bid farewell to the "fragment price"
"The price reduction cannot keep up with the price increase speed."
On the evening of November 10, Wang Fang went around in various live broadcast rooms and did not place an order in the end.
She had a long time ago, and she fell in love with a Guliang Jiji Taobao. On Double 11 this time, when she entered the payment interface from the discount link in the live broadcast room, she found that the price after the discount was more than 400 yuan. "Isn't this the price I saw in the first two months? Where did the discount come from?" Wang Fang was a little helpless.
also has obvious price increase. Yongpu Coffee, which she regards as the "food ration" for work. 618 When placing an order, you can buy 3 large boxes (7 pieces per box) of coffee liquid for 108 yuan. On the eve of Double 11, this price has risen to 169 yuan, up nearly 1/3. Even in the Viya live broadcast room, the price after receiving the coupon is around 130 yuan.
Yongpu Coffee's price comparison of Double 11 and 618 this year. Photo source/respondent
beauty and skin care is the same. In addition to the fact that big brands continue to maintain their value by increasing gifts, a series of domestic brands no longer use "fragmented prices", and some products even have small-scale price increases before the shopping festival begins. Even in the live broadcast rooms of Weiya and Li Jiaqi and , which have the most say in the brand, products with a price less than 50% off are quite rare. The reasons for the price increase of
are complicated: soaring raw material prices and factory power restrictions are all serious real challenges; secondly, many new brands also hope to use Double 11 to promote new products, increase brand price anchorage, and no longer attract consumers' attention through price wars and drink poison to quench thirst. A senior cosmetics OEM factory head pointed out that "after Double 11, the entire cosmetics industry will usher in a price increase wave." He expects that in Q4, cosmetics prices will continue to rise and hit highs.
But at the moment, they still need to play the life and death game that has already started. Even though they gritted their teeth and prepared sufficient ammunition for Double 11 - even the last carnival - many brands still did not see the ideal reward.
"As soon as Double 11 is over, we must raise the price and can't hold on." A snack brand sighed to the 20 Society.
When price increases become common
Many users have found that this time, new consumer brands in various fields have not come up with strategies to break through the bottom price in previous years, and even price increases in disguise.
In fact, many brands have already started planning to increase prices after the mid-year 618 promotion. Sandunban, Yongpu and Chali in the beverage category all have price increases to varying extents. Wang Bobao's formal wear products that make cereals have also increased prices compared to before, and the brand has also re-promoted "small packaging" to reduce the average price.
So, after the first wave of final payments of Double 11 was completed, many people on various social platforms were complaining, "Many of the products I originally wanted to stock up were more expensive than before, so I paid a deposit and was lonely."
, but more new consumer brands still adopted a relatively smarter and more tortuous price increase method.
In the live broadcast rooms of big brands such as Weiya and Li Jiaqi, underwear brands Ubras, inside and outside, did not produce items with a unit price of less than 100 yuan. The discount is not much different from daily life, and it is basically the same as the self-casting price of flagship stores.
"This year, many new brands have come out. If you want to ensure your status and take the high-end route, you cannot price it too low." A new underwear brand practitioner said that his brand has also made a large number of live broadcast rooms, and many products are priced at 50-100 yuan. Although
has not been reduced in price, Ubras has launched new products such as muscle base clothes and big red suitcases this fall and winter, and has found Liu Wen endorsement products to increase the overall brand and then increase the price. The above-mentioned person said that the same heating base shirt was sold at around 70 yuan after discount on the live broadcast room of the brand, while the price of Ubras's base shirt was 145 yuan. "The performance difference is not big, but Ubras relies on creating a new concept to sell better."
and Perfect Diary launched a new lipstick "Blade Wing Small Heel" during Double 11, with daily sales price of 99.9 yuan. Previously, the price of skin thinness and priced by Zhouxun was 89.9 yuan.After this price increase, on October 30, Perfect Diary gave a discount link in Li Jiaqi's live broadcast room - two can receive a 40 yuan coupon, and two old velvet lip glosses are also given, which is equivalent to a 20% discount.
