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The Rise Of New Consumer Brands Needs The Decentralization Of Traditional Brands

2022/4/6 13:39:00 0

New Consumption


In his book what the new generation of consumers want: the rules of brand survival in the era of personality, Baird pointed out that:
"Post-95" are the indigenous people of the Internet. They are online at any time. They may not be fully mature, and they have seemingly contradictory values - personalization, collaboration, independence, diversity, knowledge and pragmatism - but they are the backbone of the global Internet and their consumption potential cannot be underestimated.


For brands, "post-95" is very challenging. Their complex and constantly developing culture makes it difficult for marketers to grasp. How can brands quickly build awareness among these new generation of consumers? How to keep up with the frequency of young people and integrate into their culture? How to make the new generation of network happy "chop hands"?

Compared with generation X and millennials, generation Z has its own unique growth environment. In definition, generation Z is also known as the Internet generation, because this generation is greatly influenced by the Internet, smart phones, tablet computers and other technological products in the process of growth.

What complements each other is that the low use cost of the Internet, the breakthrough of time and space restrictions, strong interaction and the information exchange form of words, pictures and videos also directly lead to the group characteristics of generation Z, such as distinct personality, willing to try new things, strong social demand and advocating high appearance.

They began to live according to their own sensibility, likes and dislikes, and then the consumption of the whole society went from the "have era" to the "be era" (the era of self realization). "Be era" means that the process of consumers' purchasing products is also a process of "self realization".

The "niche" in the era of "niche brand" refers to the satisfaction of subdivision demand, including but not limited to function, price, scene, crowd, etc.


  01、 The rise of new consumer brands


Five years ago, you asked young people what they wanted to do to start a business? Most people will say dry o2o (online and offline integration). Today, five years later, with the same problem, half of the people may say that they want to be popular and become content creators; The other half will say that they want to be a new consumer brand and a little lucky brand they like.

The new economic variables, such as Hongren, algorithmic, 5g and c2m, have produced resonance, and China's consumer market is undergoing unprecedented deconstruction and remodeling.

In the current era, the cognition of business skills needs a new understanding, "in essence, all expressions are copywriting, all outputs are creativity, all products and brands are content, and all contents are advertisements."

Behind the rise of new consumer brands is the change in the concept of the younger generation of consumers, such as paying for feelings and recharging their beliefs. Many new consumer brands sell half of their products and half of them sell copywriting. On the one hand, the product itself has enough attraction in quality and appearance; on the other hand, it has subversive internal psychological logic and spiritual value guidance in communication means and brand building.

In November 2020, Yixian e-commerce, the parent company of perfect diary, was listed on the New York Stock Exchange of the United States, becoming the "first domestic beauty makeup stock" listed overseas; In March, Winona's parent company, betaine, went public. Huaxizi has been established for three years, with sales of nearly 3 billion.

The "three and a half" set up in 2015 will surpass Nestle to become the top 1 category of blended coffee in 2020. In 2020, tmall's double 11 specially opened a new brand special venue, and attracted 50000 new brands to participate. In terms of sales, the cumulative turnover of 16 new brands on the double 11 exceeded 100 million yuan, nearly three times that of 2019.

Bubble mart, perfect diary, huaxizi, sandun.30, ramen, etc. have not been established for a long time, but the rapid rise of new consumer brands in the subdivision categories has effectively occupied the minds of users. Among them, perfect diary and bubble mart are all the way to the market.

For these brands, the post-90s, the post-95s, and the post-00s may be more familiar with them. What have these rapidly rising niche products, known as new consumer brands, done right, and what enlightenment and reference significance have they brought to the whole industry?


  02、 The essence of business: reconstructing the underlying logic


If the essence of business is exchange, how can exchange be realized? What constitutes today's business model? With the development of the network, the relationship between people (exchange is also the relationship between people) has become happening anytime and anywhere.

Entertainment platform, content production platform, information platform, consumption platform, all of these platforms may become new tools for communication and sharing with others. In each information exchange process, a brand-new scene of business exchange may be generated. For example, someone shared photos and delicious food in a group of classmates, which led others to plan to visit Tibet.

