It’s a place where increasing your bet from 1M to 10M doesn’t necessarily improve your odds.
(just your stamina)
The road before you can be loud, crowded and vast beyond all imagining…and budgeting is tricky.
As a friend once said, “you’d have better odds if we fly to Macau and bet it all on black”
How can you avoid the trappings of bad advice?
How can you improve your chances?
I think “mirroring” works best. You can figure out what’s working now by doing two things:
1) Talk to folks who OWN the channel
For a beauty brand, Tmall category managers swear by the allocation in this handy graphic.
2) Talk to folks who OPERATE in the channel
TPs or distributors will share a cost structure not unlike the one trumpeted by Tmall.
This model isn’t pretty on the margin line, but realistic for non activated brands launching in Tmall’s hyper competitive beauty category.
And it also holds true from our experience launching a few dozen stores OUTSIDE beauty.
So if you can validate a budget across channels, partners and competitors, you definitely have a seat at the table.
Ready to buy in?