WHAT IS PRIVATE TRAFFIC

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 35 © Copyright 2020 – Daxue CREATE YOUR OWN PRIVATE TRAFFIC POOL PRIVATE TRAFFIC POOLS MAKE GAINING AND CONTROLLING TRAFFIC MORE COST-EFFECTIVE

PRIVATE TRAFFIC POOL PUBLIC TRAFFIC POOL

Personal Group Personal / message chat public account

WeChat Community WeChat Moments Mini program Personal account and community Platform and marketplace with with close relationship with huge traffic and resource consumers VS ✓ Direct contact with consumers ✓ Contacting with consumers through platforms ✓ More focus on targeted audience ✓ Reaches a wide range of consumers ✓ Improving consumer retention rate ✓ Mainly disposable flow, hard to complete retention ✓ Low cost on getting traffic ✓ High cost on getting traffic

Like owned traffic in the West, private traffic is a direct response to the rising costs of reaching fans and followers. Private traffic is free from the algorithms of large ecommerce platforms, putting the brand in control of how consumers see their products.

www.daxueconsulting.com Source: Youtube, TechNode [email protected] +86 (21) 5386 0380 36 © Copyright 2020 – Daxue “PRIVATE TRAFFIC” IS TRENDING AMONG CHINESE MARKETERS MORE PEOPLE WANT TO LEARN ABOUT PRIVATE TRAFFIC IN 2019

Baidu index “Private traffic” (in last 12 months) Zhihu column “Private traffic”

Search index

~1,200 Work with private traffic: How to make your video go viral on Douyin? x 4 Times

~300 How to get traffic and earn revenue through private traffic?

Private traffic: How to lock users and realize low- Higher search index on shows that the “private traffic” concept started cost conversion? taking off in Spring 2019. With several successful examples emerging in the market, marketers want to learn how they can leverage private traffic.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 37 © Copyright 2020 – Daxue HOW CONSUMERS FEEL ABOUT PRIVATE TRAFFIC IN CHINA CONSUMERS SHOW THEIR WILLINGNESS TO JOIN PRIVATE TRAFFIC POOLS, WITH WECHAT AS THE MOST WELCOMED CHANNEL

Chinese consumer acceptance of Distribution of private traffic marketing channel in China private traffic (2019) (2019)

50.8% 50.5%

Against 7.6%

Supports 30.8% 23.6% Do not 18.4% care 29.9%

Account on other Wechat public Wechat personal Community Depends 3rd party account account 31.7% platforms

N=1525

www.daxueconsulting.com Source: https://www.iimedia.cn/c1020/66372.html [email protected] +86 (21) 5386 0380 38 © Copyright 2020 – Daxue HOW PRIVATE TRAFFIC MARKETING WORKS IN CHINA IMPROVING CUSTOMER STICKINESS AND CLIENT RETENTION RATE AFTER GETTING TRAFFIC FROM PUBLIC TRAFFIC POOL.

Public Traffic Pool (Connect & screening)

Private Traffic Referral Pool (Managing & retention) Communication Conversion Re-purchase

Source: www.daxueconsulting.com https://zhuanlan.zhihu.com/p/83707641?utm_source=wechat_session&utm_medium=social&ut [email protected] +86 (21) 5386 0380 m_oi=619454018930610176 39 © Copyright 2020 – Daxue HOW TO ESTABLISH A PRIVATE TRAFFIC ECOSYSTEM ON WECHAT CREATING AN EMOTIONAL TIE WITH CONSUMER AND INTEGRATING SOCIAL MEDIA MARKETING WITH ECOMMERCE

Personal account Group chat • Free from WeChat’s regulations • A community for targeted audience • Provide personal service and care • Communicate directly to consumers • Build close relationship with consumers • Focus on customer retention and repurchase and be present in moments feeds

Public account Mini program • Integrate and correlate the whole • Convenient channel for shopping ecosystem • Effectively connect ecommerce and social • Provide high quality content media marketing • More flexible and ensures more engagement

www.daxueconsulting.com Source: http://ketang.ecbao.cn/17189.html [email protected] +86 (21) 5386 0380 40 © Copyright 2020 – Daxue HOW TO COMMUNICATE WITH CONSUMERS IN PRIVATE TRAFFIC POOL BEING CLOSER TO CONSUMERS BY SATISFYING THEIR DEMANDS QUICKLY AND DIRECTLY

Model 1: Model 2: Model 3: Shopping assistant Topic expert Private partner

Leveraging social media Lead by professionals, it aims at Has personalized interactions platforms to share product or creating a highly loyal community with consumers through social How it works campaign information with by answering questions and media platforms. consumers. acting as an expert on the topic.

Perfect Diary (完美日记) shares Daily Yoga (每日瑜伽) shares Perfect Diary (完美日记) detailed information about Yoga-related knowledge in their provides individual service to promotion activities in their private traffic group. consumers in their private private traffic group. traffic group.

What it looks like Start time Common Consumer raised problem question Product & Price Solution sharing Solve the problem quickly

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/VUkiwU2a2HcqCMeQholqhA [email protected] +86 (21) 5386 0380 41 © Copyright 2020 – Daxue HOW PRIVATE TRAFFIC WORKS WITH REAL EXAMPLE LEVERAGING WECHAT ECOSYSTEM TO ATTRACT TRAFFIC AND BUILD COMMUNITY INDEPENDENTLY

Products promotion Knowledge sharing HTML5 store integrated in the public account Providing QR code of a personal account at the bottom of some public account post

Sending invitation from personal account to join the group

Directly communication with consumers Lead traffic to the store in the group chat

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 CASE 1: LOUIS VUITTON

INDEPENDENCE FROM MARKETPLACES

Source: The Wall Street Journal 43 © Copyright 2019 – Daxue LOUIS VUITTON IN CHINA MAINTAINING INDEPENDENCE IN ALL SALES CHANNELS

○ LV entered China in 1992. Currently, it has around 40 offline stores and three self-operated online stores in China. ○ In the 9 months between October 2018 and May 2019, about 8% sales came from LV’s online store.

By allowing online purchases on it’s website, the click-through rate of the site increased by 14% and had become LV’s highest performing retail channel.