Therefore, the basis of commercial exchange has changed a lot. In the traditional times, the value transmission of exchange comes from the joint action of product, price, advertisement and channel. However, today's young people, only for the product itself and moved? Just because of the intensity of the promotion and impulse? Is price still the most important factor determining the success or failure of an exchange?

First, the change in the underlying logic of business is a change in relationships.

Communication scholars in the era of mobile Internet believe that today's business bottom logic = trust + connection. Trust comes from users' recognition of products and brands, while connection involves a series of actions, such as sharing, participation, interaction and so on. On the basis of trust, the connection between people and things, the connection between people, and the connection between people and common values and hobbies make communication begin and transactions happen.

All kinds of fans and communities are essentially listed as a kind of commercialized "strong relationship". This strong relationship is based on interests and hobbies, and even has a certain identity. For example, the "small owners" of tea beauty claim to be the spiritual shareholders of the brand.

In addition, acquaintance relationship is also a powerful communication network. Many transactions are facilitated by closer ties between relatives, friends, classmates and colleagues. Based on these strong and trustworthy relationships, many new brands can make a way in the fierce market. For example, pinduoduo's ten billion red envelope marketing strategy is to use acquaintance relationship to promote innovation.

The individual has become an important node in the dissemination of information, and the previous state of media elite controlling the communication pattern has been broken. Nowadays, users are both disseminators and receivers. The status of users in the communication process has been greatly improved. The huge social network composed of users has become one of the best channels to spread information and sell products. Following the development trend of short video and learning social interaction are the trends that both old and new consumer brands should grasp.

Second, the change of business bottom logic is the change of value point.

In the past, the most important value point of business is "efficiency". The so-called efficiency is to let consumers spend the least cost and get the maximum value return. Around such a value point, enterprises need to reduce the cost of products as much as possible, while the quality is the best. For example, the Nokia mobile phone used to be of such good quality that it could not be broken.

Around the factor of efficiency, enterprises also need to do a lot of advertising to let consumers clearly understand the products and reduce the selection cost of users. For example, Hafei shampoo tells users that it is dandruff free, and users with more dandruff can easily choose Hafei; Products also need to be expanded to the largest extent, so that more potential consumers, more convenient and faster to buy.

However, in the era of the rise of new consumer brands, "efficiency first" has to give way to "aesthetic priority". For example, when Steve Jobs showed the first iPhone to the world, many people would scream "wow". They were amazed at such a perfect industrial design, which brought the ultimate aesthetic experience. Therefore, since then, there have been all kinds of "powder", fruit powder and rice flour. Fans are willing to queue up for each new product launch, This is a high degree of recognition of product aesthetics.

Another example is to compare the Kouya books in Japan with Amazon's bookstores. Amazon's pursuit is to quickly find the goods needed, place orders quickly, and deliver goods quickly. This is efficiency first. However, mooya Bookstore pays attention to the environment, pursues the immersion experience of users and the recognition of the leisure, comfortable and petty bourgeois life style, which is the pursuit of aesthetics.


   03、 Product and communication: Decentralization


Decentralization is a great change in today's business, a very significant feature.

Let's take a look at the change in production.

With the post-90s becoming the mainstream of consumption, personalized consumption has become an important appeal of young people. However, large-scale rigid production is difficult to meet the needs of personalized customization, and high-quality customization seems to mean high price and high cost. "Defining requirements" has become the production orientation of intelligent manufacturing, which can produce low-cost "small orders" with defined requirements.

In December 2020, Alibaba's c2m business unit announced for the first time that the annual active buyers of the "Taobao Factory Direct stores" launched in March that year exceeded 100 million, and the factory products in the shop became the sales champion in 235 mobile phone Taobao sub categories.

C2m actually reconstructs the relationship between supply and demand. On the one hand, demand can quickly become the instruction of production; on the other hand, the factory's direct store becomes a window to face consumers, providing consumers with goods, and at the same time, it transforms the consumer's demand into the function, style, design, pricing and so on of a commodity through algorithm.

