Single Product Strategy Enables Small And Medium Entrepreneurs To Gain Maximum Benefits From Limited Resources At The Beginning Of Their Business.

July 19th,

Mr.ing is a brand of men's shoes in Taobao mall.

Not long ago, a single product of the brand sold 7888 pairs in 4 hours.

Yi Zhiqiang, the founder of Mr.ing, was born in 1984. He started his business with electronic commerce. He moved from Fujian to Guangzhou to establish the sheep leather shoes Co., Ltd. and founded the Mr.ing of men's shoes.

Through the study of e-commerce marketing and supply chain, abandoning the long tail theory and adhering to the "28 principles", the company created a 30 million yuan sales volume in 2009 with a single product strategy.

And Yi Zhiqiang's single product strategy is actually explaining the wisdom of how small and medium entrepreneurs can gain maximum benefits from limited resources in the early stage of entrepreneurship.

Yi Zhiqiang initially sold shoes on Taobao, and his business has always been good. The store has already achieved the crown level, but some problems have been troubling him.

For example, because the quality of foreign trade shoes is not stable, they sell goods when they encounter good products, and the general quality goods are smashed in their hands.

In addition, simply doing Taobao C online shopping channels, price competition is fierce, in addition to making money, can not form their own core competitiveness.

Yi Zhiqiang realized that selling foreign trade shoes is not a permanent solution.

In 2008, Yi Zhiqiang came to Guangzhou, founded a new company, and registered a new brand Mr.ing for men's shoes.

The brand was created, and then the trouble began to test Yi Zhiqiang.

Because we are catching up with the financial crisis, we should attract customers at a low price. But when we make the brand, the price has to be higher than the original ones.

For example, when the price of each pair of shoes was between 150~250 yuan, the profit rate was almost the same as that of the original foreign trade shoes priced at 100 yuan.

The original customer group also lost three or four of the total, online shop IP 2000 less, PV less 20 thousand.

The most urgent task is to make the brand of Mr.ing and let the public have intuitive cognition.

It's not easy to let a new brand spread and take root.

In addition to a large number of marketing costs, the entire supply chain needs to support each other.

But the financial crisis also helped Yi Zhiqiang.

When he came to Guangzhou, he found three shoemaking factories to talk about cooperation.

As the three factories are mainly engaged in foreign trade products, the financial crisis has led to a large decline in orders, and is on the verge of collapse.

The order of Mr.ing undoubtedly brought vitality to the factory, and the factory gave Yi Zhiqiang extremely good conditions.

Initially, Yi Zhiqiang's idea was to build Mr.ing into a fast fashion online brand, mimic ZARA, and make more than 200 new models every month.

However, due to the oversize of styles, SKU (inventory unit) has increased sharply, and the pressure on inventory has also increased.

As a result, all kinds of shoes in the warehouse, though only a few pairs or dozens of each pair, have reduced the funds by nearly 1 million yuan.

"Of course, the ultimate goal of brand is to meet the needs of more users, but in the initial practice, the utilization of funds and resources of this multi category strategy is too low, which is not in line with the growth needs of small businesses."

Yi Zhiqiang concluded afterwards.

The essence of the 28 rule is to optimize the supply chain.

Personal experience is very important for consumers to recognize a brand.

Yi Zhiqiang's strategy is single product strategy.

Find a representative single product, use all resources to carry out the main push, create explosive communication effect, and then bring word of mouth and two sales.

Yi Zhiqiang first studied his customer base.

This customer group is mainly young white-collar and college students, there is a gathering effect, it is easy to generate word of mouth.

Next is to choose what kind of single product.

Under normal circumstances, Mr.ing will design products according to market demand, and then put the detail map in the shop to conduct online poll.

According to Yi Zhiqiang's experience, the vote of more than 2000 can be the main push.

Not long ago, 4 hours to complete the 7888 double sales of a single product experienced such a test.

However, in order to achieve the maximum sale of single product, pre test is only an introduction.

After many years of electronic commerce, Yi Zhiqiang knows that the conversion rate of customers is closely related to the copywriting of web pages and the expression of pictures. Good web pages can even increase the conversion rate by several times.

