"The rise of cutting-edge brands means that the innovation and transformation of retail has begun to penetrate from the circulation model to the essence of goods, which is the second growth curve of new retail development." The "Four Forces Model" is the basis for supporting brands to establish a sustainable digital link, helping brands to complete progressive growth from "can" sell, "more" selling, "good" selling to "explosive" selling. "July 29th (Thursday) 9:00, 36Kr "WISE2021x New Brand Innovation Trend Summit" was held at the Hangzhou Qianjiang New Town Marriott Hotel, we invited 30+ well-known investment institutions, e-commerce platforms, brand side and service provider executives to discuss the innovation trends and development opportunities of dark horse brands under the "2.0 era of new brand entrepreneurship".
Yang Qin, partner and business expert at Endpoint Terminus
At the "WISE2021x New Brand Innovation Trend Summit", Yang Qin, partner and business expert of Endpoints, shared the reasons for the emergence of new brands, how we should judge the development stage of cutting-edge brands and how to help them grow more accurately, she believes that the reason why Endpoint Technology has established a cutting-edge brand industry line, taking the new brand as one of the important tracks for the development of its own product technology, There are two main reasons for this: the awakening of the brand power of the cutting-edge brand and the universal benefit of technology.
Although the new brand is essentially the same as the Tao brand, the biggest difference is that the new brand has a stronger brand power and technical strength, especially in this era of rich channels and more inclusive technology, the new brand can quickly pave multiple online and offline channels to seek the rapid growth of GMV, and the rapid development of technology today, those science and technology that were previously out of reach are now within reach. This also enables cutting-edge brands to use more high-tech means to obtain various means of production and data required for brand development, so this era is also a golden age that truly belongs to new brands.
"Therefore, in today's cutting-edge brand track, it is particularly obvious to show the dual-drive model of technology and business, looking at the development of today's cutting-edge brands, putting aside the ability of technology and data to look at the business alone, or to put aside the business to look at products and technologies are immature and incomplete, it is easy for us to give the development of the new brand a wrong definition and fall into the misunderstanding of the development route." It is more accurate to say that in the development of cutting-edge brands, technology and business bite each other. Yang Qin said.
Therefore, only when we can look at the development of cutting-edge brands more objectively and comprehensively can we empower them more accurately, create new brands with more vitality and continuous production of explosive models.
The following is the transcript of the speech of Yang Qin, partner and business expert of Terminal Terminalus, edited:
Good afternoon to all guests, the topic I share today is the circle of cutting-edge brands, and I hope to share some observations, views and practices on the phenomenon of the rise of cutting-edge brands from the perspective of Internet software manufacturers.
First of all, let's take a look at the observation, the new brand is the second curve of the development of new retail, and when we talk about the new brand today, it will inevitably be associated with new retail. New retail in 2016 officially entered everyone's field of vision, to today has passed five years, the heat continues to unabated, from the discovery of new retail since the emergence, it is still iterating, evolving and developing.
When new retail was first proposed, what were we talking about on most occasions? Whether it is e-commerce, O2O and smart stores, the topic and focus is still on the circulation of the business itself. The emergence of today's cutting-edge brands is considered to be a more profound and more substrate innovation in new retail for innovation and change. Because the new brand means that the new retail has passed through the circulation of peripheral goods, began to pay attention to the consumption object, and paid attention to the innovation and change of the product itself, which has become the second growth curve of the new retail track, pushing the development of new retail to another height.
And you may think that endpoint technology is a relatively fresh face on the cutting-edge brand track. However, when we put the topic and vision on the scope of new retail, we will find that endpoint technology is a very important participant, co-builder and even leader in the digital transformation of new retail. Over the past decade, Endpoint Technology has provided full-link digital transformation solutions for lighthouse customers across a wide range of industries, the vast majority of whom are lighthouse customers in retail, real estate, manufacturing, and energy.
In this process, we have fully supported the growth and transformation of enterprise digital development, and at the same time, Endpoint Technology, as a local software vendor, is truly practicing the external output of Chinese technology. Today, we have implemented a typical case of new retail in the United States in Latin America and in Dubai and Southeast Asia, so that the world can feel the innovation and prosperity of new retail in China.
So, what is the opportunity for endpoint technology to continue to exert efforts on the new brand track, which is a communicative track? In 2020, we officially established our own cutting-edge brand industry line, taking the new brand as one of the important tracks for the development of our product technology, which stems from two reasons behind it: the awakening of the brand power of the new brand and the universal benefit of technology.
Talking about the awakening of brand power, talking about cutting-edge brands today, it is easy for everyone to associate with the Tao brand ten years ago. They have grown rapidly on new technologies and new models and replaced the identity of the industry overlord, but they are fundamentally different.