LV’s sales channels in China

First offline store Brand APP Self-owned online store WeChat store 2004 2013 2018 2019

www.daxueconsulting.com Source: https://www.huxiu.com/article/252937.html [email protected] +86 (21) 5386 0380 44 © Copyright 2019 – Daxue LV IS HIGHLY INDEPENDENT IN THE DIGITAL MARKET MARKETPLACES ARE NOT INDISPENSABLE, BRANDS CAN DRIVE TRAFFIC THROUGH SOCIAL MEDIA

Social media platforms Brand-owned channels

Weibo Brand.com Traffic Traffic & Membership data Membership data WeChat Membership data brand zone

Douyin Xiaohongshu Brand APP

With little presence on marketplaces, brand.com and brand apps are central in LV’s digital strategy.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 45 © Copyright 2019 – Daxue BRAND.COM IN CHINA: LOUISVUITTON.CN HOW LV SELLS TO CONSUMERS DIRECTLY

Product category Payment method All products are Alipay, WeChat pay, available on their Bank card website

Delivery service • Free delivery • Delivered by SF Express • In stock products: delivered 1-2 days after payment • Pre-order products: delivered within 1-8 weeks

Click & Collect service • Available to collect in offline stores by choosing this purchase method • Consumers are notified when the good is ready

After-sales service • Returns available within 7 days by receiving • Free door-to-door collection and delivery service

www.daxueconsulting.com Source: louisvuitton.cn [email protected] +86 (21) 5386 0380 46 © Copyright 2019 – Daxue LV SUCCESSFULLY BUILT AN INDEPENDENT BRAND IMAGE SELLING AS A BRAND, NOT A PRODUCT

Traffic source of LV.cn Top 5 Organic keywords, compared to previous (Oct. 2019) month’s data (Oct. 2019) Social, Display, 2.6% 1.0% Email, 1.0%

Referrals, 7.6% LV official website

Louis Vuitton From 24th November Search, st Direct, 32.6% 55.2% LV China official site to 1 December, LV.cn ranked top 2.3% 95% from organic research of all Chinese website LV China in “entertainment and fashion” category.

With more than half of traffic coming from direct research, LV has successfully improved its brand awareness in China. More Chinese consumers search LV because of the brand itself but not for specific products.

www.daxueconsulting.com Source: Similarweb.com, Top.Chinaz.com [email protected] +86 (21) 5386 0380 47 © Copyright 2019 – Daxue TRAFFIC MONETIZING OF LOUISVUITTON.CN REALIZING STRONGER TRAFFIC MONETIZATION ABILITY

Organic exposure rate of Burberry’s Top destination sites of traffic from referrals flagship store on Tmall (Oct. 2019) (5th Nov. 2019 – 5th Dec. 2019)

Monthly sales Store exposure index Conversion rate 9,932 80,172 12.39%

* Store exposure index refers to views volume index of direct research on Taobao & Tmall * Conversion rate = Monthly sales / Sore exposure index * 100

About 10% of website visitors from referring site complete a Compared to Burberry’s flagship store on Tmall, the traffic transaction. monetization capability of LV.cn is no worse than With significant traffic growth on excashier.com in October, it competitors on marketplace such as Tmall. seems LV has successfully built its independent brand image and market strategy in China.

Source: Similarweb.com; Taosj.com www.daxueconsulting.com [email protected] +86 (21) 5386 0380 48 © Copyright 2019 – Daxue MARKETPLACES ARE NOT SUITABLE FOR ALL BRANDS IT IS DIFFICULT FOR BRANDS PROVIDE HIGH QUALITY PRODUCTS AND KEEP PRODUCTION SPEED UP WITH INCREASING SALES.

Consumers’ perception of LV’s official website on Weibo Consumers perception Most Chinese consumers complained that some of LV’s products are often out of stock, so they always need to wait for a long time after making order on LV.cn.

LV’s current situation Although LV has not officially sold on marketplace, there is still a shortage of supply. It may discourage some consumers from buying.

Weibo is China’s biggest social media network that was launched in Tips for brands 2009. Over the past years, it has transformed from a Chinese For brands who are insisted on providing high quality equivalent of Twitter to a comprehensive platform. products, marketplace would not be a good choice. Because it’s hard to catch up with the increase on sales brought by exposure from the marketplace.

Source: www.china-briefing.com www.daxueconsulting.com [email protected] +86 (21) 5386 0380 49 © Copyright 2019 – Daxue BETTER CONNECTIVITY BETWEEN CONSUMERS AND PRODUCTS LV’S BRAND APP SHOWS MORE INNOVATION AND CREATIVITY BY LEVERAGING DIGITAL TECHNOLOGY

Applying artificial intelligence technology on LV APP Intelligent connection

Watch

Earphones

Suitcase

Synchronize with new products

LV’s brand APP has roughly the same product category, delivery and other services available on website. It provides a more convenient shopping process than websites. LV is trying to capitalize on digital opportunities by leveraging its APP channel, Allows APP users to find products Allows APP users to connect LV’s which cannot be realized by having store on in its online store by scanning a QR intelligent products. marketplace. code. www.daxueconsulting.com [email protected] +86 (21) 5386 0380 50 © Copyright 2019 – Daxue BRAND APP SHOULD PRIORITIZE USER EXPERIENCE BETTER USER EXPERIENCE CAN INCREASE BRAND LOYALTY.

Rank history of LV APP in shopping category (on iPhone, China, Sep 12, 2019 – Dec 10, 2019) Ratings of LV APP on APP Store CN-Shopping (Dec 10, 2019)

5 stars, Dec 9, 2019 28% Rank: 185

Total 1 star, Displayed 4 stars, 53% Ratings 4% Most recent feedback on APP Store 3 stars, • Almost no positive feedback from Chinese consumers 6% 2 stars, • Most complaints are around: 8% ✓ Unable to login and no fixed version until now ✓ Product and order information is inconsistent with LV APP ranked not very high as a that on website shopping APP. ✓ Hard to connect intelligent devices There still are some defects need to fix, especially technical issues. ✓ Slow in operation process

Source: https://www.appannie.com/; Apple App Store, 2019 www.daxueconsulting.com [email protected] +86 (21) 5386 0380 51 © Copyright 2019 – Daxue LV CONTINUOUSLY IMPROVES USER EXPERIENCE

AS A HIGHLY INDEPENDENT BRAND, LV BETTER UNDERSTANDS THEIR CUSTOMERS AND THEREFORE CAN EASILY ADAPT TO DEMAND.

