A case-study series of explosive product strategy

2015 will be a "explosive product strategy" of the Case interview series.

Make an objective statement: only do value and dry goods, never water.

Wang is full of electrical business veterans, Bowser founder, two times to enter home textile business. The reason is because of the bowser transformation of the integrated electric business, visited the n every textile manufacturer, found a big pain point: The profit is high, inefficient. Zhiquan to free formaldehyde, cotton these two points quickly open the market.

Zhiquan Entrepreneurship two years of key data: Sales nearly billion, 90 days customer repurchase rate of 57%.

Zhiquan is a 240-bed product. Double 11 the day single product SPU sold 4200 sets, 2015 240 bed products plan sales in 8 to 100,000 sets.

Zhiquan summed up the success of the three factors: first, the change of thinking; the second is to find the target users;

Zhiquan three deep pits: the first pit is: Entrepreneurial team experience is not a good thing, to PC electric business thinking to do mobile app. The second pit is: User positioning errors, early positioning in the petty bourgeoisie, later changed to a young mother. The third deep Pit is: Start a luxury team.

Words and tears of blood.

Zhiquan is still on the road. 240 Bed products of the user has a powerful impact, advertising also played to the Millet salute, but the distance from the millet-grade explosive products, look forward to Zhiquan product-level outbreak. Do you have any question and torture to the Zhiquan Road of pioneering work, welcome to leave a message directly. Also welcome to recommend a fierce enough case of explosive objects.

The following is the founder of the Great Park Wang full dialogue and dictation:

Internet impact: Vested interests are unwilling to change

Internet brands do not have a huge impact on the traditional home textile industry, the biggest difficulty is that the vested interests do not want to change, currently they live in total moisture.

I founded the bowser in 2006, found that the electrical business industry chaos from health, commodity prices are high, low sales efficiency, suppliers scold the electricity business. I want to create a brand-friendly platform for consumers to buy cheap goods, and to buy the goods they really need. 2011 Bowser transformation of the comprehensive category of electric dealers, I visited every home textile manufacturers, found that the biggest problem of textile industry is the high profit, low efficiency, and no leadership brand.

2012 I sold all the shares to the United States, the eyes aimed at the Chinese people's Daily necessities, buy a large number of industry reports to analyze, home textile industry malpractice has attracted my attention. In addition, I also research daily necessities and other industries, but only interested in spinning entrepreneurship. In the Enterprise development planning, first of all, the choice of the social value, followed by the design of commercial routes, the final decision from the safety into the home textile industry, formaldehyde has become a major feature of the park products.

The user is God? It's nonsense!

In the past, the Merchant defined the customer (hereinafter referred to as "the user") as God or a food and clothing parent, and I thought it was pure nonsense. You can specify that the user is God, that means you are more cattle than God, and when the designation of a person is God, the logic becomes chaotic, the individual does not set up in general how to set up? Market economy system, users and businesses are fair trade relations, there is no parents and children of the points, we have not seen merchants to serve the users as parents. I think the best definition of users and businesses is a friend relationship, trust is to maintain the ties of friendship, mutual exchange to replace the unilateral interaction, and the traditional positioning theory and brand development theory is a unilateral business to users of the process of brainwashing.

With other electrical platform to limit user returns different is, the park on the first line of the establishment of 30-day unconditional free return policy. Electric business platform restrictions on the user is extremely unfair to the towel, for example, users can only use water to determine whether there is a quality problem. In the past, the user returns, merchandise warehousing check and then refund/delivery, now the user voucher number can be completed return, this is the real trust between friends. At the same time, the park is determined not to make false propaganda. Internal staff to understand the product comprehensive information, basically hide any secret, if the employee is unwilling to buy or recommend their own products to friends, the company should immediately down the shelf products.

I think not all users are fans, only the values of users are fans, the park is willing to run the values, love the spread of fans. We set up dozens of micro-letters group, mainly for the fans involved in the park, they spit in the group of products, logistics and other issues, from the user's real voice to help promote the development of the park, we must sincerely face the user, build the trust basis of both sides.

When the trust relationship with the user, we naturally enjoy the dividend of the fan economy, that is, the internal initiative to make friends with the user mechanism. I often tell employees to be in the dating scene as much as possible to serve the users. Making friends with users is not a matter of overnight, it is not simply to put the user on the tip of the tongue, in addition to cultivating team values, but also must shape the corporate culture and break the old business knowledge.

Three elements of building explosive products

240 Bed product is the industry miracle, double 11 day single product SPU sell 4200 sets. Home textile industry rarely appear single product SPU annual sales, 2015 240 Bed products plan sales in 8 to 100,000 sets, this is the home textile industry for many years the single product SPU.

So 240 bed products play the role of flow product, and constantly for the site diversion and manufacturing Word-of-mouth transmission point, directly driving other product sales. Flow products do not make money, but can be achieved by saving marketing costs to enhance other product gross profit margin.

