A complete analysis of product development, supply chain management and market strategy: Taking the pet supplies cat litter box, cat bed, cat rack and other similar products as an example, select the market segment to create a series of products......

This content comes from a review of the first course of the December 7th City Meeting丨Tough Guys Series 4 compiled by enthusiastic users. The length of the content has been appropriately adjusted!

Cross-border e-commerce operation model and product development strategy

There are various sales models in cross-border e-commerce, including general merchandising, boutique merchandising, boutique and brand merchandising. Although the general merchandising model has also made some big sellers, for small and medium-sized sellers, from a long-term perspective, boutique and brand merchandising is undoubtedly a wiser choice.

At present, traffic costs are skyrocketing. Many product developers lack traffic thinking, resulting in products with impressive sales on the surface but meager profits or difficulty in reaching the expected premium level. The root cause is the failure to accurately analyze differentiation factors when selecting products.

In the past, market traffic was cheap and products were easily driven, but now traffic costs have increased significantly. Take the home furnishing category as an example. The click cost is staggering. It is difficult to make a profit by simply relying on advertising. Therefore, it is necessary to start from the top-level design to achieve the recycling of product traffic, promote buyers to make multiple purchases or repurchases, strengthen brand influence, and shape the Amazon platform into a high-quality transaction platform, rather than just a place for price comparison.

For small and medium-sized sellers, if they lack a powerful ERP and efficient human efficiency management system, the path of high-quality products and brands may be the key to future breakthroughs.

Product planning from 0 to 1

After deciding to go the boutique or brand route, planning from 0 to 1 requires comprehensive consideration of many factors. On the product side, it is necessary to evaluate whether one's own resources can be invested in the long term and how long it will take to see results. Different types of products, such as textiles, wood, iron, plastics, circuit boards, chemicals, etc., require significantly different investments (including funds and time) in differentiated development.

For example, the cost of changing the shape or functional structure of textile products is relatively low and the time is short; for plastic products, the cost of opening molds is high and the time is long, which may take several months and cost up to 100,000 to 200,000 yuan. At the same time, the certification requirements of various products are also different. Children's products involve CPC and other certifications, electrical appliances have CE, FCC and other certification requirements in different regions, and chemical products may involve FDA-related certifications, all of which constitute cost factors.

Therefore, before launching any product, you must comprehensively evaluate your own strength and cost-bearing capacity, and rationally choose your product portfolio or focus area.

The promotion end should not be ignored either

Take industrial scientific instruments as an example. Although it is difficult to establish a brand due to the high requirements for accuracy and the use of specific institutions, once it is recognized, the related sales and repurchases are considerable, and the gross profit can reach more than 30%. If you have conditions such as celebrity resources inside and outside the site or a high-quality quality inspection team, you can try to develop such products.

In addition, strong certification categories (such as children, medical equipment), strong supporting categories (such as auto parts, fishing gear), strong seasonal categories (such as outdoor, camping, swimming pools) and strong crowd categories (such as beauty) all have their own characteristics and opportunities. Developers do not have to limit themselves to a certain category. Trying multiple categories can help discover differentiated highlights, because different category structures and functions can be used in conjunction with each other.

Only by integrating products and operations can we seize opportunities. Taking MCN companies as an example, good content materials and video marketing methods can significantly reduce traffic costs, and the celebrity matrix can also help promote products. If the operation side has an advantage, the pressure on the product side will be relatively reduced; otherwise, the product needs to be more competitive.

Before gaining customer trust, products compete with other competing products in terms of channels, performance, etc., and are selected by customers; once trust is established, it can reduce customer time, traffic, education and other costs, and improve fault tolerance. Gaining user trust in a niche field is the ultimate goal of a product brand, which requires becoming an expert in the niche field and allowing customers to recognize the experience and evolutionary results of the team behind the product.

In terms of product planning, the short-term goal is to combine categories with own resources to build a product line with competitive barriers. When the resource advantage is obvious, you can focus on single product breakthroughs. If there is no resource advantage, you need to think about how to promote customer repurchase, improve conversion rate, and reduce traffic costs through product associations, such as creating a product group competition threshold. Long-term goals include integrating the supply chain to reduce costs, increase brand awareness, increase product transactions, improve conversion rates, and reduce traffic costs.

The product planning model can adopt a nine-square grid format, focus on product associations (such as creating a series of living room products), highlight professionalism (such as doing a lot of work in depth on a certain type of product), plan related category products (such as kitchen countertop-related products), and clearly lay out exposure and traffic-generating products (such as low-priced bread bags that have repeat purchases) and core product accessories (such as sofa covers and sofa legs). This will achieve product planning that is both professional and has related repurchases, exposure and traffic generation, and takes into account the after-sales and association building of core product accessories.

