As skin care ingredients attract more and more attention, Han Shu King Kong Mask is loved by consumers for its multiple anti-sugar ingredients and all-round formula. It has been a hot seller in Li Jiaqi’s live broadcast room many times, and the product repurchase rate is as high as 35%; under the trend of smart retail, Yiyezi Mini Program has earned tens of millions of GMV in just half a year since its launch; and Red Little Elephant, which has accurately understood the changes in demand in the maternal and infant market, has steadily ranked first on Tmall’s maternal and infant products since 2019. Cosmetics category TOP1.

These fast-growing brands are all from Shangmei Group. In the "2020 China's New Consumer Business Power" selection sponsored by CBNData, Shangmei Group won the "Annual Product Power" award.

In this issue, among countless young people, we interviewed Liu Ming, Vice President of Shangmei Group. Liu Ming once pointed out in his speech that marketing power, product power, data-driven power, and brand influence are the four key points for brands to maintain cutting-edge growth in the traffic era. This interview also focuses on these four driving forces.

Liu Ming, Vice President of Shangmei Group

The following is the transcript of the interview:

CBNData: What specific elements do you think “product power” includes? How does Shangmei build its own “product strength”?

Liu Ming: Ingredients, efficacy, quality, and appearance are the “four major elements” of current product strength. In the new consumer industry, I believe that only by building up our own product capabilities can we truly absorb traffic. To build product strength, I think the main points are as follows:

First, scientific research is the cornerstone, the supply chain is the moat, and we must deeply cultivate innovation in the technical field.

Shangmei continues to invest hundreds of millions of dollars every year. We have established dual scientific research centers and dual supply chains in the Global Harbor in the center of Shanghai and the "Medical Silicon Valley" in Kobe, Japan. Some people may be curious, why, as a local brand, does Summit choose a location in Japan for R&D? The answer is simple, because Japan has the most picky consumers and the strictest product quality control in the world.

The picture shows the Scientific Research Center in Kobe, Japan

Second, conduct in-depth research on users, reversely customize products, and create products that users have a sense of memory and are willing to spread independently.

In terms of building product strength, I think the "touch point" that can directly affect consumers is very important. This touch point may be reflected in the product's ingredients, packaging, or customized design, etc. .

The young "post-wave" group born in the 1990s and 1995s, who grew up in the Internet generation, are becoming our core consumer group. They have diverse ideas, are more curious, and pay attention to the efficacy, appearance, and social attributes of products. , which also directly accelerated our transformation to the C-side in terms of user insights, to deeply explore the pain points and needs of users, and combine big data to feed back the customization of the entire product, and ultimately form a strong user base through the use of innovative products and social media marketing. grip.

Third, conduct in-depth research on the market, understand market changes and the development of competing products, and respond quickly.

The current beauty and maternal and infant market landscape is changing rapidly, and product homogeneity is serious. If brands want to improve their "immunity", they must adapt to the variability of the market environment, respond quickly, plan in advance, and put every product into consideration. A product researched to the extreme. When Red Little Elephant reviewed the best-selling product "Children's Shampoo and Shower Gel", it found that girls' hair is more susceptible to pollution and damage, causing dryness, knotting, and yellowing. However, there is a lack of shampoo specifically for girls in the market. To this end, the Shangmei R&D team quickly created an amino acid girls' shampoo, which was very popular in the market. Double Eleven sales increased by 141% compared to the same period last year as the core product.

The picture shows the red elephant girls’ shampoo and conditioner

CBNData: You once summarized in your speech that “hot product opportunities = new traffic of hot product categories through technology/supply chain innovation”. How should we understand this formula?

Liu Ming: Regarding technology supply chain innovation, in addition to creating dual scientific research centers and dual supply chains, we also actively deploy the soft power of talents. We have a team of hundreds of scientific research experts, many of which are from Procter & Gamble and other scientists. Japanese chemical giant company.

The picture shows the laboratory of the R&D Center of Shanghai Global Port Headquarters

Regarding the hot-selling category, I believe that the birth of hot-selling products is not accidental. In addition to continuous innovation in technology and supply chain, To invest, we must also seize the two key points of user insights and category trend insights. For example, we developed Han Shu King Kong Mask because through big data analysis we found that users have strong pain points in terms of firming, anti-aging, and hydration. Judging from the market capacity and growth trend of facial masks, facial masks are growing. A strong opportunity category. From January to October 2020, Tmall’s transaction volume reached 209 million, accounting for 34%, a year-on-year increase of 193%. Therefore, the popular King Kong Mask was born.

