At the beginning of this year, Ding Lei, who has always placed great hopes on Netease's strict selection, proposed Netease to strictly select the "small target": Netease selected GMV to reach 7 billion this year. Once the goal is reached, it will surpass the sales of MUJI in China. NetEase will be selected or become the leader of China's “no brandâ€.
Recently, a towel pushed Netease's strict selection to the cusp. The strange thing is that after the battle of the air, the focus of the people who eat melons is not the "infringement" dispute, but Netease's strict selection has even taken the opportunity to "fire".
From Ding Lei pigs, to Netease cloud music package Hangzhou Metro, Netease koala express carton "e-commerce parcel advertising", Netease in the interest of this change in the various marketing.
A few days ago, Netease, who was "stayed by a huge ideal" by Ding Lei, ordered a fire.
Netease strictly selected and cooperated with Jiangsu Satellite TV to launch the "Black Pineapple" series of products, relying on the "We Love the Love of God" (hereinafter referred to as "I Love") program, based on the T2O model, marketing means further. Not only that, at the beginning of this year, Ding Lei set a "small goal" of 7 billion GMV for this "heart", how can NetEase choose to seize the hacksaw ridge?
The "infringement" dispute started the ODM model
Since the beginning of the line, NetEase has been deeply challenged by “infringementâ€.
In November 2015, Netease selected the test stage, and released some posters with similar products to well-known brands, saying that these products “use the same material, from the same manufacturerâ€, but the price is more similar to the original brand. Low, and said "good life, not so expensive." Because of its bold blunt "original original material" caused a large number of users to vomit their "infringement", and accused it is "imitation" of MUJI. NetEase, which can't bear the doubts of the outside world, was selected in January 2016 to announce that it changed its name to “Netease's strict selection is an ODM model of e-commerce†and began to publicize it on a large scale.
Since then, Ding Lei, who is known as the "living home", has repeatedly used personal IP for Netease to strictly select the station team, and expressed his optimism and support for the ODM model, and even personally started to find the tea and tea for Netease. In this regard, the ODM model has become the core symbol of Netease's strict selection.
The ODM model refers to the “original design manufacturerâ€, which means that after the manufacturer designs a product, it may be selected by some brands and required to be branded with their own brand name or slightly improved. In the ODM mode, the appearance, fabric, size, etc. of the product, the manufacturer, not the brand, the manufacturer can sell the solution and the product together with multiple brands.
Netease strictly selects the dual role of the buyer and the quality control in the supply chain of its ODM model, in order to screen the products for users and sell on the platform selected by Netease. This model also brings new attributes to NetEase's strict selection, such as eliminating brand premiums, lowering prices, and establishing close relationships with suppliers.
Despite this, the outside world’s doubts have never changed, and the doubts of “justified and strong villagesâ€, “copying big-name designs, imitation materials†are still endless.
But it seems that Netease's strict selection has become bigger and bigger in the controversy.
According to iResearch data, Tmall and JD.com accounted for over 80% of the B2C shopping website in China in 2016. In the one-trillion market where the giants are sewn together, Netease has a small selection and the ODM model has become a sword for its break.
From "Imitator" to "Imitated"
The ODM model brings Netease's choice not only to brand characteristics, traffic enthusiasm, but also to real revenue.
NetEase was officially launched in April 2016, and in just over a year, it became a "dark horse" in the electric business community.
Since Q2 in 2016, NetEase's strict selection has brought NetEase's net income in mailboxes, e-commerce and other business segments to a higher level. During the quarter, the revenue of this sector increased by nearly 300% year-on-year. Even in the Q1 of the off-season of e-commerce sales, the sector's revenue maintained a steady amount, continuing to grow year on year. The overall success of the revenue was mostly due to the contribution made by NetEase to the latecomers.
As Ding Lei's e-commerce platform, which has placed a huge ideal, NetEase has carefully selected nine categories from the original home textile home, to kitchen and bathroom, toiletries, luggage, maternal and child food, etc. SKU has been tested. The number of operations increased by more than 5,000.
NetEase CFO Cai Anhuo said at the financial analysis meeting that Netease e-commerce continued to develop in a healthy way. Of course, this development is inseparable from the huge drainage of the Netease portal. As of the fourth quarter of 2016, the total number of valid users of NetEase mailbox reached 910 million; Netease News's popularity and industry reputation are far ahead of similar software. These resources have become NetEase's free choice of free traffic portals, and massive traffic as an innate advantage, not only makes its early development relatively easy, but also for Netease's strict selection of traffic support, business cooperation and marketing promotion. Development potential.
However, in fact, whether it is traffic or the growth of SKU, it is a “icing on the cake†for the development of Netease's strict selection. More importantly, in the era of consumption upgrades that have already arrived, Netease has carefully selected to cater to the continuous upgrading of consumers. Demand.
According to the “Top Ten Trends in Global Consumers 2016†released by Euromonitor, there are some changes in consumer demand: they are more willing to spend money on time; they are getting healthier and more “criticalâ€. More like the value-for-money products with valuable innovations... Consumers' choice of consumer goods is no longer characterized by low-priced, large-scale “Taobao-styleâ€, but rather the “boutique†attribute of brand and high quality.
