C2M IS GAINING MOMENTUM IN CHINA
Traditional manufacturers (OEMs & ODMs) in China are increasingly moving upstream and launching their own consumer brands and products - with many applying a tactic known as “C2M” (customer to manufacture).
C2M is a process where manufacturers use the ever-growing set of data about audience preferences and behaviors, to rapidly develop and launch innovative, new products. “C2M” inspired products are designed quickly and are often very personalized (or niche-specific), so for the manufacturer it means creating more customized products, each at lower volume. By contrast, established brands, acting as middlemen, are; (1)slow to respond to changing customer interests, (2)prefer to justify product designs (via focus groups) after-the-fact, and (3)have entrenched preferences toward fewer product designs aimed at ‘average customers.’
Brands like Perfect Diary and Maia Active are great examples of C2M brands in China. Customer insights gleaned from RED and other channels can spur immediate product design decisions - and continued monitoring allow them to fine-tune each product iteration. Alibaba, JD, Pinduoduo are deeply involved a facilitators, helping new (and traditional brands) use big data and AI to aid in product development decisions.
Brands’ digital transition powered by E-commerce date
Computer brand ASUS turned to JD.com when developing its new gaming laptop. JD provided critical insights - specifically about GenZ audiences.
JD’s analysis of the GenZ “gamer” audience yielded three important insights;
(1)they wanted better screen resolution, (2)the audience were big fans of Anime, and (3)RMB6,000 was the prime selling price. The result from ASUS was a gaming laptop with upgraded e-sports screen, and an Anime figure as the product ambassador.
With JD’s suggested retail price point, it was the most popular laptop in the RMB6,000 range, and became the best selling gaming laptop on JD.
Customers co-create the solution they want
Abby's Choice developed its signature product Baby Milk Bottle in response to social media feedback. By engaging with customers early (on RED) in product development the brand was able to both; (1)learn from its audience about needs/preferences, and (2)create engagement and trust, which helped propel the launch.
OEMS getting into the game
Traditional OEM manufacturer Roaman turned to Alibaba when it decided to develop its own-branded products. Big data from Alibaba provided insights on product functions, color preferences and on marketing opportunities. Roaman sold 100k units upon launch of its electric toothbrush.