In the past decade, the Tao brand has bred the largest software ecology in the Chinese and even Asian markets with its own unique development model - Tao isv, we cannot deny that the unique agile and lightweight services of Amoy ISV can support the growth of these Amoy brands in the past, but we will simply equate the needs of cutting-edge brand products and technologies with the development path of tao brands ten years ago, which is wrong. Carefully observing the development path of cutting-edge brands today, we will find that although the essence between them and the Amoy brand is the same, today's cutting-edge brands have a stronger brand awakening than the past Amoy brands, and today few new brands will rely on a single platform to grow, often omni-channel power, or even not only limited to online, may be online and offline at the same time.
In terms of geographical space, the layout of the new brand is in China, but they have their own clear overseas layout, and they will consider the rooting of their own brand power at the first time of establishment, and will consider their own brand assets and data banks, which are very different from the Taobao brand, which also means that they must have a stronger independent and controllable and sustainable growth technology and data system to support their ambitions.
The second is the universalization of technology, we can find that in today's entire digital market, those technologies that seem to be somewhat out of reach are becoming more and more common, and more and more low thresholds are used and applied, including big data, data modeling, data algorithms, data intelligence and a variety of digital interactive experience technologies, which make endpoint technology and emerging brands have a perfect encounter, and have the opportunity to better serve emerging brands based on the breadth and depth of products and technology fields.
Next, we will share our views on the digital construction and growth of cutting-edge brands. Here are three keywords summarized, two-wheel drive, full scenario and sustainable.
The first is two-wheel drive, the new brand is different from the ordinary traditional system, the first day of birth came to the digital era, every business change will promote the maturity and development of technology, the same, the maturity and development of technology will promote the prosperity and innovation of business.
Therefore, in today's cutting-edge brand track, it is particularly obvious to show the dual-drive model of technology and business, looking at the development of today's cutting-edge brands, putting aside the ability of technology and data to look at the business alone, or to put aside the business of looking at the products and technologies are immature and incomplete, it is easy for us to give the development of the new brand a wrong definition and fall into the misunderstanding of the development route.
It is more accurate to say that in the development of cutting-edge brands, technology and business bite each other.
Therefore, we believe that no matter which segment and which track the new brand belongs to, in order to consolidate its sustainable development, it must do four aspects: accounting, fighting, stability and expansion.
Accounting for the consumer's mind, so that you have a very clear lock in the segmentation needs, the fight is their own product positioning, product strength, product research and development capabilities, innovation capabilities, flexible production capacity; stable is the operation, can you withstand an overnight explosion, while holding a short period of loneliness, and then adjust the relationship between their own production and marketing supply; the expansion is whether the sales channel can find their own sales opportunities in a variety of consumption scenarios, based on the efforts of four aspects, We summarize the core competencies needed for the growth of cutting-edge brands into a four-force model, relying on technology and data, which are commodity power, marketing power, sales power and operation power.
All products and technology-related solutions exist to consolidate these four forces and better and more stable support the development of cutting-edge brands. Similarly, each product and technology behind the four forces can better help cutting-edge brands to achieve iteration and innovation in the dimension of that force based on the form of their products and technologies, which is the relationship between two-wheel drive.
Then comes the second key word: full scene. Today we think that there are many advantages over traditional brands in some dimensions of cutting-edge brands, what is the most important advantage? We think it's agile and fast, how to achieve agile and fast? It is from procurement to sales, production and research supply and marketing service in the whole link of the response ability, today, under the appeal of the new brand to build its own technical barriers, whether it is possible to build a complete full link, no breakpoint business flow system, it is more important.
Only by building an end-to-end complete full-link data system can we truly realize business online, consumer online and employee online, and apply and develop from sales to full link. Being able to build end-to-end business flow and data intelligence in all scenarios is a key element of the growth and out-of-the-loop of cutting-edge brands.
Let's borrow the third keyword sustainable. When we judge a cutting-edge brand, if we put aside the element of time, then there is no value and meaning, because in today's world where the iteration of technological updates is so fast and the minds of consumers are so unstable, the trend of fashion is slightly longitudinal, and the only constant is change. Under this change, if we let the cutting-edge brand abandon the timeline element, this itself is beyond doubt, and it is likely to mislead the direction of the cutting-edge brand.
I simply disassemble it into four stages: can, more, better, and explosive.
The first stage "can" sell, the second stage "more" sell, the third stage "good" sell, the fourth stage "burst" selling. I simply disassemble these four words, what can be "sold"? Can open, can produce, can deliver can open the door to do business, I can at least sell goods, can open the door to do business is the first step.
What is "more" selling? There are so many channels, is it possible to enhance GMV by broadening channels as much as possible? Is it at least to tell others in terms of data that you are a force to be reckoned with on this track? The third stage is good to sell, who does all the traffic rely on? What is the cost per acquisition and what is the profit margin? Is it to ensure the growth of profit margins while maintaining the growth of scale? Don't give all the profits to the media and advertising fees, this is good to sell.
The last fourth is "explosive" sales, which is the ultimate dream of all cutting-edge brands. The core ability of the brand's lasting development lies in whether you can create a blockbuster, we know that the explosive brand can occupy the market important elements, but also the main source of profits, a perfect cutting-edge brand is the explosive manufacturing machine, successfully creating a blockbuster can not only stabilize the hegemonic position of this category, so that the brand power is rooted in the minds of consumers, but also can create lasting profits, to help him further iterate his own products and marketing system.
