Click the image for details Are brand owners and distributors suitable for community e-commerce? This is a question that many brand owners, distributors, and SaaS service companies have been asking me recently. At least from the current category composition of community e-commerce, it is not suitable. Currently, fruits account for 60% and fresh produce for 40% of the categories. It seems there is no opportunity. But, is there really no opportunity? In April 2018, I wrote an article titled "Five New Omni-channel Marketing: The Correct Posture for Enterprises to Engage in Digital Marketing," which included a practical framework for new marketing called #New Products, New Models, New Organizations, New Communication, New Channels#. This is the "Five New." What does "Omni-channel" mean? It refers to the Sky Net (communication), Ground Net (offline), Electric Net (B2C+B2B), and Human Net (M2C model), among which the M2C model, based on private domain traffic community e-commerce, is particularly suitable for brand owners and major distributors in regional categories. Today, I'd like to discuss this model with you. This article mainly discusses the prerequisites for this model, and subsequent articles will introduce it in detail. 1. Traffic Dilemma: Public Domain Traffic and Private Domain Traffic The decline in sales is essentially due to the decline in traffic from original products, channels, and communication without taking control measures. Because the original product functions, channel traffic, and communication traffic have been hijacked by new competitors, new channels, and new communication methods. For example,
B2B e-commerce is a transfer of traffic from original CD-class channels.
B2C e-commerce is a transfer of traffic from original KA and department store channels.
Social e-commerce and content e-commerce are transfers of traffic from interpersonal relationship channels (direct sales), group buying channels, boutique stores, and custom channels.
New media marketing is a transfer of traffic from the original loudspeaker-style CCTV and satellite TV bombardment. If traffic has shifted, and you remain on the original traffic platform, how can sales not decline? Traffic is like a dam, intercepted and diverted by new platforms layer by layer, leaving very little for traditional offline channels. This is our current sales dilemma. Have you noticed that this traffic has shifted to new internet-based platforms, and due to the internet's siphon effect, it has become platform traffic. Platforms control the distribution rights of traffic. So, you need to buy diamond exhibitions, direct trains, and slots for Double 11 and 6.18 on Tmall, Taobao, and JD.com, and run activities on Yunji, Beidian, and Xiaohongshu. At least many B2C e-commerce modules I've seen have fee rates reaching 36% or even more. Therefore, you need to deploy B2B e-commerce and cooperate with various B2B e-commerce platforms. In 2018, with the promotion and witness of New Distribution, companies like Master Kong, Tsingtao Beer, and Coca-Cola actively engaged in strategic cooperation with major B2B platforms, fully embracing this new channel and reaping significant channel dividends. What are channel dividends? Companies that cooperate earlier, research earlier, and equip professional teams earlier can enjoy channel dividends. These platform-traffic-based strategies are what Brother Dong summarizes as public domain marketing models. From the perspective of the four-network integration and cross-coverage, public domain marketing is still one of the main ways to refine existing stock. Yes, the mainstream B2C model is unavoidable; you need to arrange and prioritize it in your early 2019 plans. For example, Ximai Food, the leading brand in the oats industry, started its B2C model in 2016 with annual sales of less than 6 million yuan, and by 2018, it reached 180 million yuan. Refine existing stock and don't miss any existing mainstream incremental channel! 2. Public Domain Marketing Dilemma: User Disconnection and User Online What are the drawbacks of public domain marketing? User disconnection! No matter how well you do in public domain marketing, you'll find a basic problem: users have no direct relationship with you! Awkward! The "user assets" brought by marketing expenses are actually the platform's "user assets"! What does user disconnection mean? • If you have 1 billion in sales, do you have 10 million fans?
• Can you see these 10 million fans in the backend? Can you interact with them?
• Can you sell more products to them based on membership and interaction relationships?