Some critical updates of LV APP in APP Store

Improved Embedded LV Enabled search nearby synchronization touch in offline stores with and scan function iMessage products in stock

Dec 1, 2017 Jun 20, 2019 Oct 2, 2019 Version 2.2.1 Version 5.2 Version 5.5

Nov 4, 2014 Jan 25, 2018 Aug 15, 2019 Version 2.11 Version 4.4.2 Version 5.3.3

Added full product Improved search Added automatic category and user function recommendation account

Source: https://www.appannie.com/ www.daxueconsulting.com [email protected] +86 (21) 5386 0380 52 © Copyright 2019 – Daxue BUILD INDEPENDENT BRAND IMAGE ON WECHAT BRAND INDEPENDENCE ENABLES LV TO HAVE A FLEXIBLE PROMOTION STRATEGY ON WECHAT

Structure of LV’s WeChat brand zone (Dec. 2019)

As the main page for WeChat brand zone

Shopping channels End goal to drive traffic to mini-program (Different ecommerce events are introduced for different marketing campaigns )

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 53 © Copyright 2019 – Daxue LV PROMOTIONS ON WECHAT DRIVE TRAFFIC TO MINI-PROGRAM STORE

LV’s WeChat public account Post content and effect Performance

4 latest posts on LV Official Account Evaluation of LV Official Account Date Subject View Item Score 24 Oct. LV Archlight sneakers 100k+ Value of investment on ads 9/15 Holiday gifts 5 Nov. LV twist bag 100k+ Completeness of basic 15/15 information 15 Nov. LV’s cobranding with 100k+ My homepage League of Legend Activeness 3/10 LV official website 22 Nov. LV men’s bag 100k+ User stickiness 5/15 LV offline stores Content quality 9/15 LV APP Providing entrance to mini-program pop- Impact 29/30 up stores at the end of article LV’s WeChat public account is well-connected with Active followers other channels. Most article posts are correlated with marketing 960,205 campaigns. Rank All articles are quite successful, we can assume Click to buy these posts do drive large volume of traffic to its 75th in fashion category WeChat stores.

Source: http://www.newrank.cn; https://www. xiguaji.com www.daxueconsulting.com [email protected] +86 (21) 5386 0380 54 © Copyright 2019 – Daxue HOW LV SELLS TROUGH MINI-PROGRAM ECOSYSTEM LEVERAGING SOCIAL MARKETING STRATEGY TO DRIVE TRAFFIC FOR BRAND ITSELF

LV’s mini-program ecosystem (Dec 10, 2019) LV conducts flexible traffic control within the mini-program ecosystem as it could Traffic in be redirected from one to another. December Improving traffic monetization capability by providing easier shopping process. Sneakers store

Product category: Christmas pop-up store ~100K Shopping channels ✓ Sneakers Entry points of * pop-up stores ✓ Men’s fall & winter collection change based on ✓ Boutique mini-programs: LV collection promotion campaigns Payment method: WeChat pay only WeChat posts Men’s collection pop- Navigation bar in up store chat-box Brand mini site “Homepage” works as the main WeChat search Offline store navigation engine Customer service page of mini-program ecosystem, and provide and navigation entrance to other mini- Homepage ~387K programs.

Source: https://data.xiguaji.com/ www.daxueconsulting.com [email protected] +86 (21) 5386 0380 55 © Copyright 2019 – Daxue HOW LV USES KOL MARKETING

Promotion on Xiaohongshu Promotion on Weibo Official account Most popular posts Official account One of most popular posts

link to louisvuitton.cn

Hot topics

#Fall in love #LV blooming# with LV chain Brief brand profile A Chinese idol wallet# Chinese celebrities

Followers Followers 82,000 4.1 Million

LV’s XHS account improves Reaching more than 4 million visibility by raising topics and followers, Weibo could be an ideal discussion on their hot products. channel for potential consumers. The promotion activities on XHS target young netizens. link to louisvuitton.cn

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 56 © Copyright 2019 – Daxue HOW LV DRIVES TRAFFIC TO BRAND.COM UTILIZING MAINSTREAM SEARCH ENGINE AND SHORT VIDEO PLATFORMS FOR HIGHLY TARGETED PROMOTION

LV’s advertising on Baidu shows up during LV’s Christmas promotion ads on Douyin searches for “Luxury goods” Lock screen video ads Feeds ads Users’ comments Luxury goods

GUCCI Such a wonderful ad! I like the red bag. How can I buy it? Even LV official PRADA advertises on Douyin? Louis Vuitton, you’ve succeeded at making us LV girls obsessed. Linked to LV.cn MICHAEL KORS LV started to do advertising on Douyin, a Chinese social media platform which LV paid for targeted keywords to be owns rich resource and traffic volume. preferentially showed in the search engine Since LV has no presence on marketplaces, these advertisements can drive all Baidu to help increase traffic of LV.cn. traffic to its own sales channels.

Source: https://www.adquan.com/post-2-47840.html www.daxueconsulting.com [email protected] +86 (21) 5386 0380 57 © Copyright 2019 – Daxue ADDING INTELLECTUAL PROPERTY IN MESSENGER USING SHARABLE BRANDED VISUALS TO GET CLOSER TO CONSUMERS.

LV’s iMessage stickers

In January 2018, LV embedded LV touch into iMessage and provided attractive stickers based on its brand visuals. Every iPhone user can send the sticker through iMessage after downloading LV APP.

Leveraging iPhone users’ social connection to expand influence and improve brand awareness. It is also a trigger to attract people download the LV APP.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 58 © Copyright 2019 – Daxue SENDING NEWSLETTERS FOR CUSTOMER RETENTION DIRECTLY, REGULARLY AND COST-EFFECTIVELY WAY TO PROMOTES FOR BRAND ITSELF

Welcome email Holiday promotion newsletter Link to shopping page on LV.cn

Recommended products

louisvuitton.cn

Links to LV official WeChat and weibo

Buy now Prepare for celebration

LV’s newsletter is designed to drive traffic to LV.cn and its major social media accounts. Ensuring direct communicating with potential consumers to stimulate demand and realize retention.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 59 © Copyright 2019 – Daxue CO-BRANDING: INCREASING EXPOSURE TO NEW CONSUMER GROUPS COLLABORATED WITH A BRAND WHICH HAS A HIGH PURCHASE FREQUENCY TO BOOST BRAND AWARENESS

Recently, LV collaborated with LEAGUE of LEGENDS (world leading video game), and created a series of co-branding products. 2019.9 2019.10 2019.12 2019.12 Designed a suitcase for LOL Published LV x LOL game skins Published LV x LOL collections LV x LOL stickers fit for WeChat

As a luxury brand with a lower “This might be the only LV I can “I like the dress but it is too consumption frequency, the afford” “The suitcase is most attractive” expensive” collaboration helped LV improve “I think the suitcase is more “I’m going to buy one!” brand awareness, as well as valuable than the trophy” “So cool! I like all of them!” strengthened its brand.

Comments on Weibo Source: http://www.1th1.com/weixin/price/3940.html www.daxueconsulting.com [email protected] +86 (21) 5386 0380 ost-2-47840.html 60 © Copyright 2019 – Daxue ROADMAP OF LV X LEAGUE OF LEGENDS MARKETING CAMPAIGN COVER NEW GROUPS OF CONSUMERS THROUGH COORDINATED PROMOTION ON ALL CHANNELS LV’s promotion ecosystem Vote launched on Weibo LV.cn APP Newsletter Will you buy LV x LOL collections?

