Last Friday, Kuaishou E-commerce held its annual Gravity Conference. It announced the business results of the previous year and also released the strategic direction for this year.

Xiaogu, senior vice president of Kuaishou and head of Kuaishou e-commerce business, said that the strategic direction of Kuaishou e-commerce this year is “four major events”. Among them, Kuaishou E-commerce proposed in July last year to “build a trustworthy e-commerce”, “build a brand”, “build a service provider”, and upgrade from the “big industry belt” at the end of last year to a “big brand”. .

This channel is based on “trust e-commerce”. The Kuaishou E-Commerce Department was born in February 2018 and was born out of the real “old iron” culture. The products mainly come from “real” small and medium-sized factories, wholesale market vendors, stall owners, etc. The latter are like “acquaintances” that users know, and users also buy based on their trust in them, which lays the foundation for Kuaishou e-commerce to “trust e-commerce”.

“Trust e-commerce” is also the biggest feature of Kuaishou e-commerce – rival Douyin e-commerce calls itself “interest e-commerce”, and users mainly make purchases based on interest in content – and trust also brings user loyalty, which means With better private domain traffic and repurchase. This together constitutes the characteristics of Kuaishou e-commerce.

Although the earliest merchants are real, they are mainly self-produced and self-sold “white cards”, which cannot meet all the needs of Kuaishou users for “trust”.

Therefore, two years later, “big brand” has become Kuaishou’s “second growth curve”. Xiaogu said in an interview with the media, “I think there is only one transformation in the strategic level of (Kaishou e-commerce), that is, we started with the industry, and then the B-end began to move to brand goods, in order to cover the needs of more users.”

However, this is still not enough to meet all the needs of Kuaishou users for e-commerce, so this year Kuaishou e-commerce proposed a new “big brand”.

“Fast brand” is between the white brand and the brand, it is better than the white brand, but it does not reach the real brand. It’s actually another trusted offering. The screening criteria for “Fast Brands” are “high-quality merchants with content capabilities, business capabilities, repurchase capabilities, and private domain capabilities.”

“Big brands and fast brands. The reason why they are all big means that they will definitely play an important role in the transaction scale of the overall e-commerce market (Kuishou).” Song Zhen, head of Kuaishou E-commerce Kuaishou Brand Say it to Geek Park.

In 2021, the total turnover (GMV) of Kuaishou e-commerce will reach 680 billion. According to a report by LatePost, Kuaishou E-commerce has set its GMV target range this year at 900 billion to 970 billion yuan.

The old road of Kuaishou e-commerce – expanding the supply of brands and meeting the needs of old iron, seems to be inevitable.

01 How to expand brand supply

Facing the supply of different brands, Kuaishou has different support policies.

For example, for the “fast brands” in the initial stage, they are already potential brands with their own supply chain capabilities, “they will pay attention to whether the platform has given them a strong endorsement, which is a great opportunity for merchants. A very important driving force.” Zhang Yipeng said.

It can be said that Kuaishou gave them the endorsement of “Kai Brand”.

The name seems to be closely tied to Kuaishou, “Quick, as the name suggests, it also means Kuaishou.” Song Zhen said. Indeed, Kuaishou brands are “grown in the Kuaishou e-commerce ecosystem”, and they must also “use Kuaishou as the core business channel” and be “long-term operators with high willingness to invest in the Kuaishou platform”.

In addition, Kuaishou also announced that it will provide 23 billion+ bonus traffic to support the “Kai Brand”, and strive to cover 100 million old irons. In 2022, Kuaishou’s goal is to support more than 500 benchmarking Kuaishou brands.

For brands that are already well-known at the mass level, they may not need Kuaishou’s endorsement. Kuaishou’s sinking market new crowd and private domain traffic are enough to attract them. This is a stable operating environment that is profitable in the longer term.

Last year, Kuaishou introduced 1,200 industry vane brands, including Coca-Cola, L’Oreal, Adidas, Coach and other international brands. Among them, 61 brands have a GMV of over 100 million, and 33 brands have a GMV of over 50 million.

This year, Kuaishou’s goal is to build 330 brands with a business turnover of over 100 million, and achieve a brand business scale of 100 billion.

If the three major business entities of Kuaishou e-commerce are S brand, M merchants, and K talents, then Kuaishou e-commerce also has a corresponding service provider system. Among them, MCN serves K talents, industrial belt service providers serve M merchants (including fast brands), and brand service providers serve brands.

As of the first quarter of this year, Kuaishou E-commerce has 90 MCN service providers, 30 industrial belt service providers, 500 merchant service providers, and 140 brand service providers. Kuaishou expressed satisfaction with the growth data of service providers.

Next, Kuaishou’s goal is to continue to expand the scale of service providers and improve their capabilities. Through “big service providers”, “big brands” and “big brands”.

02 How to win the trust of the old iron

Since the beginning of 2021, Kuaishou E-commerce first proposed the “trust” strategy when formulating its annual plan, and its cognition of “trust e-commerce” has become more and more clear.

Xiaogu said that the first layer of “trusting e-commerce” is to control counterfeiting, the second layer is to do a good job of consumer rights, and the third layer is to improve the experience price ratio – this is a unique concept proposed by Kuaishou E-commerce. It includes both cost-effective and experience.

Ma Hongbin, senior vice president of Kuaishou and head of Kuaishou commercialization, said that the source of Kuaishou’s vitality comes from the old iron culture that represents real life. These sinking users in the third and fourth tiers will pay more attention to the price of goods, or the price ratio.

But the price/performance ratio does not mean “cheap”, but mainly “feeling cheap in terms of experience”.

Zhang Yipeng gave the example of Haitian soy sauce. Haitian Soy Sauce did a live broadcast with sales of 5 million yuan in Kuaishou. Compared with the 39.9 yuan per customer price of the Tmall flagship store, its best seller in Kuaishou was a ten-piece set of 59.9 yuan. Despite the higher price, the sale “actually gave the old iron a more favorable perception.”

The experience is more expressed as a “choice service”, that is, it can meet the aesthetic needs of users, allowing users to buy their favorite products and feel better and more comfortable.

Zhang Yipeng also talked about the example of Yanghe wine. Yanghe’s best seller in Kuaishou’s live broadcast room is its high-end series M9, with a unit price of over 1,200 yuan. However, through factors such as content, gameplay and other factors, Yanghe gave Laotie a “strong decision-making factor that can recognize where Yanghe is good at this moment and why he placed an order now”. As a result, “Laotie broke out. The purchasing power is very, very strong.”

Kuaishou e-commerce shows the highest emphasis on “trust e-commerce” through the distribution incentive mechanism of traffic. The latter is the basic plan for the traffic distribution of Kuaishou e-commerce, which means that the more trustworthy and good merchants (such as those with more repeat customers), the more Kuaishou full-link traffic support will be obtained.

Whether it is a brand or a fast brand, it conforms to this traffic rule.

Kuaishou e-commerce is reaching some kind of positive cycle. When the “trusted e-commerce” becomes better and better, the private domain traffic and repurchase of Kuaishou will be better, and the brand will be able to collect the needs of users faster and produce and fulfill the contract, thereby improving the cost performance and experience, and the merchant will develop more and more on the platform. The better, this will lead to better “trust e-commerce”.

Kuaishou’s cakes are getting bigger and bigger.

This article is reprinted from: https://www.geekpark.net/news/302363
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