According to the data, China has become the second largest mother and child products market in the world. By 2020, China’s mother and child consumption market will reach 3 trillion RMB, and it will maintain a high growth rate of 20% to 30% in the next 10 years.
Since 2009, Kidswant has gained good reputation from many people in the industry and from the consumers. According to the latest authoritative survey data, the brand touch point of Kidswant in provinces and cities has reached nearly 80% without any hint.
On December 18, 2018, at the “Grow++” 2018 Kidswant China Mother and Child Industry Leadership Summit, Kidswant demonstrated its achievements in the layout of digital stores, deep exploration of single customers, digital development, ecological business and organizational structure in the country in 2018. Up to now, there are over 5 million fans of ” Kidswant” Wechat subscription, 15 million people installing its App and up to 5 million registering its Wechat minimini program, and it has entered the top 100 of Aladdin List. Full channel members have broken through 24 million, and with “scientific and technological power + humane service” as the core, it has created a comprehensive digital and service pattern of online and offline integration. In 2019, Kidswant indicated that it would break through the scale of 10 billion RMB, with a compound annual growth of more than 100%.
Kidswant positions itself as a data-driven, customer-relationship-based and innovative new family full-channel service provider, with 260 stores ranging from 3000 to 5000 square meters in more than 100 cities across the country. These stores were upgraded to full-channel digital stores in 2018. Every store manager, called the general manager of the store, in addition to running a physical store, also runs a digital store in the Internet world where there are both goods and services. In the physical stores, there are store managers and childcare consultants; in the digital world, there are digitalized and personalized store managers and childcare consultants. In addition to APP, there are also new media such as Wechat minimini programs and e-commerce malls available for the members to get services 7×24.
Then, how does Kidswant make such amazing achievements by new retail? Perhaps we can see the essence and development direction of mother and child retail.
Online and offline dual-drive to create a unique new retail
In order to stand out from China’s mother and child industry, Kidswant took the initiative to embrace the new retail. For the mother and child industry, online marketing is not so applicable, because the users of mother and child products prefer to go to offline physical stores, which is not only a more intuitive experience of products, but also a way to accompany children. Therefore, the most important function of Kidswant’s online channels – APP and Wechat Mall, is not to sell, but to communicate and interact with users.
The core of Kidswant’s new retail model is the membership system. Online and offline integration is the carrier of Kidswant’s new retail model, which means physical stores provide super-large stores and rich product lines, divert non-material needs to the online, communicate more with members and provide customers with more satisfactory and precise marketing services to stimulate customers’ desire to buy.
By creating value for customers, meeting customer needs, attracting customers to become members, and then improving membership loyalty through online and offline interaction, this is the new retail service model built by Kidswant.
With the help of Wechat mimi program, online empowers offline, achieving connection and integration
In the past 2018, the connection with Wechat’s product capability became an important initiative for Kidswant to collect big data offline and improve precise marketing through all channels.
Firstly, Kidswant lays out a mini program based on stores and shopping malls, which includes the functions of sweeping check-in, inquiring about discounts & coupons, experiencing sweeping purchase, showing membership cards conveniently and paying by Wechat for free gifts etc., which makes it ready for use immediately after sweeping, penetrating the whole process after customers enter the store. Secondly, it makes use of Wechat’s social attributes, putting the tools such as bargaining, lottery, group buy and marketing tools of other eight major communities in its mini program, breaking through the full link sharing, online and offline connection and integration.
In order for users to use digital tools in stores, Kidswant also collects offline data through Wechat Payment and mini program, which also benefits the store’s precise marketing.
On one hand, through offline Wechat payment, in-store code-sweeping to get coupons for immediate use, exploring customers in the surrounding stores and precise touch to reach the store, it achieves multi-scenario closed-loop marketing both in the stores and outside the stores by enhancing Kidswant stores big data acquisition capabilities. On the other hand, through the new user label brought by Wechat payment, it makes the portrait of Kidswant members complete. At the same time, it acts on SMARTkids precise marketing in Wechat moments. Combining the ability of mini program, it can get traffic both online and offline, promote deal close and energize the brand’s smart marketing.
Hanshow ESLs are used in Kidswant’s stores to display online and offline commodity information synchronously. Customers can experience the application of scanning code through Kidswant’s mini program or APP.
Offline Smart Store’s Three Elements of Digital Establishment: Scenario, Content and Relationship
Kidswant’s CEO Xu Weihong has spoken publicly about his understanding of new retail – a data-driven pan-retail format with user experience as its core. He indicated that the four elements of scenario, content, relationship and digitalization determine whether an enterprise can make it in new retail.
Scenario. There are many scenarios in every new family. In these scenarios, there are scenarios of contacting with childcare consultants, participating in interactive activities organized by stores and scenarios of commodity demands. In each scenario, Kidswant builds a contact point, which is Kidswant’s products. These products may be a store, a childcare consultant, an APP, a Wechat group or a Wechat mini program.
Content. In the above scenarios, Kidswant provides the corresponding content, which is a service content, maybe a product, a story-telling service or some insurance financial services. Through these products and contents, a certain relationship has been established with consumers, and ultimately this relationship has formed Kidswant’s business.
