Launched in 2017, Hey Box of Alibaba’s Tmall is designed specifically to provide new product release marketing solutions to brands. 50 million new products were released on the Tmall platform in 2018. Over 1.3 million new products from over 500 brands recommended by Tmall Hey Box to targeted consumers were eventually purchased, with a total transaction value of over 40 billion yuan. New products launched via Tmall Hey Box are supposed to become best sellers and hit the industry benchmark from zero in 30 days.
You can also read the full story from CIW eBook here.
In order to successfully introduce new products, it is important to find effective ways to impress targeted consumers. The characteristics and advantages of the new products shall be clearly conveyed and endorsed through live streaming or short videos by KOLs so that consumers can learn whether they provide better experiences or have better designs and decide if such new products are worth buying.
Selling new products through a discount strategy is no longer effective, and Tmall’s Hey Box just meets the needs of brand owners in this aspect.
After realizing that there was no existing sales channel that was specifically designed to roll out new products on the market, Tmall launched Hey Box in order to help brands better introduce new products to their target consumers.
This team consisting of only over a dozen members delivered very satisfying results: currently, over 60% of the globally well-known launch their new products on Tmall. In 2018, the number of new products introduced achieved 50 million, close to 10 times compared to 2 years ago.
For brands, growth is only a secondary; the most important factor is that Tmall’s Hey Box is helping them reach the younger generation of consumers and capture the future market.
If you are a fan of a certain brand, and you like buying new products, then you may be immediately attracted by Tmall’s Hey Box when you open your Taobao Mobile or Tmall Mobile App. You will find Dyson’s Airwrap, and limited edition of Yeezy shoes as soon as you touch and enter the Hey Box page. These are products that the team of Hey Box recommended to you precisely, according to your tags and shopping behaviors.
Two years ago, Xun Xiu, who was in charge of Tmall’s Super Brand Day, sent several employees to investigate the pain points of brand owners in their new product release. Three months later, on March 23, 2017, the Hey Box function was officially launched, designed specifically to provide new product release marketing solutions to brands.
In 2018, there were 50 million new products released on the Tmall platform. Not all, but only and exactly those that the user wanted the most, were recommended to them. Over 1.3 million new products from over 500 brands recommended by the Hey Box to targeted consumers were eventually purchased, with a total transaction value of over 40 billion yuan.
The Super Brand Day showed brand owners the excellent marketing capabilities of Tmall and paved the way for the subsequent Hey Box function.
Tmall’s Super Brand Day is positioned as the “Double 11 Festival” for brands and is held once a year. New products are vital to brands. Brands release dozens or hundreds of new products each year. However, the promotion of new products is not easy, and can not rely on discount sales. Therefore, a separate business unit is needed to satisfy the demand: this is the reason why Hey Box was born.
The needs of Chinese consumers are changing rapidly and constantly. Brands need to be dynamic and flexible, in order to observe consumer demands and polish their products in granular competitions. Luo Jia, general manager of Tmall’s Consumer Platform Business Unit, said that Tmall is not only a transaction platform; its greater value is to provide brands with a broader vision into the future through data, analytics, and insights.
Since the launch of the Hey Box, the number of new products on Tmall has grown nearly ten times. More than 60% of the world’s leading brands chose to release their new products on Tmall. In 2018, over 50 million new products were released on Tmall targeting 75 million consumers, which is larger than the population of the UK.
Login below or subscribe here for the full article.