Wen | Yang Niwa
Editor | asked
Bubble Mart mega series in the window designed by artist Wu Zheng, through the rhythm of the animation background, as if to pull you boldly into the pixel world, Xiaomi bionic robot dog, in this window called "Cyber world", explore the commonality of emotions between humans and artificial intelligence.
These new shop windows created by four artists appeared at the Shanghai World Expo Center, which was chosen by Tmall's first Xinguang Avenue to do an artistic experiment on window and life, facing future generations to build a neighborhood.
The window is the entrance of business and life, the window of dialogue between the brand and the consumer, with lighting and a high sense of design of the commodity display, attracting thousands of celebrities to stop and take pictures, and then attract into the store. The window that changes accordingly every season as new products are launched is like a regular call to consumers, and the brand's fans are also looking forward to every new renewal.
Tmall's offline launch of the Tmall Double 11 New Product Art Award is undoubtedly to use more symbolic expressions that can make consumers and celebrities, and restore how the e-commerce platform uses new digital capabilities to reflect the window that is different from traditional business. On a platform with a larger online field, no matter what stage of brand and business, it can have the same ability as Hermès or department stores to interact with consumers through new product windows and express brand propositions.
The appearance before the double 11 also shows Tmall's attitude of wanting to increase the number of new products. At the opening ceremony of Tmall Xinguang Avenue, Tmall announced the new product strategy of this year's double 11, which is expected to give birth to more than 100 brands with more than 100 new product sales of more than 100 million, more than 1,000 new products that have sold more than 10 million and more than 8,000 new products that have sold more than one million. The new product change occurs in the silent run of Chinese business, but behind this there are complex processes and chains, and Tmall's new digital capabilities have become an important part of simplifying complexity.
<h1 class="pgc-h-arrow-right" data-track="15" > the new traffic password of double 11: create new, try new, and new</h1>
Under the rule that "all brands can be done again", in the past two years, the consumer track with long slopes and thick snow has ushered in a unique scenery. According to IT Orange statistics, the amount of investment and financing in the new consumption field will reach nearly 45 billion yuan in 2020 alone.
No-size underwear, pet cleaning gloves, steam mops... More and more new products are transformed into new consumer goods and are known to more people.
It's hard to boil it down to the fact that new crowds, new channels, new technologies, and new supplies are building this new era of consumption. But to summarize the characteristics of the above new consumer goods, it must be "new" and "fast".
In the double 11/618, the concentration of business outbreaks, the speed of new consumer goods is reflected here: 1, the sales speed of new products; 2, the double 11/618 list of new categories rapidly expanded; 3, the list ranking will be refreshed in a few months or even weeks; 4, the new product research and development cycle from a few years to several months.
Don't blame consumers for "liking the new and tired of the old", the purpose of business is to provide consumers with the goods they need, and whoever pleases the user will have a greater chance.
"Continuing Tmall Double 11 to constantly redefine new consumer life nodes, leading consumers to explore the new entrance to the ideal life, we co-brand, artists and other partners to create the debut of Tmall Xinguang Avenue, the window is the world, the new product is the new me, with the window as the carrier, with the new product as the medium, decoding the new consumption, presenting the future life block model room that integrates consumption, culture, art and business, and inviting 1,000 red people to plant grass punch cards, creating a place where everyone can participate, Let the consumption more memorable Tmall Double 11 New Product Art Award. Su Yu, general manager of Tmall brand marketing center, said.
The value point of the new product not only represents the brand's own product research and development capabilities, brings a new growth curve, increases user stickiness and repurchase, enhances GMV, but also constantly defines new consumer trends and market segments. For both brands and platforms, new products mean the engine that drives growth.
Whether it is for e-commerce platforms such as Tmall or emerging e-commerce platforms, they are trying to seize new products and build their own platform advantages for goods and supplies. Rapid innovation has become the most important chassis of the platform and has brought about changes in enterprise organization, Tmall is an example that can be referred to.
