Merchants are selling like crazy, and the biggest dark horse platform has appeared this year

E-commerce newspaper Pro

2024-04-25 09:17Posted on the official account of Guangdong E-commerce News

"It doesn't cost a penny, it all depends on the natural flow, the sales volume doubles every month, and the return rate is less than 3 points. ”

In 2019, Ma Xiangrong was very surprised when he heard his peers talk about things for the first time. Before that, his impression of this platform was very vague, and a few keywords can be summed up: his daughter loves to play, the painting style is very trendy, and he often sells limited edition sneakers. The category of peers is 3C digital, and cost-effective small pieces such as charging cables do not belong to the fashion sports category. "I didn't expect people to spend a penny, so they quietly made money. ”

He researched on the Internet and unexpectedly found that in addition to shoes, there are many categories on Dewu that sell well. Ma Xiangrong was a little moved, he started to do brand distribution and agency business in 2014, and there were many brands and categories in his hands, but at that time, 70% of the business was offline, and only 30% was online.

He decided to try to get his hands on it. In the first year, the revenue volume was small, but it was stable and there was no big cost investment, so he chose to continue to explore. In 2022, the business quickly increased tenfold, in 2023 it doubled tenfold, and in two years, it increased 100 times. The longer he has been in business, the more he realizes that he may have found a "traffic depression" that has been ignored by many businesses.

Dewu was originally a SNEAKER (sneaker) community, and after expanding from footwear to clothing, bags, watches, and accessories, it has gradually become a popular "trendy" sports online shopping community among young people. Here is a group of the youngest group of users, some of whom are only in their teens, but with the passage of time, this group of users is rapidly growing into a new main consumer group, and their needs have become richer. But correspondingly, in Dewu, a lot of supplies are still "missing".

For merchants, this may be one of the few e-commerce platforms that still have a category bonus period. The overflowing consumption needs of young users have not yet been fully satisfied. Dealers continue to introduce goods, cutting-edge brands have moved new products here, and since 2023, leading brands such as Blue Moon, Dove, Starbucks, and Yili have also begun to join one after another. Behind the acceleration of the layout of things, there is the expectation of merchants to "find new increments".

Low-cost start-up, two-year sales increased by 100 times

How brand dealers do "explosive" business

In 2020, Ma Xiangrong decided to go to this "new platform" to test the waters.

He was very cautious and first introduced the digital brand "Baseus" that he represented at that time into Dewu. "We didn't do much promotion at first. Ma Xiangrong recalled that he purely flipped the goods from offline to up, but just by relying on the natural transformation of the brand effect, the monthly revenue almost ran more than 100,000 yuan, which left a deep impression on him. After verifying the business path, Ma Xiangrong quickly expanded his manpower and studied how to do business on Dewu.

He began to test, from 3C digital pull-through to trendy toys, life and home, bags and accessories and other categories, and gradually mastered a rule: IP co-branded models are particularly popular in things. So from 2023 onwards, he began to consciously develop in this direction, focusing on Disney, Sanrio, and Ruby's co-branded brand products, which has also become the key to the explosive growth of sales.

[The popularity of IP co-branded models in Dewu continues to rise]

In October 2022, Ma Xiangrong's team put a Disney doll on the shelves. Half a year later, this doll became a super hit in Dewu, with more than 280,000 sold in just one link, and the turnover of a single product reached nearly 20 million. Looking back on the birth of this popular model, Ma Xiangrong described the process as unexpectedly "smooth", and because of the "content-transaction" planting model, the operation logic is very simple, and the input cost is not high.

"After the new product was launched, we prepared 1,000 dolls for activities on the content side, and selected some influencers to send them for free. In the second and third months, the Spring Festival came immediately, and Ma Xiangrong clearly felt that the platform ushered in a wave of traffic peaks, and "the conversion began to climb continuously". In May of the following year, Ma Xiangrong, who realized that Disney dolls had the potential to become a hit, decided to push it again. "At that time, we just hit 520, so we pushed it again, and it exploded all at once. ”

The whole process only took about half a year, and there were only 4 people in Ma Xiangrong's team who were responsible for the trendy toys category. They later concluded that "Dewu is a very suitable place for incubating popular models." And the popularity of the hit has been maintained for a long time. Other platforms generally have a shipping cycle of half a year, but now that it's been more than a year, we can still sell more than 10,000 Disney dolls every month. ”

Ma Xiangrong believes that this is because Dewu is different from traditional e-commerce, there is no concept of "store", more "single product" logic, and the path of content + transaction is very smooth. One obvious difference is that because there is no store, the conversion path is very short: click on a single item to buy after seeing the grass content, or click on a single item to buy after a direct search. All traffic converges on a single link.