Yes, I will

Not interested LV x LOL No, can’t afford

More than 10.6K people voted WeChat public account Mini-program Weibo LV’s promotion has reached large volume of potential consumers. LVxLOL posts Views: 100K+

LV has built a mature promotion system by itself to meet different demands. Entrance of LVxLOL mini-programs Arousing LVxLOL topic on Weibo and has attracted more than 1 million discussion

www.daxueconsulting.com Source: http://www.1th1.com/weixin/price/3940.html; Weibo.com [email protected] +86 (21) 5386 0380 CASE 2: PERFECT DIARY 完美日记

EXCELLENT EXAMPLE OF PRIVATE TRAFFIC MARKETING

Source: Weibo@PerfectDiary完美日记 62 © Copyright 2020 – Daxue PERFECT DIARY 完美日记 AN EMERGING BRAND THAT STARTED ON MARKETPLACE BUT IS GRADUALLY BECOMING INDEPENDENT.

○ PERFECT DIARY is a young Chinese Beauty brand targeting young women born in the 90s. ○ The brand started its online business on Taobao, and tried to sell independently later. ○ It now has 40 offline stores and one brand-owned store on WeChat.

In the “Hurun Greater China Unicorn Index 2019 Q3” report published by Hurun research unit*, Perfect Diary was ranked 6th on the top new Unicorn list, with valuation at 7 billion RMB.

* Hurun research unit is a leading luxury publishing group

Perfect Diary’s sales channels Self-owned channel Marketplace

Taobao & Tmall First offline XHS store Douyin store JD store store WeChat store store 2017 SEP. 2017 DEC. 2017 JUL. 2018 OCT. 2018 JAN. 2019

Source: https://baike.baidu.com/reference/22119286/426eN0Spxp_s- www.daxueconsulting.com tePzTwHLeZZyK_-fFaP2hUnv7rVMwx4odCiOxZJWeY3Z64W3IfD6N544Sr- [email protected] +86 (21) 5386 0380 kdKAzz5C6gSkq9vVMTf6C5dlRn1AnE_4GMcmyGeaew 63 © Copyright 2020 – Daxue CONVERTING PUBLIC TRAFFIC INTO A BRAND’S OWN ASSET A PERFECT EXAMPLE TO LEARN HOW TO GAIN INDEPENDENCE FROM THE MARKETPLACE

Perfect Diary’s online marketing strategy

Public traffic Private traffic

Social media platform Personal account Group chat • Build personal connection • Build community for • Leverage KOL strategy between consumers brand fans • Create brand recognition • Invite consumers into • Share information • Stimulate purchase desire group chat • Encourage communication

Public account • Provide high-quality content and attract more attention Flagship stores on ecommerce platforms

• Make order WeChat store • Complete conversion • Consumers are more likely to re-purchase

○ Perfect Diary builds its private traffic pool on WeChat, which can be conducive to re-purchasing. ○ This brand leverages rich outside resources and then converts it into its own resources and realizes consumer retention.

www.daxueconsulting.com Source: https://36kr.com/p/5239729 [email protected] +86 (21) 5386 0380 64 © Copyright 2019 – Daxue LEVERAGING XHS TO IMPROVE BRAND AWARENESS INCREASING BRAND VISIBILITY BY WORKING WITH KOLS

Job description for “KOL advertising” position

Be familiar with new media channels like XHS. Brands’ visibility on XHS Better to have some KOL and Multi-Channel Network (MCN)* Followers Like & Save Followers Like & Save resources. 1.7 Million 2.3 Million 184 K 87 K * Multi-Channel Network (MCN): Agency manages KOL activity including content creation and marketing. L’OREAL is a world leading cosmetics company, it Perfect Diary’s KOL advertising volume on XHS entered China in 1996. (no. of cooperated KOL)

Jan-Jul, 2019 683 ○ Perfect Diary shows particular preference for KOL marketing on XHS. ○ The brand is still working on expanding their influence on XHS by cooperating with more KOLs. Jan-Jul, 2018 248 175% ○ Their strategy on XHS performed well, even better than world leading brand in the cosmetics industry.

www.daxueconsulting.com Source: https://36kr.com/p/5239729 [email protected] +86 (21) 5386 0380 65 © Copyright 2019 – Daxue UTILIZING THE BANDWAGON EFFECT FOR HIGH BRAND VISIBILITY PERFECT DIARY’S HIGHLY COST-EFFECTIVE ADVERTISING STRATEGY ON XHS

Perfect Diary’s KOL advertising structure on XHS

Popular celebrity status Collaborating with celebrities to lead trends Celebrities and create momentum. 0.1% Influencer with 50,000 – 1 million + KOL followers on XHS (Key Opinion Leader) KOLs can contribute high-quality content and motivate word-of-mouth marketing. 15.5%

KOC Common users with less followers In-person experience shared by common (Key Opinion Consumer) users are more convincing to consumers. 84.4%

www.daxueconsulting.com Source: https://36kr.com/p/5239729 [email protected] +86 (21) 5386 0380 66 © Copyright 2019 – Daxue DIFFERENT GROUPS OF PEOPLE PROVIDE DIFFERENT CONTENTS EXAMPLES OF PERFECT DIARY’S KOL ADVERTISING ON XHS

Celebrity posts KOL posts KOC posts

182 likes 781 likes

Both are young and popular • Content from KOCs appear more 16K likes 38K likes celebrities in China ordinary but are more trustworthy for 18 K 83 K consumers. Head KOLs’ posts normally introduce • Though each can reach to limited 2.3 K 2.7 K products with charming pictures and number people, a large volume of detailed description. 23 K 36 K KOCs can make waves.

www.daxueconsulting.com Source: http://www.100ec.cn/detail--6498346.html [email protected] +86 (21) 5386 0380 67 © Copyright 2019 – Daxue CONVERTING PUBLIC TRAFFIC INTO PRIVATE TRAFFIC MOTIVATING CONSUMERS FROM MARKETPLACES TO ENTER ITS PRIVATE TRAFFIC POOL AT A LOW COST

Perfect Diary’s private traffic acquiring process

Send the photo of promotion card

Follow Perfect Diary’s Public Account Scan QR code to get lucky money Add one personal account called “Xiaowanzi”

Entering codes to get lucky money Receive invite to enter WeChat group

○ The promotion card is attached to products sold on marketplace*. Personal account Xiaowanzi gives access to get ○ Lucky money encourages consumers to enter its private traffic pool. lucky money and sends personal invitations to enter private traffic group.