The China Online Retail B2C Comprehensive Annual Report 2017 released by Analysys think tank pointed out that the competition among existing e-commerce is more aimed at grasping and arranging the trend of future retail industry. In terms of user scale, market penetration cannot be further realized. In the context of rapid growth, it is particularly important to improve efficiency and achieve differentiated competition at existing scales through innovation capabilities. "Quality e-commerce infiltrated by upstream manufacturers by ODM, C2M and other manufacturing methods will become an important trend in the online retail industry upgrade."
Netease has chosen as the pioneer of the ODM model in the e-commerce field. In order to meet the needs of such "middle class people who love and enjoy the advantages of globalization", the "less and fine" product strategy is intended to help users shorten online shopping time. And provide quality products with guarantees. This business model, which is contrary to the "large-scale, multi-selection" characteristics of the mainstream e-commerce platform, is inconsistent with the standards of the consumption upgrade era and the consumer concept of quality demand consumers.
Netease strictly selected the successful breakthrough through the concept of consumption upgrade, and also gave a good model for domestic e-commerce companies who have been trying to get rid of the low-price image for many years.
Under its driving, following Jingdong and Suning shouting the slogan of quality e-commerce, Tencent and Xiaomi have successively launched the project of upgrading consumption concept. Taobao also recently launched “Taobao Heart Selectionâ€, which is closely selected by Skynet. . It can be said that NetEase has carefully selected this half-way e-commerce platform to change from "impersonator" to "imitation".
7 billion "small targets"
At the beginning of this year, Ding Lei, who has always placed great hopes on Netease's strict selection, proposed Netease to strictly select the "small target": Netease selected GMV to reach 7 billion this year. Once the goal is reached, it will surpass the sales of MUJI in China. NetEase will be selected or become the leader of China's “no brandâ€.
In addition to the funds and traffic provided by the NetEase portal, it also inherits the marketing thinking of NetEase. The Netease strict selection not only made innovations in the marketing model, but also made changes in product strategy. In the current "consumption upgrade", NetEase has strictly selected the product + marketing "double upgrade" strategy.
On May 22nd, NetEase rigorously entered into a cooperation with Jiangsu Satellite TV. Based on the star variety show "I Love" which will be aired in June this year, Netease will jointly launch the love theme series "Black Pineapple".
The idea of ​​"Black Pineapple" comes from the Cantonese "like you", with the simple pineapple as the logo. The series products are black, gold and pink as the basic color. The product design language is simple, brisk and cute. The product classification includes jewelry. Couples snacks, couples, home space and other types.
This is the first time that Netease has carefully selected its own products. This move not only enriches SME's carefully selected SKU, but also becomes a new step for Netease to strictly select from relying on suppliers to designing products.
With the increasingly close cooperation with the supply chain and the increasing attention of products, NetEase has gradually developed its ability to dominate the supply chain and pay for its original design. This is the embodiment of Netease's selection of hard power. In addition, the original design also represents the gradual consolidation of Netease's selection of soft power. After having sufficient data and accurate user portraits, NetEase has carefully selected the needs of consumers and designed products for users' pain points.
Netease strictly selects "soft and hard", and in the way of product quality upgrade, single point cuts into the development of multi-point support, adding chips in the fierce e-commerce campaign.
On the other hand, based on the characteristics of "Black Pineapple" and "I Love", Netease also selected the marketing side.
The “Black Pineapple†series will be exposed in the program. On the basis of the star love reality show, create a sweet and warm love atmosphere, and integrate the product experience into the scene. During the TV broadcast, the viewer can place an order for purchase immediately. This kind of marketing means not only provides the purchase motive of empathy, but also strengthens NetEase's selection of the brand IP of “Black Pineapple†and provides an intuitive and convenient purchasing channel to quickly convert the purchasing tendency of products into purchasing behavior.
However, at this time, NetEase's strict selection of marketing model has a new entry point.
When I Love was broadcast in the final episode of 2016, the audience rating was as high as 1.71% and the market share was as high as 5.05%. In 2015 and 2016, the "I Love" network broadcast volume has exceeded 2.2 billion, #我们相爱å§# Weibo topic reading volume reached 7.97 billion. After two seasons of precipitation, "I Love" has become one of the most popular variety shows, and has also formed a brand image of fashion, city, taste and romance.
Among them, "I Love" got more attention from female users. In terms of web search volume, female users search for "I Love" as much as 64%. At the same time, female consumers also have more willingness to spend on online shopping. According to the data in the survey report on consumer spending habits in China, the proportion of people who use online shopping to increase the number of purchased goods is 7.4 percentage points higher than that of men; the proportion of women who increase consumption expenditure is 7.3 percentage points higher than that of men.
In contrast, NetEase is strictly selected, and the search rate of female users is only 30%. However, the "inferiority" of low female users will become a new force for Netease to strictly select the e-commerce market. This cooperation will help Netease to strictly select a new entrance to expand the female market and increase market share.
Source: Baidu Index
This cooperation with Jiangsu Satellite TV is also a new method for NetEase to strictly select the “T2O†model for marketing upgrade. T2O will transfer products from the TV end to online sales, and connect the program, Netease strict selection platform and IP derivative product entity into a closed industrial value chain. The “Black Pineappleâ€, which became Netease’s strictly selected marketing upgrade, will become a dazzling star in TV marketing.
It seems that Netease strictly selects small targets and has a play!
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