A new chapter in 2024 on Tmall, grasp the opportunity of brand growth
2024 has the opportunity to be a year for brands to regroup and grow upward.
Over the past two years, the drastic changes in the market environment have left many brands accustomed to playing tailwinds a bit overwhelmed. However, with the passage of time, not only are the signs of gradual recovery of the overall economy becoming more and more obvious, but both platforms and brands are gradually adapting to the changes, re-finding the rhythm of development, and returning to the growth track.
In this process, brand traders' market sensitivity, resource allocation ability and finding market growth points are all crucial.
Finding the brand's own strategic allies is an important part of this. At this year's Tmall TOPTALK, as a platform to share the strategic direction and growth mechanism of the new year with brand merchants, Fat Whale also smelled the changes and sincerity of Tmall for brand merchants, as well as the main theme of ALL in growth.
The changes of Tmall start from customer needs and focus on improving business efficiency
Improving business efficiency is a proposition that runs throughout.
For many brand merchants, no matter how the general environment fluctuates, the relationship with Tmall is no longer overnight, but an alliance for decades of common growth and development. Among them, there are not only mature brands that have achieved stable growth and self-improvement on Tmall, but also hundreds of new brands are born and grow rapidly on Tmall every year.
In the current highly competitive market environment, Tmall and brands are already allies. This year, Tmall's series of initiatives are also centered around deepening this alliance. With the core of helping brands achieve better growth, we provide more pragmatic and more realistic business and marketing strategies based on the real needs of customers.
Support for new explosive products and new brands
With greater intensity
Since last year, focusing on new product power has always been what our fat whale has been calling for. In a relatively downward environment, it is always the most effective way for brands to gain insight into consumer needs, produce new products that meet demand, and let product power speak for itself. This is also the essence of brands to establish communication with consumers and achieve business growth. This year, Tmall's support for new products is greater and more detailed.
Su Yu, general manager of Tmall Brand Marketing Center, mentioned on TOPTALK, "Tmall will continue to invest in super IP such as Super Brand Day, promote the double upgrade of brand marketing and operation, and create 5,000 small black box super new products and 100 new brands over 100 million yuan this year!"
Whether it is the annual event of the brand created by Tmall Super Brand Day, or the exclusive limited launch of new products on Tmall Small Black Box, they not only bring commercial growth to the brand, but also deepen the emotional connection between the brand and consumers, and further consolidate the brand value.
Whether it is Super Brand Day or Tmall Little Black Box, it has given birth to countless successful cases and promoted the innovation of brand marketing. These achievements have proved Tmall's absolute ability to help brands create new products and explosive products. As Su Yu said, new explosive products have always been the most important thing for Tmall, and brand merchants have taken out their most important new products and created their own BIG DAY with Tmall, which is also a win-win moment for Tmall and the brand.
To win, it is not only the explosion of sales, but also the brand preference of consumers. This is not only the significance of super IP, but also the significance of the brand's continuous investment and operation on Tmall to enhance the brand value.
In addition to mature brands, the new brand has also achieved good results from birth to more than 100 million super brands on the Tmall platform. For example, in the early days, brands such as Dreame and Spes were incubated and grown through the IP of Treasure New Brands, and they are still the top of the category. This year, Tmall will also continue to bring more treasure new brands to the foreground through platform investment.
Focus on user increment and create business increment for the brand
As the stratification of consumption and interests in the overall Chinese consumer market becomes clearer, brands will also focus more on people who are more in line with their own consumption portraits. From this level, Tmall's transformation from traffic increment to crowd increment has made the user's basic disk advantage clearer.
Where does the user increment come from? Here we have to mention two important strategic-level entrances [Juhuasuan] and [Tmall Priority].
At the moment when prices are sensitive, the entrance of distribution channels such as Juhuasuan has always been a strategic entrance for new customers to attract new customers. In addition to the targeted subsidy for new goods, the combination of brand marketing and live broadcast marketing gives brands more operational support in marketing, and new customers and promotions have become more pragmatic.
