How to turn millions of fans into millions of dollars in sales? Two brothers from Germany taught a lesson for many online celebrities.
1. What is Fragrance One?
Fragrance One, a new perfume brand in Germany, was founded by two brothers Jeremy and Kamil Banc in 2017. Now its business is worth millions of dollars, and Shopify is the main selling platform.
(screenshot of fragrance one's official website)
In 2014, brother Jeremy started his own YouTube account with perfume as the theme. This also laid the foreshadowing for the following events.
Jeremy gained more than 60000 fans in the first four months, and then reached 1.4 million in just a few years. Now, his YouTube account has 1.54 million subscribers, with only 50% of the number in the second place.
(screenshot of Jeremy's social media account)
You know, the difficulty of YouTube operation in 2014 is the same as now. Unlike other bloggers in the way of composition analysis, brand story and spontaneous Association, Jeremy is unique. He will walk to the street and ask passers-by: 1-10 points, how many points do you want to play for this perfume? That's what makes him different.
(video screenshot of Jeremy's social media account)
Brother Kamil is a start-up employee. He discovered his brother's advantage in the perfume market, and it is clear that the celebrity effect alone will not push the development of personal life. On the contrary, many online celebrities on instagram and Youtube look beautiful, but their life is actually very difficult. If it is in the United States, in most cases, there is no medical insurance, which is equivalent to unemployment or freelancing. Once you stop working, you will lose all sources of livelihood and support.
So he founded Fragrance One together with Jeremy.
(Fragrance One product)
Looking at the world, the market for perfume competition is quite fierce, according to the Grandviewresearch survey. In 2018 alone, the global perfume market was US $31 billion 400 million and is expected to grow at an annual rate of 3.5% from 2019 to 2025. In the United States alone, the perfume market is expected to reach $10 billion in 2021..
(screenshot of Grandviewresearch website)
Fragrance One can take a certain market share from it. I think it can be carried out from three dimensions: traffic channel, product quality and user operation.
In New York, fragrance one cooperates with a local organization, mainly in the paid advertising column, including Google keyword search, Tiktok and so on. But every time Jeremy's YouTube account posts a video and mentions Fragment One, or the brand official creates marketing activities such as competitions, the role of all paid advertising is not worth mentioning.
Social media traffic is the main support point of their business system, which can be seen from the traffic source of their Shopify website.
Nearly half of the traffic comes from social media, and the proportion of direct access to the official website is as high as 24.85%, which shows its brand's position related to perfume labels in users' minds.
In its social media traffic composition, YouTube accounts for the absolute majority, 96.61%, and the traffic of the other top five platforms is less than a fraction of the top, which shows the absolute role of Jeremy's YouTube account. Even so, nearly one-fifth of Fragrance One's traffic comes from search.
However, most of the traffic comes from free keywords and does not generate search costs, as shown in the figure, the top five keywords.
2. Product quality
With regard to fragrance one's products, they always pay attention to three aspects: bottles, raw materials and flavorers.
Needless to say, they chose the best manufacturer to produce bottles and raw materials. In terms of the quality of perfume itself, Jeremy has many years of experience in the perfume industry, so he is the product creative director. In addition, they invited the Michael Jackson Alberto Morillas of perfume industry to mix perfume with them.
(on the left is brother, on the right is brother, and in the middle is perfume Master).
If you don't know Alberto Morillas, google it.
3. User thinking (key core)
Compared with the role of perfume account of Jeremy in the beginning of Fragrance One, I think Kamil's user thinking model is the key for Fragrance One to continue to exert influence and maintain user support in the competitive perfume industry.
Kamil explains the core idea of the product this way: to make it very easy, simple and effective for users to buy the fragrance they need in a specific situation. Remember this sentence, it will be the core reference for all their subsequent actions.
First of all, what kind of shopping can be called easy and simple?
The answer is: don't give users too many options and guide them to find the answer.
Just like wine, there is a dazzling array of wines in any corner of the supermarket, and they are arranged side by side according to taste, degree, origin, etc. It is difficult for users who do not understand wine to choose for a while. Therefore, Fragrance One's solution is to have fewer categories and high quality, without entanglement.
