Author | Lian Ran Zhengxuan
Editor | Zheng Xuan
The coldest 618 ushered in the hottest video number.
No fanfare as imagined. At the end of May, the WeChat video account announced the “Join the War” 618 in a low-key manner. From May 31 to June 18, the 18-day “6.18 Video Account Live Streaming Good Things Festival” will be launched. For participating merchants, the official video account will provide a certain amount of traffic. excitation.
This is the second time that the video account has participated in the e-commerce festival. Similar to last year’s Double 11, the video account still adopts the method of traffic support, and there is no hype. However, compared with last year’s Double 11, video account e-commerce has also undergone certain changes.
A domestic social e-commerce entrepreneur who is familiar with WeChat ecology told Geek Park. In the past year, video account e-commerce has developed quietly, and gradually formed an e-commerce model with “brand private domain” as the core. The soaring operational data and the gradual establishment of an ecosystem that is differentiated from Doukuaitao’s “host e-commerce” are the main reasons for the video account to speed up the e-commerce layout.
According to the entrepreneur’s understanding, according to GMV calculation, the ratio of brand self-broadcasters and anchors bringing goods on Doukuaitao is about 2:8 or 3:7, while the video number is just the opposite. Brand self-broadcasters and anchors bring goods on the platform The ratio is about 8:2. In addition to the fact that there is no anchor to earn the price difference and charge the pit fee, the more important significance is that through the open public account, WeChat community and small program, the brand can deposit more users who enter the live broadcast room into its own private domain and complete the live broadcast- A closed loop of order-precipitation-repurchase.
And this may rewrite the rules of the game for the live broadcast e-commerce ecosystem.
01. The first battle “618”
According to the official information provided by WeChat, the “June 18 Live Streaming Good Things Festival” officially opened at 20:00 on May 31st and will continue until 24:00 on June 18th. During the period, WeChat will provide participating merchants with a series of traffic support policies.
First of all, according to the sales amount of a single live broadcast, traffic incentives will be given in the form of returning “traffic coupons” after the live broadcast. The lowest single-level sales amount of more than 10,000 yuan can get platform traffic rewards. In addition, a single live broadcast introduces a minimum of 50 private domain fans into the live broadcast room, and can also get incentive traffic coupons after the end.
In addition to the live broadcast, the video account also launched a short video activity during the event to encourage merchants and talents to attract users to plant grass in advance and divert traffic to the live broadcast room. Those who perform well in the event will receive traffic rewards ranging from 100,000 to 300,000.
Traffic rewards are the most common incentive policies for live streaming on content platforms. Douyin, Kuaishou, and Station B all have similar policies. It is worth mentioning that since the beginning of this year, Doukuai has increased its support for brand self-broadcasting. In April this year, Douyin E-commerce and Kuaishou E-commerce announced new brand support plans. Douyin E-commerce said it planned to support 100 merchants with sales of over 100 million within this year, while Kuaishou said it would use 23 billion traffic to support 500 merchants within the year. .
It has been a while since the video account started live streaming with goods. In October 2020, just 4 months after the live broadcast of the video account, the delivery function was launched. In June last year, some merchants spontaneously organized a 618 event on the video account. During the Double 11 last year, the video account announced its participation in the e-commerce festival for the first time, launched the “11.11 Live Good Things Festival”, and provided tens of millions of traffic coupons for support.
Image source: Visual China
At present, in terms of product distribution, the most popular categories on the video account are clothing, shoes, bags, beauty and personal care, and fresh food. From the perspective of user gender, in the live video room, female users show much higher purchasing power than male users. From the perspective of geographical distribution of users, purchasing users are mainly concentrated in first- and second-tier cities.
Although the launch time is not long, in 2021, the live broadcast of video accounts will grow at a rapid rate. In January of this year, part of the data about live delivery of goods was disclosed for the first time in the WeChat public class: the GMV of live broadcast delivery of video accounts will increase by more than 15 times at the end of 2021 compared with the beginning of the year, of which private domains account for more than 50%; the average unit price of live broadcast rooms exceeds 200 yuan, the overall repurchase rate exceeds 60%.