On the other hand, Tmall Priority has quietly grown into the largest sample distribution platform on the whole network, achieving 170 million sample samples in 2023 alone. In 24 years, Tmall will continue to upgrade, open up 10+ channels such as search, private domain, live broadcast, Taoke Alliance, etc., realize omni-channel sample distribution, and help brand merchants to open up the path from small sample pie to formal repurchase.
It is worth mentioning that this year we have observed that Tmall's customer mindset has become stronger. Tmall has taken note of the details of the brand's business needs and provided solutions. For example, on Tmall Priority, a new warehousing sample model was launched, which solved the basic logistics cost of the brand and helped the brand reduce the overall cost of attracting new customers by about 50%.
In addition to the increase in users, another major change in Tmall has greatly increased the weight of 88VIP members. As a "loss-making business" in the eyes of the outside world, 88VIP members are the most loyal users of the Taobao Tmall platform and the most valuable high-spending group for the brand.
It is understood that 88VIP users have reached 32 million last year, and they are still growing rapidly this year. As the most important high-net-worth users of Taobao and Tmall, their high spending power is self-evident. These high-quality platform users are also contributing to the brand's business growth.
At this year's TOPTALK, Tmall also proposed a plan to double the scale of 88VIP co-built equity brands, from 4,000 to 10,000, to open up stores and platform members, and provide more services and marketing methods for brands.
If it is the mission of the Internet platform to take into account the increase of new customers, then consolidating the rights and services of high-quality VIP consumer users is the common responsibility of the platform and the brand in the current market environment.
AI-driven, more flexible marketing mix play
Being more flexible and smarter is also a big feeling of this conference. In this year's TOPTALK, the heads of various industries on Tmall have supported the home of their own industries, and their strategies and resource allocation are also more focused on the front line, which I believe will also give brands in different industries more tangible changes.
For example, Wei Shan, general manager of the FMCG business department of Taotian Group, said that this year's Tmall FMCG industry will establish a dual-core operation system of "daily sales + big promotion" to improve the long-term operation endurance of the brand from efficiency value to brand value. Different industry lines also have more in-depth and appropriate thinking and coping strategies for their own industries.
It is more flexible, which is reflected in the openness of the platform to the customization of the brand's store and the data support of the brand in the refined operation of users, which provides a starting point for the brand to establish its own private domain moat, and also provides more certainty for the brand's long-term business growth.
Xiang Qiu, head of the merchant business of Taotian Group, revealed at the conference that the new Taobao content e-commerce system will also achieve in-depth linkage between shopping, Dabo, store broadcasting and store private domain, bringing more convenience and operational efficiency to merchants and consumers.
Regarding the private domain, Xiang Qiu also focused on the platform's own data analysis capabilities in the in-depth mining of user value, how to enable brand consumers to achieve long-term return visits, how to bring continuous repurchase, and how to bring continuous repurchase, and the private domain repurchase value under the Tmall system has become the core engine of the brand's anti-cyclical growth.
Finally, there is the unavoidable topic - AI. At the AI-driven level, Alibaba has always been a pioneer in the field of e-commerce. Ximei, general manager of Tmall's customer marketing department, also focuses on combining AI-driven integration of public, private, and commercial domain capability applications and trend capture, providing brand customers with a full range of data management projects for the whole platform and escorting brand growth.
For example, the AI upgrade of TMIC's Tmall New Product Innovation Center platform realizes faster trend data capture and quick return verification, and the LMA large model technology realizes the learning of consumer shopping behavior through algorithms to match product content recommendations under multiple materials, making it easier to match user behavior with the product itself. These initiatives and changes are integrated and applied to the daily life of our customers.
On the whole, the basic plate of brand management and the strategic fit of the Tmall platform and the improvement of the details of brand management are the highlights of this conference. Not only has it invested resources on a larger scale, but also from the creation of new brand products to the whole life cycle of the outbreak, Tmall is more suitable for the business growth needs of the brand in its industry in all aspects, which shows full sincerity.
How to grasp the brand
A "new" opportunity for business growth?
This year has been both a challenge for brand traders, but also an opportunity to be more flexible and creative. Rhythm becomes even more crucial. On the commercial soil built by Tmall, brands not only have the opportunity to examine the current position of their own brands, build a brand moat from the perspective of long-term growth, but also have the opportunity to find a breakthrough in business growth from the aspects of the activation of trendy products and the breakdown of the target group.
