Certificate of Origin In 2022, the industries of small household appliances, clothing, food and health, and color pupil will still break through against the trend, and some brands will grow by up to 900%

In the past two years, due to the epidemic situation, the slowdown of macroeconomic growth and the downturn of the general environment, consumer investment has entered a weak period, and the overall consumption market has not risen as high as before.

However, according to the survey conducted by the First New Voice, there are four major sub-sectors that have achieved adverse growth in 2022, namely small household appliances, clothing, food health, and color pupil. For example, in the kitchen household appliance market, the total retail sales will be 5.08 billion yuan in the period of November 11, 2022; Air-conditioners and refrigerators also saved a wave of sales through the "Double 11" price reduction and discount boom; In 2022, the retail sales of water purification equipment increased by 72% year-on-year.

So, how about the domestic consumer market in 2022? Which sectors and enterprises have achieved countertrend growth? What digital solutions and tools have been adopted behind the growth? How to break through challenges and achieve new growth in the future? To this end, the first new voice interviewed many corporate executives and investors, and deeply analyzed the adverse growth and digital layout of the consumer retail market in 2022.

01 In 2022, the four major sectors will grow against the trend

In 2022, consumption was at a historical low, which was true whether compared with the data of the previous year or from a longer period of time.

Zou Jingxian, associate professor of the National Development and Strategy Research Institute of Renmin University of China, once explained that the growth rate of consumption in 2022 will roughly show a "V-shaped" curve of first falling and then rising. Although the growth rate of consumption has picked up since the second quarter, the basis for the recovery is not very solid, and the weakness of consumption has also led to a decline in its contribution to the economy and its driving role.

According to the website of the National Bureau of Statistics, from January to November 2022, the total retail sales of consumer goods reached 39919 billion yuan, down 0.1% year on year. Among them, the retail sales of consumer goods other than automobiles were 35849 billion yuan, down 0.2%. In addition, in November, the total retail sales of consumer goods reached 3861.5 billion yuan, down 5.9% year on year. Among them, the retail sales of consumer goods other than automobiles were 3482.8 billion yuan, down 6.1%.

Although the consumer market as a whole is in a downward trend, according to the survey results of the First Xinsheng, there are still sub-sectors that have achieved adverse growth, and even brand growth of up to 900%, mainly four sub-sectors.

First, the small home appliance industry. According to interviews and public data, China's small home appliance industry will grow by 16.27% year-on-year in 2022. Among them, the category of water purifiers has achieved growth and will still be in a blue ocean in the future, because the mentality and cognition of consumer durables users are in the process of continuous establishment and improvement, and the market potential is large.

"During the Double 11 period in 2022, Angel Group's omni channel platform sales increased by 75% year on year, ranking top 2 in the category of water purification on Tmall and Tiktok dual platforms, setting a new sales record," said Wu Jian, general manager of Angel Digital.

Guo Renjie, deputy general manager of Chase Technology China, also agrees with this view: "The intelligent cleaning industry has grown against the trend all year round, and some categories have grown rapidly. According to AVC According to the calculation data, the scale of the floor washer industry will reach 10.5 billion in 2022, with a year-on-year increase of 81%. During the "Double 11" period, the omni-channel sales of Chase Technology reached 1.1 billion, with a year-on-year growth of more than 600%, and achieved the omni-channel "Grand Slam". Tmall platform, seeking to rank among the top 3 in the household appliance industry, with sales growth of more than 600% year on year; Tiktok platform, Chasing ranked the top of the household appliance brands, with a year-on-year growth of more than 1200%. "

"The small household appliance industry has also grown rapidly overseas, such as Russia, Southeast Asia and other emerging developing countries. The Yingqu shaver promoted by Xiaoqiao Technology has achieved sustained growth in Tiktok, Pinduoduo, Jingdong and other platforms during the Double 11 in 2022." Pan Zhongjian, founder and CEO of Xiaoqiao Technology, said.

The second is the clothing industry. According to the statistics of the National Bureau of Statistics, the retail sales of clothing goods of wholesale and retail trade enterprises above the designated size reached 20.182 billion yuan in 2022, an increase of 18.3% over the same period last year. Among them, the sales momentum of winter clothing is particularly strong. Affected by the fierce changes in winter temperature in 2022, the sales of winter clothing increased by 30.50% over the same period of the previous year, with an increase of 19.60% compared with 2022. The sales of knitted underwear and trousers increased 18.90% and 9.80% year on year, up 13.40 and 8.70 percentage points year on year respectively.