Bath towel category has also launched the explosion of products, 2014 single bath towel sales of more than 120,000, this is one of the high volume of single product SPU, while the old coarse mat is also unusually hot, in the market chaos under the premise that sales can maintain strong growth momentum, so that we firmly build more excellent products. 2015 socks and underwear will be the key to build the object of the explosion.

To make a single product a blow, I think we must have three major elements:

One is the thinking of change, do not think of themselves as God, that they are right, but should be quick trial and error, user-approved products can become explosive products.

The second is to find the target users, if you can not clearly identify the target users, product improvement into an embarrassing situation.

Third, a higher cost-performance line, product cost-effective basic no way out. If 100 yuan products can reach the market 300 yuan product quality, it has become the potential of the explosion.

The venture has trampled 3 deep pits

The first pit: at the end of 2012, we went to the park app and soon gave up the update and operation, which made me rethink the entrepreneurial team's experience is not necessarily a good thing. At that time, park staff exclusively PC electrical business background, full of PC thinking. When the layout moved, we found that the small size of the mobile phone screen product design is difficult, and the brand app sticky low easy to unload, think the app development prospects are limited, so only the app as a sales brand, and ignore its as a link between the brand and service brands, such as social functions and customer tools. People tend to prefer to do things that are easy rather than promising, and the PC becomes the focus of the big park.

The second pit: compared with the app error, the user positioning bias is even more striking for the big park. Early we put the user positioning in small entrepreneurial petty, not in-depth insight into the consumption habits of high-end people, their consumption is characterized by a lack of purchasing power, the park can not enjoy social dividends, can only rely on the traditional way of advertising to access users, high costs become a constraint on the development of enterprises. We reflect on their own point of view of the user needs is a big pit, the Japanese standard to create products, do not formaldehyde, fluorescent brightener, no carcinogens, tall people will pay.

2014 we have made a large adjustment in user positioning, the target population positioning in the young mother, they have three characteristics: one is sensitive to price, the second is critical to the product, the third is strong communication. So we put the price of products straight 15%, so that young mothers can afford to buy them, at the same time for them to launch a variety of activities, such as the baby put on the young mother Meng Bao, mother when lingerie models.

The third pit: we've made a mistake in thinking that starting a luxury team makes business easier, but that's not the case. The luxury team has at least three major problems: first, the ability to learn new things decline, the second is the mentality of change, the third is to reduce the ability to do. Entrepreneurial team by directing others to work, they do not personally, it is easy to cause the team inefficient, Big Park in the staffing of the suffering.

We experienced a painful adjustment in the 2014 and Bowser executives chose to leave. We reflect on new areas of entrepreneurship, with the old men to conquer the practice is not desirable, but to find the industry elite to form a new team. This is the common problem of entrepreneurs, thinking that the first venture after the success of the fight, but the original team in unfamiliar areas should become inevitable, in essence, the future of the ruin team.

Supply Chain Management 4 alert

China's supply chain is easy to go into a vicious circle, as long as the customer orders enough, the plant will change for you; We are also learning millet, try to use a single product, Mass, the ultimate idea to do products, last year, 240 of the explosion of red bed is to pay tribute to millet, 1.8 meters 366 yuan, 1.5 meters 299 yuan, the product margin from 20% to the lowest, and gradually get user recognition, without spending a penny of the premise of marketing costs to achieve a large number of goods, Order increase drive factory for our separate open closed workshop production bed products, product quality is guaranteed, at the same time conducive to optimize the cost structure. 240-bed products to the market, so that we understand that only die orders to improve the supply chain, because the factory is most like standardized production.

For entrepreneurs, supply chain management is an extremely important link, I summarize must pay attention to 4 major issues: First, the supply chain can no longer easily concession, must work with a good factory or large factory cooperation, after all, they have long experienced market test, the cost of error is high. Second, the OEM products as little as possible, large factories set up a high, the product line too long so that the cash flow is too dispersed, and increase the likelihood of error.

Third, fast trial and error, entrepreneurs blindly pursue cost reduction, hope that the product sold out quickly, but the actual situation is the early stage of product sales, late inventory accumulation was forced to lower prices, resulting in serious loss of enterprises. So early entrepreneurs do not focus on making money, but should get enough orders quickly to the market, according to market feedback to adjust follow-up orders, to try the wrong mentality to make a decision, and then verify the correct decision.

Four is to cherish the time cost. Time is the most valuable wealth of entrepreneurs, the end of this round of financing means that the countdown to the start of financing, capital uncertainty is buried in the process of the development of a time bomb, investors often through capital operations or mergers to seek to exit, and will not wait for the enterprise income stability and then exit, so the entrepreneur must Try to develop more opportunities for the future in the fast trial and error.