[Direct Report Network Beijing May 8th] (Li Fenfen) Wu Xiaobo said during the New Year's speech that when the black swan event and the gray rhinoceros incident frequently occur, this must be a very uncertain era. Since last year's Quan Jian incident, the black swan and gray rhino events in the direct selling industry have alternated. “Hundred Days of Action” and media siege have put the entire industry in a frozen period, and industry experts have repeatedly said that the reshuffle period for direct sales has arrived.

 

Although the “Hundred Days Action” has just ended, but in the state of stricter industry regulation, the attitude of most practitioners is uncertain for the future, and this also verifies the era of change that the direct selling industry has experienced. A very dangerous rule for the original practitioner.

 

For this reason, when major changes occur in the external environment, entrepreneurs need more keenness and courage to lead the company to make major adjustments and changes in strategy, break free from the old development model, and embark on a new development. path. At the moment, the most enthusiastic discussion is nothing more than how traditional direct sales and social e-commerce cross-border innovation.

 

A few days ago, we held a high-quality development forum for direct selling companies in Beijing. This topic has also become the focus of many companies. Hu Yuanjiang, executive director of the Direct Selling Professional Committee of China Health Care Association, said: “Ordered innovation is the key to the development of the industry. The future breakthrough of direct selling companies may be based on the development of cross-border competitiveness.” The author, as an industry researcher, pays attention to social electricity. Business has also had in-depth contact, as I have written a "How to stand in the "micro" and "straight" integration of the take-off," using data and comparison methods for direct sales companies to integrate more new business in business planning Ideas.

 

In order to comply with the industry's common focus and adapt to the development of things, today I want to talk to you about the evolution from traditional direct sales to social e-commerce, hoping to learn from the industry colleagues who have been exploring.

 

Add direct selling potential energy to the network

 

The biggest advantage of direct sales is that it saves the high advertising costs and the various channels in the middle. Through the communication between people and people, the products can quickly establish the reputation and achieve the purpose of the transaction. Therefore, the industry has always been proud of "I have someone", which is the flow that everyone often says. However, with the advent of the 5G era, we have become more and more obvious that the industry's ability to gather people is weakening. The era of entrepreneurship in which people are visiting, traveling, listening to lectures, and opening conferences with a row of buses has passed. .

 

Then, let's talk about social e-commerce. If you say social retail, then direct sales must be the originator. The "person-to-person communication" in direct sales must also be a social form, but it is more primitive than today's social retail. Compared with traditional direct sales, social e-commerce has become a new internal application. This "new" is more suitable for modern people's life rhythm and life scene.

 

Why do you say this? In the era of social e-commerce where everyone is the media and everyone can become opinion leaders, more applications of new tools (WeChat, Weibo, short video, live broadcast) will bring together people from different scenes. Together, this is precisely the short board of direct sales. Then, from now on, gathering people by net is a big event that all direct selling companies must face, and it is also the top priority of work planning.

Open the clouds and make the direct selling industry more sunny

 

Today, as consumers become more rational and more diverse, the traditional direct selling industry must make breakthroughs in its business model, product model and mode of communication if it wants to counterattack.

 

Due to the high industry risk, low conversion rate and high cost, too many companies try to attract more people with over-incentive systems and even multi-layer models, which leads to excessive costs being passed on to consumers in another form. On the body, it changed the commercial nature of direct sales to remove intermediate channels and give benefits to consumers. In the past two years, the positioning of direct selling products has not been grounded, not consumed, and not being circulated. The limitation of the six major categories of products in the direct selling industry has also greatly limited the product thinking of enterprises. The mode of communication has also fallen into the embarrassing situation of only turning within the circle and lacking new traffic. The traditional way of direct selling and selling dreams has really made many people tired and unable to play.

 

This year, I participated in several industry conferences on social new retail, and I was amazed at the rise of this circle. Some leaders have asked me how I feel about the current social e-commerce? I lamented that the direct selling industry is now confused and the social e-commerce industry is in full swing, so this time we should unload our direct selling thinking and look at socializing. The deep gameplay and skills of e-commerce.

 

Indeed, social e-commerce today is like a direct sales a decade ago, in a rough growing stage, but they are full of vitality. According to experts, the new retail of social e-commerce has reached 1100 billion yuan in 2018, with monthly active users reaching 170 million. But even then, we still have to see the light and hope of the direct selling industry. Compared with the emerging enthusiasm and circle, the Chinese direct selling industry has developed over 30 years and is now more and more standardized, which has created countless people’s entrepreneurial dreams. A lot of marketing experts. Most of the core teams, including the ones that have just gone public in the US, the birthdays of “One day can make a billion waters”, and the global catchers with a total of tens of billions of dollars, are mostly from the direct selling industry. Therefore, the social e-commerce transformation of direct selling companies is not without foundation. Every direct selling product gathers people, and the conversion of people is the biggest value and breakthrough. Therefore, the author believes that private-sector e-commerce is a way out.

 

In the eight predictions of the New Year's speech, Wu Xiaobo also proposed three major business model innovations in 2019: social circle, private e-commerce, and membership. Social private e-commerce has proven to be a successful business model in 2018, the cost of getting customers is getting higher and higher, and the membership system can guarantee the aggregation of the layers. These three are social interactions with each other. mode. The direct membership system has laid the foundation for this change.

 

The road to breaking the road needs a new "brain"

 

In the evolution path to the development of social e-commerce, it can be found that social e-commerce is different from the traditional value-oriented thinking of people from amaranth to vegetable fields. It is strengthening platform, socialization, socialization and internetization. The top-level design of the selling function, relationship chain transfer, fission function, and data-based functions and the construction of hardware and software have made more reflections; in turn, the social attributes of the people are constantly strengthened to replace the offline sales with group scenes. Leveraging the social channels such as WeChat and Vibrato to continuously and effectively fission, from the traditional “join + purchase + joint” path to “join + purchase + associated + behind the relationship chain”.

 

For example, the more mature approach to social e-commerce is the costless group fission. One seed user splits 10 distribution users. If your platform has 10,000 members, you can have 100,000 audiences. magnified. However, each of our direct sales platforms has 10,000 seed users. So the most important thing for traditional direct sales is to activate people. The fastest way to activate people now is to use social e-commerce to be simple, fast and efficient.

 

From direct sales to social e-commerce, we must have the idea of ​​doing Internet immigration, transfer direct sales people and relationship chains to the Internet, and build a fissile business model to help customers grow into the ultimate goal. Therefore, the direct selling company should truly empower the platform and change the traditional direct selling thinking of the self-domain members, thus establishing a selling thinking.

 

Now, with the rise of new consumer groups, coupled with the iteration and maturity of mobile Internet technology, enterprises should constantly reconstruct the local business consumption environment ecology, because the original path has been fragmented, and the dialogue with users is more direct and flatter. Therefore, the removal of intermediate links has become an inevitable trend. Let us desperately cross the border, from the direct sales circle to the life circle, social circle. If you have a buy, you can sell it, you can sell it, you can have money. Direct selling companies can learn more about rethinking, determine the direction of the company in the top-level design, and think about the next layer of design, which is the bottom layer of your platform. Whether the crowd can sell the goods, let this group of people go further from the longing for a better life, away from the era of direct refugees.

 

Finally, I wish every direct seller can dare to explore brands, products, users, quality, prices, services in the industry value chain... think about how to get closer to life, find a different social scene retail model, and explore and Break through.