BONO "Pseudo-Multi-level Marketing" Model Challenges PPG's One-year Profitability

BONO obviously wants to give birth to the apparel e-commerce market, but it has to be different from PPG. The most important topic of what kind of approach is adopted is, at least for sure, that it is certainly not a wise move to repeat the opponent’s platinum-like advertising bombardment when PPG has taken the lead.

“We are often in conflict with advertisements, but will gladly accept recommendations from friends and acquaintances.” For Shanghai Baotuo Textile Technology Co., Ltd. (BONO), it plans to use interpersonal marketing strategies to maintain one in the next three years. Stable consumer groups.

BONO is a latecomer to men's e-commerce and has the background of a wholly-owned subsidiary of the Anniversary Group, the fourth men's apparel company in the domestic suit industry. At the beginning of its debut, BONO aimed at Shanghai Phi Phi Knitwear Co., Ltd. ("PPG"), hoping to learn and surpass its competitors who are believed to have created a new legend in the traditional apparel industry.

On January 15th, BONO formally launched the first phase of the "BO Love Action" network charity bazaar. The event, which was declared to have spent 80 million yuan, lasted for 3 years, and throughout the "personal marketing" strategy, consumers bought and recommended products through word of mouth and rewarded them.

To catch the public interest express train is to increase the bargaining power of BONO's online marketing. Explaining with the words of Gao Feng, the deputy general manager of BONO, it is "to spend the least money, buy the most valued clothes, and at the same time to make a contribution to society."

BONO hopes that this idea will attract more white-collar customers and will surpass PPG in market share as soon as possible. The selling method is different from PPG.

“The influence of word of mouth is very strong. When a good seed is spread through a good way, it can often achieve a more profound effect than advertising.” Peak said.

For BONO, the reason why it chose the interpersonal marketing model, based on the following two reasons: Men's wear products have achieved a higher standardization, the target customer base attaches importance to each other's exchanges and to draw opinions. The high level of product standardization makes it possible for consumers to purchase online, and the white-collar “netizen” status as a target will make them more willing to accept recommendations from others.

"After we are convinced of the prospects of this model, we must think about how to use technical means to do a good relationship model." Peak frankly.

"BO Love Action" is the first step that BONO tries to take. According to the "BO love action" rule, consumers only need to recommend friends to become new BONO users, or friends recommend each other to buy goods, you can get the corresponding virtual cash, enjoy shopping privileges, but also can put the benefits into public donations. The greater the number of referrals, the more money they receive.

For consumers, this looks like the temptation of “nothing more than a profit”. When all the interpersonal networks are intertwined, a huge network of people will be formed, which BONO wants to see.

This way people think of "MLM." Gao Feng explained that this time, BONO's marketing activities have been approved by relevant departments, and the activities themselves are essentially different from MLM.

He explained that in the BO Love Action, the recommender was called "BO Guide" and the recommender was called "BO Scholar", but the relationship between BO Guide and BO Scholar is not fixed, and the "up and down" relationship between them is not. Only once, that is to say, after BO has bought BONO products through BO guide recommendation, it will no longer be the recommender of BO. There will no longer be a relationship between the two. The next purchase of this BO will not be counted. In the rebate of the previous BO guide, this is not the same as the fixed relationship of MLM companies.

Some people call this type of interpersonal marketing a “pseudo-hyberonymization,” and in BONO’s view, this approach can provide the fastest results on the premise of saving advertising marketing costs.

The interpersonal network will be slow at the initial stage of development, but when the breakthrough bottleneck and more good seeds are involved, the expansion of the relationship network will increase at a geometric multiple.

“We expect to establish a relatively complete user-relationship network within 3 years. Once this group of consumer organizations is formed, it will often be very reliable and solid.” Gao Feng said that this kind of precise interpersonal marketing is also conducive to collecting and controlling. Users more real information.