Articles by 朱先生

Going Offline? What Does the 'Street Battle' for New Brands Really Come Down To?

A decade ago, the best marketing strategy for brands was to seize offline channels such as malls, supermarkets, convenience stores, and department stores. Ten years later, with the advent of the mobile internet, e-commerce platforms like short-video live streaming, JD.com, and Tmall have become powerful customer acquisition tools. However, as internet dividends fade and online customer acquisition costs rise, many brands face a 'ceiling.' According to Everbright Securities' in-depth report on private domain traffic, Alibaba's customer acquisition cost rose from 278 yuan per person in 2018 to 929 yuan in 2020, an increase of nearly 234%. Even Pinduoduo, with the lowest cost, saw it rise from 77 yuan to 203 yuan per person. In 2020, e-commerce accounted for 26.7% of FMCG sales, while offline channels still hold 800-900 billion yuan in sales. Thus, the offline 'street battle' is also a channel war.