In Ma Xiangrong's view, this is also an important reason for him to continue to increase. "In traditional e-commerce platforms, because of the existence of 'stores', the brand side and the IP side are more powerful, and it is difficult for agents to PK with them head-on. And in the role of agents, there is a lot of inventory pressure. At present, our investment accounts for about 3 points of revenue, which is much lower than that of other platforms of about 10 points. Moreover, plush toy gift boxes and special offerings are very popular in Dewu, and its users have a strong sense of "gift". ”

Ma Xiangrong predicts that in 2024, his business in Dewu will continue to grow rapidly, and the scale can reach 100 million. "In fact, many IPs are very popular in Dewu, but its back-end supply is insufficient, which is a growth opportunity for business. In the future, we will focus on IP and do more sub-categories. For example, at present, we are preparing a co-branded model of the 'Jii Kawa' IP, which is a Japanese IP that is very popular among young people. ”

During the same period, not only in the field of trendy toys, but also in beauty, luxury, and digital, many dealers like Ma Xiangrong poured in. A gold dealer with several brands under its umbrella will rely on diversified pallets, fast commodity supply, and high-quality cooperation, and will have sales of more than hundreds of millions of dollars in Dewu in 2023, a year-on-year increase of more than 800%;

SF brother sends goods once every 3 hours

How Niche Brands Tap "Precise Customer Groups"

In May 2022, Wang Qi brought the badminton brand "Purui" founded by himself to settle in Dewu. At first, he wanted to "engage in publicity" in Dewu, and did not want to do business, "The quality and volume of the experts in Dewu are good, and compared to communicating with users, transactions are secondary." But to his surprise, in the first month of entering the goods, he began to issue orders.

As a new brand in a niche segment, Purui is facing more fierce competition on traditional e-commerce platforms, because it is a mid-to-high-end product, the price is not low, there is no brand effect in the early stage, the budget is limited, and the start is more difficult. How to find precise consumer groups with "common hobbies" has always been a pain point in the development of Priry. "We were founded in 2017, and we spent the first three years grinding the supply chain, and it was probably not until 2020 that we officially promoted the brand to the outside world. In the early days, the main sales channels were also in the private domain, and we accumulated more than 10,000 users in places such as badminton enthusiast forums. ”

Wang Qi revealed that Purui has been expanding channels in the past two years, settled in Tmall at the end of 2018, started to do Douyin in 2019, and settled in Jingdong and Kuaishou in 2021, and the annual sales have also increased from more than 6 million in 2020 to 18 million in 2021. It was in the fourth month after he realized that the "spending power" of Dewu users was realized.

In September 2022, Purui launched a new candy-colored badminton racket, and the team promoted it in the private domain community as usual, and spent 70,000 yuan on the short video platform for marketing and advertising, and other platforms such as Dewu were launched at the same time. "What I didn't expect was that this beat had a mediocre response on the short video platform, but in Dewu, it sold more than 100 pieces in the first month of the new one, and thousands of pieces were sold in the third month, and at most it could reach more than 1 million yuan a month. ”

Wang Qi later discussed with the team repeatedly that it was because the users of Dewu were "young" enough. "Compared with other platforms, there are many users aged 18-25. And Purui's new paint is very jumpy, choosing candy color, and the style is also two-dimensional, mecha, and the acceptance of young users is much higher. ”

Wang Qi, who was born in 1988, was an early user of Dewu himself. "We've also looked into why people are willing to buy something at Dewu. First, because Dewu made a fortune from trendy shoes, the accumulated platform mentality is 'fidelity', and the second is that users feel that the service experience is better, the products have quality assurance cards, the logistics are sent to SF, and the overall packaging vision is also unified, giving people a feeling of exquisiteness. ”

"Especially for male users like me, everyone knows that guys are very afraid of trouble and don't want to waste too much time on selection. It's best to be able to shop at a glance. And Dewu is exactly such a logic, I remember that I wanted to buy a pair of sneakers before, and when I searched on the traditional e-commerce platform, I had to turn dozens of pages and 20 pages away to find what I liked, but a single item corresponds to a link in Dewu, and it is very convenient to pick something. From buying shoes in the past, to buying clothes, pants and even daily necessities, this is a natural extension and shift of demand. ”

In 2023, the proportion of Dewu in Purui's revenue has risen to 1/3. To accomplish this achievement, Purui only used one operation to maintain the business operation. Wang Qi sighed, "I was most impressed during the Chinese New Year, and I was sending orders almost every day, and the SF brother came to deliver the goods every 3 hours." In the future, we will continue to optimize and launch more customized new gift boxes in Dewu. ”

The influx of leading brand merchants is accelerating

Do business for young people in Dewu

According to official data, Dewu has covered more than 20 categories, and many categories have ushered in rapid growth: the digital 3C category has grown by 200% against the trend, the household appliances category has doubled, the gold jewelry has increased by 300% year-on-year, the average quarterly growth rate of the home furnishing category has exceeded 250%, the jewelry accessories have doubled for three consecutive years, the wine has tripled for two consecutive years, and the trendy toy stationery has grown at a rate of more than 100% per year.