• Can you draw user portraits based on multi-dimensional user data in the backend? Example: A real data point. In 2018, I consulted for a company with over 2 billion in scale, but it had fewer than 200,000 fans on its B2C platform. The boss's pain was that new products wouldn't sell, and while they roughly knew who bought old products, they couldn't use a model and mechanism to organize users into the company's own traffic and assets. This is typical user disconnection. At this point, we wonder: is there a way to bring users online, gather them, privatize user assets, and establish a traffic pool and retention pool based on the enterprise (M) itself? Yes, there is. This is private domain marketing, building a C-chain strategy, which Brother Dong summarizes as the M2C model based on brand owners. It is a community commerce marketing model that fully utilizes WeChat's ecosystem traffic for integrated production and sales. Example: From the practice of several companies so far, within 3 months of launching the model, new registered users exceeded one million, conversion rates exceeded 60%, and average order value increased from less than 20 yuan offline to nearly 40 yuan. It fully leveraged the performance of offline sales guides, own salespeople, and distributor salespeople, revitalized existing stock, achieved incremental growth, and solved the problems of new products not selling and old products accumulating in channels. The basic logic of this model is exactly the same as the currently popular community group buying model: WeChat groups or live streaming groups are the interaction logic, Mini-programs + pre-sale e-commerce platforms are the see-and-buy transaction logic, SCRM and operational strategies are the relationship logic. This is a logic from traffic to retention—mining customer lifetime value. To summarize, this article has discussed two issues: from the definition of traffic and the current public domain traffic dilemma, we analyzed the background of the M2C model. In the next article, we will discuss the various backgrounds and data of the M2C model, as well as its similarities and differences with social e-commerce models. For more questions on how brand owners and distributors can do community group buying, welcome to the "2019 (5th) FMCG + Internet Conference"—Community Group Buying Theme Summit Forum to discuss with Brother Dong and industry leaders! New Distribution will grandly hold the Community Group Buying Theme Summit Forum on March 17 at Chengdu Longemont Hotel. We will have in-depth communication with brand owners, startup platforms, supply chain enterprises, and industry experts around the topic "Community Group Buying: The Third Pole of Chinese Retail." We hope that through high-quality sharing and discussion, brand owners, distributors, and retail enterprises can have a clearer understanding and deeper understanding of community group buying e-commerce. In addition, on the evening of March 17, we will also invite leading domestic investment institutions, community group buying entrepreneurs, and supply chain service companies to hold a high-end matchmaking dinner. We hope that through our connections, we can help enterprises achieve new growth and bring more development possibilities to participants in various industries. ★ Confirmed Speakers ★ Li Botao Vice President of Supply Chain, Niwonin In 2011, Niwonin started group buying activities based on residential communities. In September 2016, the Niwonin platform was officially established, pioneering the classic community WeChat group buying approach in Changsha. In March 2017, Niwonin's annual net profit reached 10 million yuan. In January 2018, Niwonin became the first community group buying platform to launch mini-program tools, which increased monthly sales by 40% year-on-year. In June 2018, Niwonin received tens of millions of yuan in investment from GGV Capital, becoming one of the earliest community group buying teams to receive venture capital. Lu Zhihan Co-founder of Shixianghui Shixianghui was founded in December 2017. Starting in 2016, it promoted the community group model at Benlai Life, experiencing several rounds of model iteration and exploration in fresh e-commerce B2C, O2O, and new retail. In May 2018, it received angel investment from Xinyuan Capital. In August 2018, it completed a 100 million yuan A-round financing led by Xianfeng Qiyun Fund with Xinyuan Capital following. In December, it completed a $30 million B-round financing. To date, Shixianghui has covered more than 50 cities, with dense coverage in provinces including Zhejiang, Jiangsu, and Jiangxi. Monthly sales exceed 100 million yuan, and the platform has nearly 20,000 group leaders. Lian Jie Founder of Dingdantu Founded in 2016, Dingdantu is a "group purchase" platform serving community group buying retailers, providing SaaS systems for small and medium-sized community group buying companies or traditional offline stores in third- and fourth-tier cities. Dingdantu has spread to 1,200 counties, with nearly 10,000 active group leaders. In April 2017, it completed a 5 million yuan angel round. Tang Guangliang Founder of Kaola Select Kaola Select is a community group buying project incubated by the FMCG B2B platform "Xingaoqiao." It launched in May and officially went live in Changsha in July. Kaola Select's uniqueness lies in using convenience store owners as group buying leaders. Within 30 days of launch, it covered over 1,300 group leaders, with daily sales reaching 120,000 yuan. In September 2018, it completed a 20 million yuan angel round led by Galaxy Ventures. More guests are being invited... Registration Method [Community Group Buying Special Session] Limited-time exclusive discount price 199 yuan! Learn more about the main venue Click "Read the original" to register now...