On October 31, Yixian E-commerce officially submitted a prospectus to the US Securities and Exchange Commission, and Yixian E-commerce is the parent company of Perfect Diary. The launch plan of
Perfect Diary is undoubtedly a landmark event for domestic beauty cosmetics and has attracted widespread attention in the industry. According to the prospectus, Perfect Diary is not only the number one online cosmetics brand in China, but also has 23.5 million private domain traffic (DTC consumers).
It is worth mentioning that Perfect Diary disclosed that it has cooperated with 15,000 KOLs. If calculated according to the 4-year time period, more than 10 KOLs will be placed almost every day. It can be seen that the rise of Perfect Diary has seized the online channel dividend, and online operation models such as Perfect Diary are also called DTC business models abroad.
The hindsight of the perfect diary
If we look at it the other way round, the actions of the perfect diary in the past two years and recent days are also intriguing.
From the perspective of the big business strategy, even though Perfect Diary won the first place in online domestic beauty products, it has also begun to build and cover offline channels. We can see that offline perfect diary stores have gradually appeared in major shopping malls, and offline stores are more like an experience store, placing a variety of co-branded products, and the image and online parity feel a little better gap.
As of the end of September, Yixian e-commerce (including Perfect Diary, Xiao Aoting, Wanzi Xinxuan and other brands) has opened more than 200 offline experience stores in more than 90 cities. At the same time, according to the information disclosure in this prospectus, within twelve months from the announcement, Yixian E-commerce plans to invest 300 million yuan in offline experience store expansion and joint venture construction of factories.
Perfect Diary Concept Store, the picture comes from the network
. From the specific action point of view, Perfect Diary abnormally uses big-name celebrities. On October 19, the official of Perfect Diary announced Zhou Xun as its first global spokesperson. This is also the first brand spokesperson since the establishment of Perfect Diary.
After Zhou Xun was unable to endorse, Perfect Diary announced that internationally renowned singer-songwriter Troye Sivan (nicknamed Piao Ye) was the brand ambassador.
The official announcements of the two heavy celebrity spokespersons naturally continue to ferment in social networks, and even cause a lot of controversy. Since the establishment of Perfect Diary, the spokespersons only endorse specific product lines, not the brand image of Perfect Diary. At the same time, Perfect Diary’s past spokespersons have mostly chosen traffic stars and young idol routes, such as lip makeup spokesperson Zhu Zhengting, color spokesperson Luo Yunxi, Brand friend Zhang Yuxi, Yudan ambassador Xu Jiaqi, etc.
builds offline experience stores, endorsements by Zhou Xun and Piaoye, and the various actions of Perfect Diary mean that the company's brand strategy is being adjusted. In other words, Perfect Diary is now transforming from a traffic-based company to a brand-based company. This scene of
is actually very familiar in the history of e-commerce brand development. Brand building is an indispensable link for any company from small to large to increase its gross profit premium. If brand building is ignored, the brand is likely to fall at a speed visible to the naked eye.
As early as the early stage of Taobao e-commerce development, the market had a lot of smashing "Tao brands" due to traffic dividends, such as OSA, Inman, Fangcaoji, Handu Yishe, Sipodika, Xinnongge, etc. , Are young brands that have grown up with the rise of the Tmall platform, and have achieved a leading position in the sub-categories. Z1z
Amoy brand excerpts, the picture comes from the network
, but later as Tmall’s traffic dividends faded, and offline well-known brands were vigorously introduced, brands such as Uniqlo and H&M began to emerge on Tmall, and these savagely grown Amoy brands also collectively Sinking, only a few brands continue to maintain.
In fact, for traffic dividends, we have two points to be clear:
is the first, we cannot rely solely on traffic dividends to build brand value;
brand value is the mental position of the product in the perception of public users, which requires integrated marketing. Realization cannot be realized by the traffic of a certain platform alone. Generally speaking, more traffic dividends mean a reduction in the cost of conversion with goods, which is included in the so-called "performance advertising" framework for consideration.
Second, the platform’s traffic dividend cannot last for a long time;
’s traffic dividend has a time windowIf the perfect diary is born in the current communication environment, its development is likely to be much slower, because today’s WeChat private domain traffic and the marketing game of Xiaohongshu’s grass-growing goods are already well known by the public, which means ROI It has returned to average. Unless traffic depressions are found again, it is difficult to say what unique marketing advantages are. The industry's previous evaluation of Perfect Diary is "very good at marketing."
Each platform will have a traffic bonus period when building its business logic at the initial stage. Taobao was also the same when Taobao was born in the early years. However, with the addition of competitors, the blue ocean will soon become a red ocean and the traffic bonus will gradually disappear. Under the trend of consumption upgrades, now (and for a considerable period of time in the future) there will be an explosion of new consumer brands in various sub-sectors, and the rise of Chinese local brands has become an obvious trend. In this context, the shaping of brand value is indispensable and even more important. From a macro perspective, brand building is not only the key to increasing premiums, but also the only way that Chinese brands need to go through to truly enter the global market.
So, when do companies need to invest in brand building? The answer to
is that since the birth of a company, brand building is a long-term investment, but it can also bring excess operating returns. We have been in "It's all in 2020, why do people say it is difficult to make a brand?" "It is pointed out in the article: For any company that wants to develop in the long term, the most important thing is to do things with "compound interest." Amoy brand companies continue to perform, and there are very few Amoy brand companies that can maintain today. Compared with performance marketing to understand the urgent need, brand marketing investment is more like a long-term "compound interest" behavior. Enterprises should invest part of the budget in the present (performance marketing) and part of the budget in the future (brand marketing) , Even for small and medium-sized enterprises with tight budgets, it is necessary to invest in brand marketing. The transformation of
Perfect Diary has been enough to express the importance of brand building to the outside world. Perfect Diary is neither the first company to realize the branding problem, nor will it be the last.
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