Today's consumers' demand for both low prices and high quality is forcing the emergence of a new industrial economic model, and enterprises are the most direct bearers. Only with a truly "low price" capability model can an enterprise participate in the next round of industrial economy, or even the wave of social and economic development.
Author | Pi Ye
Produced | Industrialist
The cost is less than 1/10 of the previous one, and the turnover can reach up to 2.3 times that of the past. This is a report card handed over by Lenovo's virtual "store manager".
JD Yunyanxi is a digital human specially customized for Lenovo. While having intelligent interactive attributes, it can also achieve 24-hour non-stop broadcasting, and the effect of bringing goods is obvious.
This model is becoming a microcosm of this year's 618 promotion. "This year we will adopt the method of alternate live broadcasting by digital people and real people to conduct live broadcasts. On the one hand, we will reduce our marketing costs, and on the other hand, we will make full use of the long tail time of live broadcasts." A marketing director of a new consumer company in Shandong told the industry Home.
The changes don't stop there. According to incomplete statistics, in the sales mode of the e-commerce industry this year, more than 50% of the companies will try more innovative marketing methods, such as digital human live streaming, AIGC graphics, short video generation, etc.
And this year's 618 is becoming a mirror of this change. With the advent of the "low price" wave, more and more digital and intelligent marketing methods that reduce costs and increase efficiency are emerging in e-commerce and all aspects of the industry, moistening things silently and fundamentally transforming the upstream and downstream.
This transformation starts with the consumer, and is transmitted to each brand in the industry chain through various links in the supply chain, such as production, manufacturing, distribution, and the front-end marketing closest to the consumer, and finally catalyzes a benign and sustained low price. The new consumption closed loop at the price.
And through JD.com, the main site of 618, we can more clearly perceive that this new torrent of brand marketing is rolling in.
1. Behind the low price, the unformed "new balance"
The starting point of change is on the consumer side.
At the end of May this year, Southern Metropolis Daily launched an online shopping consumption poll, and based on the survey, issued a "2023 618 New Consumer Trend Insight Report". In the report, a question about "what factors have the greatest impact on 618 shopping decisions" has attracted market attention, and among the many sample answers, except for the most sensitive price, the next answer is "quality".
This change from the demand side corresponds to a new balance of supply and demand. That is to say, for enterprises, if they want to continue to maintain market growth, they must pay more attention to quality while ensuring low prices.
In other words, enterprises must have the ability to "really low prices".
This is not an easy task. First of all, in terms of product cost, although China is a big manufacturing country, the industry's profit margin has always been extremely low. A data released by the National Bureau of Statistics in July last year showed that the total number of domestic industrial enterprises with a certain scale The profit margin is only 6.47%. In terms of different industries, bamboo, wood, palm, rattan, grass and wood processing, the profit margin in June is only 3.24%, and the agricultural and sideline food is only 3.09%.
In other words, in terms of cost, although the front-end transformation of the manufacturing industry chain has been accompanied by retail, live broadcasting and other forms in the past two years, resulting in more front-end exports of products, purely from the perspective of product cost and industrial chain participation, It still does not increase the profit margin of the product, which means that there is no room for large compression on the supply side.
In addition, marketing activities (price subsidies), as the original means of "curve price reduction" for enterprises, are now also changing. An obvious trend is that with the increase of consumption and promotion nodes throughout the year, the investment of brand marketing expenses is more scattered, and the marketing expenses of a single node are often less than before. With this less and less marketing budget, the brand It is even more difficult to achieve or even exceed the previous marketing effect and performance goals.
There is no way to reduce the hard cost of products, and the brand marketing potential energy curve is declining. Where is the breaking point of the enterprise?
From an objective point of view, some companies have already made many attempts. As mentioned above, with the rise of live broadcasts, more and more companies have begun to use live broadcasts to bring goods and expand sales channels.
But such a model is also difficult for most brands. That is to say, for most brands, although they clearly know that e-commerce live broadcasting is the key to breaking the situation, the current lack of high-quality live broadcasting and live broadcasting team resources on the market often corresponds to high investment costs.
"In the past, at the node of the big promotion, the merchants increased the live broadcast budget by more than 50%. Just looking at the product profit, it can almost double." A person in the live broadcast industry said, "But this year, the price of traffic and high-quality anchors is getting more and more expensive . , It also needs to spend money to attract fans, brush traffic and brush advertisements, etc., all of which require additional costs.”
