On September 3, the 12th China Real Estate and Pan-Home Industry Cross-Border Summit with the theme of "New Opportunities, Big Brands" and the 2022 "Top Ten Brands of Building and Sanitary Ceramics" Award Ceremony were successfully held in Foshan . At the meeting, the organizer specially invited Mr. Jin Cuodao, the father of explosive product strategy, the pioneer of explosive product strategy training and consulting category, and the founder of explosive product strategy research center, to give a wonderful speech titled "Reject Involution: Three Major Explosive Product Trends" speech.
The following content is a transcript of Jin Cuodao’s speech (not verified by me):
Involution is a very popular term in recent years. How to understand involution? Involution means extreme competition, making the entire industry less profitable. Of course, involution actually has a larger background, that is, the general environment has undergone earth-shaking changes. The key theme I share with you today is about how to create big hits and seize the big trend in the era of involution.
01
Speaking of involution, the most obvious thing is the brand’s traffic, which has gone through three stages in total. In the early days, it was the channel era of brand + advertising, and companies used the traditional method of advertising to obtain traffic; then it entered the e-commerce era of category + brand. E-commerce was very complicated, but it also created many new companies and new products. The brand has grown rapidly; in recent years, it has entered the Douyin e-commerce era of category + IP. Douyin e-commerce has become more involved, but there are also many personal IPs and commercial IPs that have risen sharply at this stage. In this regard, I have summarized the three major anxieties in the era of involution:
Anxiety 1: Short video traffic reshuffle
In 2020, the traffic of short videos exceeded that of social software, and Douyin now has almost 600 million daily users; for e-commerce’s 618 and Double Eleven, live e-commerce has become the first entrance; in addition, Douyin e-commerce is growing at an alarming rate Douyin e-commerce has grown at a rate of 50 million last year, and this year Douyin’s GMV target is 2 trillion; there is also a very important factor, which is the change in young people’s consumption habits, the emergence of short videos, their purchases methods, consumption behavior habitsEven the scene logic has undergone very big changes.
Anxiety 2: Traditional traffic dividends dry up
There are several key words in current traffic. The first one is expensive. Whether it is traditional e-commerce or offline traffic, the price of communication traffic continues to skyrocket. The second one is difficult. Not only has offline customer flow dropped sharply, but the effective traffic entering the store has also declined. Especially after the outbreak of the epidemic, offline customer flow has been greatly affected. The third one is strenuous. It will share that many traditional strategies are becoming increasingly unavailable. For example, the three pillars of e-commerce traffic—through trains, ranking lists, and cost-effectiveness—are now difficult to drive user growth. The fourth is weakness. Brand dividends, channel dividends, and advertising dividends are declining sharply. In the past, some companies obtained dividends by promoting their brands, but now the dividends have become less and less.
Anxiety 3: Explosive traffic subverts tradition
Specialization, precision, specialness, and novelty are the four main ways of "cross-border robbery" in various industries. Specialized means extremely professional. In fact, there are precedents in all walks of life for a company with 5,000 SKUs to be overthrown by 50 SKUs. Making a professional track the strongest and most ruthless is also a new way of playing and a breakthrough. Fine means extremely fine. A refined hot model can overturn many micro-hot models. In the underwear industry, there is a brand with only a single SKU. They rely on extremely refined operations to achieve 500 million a year. Special refers to novelty. A special category is a highly lethal weapon. In the ceramic tile industry, there are currently some brands focusing on special tracks to break out of the siege. New refers to new scenarios, new functions and new categories. China's huge market capacity has caused many new categories to directly trigger market reshuffles as soon as they are born. For example, there is a very large electrical appliance category abroad called vacuum cleaners, and vacuum cleaners are also available in China. However, the market size of this category has not yet developed, and most of the market share has been directly harvested by the emergence of sweeping robots. It can be seen that innovative products, innovative categories, and innovative scenarios have stronger lethality.
02
In the context of huge changes in traffic, China's entire business environment has changed from offline channels in the past to offline + online channels, and now it has become Multimedia traffic coexistence is king. Multimedia traffic consists of offline traffic + e-commerce traffic + social traffic. Any company doing branding and marketing must follow the usage rules of multimedia traffic.
If you want to grasp the rules of multimedia traffic, you must first understand the explosive product strategy. The essence of the explosive strategy is a very efficient efficiency weapon. What lessons does it have for the ceramic tile industry? I have done some focus, research and development and adjustments on the ceramic tile industry. Next, I will talk about three major trends. These three major trends have been widely verified in many other industries, especially the home furnishing industry. Therefore, these three major outlets are not only opportunities for the ceramic tile industry, but also the future of the ceramic tile industry.
Top 1: All success is the success of strategic single products
If you want to build a company or a brand with the highest efficiency, you must seize the opportunity of strategic single products. Strategic single products have great performance, that is, products with very strong sales, brand effects and profits. Strategic big items have big strategies, which means they cannot lose strategically. Strategic single products have great differentiation, which means they have strong product power. The more competitive the industry is, the more companies need strategic single products.
