The three core values of brand-makers doing independent business

When a VP of a diamond brand that sells close to 1 billion over the Internet year finds me exploring how to redesign and develop its own independent business, it only finds out that their understanding of independent business is so shallow, so confusing, and so clearly defined. In the 5 years of Third-party network channels and online experience shop expansion process, the entire company has basically lost how to do the GM gene! Although with up to 1 billion of the sales scale, but still face high operating and channel costs every day, and at all times with a number of channels of the game without any initiative.

For the brand, the independent trader is equivalent to the line of the independent location of the store, in that year, Gome and Suning channel price war, Gree, TCL, Haier and the United States and other home appliance brands because of the exploitation of Channel business to open their own brand stores, but finally because of high cost, chain management capacity is insufficient, Lack of marketing means and the lack of sales and other reasons that these stores did not like the expected general formation and large-scale retailer dynamic balance of another independent channel, many become after-sales service point or dealer pick-up point. So independent of the company as the direct management of the Headquarters, there is no need to open shop chain management in the country is difficult, and the cost than the opening of hundreds of stores, it is obviously low too much. Just in the channel for the King's ideas and the original Open store pain experience, let the brand in the development of network sales, still to channel for the king, on the one hand by the independent of the loss of the company to change the size (such as the customer) to see the direction of the practice, on the other hand is not clear independent of the brand's development of the core value of the business!

In my personal experience of Taobao, Cat and independent consumer, there are three core values for brands to do independent business:

First, the formation of channel dynamic balance: This is a very basic core value, Third-party channels for the brand Chamber of Commerce is always in the game state, it is impossible in a category to let a brand a single large, so that the channel can not obtain benefits from the brand maximization, and for the brand, to become a category boss is forever Pursuit, Such contradictions are irreconcilable. Therefore, brand manufacturers continue to the third party's network channels to promote resources to hope that they become the largest brand in the category, however, the channel will continue to support other brands to form the situation of multiple brand competition, in such a competitive state, to "bid" for the flow of liquidity (such as Taobao through the train) of the third party network channels will gain great benefits. If you have an independent consumer, you can create a dynamic balance with a third party channel, for more resources, if the Third-party channels do not support their own independent consumer can still be in the category of the boss to develop. Again, third party channels can be sealed at any time, independent of the consumer is not the risk.

Ii. access, registration, transaction of all users and establish a true CRM system: for Taobao, Cat, Jingdong pop, such as the third party channels, if there is no user purchase, the brand will not be able to visitors, registered users to analyze, and can not have their data for two times marketing, The brand will end up owning only the trading user. So where does the user come from, why not registered, why did not register, why did not buy, what means to let unregistered users register, when to register but did not buy the user to carry out marketing, marketing what content and so on these analysis and practice for the brand business than only to get the transaction users have more value, will also be formed in the CRM core competitiveness, itself this is the network than the offline entity shop stronger advantages, so that the brand of CRM system is more complete, these can only own independent of the business can get!

Third, the expansion of the system so that business innovation to obtain brand development opportunities: For a simple example, C2B (customization) for the jewelry and high-end clothing brands must have thought about it, and feel that the network more convenient, but if you want to third-party channels to achieve this function, You need to wait until the demand channel of the business enough and can contribute to the channel profits, otherwise do not expect the channel will be technical to individual brand support. Of course, there are other different brands in the system for a variety of functional requirements, Third-party channels can not meet the brand needs of technical completion of personalized functional needs. Independent business because of the openness and expansion of technology, brand can be based on innovation and personalization to carry out functional development, to win more than the development of a larger brand opportunities! And let the brand is not because of third-party channels operating from the waste technology capabilities, you can say: for a lack of technical capacity of the brand, the future is impossible to be competitive! See the last column, "the traditional retail industry that despises technology is a must die"

The three core value analysis is over, it is estimated that the brand will want to understand, to do the independent of the customer is a representative, but it burned a lot of money, loss so strong, this matter value is big but it is not worth the candle. In fact for many brands, especially the traditional ownership of a number of offline entity store brands, you have to change the idea to operate independent business.

The first is to establish the basic technology of the cost of the customer, now has a mature system of the customer, the licensing fee is tens of thousands of yuan, plus the interface personalized to spend another thousands of yuan, 100,000 yuan has been able to make a member system, promotional systems, advertising management systems, commodity management systems, promotional management system, such as a Such a business mall can support about 1 billion of the sales scale. If you really think that they are rich lazy do not want to learn and understand these cost-effective systems, by a variety of flicker, the cost of 100,000, let the brand to dig 300, 5 million to do a separate business I have seen a lot.

Next is the flow cost, now the cat's entry costs up to more than 150,000, the deduction point is more than 5%, Taobao through the single click cost of the average in 2 yuan (also need to be high hand to do). I do the promotion of independent, single click cost can be controlled within 1 yuan, and then can and partners to talk about independent cooperation, access to a variety of free resource support. This example shows that the third party network channel due to the development of these two years into the merchants too much, leading to the end of the flow dividend, the internet has been less than the flow of third-party channels. The second is a cat shop because there is no independent technology interface, the brand can not be the form of cooperation to obtain more free resources support. including their own offline entity store diversion, if the result of the cat shop is the entity store flow if not the brand store trading, basically equivalent to free traffic to the day cat (entity shop in the Cat shop Publicity Day cat registration). But if it is in the entity shop to promote independent, the user will be registered in the independent, so that traffic is really realized from the line to the line, access to the real store can not manage and flow of "flow" resources, through the way of online access to this part of the flow and stability, CRM can be managed to enable registered users to achieve transactions.

After a simple accounting of core values and costs, is independent of the fine operation of the business and development planning, if the latter step can be as important as the cat store, these values can really be used for brand businesses, or will return to do independent of the magic curse!