Why is digital transformation a new leap in the mother, baby and child industry?

Mondo Technology Updated on 2024-01-30

At present, digitalization has begun to be applied in many industries and has become an important part of the entire economic activity, especially in the maternal and infant retail industry.

According to industry experts, 70% of the growth of the maternal and infant industry market in the future will come from the maternal and infant service industry, rather than a simple retail entity industry.

In other words, only by fully embracing digital transformation can enterprises win the future growth of the mother, baby and child industry. As a leading enterprise in the maternal and infant industry, Kid Wang is well versed in this.

On December 18, the "2023 Kid King Global Partner Conference and 1218 Children's Fan Carnival Ceremony" was grandly opened in Nanjing. With the theme of "Different, Make Collaboration More Valuable", the summit brought together more than 1,000 mother, baby and child brands and hundreds of industry experts to discuss the opportunities and challenges of accelerating the transformation of the mother, baby and child track.

Among them,Digitalization has become one of the most frequent words mentioned by the child king.

[Digitalization is not a technical problem, but a user experience].

According to iResearch, by 2025, the ratio of online and offline consumption of mothers and babies in China will be about 4:6. Although online channels and offline channels have their own irreplaceable advantages in terms of product experience and services, the boundaries between the two are becoming blurred.

In other words, the future battle for mother, baby and child retail must be a "global battle", and the "winner" of the whole domain is digital capabilities.

Different from other mother, baby and child enterprises, Kid King is an enterprise that focuses on business and innovation around user needs by "managing customer relationships".

At the summit site, Xu Weihong, co-founder, CEO and chairman of Leyou International, said that at the beginning of its establishment, Kidwang defined all resources with users as the center, including employees, stores, products, etc., and always adhered to the principle of "user-centric, to users, and from members".

The value of Kid King is equal to the sum of the user's emotions, so the user-centered is the starting point and end point of all the work of Kid King.

It is also based on this that since its establishment, KidKing has opened a unique road of mother, baby and child chain stores, and has now entered 200+ cities in 21 provinces and cities, and opened more than 500 large-scale digital stores. After the acquisition of Leyou, the total number of stores has exceeded 1,000 (direct sales).

At the same time, in the 14-year incremental market, Kidwang is accelerating the expansion of offline stores, while grasping online dividends and quickly laying out online platforms, including apps, mini programs, communities, etc.

After years of accumulation, the number of members of Kid King has continued to rise, and the number of members has reached more than 90%, and the number of 26,000+ communities has been established, and the number of fans of the content matrix of the whole network has exceeded 10 million.

Not only that, in order to better meet the distribution needs of the huge customer group, KidKing also plans to build 5 smart logistics industrial parks, and self-developed five major systems to achieve full-time **, full-link visibility, as well as collaborative warehouse sharing and full ecological integration.

At the summit, Xu Weihong revealed that Kid King is also the only enterprise in the maternal and infant industry that covers the national integration, collaboration and digitalization of the 3-level warehouse network system.

As a heavy membership company, Kid King uses the membership system to achieve the ultimate in the single-customer economy.

Over the years, KidKing has always adhered to the heavy membership model, and created a complete set of "single customer economy" model from "interaction produces emotion - emotion produces stickiness - stickiness brings high output value members - high output value members influence potential consumer members by word of mouth", and promotes it in the whole business system.

After more than 10 years of operation and precipitation, Kidwang has created a digital membership operation system, with a total of more than 62 million users, 50 million + users, more than 10 million community users, and more than 98% of member sales.

Xu Weihong said about thisDigitalization is not only a new technology, but also a high-latitude user experience. This is also the driving force for the user-centered child king to adhere to digital transformation.

As the world as a whole enters the Internet era, digitalization has become a hot topic in society. For a long time in the past, digitalization has been frequently mentioned by countless enterprises, institutions and even individuals. However, how to achieve digitalization and how to make digitalization benefit the development of society and people's lives has become a difficult point.

Some enterprises carry out digital transformation, but the actual effect is not satisfactory, the core reason isDigitalization is not a technical problem, but a user experience problem.

To achieve "digitalization", we need not only technological progress in cloud computing, artificial intelligence, and big data, but also the construction of infrastructure, and the change and improvement of the entire social systemIt is more necessary for the company's way of thinking to make progress first

And in the process of this progress, the "user-centric" child king has obviously taken a different path.

[Digital ability is the foundation of the child king's "born different".

In the past few years, the store form has changed from "small and beautiful" to "large and complete", from "deep single retail" to "strong retail service integration", and from "buy when you have goods and come casually" to "select and carefully select, professional empowerment" The sales model has changed ......The mother, baby and child industry can be seen everywhere "incremental innovation" and "leap innovation".

But in the midst of this, the child king is a new species from birth, and has always remained "born different" in the course of years of development.

What is the reason behind this?

At the summit site, the child king gave the answerOr digital

Within Kid King, the relationship between goods and users, employees and users, and users is not a simple weak association, but a customized relationship, a relationship between consultants and fans, and a strong association between rookies and hot mothers.