* We bought Perfect Diary’s product from both Tmall and its WeChat store. The promotion card is www.daxueconsulting.com only attached with products from Tmall. [email protected] +86 (21) 5386 0380 68 © Copyright 2020 – Daxue CREATING A VIRTUAL KOC CHARACTER CREATING EFFECTIVE COMMUNICATION IN BRAND’S PRIVATE TRAFFIC POOL

Character image of Xiaowanzi Xiaowanzi 小完子 Interior image Who is She? Positive, lively An imaginary KOC character Exterior image and has many created by Perfect Diary. hobbies What’s her role? Beautiful and well dressed o Provides information on products young girl o Beauty Consultant o Provider of real-time customer service ○ Xiaowanzi has similar characteristic with Perfect Diary’s target consumers. o Friend ○ This KOC character help the brand build closer relationship with consumers. ○ Close relationship makes communication more effective and efficient.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 69 © Copyright 2020 – Daxue BUILDING PERSONAL CONNECTIONS WITH CONSUMERS CREATING A PERSONAL ACCOUNT MATRIX TO PROVIDE CUSTOMIZED SERVICE

‘Black technology’ behind Perfect Diary’s WeChat Moments of different accounts personal account matrix

Post frequency

Xiaowanzi 1 2-4 posts per day

One operator Main content

Xiaowanzi 2 • Life sharing … … • Products promotion • Product related ○ Leveraging group control technology, Perfect knowledge sharing Diary created hundreds personal account with unified character image called “Xiaowanzi”. ○ Normally, each WeChat personal account can ○ Sharing high quality content on WeChat moments to have no more than 3,000 contacts. So, Perfect stimulate shop desire. Diary has already has millions of followers in its ○ Providing different content to different consumer groups. private traffic pool.

www.daxueconsulting.com Source: https://36kr.com/p/5239729 [email protected] +86 (21) 5386 0380 70 © Copyright 2020 – Daxue EFFECTIVE COMMUNICATION TO INSPIRE RE-PURCHASE ESTABLISHING A SERIES OF COMMUNITIES TO SELL AND COMMUNICATE DIRECTLY TO CONSUMERS

Communicate with consumers in WeChat group Expansion of one WeChat group

Real-time support Product promotion Customer Is this new arrival? Discount produces 267 400 Created +150% Xiaowanzi people people New Yes, it’s new for Christmas. arrivals Nov. 15, 2019 Nov. 18, 2019 Dec. 20, 2019

○ Perfect Diary has hundreds of private traffic groups, and each is managed by one personal account. ○ The group expands fast and has promotion activities everyday. ○ The manager Xiaowanzi acts as a reliable friend and provides exclusive service for all consumers in the Live stream activity Related knowledge group.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 71 © Copyright 2020 – Daxue MAINTAINING RETENTION ON BRAND-OWNED SALES CHANNELS DRIVING BRAND’S PRIVATE TRAFFIC TO ITS OWN STORES

Entry points to Perfect Diary’s WeChat stores Perfect Diary’s WeChat stores

Navigation bar on official Links in each WeChat post Flagship store Abbys choice accounts’ main page 完美日记旗舰店 完子心选 1 2

Online store

Providing entrance to Perfect diary’s flagship store on WeChat.

Links shared by Xiaowanzi

Providing entrance to another Main shopping Branch store on WeChat store called “Abby’s choice channel on WeChat, WeChat, which only Perfect Diary has 6 public accounts and 完子心选”, which might related to providing all sells products promoted each of them are store entry points. each personal account’s KPI. products. by personal accounts.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 72 © Copyright 2020 – Daxue FINDING NEW CONSUMERS OFFLINE AND CONVERTING THEM TO ONLINE REGULAR ONLINE CONSUMERS BY INVITING THEM TO PRIVATE TRAFFIC POOLS

Perfect diary’s first offline store in Establishing new private traffic pool based on offline stores

Giving free gifts to motivate Direct to new private traffic Photo from 36Kr’s consumers to enter its new pool managed by a new KOC Weibo account private traffic pool character “Xiaomeizi小美子”

○ Perfect Diary has opened 30 offline stores in 2019, and is planning to have 600 stores in next 3 years. ○ The brand hopes 65% customers in offline stores are new consumers, who haven’t bought their products online. ○ By establishing offline stores, the brand aims at improving shopping experience and create new private traffic pool.

Source: http://www.ebrun.com/20191014/354301.shtml; www.daxueconsulting.com [email protected] +86 (21) 5386 0380 https://weibo.com/ttarticle/p/show?id=2309404454375778025703 CASE 3: SAM’S CLUB

RETAIN INDEPENDENCE THROUGH MEMBER-OWNED BUSINESS

Source: Zhang Chenzhuo, 74 © Copyright 2020 – Daxue SAM’S CLUB IN CHINA STARTED BUSINESS IN CHINA INDEPENDENTLY AND COOPERATED WITH JD FOR FURTHER EXPANSION

○ Sam’s Club is a world leading membership store, which serves more than 2 million members in mainland China. ○ It mainly focuses on deep developing regular buyers and improving membership renewal rate.

In 2018, Sam’s Club achieved 8% same-store sales growth in China’s market, with almost 80% membership renewal rate.

Online sales channels of SAM’s Club Self-owned channel Marketplace

Self-owned online store Brand APP JD JD Cross-border 2010 2014 2016 2017

Source: www.daxueconsulting.com http://www.chinadaily.com.cn/a/201901/24/WS5c491649a3106c65c34e63a [email protected] +86 (21) 5386 0380 9.html; https://36kr.com/p/5250546 75 © Copyright 2020 – Daxue MEMBERSHIP-CENTERED CRM ON DIGITAL CHANNELS FULL CONTROL ON MEMBERSHIP DATA

Log in page on brand- Membership connection Membership connection page on JD owned online store page on brand-owned APP

CONSUMERS

BRAND-OWNED CHANNEL Personal information MARKET PLACE CHANNEL

Traffic

WeChat Membership data & Membership data JD consumer behavior

Membership data Membership data & consumer behavior Membership Self-owned data & order MEMBERSHIP SYSTEM information Brand app JD cross-border online store

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 76 © Copyright 2020 – Daxue SELF-OWNED SHOPPING CHANNELS OF SAM’S CLUB SAMSCLUB.CN AND APP: ONLY SERVE MEMBERS

Delivery service Payment method Alipay, Bank Card, payment after delivery Ordinary One-hour delivery Global delivery service purchase Price One price for members

Sam’s Club Sam’s Club offline Bonded Warehouse offline store store warehouse After-sales service Shipment 1 day 1 hour 1-5 days Free returns & refunds within 7 days time

