In 2020, the scale of China's digital economy was 39.2 trillion, and its contribution rate in GDP reached 38.6%. At the same time, the potential of digital consumption has increased year by year. The Compound annual growth rate (CAGR) of China's online retail sales has reached 16.1% in the past five years, which occupied an important position in the total social consumer goods. The scale of digital consumption is increasing year by year, and the contribution rate of online retail sales in social consumer goods is nearly 30%.
The development of retail has driven the application of technology. On the other hand, factors such as operation, cost, and the pandemic have also changed the operation of owned media. The highest development stage of owned media is the digital intelligence transformation. With the help of digital architecture, intelligent technology can further empower insights, marketing, and operations to achieve corporate growth. According to iResearch, the current core competitiveness of businesses are huge active members (80%); good online and offline interaction (67%); good brand image (60%); good brand partnership (60%) and experienced operations team (57%).
The Pain Points of Growth
1. Lack of a mature and complete methodology system - there is a lack of comprehensive talents in the team.
2. Limited by the ecological and technical environment of the field - as the marketing and operation costs are high, the data return is not optimal and it is difficult for the brands to achieve growth with the platform.
3. Lack of overall planning leads to system redundancy or overlapping tool utility.
4. The operational objectives are complex with multiple challenges to execute.
The Growth Strategy
1. Platform selection: Decentralized platforms have data transparency and ecological advantages.
2. Tools: Clarifying requirements, overall planning, technical service provider functions, owned media construction
3. Re-operation: Focus on Customer lifetime value (CLV), build a quantitative target system and make good use of intelligent modules.
4. Channel: the digitalization of owned media.
The inherent advantages of data assets and application are the basis to upgrade experiences and refine operations to achieve long-term business value. Besides, the decentralized platform has both traffic and technical constraints, thus it is important for brands to digitize owned media. Last but not least, the future technology will help to improve prediction and decision-making.