At every stage, emerging brands have core appeals. We must clearly judge what stage of growth the current cutting-edge brand is in, what capabilities are needed at this stage, and whether we can provide him with the capabilities he needs at this stage very accurately. At the same time, based on this ability, it is pushed to the next life cycle, and whether the new capabilities required in the next life cycle can be taken over and achieve bite-type growth.
This is a very important core ability in the whole case of the new brand, and it is a simple explanation of the ability to alternate and iterate with each other in the four stages of energy, multi, good and explosive.
The "can" selling stage is the most important to consolidate the ability of full-link delivery, form a closed loop from procurement to sales to open the door to do business, most of the attention of enterprises is OMS; the second stage of "multi" selling must be the layout of omni-channel; "good" selling, the layout of the marketing level can not build their own brand data bank, better improve the cost of customer acquisition; the fourth stage of "explosion" selling, this stage is actually the most important to consolidate their own link from procurement to sales can not better manufacture explosive models, shorten the creation cycle from new products to explosive models.
Today, Endpoint Technology has also locked the heads of several industries as our deep partners on the cutting-edge brand track, so we also share some experiences in the process of practicing co-construction. When we talk about cutting-edge brands today, it's easy to use a word to represent a group of people, and the good thing is that it does make it easier for us to notice their power, whether it's in the capital markets or in the markets of consumer perception. But what cannot be ignored is that each new brand today has its own uniqueness, and when faced with his complete product and technical solutions, we can find its power point very accurately, providing them with a path to really use the core advantages to quickly get out of the circle.
Here we have refined the typical three kinds of cutting-edge brands, the success of any enterprise is the product of the times, the growth of each new brand is not for no reason, almost every new brand behind the growth of time, location, people and factors. For example, the rise of some feminist products brought about by the era of the economy, such as the rise of brands and commodities with Chinese elements under the national tide culture, such as the era and wave of digital factories for the entire new consumer experience and changes. Disassembling these three different cutting-edge brands to better understand how to see through a cutting-edge brand, and how to form a full link from collection to sales by transforming the engine to form a full link from collection to sales.
First of all, look at the rise of women's power, this is a brand from the top three in the underwear category, in its entire rise path we will find that for it is the most important way to build the consumer's brand mentality, so first optimize their entire AIPL model, consumer assets in the system process, can use data and technology system to help do three things.
The first thing is how to make yourself from A to I to P to L each node conversion rate continues to increase, the caliber of the funnel is getting bigger and bigger.
The second is how to build your own private domain brand data bank, and constantly consolidate the solidified impression of your own brand in the minds of consumers. The third is how to make it better to do media full-link planting and mowing, and more completely realize the transmission of brand awareness.
The second comes from the national tide economy, we give examples of the top three beauty, this brand with the help of the elements of the national tide, behind the national tide is the rise of China's power, is the mainstream of Chinese aesthetics, so the beauty industry is the main oriental aesthetic and oriental concept and core elements.
When creating such a new element, you will know that beauty is a very strong scene product, and what you do at this time is two things, the first is whether you can build a better scene, and rely on the scene to find your own goods and target groups, this is the entire marketing system we have built; the second is whether you can completely realize the whole process of planting grass to mowing the entire content in the process of transmitting your own oriental aesthetics. Coupled with the beauty is a strong experiential marketing of goods, gifts become a very important transition carrier, in the process, the brand alone a gift sales have more than a thousand configuration methods, how our products and technology can quickly support the flexible construction of their own entire grass, mowing link, and support different combinations to build a new transformation scene, this is the biggest test of the product technology system, but also an important element of building core competitiveness.
Finally, the digital factory, the most important thing about the digital factory is the product that is more asset-heavy than other consumer goods. How does this asset-heavy product make it an important element of asset-heavy operation and successful risk resistance, and can it maximize the use of its own inventory to achieve cash withdrawal? How to build a complete system to achieve the integration of information flow, logistics and capital flow? In this process, we helped this customer to build a calendar inventory supply chain planning logistics equipment and the study of the entire topic, helping them to truly achieve efficient collaboration from sales, research and production, performance, and settlement, and finally realizing that he can finely adjust and optimize on a daily basis and gain insight into several relationships between his own production, research, supply and marketing, and achieve very lightweight operation in the process of heavy asset product operation, helping him quickly iterate on his own products and upgrade his brand positioning.
I hope that with the help of these three more representative cutting-edge brands, let everyone see an opportunity and risk behind the development of thousands of cutting-edge brands on this track, and hope that endpoint technology based on the accumulation of products and basic systems in the past ten years can better help cutting-edge brands, so that each cutting-edge brand can afford the fashion and innovation of the new sharp, and also hold the century-old foundation of the mainstream market, and finally hope that everyone can realize the dream in their hearts, thank you!