Over 50 Innovative Brands! Private Domain Becoming Brand Standard
- Chaileedo Press
- May 9, 2022
- 3 min read
Tencent smart retail and Sephora (China) innovative brand booster "Private Domain Fresh Force" were launched. In 2021, the DAU of mini-programs exceeded 450 million and the beauty mini-program GMV of its cooperation achieved 100% growth. The necessity of laying out private domains has become the consensus of the industry, dismantling the "four-force growth model" proposed by Tencent smart retail and mastering the "code of grasping customs".
On May 6, Beijing time, the Tencent smart retail innovative brand booster "Private Domain Renaissance", a business of Chinese Internet giant Tencent, was officially launched, and the first phase of the first phase joined hands with LVMH's high-end beauty retailer Sephora (China) to jointly help the development of the innovative brand private domain format. The event was attended by more than 50 beauty, daily chemical and 3C brands such as usmile and SOBER BEAUTY.
In 2021, the DAU of mini-programs exceeded 450 million. According to the statistics of Tencent smart retail, the GMV of the beauty mini-program it cooperates with has achieved 100% growth in 2021. The private domain is the independent operation position of the brand's online and offline integration. Retail enterprises reach sales on mini-programs and do not have to blindly rely on the platform to distribute traffic because they have traffic.
In the private domain environment, customer stickiness is enhanced and the sense of trust in the brand is continuously consolidated, which will bring about an increase in the unit price multiple of customers. Moreover, the private domain also breaks the previous restrictions of single-point customer repurchase. Through the sharing mechanism, the repurchase can be constantly divided, from a person to the surrounding relatives and friends, bringing 10 times or even a hundred times the value.
The necessity of laying out private domains has become the consensus of the industry and deeply cultivating "private domains" will still be a mandatory question for retail enterprises.
So, how do businesses/brands accumulate private domain resources? How can you make performance grow rapidly? Tencent smart retail answered this question with the "four-force growth model", that is, product power, commodity power, operation power and organizational power.
The "product power" of beauty includes aspects such as users shopping in the private domain, the page layout they see and the experience of enjoying services. If there is no sense of beauty or appearing a frozen payment page, customers are easy to lose. Therefore, the user interface and user experience are worth continuously improving by beauty brands.
The "commodity power" of beauty. First of all, it depends on the SKU of the brand product. Whether all the SKUs are placed on the Mini Program, if the SKU is not complete, consumers will feel awful. Secondly, it depends on the price of goods. Many Chinese e-commerce platforms like to offer sales promotions, if the price of Mini Program goods is much higher than on other platforms, then consumers will not pay for them. Finally, it depends on the product promotion. There are many other platforms of publicity that will claim "global debut" and "limited discount/sale" to accumulate private domain traffic for the brand's own Mini Program and also make consumers feel that the Mini Program is not worse than other platforms.
The "operational power" of beauty is the ability of the company/brand operation team to obtain traffic and convert traffic, including BA, live streaming, operation, advertising, etc. Brands should cater to the psychology of consumers as well as the market popularity to launch different promotions and advertising to maintain a closer relationship between consumers and brands. In addition, brands need to pay close attention to the frontier and think about how to connect with technology and their own business.
The "organizational power" of beauty refers to the ability of the brand/company team to organize work. The brand has various teams and each team needs to cooperate with the other, but in the process of cooperation, there will inevitably be controversy. At this time, it is necessary to determine a project leader, who can be responsible for the project and play a leadership role, so that the cooperation between the teams is more efficient and more in tune. High-end beauty Dior has shown strong organizational strength and in cooperation with Tencent smart retail, not only China but also global executives are involved.
It is reported that the "new force of private domain" plan lasts until mid-August, Tencent smart retail will provide innovative brands with WeChat private domain ecosystem operation guidance and provide the traction of technical operation resources. In addition, Unilever will also provide systematic training resources for new brands participating in the private sector. In addition, innovative brands will also have the opportunity to sell and test products in Tencent Huiju and Sephora's (China) WeChat Mini Program channel.
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