How to link users with strong relationships

With emotion as the link, Kid King pioneered the operation model of "goods + service + social", and realized the evolution from selling products to the ecosystem of "service + social".

Xu Weihong mentioned that "the essence of business is traffic, and the essence of traffic is content", with commodities as the center, and the boundary of products and services is categories;User-centric, the boundary of products and services is the needs of users.

In order to meet the needs of users for exquisite baby raising and create users' emotional value, KidKing uses stores as the carrier and adopts the strategy of one store with multiple scenes and one chain with multiple scenes to create an "unbounded & accurate" omni-channel, full-range and full-scene operation model, realizing digital full-scene coverage from place to scene, from function to experience.

Xu Weihong said that based on this digital scenario, KidKing has the best solution for user operation, brand operation and category operation, which has promoted the increase in the proportion of high-end members of Kidwang, which has reached more than 70%.

This is a precedent in the mother, baby and child industry.

Digitalization is driving dramatic changes in consumer behavior. In the past few years, KidKing has continuously improved its digital capabilities, moving from digital to intelligent, and is the first data-driven and customer-based innovative parent-child family omni-channel service provider in China.

From relationships, content, scenarios to digitalization, every innovation of KidKing has almost subverted the business logic and business model of traditional mother and baby stores.

The digitalization of the child king is the digitalization of all factors of production;The digital child king is the unique child king.

[From digitalization to digital intelligence, Kid King opens a new chapter of growth].

For many people, the term "digital intelligence" may feel unfamiliar. However, when the term "digital" is mentioned, almost everyone knows it.

In the eyes of many people, digitalization and digital intelligence seem to be similar things, and there is not much difference between the two.

In fact, digital intelligence and digitalization are two completely different conceptsDigitalization is a technical concept, and digital intelligence belongs to the industrial application of digital technology. Although the two are related, they are not the same in nature.

In the digital era, the retail industry has accelerated its restructuring, gradually transforming from a channel as the king of the market to a consumer-led people, and many practitioners said, "The competition in the stock market is better based on consumer preferences than competing for an order or a temporary share, and digging deep into the potential increment." ”

How to compete for speed in the blue ocean and depth in the red ocean?

To a certain extent, KidKing is stepping over digitalization and fully embracing digital intelligence.

This year, Kid King has made a comprehensive layout of the live broadcast business, and carried out online live broadcast sales on multiple third-party platforms such as Douyin and **Meituan, opening up the conversion link between online grass planting and offline consumption.

For example, 24-hour uninterrupted live broadcast in Meituan's live broadcast room through "Digital Human Live" can automatically reply to questions and interactions, which not only improves the efficiency of live broadcasting, but also optimizes the real-time experience of users. At the same time, AI comic photos and AI cute photos have also received the love of the majority of users, and the company continues to increase AI construction to meet the different needs of customers.

In June this year, the self-developed "AI Parenting Consultant Model" KidsGPT Intelligent Consultant was launched, which was put into application in multiple scenarios such as the KidsKing app, mini programs, and communities, effectively broadening the boundaries and depth of parenting consultant services and improving management efficiency and operational benefits.

At this summit, the child king said that in the future, it will focus on three aspects: expanding categories, expanding tracks, and expanding business formats, and in 2024, it will win the three must-win battles of children's life halls, non-standard battles, and city battles.

Among them, the expansion of categories is from mother and child to all ages;The expansion of the track is to move from a single lane to a ten-lane track;Expanding the format is from a self-operated large store to a multi-scene format.

Xu Weihong said that it is building an ecological platform, establishing a new strategy of "global preferred differentiated ** chain + local parent-child growth service + instant retail in the same city", and building an ecosystem of higher quality service users.

Taking the same city instant retail as an example, Kid King focuses on the same city business, independently develops the same city instant retail full-link digital system, and has successively launched products such as one-hour delivery, city-wide delivery, and half-day delivery, with a timely order fulfillment rate of 99%, which greatly improves the convenience of user shopping. To this end, the child king shares various resources such as scenes, digitalization, and ** chains with the allies.

In this way, the child king has achieved a leading position in the maternal and infant industry.

The next few years will be the window period for enterprises to accelerate their digital and intelligent transformation. A group of leading thinking and action enterprises will take the lead in seizing this round of rush window to comprehensively improve their digital intelligence capabilities, so as to obtain intergenerational competitiveness beyond their peers.

A new era of digital and intelligent revolution is coming, and this summit also allows us to see that the child king has plugged in the wings of digital intelligence, moving from platform to ecology, driving the improvement of member value, empowering merchants to grow strongly, and embarking on a unique user-centered "single customer economy" road.

In the future, KidKing will focus on the vision of "building a new ecology of industrial wisdom, becoming the preferred service provider for Chinese parent-child families, and being the king of Chinese kids", and sail towards a new channel of growth.

end——Welcome to pay attention to [China Business Taoluo], know the people, and read the legend of Taoluo.

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