For Alibaba's quick smart manufacturing, c2m is not a complete personalized customization, but rather a reconstruction of the traditional supply-demand relationship, a more accurate matching of supply and demand. Reverse customization from consumers to manufacturers.

The difference between the rise of new consumer brands and the traditional mode of production and marketing lies in "decentralization".

In the traditional era of production and marketing, factory production, shopping malls, retail, from top to bottom, "production and sales" is the center of the exchange link. The products produced by a factory face thousands of consumers. The same is true of the whole marketing link. Enterprises advertise and market, and transmit the value and interest points of the brand. Facing the audience, they are "forced to instill" and invest a lot of marketing expenses, thus forming a large-scale and high-frequency long and lengthy communication, and forcibly occupy the minds of consumers. This is a kind of boasting behavior of Wangpo selling melons.

Although traditional consumer brands will also spend money to buy traffic and effect. KOL (red men and opinion leaders) are regarded as cheap image spokesmen, but they are not good at managing users. Traditional brands are addicted to the measurement of effect indicators such as the number of grass planting, exposure times, live sales, purchase conversion and so on, but are not good at creating value resonance with users.

Therefore, the traditional production and marketing are "seller centered".

What is "decentralized" marketing thinking? Is looking for the brand values alliance and taste spokesperson.

Living in the online world, everyone is live every day. At a random moment of feeling, sharing a song, or sending a micro blog, circle of friends, little red book, and shaking tone, all convey the little bits and pieces of ordinary life to the people around them, which may be ignored, bored, or, perhaps, but will always be loved and concerned by some people, To be imitated, others with similar interests will always be found in these behaviors.

Those who always like you are your values alliance. For a product or brand, to become its taste spokesperson, which is also the core essence of online red. Everyone has the opportunity to become an online celebrity. The traffic and effect are not bought by spending money. The reputation and influence of the brand will naturally spread and become a private traffic with strong stickiness and potential.

What is private domain traffic? Public domain traffic is often fixed goods, people move, supermarket shelves, e-commerce shelves are the same. Private traffic means that people do not move and goods move. Products are designed as content or programs, so that users like the content and indirectly like the brand.

Although new consumer brands are not new, the rise of new consumer brands, in addition to the awakening of life cognition of the younger generation, business owners and brand owners rely more on the comprehensive integration of social network and private domain traffic.

For example, zihi pot and Wang Satin quickly became popular, mainly relying on content absorption. Zihi pot even co created with the content of Tencent video hot variety show "tomorrow's children band season". By linking the content with the brand, it indirectly realized the fans of consumers and precipitated private traffic.
 
For new consumer brands, the decentralized product and marketing concept is to take all consumers as the center and meet the diverse value needs. From production to dissemination, the seller and the huge and diverse buyers have equal dialogue and communication.


  04、 Transformation problems of traditional large enterprises


The birth of new consumer brands represents the interaction and reaction between a new productivity and production relations. In terms of business model, product creation and communication mode, they are different from the traditional ones.

For traditional enterprises, today's challenge is no longer just to consider how to go from offline to online, but from the abandonment of previous path dependence, the understanding and judgment of the new commercial essence, and the change of new communication concept.

Centralization, efficiency first, and financial data as the basis of measurement, these business strategies in the past strong seller era are very easy to work, as long as you invest enough resources and sound enough. However, today, we will find that the market is infinitely subdivided, and many new rising brands do not pursue the scale of the huge, but in the scope of the product concept and brand value it advocates, to achieve the extreme and attract specific groups of people.

If the market is infinitely subdivided, and the attraction of young people is firmly locked in. For example, in the beverage market, tea color represents milk tea, Naixue represents fruit tea, and Yuanqi forest represents new inflatable drinks, then the established pattern of traditional Cola products, lactic acid drinks and other beverage markets will be destroyed, Traditional brands can only watch the market share be divided by those small and beautiful drinks.

Fundamentally speaking, the nature of business has changed, and everything will change in a subversive way.

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