Vertical consumer is more conducive to brand, but also easier to obtain a high viscosity of the user base

Absrtact: "Editor's note" proprietary cross-border business model and domestic electric dealer similar, generally divided into vertical and integrated two types, vertical-type foreign trade is often easy in a subdivision area to do fine, get a relatively single-minded customer base, more easily profitable, but also Yun

"Editor's note" proprietary cross-border business model and domestic electric dealer similar, generally divided into vertical and integrated two types, vertical-type foreign trade is often easy in a subdivision area to do fine, to obtain a relatively single-minded customer base, more easily profitable, but also contains a huge system risk. Multi-product type is a kind of can support the high growth pattern, is advantageous to the big scale, but in the personnel management and the cost control has the difficulty, in the short term is very difficult to be profitable.

For these two types of proprietary cross-border business, there is a sharp contrast in the industry, regardless of its superiority, clear development ideas and understanding of their own must be essential. Recently, the vertical Cross-border consumer representative-Buchan technology to billion bang power network told the reason for its vertical web site, pointing out that vertical consumer more conducive to brand, but also easier to obtain a high viscosity of the user base.

Buchan Technology, headquartered in Tianjin, has been working as a trans-border power provider for optical products since 2012 and has established operations teams in North America and Europe. In order to embody the professional, Buchan Technology also operates a number of vertical web sites, each site for different positioning of products and customer base, and for different countries to launch different languages in the market sites.

The company's general manager Yang Liming told billion power network, customized products suitable for a single category of vertical consumer, "such as we are engaged in the glasses category, it is more suitable for the vertical type of the self-built website." If the site category is too miscellaneous, it loses professionalism, and it is difficult to ensure that the user experience. It is also difficult to open a shop with glasses to a third party platform, because it can not be customized products. ”

Yang Liming said that vertical business can be more professional, but also to achieve higher gross margin, at the same time, this is in line with European and American market demand and consumer habits of a way. Buchan technology each vertical site is targeted at a particular consumer, offering products that match their tastes.

And, in terms of glasses, the Buchan technology also makes a further vertical subdivision. At present, the company has a total of three mature glasses brand: One is for white-collar, business people's high-end brand, one is for young people's tide card, the other is for the elderly brand. Each brand or every grade of products may be considered separate from the special to do a vertical website.

According to its disclosure, each vertical site users are not much, but customer loyalty is very high, the user stickiness is very strong, the site's repurchase rate has reached 40%, and profits are generated in the repeat purchase.

"Some people think that such a way would be distracting, but that's not really the case." The cost of building a website is very low, how to operate is the most important. Each of the vertical sites we have a dedicated staff to do so that will be presented to the user a more specific things, but also allows users to feel our expertise in this field. "he said.

Billion power network learned that Buchan technology last year's sales of about more than 20 million euros, and this year's estimate is 40 million euros, a short two-year development time doubled. This may prove to some extent the correctness of its development ideas.

For the choice of vertical category or general category of consumer, Yang Liming said, this is mainly to look at product positioning and customer base positioning. "You have to do a single private brand, which is suitable for vertical class, you want to do channel brand, it is suitable for general class." In contrast, the overall category of consumer brand value-added lower. ”

However, doing vertical business-to-consumer does not mean that the category cannot be extended. It is reported that, in addition to the main category of glasses, Buchan technology is currently operating a number of other categories, but are respectively taken out to do vertical subdivision of the site.

In the category expansion, Buchan technology more cautious, in order to avoid homogenization of competition, will choose some unpopular products, but must be high margin, easy to make brand. For example, it has hired a team of foreign designers to develop some of their own-brand smart watches, smart glasses and other wearable equipment, is expected to be officially launched early next year.

He pointed out that the blind expansion of the category in a Web site often leads to too much clutter, and the quality of service is reduced. "The customer base originally knew you this website, is because of you a certain category to do well, then you in the user's heart has formed this kind of formula." If you fancy expanding the category, customers will feel that you are not professional, brand awareness will be greatly reduced. ”

Yang Liming also to billion power network pointed out that before many self-employed to do comprehensive category can make money, more rely on "Made in China" advantage, low price to win. But as competition intensifies, this advantage is greatly weakened, profits are getting lower, and brands are hard to make. "In contrast, the integrated category is suitable for Third-party platform to do, is not suitable for self-employment, this may also be the Orchid Pavilion set Shang open platform for the reasons." ”