When the traditional ‘supporting actor appliance’ water heater meets the post-90s generation, what kinds of product demand will be sparked? Will external aesthetics attract motivated decorators? Will robust functionality conquer the ‘hardcore’ tech geeks? Or will sales and discounts entice price-conscious consumers? During 6.18, what ‘sales magic’ powered the post-90s cohort to generate a GMV in Tmall water heaters exceeding industry averages by 50%, and the average transaction value to increase by 50%?
Facing the mysterious post-90s generation, the water heater industry has had poor performance. Even though consumer search of different varieties has grown over the years, the average transaction value has remained low, products have been mismatched with consumer preferences, and products specifically designed for the post-90s generation have sold poorly. To solve these issues, Illuminera was honored to partner with TMIC (Tmall’s new product innovation center) and Tmall Industries to work with the premium water heater brands Midea, Haier, Guangdong Macro, and Vanward, activating demand in the post-90s consumer cohort and increasing purchase price in the category. In the short term, the strategy saw quick implementation and application during 6.18, with 90% of the top 50 sellers for the post-90s generation coming from one of the four brands empowered by Illuminera; in the long term, the brands will be continually benefitted through product updates and preference matching.
Using C2M Reverse Customization to Satisfy Individualism and Differing Demands
Using the TMIC digitalization platform to conduct C2M reverse customization, Illuminera investigated consumer demographics, gaining insight into the consumer-product relationship in the post-90s generation. Analyzed consumer demographics include living habits, spending habits, purchase mindset, and special characteristics of consumers, accurately understanding the core needs satisfied by the product. This produces sales tactics that are customized by different consumer groupings. The ‘distance’ between the brand and its point of sales is decreased, solving the disconnect between the traditional home appliance industry and its consumers, providing the maximum potential in individualization and differentiation of products.
Applying Design Mindsets and Behavior Economics to Invent New Sales Tactics
Illuminera’s thought framework combined economic principles and design innovation, gaining insight on the true influencers on consumer decisions. Special sales strategies were designed for differing consumer needs, combining pricing and product strategies; sales recommendations took into account product function, appearance, price, and all other aspects. As a result, the 6.18 water heater marketplace also saw new sales tactics differentiating new products and concepts without the use of traditional discounts.
Cooperation with Multiple Players in the Market Pushes Long-Term, High-Efficiency Application of Sales Strategy
This is the first time TMIC/Tmall Industries worked with individual ISVs. Through influencing product innovation and early route to market, a pricing war is avoided, increasing compatibility between products and consumers, thus improving industry performance and creating a healthy and orderly competitive environment.
During 6.18, Tmall’s water heater industry hosted a health-themed special session. Four water heater producers used the sales tactics and consumer needs from the project to adjust communication, sales, pricing, and discount strategies towards the post-90s generation. At the same time, major brands followed up with project finding to redesign products targeted towards post-90s, with the products planned to launch next year. Through these achievements, Illuminera has helped brands win in both short-term sales strategy application and long-term product design application.
This is Illuminera’s first successful case of rapid brand growth, rapid insight, and organic development in cooperation with multiple industry brands. We believe this new sales and promotion model will achieve the same results in other industries and markets, leading a new sales revolution.
Notes：
1. 1. From Tmall Industry and TMIC data on the water heater industry through 6.18