For example, Suji Liangpin and Bai Xiaot both said that the sales growth rate of Double 11 in 2022 would exceed 30% in an interview with the first new voice.

The third is the food health industry. At present, the number of users in the food health industry has exceeded 300 million on the Tiktok platform, and the annual growth rate of new users has exceeded 51%.

Bai Hua, the head of the food health industry of Tiktok E-commerce, once introduced at the summit that in 2022, the food related trailer short videos will get more than 1 billion views on average every day, and at the same time, the user payment orders of the food health industry will increase by 126% year on year. Among them, the GMV of the nourishing track increased by 185%, the GMV of the milk drink mixing track increased by 169%, and the GMV of the fresh track increased by 161%.

"Food is still the track of continuous growth in 2022. As the concept of health continues to be hot, many brands focusing on a specific segment have been born. For example, our invested enterprise light truck fast food brand 'Shaffitt' will grow by 30% on the Double 11 in 2022, and nearly 60% of the active users of Tiktok e-commerce in the past year have purchased food health related products." said Wu Shihong, partner of Meihua Venture Capital.

The fourth is the color pupil industry. According to the data of Tmall Online, the color pupil lens will account for nearly 70% of the total contact lens consumption market in 2022, and still maintain a vigorous growth trend year by year. Kerala, Tmall Health and China Business Data Center (CBNData) jointly released the "Insight Report on the Consumption Trend of Chinese Color Eyes Cosmetics", which showed that the reason behind the growth of the color pupil industry was that nearly 66% of young people said that compared with other facial makeup before the epidemic, they began to pay more attention to eye makeup, and nearly 80% of young people took eye makeup as a step of makeup. The re-purchase rate of color pupil is as high as 30~40%, and color pupil becomes a necessary item for "grass mask makeup".

Blanqi, the public relations director of Kela Caitong, said: "In 2022, the online part of the color pupil industry will grow by about 10% compared with 2021. Since 2015, Kelila color pupil has kept growing for seven consecutive years, with annual sales exceeding 800 million yuan in 2021. In 2022, it will achieve GMV of nearly 1 billion yuan at a growth rate four times higher than that of the industry. During the Double 11 Festival this year, Kelila color pupil also has a very impressive data performance on Pinduoduo and Tiktok platforms, with sales increasing by more than 900% year on year and a big increase of 137% month on month compared with 618 this year, The sales of three categories of color contact lenses, transparent contact lenses and nursing solutions all ranked first in the segment industry. The peak value of single store continued to increase, and the brand UV exceeded that of the same industry. "

02 Two major challenges

Whether the industry is growing or declining, consumer brands have always faced many challenges in production and operation. First Xinsheng collated data and found in interviews, which are mainly reflected in two aspects.

First, in the era of traffic anxiety, how does the value precipitate into the brand?

First of all, from the product level, we should make the product value far greater than the value paid by users.

"In the past years, we have witnessed the online celebrity brands in various industries. The fireworks effect is very brilliant by means of gimmicks, throwing money, burning traffic, and even hiring some water soldiers and out-of-the-box advertising. But now it has basically disappeared. The core is that it has no products, its product power is 0, and its product price is not high. For brands, the core is that the products bring the same value as the user's purchase value and the product's value. Compare and exchange, users from In my heart or in fact, I feel that I am worth something, or even more than I am worth. " Wu Jian said that Angel Group has always kept in mind that the main line is to maximize the value of online and offline omni-channel operation externally, and the main line is to implement efficient parallel cooperation internally. According to the front, middle and back office, build the whole Angel digital architecture and system. Maximize product value.

Secondly, from the brand level, we should really maximize the potential energy of the brand.

"At present, our external trend is to help the whole industry to do some exploration, including the binding with the beauty industry, which can maximize the value of color pupil for the beauty users," said Braun Qi, the public relations director of Kela Color pupil

Finally, at the management channel level, we should make the flow as accurate as possible and achieve long-term operation.