A brand said that Dewu users attach great importance to the sense of quality, as long as the texture is in place, and does not overly pursue "low prices", which makes the brand's profit margin more abundant. "The profit earned by using 120 million business volume on other platforms only needs to be 8000w."

There are also brands that take a fancy to "simple operation" and controllable comprehensive costs. "There is no need to invest in advertising costs, the cost of streaming + promotion of traditional e-commerce platforms accounts for 30%, and the cost is basically natural flow, the cost is much lower, and the input-output ratio is higher";

"Low return rate" is more important for some merchants. The relevant person in charge of the fashion shoe brand Lily Wei said that traditional high-heeled shoes are prone to high return rates due to shoe type, size and other problems, and Dewu has the lowest return rate among all the platforms it operates.

In June 2022, Blue Moon settled in Dewu. Liu Jie, director of new retail development at Blue Moon, said that at that time, he noticed that the reason for getting things was because he saw a huge user base. "There are a lot of young people in Generation Z, and this is also the user group we want to focus on. In his view, Dewu is positioned as a high-growth platform that can bring large-scale users and user value in the future. "We hope that it will become the main front of new product education. I also hope to try more new and younger marketing methods here. ”

Blue Moon, which has just settled in Dewu, also faces many challenges. "At the beginning, we put on the shelves a lot of products with subdivided needs, such as sports laundry detergent, underwear laundry detergent, etc., and in the second stage, we found that because the users of Dewu are very young, 40-50% of the users are 18-25 years old, and if you count the collection attention, this proportion can be increased to 80%. They usually have a rental scene, but they don't have much financial pressure, and prefer to pick their favorite products rather than purely value for money, so they prefer small-sized products, and in small sizes, they prefer bottles rather than bags. So we added a small spec at the time. ”

After optimizing the pallets, in March this year, the monthly transaction volume of Blue Moon quickly exceeded one million, and the monthly turnover was on par with the transaction volume of the whole year of 2023. He revealed that in the future, Blue Moon will increase the manpower of the business channel and explore more ways to play.

Not only Blue Moon, but also in the context of the continuous emergence of blue ocean categories, more and more leading brands are accelerating their entry. Since Starbucks China settled in Dewu, the sales of water cups have doubled in the first month, ranking first in the annual growth rate of GMV of Dewu among similar e-commerce platforms, and it is the fastest growing platform in the whole network......

In 2024, Dewu is becoming a new position for more and more brand merchants to operate their business.

Special program support

Merchants in multiple industries ushered in new increments

Ma Xiangrong's "IP business" continues to explode, "The users of Dewu are very young, they are very receptive, and they are more sensitive to popular things, which also accelerates product iteration and makes it easier for us to incubate popular models." Wang Qi is accelerating the expansion of products, "I can feel that Dewu is constantly opening up new categories, like we used to mainly make badminton rackets, but now we are gradually moving tops, pants, socks, etc. Liu Jie continued to optimize Blue Moon's pallets and continue to shorten the distance with the new generation of young customers.

In the context of becoming more and more difficult to acquire users and traffic, the proportion of new customers is getting lower and lower, and it is difficult to improve repeat purchases, all walks of life are eager to find new increments. Just this month, Dewu held a large-scale investment promotion conference in Zhejiang, and announced that it would introduce richer categories and more diverse types of merchants through new business measures such as tens of billions of traffic, 0 threshold entry, and 1v1 support.

Specifically, for new merchants, Dewu will launch a super long 30-day commission-free and 0 yuan margin policy to settle in, and help new merchants set sail quickly through new business training camps and 30-day personal accompaniment. In addition, Dewu will also help merchants obtain off-peak sales highs through differentiated marketing for the new generation of festivals. For new products, Dewu has also launched special support plans, such as targeted support for high-quality natural traffic, commission-free for zero-breaking products, marketing and content differentiation operations, etc., to help potential new products quickly stand out.

In the past two years, from dealers to cutting-edge brands, and then to head brands, they have all verified the feasibility of the "Dewu model". Low-risk start-up, no investment promotion, generous profit margins, low return rate, and simple operation model...... For merchants, the "Dewu model" will release more predictable dividends in the future and become a new supplement to business.

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