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In 2023, growth will become a major problem for e-commerce.
Just when domestic brands were re-emerging and resuming growth, Tmall, a star online store that had been established for 5 years, suddenly announced its liquidation and closure.
In this era when even "wool" needs marketing, the Tmall store shouted the slogan: "It's not marketing, it's really bankruptcy."
Immediately caused a sensation in the industry...
01
The debt was close to 8 figures, but the breakthrough was unsuccessful, and the company had to stop.
Not long ago, a Tmall flagship store called "Fomomy" suddenly released an announcement titled "Not marketing, we really went out of business".
The announcement tells the reasons for the collapse of the "Fomomy" liquidation and its wealth history.
"Fomomy" said the reason for the closure was "nearly eight-figure debt" that forced him to close the store. As a small team with no funding, "it went a lot further than we thought." ”
At present, the store has officially been out of stock, and all products and packaging will not be replaced if they are sold out.
As of press time, "Fomomy" stores only sell one flagship product.
It is understood that "Fomomy" was founded in 2018 with the original intention of becoming a sweet and cool makeup brand. He introduced several popular products and was selected by the fast book program group. Among them, the "Mustang Series" appeared on the live broadcast show of Li Jiaqi and Luo Wangyu, ranking third on the Tmall best-selling lip gloss list, and a number of products ranked first and Tmall sales list.
The unit price of Fomomy cosmetics is less than 100 yuan. The popular product "Mustang Series" is the best-selling product in the store, with sales of more than 20,000 yuan.
Some media contacted the brand's customer service and said that the main reason for Fomomy's collapse was that the business was not good.
To put it in more detail, there are too many products that have been copied.
02
Buying goods and plagiarism are the last straw that crushes them
Cosmetics brands can't launch new products quickly and find it difficult to gain a foothold in the industry. After all, not every brand has a lot of money.
As a five-year-old company, Fomomy has a large number of fans in the industry, but without enough resources, it can be difficult to compete with leading brands.
This also leads to erratic product sales and overstock. The original design cost was too high. In addition, the cost of investment in marketing and other aspects has also made Fomomy gradually unable to afford the funds due to the arrogance of the founders.
Fomomy brand partners said
"The cost of opening a mold proofing is very high, one SKU is hundreds of thousands, lip gloss has more than ten colors, and a batch of new products costs millions."
"Coupled with the volatility of e-commerce sales, sales are fast when they break out, but the cycle is also very short, and it is easy to sell too much."
To make matters worse, Fomomy launched several popular designs, but their appearance was quickly imitated by cross-platform imitators. As a result, Fermomi, who lacked enough resources, could only watch the country he had built slowly collapse.
Fomomy leader Double once said in Little Red Book
"The small pipe lipstick launched in early 2020, although it has a double appearance patent of small pipe and small cigarette box, has been copied nationwide."
I originally thought that the purchase of goods and assets was the last straw that broke the camel's back. Who would have thought that this was originally designed by Fomomy to open up the market, but now it has become a double-edged sword that hurts me.
Some insiders analyzed that the logic of "Internet celebrity makeup" is large-scale marketing, so the profit margin may not be very high, but the marketing cost is high, the speed is fast, and it is easy to go wrong.
03
Success is originality, and failure is originality
Original is a protective case and a double-edged sword.
It is not uncommon for brands like Fomomy to conquer the market by relying on originality but being blocked by plagiarism in the e-commerce industry.
It is not uncommon for original products to be plagiarized.
Do we have any countermeasures against plagiarism? Yes, but if there is a policy above, there will always be countermeasures below. We can only reveal a few things here -
When preparing to launch an original product, we need to establish a "barrier awareness" after the launch.
The so-called "awareness of obstacles" is raising the barrier to entry for competitors in the same industry.
In addition to the platform's official original protection mechanism, we can also consider using patents to establish barriers, which is also a necessary means of protecting many brands.
For example, the iPhone 1-3 generation was copied by Huaqiangbei in just a few months. So, to the iPhone 4, Apple added a slightly curved rectangular design to the appearance design, and invested tens of millions to build a barrier with polishing tools. So far, no apple imitation has appeared in Huaqiangbei.
Industry leader Apple raised prices, making it impossible for copycats to afford the investment.
This is difficult for normal brands, but we can spread this "cost" into different links, take advantage of certain advantages of the company or product, and fold a threshold that is difficult for plagiars to cross. For example, technology, brand, policy, market, etc., establish thresholds at each point, and then these thresholds form cross-cutting barriers and form a joint strike.
Remember the saying that obstacles are set by the original. The higher the cost of your barrier, the higher the cost of imitating others. In addition, this barrier may also become one of the ways to widen the gap between peers and create market scarcity.
This could be a permanent solution.
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