They have a total of 6 fragrances, each with 1-3 Skus. There are also two candles and a deodorant (from the Men's Office Collection).
(they only have 6 fragrances).
4. What is effective shopping?
Of course, it can help customers solve problems after buying, which is effective shopping.
The question is simple, but why does Fragrance One do it and the other bosses can't?
The problem is that few people are willing to explore the needs of users from their original intentions.
For example, if a user says, I want a fragrance that suits me, or a fragrance that I like, in fact, its potential meaning is: I want others to praise me, and I hope to be favored by others. So Fragrance One tells customers: This is a fragrance that will make you complimented.
(A group photo of the two brothers)
5. What is the need in a specific situation?
This is the core gameplay of Fragrance One. They help customers choose a scene, such as an office, and they have created a series called "Men's Office". From this series, Fragrance One allows users to easily imagine the smell
and the applicable situation of perfume. After that, they created series such as "Men's Dating" and "Men's Black Tie".
(Fragrance One series name)
6. What have they done with user thinking?
1. Crowdfunding campaign (questionnaire)
They ran a crowdfunding campaign on the site and ended up with nearly $1 million in sales at a time of 1.4 million YouTube subscribers.
This is also a way of verification. Kamil found that the user did not smell this perfume, he sold such a high volume of sales. This illustrates the problem: users do not come for taste but for certain purposes.
Fragrance One uses the form of questionnaire to show the user's questions on the questionnaire, which not only dispels the user's concerns, such as quality, transportation and other issues, but also answers the user's questions, such as use scenario, maintenance time and so on.
(fragrance one product)
They would combine products based on themes, such as on holidays like Valentine's Day or International Women's Day, or the dating scene, where the "Men's Date" and "Women's Dark Nights" fragrances would be sold together. There is also a scented candle called "Movie Night", as well as a combination of "Men's Date" and "Ladies' Dark Night" candles.
Relatively speaking, the price of perfume is high. After the combination, due to the low cost of specific materials in the perfume industry, the price will be reduced accordingly, so it will be more attractive to users to buy.
(fragrance one product)
3. Loyalty Program
When Kamil talked about user retention, he highlighted Smile Rewards, a third-party Shopify plugin. He believes that this plugin plays a very important role in user retention. Let's analyze it below.
(Shopify app store screenshot)
Its biggest and core feature is: it is convenient for merchants to issue discounts or coupons and other benefits to customers according to their actions. For example, guiding users to place orders, comment, like, register, etc., you can use this plug-in to track customer behavior and send benefits to help improve the repurchase rate of users.
According to Kamil, Fragrance One has a repurchase rate of nearly 35% by fostering relationships through interactions, discounts and loyalty programs.
(Shopify app store screenshot)
The four packages of Smile Rewards are suitable for merchants of different levels. The free version has few features, the PRO version is too expensive, and the two middle versions have more suitable features, which are insufficient but more than the bottom. Readers can choose according to actual needs.
7. How to transform from an internet celebrity business to an enterprise?
If you talk about the starting point, Kamil's words are fundamental: If you can use your influence to do something meaningful and sustainable, it will be a great thing. The younger brother Jeremy also agrees that the
Making money through traffic is still the ultimate vision of most Internet celebrities.
If the reason for the successful transformation and gradual development and growth, I think it is due to the division of labor between the two. Jeremy focuses on the product and keeps polishing it; Kamil is in charge of the market and the operation of the business. They both fully respect each other's work, such as Jeremy, who describes Fragrance One as a brand that wants to take customers through a "perfume jungle" (because there are so many fragrance brands). This idea is strongly supported by Kamil.
Jeremy is a creative and spiritual guy. Sometimes he is very excited and even wants to give discounts to customers, but Kamil will persuade to take care of those users who bought at the original price not long ago, and also need to consider their feelings, and his brother will also Listen to advice.
8. End of Story
Aside from the cooperation of brothers, the development of YouTube business to enterprise does have a great advantage in terms of traffic in the early stage. The fans of bloggers can easily become fans of brands. This is the charm of social media.
How to improve the conversion rate of fans? How to retain users? How to improve the repurchase rate is the more critical factor that determines the longevity of the brand. The status of user thinking is extremely prominent, and any brand cannot be ignored.
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