"This is a systematic project. After designing and developing products that meet the needs of consumers, it is also necessary to efficiently find consumers with corresponding needs on social media and advertising channels. We found through the survey of relevant categories of consumers, for example, when consumers buy a sweeping robot, they need to see the product more than 23 times on average. A unit price of 3000+is an important consumption decision for consumer families, and this kind of consumer The functions, technologies and parameters of products with scientific and technological attributes are relatively complex. How can he be transformed into a member or retain customers through our service system when he first saw it or learned it several times before but hasn't bought it yet? How can he achieve transformation through more touch in the future, and finally become our consumer? It needs a series of actions. " Guo Renjie said.

Wu Shihong also said: "We divide marketing and channel into the same level, and the important order should be placed after the brand and product. For example, when the brand or product has certain problems, no matter how much energy, material resources, financial resources and resources are invested in marketing, the return obtained is still limited, and its ceiling is low. Products are the foundation of the brand, and only good products can have good marketing, and the value of marketing can be maximized. Only good products can be put into use The consumer sentiment will be crowdfunding, not barriers, if they get better repurchase. We will divide it into a pyramid model. The bottom is the product, the middle is the channel, and the top is the brand. A brand without a foundation is easy to flash in the pan. Channels are channels, and precise channels can continuously fertilize and water the brand and increase the value of the brand. Only when the marketing and marketing are in place can the top brand stand firm. "

Second, in terms of marketing service system, including department setting, online and offline, there are fragmentation, data islands and other phenomena, which seriously hinder the development of business process integration, and also greatly discount the digital empowerment. Fragmentation is generally reflected in processes and systems, including data breakpoints, process breakpoints and some small data misleading. Some are at the system level, but more still exist at the process and mode organization level.

"The above situation should be solved in two ways, one is from top to bottom, the other is from bottom to top." Wu Jian explained: "From the top down, the decision-making level has become aware that the focus of the report is no longer on the online and offline, but on different platforms and different contacts, evolving from many concepts to the omni-channel integrated marketing. From the bottom up, it is to feed back the facts through data, but to force the business department to make financial changes and make a correct decision."

Wu Shihong also said: "Now there are many data platforms that can help consumer products see the background data of various e-commerce platforms and help marketing decisions. The operation of a brand involves not only marketing, the control of the overall enterprise background data, supply chain, contract delivery, and the coordination of all links, but also the key data of the user experience, such as the user complaint processing cycle, the dynamic control of order volume, and the coordination of the components of the founding team itself There is a great correlation. We believe that digitalization should be gradually applied from front-end marketing to the collaboration of the whole enterprise, and be more efficient. "

Li Yadong, CIO of Multisample House, once said when participating in the first new sound activity: "Data islands must exist objectively. Our goal is not to solve the problem of data islands, because it does not generate any commercial value. The value potential of data is huge, and we should keep our attention. Compared with the past, data has very big changes, one is the amount of data, the other is the granularity of data. The granularity of data in the future will affect every aspect of our life, including the dimension of time you flow through and the dimension of geography There are many dimensions interwoven together. "

In addition, in terms of marketing, the first new voice has investigated nearly 100 consumer brands and digital service providers and found that 55% of consumer brands' budgets in 2022 will be lower than that of the previous year, 33% of enterprises' budgets will increase, and 12% of enterprises will have no significant changes.

03 Three trends of digitalization

Enterprise competition is becoming increasingly fierce, and the cost remains high, which restricts the development efficiency of enterprises. It is the consensus of all consumer brands to seek new growth points. So how to grow?

In the future, we need to transform and empower through digital transformation to open a new space for the growth of domestic demand, with the following three core points.

The first is to focus on consumers and achieve more accurate and personalized consumer portraits, so that consumers can purchase more and more.

Consumer experience is one of the core reasons for the growth of consumer goods this year. Consumers have obtained more additional services and reference basis than traditional offline shopping methods.

"Many brands and enterprises choose to start from the consumer side, sink consumers into private domain traffic through scanning code, receiving red packets, joining members and other marketing forms, and enable online and offline channel marketing through refined operation and consumer analysis and insight. Good product and brand accumulation is the moat of long-term brands, good word-of-mouth marketing and user experience is a long-term strategy, and the growth of new users brought about by the renewal of old users and the launch of new users are It is very important to grasp both hands, and both hands should be hard, so as to facilitate the digital growth of enterprises. " Wu Shihong said.