Perfect Diary New Product Lipstick Picture source/Perfect Diary official website Weibo
Perfect Diary’s strategy is obvious - for the price increase of new products, add a number of out-of-season products to clean up inventory. After the superposition, the discount is very strong, and new products have been indirectly promoted.
launches new products in fact, it is actually a common way to adjust prices, because if some consumer brands offer discounts for a long time, it will be difficult for users to accept higher prices. Through new products, the direct effect of increasing the overall brand price is to improve the overall gross profit structure of the brand.
From a longer-term perspective, although it sounds a bit ridiculous, price increase can indeed successfully help improve the brand's tone in some situations.
For example, Bosideng . Since 2018, as brands such as Canada Goose have led to the market for high-end down jacket consumption, Bosideng has also begun to launch new fashionable models year by year, steadily increasing prices.
Bosideng windbreaker down jackets are all priced above 3,000 yuan. Image source/official website
price increase has brought more high-income users to Bosideng. During this year's Double 11, Bosideng's "wind coat down jacket" flooded the screen, and the price of 3,599 yuan did not block the girls who chased the charm and did not want to get frozen. In the Tmall flagship store, the sales volume of this down jacket has been 1,000+.
The most-selling items in the whole market include down vests worth more than 300 yuan, and couple down jackets worth nearly 2,000 yuan.
However, Wang Fang, an ordinary white-collar worker, still chose to place an order for coffee from other brands after complaining on various social platforms. "Yongpu is no longer a coffee I can afford. I hope that other niche brands with good taste will not raise prices."
Supply chain pressure has increased sharply
On October 1st, when each platform locks the price for the Double 11 cycle, the new consumer brand Xue Lingfei was the first to announce the price adjustment notice.
Xuelingfei price adjustment notice Photo source/Xuelingfei official website
Comparing the price before and after, several main products of Xuelingfei - soothing oil-controlled cleaning mask - increased from 49.9 yuan to 59 yuan, and nicotinamide fragrance shower gel from 39.9 yuan to 49.9 yuan, up 18% and 25% respectively.
"Double 11 has no special discounts. The daily price of Douyin and Kuaishou stores has been very low, and there is no room for price reduction." An insider of Xue Lingfei said that he mentioned that the price increase has been brewing for a long time, but the pressure of power limit pressure and raw materials to increase the price of prices is too great, so he has to make a quick decision. "Raw materials have risen by 60%, and our OEM factory is under too much pressure."
Since the beginning of this year, skin care raw materials have experienced two price increases, once at the beginning of the year and once after the 618 Shopping Festival.
price increase involves the main reasons for washing and skin care and care of silicone , ethylene glycol , CAB, glycerol and other cleaning and care. The reason behind this is that imports and exports caused by the epidemic are blocked, and there are a lack of laborers in the place of origin or a strike.
Some cosmetic raw materials growth in the past three months Photo source/Shenzhenshe
Perchoa has quietly raised prices, among which the price of ruby light pattern tightening essence has increased by hundreds of yuan; Shanghai Jahwa has also raised prices to different extents of its skin care products such as Herba , Yuze , Diancui. According to the operating data of Marumei Co., Ltd. in the first quarter of 2021, the average selling price of its skin care products increased by 35.41% year-on-year, showing a significant price increase.
One The operator of the Marumi OEM factory said that the raw materials are now priced at one day, and sometimes the manufacturer directly "closes the plate". During the entire Double 11 period, the factory was on standby, but within the specified time, the output still could not reach 1/2 of the required output. "In Guangzhou, there are internationally-branded OEM factories looking for raw materials around the world, but after finding a suitable manufacturer, the agent will directly increase the price on the spot by 3 times."
The clothing industry is not having a good time.During Double 11, many popular women's clothing stores on Taobao have launched the pre-sale 14-day-30 mode. "On the one hand, many factories in Jiangsu, Zhejiang and Shanghai are limiting power, and on the other hand, the price of raw materials has risen relatively high. The original profit margin may be only 10 points, and the price of raw materials has risen by 5 points. In the end, they will be reflected in the price." A head of an MCN agency said.
Bai XiaoT CEO Zhang Yong also mentioned in a recent interview that clothing brands are stocking up on a large scale. Before Double 11, Bai Xiaotie prepared 100,000 large items in the warehouse, and the fabric factory prepared 3 million items. Despite the current rise in raw materials, they still need to continue stocking every month and ensure that their partner factories have a production line that has been in operation.
