[100 Challenge] DanJi’s reading note_91

The Birth of a Platform Empire and the Future of Branding
Kim Byung Kyu
Publishing of Future Chang Co., Ltd
Published on September 15, 2021

There is an active discussion on large platforms like Facebook with solid market dominance. Platforms connect consumers and businesses and provide many benefits and convenience that everyone has never seen before. However, these are also companies. To maximize profits, we try to make the most profits by subordinating other operators. I want to explain the risks of large platforms and introduce brand strategies against them. I hope you will be of little help in leading the massive platform in a more desirable direction.
In 2020, the proportion of online transactions accounted for 33.4% of the total sales of the Korean consumer goods market, growing 18.6% W from the previous year. The emergence of online platforms was in 1994, when Amiron of the United States began selling cities online, and in 1997, when Interpark, the first e-commerce company in Korea, appeared. Compared to department stores and hypermarkets, it was 46.5% in 202. In 1999, 44.7% were dissatisfied with online transactions because of insufficient product information and an extended delivery period. After a few years, this complaint was resolved, and consumer satisfaction was directed toward providing product information through YouTube for same-day delivery. The complex online payment system was simplified, and FinTech improved security. The simple payment system led to an increase in consumption. Due to Corona, it played a decisive role in advancing the online era. Consumers' purchase decision-making goes through four stages: need generation → information search →, selection, → purchase.

Baedal Minjok chose not to charge a fee. He gave up 10 billion won. As a result, a lot of retail has flowed in. Instead, it increased sales by 67% due to the advertising fee of 'flagging.' Advertisements expose the product to the top and generate visitors.
The best invention in the platform era is the 'catalog.' It is a business device that puts multiple sellers on one product page to induce competition among sellers and subordinate sellers to the platform, not by seller category.
It exposes only the lowest price to the top, allowing sellers to compete for the lowest price. Starting with Amazon, Coupang and Naver are copying it. The best way to counter the platform is to become a brand that satisfies the psychological needs of consumers. 1. Prize_ I am respected 2. That I belong to somewhere. 3. Specialness_I am different from you. 4. Control_The owner of my life is me.
Everyone wants what's essential, but we should have scarcity so no one can buy it. You should prioritize your relationship with your customers over your immediate interests. Refunds should be made easily and quickly. It would help if you visited frequently due to the channel's interest. Price volatility should be lowered. It would help to make the lowest price a negative signal—price reliability. Provide enough information and value high-quality products.