-01- Cloud stores, along with one-code-per-item and RTM digitalization, are known as the three foundational systems for brand marketing digitalization, and they are very important. However, cloud stores are often misunderstood as micro-malls. Using a cloud store as a micro-mall is not terrible; it's just overkill. But using a micro-mall as a cloud store is terrible, as it cannot bear the heavy responsibility of marketing digitalization for brands and distributors. From a technical perspective, they seem like the same thing; from a marketing perspective, they are worlds apart. Both have their value, but the fear is using them incorrectly. -02- Let's start with three examples. Case 1: A large liquor distributor opened online stores with physical stores, using a micro-mall tool. It should be said that this distributor had strength, traffic-generating products, many franchise stores, and mobilized all personnel to drive traffic, but the results were poor. The reason was that stores were unwilling to drive traffic to the main store; who would want to hand over their customers to the main store? Case 2: A liquor company customized a batch of Spring Festival exclusive liquor for dozens of local stores during the 2019 Spring Festival and used micro-mall group buying to drive traffic. At that time, the concept of cloud stores did not exist, so they called the online tool a micro-mall. But because they did four things right: first, customized products had profit margins; second, group buying attracted new customers; third, manufacturer brand empowerment; fourth, each store had its own online store. The stores operating these products saw significant sales growth and substantial profits. The reason was that this liquor company inadvertently created a cloud store. Case 3: The same liquor company established a cloud store system before the 2020 Spring Festival. During the pandemic, when most tobacco and liquor stores were closed, the stores achieved unexpected marketing breakthroughs through 【cloud store ordering + contactless delivery】. Micro-malls and cloud stores are both mini-programs based on Tencent's ecosystem and social paths. Some people think they are the same. However, micro-malls have been in use for over 7 years, and although some were optimistic about them, they did not become hugely popular. Now there is a strong push for cloud stores. Is it redundant? What is the real difference between micro-malls and cloud stores? -03- Since the emergence of e-commerce, two traffic logics have appeared that differ from traditional business: platform e-commerce and social e-commerce. Platform e-commerce logic: attract traffic with large platforms, gain user stickiness with rich SKUs, and activate transactions with everyday low prices. Therefore, successful platform e-commerce are large platforms, trillion-level platforms. Social e-commerce logic: use IP-character figures as a rallying point, social relationships as traffic sources, community activity to activate users, continuous supply chain updates to maintain ongoing transactions, and high-margin products to build multi-level communities (legal and technical means only allow two levels, but management can achieve multiple levels). Although social e-commerce is widely criticized, it evolves quickly and keeps changing names. The logic and application of platform e-commerce are now clear to everyone. Platform e-commerce has become mainstream. The logic of social e-commerce, because social e-commerce (including micro-commerce) has been done by marginalized groups without good demonstration, has not been truly understood, or has been misunderstood. Early micro-malls were the social e-commerce of stores; cloud stores are now also called social cloud stores. Because of the word "social," there are two misunderstandings: first, it's directly B2C; second, it's considered private domain traffic. With marketing digitalization, cloud stores have suddenly become the standard for brand and distributor digitalization. As mainstream groups get involved, cloud stores are called one of the "three foundational systems" (one-code-per-item, cloud stores, RTM digitalization). If we don't clarify this, the advancement of marketing digitalization will face obstacles. Micro-malls are merely direct e-commerce based on the WeChat ecosystem as a supplement to offline channels, while cloud stores are a comprehensive digital transformation of traditional channels. On the surface, both use social paths, but they are fundamentally different. -04- Simply put, there are four major differences between micro-malls and cloud stores.
