and Vietnam are equivalent to the domestic third- and fourth-tier cities.
Potential development space: According to relevant statistics, Internet users in Southeast Asia account for 70%, accumulating nearly 400 million. But at present, Southeast Asian e-commerce sales account for only 5% of overall retail sales, compared with China's 31% and 26% potential dividend space.
But if you want to do a good job in Shopee, you also need to understand the local cultural customs, consumer preferences, and crowd portraits.
Taking the season as an example, the annual temperature in Southeast Asian countries is around 25 °C-30 °C, and the temperature difference between the coldest month and the hottest month is small, so it is not suitable for winter wear in Southeast Asia. According to the season, it can be classified as: November to May is the dry season, June to October is the rainy season, and the seller can choose the products according to the local climate change.
Combined with the high season promotion, among many countries in Southeast Asia, the Philippines celebrates Christmas the craziest, and December 16 to January 6 of the following year is the carnival cycle of locals, so sellers can focus on Promoting Christmas products in October and November, one step ahead.
Although Southeast Asia is adjacent to China and geographically close, there are still differences in customs and customs. For example, the most taboo animal in Malaysia is the pig. A seller told Hugo Cross Border, "When we first started doing the store, it was a whim. Without understanding the local culture in advance, a new dress of Peppa Pig was reported by a Malaysian buyer, resulting in a store closure, which was considered to be a tuition fee. "In terms of religious beliefs and folk culture, Southeast Asian countries are not the same, but this can also become another direction and inspiration for sellers to find business."
Finding potential blockbusters takes just three steps
Local customs and consumption characteristics require sellers to collect relevant text materials in the early stage, which can be familiar and understood. However, regarding the local e-commerce market trends, if sellers want to have more comprehensive and accurate guidance, they need to use data to analyze. Take the Shopee platform as an example, how to analyze the market it covers, which sites perform better, how to measure the selection dimension, how to tap the potential of the explosive model, etc.
1. Find the market
(Image source/Data screenshot of Shopee)
As shown in the figure above, in the "platform overview data" of The "platform overview data" of the major sites in the past 30 days and the comparison of sales, sellers can see that although the sales volume of The Malaysian site accounts for 7.57% of the entire market, ranking in the top three, the proportion of its turnover ranks first. It follows that in the Malaysian market, the average unit price is relatively higher than other sites, and the profit margin is also better than other sites.
2. Select categories
Still taking the Malaysia site as an example, what categories in the market are suitable for novice sellers to enter. The following figure shows the industry data of Shopee in the past 30 days, and the sales rate is filtered. Why filter for sales rates? Generally speaking, if the seller's store has 100 products, of which 50 can generate sales, then the store's sales rate is 50%.
The points of the frame in the picture are several dimensions that sellers should consider when choosing categories:
The higher the sales rate, the higher the acceptance of the category on the platform;
The number of products reflects the number of competitors in this category, and the smaller the number of products, the fewer the competitors;
·The 30-day sales volume reflects the market demand for this category, and the higher the sales volume, the greater the market demand;
The average price of the product reflects the average unit price per customer in this category, and the higher the unit price of the customer, the greater the profit margin.
To sum up, as a novice seller, when choosing an industry and category, you need to find categories with a small number of products, a large sales rate, high sales volume and a high average price, in order to effectively avoid the highly competitive Red Sea market and go straight to the blue ocean.
3. Find the explosive model
If the seller chooses the "Baby And Children's Clothing - Baby Clothing - Swimwear" tertiary category of the Malaysian site, what kind of style should be selected to cut into?
In the "new product" function of The Electric Bully Shopee, the screening out of the shelves in the past three months and the ability to produce sales in a short period of time are the explosive models that other sellers have measured. Sellers can use Pinduoduo's interface to search for goods and view their selling price.
Take, for example, a dress sold on multiple platforms for RM25.99 (RMB40) on Shopee and 19.9 yuan on Pinduoduo. If you take the goods on the platform, there is still a certain profit margin after deducting freight, handling fees, etc. At this point, the seller can purchase the same style to test the waters. Using this method for product selection reference, the single rate can reach about 80%.
The same site, on the Lazada software, can also be selected in the above way. As shown in the following figure:
(Source/Data screenshot of Lazada)
Sellers can search in the Soaring Products search box. As the name suggests, soaring products are recently sold particularly well on the Lazada platform, with a very high sales growth rate, which belongs to the outlet of the market, and sellers can use this data as their product reference.
Double 11 broke thousands of orders, and sellers used it to do Top1
Sellers can find that in the above methods, the data analysis of the software of The Electric Bully Shopee is used. Hugo cross-border learned that although the electric bully Shopee was only launched in July 2019, it was later than the launch time of software such as Seahawk and Tao Data. However, in just two years, Shopee has entered the "no man's land" in the field of cross-border e-commerce, bringing practical benefits to many cross-border e-commerce sellers.
As shown in the figure above, on this day last year, some sellers used the electric bully Shopee to select products, selling thousands of orders on the same day, and achieved Shopee category Top1 in less than a month. In the October promotion that just passed, many sellers also obtained tens of thousands of posts and high conversions through the data analysis of Shopee. The details are shown in the following figure:
Conclusion: At present, Southeast Asian cross-border e-commerce is still in a blue ocean, but also in a state of rapid development. It's not too late to enter even now. Judging from the data analysis of Theshopee, the platform still has many products and categories to be developed. In addition, some industry data show that the future Southeast Asian market still has a dividend period of 3-5 years.