Regarding new traffic, we insist on the unity of product and effect, insist on the parallelism of depth and breadth, and use the three-dimensional combination boxing model of new marketing - large media placement + global content planting + information flow placement + live broadcast + private domain, forming a "content web" with multiple forms, multiple dimensions, and multiple touchpoints to communicate with Generation Z in any field where you may encounter them and occupy their minds.

Under this year’s consumer trends, facial care sets, facial masks, lotions/toners are opportunity categories. Facial mask set, a combination of formal wear + sample, does not harm the brand's price control, but also allows consumers to gain more "value"; after a long period of "market education", consumers use facial masks more frequently, even every day Wearing facial masks has become a normal thing, and the functions of facial masks have also been extended from simple skin care to after-sun first aid, pre-makeup moisturizing, medical beauty repair, etc. The use scenarios are more diverse; compared with "milk" or "cream", lotion is It is an irreplaceable category and is consumed quickly, making it easy to repurchase.

CBNData: For Shangmei, which has a history of 18 years, how to seize innovation opportunities in the marketing field to obtain new growth? Compared with cutting-edge brands, what are the marketing advantages of traditional brands?

Liu Ming: In this special year, faced with the dual impact of the epidemic and traffic, we have also actively adjusted our pace, switched strategies, and seized innovation opportunities in the marketing field to achieve growth.

First, adhere to the integration of product and effect, use new traffic marketing, and adhere to the three-dimensional combination output of "large media placement + global content planting + information flow placement + live broadcast + private domain".

The picture shows Shangmei outdoor advertising

Second, pay attention to the input-output ratio. At the beginning of the launch, systematically plan how to open up the global marketing link, leverage resources, and unite Platforms, e-commerce, and live broadcasts are all about creating content and making sales happen. I prefer to consider issues from the overall perspective of company operations and maximize resource utilization. This is what I set higher for myself and the team. Require.

Third, we focus on the research on traffic based on the brand’s premium capabilities. This year we have successively launched a large number of information streams in private domains, live broadcasts, and Douyin, and studied traffic conversion. In February this year, we went to the United States The group has ranked TOP3 in the beauty category in Douyin. Through the ability of brand premium and the improvement of ROI through research, we can achieve better and longer-term harvest in the traffic business.

Compared with cutting-edge brands, I think the advantage of traditional brands in marketing lies in brand barriers. New marketing based on a certain degree of awareness and reputation is easier to achieve high conversion and achieve "point-to-face integration" ", the entire network is closed. Emerging brands may be able to use traffic to explode in a short period of time, but to obtain a longer life cycle, they need longer-term investment and transform from traffic thinking to brand thinking.

CBNData: What do you think of live streaming e-commerce? Nowadays, live streaming e-commerce has become more entertainment-oriented and variety show-oriented. What do you think is the core driving factor for live streaming to bring goods?

Liu Ming: For users, live e-commerce is the most direct, efficient and affordable shopping method at the moment. For brands, live streaming can quickly bring traffic, drive sales, and empower the creation of explosive products. Consumers are keen on live shopping because it meets their needs for product knowledge, high discounts, entertainment shopping experience, quality assurance and price control.

The picture shows Zhang Xincheng airborne into the live broadcast room in Sydney to bring a leaf of gold mask

In the live broadcast segment, the performance of Shanmei Group is as follows: First, it started to get involved in live broadcast earlier, especially this year In March and April, we seized the opportunity for live broadcasting and became the first beauty company to start live broadcasting on Douyin and Kuaishou platforms. Our live broadcast share once ranked first in the beauty industry; secondly, we deeply tied head anchors to expand Year-round cooperation, only Li Jiaqi’s sales of Han Shu King Kong Mask during Double 11 exceeded 28 million; thirdly, we built a super live broadcast matrix, deployed high-quality talents inside and outside Taobao, wide coverage of stars, and carried out cross-border co-branding with well-known IPs to provide super Top anchors reversely customize popular products.

However, in the era of traffic and live broadcast e-commerce, a comprehensive layout is required, and calmness and in-depth thinking are required. I hope everyone will actively consider the following issues and avoid various pitfalls of live broadcast——

1. What is the proportion of daily sales from live broadcast and on-site sales? We need to analyze the sales ratio on the Tmall site. If your daily sales are not increasing and live broadcasting accounts for a particularly large proportion, you must be very cautious. The business may not be healthy anymore.

2. Allow for hunger. Frequent live broadcast promotions may be beneficial in the short term, but they won’t sell in the long term. Live broadcasting requires strategies and tactics. You cannot harm the brand for the sake of live broadcasting. You must learn to make certain trade-offs.