For brands, how can they add "quality" and "low price" well, and have the ability to truly low price? In other words, how should we take the new road of brand marketing?
2. See new answers on JD Cloud
Over the past few years, the competition for low prices has been a constant topic, especially during the holiday season. However, the "low price" in the past often corresponds to the shrinking of the merchant's own profits, and the discount on the quality of the product. That is, such low prices are unsustainable and harm the bilateral consumer market.
In other words, on the opposite side of today's real "low price" consumer demand side, the supply side must have a benign and long-term ability to "satisfy low prices". This ability must not only operate during festivals, but also in normal times.
To achieve both price and quality, JD.com has a natural advantage. One end is connected to the consumer Internet, covering more than 580 million consumers in China; the other end is connected to the industrial Internet, supporting more than 50 million SKUs, hundreds of thousands of brand merchants and manufacturing companies, and major industrial belts in China. As an escort, JD Cloud naturally has this kind of technical confidence.
Moving the timeline forward, in March this year, JD Cloud launched a digital intelligence marketing platform for enterprises based on DaaS capabilities - JD Cloud Uplus, which aims at brand growth. Based on the different scenarios covered by JD Cloud Uplus, including interactive marketing, global operations, intelligent services, and technologies and products that support these scenarios, such as digital human and AIGC content marketing, JD Cloud has become a normal weapon for JD Cloud to empower brand marketing.
Take Lenovo's "virtual" store manager at the beginning of the article as an example. Under the condition of extremely low cost, its hourly turnover accounts for 45% of the real turnover. The personalized design brings different problems to many consumers. , Enhanced Lenovo's live broadcast stickiness.
Today, this virtual anchor created by the Jingdong Yunyanxi team has appeared in more and more corporate live broadcasts. For example, in the Guotaijiu live broadcast room, since the launch of Yanxi’s virtual anchor “Jia Yao”, its transaction conversion rate is 1.93 times that of real people, and the average daily GMV has increased by 7.5 times compared with real people.
It is understood that one month after cooperating with the virtual anchor of JD Yunyanxi, China TV directly canceled the live broadcast, repurchased the simulation person for the multi-platform official store, and planned to create a "one store, one Internet celebrity" brand for its dealer stores story.
The same scenario happens not only in large enterprises, but also in small and medium-sized enterprises.
Take Delta, which produces industrial protective equipment, as an example. In the past live broadcasts, because industrial products were not a popular live broadcast category, and the brand did not have professional live broadcast and operation personnel, the number of viewers and GMV in its live broadcast room were not as expected.
The change took place in January of this year. With the assistance of JD Cloud, based on the cartoon character anchored by JD Yanxi Digital Human, Delta rejuvenated the live broadcast room from scratch, and quickly created an exclusive live broadcast style by customizing the scene layout of the live broadcast room. Create exclusive introduction lines for products. In addition, it is equipped with a complete knowledge base, which can not only meet the daily chat and pre-sale consultation of stores, but also provide consumers with in-sale and after-sale services, and keep regular updates on configuration content.
Statistics show that since its launch 4 months ago, Yanxi's virtual anchor has brought a 99-fold increase in the turnover of Delta's live broadcast room, and the transaction conversion rate has reached 11%, which is 31 times that of real people.
The digital live broadcast is only a microcosm of the brand's unique marketing model on JD.com. In addition to digital people, the JD content marketing platform based on AIGC technology is also becoming a major choice for brand content.
Taking Guyu Toys as an example, based on JD’s content marketing platform’s graphic and video delivery strategy, it has successfully opened up new markets for its products and increased its monthly transaction volume by 20% at a cost 15% lower than the original cost; There is Huami, that is, JD.com’s content marketing platform has completed the overall content marketing operation for Huami. Through the model endorsed by experts, the selling point of the product has been further planted in the psychology of consumers. The monthly transaction volume is 4.8 million, and the single product has been successfully sold. .
It can be understood that based on AIGC capabilities, brands can obtain their own brand marketing solutions through the JD content marketing platform, and realize efficient creation and omni-channel distribution of marketing content that adapts to all scenarios. These creatively generated content can be better . The selling point and value of its own products can be accurately conveyed, and then detonated in Jingdong's e-commerce field at a lower cost.