Specified area Specified area Delivery 3-5kms away from around offline around offline Special service offline stores area* stores stores Using the Bank of Communications card can get customers extra discount * Specified delivery policy on samclub.cn

www.daxueconsulting.com Source: http://www.samsclub.cn/1/ [email protected] +86 (21) 5386 0380 77 © Copyright 2020 – Daxue SAM’S CLUB FLAGSHIP STORE ON JD MAINLY OPERATED BY JD WITH PURPOSE OF BUSINESS EXPANSION

Services provided by Sam’s flagship stores on JD platform

JD self-operated store Flagship store on JD Global

Service provider JD Sam’s Club

Payment method JD Pay, Bank Card, WeChat Pay, Apple Pay, UnionPay

After-sales service DO NOT accept free returns & refunds within 7 days

Shipment time Within 1 day Within 3-10 days

Warehouse JD’s warehouse Bounded warehouse

Delivery area Country-wide delivery available (excluding fresh food)

Price Member’s price & ordinary price

Membership Integrate with Sam’s own membership system, JD + Sam Club double membership

www.daxueconsulting.com Source: jd.com [email protected] +86 (21) 5386 0380 78 © Copyright 2020 – Daxue REALIZING HIGH CONSUMER STICKINESS ON BRAND'S OWN CHANNEL SAM’S CLUB IS ABLE TO ENSURE PREMIUM SERVICE ON ITS OWN CHANNEL BY SERVING CONSUMERS DIRECTLY

(Excludes JD Global) Marketplace ✓ Only serves members.

✓ Only reaches consumers around Sam’s offline stores. Leverages platforms to reach more consumers, but cannot control the ✓ Provides higher quality after-sales service. quality of service and products. ✓ One-hour delivery available. V.S. ✓ Serves both members and non-members. ✓ Delivers most products from Sam’s offline ✓ Able to reach consumers all around the store to consumers directly. country.

✓ Mainly operated by JD. Reaches fewer consumers with high-quality service and products. ✓ Does not provide one-hour delivery service. ✓ JD keeps Sam’s Club’s products in its own warehouse, then delivers to buyers. Brand-owned channel Marketplace (Excludes Global purchase)

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 79 © Copyright 2020 – Daxue MEMBERSHIP COLLABORATION ATTRACTS MORE MEMBERS SAM’S STRATEGY ON INCREASING BRAND LOYALTY ON MARKETPLACE Benefits provided by double membership

Privileges of JD Plus membership Privileges of Sam’s Club membership Additional discount

✓ Discounts ✓ Coupons Welcome package from Sam and JD ✓ Exclusive service ✓ Free returns & refunds High-quality goods Special gifts within 7 days + selected by Sam’s Club + ... Annual membership gift

○ Doubled benefits help Sam’s Club persuade more consumers to become members. Consumers’ ○ Sam’s Club uses a collaboration strategy to convert perception on The double membership is highly cost- regular buyers on JD into brand’s own asset. effective. I got a lot of benefits! Weibo

Source:JD 2019 www.daxueconsulting.com [email protected] +86 (21) 5386 0380 80 © Copyright 2020 – Daxue INDEPENDENT SALES CHANNEL INCREASE BRAND VISIBILITY SELLING ON OFFICIAL SITE MAKES MORE CONSUMERS HAVE OPPORTUNITY TO LEARN THE BRAND

Total Visits of Sam’s Club official site in China

Walmart Sam’s Club

Visits: 415K Date: Nov. 2019

Visits: 180K Date: Nov. 2019

○ Sam’s Club’s official website in China has online shopping while Walmart’s site does not. ○ By selling to consumers directly on the official site, Sam’s Club’s site attracts 2 times more traffic than Walmart’s site. ○ Sam’s Club’s membership system ensures its website stable traffic volume in a long term.

www.daxueconsulting.com Source: https://www.similarweb.com/ [email protected] +86 (21) 5386 0380 81 © Copyright 2020 – Daxue SAM’S CLUB’S BRAND-OWNED CHANNEL HAS HIGH QUALITY SERVICES ENSURING MEMBERS CAN GET PREMIUM SERVICE THROUGH BRAND.COM AND BRAND APP

Ratings of Sam’s Club APP on APP Consumers’ perceptions of Sam’s Club’s Consumers’ feedback of Sam’s Club’s Store brand APP on Weibo flagship store on JD (Dec 12, 2019) 2 stars It’s very convenient to 1 star 3% buy fresh food on 13% I think the products sold in Sam’s Club’s offline 3 stars Sam’s Club APP. 5% store has better quality than JD flagship store. Total Displayed 4 stars Ratings 8% 5 stars I’ m disappointed with the delivery, it’s too 71% The delivery is fast. I made order on Sam’s Club APP and it arrived within half an hour. slow.

○ Most consumers are satisfied with the service and products provided by Sam’s Club’s brand APP. ○ Sam’s Club’s flagship store on JD is mainly operated by JD, and has received more complaints about poor service.

Source: https://www.appannie.com/; JD 2019 www.daxueconsulting.com [email protected] +86 (21) 5386 0380 82 © Copyright 2020 – Daxue SAM’S CLUB APP IS NOT ONLY A ONLINE SHOPPING CHANNEL BESIDES SELLING TO MEMBERS, IT ALSO PROVIDES RICH CONTENT

“Discovery” page Products promotion in post Shopping page

Buy now

There are regular recipe posts Stimulating purchase desire and Landing on shopping page on Sam’s Club brand APP. directing readers to shopping page. to complete conversion.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 83 © Copyright 2020 – Daxue CREATING WECHAT-CENTERED DIGITAL MEMBERSHIP DATABASE WECHAT IS THE ONLY CHANNEL FOR E-CARD MEMBERSHIP REGISTRATION

Official account homepage Posts Structure of Sam’s Club’s WeChat ecosystem

Posts Entrance to mini-program Official account Sam’s Entrance to flagship stores on JD membership Click to buy WeChat Entrance to official site Sam’s member’s center Mini-program WeChat store WeChat store Member’s center (only for members)

Sam‘s Club’s WeChat ecosystem aims at:

✓ Bringing traffic to other online shopping channels and boost sales. ✓ Providing convenient membership registration and activation process. • Existing members can activate e-card. ✓ Posting rich content to provide promotion information and • Non-members can create demand. register here.

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 84 © Copyright 2020 – Daxue CONSUMERS SEE SAM’S CLUB AS A WELL-REPUTED BRAND POWERFUL BRAND IMAGE CAN PROMOTE THE BRAND ORGANICALLY

Ads on variety show Public relation strategy on WeChat Consumers’ perception on WeChat

Without much effort on marketing, Beijing Shenyang 20k+ views Sam’s Club still has good reputation resulting from branding.