Also, due to the price increase of raw materials, a certain snack brand has to change its strategy. Among them, there are the main products, because the price of raw materials has been increased by more than 30%, and the price increase of packaging materials has also been greatly increased, so the price increase must be arranged. "The boss said at a meeting before that the price will not increase within three years, but now he can't hold on." An insider said.
Finally, more brands have temporarily adjusted the discount intensity.
New consumption revaluation Double 11
As early as November 1, the first wave of final payment was completed, and many e-commerce people realized that Double 11 was over.
"The first wave will digest the largest sales volume, which also means that the overall magnitude is very average." Deng Yangfeng, head of an MCN organization, said. He believes that for brands, after November 1, the remaining time of Double 11 has basically no investment value. Even if they continue to invest in a lot of costs, they may receive about 20% sales growth, which is no different from the usual investment, and many brands will even experience negative growth.
Many e-commerce practitioners mentioned that Double 11 did not offer a low price of "breakdown bottom price". Another reason is that daily broadcasts and major anchors have become the norm for regular broadcasts. In order to attract traffic to official accounts and increase sales in the live broadcast room of big anchors, the lowest price that the brand can afford has been given before Double 11.
"In the past, there were several major promotions similar to Double 11 every year, which would give a set of promotion mechanisms and prices, which would also impact sales and set high goals; now every month's monthly report and even weekly report have to impact a sales target, and we must take out the discounted prices in daily life." Deng Yangfeng believes.
Deng Yangfeng is currently the operation director of Kuaishou's top anchor Super Dan team, and has signed contracts with nearly 10 anchors. In his opinion, Kuaishou and Douyin are normalizing "promotion" activities. Now he plans a "Fan Festival" for his anchors every 1-2 months. The operation of the Fan Festival is exactly the same as the Double 11 promotion - pre-promotion, private domain users are activated, negotiate the lowest price with the brand, and invest marketing expenses in buying volume, increasing fans and increasing sales.
On November 2, an ordinary live broadcast day during the Double 11 cycle, 9 of the top 10 Douyin sales list were occupied by brand store broadcasts. On the 116th Super Product Day launched during Kuaishou Double 11, the selected brands such as Dorado Shang and Han Xizhen , etc., have achieved a daily GMV of over 100 million on Kuaishou.
But for them, daily promotions and investment are not a loss. On the contrary, because Douyin and Kuaishou's e-commerce growth, bonus is still there, it can achieve more obvious sales and fan growth.
As the traffic of old e-commerce has reached its peak, many brands have established live broadcast teams of Douyin and Kuaishou this year, trying to break out of their inherent thinking and actively look for the second growth curve.
However, for many new consumer brands, time waits for no one.
online industry market brand data detection party "Magic Mirror Market Intelligence" data shows that Wang Baobao, who won 5.324 million yuan in the first round of pre-sales of Tmall Double 11 in 2020, fell by nearly 70% during the same period this year, only 1.429 million yuan. Ramen, which ranked among the top 10 in the first round of pre-sales of "convenient fast food/frozen products" category, said that sales were close to halfway compared with last year. The pre-sale of
is not good, and some brands are even suspected of using the "fleece" marketing tactic.On November 5, many users found that through the superposition of various coupons on the platform, they could buy 6 bags of Wangbaobao Nut Oatmeal at a price close to 1/3 of the original price. "It's quite provocative", Wang Bobao's official Weibo post then posted on Weibo, implying that he was fetched and encouraged users to place orders, and received tens of thousands of forwardings. Hundreds of "fetched" posts were launched on Xiaohongshu .
Although the official said that this was a technical failure, nearly 1.5 million packages of products were taken away by the wool party in one day, and the brand lost about 8.55 million. However, the product was not removed from the shelves in time but was replaced with pre-sale. Therefore, many industry insiders believe that this is just a promotional method, not a technical bug.
After Wang Baobao claimed to be "fleece", he posted the sales report of being fleece on Double Eleven on the same day. Image source/official Weibo
. However, whether intentional or not, at least Wang Baobao still regained the treatment of the former internet celebrity this time.
(Wang Fang in the article is a pseudonym at the request of the interviewee.)