In product selection dimension

First, select segmented roles and market segments. Instead of simply focusing on the population, you should first explore market opportunities with relatively mild competition and good growth momentum, and then select segmented roles accordingly. Opportunities can be discovered through top-level planning, data research, and evaluation details, and then role information can be supplemented to avoid blindly determining the population and making it difficult to implement.

Second, when large-capacity categories select market segments to form product series, it is necessary to evaluate the market capacity in advance and ensure that the selected dimensions are accepted by the market, otherwise the input-output will not be proportional.

Third, starting from the scenario, when the single product dimension cannot support sales, consider the market capacity of the entire scenario and select appropriate scenarios to meet the investment and development needs of the product line. For example, cases such as children's categories, indoor aerobic exercise programs for young female office workers, and pet-type products all select segmented roles and markets from different angles, combine product characteristics, user needs and scenarios, and achieve product association and repeat purchases, providing operators with useful reference and guidance in product development and supply chain management.

Product planning and analysis strategy based on market segments

In the vast arena of business operations, product planning and market analysis are like beacons, guiding the direction of the company. Taking pet supplies as an example, cat litter boxes, cat beds, cat racks, etc. can be cleverly constructed into a series of products, and selecting market segments in large-capacity categories to create series products is also of great significance.

Take acacia wood for example. In the process of kitchenware research, its unique charm has emerged in the evaluation. Its unique texture and color are like a shining business star. Based on these remarkable features, it has been crafted into a series of products such as cutting boards, fruit baskets, dinner plates, chopstick boxes, bowls, etc. According to rigorous market calculations, its market size is about 30 million. With the investment of seven or eight people's human and material resources, such a market undoubtedly contains huge development potential, which is worth the company's full efforts to explore and forge ahead.

In-depth analysis from the perspectives of market capacity and premium space

Acacia wood products have shown strong competitiveness. For example, the bread box is priced at 99, compared with bamboo two-layer products priced at more than 40, it has a higher premium ability, and the market capacity is sufficient to support it to become a complete product line. The business logic behind this is that some consumers have a persistent pursuit of aesthetics and have a certain economic strength. They pay great attention to the beauty and matching of kitchen countertops.

The acacia wood series products can precisely meet this demand. Whether sold in sets or individually, they can stand out in the market, participate in fierce market competition, and thus reap high profits.

The planning of product series for the same scenario is also the key to commercial success. Taking industrial scientific instruments as an example, although magnetic stirrers, centrifuges and related consumables are in a niche market, they are eye-catching with their high profit margins. Customers of this type of product tend to buy series products, which have a high average order value and frequent related repurchases. It is undoubtedly a commercial blue ocean with great development value. Similarly, tools and products for the same scenario, such as swimming pool peripheral accessories, camping scene tools, spring and summer planting tools, etc., all have the potential and opportunity to be built into a series of product lines.

Product planning requires comprehensive consideration of multiple key factors

First of all, accurate assessment of your own positioning resources is the cornerstone. You need to deeply consider the various factors required to make high-quality products, such as the scale of capital investment and the payback period, and carefully draw a product line planning blueprint based on this. After having a product line framework, conduct in-depth research on various categories and carefully analyze the market segments, which covers the two core sections of internal research and market segment analysis.

Market research trend data often comes from a vast world outside the platform, such as the hot sales of epidemic prevention materials during the epidemic, the popularity of European energy storage products during the Russian-Ukrainian conflict, the hot sales of the national flags of the two countries during the Palestinian-Israeli conflict, and the profound impact of US inflation on consumption trends. These major events are like the vane of business waves, which profoundly affect the strategic direction of product planning. In the analysis process, we must be good at distinguishing short-term and long-term trends in order to make more accurate decisions.

Environmental protection concepts, extreme weather, cultural output, young people's consumption habits, the popularization of new technologies, the rise of emerging markets and other factors are like invisible business hands, influencing the direction of product planning. For example, bamboo products have gradually increased their market share due to the popularization of environmental protection concepts; the frequent occurrence of extreme weather has had a significant impact on the sales of seasonal products; the growth of demand for cultural output of Hanfu has driven the development of related supply chains; the popularization of APP voice control costs has prompted product improvements and innovations, etc.

Market segmentation analysis-evaluation is a powerful weapon to dig out business treasures

We should be good at capturing customers' pain points and unmet needs from the evaluation, so as to accurately determine the service objects of the product line, accurately assess the size of the market demand, and then judge whether we can compete effectively with competing products. It is worth emphasizing that most cross-border e-commerce companies should put market research and analysis in the first place in product development, otherwise they will easily fall into the business quagmire of unbalanced product structure and inventory backlog.