Shanghai Nanchang 20k+ views Excellent quality control makes Sam’s Club stand out in bulk purchasing.

• Sam’s Club collaborated with influential local • Sam’s Club gave space for a • Sam’s Club has a good reputation media on WeChat to reach their members in popular variety show. by offering high-quality goods. different cities. • It presented Sam’s Club’s • Sam’s Club is the top of mind when • Sam’s strategy worked quite well, with high view offline store in real scenario. people mention bulk buying. volume and engagement.

Sam’s Club has relatively less presence on media, it only runs promotion for new store arriving and sales promotion. Membership operating make Sam earns good reputation by offering high-quality goods.

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/Dk3YduRmU_Soa5Ej0UeG7A [email protected] +86 (21) 5386 0380 CASE 4: BEAST 野兽派

THE NICHE FLOWER SHOP TRANSFORMED INTO A WELL-KNOWN PREMIUM BRAND WITHOUT ONLINE MARKETPLACES

Source: INS@thebeastshop_official 86 © Copyright 2020 – Daxue BEAST 野兽派 STARTED AS AN INDEPENDENT BRAND STEPPED INTO ONLINE MARKETPLACES LATER

Beast is a homegrown brand in China, products include followers, clothes, cosmetics, and furniture. Though a young brand, Beast has explored an effective sales system in China.

Sales channels of Beast

Self-owned channel Marketplace Weibo thebeastshop.com Offline store Nov. 2011 2012 2013

Tmall JD Brand APP WeChat store 2015 JAN. 2016 OCT. 2016 2017

Source: https://baike.baidu.com/item/野兽派/23779192; www.daxueconsulting.com https://baike.baidu.com/item/野兽派花店/10916447?fr=aladdin [email protected] +86 (21) 5386 0380 87 © Copyright 2020 – Daxue STARTING BUSINESS INDEPENDENTLY AS A NICHE BRAND BEAST ESTABLISHED ITS E-FLOWER BUSINESS ON WEIBO AND CREATED AN EXCLUSIVE BRAND IMAGE.

How did Beast run its business on Weibo at the beginning

Sold 2 main products Asked for 5 pieces of information Notice The store requests only this Beast’s Weibo store is an information from buyers experimental studio. It only serves consumers in Flowers Cheesecakes Reasons for buying and special requests Shanghai. Reservation should be made 3 steps to complete purchase at least 3 days in advance. Gender of the receiver Contact with the staff on 1 Weibo or through phone call Expected price Beast’s consumer-centered sales 2 Pay by Alipay strategy ensured the brand can offer Name and address of the receiver unique and customized service to a limited number of customers. Delivered by express 3 companies or brand itself Buyer’s contact information

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 88 © Copyright 2020 – Daxue EMOTION-DRIVEN BRANDING THROUGH WEIBO GETTING CLOSER TO CONSUMERS BY SATISFYING THEIR EMOTIONAL NEEDS.

Screenshots of Beast’s Weibo posts Viewers comments under posts

Sharing buyers stories on Weibo Builds emotional connection with consumers The brand shares images of the flower bouquets they have designed Drives viewers to comment and interact along with the anonymous story of the buyer. Improves brand awareness and allows premium price

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/6fFTKr04LberfRAky_xrsw [email protected] +86 (21) 5386 0380 89 © Copyright 2020 – Daxue STRENGTHEN BRAND IMAGE THROUGH BRAND EXTENSION BEAST INTRODUCED MORE FAST-MOVING CONSUMER GOODS TO MAKE THE BRAND MORE COMPETITIVE

Beast’s products category nowadays

Flowers and series products Other Products Beast’s emotional connection with consumers makes their new products have high acceptance level in the market

Household items Jewelry Through product segments extension, Beast successfully transformed from a flower brand into a lifestyle brand “Monet’s Garden” series Selling FMCGs helps Beast improve products brand awareness and brand loyalty FMCGs Gifts

Beast introduces a series of Beast Keeps expanding product category products for their flower designs to realize “second time growth”

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/6fFTKr04LberfRAky_xrsw [email protected] +86 (21) 5386 0380 90 © Copyright 2020 – Daxue IMPROVING BRAND AWARENESS DURING TRANSFORMATION LEVERAGING THE POWER OF IP, CO-BRANDING AND POPULAR CELEBRITIES.

Beast’s recent co-branding cases Beast’s cooperation with celebrities

Announcement post on Weibo Related topic on Weibo

#Beast’s endorser Li Xian#

Le Petit Prince TOM and JERRY (movie) X BEAST (cartoon) X BEAST Views: 190 M Discuss: 127 K

Beast announced their cooperation with Li Xian (popular Chinese actor) CIRE TRUDON in September 2019. (candle brand) PRADA X BEAST The brand raised topics and did a X BEAST series of posts on Weibo. The collaboration successfully Beast frequently collaborates with famous IP improved brand awareness. and brands to create new product series The brand aims at improving brand awareness in its extension segments like FMCG through co-branding

www.daxueconsulting.com [email protected] +86 (21) 5386 0380 91 © Copyright 2020 – Daxue FURTHER IMPROVE BRAND IMAGE WITH OFFLINE STORES CREATING AESTHETICALLY APPEALING STORES CLOSE TO CONSUMERS

Offline mini store – Little B Offline store - BEAST Consumers’ perception on Weibo

Beast’s offline store is so beautiful that looks like a dream. I feel comfortable there. Offline furniture store – Beast Home Beast’s offline stores emphasize providing exclusive experiences Each offline store is well-designed and has a unique theme In addition to flowers, Beast I just visited Beast’s offline store. It’s introduced new branches to sell so attractive that I don’t want to leave. other products

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/s5kHbIMt8UWi_uNFDJPGyQ, Weibo [email protected] +86 (21) 5386 0380 92 © Copyright 2020 – Daxue COOPERATING WITH MARKETPLACES TO EXPAND BUSINESS BEAST ENTERED ONLINE MARKETPLACES TO BOOST SALES AFTER CREATING A POSITIVE BRAND IMAGE

Beast’s flagship store on Tmall Sales volume on Tmall (Jan 2019– Dec 2019, million)

29.9 Li Jiaqi’s live- 11.11 stream shopping promotion festival + 18.4 12.12 13.6 13.7 15.1 13.9 14.4 New arrivals Video 12 shopping 10.3 9.1 festival 7.3 8.8 Live-stream + Christmas promotion

Latest events in store Top 4 best sellers After Beast entered Tmall in 2015, the sales of the brand had seen more than ten times rise in three years. .Tmall supported the brand to further extend new Beast’s successful branding strategy entering Tmall created large product segments anticipation. The high volume in sales would have been impossible if Beast did not already have a strong brand name.

www.daxueconsulting.com Source: https://mp.weixin.qq.com/s/fBGaw_ZcNT8sldQjdYPe0g; Maijia.com [email protected] +86 (21) 5386 0380 CASE 5: BOSIDENG 波司登

COMPLETE BRAND UPGRADE FOCUSED ON BRAND IMAGE

Source: Souhu 94 © Copyright 2020 – Daxue BOSIDENG AS A LONG-STANDING LOCAL BRAND, IT REALIZED BRAND UPGRADE WITHOUT RELYING ON MARKETPLACE

BOSIDENG is a Chinese brand founded in 1976 and is famous for high-quality down coats. BOSIDENG is now selling in 69 countries around the world, with more than 20 million consumers.

