why is alimama’s site-wide promotion the highlight of this year’s double 11?
2024-09-28
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from the perspective of the macro environment, the recovery trend of consumption is still continuing, especially online consumption. for example, the latest data from the national bureau of statistics shows that from january to august, online retail sales of physical goods increased by 8.1%, 4.7 percentage points faster than the total retail sales of consumer goods. alibaba’s latest financial report shows that the number of 88vip members increased from 35 million in the previous quarter to 42 million in this quarter, and the number of members surged by 7 million.
observing the surrounding groups who often consume on e-commerce platforms, we can find that this consumer group is not so much unwilling to consume, but rather has higher requirements for "good products at good prices" and has a new measurement system for the value of goods. it can also be said to be a "disenchantment" consumption of some premium factors. the significance of tmall double 11 to consumers has also changed: first, it has become the best carrier for users to absorb their consumption emotions; second, it has become a window for users to measure the value of consumption.
against this background trend, taotian’s business strategy for this year’s double 11 no longer focuses on price alone, but on good products. alimama, which has just launched full-scale promotion, has changed the weighting mechanism for product search and promotion. , creating a new way for merchants to sell good products. we can get a glimpse of this from the "site-wide effect breakthrough live broadcast" released by alimama's "double 11 product effect breakout camp".
1 double 11 returns with good products, only then can we seize the incremental dividends from the crowd
the dual changes in the meaning of tmall double 11 to consumers point to a conclusion: only by returning to good products can merchants seize the incremental dividends from the crowd.
on double 11, whether it is high-end luxury brands or mass consumer goods, they are experiencing similar market tests - whether the product has quality-price ratio, whether the service experience is appropriate and meticulous, and whether the brand value can withstand scrutiny.
so the question is, what exactly is a good product?
we found that in many cases, the good products defined by the merchants themselves may not match the good products calculated by the platform algorithm. at this time, the difficulty of cracking a product will escalate.
really good products need to be in line with the platform's popular logic and must be transformed into a methodology using data. it needs to meet the data-level characteristics of good price, good material presentation, and good conversion rate. the goods themselves also need to have sufficient market competitiveness, such as high-quality industries with good prices and high quality products.。
manufacturers with strong supply chain capabilities, or brands with design and development capabilities, often have strong product competitiveness, but such companies often face the same problem: lack of online operation capabilities, and they don’t even know their own good products. how to shout, let alone select products that conform to the logic of online communication.
by promoting alibaba’s products across the entire site, the problem of “finding good products” can be solved efficiently. based on big data analysis, the whole-site promotion will intelligently divide the pallets from multiple dimensions such as gmv growth, traffic growth, roi delivery and identify potential hot products. in other words, merchants no longer need to worry about what is the "good" product that best fits the platform user profile. products", site-wide promotion will automatically find the most suitable products for site-wide promotion.
it can be said that the problem of "finding good products" for merchants is solved by the whole site promotion nanny style. the next thing that needs attention is how merchants can reach the corresponding target groups after finding good products and promote the transition from good products to hot products. this still has to start with the weighting mechanism of the goods.
2how does site-wide promotion change the weighting mechanism of product search and promotion?
under the general direction of taobao's return to high-quality goods, whoever's goods have a higher weight can truly achieve cost reduction and efficiency improvement.
generally speaking, the data indicators of e-commerce platforms include: exposure, click-through rate, conversion rate, collection rate, basic sales volume, other store service indicators, etc. merchants want to increase the weight of their products and obtain more during the double 11 promotion period and daily. for traffic, you need to start with these data indicators.
under the trend of low prices across the entire network, for a long period of time, giving profits to consumers and breaking down prices have become the most direct way for merchants to increase the weight of goods. however, this will lead to the continuous dilution of profits for merchants. if they want to pursue quantity, growth is hard.
what needs attention is that this year taobao’s product weighting mechanism has ushered in new changes.
site-wide promotion, as a payment-free linkage product, has brought more product traffic weighting to merchants in this double 11 hot product recruitment plan.。
in other words, through site-wide promotion of products that meet certain conditions, merchants can further leverage the natural traffic in the search and recommendation field and obtain additional weighted benefits of search and recommendation traffic. the weight of the product will be higher than that of the competition.
it can be understood this way: two products with the same search click-through rate & conversion rate, products that participate in the site-wide promotion of the double 11 hot product recruitment plan, will be ranked higher and will improve faster.
specifically, as long as merchants place products with the "traffic boost" logo and choose the roi recommended by the platform, they can get 10%-30% of the traffic boost. if the target product consumption reaches the standard and continues during double 11 you can also enjoy an additional 10% to 20% - 40% boost when you put it in.
with the support of this policy, merchants no longer have to worry about lack of flow of goods, nor do they need to worry about being unable to achieve business growth due to squeezed profits. as long as you follow the platform's tags, you can get stable traffic, which greatly increases the possibility of selling a single product.
3 merchants must grab more volume faster to occupy the market high ground
starting from june 18 this year, various e-commerce platforms have canceled the pre-sale system, which means that the requirements for merchants’ stocking capabilities have increased. however, many merchants only discovered various problems on the operational side when they faced the big promotion, such as not doing a good job in stocking up in the early stage. it is even more difficult to break out without water work and grass planting in place; i did not keep up with the rhythm of the big promotions, and my peers immediately occupied the user's mind...
different types of merchants have different promotion strategies, and big promotions have tight deadlines and heavy tasks. if you want to win the big promotions, you must be the first to enter. whoever can occupy the market high ground first will gain greater advantages.。
from a horizontal perspective, all products can be divided into four growth cycles: cold start, growth, explosion, and flat sales. standard products and non-standard products need to pay attention to different standards of growth cycle.
for example, in standard product industries such as beauty products and major home appliances, after the goods are put on the shelves, the newly launched one-click volume launching capability can be promoted throughout the site to increase the volume volume. if the cumulative gmv of the goods in the past 30 days exceeds 10,000, it is considered a successful cold start. , and then the bidding method can be adjusted to maximize the purchase volume, increasing the purchase volume by 100%, so that the gmv of the single product can be accelerated to rank higher than the top 5% in the category and become a hot item.
non-standard industries such as apparel and sports and outdoor products can also use one-click volume to accelerate cold start. however, when the number of additional purchases of a single product exceeds 100 and the number of transactions exceeds 10, the bidding method needs to be changed to maximize the amount. only by increasing the volume can the gmv of a single product rank in the top 5% of category rankings faster and seize high-quality traffic.
in fact, from the perspective of the entire operational logic of site-wide promotion and delivery, this year’s double 11, taotian further implemented the concept of “user first”. on the one hand, "good goods" have become the basis for traffic aggregation, and merchants must focus their operations closer to product selection; on the other hand, site-wide promotion uses the most direct way to tell merchants where the "good goods" precipitated by data are. where, these "good goods" are also weighted so that they can be seen by consumers, further lowering the operating threshold for merchants.
what can be predicted is that during this year's double 11, taotian will still play the role of releasing user consumption needs, and the opportunity for merchants to explode their business is right in front of them. (source: bullet finance author: li yan)