When conducting category analysis, you must not blindly cut categories due to a decline in sales of a single data or fluctuations in profit indicators. You must deeply understand that each category has a unique role in the grand chess game of product planning. For example, although some low-profit products have meager profits, they can play a key role in attracting traffic and promoting repeat purchases. Take the swimming pool disinfection box as an example. Although it is cheap, it is in high demand in the summer, which can effectively attract traffic to the store and drive sales of other products.

In the process of market segmentation analysis, determining samples is a key strategic step. This includes targeting product groups that serve the same needs, products in similar price ranges, and strong competitors with similar prices and important attributes. Specifically, by determining subcategories, carefully screening related products in BSR, classifying products based on power, function, structure, material, style and other dimensions, and selecting about 20 products with the top three sales, reverse-checking keywords to retain the top ten, further expanding the product range, and striving to include all relevant product groups.

After that, representative products are identified as competitors based on product attribute rules, and the unique ways in which products of the same price meet demand are deeply analyzed to fully prepare for subsequent differentiated competition. In addition, direct competitors can be identified based on the virtual competitiveness of parameter prices, providing a solid basis for suppliers to implement. Through this series of rigorous and scientific steps and strategies, enterprises can seize the initiative in the battlefield of product planning and market analysis and significantly improve the efficiency of commercial operations.

03.

Key points of product differentiation development and market analysis

In the complex journey of product development, accurate market analysis and effective differentiation strategies are like two sharp blades, the key to cutting through market thorns and achieving success.

In-depth analysis using a certain type of container product as an example

Through a comprehensive study of market competitors, we have preliminarily outlined its market profile: around 90 liters, about US$40, around 110 liters, about US$60, with a high concentration between 60-65, most with wheels, and made of iron baskets with wheels or cloth bags with wheels.

The differentiated products we pursue are not blindly competing with existing products, but carefully creating highly competitive products based on such meticulous market conclusions. Under the same attributes and price range, or other flexibly adjustable parameters, if a certain premium can be successfully achieved, it will undoubtedly make the product more advantageous in the market.

Dive deeper into customer preference areas

We found that subtle differences in product design can trigger completely different market reactions. For example, a design with iron flowers may make the product stand out from many competing products and be more attractive. At the same time, there are relatively few white products on the market, and iron and wood combinations are rare. These unique elements provide valuable ideas for our product differentiation. In subsequent product development, we can consider cleverly using white as an embellishment to create a unique visual effect. Of course, all of this requires us to virtualize or accurately find direct competitors before product development, so as to lay a solid foundation for subsequent differentiated design and development.

Find potential risks in product differentiation

Among them, new release products have relatively low risks because they have been verified by certain sales volume. They are like a relatively calm commercial harbor and can be given priority in product development.

For products that are not verified by anyone or the platform, the risk is at a medium level, just like exploring in the fog, and we need to be extra cautious. For example, the styles found through keyword search, offline supplier recommendations, exhibitions, equipment displays, etc., although they contain opportunities, they are also accompanied by risks. At this time, we need to rely on multiple data support to make accurate judgments.

For example, when we find a product with average sales but low ratings and a price significantly higher than the average, if it is not the result of strong advertising promotion on the operation side, then there must be unique highlights hidden behind its high price, and it has been initially verified by the market;

For example, for products that have been on the shelves for a short time and have rapidly grown sales (such as within three months), if they do not rely on price advantages or off-site traffic and other factors, then they are likely to meet market needs that have not yet been fully explored, or have adopted a more outstanding differentiation strategy. Such products are like treasures hidden deep in the market and are worthy of our in-depth exploration and research.

The evaluation side is also a rich mine for digging out product differentiation

We cannot blindly change products based on natural evaluations alone. Instead, we should pay close attention to customers’ demands for changes in product structure and function. By deeply analyzing these demands, we can infer the functional demands hidden behind them.

For example, if a new product that appears on an independent brand's independent website has a certain sales volume and has no brand presence on the Amazon platform, and if its sales channels and prices are acceptable to the market, then the risk of such products is at a medium level and can be attempted to be developed; for example, products that have sales on third-party platforms but are not available on the Amazon platform, as well as products recommended by suppliers that are sold and can be supplied in the target market, can also be taken into consideration if the target markets overlap with each other.

However, it should be noted that for these medium-risk products, they must be verified with multiple data supports to ensure the scientificity and accuracy of development decisions.

