Alibaba Membership System: What Opportunities Can It Bring To High-End High-End Fashion Brands?

In the fierce competition of high-end clothing

Fashion brands obviously need more loyal members. What inspiration can the new membership system of Alibaba bring to them?

Guangzhou, China, is 3 months away from the "double 11" this year. The Alibaba first released a big move -- officially announced the new 88VIP membership plan in August 8th.

Among them, including the shrimp music, Youku, hungry, panning tickets and other lifestyle platforms in Ali system, as well as Gap, La Perla, Levi 's, Versace and other 150 thousand brands of Tmall, 88 of the domestic and foreign brands, and jointly provide a series of compound interests.

The news was announced on the day of Guangzhou's "love unlimited" concert for members.

(Chris Tung) after the performance of Tmall's spokesperson, the super member plan was read out.

"Members like Tmall international to buy good products all over the world, and catch up with the trend of the world in the sea, looking for quality assurance. Double 11 is no exception."

Dong Benhong said, "88VIP involves more than shopping. It includes eating, listening and watching, and consumers are standing at the most important center of Alibaba economies.

The original intention of our design is to hope that only a virtual card can take care of all the needs of life.

Alibaba CMO Dong Benhong (Chris Tung)

It can be added to the "88VIP" at a price of 88 yuan, which is the middle and high-end consumer group of Taobao's super members who amount to 20 million.

They need naughty values to reach more than 1000 points, while mischievous values are comprehensively evaluated by a series of complex indices, such as purchasing power, interaction and participation.

This group of people is obviously the main consumer in the Chinese market at present, with young people and women in the majority, and for brands, they mean great commercial potential.

According to the monitoring data of the consulting firm Erie, users aged 19 to 24 become the largest user group of the current e-commerce platform, while the group with a higher level of networking and a 85 preference group prefer Taobao to other groups.

Jeffrey Towson (Tao Xun), an investment management professor, believes that the emergence of Alibaba membership will have more impact on the brands that focus on market segmentation.

"Membership system has little impact on high frequency and fast-moving consumer goods such as cola, but if it is a brand that relies on high net worth people, if Alibaba locks this group of people, then the brand needs to pay attention."

Towson said.

"More importantly, the current membership system is aimed at middle and high consumer groups, but this may be just a short-term strategy. In the long run, Alibaba will allow more consumers to integrate into the system."

If brands are also seen in the long run, they will also have the opportunity to integrate into the wider consumer groups and further take root in the Chinese market with the change of Ali membership system.

Towson believes that in this rapidly changing consumer market, Alibaba, which seems almost impossible to get back to its original investment, is a good business strategy.

"In the Chinese market, discount is still the most effective marketing strategy. Although there are additional services such as Youku and shrimp, the discount that Alibaba wants to promote is that the discount can enhance user stickiness and let consumers stay in Alibaba."

For those fashion brands, continuous optimization of online marketing strategy means new business opportunities.

According to the analysis of China Electronic Commerce Research Center, China's online shopping market is very mature.

In 2017, the scale of China's online retail market reached 54806 billion yuan, up 28% over the same period last year, accounting for about 15% of the total retail sales of consumer goods.

Brands obviously need to find new breakthroughs and growth points.

Many of the candidates were selected.

Brands have been competing for a long time in the rapidly competitive fashion market and the high-end high-end fashion market. The key to their occupation of the market is rapid and timely response, which is closely related to the dynamic adjustment of demand.

Gap, after co operating with Alibaba last year's super brand, found that consumer loyalty and repeat purchase rates have increased. This year, 88VIP has joined the plan.

Gap electric business director Chen Li said that joining the 88VIP membership program in addition to attracting American style.

The new customers who are interested in quality are also a kind of feedback to the old customers.

"During the 88 member Festival, 88 members contributed nearly 1/4 visitors to the Gap official flagship store in Tmall. The conversion rate of 88 members is significantly higher than that of other visitors, which fully proves the value of 88 members."

Chen Li said.

It is reported that Gap plans the next global online business to reach US $3 billion.

Gu Huizhen, chief executive of Skechers, an American sports leisure brand, has also found that 88 members can help brands bring richer product lines to the Chinese market and spread the brand's California lifestyle.

"The spirit of this activity is pushing new products, because after 618 major promotion, we find that the trend of summer products and prices can no longer satisfy consumers' demands, so we hope to provide consumers with more benefits in autumn and winter new products with this activity."

Gu Huizhen said.

Similarly, as one of the 88 member brands, Levi 's also tends to promote its operation strategy to promote new products and weaken online discount marketing.

Its China strategy is slightly different from the American market with historical baggage. Levi s realized that it should try to downplay its Cowboy brand image so that it could grab more market share.

"Localization marketing strategy, localization design and products, satisfying customer service experience are the panacea for the Chinese market."

Nicolas Versloot, now the outgoing Levi 's, former managing director of Greater China, told BoF.

"If we add all channel experience, it is our ultimate vision."

At present, if the brand can further open up 88 members and its membership system and improve marketing efficiency, there will be more room for imagination in the future.

"Take a practical example. In May of this year, Tmall and Lancome released a new eye cream. They gave the cream to the super members for a month. At the same time, they also made a special gift box for them, providing various services such as eye SPA online." after that cooperation, they became the first place in the whole eye cream market.

Duan Ling, head of Ali 88VIP project, said.

This means that for brands, their marketing ideas need to be pferred from traffic to fine and deep marketing.

It is worth noting that the Alibaba has adjusted its membership standards.

What is the reaction? In Towson's view, it is difficult to judge the effect of the first edition before it has enough feedback from consumers.

"Consumers feel that this product is cool, not cool, is a reliable criterion."

Dowson said.

In addition, the biggest challenge for brands is how to attract members' attention on this huge platform and meet their competitors.

"Alibaba will continue to do this Party, and ask whether the brand is willing to join, and the brand often needs the data support provided by it.

In other words, if you are Zara and H&M joins, then H&M gets the data advantage.

Dowson said.

"When Chris (Dong Benhong) is facing the brand, his description will talk about that Alibaba provides new products proving ground by providing consumers insights, making more money for brands, and many brands will pay for it."