1. Micro-malls follow retail logic; cloud stores follow marketing and distribution logic
2020 is the first year of marketing digitalization. Before that, digitalization was retail digitalization for platform e-commerce and new retail. So confusing cloud stores with micro-malls has historical reasons. Doing a micro-mall is doing retail. Whether the micro-mall is operated by a store, distributor, or manufacturer, it is retail in nature. Because the path of a micro-mall is B2C, selling directly to C-end. If it's a manufacturer, the micro-mall path is F2C; if it's a distributor, the path is B2C; if it's a store, the path is b2C. In short, it's collectively called B2C. Cloud stores follow marketing logic. Manufacturers and distributors do not do retail; retail is left to the cloud store owner (who may or may not have a physical store). If a manufacturer does it, the cloud store path is F2B2b2C; if a distributor does it, the path is B2b2C; if a chain does it, the path is S2b2C. In short, it's collectively called B2B2C. As you can see, isn't B2B2C the path of traditional channels? So, cloud stores are the digitalization of traditional deep distribution chains. What is the difference between retail logic and marketing logic? Retail is selling directly to C-end users, so the path is B2C; marketing logic includes distribution and cognition. Because there is distribution, the path is B2B2C. Because there is cognitive empowerment, communities have enhanced connections. Because of the "entangled" relationship between cloud stores and micro-malls, some also call cloud stores "chain micro-malls." This is still a retail perspective. The "original sin" of cloud stores is that micro-malls were once treated as direct e-commerce, which narrowed the scope of cloud stores.
2. Micro-malls are centralized; cloud stores are distributed
A micro-mall is a single store, whether it's a manufacturer, distributor, or store. Especially when a manufacturer does a micro-mall, because there is only one store, if channels and terminals drive traffic, it's equivalent to driving traffic to the main store. Terminals are naturally unwilling; without benefits, there is no motivation. Cloud stores are a multi-store system. A brand can have dozens, hundreds, thousands, or even tens of thousands of cloud stores. Each store or cloud store owner has their own cloud store, so the traffic entity of cloud stores is clear. Although each cloud store is independent, because it's a manufacturer's or distributor's cloud store system, all cloud stores can be organized to do things that are valuable to all cloud stores. These efforts are called empowerment, and empowerment can generate incremental growth for cloud stores. Incremental growth is key. This is the key to the motivation of stores or cloud store owners.
3. Micro-malls are private domain traffic; cloud stores are enhanced private domain traffic
Micro-malls are independent private domain traffic, which is the harvesting of the cloud store owner's social relationships. However, can private domain traffic generate incremental growth when moving from offline stores to online micro-malls? For stores, the incremental space is limited. But when manufacturers assist store owners in operating cloud stores, they not only help cloud store owners harvest private domain traffic but also form an enhanced private domain traffic system of 【scenario experience + KOC + cloud store】. Because of KOC endorsement, private domain traffic has an amplifier. Because of the scenario experience cognitive system, KOC communities become enhanced connections. It's not the cloud store or micro-mall that generates incremental growth, but scenario experience and KOC create the conditions for incremental growth. This is the marketing logic of cloud stores.
4. Micro-malls are simple B2C; cloud stores are BC integration
If a store uses a micro-mall, the store usually lacks the operational capability for a micro-mall. If a manufacturer uses a micro-mall, there is no traffic source. The cloud store path is B2B2C, which we call full-chain digitalization, using the cloud store system to connect traditional channels and extend to the C-end. -05- Having discussed all these differences, the core difference is: micro-malls are direct e-commerce within the WeChat ecosystem, a supplement to offline channels; however, cloud stores are the digital transformation of traditional channels. As direct e-commerce, micro-malls have questionable traffic sources besides social traffic. Cloud stores, as the digital transformation of traditional channels, enable the full integration of traditional channels with the internet. It's not just "dual shelves + dual customer sources," but a comprehensive transformation of the integrated distribution system. First, from manufacturer to distributor, terminal stores, and users, full online presence, i.e., full-chain digitalization. Second, BC integration. In the past, manufacturers could only reach the b-end (terminals), but now they can reach the C-end. Third, the functions of distributors and salespeople will undergo major changes. This will be discussed in future articles, namely "the war commanded by squad leaders." Fourth, 【offline scenario experience + KOC social communication + cloud store transactions】 will become the new channel model, connecting offline, community, and online spaces. Fifth, because cloud stores bring full-chain digitalization, it's possible to deeply mine customer lifetime value through profiling and user operations. Sixth, cloud stores can act as a lever for offline marketing breakthroughs. Marketing breakthroughs are an important marketing value of cloud stores. Seventh, because cloud stores are a multi-store system, when cloud stores form density, they can achieve small-area breakthroughs; when small areas connect, they can achieve large-area or national breakthroughs. Source: Teacher Liu's Digital New Marketing (ID: liuchunxiong1964), Author: Zhu Chaoyang Tips will be paid 400-2000 yuan once adopted.