CBNData: The "2020 China Internet Consumption Ecosystem Big Data Report" shows that the epidemic has promoted enterprises' layout of new digital infrastructure.

May I ask what stage Shangmei's digital layout is currently at, and what new plans will it have in 2021?

Liu Ming: This year, we first raised digitalization to the corporate strategic level, and secondly launched the data middle platform, officially entering the digital 3.0 era. The data middle platform can help the business end make decisions more efficiently. Link users more frequently, help companies continue to obtain traffic, and achieve long-term sustainable growth of the brand. How to do this specifically?

First of all, in the user insight phase, we use data to label each user with different labels such as region, behavior, preferences, etc., and study the user’s purchasing habits, search habits, media habits, etc.;

p>

Then, integrate marketing resources from the dimensions of social media, dramas, variety shows, and outdoor CBD large screens, and coordinate with the rhythm of brand promotion, the rhythm of creating hot products, the rhythm of platform promotion, etc., from point to surface to users Use a combination of massive exposure and content to reach users and convert them into purchasing behavior;

After users complete a transaction, we will also follow up on the service experience in real time and track their usage, secondary purchases, and social interactions Planting behavior, autonomous communication, etc.

The new plan for 2021 can be summarized as follows: 1. Establish more tentacles for collecting data; 2. Improve the platform for data management; 3. Improve the quality of data analysis; 4. Sort out the process of data application ; 5. Popularize science and establish a company-wide culture that values ??data.

CBNData: As Generation Z gradually becomes the main consumer force, youth-oriented distribution has also become an important proposition for many brands. Can you briefly talk about how Shangmei carries out its brand rejuvenation layout?

Liu Ming: First of all, to rejuvenate a brand, we need to understand users, have insight into user needs, and make products that young people like. The obvious characteristics of today's younger users are appearance control, ingredient-oriented, efficacy-oriented, ritual-oriented, and pursuit of personalization. The characteristics are obvious but at the same time diverse and complex. Therefore, when doing brand positioning, Shangmei Group will switch its thinking and think from the user's perspective. Ruyiye brand is positioned as a plant-based technology skin care brand, and its slogan is ‘One leaf, fresh and more effective’. The support points of product development are implemented around user needs, such as teaming up with global botanists to select natural plants and using one-leaf molecular motor technology. At the same time, one more step of experience makes the effect more obvious;

Chapter 1 Second, brand rejuvenation must start from the heart and establish emotional links with young people. The content must be able to establish an emotional resonance with users and occupy their minds, and it must conduct marketing with warmth, depth, and precision at every touch point in users’ lives;

Third, to rejuvenate the brand, we must use marketing methods that young people like to play with young people. Wherever young people are, we will go. For example, when Yizhiye was doing youth marketing, there was a classic case of sending Zhang Xincheng to a live broadcast room in Sydney. In the end, the first live broadcast achieved tens of millions of sales in Sydney Live. From signing spokespersons to launching " "Snow Pear Stewed with Rock Sugar", and to create content in the drama, we opened up the content field + e-commerce mall, opened up the star + head anchor, we finally realized the full-link marketing method, and then Achieved the integration of 'quality, effect and sales'.

In 2020, Shangmei Group has bet on many major dramas

CBNData: How do you feel about the changes in consumer demand for beauty and personal care? What kind of consumer trends do you predict in the future?

Liu Ming: In terms of brand selection, international brands still dominate, but domestic products are increasingly on the rise. Users are not only superstitious about big international brands, but are also willing to pay for cost-effective domestic products, which will lead to the birth of more cutting-edge brands.

In terms of categories, anti-aging products are becoming more and more popular among young users; users are paying more and more attention to skin care after medical art, so the growth trend of beauty instruments and light medical beauty-related products continues to increase; Consumer demand for subdivided categories is also growing, such as oral beauty solutions, oral anti-sugar pills, etc.

CBNData: From your early days as a news anchor and host, to your participation in Internet entrepreneurship in 2015, to your founding of the maternal and infant brand Piaopiao Feathers with Zhang Ziyi in 2017, to now joining the Summit Group, why? Is there such a career transition and choice?

Liu Ming: In every career, I will do things with an entrepreneurial mentality instead of a worker mentality. I will consider problems from the perspective of a boss or an operator. At the same time, I can make key choices at important nodes. I have my own selection methodology: first, when making key choices, you must have insights into the trends of the times and market trends, and invest yourself in industries with upward trends; second, more importantly, you must step out of comfort District, choose the one that is more imaginative, difficult but more correct, choose the one that has a greater chance of making a qualitative change in your life, instead of choosing the easier, safer, simpler thing for the sake of comfort.