As early as January 2019, at the new product consumption ceremony, Tmall announced that it would invest tens of billions of yuan to incubate new products; in April, the "Tmall" entrance on the homepage of Handtao was directly upgraded to "Tmall New Products", and the importance of new products has been increasing, and in September 2021, Tmall launched a new system for Tmall digitalization. The platform has built a set of solutions from the early incubation, to the measurement, planting, and listing, a complete new product research and development full link. Through the ability to gain insight into consumer trends and populations, the time to develop "new products" is shortened from years to months.
In fact, whether it is for xiaomi, L'Oréal, Shiseido and other consumer giants, or a wider range of mid-waist merchants, before they shoot the bullet of new products, they often have to based on experience, combined with market research and reports, continuous testing, review, new product development is like an experiment, the result is unknown. However, whether it is a giant or an ordinary business, they all hope to quickly develop new business in China, find certainty in an uncertain environment, and the full set of "incubation capabilities" of e-commerce platforms has become an important indicator of the current brand choosing the business market.
Data show that in the past 5 years, Tmall has hatched hundreds of new brands from 0. Last year, Tmall Double 11, there were 30 million new products unveiled, 50% of the merchants have released new products, the transaction of 67 billion yuan, equivalent to one-sixth of the total GMV.
The new product is reconstructing the chassis of the double 11 "goods". The logic of double 11 is no longer just to find "50% off good goods", but the merchant completes the full set of actions of pulling new + repurchase when such a traffic concentration breaks out, and the new product plays a key role in killing two birds with one stone.
On the eve of this year's Double 11, Tmall proposed the "Tmall New Product Acceleration" plan, which for the first time displayed the new capabilities on the one-stop full link of the integrated TMIC/Tmall U-first/Tmall small black box, and gave a one-stop new product to drive business growth solutions from the perspective of brand business operations.
<h1 class="pgc-h-arrow-right" data-track="97" > new product explosion is no longer a bet</h1>
Double 11 through the explosion of new products, bringing a full-cycle growth from daily sales, weekly sales, monthly sales, and promotions, which is a common expectation between the brand and the platform.
Libai found that there are small soft laundry gel beads like capsules on the market, and one can wash a whole bucket of clothes, which is more convenient to use than washing powder. Libai found the Tmall New Product Innovation Center, which provides rapid new product data research capabilities, and Libai provides flexible supply chains and small-scale production capabilities. This new product of laundry gel beads was very popular during the double 11 period.
"The explosion of new products is no longer a gamble," said Zhang Liping, general manager of the innovation and research and development center of Libai Group.
The Xiaomi Mi MIX4, which was recently released, sold out in the first 18 seconds of the Tmall small black box. For Xiaomi, the e-commerce platform is not only a sales channel, but also an important part of the integrated marketing of each product line in the whole life cycle. The new digital capability of the platform lies in providing a specific set of cross-category, cross-brand, and cross-circle solutions to help improve Xiaomi's operational efficiency around new products on Tmall.
"The previous e-commerce shopping logic was 'people looking for goods', with the evolution of platform capabilities, 'goods to find people', especially the accurate delivery of the circle-breaking layer, full-link marketing conversion has now become possible, which is one of the core capabilities that Xiaomi and Tmall pay more attention to." The person in charge of Xiaomi e-commerce said.
SKU's rich maternal and infant industry relies on new products to pull new silent costs higher, crowds and scenes are too complex, and brands lack effective information feedback. Sunan, head of consumer operations of the mother and baby brand Keyubi e-commerce, said.
Previously, Youbi was testing in its own store, the measurement cycle was 3 months, and the cost of trial and error was very high, so it could only be placed in front of the daily measurement. However, the traffic of the big promotion is multiplied, and if the judgment is not accurate, the separate payment will cause a backlog of inventory. Tmall U first provided the brand with industry benchmarking data through centralized distribution and testing, assisted in judgment, and was "the most suitable for the promotion of the front station to pull a new channel". The entire process was shortened to 23 days and the efficiency was greatly improved.
In a new test during this year's Tmall 618 period, kebi tested 34,000, ROI reached 33, which is 3 times that of ordinary advertising tools, and the 7-day product repurchase rate increased by 6% over the same period of commodity repurchase, bringing more than 3 million GMV.
