After you have built your own product pool, you also need to conduct data analysis of the product selection target, which is the “product selection report” we often use. The general product selection report does not cover much information, mainly including the following aspects: global market overview (industry size, ceiling and future development trends), internal reference data of competitors (brand distribution, sales data and competition intensity), keyword data (core word search volume, core word sales and CPC bidding reference), product differentiation plan (customer pain points, product defects and solutions) and Listing cost accounting (FBA cost, marketing budget and input-output ratio ROI). Next, I will share with you the report analysis and process of the target product through a previous real case. The target product is Wet Bag (diaper bag) and the target market is the United States.
Product Selection Report Brief
This report is based on the classification analysis of the products in the baby category of the US site. The overall category belongs to rigid demand products. Most of the 2nd, 3rd, and 4th level categories have no seasonal restrictions, and the demand fluctuations are not large. Especially in important e-commerce festivals such as PRIME DAY in the middle of the year and the end-of-year shopping season, the performance is better. Although the popularity is not as hot as the 3C electronic category, the market capacity is large.
Category Demand Trend
First, let’s take a look at the demand trend of baby category products. The baby category covers a lot of products, such as baby diapers, strollers, travel equipment, safety equipment, etc. Through SEMRUSH keyword query, the demand data of the baby category can be judged. The total number of searches on the entire network is as high as 3 million times, the United States accounts for 20%, and the relevant SERPs have reached about 4 billion.
At the same time, we use Google Trends to confirm the popularity trend of baby category keywords. The search trend index has remained at a high level of 75~100 in the past year, with almost no fluctuations.
Then use Statista’s data to look at the sales rankings of the second and third level categories in the baby industry. Obviously, the sales share of Diaper (children’s diapers) is far ahead in the classification.
Seeing this data, we began to think that Diaper’s sales volume is so large that we need more information to prove whether it meets our “product logic of finding a blue ocean in a red ocean”. We used Google Trends to confirm the popularity of keywords. The trend is stable, and the search trend index is between 75 and 100, with little ripples.
But we used Google to query Diaper’s brand search trends, and the situation is not optimistic.
It is obvious that global well-known brands have long firmly occupied the monopoly position in the industry, with many brands and good reputation. Although the demand is strong, differentiation is not small, and the operating costs are increased in the stage of fierce competition, which raises the threshold for us to enter the target market. Therefore, we adopted a roundabout strategy and gave priority to Diaper’s peripheral derivatives, such as Wet Bag, that is, dry and wet bags.
So, next we use Google Trends to continue analyzing the sub-category of Wet Bag (wet and dry bag). Wet Bag can sometimes be counted as Diaper Bag or Diaper Wet Bag. We can see it after searching with Google Trends. The search trend has some fluctuations, but it is generally stable.