How should traditional enterprises change the track and open a new era of cross-border? On the topic of transformation, Hugo had an in-depth exchange with Zhang Meng, the brand head of shoplazza, who said that DTC should not be regarded as a complete business, but as an auxiliary and enhancer of existing business. Many things can be solved easily. sea shipping service
1、 Where is the end point of cross-border e-commerce?
After visiting many cross-border sellers, Zhang Meng asked: where is the end point of being Amazon, independent station, brand going to sea and cross-border e-commerce? He tried to bring himself into the perspective of the seller and got three points of experience.
First, we hope that the business will grow by itself, and we don't need to be watched by people day and night. The enterprise is allowed to turn good luck alone, but the reality is to suffer from hardship and more hardship;
Second, I hope the business can compound interest. Every investment can become greater support for the business, rather than a one-off deal. In fact, the current situation faced by the seller is the conflict of interest between the seller and the platform. Who is this customer? Is it a platform or an enterprise customer?
Third, I hope the business can be extended. I sell Bluetooth headsets this year and keyboards next year. Bluetooth headset customers can also buy keyboards. In fact, every new product development is equivalent to a new birth.
Facing the above practical problems, Zhang Meng believes that DTC brand going to sea may not be the best solution to solve the gap between hope and reality, but it is one of the solutions.
2、 How DTC brand goes to sea -- limited brand strategy
Zhang Meng believes that DTC can solve the problem of self growth; The second is to solve the problem of compound interest, so that customers can truly become brand users, and marketing compound interest with private domain traffic as the core; Third, it can be extended, and the product extension with the user's mind as the core.
DTC seems to be able to solve these three problems of the seller, but in fact, it is a truly successful Sea brand
Or those existing brands, why can't we do well? Zhang Meng summarized three reasons:
The first is the investment and return cycle in the early stage. Brand operation often requires higher investment and longer return cycle in the early stage;
The second is the evaluation of sunk cost. The sunk cost of brand operation is more difficult to evaluate and often higher;
The third is the current situation of commodity homogenization. Brand operation requires more differentiated commodities, and the problem faced by sellers is can there be differentiated resources on hand?
In the face of the above situation, he put forward an idea: "limited brand strategy", expanding the existing business, which is called multi-channel growth. Don't regard DTC as a complete business, regard it as an auxiliary of the existing business, and regard it as an additional channel. Some sellers will think that it is very expensive to be a brand station in the early stage. He mentioned that the platform cost is about $100 a month for brand words. In addition, 1000 yuan a month is enough for branded packaging, model photos and three-dimensional rendering of products.
He cited an example. In the Google search juicer, there appeared a good independent station brand sold in Amazon, with hundreds of traffic every month, but the brand name was named "hsj-1518", which is the code of factory orders. He believes that this reflects the current situation of many cross-border sellers, not the problem of money, but that they are not aware of doing things well.
In contrast, several Juicer overseas independent stations ranked at the top, the color design and function introduction of the whole website are very beautiful and perfect. This is the difference between websites. sea shipping service
Therefore, he drew several conclusions:
First, it is suggested that the seller should incorporate the independent station into the enterprise strategy. It is not to spend a lot of money on traffic, but to make a good site and brand;
Breaking point 2: attract private domain traffic by using customer traffic, and divert the overflow part of the platform, search words, after-sales information, KOL evaluation and other external traffic to independent stations to form secondary transformation;
Third, focus on creating a difference point. Sometimes differentiation has nothing to do with abrasives, inventory and cost. It may be just a little inspiration and the pursuit of beauty.
He mentioned two examples. The American hand brush clothing (surgical clothing) brand "figs", which has increased 100 times in five years since its establishment, officially went public in May last year. Its only difference is that the model photos are very good-looking and the model smiles very well; Another brand, exway, has hundreds of thousands of fans. Last year, its revenue exceeded US $10 million. The first product is only to solve the problem of "electric skateboard is not good-looking", and it is very popular as soon as it is listed. sea shipping service
Finally, what do you need to do DTC? Zhang Meng believes that the first is product evaluation, the second is to solve product homogenization, concentrate on differentiation, and the last is branding. Once the products come out, the platform e-commerce still benefits.