Relationship. Starting from the scenario and content, constantly establish relationships and turn them into composable and detachable services by digital ways. There are three links in the commodity transaction – order, pay and deliver, but through digital ways, many kinds of experience can be realized. For instance, orders can be placed in stores, but payment is paid on mobile phones, goods are delivered through third-party logistics from large warehouses.
With the launch of the 7th generation of new digital growth service stores, Kidswant’s new retail practice gets better and better. According to the introduction, the 7th generation of smart stores rebuilt the relationship between stores and consumers based on sophisticated big data system and full channel operation, which is a smart scenario integrating shopping, emotion, social interaction and experience.
It is reported that the “scan-code-to-buy” function of Kidswant APP has been used in nearly 250 stores across the country. In Kidswant’s brand-new smart stores, this function is more comprehensive:
When a consumer enters a store and scans a QRcode, his/her membership can be quickly identified. Childcare consultant will receive the identity and information of the member to provide precise service for him/her. After entering the store, members can inquire about the details of goods through APP or touching terminals in every corner of the store, and use “scan-code-to-buy” to scan Hanshow’s ESL to place orders. The function is not finished yet. Members can also scan to place orders at home and choose to take what they buy in the stores or the stores’ fast door-to-door delivery service according to their personal habits.
Kidswant’s Digital Product Development Director says that the online advantage is to provide more global offers and quality content services, while the offline focuses on experience and interactive services which cannot be replaced by online. Stores get customers through social features such as mini program’s bargaining and group buy, and eventually guide them to the stores for pickup. The lucky money activities initiated by the stores need the help of friends in social media, which makes it return to the online. The connection and integration of online and offline is what Kidswant has been doing.
The application of Hanshow ESL in Kidswant stores successfully gets traffic online, and makes it possible to generate and collect customer’s consumption behavior data in the physical store.
Membership system: with customer relationship management as the core
Kidswant has been always exploring a new business model, which takes “managing customer relationship” as the core business philosophy, members as the center, commodities and services as the core. Kidswant has innovatively practiced the industry leading business model of “commodity + service + social interaction”. Through deep exploration of members’ big data and customized consultant full-scenario service and contents, a highly-loyal membership relationship has been established, realizing multiple points of profitability of commodity sales, membership fees, virtual products and value-added services etc..
Specifically, Kidswant applies big data technology to the App named “person-customer integration”, a member management tool for childcare consultants. In the “person-customer integration” system, thousands of people can be labeled by big data, such as consumption quota, second child, membership points and membership, connecting with CRM and supply chain data, and even checking bonuses and salaries. Childcare consultants can quickly check the total number of members, paid members, key members and non-consuming members etc.. They can get access to the list of members and send reminder messages and coupons through one click in the system, and can also offer one-on-one service; employees can directly serve customers without racking their brains; the system also has plenty of childcare knowledge for consultants to check at any time and serve customers.
In addition, Kidswant’s membership management is also reflected in:
- Classifying and Grading Members
Kidswant classifies and grades members according to their standard needs. Through big data analysis, Kidswant can precisely and effectively send product information that meets their needs at certain stages, including categories and quantities of products, and send info of appropriate interactive activities to better meet the diverse and personalized needs of members at different ages for commodities, services and interactions, satisfying customers proactively and creatively so as to improve the value of a single customer. The company has also developed the RFM model to classify the value of different types of members so as to carry out precision marketing.
- Membership Value Added
Childcare consultants use the tool of “person-customer integration” to manage their members in a unified way. Through effective classification and data analysis, they can provide more targeted value-added services for their members, optimize the allocation of company resources and better strengthen the emotional relationship between members and childcare consultants, thereby increase the amount and frequency of a single consumption of members and further increase the value of a single customer, practicing the business strategy of “operating customer assets”.
- Membership Feedback
Kidswant pays attention to building the ability to learn from customers and improving the insight into consumer needs. Each store arranges one or two member seminars once or twice a month to actively collect members’ feedback, understand members’ feelings and needs for products and activities, and tap members’ potential needs so as to better provide quality services and interactions for members.
It is learned that each store does an average of 1,000 activities a year (adjusted to 768 after 2016), i.e. at least three activities a day, in order to promote the continuous participation of new members. This also adds an important indicator to the appraisal of the stores: the quantity and quality of the activities completed. Such KPIs make the store manager pay more attention to these things: how about the completion of the activities, how much the conversion rate, how about the status and motivation of employees, and how about their knowledge and expertise?
The conversion rate of each activity of Kidswant can reach almost 100%, which means as long as you come to participate in the activity, you are basically absorbed as a member of Kidswant. In Kidswant’s definition of membership, only consumers who shop in Kidswant are counted as members. In this way, the conversion rate of each activity is also very high. Activities are marketing, and marketing generates profits – this is Kidswant’s core profit model of “customer relationship management”.
Through a profound analysis of Kidswant’s new retail model in an easy-to-understand way, we can see that the essence and development direction of mother and child retail may lie in the interaction with customers and services. Whether dazzling ways online and offline, or using Hanshow ESLs in stores to create digital scenarios, whether big data analysis of customer preferences, or unique and novelty experience in smart stores, ultimately we need to return to the nature of mothers and children – for the growth of children. From the very beginning, Kidswant takes the membership as the center, commodities and services as the core, and accompanies the growth of children with heart and soul. Eventually, Kidswant has broken through and become the pioneer in the industry.