In addition, Branqi also put forward his view: "First of all, in addition to exploring a more sustainable path according to category thinking, it is also necessary to improve the level of re-purchase and unit price per customer of the entire user. It is necessary to find more powerful reasons for the user to buy, and there will be greater growth. Secondly, digitalization is an important aspect to support the new consumer brand to meet the media environment and user needs. For example, Kela pupil has the attributes of beauty and quick-selling. In the digital aspect The demand is very strong. Because it has some fashionable factors, it needs to do some insightful and forward-looking work to help the brand adjust its product development and marketing strategies through data and consumer feedback. Previously, we need to go through third-party research, so the data is relatively late, but now after the application of relevant CEM, BI and other systems, the feedback to users is very real-time, which can maximize the efficiency of the entire company. "

The second is to get through the online and offline contacts and create the integration of omni-channel marketing.

"Driven by the upgrading of new technologies such as big data, the Internet of Things and AI, as well as the upgrading of the circulation industry and the upgrading of consumption, the retail industry is gradually developing towards the new retail direction of omni-channel intelligence, and presents the development trend of omni-channel product service supply chain, omni-channel supply chain ecosystem, as well as the integration of production intelligence and production and marketing. Under this development trend, based on the dimension of contour manufacturers, build omni-channel supply chain and integrate new models, It can realize the integration of omni-channel logistics resources, retail terminal procurement strategy, data resource marketing strategy and customer demand, and thus promote the integrated operation of omni-channel supply chain. " Wu Shihong said.

First Xinsheng's report shows that channel digitalization is a "fortress" that has not been completely conquered. Due to the diversity and complexity of online and offline marketing contacts, the brand side's control over the channel is weak, which is particularly evident in online and offline channels. At the same time, due to the internal management problems of large brand companies, the departments of different channels are fighting against each other, which makes the all-channel connection more complex. Although some large brands have gradually achieved data connectivity in some channels or regions, there is still a distance from the integration of all channels.

The third is to realize the integration and coordination of research, production, supply and marketing, and achieve the enterprise's 100% production-for-sale model.

"At present, many enterprises are not yet 100% production-oriented. How to make all the products developed take the market as the guide, the user as the guide, and the demand as the guide, instead of taking their own experience and the model of building cars behind closed doors as the guide. Especially when the supply and marketing of research and production has not been completed, not only the whole Double 11 will be affected, but the whole business system of Angel will be in a higher level. So in order to cope In this case, one of the core digital transformation projects of Angel Group in 2022 is to implement the IPD2.0 transformation in the product field, so as to realize the "three modernizations and one new" of the overall digital R&D system, namely, the standardization of product requirements, the simplification of process configuration, the clarification of process rights and responsibilities, and the new technology transformation process. " Wu Jian said.

"In addition to the research and development field, Angel's digital construction covers the integrated supply chain field, intelligent manufacturing and digital marketing services and other process nodes; all data is precipitated to the data center, with the data center as the core, which not only realizes the data closed-loop, but also realizes the process closed-loop." Wu Jian said that in order to break the current situation of traditional enterprises' diversified, heterogeneous and fragmented systems in the past, it is necessary to build an integrated portal, Make the system into a business center, a data center, and a double-center driven model to build a fast and changeable front desk, a fast response center, and a stable and solid back office, and create an integrated collaboration of research, production, supply and marketing and a digital transformation with data-driven as the core.

In response to the above challenges and trends, enterprises need to find their own development paths and growth strategies. Wu Shihong proposed four major paths:

First, new users and new channels. The brand needs to achieve growth through the success of product, market, development and penetration. The brand will focus on ROI, transaction conversion efficiency/conversion rate of first purchase and other indicators to shape the content image and implant a new category into the user's mind.

Second, old users and new channels. The brand needs to grow through the intensive penetration of users and pay attention to the construction of repurchase channels.

Third, old users and channels. The brand needs to achieve growth by rapidly expanding the market scale. Brand extension and expansion of market scale become the key, and the whole channel resources are encircled.

Fourth, old users, new users and old channels. The brand needs to achieve its growth goal by achieving rapid market coverage, display new content through old channels, and occupy the minds of users in the Z era. It needs to upgrade and refine the content to produce highlights that can attract young users.