Here we need to first sort out the underlying logic of the explosive product strategy. Hot products are 1, marketing is 0, and together they can produce a 10-fold effect. Only hot products can drive traffic, channels, users, and even brands with the highest efficiency. In the past, the market was dominated by single channel traffic. In the context of single traffic, user demand was driven by brands, sales were achieved by channels, and performance expansion was amplified by chain scale. At present, enterprises need to make several upgrades to the traditional model. First, not only does it need to have a brand, but it also needs to have hot products. Second, not only channels are needed, but user participation is also required. Third, not only chain scale is needed, but also user reputation.
When you are the first to create a hit product in an industry, you will be able to enjoy the dividends of high growth and high gross profit in the industry. Tmall and Douyin have launched many new brands, new Internet celebrities, and new domestic products in the past two years. They are rapidly growing through popular products.Be seen by users and quickly get to the front end of market traffic. The ceramic tile industry also has strategic single products. These companies have quickly become leading brands by blowing up a category. For example: Jian Yi, who pioneered the marble tile category, Dajiulu, who pioneered the super wear-resistant ceramic tile category, and Owen Lai, who focuses on the field of plain ceramic tiles.
Top 2: Douyin + Traffic Amplifier
"Douyin+" means Douyin plus offline, e-commerce, and entities. It is equivalent to a traffic amplifier. In 2020, short video traffic surpassed social software and became the new traffic benchmark in China. The biggest factor that has led to the subversion of the business ecosystem with the arrival of the short video era is the length of stay of users. This powerful length of stay has caused traffic to gather and gave birth to live streaming e-commerce. After the outbreak of the epidemic, companies that achieved substantial growth have seized on the trend of live streaming e-commerce. Live broadcast e-commerce has caused earth-shaking changes in the underlying logic of the entire marketing. Celebrities are no longer king, but fans are king. The model has also changed from being driven by the marketing department to being driven by user fission.
So how to make fans become the brand’s new traffic portal? I summarized the three core strategies of fan fission. The first is grass planting marketing. If you want to mobilize fans, you must first plant grass so that users and fans can remember and resonate with the product. The second is conference marketing. Press conference marketing is the most important marketing method to make fans split and even make them pay. The third is KOL live broadcast marketing. This is a very important booster to increase sales. If you want to gain traffic and sales in the era of live broadcast e-commerce, you must integrate and utilize these three weapons.
There is a brand in the home furnishing industry that has achieved a "double explosion in product and sales" by embracing Douyin+, called Weiyi Customization. First of all, this brand has a strong ability to grow grassroots. The account has more than 4 million fans, and a single content has more than 2 million likes. Secondly, this brand also creates its own strategic single product, which is a 16,800 yuan package; and they do it Free door-to-door measurement is available 24 hours a day, maximizing user experience and creating a new traffic portal for fans. Through this outlet, Weiyi Customization not only controls the traffic, but also controls the distribution rights of the traffic, and naturally enjoys the dividends of Douyin+.
Third outlet: Explosive IP quickly detonated
I think hot IP is the next biggest dividend and marketing dividend for the home furnishing industry, including the ceramic tile industry. Whoever can seize hot IP will have huge opportunities.meeting. The essence of hot IP is the Internet brand effect, which has four major characteristics: low cost, fast detonation, difficult to imitate, and high premium. There are three core keys to popular IP: the first is to be the first in subdivided categories; the second is independent property rights with obvious differentiation; the third is quantified exposure and fans. There is also a formula for popular IP: big outlet (entry segmentation, outlet pain points, outlet flow) + micro-innovation + being the first.
For example, the brand Tongshifu quickly exploded through IP and became the number one in the segment. First of all, they continue to strengthen the style of the Tongshifu brand IP by turning free traditional IP into their own strategic large-scale brand. After having brand IP, they continued to create IP products through various paid cross-border co-branding. With the hit product, they also gathered fans to hold a fan meeting, and the boss Yu Guang personally went to the live broadcast room to bring the goods, turning the boss into an IP. By seizing the opportunity of this kind of brand IP, product IP and personal IP, this brand has become the first in Tmall, JD.com and Douyin in the sub-category of handicrafts.
Here I would like to share with you a little formula for explosive products worth millions, called the CCPP rule of explosive product strategy. Everyone who works in marketing knows the 4Ps (channel, promotion, price, product). In this era, relying on the traditional 4Ps can only achieve a small victory, but it is difficult to make a big splash. If you want to be a big hit, you still need to rely on the explosive product strategy CCPP. The CCPP rules are divided into four parts. The first is the category war to seize the trend of market development; the second is the pain point user war to seize the key pain points of users; the third is the screaming product war, which must have strong differentiation. products; the fourth is to explode marketing wars, which are quickly detonated through the Internet. It can be summarized as: big hit product = big pain point × screaming product × explosive marketing.
Finally, I would like to give you eight words: explosive strategy, decisive battle in the wind. If an enterprise wants to make big breakthroughs and develop, it will not work if it only has a hot spot but no hot products, and it will not work if it has a hot product but cannot seize the hot spot. Therefore, the eight words "explosive product strategy, decisive battle in the wind" are the core underlying logic of the explosive product strategy. It is hoped that enterprises in the ceramic tile industry can not only create explosive products through the explosive product strategy discussed today, but also use explosive products to compete in the market and become explosive brands.
