Market is getting more and more competitive. Thereby, the cost of building a new brand is getting higher and higher. Strategy on promoting a new brand has switched from traditional channels such as TV, radio, outdoor billboard ... etc to digital, more specifically social media.
Creating a new brand is never an easy job but with technology, it could actually be quicker than you might have expected. There are not uncommon we see some new brands or milk tea chain which go viral in the last couple of years. It's because of the power of social media!
Case Study - A successful local brand in China from 0 to 100
A new beauty brand founded in 2017, in only 8 months, its sales has grown 50X. They have not only beaten some existing local brands, but also quickly overtaken some international giant such as YSL and SKII. In 2018, its GMV has exceeded 650 million RMB.
Since 2017 July, its Tmall shop was launched, its sales was not growing much. However, since 2018 Feb, it has decided to focus on a product oriented social media platform, XiaoHongShu. It kept creating a lot of seeding contents in the space. Since then, its sales was growing rapidly.
From the stat shown below, Perfect Diary always increases the effort during March-April and August-September. From e-commerce perspectively in China, it obviously wants to take the opportunity of some special dates e.g. 618, 1111.
March 2019, its number of posts has exceeded 4,500 a month!
Perfect Diary did not just rely on celebrity or spokesperson. Instead, they allocate a lot of resources on mid tier KOLs. The allocation of different KOL tiers is shown above
Celebrity : Tier 1 : Tier 2 : Tier 3 : KOC = 1 : 3 : 46 : 100 : 150
Tier 1 KOL: 李佳琦
Tier 2 KOL: Followers > 500,000
Tier 3 KOL: Followers > 50,000
KOC (Key Opinion Customer): Followers > 5,000
China Social Media
As there are way too many social media platforms in China, we focus on trending and newer ones as they are less competitive and appeared to be more cost effective
XHS is so-called Little Red Book focuses on product and experience sharing, more specifically, overseas items. MAU has just reached over 800 million. It's good for product seeding and one of the few social media in China that runs content e-commerce strategy.
China Social Media
Social media in China is the most fragmented and dynamic amongst the world. Not only good quality content is required, KOLs can also find ways to monetise their content and influencing power, so-called KOL as a sales!