When judging new demand by keywords, if the keywords have a certain search volume and low CPC, such as some attribute words, we need to further search whether the corresponding products are related to the target products to determine whether there are potential market opportunities. For new models from offline suppliers and models seen at exhibitions without clear data support, we need to comprehensively investigate the demand premium, supplier strength and other factors, and make comprehensive considerations and judgments.

The main premise of product change

The premise of product changes is to maintain a high degree of consistency with the population, goals, and scenario needs of the product line. Even if you find an extremely attractive differentiated element during the development process, you must carefully consider whether it fits the overall tone of the product line. If the difference between the two is too large, appropriate adjustments are needed to ensure the coordination and consistency of the product in the overall product line. In actual operations, we need to widely collect a large number of products that serve the same needs and carefully build a product library.

For example, through BSR, keyword reverse search, positioning advertising and other channels, we can find products with high prices and stable sales or low scores but good sales, and conduct in-depth analysis of their success factors such as off-site promotion strategies, keyword placement techniques, appearance design features, functional features, etc.

For example, a baby walker product has a higher price than its competitors and has stable sales. Through careful analysis, we found that its unique selling points, such as deceleration, anti-fall wheels and music function, are popular with customers. After determining the priority of these selling points, we can skillfully integrate these elements into the development of new products, and use professional appearance design or industrial design when necessary to create more competitive products.

Another example is a ball net product. Although it has a low score, it is priced high and has stable sales. Its main selling point is the unique design of the light. Specifically, it does not have a power supply or a battery, moves with the music, and is bright in a circle. By comparing and analyzing competing products with a strip of lights, and considering multiple factors such as price, power supply method, and music rhythm function, it is determined that adding a circle of lights is the key improvement point that customers care about most. At the same time, considering the problem of product sagging, effective measures such as adding lines to the volleyball net to connect to the pillars and adding counterweights are used to determine a clear product development logic and create products that meet customer needs and have differentiated competitive advantages.

Another example is a massage product. Although the new product has no sales for the time being, we can refer to the customer pain points of similar products to develop and design it. The old product has problems such as the hand needs to be pressed and it is inconvenient to relax when using it, and it is difficult to operate the switch. Although the new octagonal form can free your hands, the switch position design is unreasonable. Therefore, consider lengthening the switch and placing it next to the user for easy operation.

Due to the characteristics of the product structure, it was necessary to add a remote control function. After considering complex issues such as wired and wireless remote control and battery power consumption, through collaborative communication with multiple suppliers, it was finally decided to reduce power consumption by transmitting a pulse signal every 3 seconds, and set up an intelligent solution of long pressing for 3 seconds to wake up the remote control, so that the product battery capacity can meet the requirements of the supply cycle, thus creating a massage product with optimized functions and good user experience.

However, the road to product development is not always smooth, and failure cases are not uncommon.

For example, for a laundry aid product, the developer simply added a zipper based on his subjective opinion of the height problem during use, but did not conduct rigorous data verification. As a result, the product did not sell well after it was launched on the market. This profoundly shows that product development is best supported by sales verification, and demand verification is also crucial. Products with data support have relatively low risks and can sail more steadily in the waves of the market.

In response to the severe challenges of limited product life cycle and follow-up of competitive products, we can adopt a clever strategy, that is, to split the important parts of the product. The advantage of doing so is that it increases the difficulty for competitive products to follow up and make it difficult for them to copy our product advantages in a short period of time.

For social media user feedback, the cumulative order feedback of e-commerce platform transactions is undoubtedly the most direct and valuable source of information. Although the evaluation, likes and other data of platforms such as TK can be used as a reference, due to the characteristics of their platforms, the accuracy is relatively low. However, we can still include these data in the analysis scope to expand the sample capacity, reduce the risk of pitfalls, and provide a more comprehensive perspective and basis for product development and optimization.

For products with low average order value, single material, only different size and no other functions, if they have large size that can achieve higher profits and have traffic-generating functions, then their role and value can be fully considered in product line planning, and a comprehensive assessment can be made as to whether it is worthwhile to explore and develop them in depth so that they can play a unique role in the product line.

04.

Comprehensive analysis of product development, operation and market strategy

In the vast world of product development and operation, many key factors are intertwined and influence each other. For those products that have already entered the market, have 10,000 or 20,000 reviews, but whose profits are difficult to support the operation of the team, we must go deep into their value core and conduct comprehensive and detailed considerations.

Seeking support from suppliers is a feasible approach. For example, actively seeking credit terms discounts can effectively ease financial pressures. Or seeking special treatment when developing new products. For example, some silicone products can try to leverage the advantages of the supply chain and require suppliers to provide attractive preferential conditions such as free mold opening during the new product development phase, thereby deeply tapping the potential value of the product.