In May 2010, a brand named "Ruan Qingfeng" appeared in the shop of Mr.ing.

Just like the name of shoes, all the pictures and words show the selling points and functions of shoes such as softness, comfort and breathability, and design ten colors to choose from.

Yi Zhiqiang said that these copywriting and photography were basically the wisdom of the group's team, and hundreds of photos were taken.

The means of pmission is low price spike. The time period is between 8 and 12 in the evening. This is the largest time of Taobao traffic.

At the same time, it is the best advertisement of Taobao home page.

Yi Zhiqiang introduced that the price of the 4 hours spike was set at 99 yuan, slightly lower than the cost price, but after the spike period, the price gradually increased with time.

Yi Zhiqiang's logic is that the first customers who participated in the spike were advertised for the shoes and spread word of mouth.

Customers who buy the second time often have already seen the real object. They have a direct understanding of the quality of the product and can accept higher prices.

So after the spike, it still maintained 500 pairs of sales per day.

And the promotion of price can stimulate customers to deal immediately. Secondly, the gross profit margin of the two sale can be raised to balance the cost of the whole single product.

After checking the spike promotion, Mr.ing4 hours to achieve the sale amount of 780 thousand yuan.

At the same time, sales of other shoes are 2500 pairs, 450 thousand yuan.

In total, 10388 pairs of shoes were sold in 4 hours, and the sales volume was 1 million 230 thousand yuan.

In the next few months, the brand named "Ruan Qingfeng" sold and sold nearly 100 thousand pairs of shoes.

Mr.ing brand has gained popularity on the Internet.

A careful analysis of Yi Zhiqiang's communication strategy will find that although the market is triggered by low price spike, in fact, a larger amount of sales is completed in the subsequent price rise.

Yi Zhiqiang said that because of the large quantity of orders, the bulk purchase of raw materials can also reduce the cost to a certain extent.

The sale of single products is basically out of stock, which increases the speed of capital pfer and reduces the financial cost.

Therefore, the biggest advantage of the single product strategy is to reduce the cost of the whole chain of the supply chain, and make the brand with superior products.

Yi Zhiqiang emphasized that this spike actually applied the "28 rule" to the extreme: 20% of the representative products were used to blow up the market, 80% of sales were completed, and the process of brand communication and initial accumulation was also completed.

Single product strategy is a magic weapon for Mr.ing, but the single product strategy is a comprehensive project from communication planning, project design to market promotion, and then to supply chain. Every link is very important.

First, there must be strong suppliers.

Yi Zhiqiang first found three suppliers in Guangdong, all three of them are foreign trade shoes, and the quality is guaranteed.

In this industry chain, the interests of factories can be guaranteed to protect their own interests.

Yi Zhiqiang told reporters that Mr.ing, a supplier in Foshan, accounted for 90% of its production.

In fact, if we look for other factories, the price can be reduced by 3~5 yuan.

But Yi Zhiqiang believes that sacrificing a small amount of interest can establish a long-term and stable relationship.

During the time of a single spike, the factory basically worked overtime and worked hard to match the sales of the shop.

In addition, in the factory, if you open a version, if you can't exceed 300 pairs, the factory will lose money, but Mr.ing will often produce dozens of proofing tests. Only close cooperation can make the factory fully match the sales characteristics of the shop.

With the enhancement of brand strength, Mr.ing has slowly stepped out of its initial stage.

Store collection reached about 200000, 20 thousand independent IP per day.

Under such a large flow base, if the company still sells one or two single products, it will not meet the needs of diversified customers.

So, Yi Zhiqiang said, although the strategy is still using single product, but the style is already increasing.

The single product strategy will cooperate with low price promotion activities every time.

Such activities tend to make orders increase instantly, and the pressure is concentrated on factory production and delivery departments, resulting in delay in orders, which greatly reduces the user's consumption experience.

In addition, too many activities of single products make some old customers always wait for new activities and reduce the frequency of ordinary pactions.

This is not sustainable for brands.

Therefore, Yi Zhiqiang also understands that as the Mr.ing brand is on the right track, the single product strategy must not be the norm for brand promotion.