With regard to the digitalization of the consumer and retail industry, First Xinsheng once found that a number of excellent service providers in China have emerged. The entry points are mainly three aspects. First, from the business level, focus on MarTech, supply chain digitalization, store digitalization, etc; Second, from the functional level, focus on the digitization of human resources, finance and taxation, etc; The third is the technology or process layer, such as RPA, low code/no code, etc.

So, how do consumer brands use digitalization to grow? How will it be implemented and planned in the future?

"At the digital level, we will further subdivide, respond to the needs, and can be more accurately met, and can be more smooth in the whole use. We will also continue some of our competitive advantages, and further strengthen in the positive aspects. We will do some disassembly around the marketing objectives. We will increase the digital budget in the next 1-3 years." Branzi said, "In terms of marketing, we do differentiated content marketing on different media, and use the attributes of beauty and fashion to do a good job of the full-link digital marketing model of planting and weeding grass. We have used many MarTech tools, such as CRM, SCRM, aggregate chat software, ERP system, etc."

Guo Renjie said: "Pursuit has defined itself as a broad robot company for a long time, and will unswervingly explore in the field of intelligent manufacturing, in the 'heart' (high-speed digital motor) and 'brain' (AI algorithm) of robots On this basis, it will continue to reserve advantages and extend to robot ecology. We hope to create robots that can represent the future, with a view to liberating your hands and time, and improving social productivity and productivity. In 2023, Pursuit will also launch new robot products, such as industrial-grade bionic quadruped robots, which are mainly used in security, patrol, rescue, survey, mapping and other scenarios. "

"In the future, Angel's three key directions are: first, in products, Angel has been committed to technology leadership; second, in manufacturing, lean and intelligent manufacturing to achieve end-to-end digital upgrading of integrated supply chain; third, in the gradual realization of digital marketing in ToC and ToB fields." In Wu Jian's view, first, digitalization is not a simple replication of any successful experience, even in the same industry, it is impossible to replicate successfully, from product form Due to different operation modes, enterprise strategies and cultures, simple replication and transplantation will inevitably fail. Secondly, digitalization is not a new stove. Now some CIOs, especially new ones, like to shelve the current company's ideas and rebuild a set of digital processes according to their own ideas. This is not very desirable. It is difficult to control the costs and benefits of the entire company, and will form a separation from the original system and data. Finally, digitalization is definitely not done behind closed doors. The start of any digitalization should start with four things: business maturity, system maturity, process maturity and data maturity evaluation, and the planning of the entire enterprise strategy to digitalization strategy. It is suitable for the implementation of the corporate culture strategy and scenario by decomposing priorities into different strategic stages in 3-5 years and implementing them one by one.

"If a new consumer brand wants to run out, it cannot have shortcomings. It should take into account supply chain, products, organization, services and other aspects. The iterative process of the product is very similar to that of the domestic shaver industry. From the traditional pure black shaver to today's iteration, it has become a more fashionable, multi-color, different shape shaver. And the crowd of shavers is also iterating. In the process of passing through the cycle, every consumer product company needs to continue to learn Learn and expand cognition and boundaries. Xiaoqiao Technology will continue to increase its position and build high-quality content in the future. Of course, we dare to try and invest, but at the same time, we can face some results that are not ideal at present. This is Xiao Qiao's "Long-term Doctrine". " Pan Zhongjian, founder of Xiaoqiao Technology, said.

Wu Shihong will continue to be optimistic about the consumer industry and choose a consumer brand with self-hematopoietic capacity and high moat. Its view is: "The purpose of digitalization is to improve the overall efficiency and productivity, so as to match the overall growth and development plan of the enterprise. And the founder always pays attention to digitalization as the primary strategy. For example, Tmall's business counselor, JD's business intelligence, and Tiktok's flying melon are all data platforms commonly used by e-commerce practitioners. With digital technology and other means, dynamic data as reference, they will better help consumer brands Business and intelligent decision-making. "

The digital transformation of the consumer industry is the trend of the times. Although the overall trend of the market this year tends to decline, there are still some brands growing against the trend in each segment of the track. Consumption is still the focus of attention. The pressure remains, the recovery is coming, and next year will usher in the dawn.