Chen Nuanyang, a former Tao girl, initially purchased through 1688 as a small and medium-sized seller, and then created the "Runaway Lolita" brand. In the initial stage of the brand, the user's "home three kilometers" clothing demand was collected on TMIC's C-end co-creation platform "Tmall Creation Planet", and more than 20,000 consumer ideas were received within 3 days, and the first 8 models with high public demand were selected based on the consumer creative TMIC test and entered the production process. The whole process takes 15 days and is accelerated by 3 times.
For these merchants/brands, the TMIC new product digital system is not just to develop a new product, Tmall small black box is not just a new product listing marketing, U first more than provide sample support... They provide a complete set of new products on the new capabilities, to help merchants develop, test, sales, including the entire new product industry chain revolutionary concept.
Occupying the position of "new products", incubating native brands, native SKUs, and joint customization with brand owners, this used to be the most wanted thing for all e-commerce self-operated platforms, and Tmall helped brands to do it in a larger number and at a higher level through the way of the platform.
<h1 class="pgc-h-arrow-right" data-track="98" > not only new, try new, but also create new</h1>
On September 23, Tmall announced that it will transition from B2C to D2C platforms. Help merchants move from e-commerce global marketing to enterprise global direct service to consumers.
When it comes to the sales model of D2C (Direct-to-Consumer), perhaps what pops up in the mind is a series of representative brands such as Shein, Allbirds, Perfect Diary, Lululemon, etc., most of which form an interactive relationship with consumers and represent the attitude of young consumers today. Different perspectives will always give D2C different definitions, but the commonality is in the direct dialogue between the brand and the consumer. When brands are more and more sought after this concept, where is the value of e-commerce platforms as an intermediate channel? This is perhaps the biggest consideration behind Ali's new proposition.
In the traditional retail era, product-centric, relying on products, price wars or supply chain advantages to win, old brands in the past also mostly used e-commerce as a sales channel, through drilling exhibitions, through the car to hit the explosion, relying on the public domain to attract new customers.
However, with the increase in the cost of online customer acquisition, extensive thinking began to shift to refined operation: GMV (platform transaction volume) = traffic * conversion rate * customer unit price calculation method, into GMV = number of consumers x ARPU (consumer average purchase unit price).
Among them, the new product is the line that connects the complete consumer operation cycle, and the digital operation of the new product has become one of the most important value points of the D2C platform.
At present, at least 500 brands on Tmall have set up internet new product research and development departments internally, and these teams specialize in connecting with Tmall in new product research and development and release. Companies including L'Oréal and Shiseido also announced that more than 50% of new products in the Chinese market will be incubated through the Tmall platform in the future.
In 2019, Nestlé launched research and development for that year's summer beverage market, and it approached Tmall TMIC for advice. After analyzing the relevant market data, Nestlé locked in the potential main consumer group of new products, and then got the cold drink flavors that this group liked and core purchased in the summer. After comprehensively considering various factors such as supply chain and production line, as well as the suggestions of team members such as product development and marketing, and launching simulation tests for target users through Tmall, Nestlé screened out three new flavors and officially put into production. Previously, Nestlé's cycle of introducing new coffee flavors averaged 15 months, but the new fruit flavor series only took about 4 months.
Subsequent sales data further proved the model's fast and good characteristics: after the launch, more than 100,000 boxes were sold on tmall super category day, accounting for half of the total store transactions; and during the immediate 618 period, Nescafe coffee new products also sold 44,000 bags within two hours of sale.
To some extent, this is more like a practice of the D2C model, tmall brand marketing center led by the new consumer-centric digitalization, the origin of brand push new products is the change in consumer demand. After collecting a large number of user needs, the brand provides goods that meet the needs of consumers by adjusting the production line.
L'Oréal, Coca-Cola, Procter & Gamble, Unilever, Nestlé, in the 20th century, there are many legendary brand growth stories, it is precisely because they provide consumers with a steady stream of excellent products, in order to achieve classics through the cycle, precipitate brand equity, and bring investors far more than expected returns.
Looking to the future in 2021, this remains the same. Creating new, trying new and innovating are the strongest variables for brands and platforms in the rapidly changing consumer market.