Equally eye-catching is JD Yunyanxi’s intelligent customer service, a powerful customer service system that serves more than 580 million JD users and hundreds of thousands of third-party merchants on JD. Now it is also providing companies with more cost-effective marketing capabilities.
An example is that with the help of JD Yunyanxi’s AI outbound calls, Yili has emotionally connected with more than 200,000 users through the voices of its star idols. It sold 60,000 bottles of new products on the same day, recalled 80,000+ users, and achieved an overall ROI of 4 more than double the improvement.
Whether it is Lenovo, Guotai Liquor, Yili, or Greebo, Delta, they are not alone. In the JD.com 618 position that just started this year, more and more companies have the ability to truly participate in the "low-price" battlefield through the digital marketing capabilities provided by JD.com - smarter marketing, lower costs, stronger Sales conversion funnel.
According to the data, JD 618 got off to a good start in 28 hours, and JD Yunyanxi’s intelligent customer service volume exceeded 71.95 million consultations, accumulatively serving more than 220,000 JD’s third-party merchants, ensuring a high-quality user experience; Nearly 400%, bringing low threshold and high conversion to the brand live broadcast room at the same time.
Different from the previous generalized marketing, this kind of digital intelligence marketing capability based on JD Cloud Uplus builds lower-level marketing values and capabilities for brand merchants, and uses technologies such as digital human, AIGC content marketing, and intelligent customer service Products, helping it have the ability and confidence to have "long-term low prices", and become a qualified participant in the new low price balance.
Today, this change is happening across hundreds of millions of brand and consumer interactions.
3. Low-price "positive cycle" in technology
If this 618 is a mirror of digital marketing changes, then JD Cloud can be regarded as the carrier of this mirror. Through its blessing and support, the tide of "low price" is clearer and clearer.
In fact, the same trend of digital marketing is also flowing in invisible places.
For example, the Panasonic health pot, which has become a hot item in JD.com this year, is precisely produced based on JD Cloud’s C2M reverse customization. Based on JD.com’s big data, it promotes the flexible flow and production of the supply chain; The marketing center built by an airline company is based on precise digital marketing. The airline company has integrated the large-scale membership accounts in the past, and realized brand marketing from one to thousands of people.
Similarly, JD Cloud takes the industrial park as the starting point, based on JD.com’s deep accumulation in the supply chain field for many years, has built an industrial collaboration platform to build an efficient industrial chain collaboration model that radiates industrial belts, and is promoting industrial upgrading.
In addition to these e-commerce transactions, these are all forming the long-term "low-price capability model" provided by JD.com for brands.
"The marketing environment is undergoing revolutionary changes." A person in the marketing industry told the industry at the beginning of this year. His judgment is that with the change of people's consumption key and consumption willingness, enterprises need stronger and more high-quality "impressing consumption". "capabilities.
True. It can be said that today's consumers' demand for both low prices and high quality is forcing the emergence of a new industrial economic model, and enterprises are the most direct bearers. In other words, only with a truly "low price" capability model can an enterprise participate in the next round of industrial economy, or even the wave of social and economic development. Among them, technology is the best means.
Through the many marketing profiles of JD.com 618, what can be more clearly perceived is the cost-effective technical marketing capability model obtained by the company based on JD Cloud. It is the underlying JD Cloud industry large-scale model capability, supply chain capability, and basic digital infrastructure, such as JD Cloud’s software-hardware integrated virtualization engine Jinggang 2.0, hybrid multi-cloud operating system Yunjian, and the self-developed new generation of distributed storage system Yunhai, etc. .
The low-threshold and high-transformation digital intelligence marketing capabilities provided by JD Cloud for brands are also derived from years of experience in complex scenarios. These capabilities, from bottom-level cloud computing to intermediate product solutions, and then to upper-level specific scenario applications, have been honed through JD’s internal and many external industry vertical scenarios, and finally constituted the confidence of JD Cloud to support the long-term brand’s “low-price model” .
Time goes back to the end of last year. On the occasion of the 20th anniversary, JD.com re-released the slogan of "more, faster, better and more economical" to the outside world. More voices and interpretations of this in the market are returning to low prices.
But in fact, through this year’s 618, what can be seen behind this voice is not only JD.com’s own pursuit of low prices, but also its promotion of the “low price” model of brand merchants based on its marketing capabilities, as well as its support for the industry. The determination to promote a virtuous circle of "low prices" under the economy.
A new round of industrial economic reform is quietly taking place.