Singles' Day, the carnival of Chinese e-commerce, has been deeply rooted in the hearts of consumers for the past 15 years. However, for the participating brands, this shopping spree also comes with huge challenges: how to stand out from the fierce competition for low prices? In this article, we will discuss the challenges faced by brands and how to deal with them.
Challenges for brands
1. The vicious circle of low-price competition
At the heart of Singles' Day is still low-price competition, which has led to brands being forced to launch products at lower prices, falling into a vicious circle. In order to cater to consumers' expectations for discounts, some brands may price their products too low or even sell them at a loss. This gives the brand a momentary win in terms of sales, but poses a threat to long-term profitability.
2. Lack of cultural core
The lack of a deep cultural core behind the Double 11 shopping spree makes it easy for brands to be homogenized. At the same time as the price reduction, the uniqueness and core value of the brand may be diluted due to price competition, resulting in a decrease in consumers' sense of identity with the brand.
3. The cost of traffic is rising
With the rise of new marketing methods such as live streaming, the cost of traffic is gradually rising, and the cost of attracting users is becoming higher and higher for brands. This makes it difficult for some small brands to break through the competition and can only be marginalized by the oligopoly effect.
What to do
1. Break through low-price competition, pay attention to quality and service
Brands need to recognize that low prices are not the only means of competition, and excessive low-price competition may lead to damage to brand image. During the Double 11 period, brands can highlight their unique value and attract more consumers by improving the quality and service level of their products.
2. Build a brand culture and enhance brand identity
During the Double 11 period, brands can promote a certain brand culture to enhance consumers' sense of identity with the brand. By embodying a unique brand culture in products, advertising, etc., it attracts more consumers to choose them in the fierce competition of low prices.
3. Actively participate in live streaming, but beware of traffic costs
As a popular driving force for Singles' Day in recent years, brands can actively participate in live streaming, but they need to pay attention to controlling traffic costs. Choose the right platform and partner to ensure that the effect of traffic acquisition is maximized and the cost of participating in live streaming is reduced.
4. Advocate a repeat customer strategy
During the Double 11 period, brands should not only focus on attracting new customers, but also pay attention to the strategy of repeat customers. By providing better after-sales service and customized gifts, we can retain existing customers, improve customer loyalty, and lay a solid foundation for the sustainable development of the brand.
5. Pay attention to private domain traffic and establish independent channels
In order to get rid of the over-reliance on e-commerce platforms, brands can strengthen the guidance of private domain traffic during the Double 11 period, and guide consumers to shop through independent channels such as their own mini programs. This helps brands better grasp customer information and build an independent brand culture.
In the shopping carnival season of Double 11, brands need to continue to innovate and break through homogeneous competition, and achieve long-term development by improving quality, establishing a unique brand culture and effectively controlling traffic costs. Only by continuously optimizing the user experience and enhancing the brand image can the brand be invincible in the fierce competition on Double 11.