Tencent Smart Retail Released T+ 2021 Ranking

On April 11, Beijing time, Tencent Smart Retail released the “T+ 2021 Ranking”. It is reported that the “T+ 2021 Ranking” covers ten industries and is the first annual value list in the Chinese industry to comprehensively measure the business status of brands’ private domains.

On April 11, Beijing time, Tencent Smart Retail, a business of Chinese Internet giant Tencent, released China’s first industry-wide “T+ 2021 Ranking”. In the beauty and cosmetics segment, many cosmetic brands such as Armani Beauty, Clarins, Estee Lauder, YSL Beauty, Forest Cabin and CHANDO made the list.

Private traffic is a field that is directly owned by a brand and can be repeated at low cost or even free to reach users. This means that companies can build stronger relationships with customers with private traffic and continue to accumulate customer data to deepen their understanding of customer needs, and thus help increase conversion rates.

In the private traffic environment, customer stickiness is enhanced and trust in the brand is consolidated, which will bring a multiplier increase in customer unit price. Moreover, the private traffic also breaks the previous limitation of single-point customer repurchase. Through the sharing mechanism, the repurchase can be continuously fissioned. The private traffic can multiply people by the previous one person spreading to the surrounding family and friends bringing 10 times or even 100 times.

Chang Yue, Vice President of Smart Retail Marketing of Tencent, said, “Private traffic is like a heart that can continuously provide momentum for the digital operation and growth of the whole traffic. After defining the strategic positioning of private domains, companies can combine their own situation to extend, implement in a structured way and adhere to long-termism, which will definitely reap a new value. We believe that the endgame of private domain is a new business model of integration of the whole domain linkage.”

In addition, according to Tencent’s disclosure, the daily activity of users of WeChat mini programs exceeded 450 million in 2021, and the physical transaction volume of merchants’ own businesses doubled year-on-year. The GMV of mini programs in the beauty sector with Tencent’s smart retail cooperation achieved 100% growth in 2021, and the need to develop private traffic has become a consensus in the beauty industry.

In today’s increasingly fragmented and diversified information access channels, the decision chain for consumers to build awareness of brands, research them in depth and generate purchases is no longer linear. The importance of private traffic is becoming more and more prominent because of its better user experience, which can help beauty brands better improve the key aspects of “social” and “experience”.

As a more mature sector, many beauty brands and retailers have already explored very diverse and efficient ways to play private traffic.

In 2021, LA MER has unified its goal, linking multiple internal core departments EC, CRM and CE to collaborate and build private traffic from none to start, achieving 38 times growth in the number of 1V1 exclusive enterprise WeChat and 7 times growth in the number of community members, perfecting the brand business growth point, and increasing the total UV of brand small programs by 190% and business volume by 85% for the year.

As a world-renowned beauty and personal care retailer, Watsons has implemented the O+O platform strategy to break through the limitations of O2O in the past and precisely reach customers through its network of over 4,100 offline stores in China and online platforms such as applets, communities, BA corporate WeChat, service assistants and video numbers exceeding 40 million people.

The CEO and senior management of the company are also active in the front line of private traffic operation for a long time, which is a visual manifestation of the “importance of private traffic construction”. For example, in early February 2020, the outbreak of the epidemic caused heavy losses in China’s offline stores. In order to achieve the closure of stores without closing down, Sun Laichun, chairman of Chinese essential oil skincare brand Forest Cabin, personally went into action and led thousands of store guides to live-stream the mini program together. While the company also placed WeChat ads in the moment to impel the transaction in WeChat Corporate. New customers can click to buy through the Wechat ads. After the transaction and then customers are led to add accounts of WeChat Corporate, coupled with the regulator customers’ online repurchase. In this way, Forest Cabin’s performance is shining in the quarter instead of decreasing.

Beauty brands that operate in private traffic should first abandon the thinking of selling goods first and need to adhere to the people-oriented creating value for consumers is the core. Secondly, the beauty brand to do a good job in the private traffic has to run through the entire life cycle of consumers, interlocking, that is, to make the user as followers, followers to make value and value for all the time.



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