Brand value building, this year must be a good time
What is the most expensive in 2024? It must be the trust of consumers. We have seen Dong Yuhui's repeated records in live broadcast e-commerce, and we have also seen the infinite imagination brought by Fat Donglai's offline retail carnival, which is behind the high trust of consumers in the "brand".
The construction of the brand is inseparable from the shaping of value and the guidance of the mind. At this level, Tmall's comprehensive marketing capabilities not only have the opportunity to detonate online and offline topics with brands, but also shape consumers' minds through brand value transmission and product sales in the form of stores and live broadcasts.
Taking the current popular brand Jiaoxia as an example, as a lightweight outdoor lifestyle brand founded in 2013, last year, with the theme of "Easy Enough to Be Outdoor" and the blessing of the spokesperson, Jiaoxia and Tmall Super Brand Day successfully connected to more young consumer groups and achieved a breakthrough in the crowd. During this period, Jiaoxia gained 91,000 new customers, and 73% of the new customers were converted into members, successfully strengthening the lightweight outdoor brand positioning of Jiaoxia in the hearts of more consumers.
Capture of new trend changes
There is still a great opportunity to create new explosive products
The creation of explosive products is inseparable from the keen capture of changes in emerging consumer trends. With the support of Tmall Trend data, brands have the opportunity to find their own blue ocean opportunities. Last year's success story worth mentioning was Chivas Regal's "one square gaming sofa".
Based on the many pain points that will occur in the huge mobile game player market in games and daily life, such as long-term gaming or playing mobile phones, arm soreness and leg numbness, Chivas and Tmall Super Brand Day launched a square gaming sofa.
Together with Tmall Super Brand Day, the brand successfully penetrated the mobile game player circle through a series of online and offline aggregation and communication, creating an excellent case of creating explosive products for the industry. It is understood that Ouhao's new Chivas one-square-meter gaming sofa of the same model has sold more than 1,600 pieces, becoming the TOP1 sales volume of Tmall functional sofa category, and the brand has gained 13 million new customers through the live broadcast event jointly held with Tmall Super Brand Day.
It can be seen that with keen trend capture, strong supply chain product creation, and strong marketing capabilities, the brand has all the elements from seed to germination and growth into a big tree on the Tmall platform, which also opens up a new situation for the brand to drive the business growth of the whole store product through super single products.
Consumers break down and create opportunities to become category leaders
Focusing on a specific group of people, concentrating on building a bridge of communication with this group of consumers, and continuing to achieve the breakdown of consumer groups through the combination of IP construction, product innovation and enriching consumer communication means, and the growth they release is very considerable.
AT THIS YEAR'S TOPTALK, TMALL ALSO FOCUSED ON THE BREAKDOWN OF THE CROWD. For example, in the sportswear category, the former not only has leading international brands such as Nike and Adidas, but also local leading brands such as Anta and Li Ning. Through the linkage of online and offline marketing, it not only helped the brand consolidate its in-depth understanding of the running culture, but also achieved a breakthrough through the multi-dimensional marketing integration of the Tmall platform, bringing significant business growth
In 2024, there is still a big opportunity for brands to jointly create new trends and new categories, and in this regard, Tmall's marketing power, data support capabilities, and platform high-quality customer cluster capabilities can provide all-round support for brand new growth.
epilogue
Tmall is the beginning and the end
In today's emphasis on operational efficiency, brands need to pay more attention to the value of platform services.
Tmall has high-quality consumer groups and valuable consumer behavior data, which can support the brand from the innovation stage of its products. At the same time, more comprehensive on-site and off-site marketing capabilities also create more opportunities for brands to reach the brand, achieve network-wide momentum, and eventually convert into sales on Tmall, and establish a brand private domain to achieve a closed loop of value.
In response to what we said at the beginning, locking in long-term business partners, we need not only traffic allies, but allies who advance and retreat together in brand building and operation efficiency, and Tmall's valuable experience accumulated over the decades and its determination to increase investment this year.
In 2024, we believe that brands have the opportunity to move upward, grow and leap forward with Tmall.