The brand encountered severe crisis from 2012 to 2015, but did a complete brand upgrade and revitalization with an effective branding strategy. The brand had more than 4 times profit growth since the revitalization.

Sales channels of BOSIDENG Self-owned channel Marketplace

Offline store Tmall flagship store WeChat store 1976 2008 2018

www.daxueconsulting.com Source: http://www.bosideng.com [email protected] +86 (21) 5386 0380 95 © Copyright 2020 – Daxue BRAND IMAGE IS THE CORE FOR ACHIEVING GROWTH INDEPENDENT BRANDING STRATEGY CAN SAVE A BRAND AND MAKE IT POWERFUL WHILE MARKETPLACE CANNOT

Operating profit of BOSIDENG (billion RMB, 2008-2018)

2 1.62 1.37 1.5 1.27 1.16 1.08 0.87 0.92 1 0.66 0.34 0.5 0.20 0.00 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

BOSIDENG crisis response The online marketplace had 2008-2009 2012-2015 brought a short-term boost in Reason of Influence from e-commerce, economic downturn, profit but brought new challenges. Global economic crisis decline overstocked products, out of fashion By focusing on the brand Improve supply chain management, introduce multi- development, the brand awareness Response Entered Tmall in 2008 channel retailing strategy, complete brand upgrade, make of BOSIDENG reached 93% among diversify promotions consumers in 2018. Result A short-term profit increase Successful brand revitalization

Source: BOSIDENG annual report; www.daxueconsulting.com https://baijiahao.baidu.com/s?id=1621611151103140106&wfr=spider&for=pc; [email protected] +86 (21) 5386 0380 https://mp.weixin.qq.com/s/Q0EYKP43nt_CSru9vv9LwA 96 © Copyright 2020 – Daxue SALES CHANNEL UPGRADE AND OPTIMIZATION IMPROVING BRAND IMAGE TROUGH SALES CHANNEL UPGRADE

BOSIDENG’s flagship store before upgrade Now we have better understanding on operating stores. Each store is an important port where brands can spread information, and it can greatly affect Vice president of customers' perception of the brand. BOSIDENG

BOSIDENG’s efforts on sales channel upgrade

Optimize channel structure layout BOSIDENG’s flagship store after upgrade Upgraded its e-commerce portals, which now account for a fifth of revenue Enhanced cooperation with mainstream offline channels like shopping mall and central business street Launched pup-up stores as supplements to flagship stores

Upgrade terminal image Improved the design of every offline store Transformed the focus of offline store from selling products to providing a place for experiencing products.

Source: https://mp.weixin.qq.com/s/6NQOEAc4ki1daHNYw0Et8A; www.daxueconsulting.com https://mp.weixin.qq.com/s/Q0EYKP43nt_CSru9vv9LwA; https://www.straitstimes.com [email protected] +86 (21) 5386 0380 97 © Copyright 2020 – Daxue PRODUCT UPGRADE AND INNOVATION IMPROVING THE DESIGN AND FUNCTION OF PRODUCTS

Upgrade product function Upgrade product design

Extremely cold series BOSIDENG X ATLEIN Antonin Tron the ex-designer of LV, Givenchy and other luxury brands

Cooperated with international Research institution for Hired talented designers around the world to improve the R&D to create more functional products quality of design, which was always a complaint of Improved material quality and production process consumers Collaborated with well-known artists and international designers to develop new series

Source: https://mp.weixin.qq.com/s/Q0EYKP43nt_CSru9vv9LwA; www.daxueconsulting.com http://www.bosideng.com; https://www.sohu.com/a/271932320_109170 [email protected] +86 (21) 5386 0380 98 © Copyright 2020 – Daxue IMPROVING COMMUNICATION WITH CONSUMERS INTEGRATING PROMOTION ON VARIOUS PLATFORMS INCREASES BRAND AWARENESS

Cooperating with KOLs and Sharing updates brand Holding show at the New Making good use of KOL advertising on Douyin news on social media York Fashion Week influence and fan economy

BOSIDENG’s WeChat Live-stream of the show was This short video was viewed account matrix ranked watched by 1.2 million people. almost 10 million times. first among all Chinese Related topics on Weibo apparel brands. reached 230 million views.

By having a new brand image, BOSIDENG aims at attracting young consumers again.

Source: https://mp.weixin.qq.com/s/pgxDa6SmimAqK8HHbYlbNw www.daxueconsulting.com [email protected] +86 (21) 5386 0380 99 © Copyright 2020 – Daxue BRAND INDEPENDENCE IS MEANINGFUL FOR ALL KINDS OF BUSINESS

○ For luxury brands that ○ For mass brands that pay ○ For brands that care a lot ○ Niche brands can ○ For brands that facing care much more about much attention on high about membership become famous without the need of brand high-quality and high-end sales number, it is also maintenance and high- entering the marketplace. upgrade, independent brand image than sales quality services, it is branding strategy can worthwhile to take brand ○ As an independent niche volume, brand independence into important to retain brand, emotional save a brand and make it independence is consideration in addition independence after marketing can help to get powerful while particularly important. to the close collaboration entering marketplaces. closer to consumers and marketplace cannot. ○ Brand independence can with e-commerce ○ Brand independence increase brand value. ○ Although e-commerce platforms. help brands avoid fake ensure brands have full ○ Apart from collaboration can help to boost sales goods issue and ○ Brand independence can control on membership with e-commerce in short-term, the guarantee good help brands effectively data. Therefore, brands platforms, brand improvement on brand reputation. convert public traffic into can further improve extension can be another image is still the core for ○ By running an a brand’s own asset, and service quality by having approach which can help achieving growth. independent business, gradually improve brand better understanding on brands increase sales as brands can build its own loyalty. clients. well as improve brand marketing ecosystem to awareness. get traffic and boost sales.

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