At present, Southeast Asia is undoubtedly an emerging and popular platform for cross-border e-commerce merchants, and many sellers are vying for the first layout. Among them, taking Shopee as an example, the average annual overall growth rate has exceeded 100%. Under the new trend of 2021, if Shopee sellers want to locate their stores accurately, lay out their product lines, and succeed in the emerging blue ocean market, it is very important to understand the types, positioning, advantages and disadvantages of the stores in Shopee.
Shopee is a platform dominated by shop types. There are currently 4 types of shops on the platform.
1. Department Store
Because Shopee does not limit its operations, for example, sellers can also sell auto parts and bags while selling women's clothing. This is a department store. The characteristics of department stores are: there are all types of products, what are good for sale, but there is a lack of correlation between the products, which is common in the original sellers who are good at operating Amazon and become Shopee.
Advantages: The category is not restricted and can form a larger volume.
Disadvantages: It is difficult to form related sales and fan precipitation, and it is difficult to form a brand premium, which makes buyers feel professional, which is not conducive to retaining users and improving conversion.
2. Orientation based on product type
Stores that focus on selling a certain category, such as power banks, home furnishings, storage, and so on.
Advantages: High professionalism, easy to accumulate fans and repurchase. The common origin sellers include Chenghai Toys, Shenzhen 3C, and Guangzhou Women's Clothing.
Disadvantages: The stronger the brand concept, the higher the repurchase and viscosity requirements for fans.
3. Crowd type
Revolve around a group to meet various needs, such as 25-35 year-old professional women or mothers, for this group of women will provide multiple categories of things, such as maternal and child products, women's clothing, bags, and even office supplies, as long as they conform to the type of lifestyle It can also be a positioning.
Advantages: It is easy to bring high-related purchases and high customer unit prices, and the loyalty of fans is relatively high.
Disadvantages: The integration capability of the supply chain is relatively high.
4. Positioning of lifestyle
This concept was put forward earlier by Chinese brand sellers, which is somewhat similar to the type of crowd. Based on a certain lifestyle, for example, Xiaomi meets all the product needs of buyers around all aspects of life.
Advantages: Companies similar to Xiaomi can help brands form a very high ability to purchase repurchase and related purchases.
Disadvantages: The average small and medium sellers cannot do it, and the barriers to competition are relatively high.
The layout of the 4 product lines in Shopee stores
After knowing the location of the store, the seller should start to make choices and determine the type of store that their store wants to do. But no matter which positioning style is adopted, the layout of the product line is inseparable from the following aspects:
There must be drainage money in the store. What is drainage money? In the big category, single link traffic accounts for a relatively large amount, the competition is very high, and the drainage ability is very strong. Even the traffic brought by a single link can account for 10%-20% of the overall traffic, which is the store's drainage money.
2 hot models
There is still a profit on the basis of the drainage money, which is a hot money. It is able to issue orders stably, the evaluation is better, and the after-sales ratio is also relatively low. The more such links are created in the store, the better.
In this kind of platform based on the store-based operating strategy, profit is not based on a certain link, or a link alone, but on a more holistic perspective to think about whether the store is profitable in general. It may not be very profitable for the diverted money, but relying on the long-tail profit money to allow the entire store to do cross-subsidy to achieve the best profit.
4 positioning models
Many sellers have rarely heard of positioning models. For example, when you visit luxury stores such as LV, you will see that there is a bag of millions of dollars placed on the threshold of the window. When you enter the store, you suddenly see a bag of 10,000 or 20,000, and feel that it is much cheaper. Bought it. This is the positioning model, which is actually a value of rivet efficiency. When the positioning model is placed in the window, it will cause buyers to misunderstand the price of other models, which may promote the sales of drainage models, profit models, and explosive models.
In addition to these payments, if the seller wants to go deeper, they will have to extend the activity payment, clearance payment, etc., and even some other directions in the future. After making a good plan, for example, drainage money accounts for about 15% of the store, and profit money accounts for 60% of the store. Identify the positioning of your store, do a good job in the layout of store products, combined with the refined operation under the guidance of big data, so that the store can better find its place in the ever-evolving and increasingly competitive Southeast Asian market.