Entering 2022, in the WeChat public class, the video account announced a larger-scale e-commerce development plan, saying that it plans to support no less than 100,000 high-quality merchants through the traffic support plan in 2022.
Compared with Doukuai Tao, the video account strategy that only uses traffic support is relatively simple. It is not clear whether this is due to different development strategies or because the video account is still in the early stage of developing e-commerce business.
But one thing is for sure: WeChat is adopting a live e-commerce strategy that is fundamentally different from Doukuai Tao. The key word is the one mentioned at the beginning – “brand private domain”.
02. Give merchants a “private domain”
“Private domain traffic” is the most valuable social currency in the WeChat ecosystem. Establishing private domains for merchants and KOLs is one of the basic concepts of WeChat. The first e-commerce companies to eat this dividend were Wechat, and the Internet e-commerce brands represented by Perfect Diary later.
Video accounts bring new opportunities. From the perspective of the video account strategy, the use of various product components in the WeChat system and the linkage between public and private domains are the main gameplay of video account e-commerce.
Specifically, brands can guide users to enter the live broadcast room by means of public account graphic dissemination and community operation, realize cold start, and deposit the public domain traffic that will be attracted into the enterprise WeChat, so as to realize traffic from private Complete transfer between domains to public domains to private domains. By continuously activating private domain traffic to leverage the platform’s public domain leverage and precipitating new private domains, brands can continue to expand the scale of their private domains.
The mobile phone brand iQOO participated in this video number 618 event, and the person in charge of the iQOO live broadcast introduced the specific gameplay. First of all, there must be a certain amount of private domain traffic before the broadcast, so that private domain users can be quickly introduced to the live broadcast room; secondly, the product must meet the audience of the video account, and the GMV of a single game can continue to grow; thirdly, it is necessary to pay attention to public domain traffic. The precipitation of the brand continues to expand the scale of the private domain of the brand.
The person in charge said that the proportion of people who come in in each live broadcast room can be converted into private domains by 10-20%.
Most of the public domain traffic allocated by the platform is a one-shot deal, while the private domain means brand loyalty and repurchase. The value of the two is self-evident.
The person in charge of iQOO live broadcast said that for video accounts, the company values the new traffic it brings to the brand. The unit price of mobile phones is very high, and the transaction cycle will be relatively long, so the company attaches great importance to the reach of video accounts to users. “Video accounts can allow brands to reach users who really like iQOO, which is invaluable.”
Wei Xiaoya, director of user operations at MINISO, also told Geek Park that after the annual sales growth, they found that the ARPU of private domain users increased by nearly 3 times compared with ordinary users, and the users of video accounts had doubled compared to private domain users. After a while, it has been proved that the users of the video account are relatively high-value fans, and the stickiness and reflow are relatively high.
Doukuaitao is not completely without private domains, but due to the platform mechanism and the early development process, it is very difficult for brand merchants to accumulate private domain traffic on these platforms.
On the one hand, Doukuaitao, especially Douyin and Taobao are centralized platforms, and the right to distribute traffic is controlled by the platform, and even this right to distribute traffic is the basis of their business model. For merchants, this means that even if their brand’s official live broadcast room has a certain number of fans, they still have to purchase traffic through the platform to ensure sufficient sales conversion.
On the other hand, Doukuaitao’s private domain traffic is mainly concentrated on the anchors with goods, especially individual head anchors, who control the vast majority of the platform’s private domain traffic, and the resulting bargaining power allows them to ask for To the lowest price on the entire network, this further consolidates the private domain traffic pool of the head anchor.
The formation of today’s situation where the private domain is too concentrated on the head anchors is related to the strategy of focusing on people and ignoring brands when DoukuaiTao developed live broadcasts in the early days. According to Geek Park, in recent years, Taobao and Kuaishou have reflected on this approach to some extent. In the past, the excessive support for the head anchors has been significantly weakened today.
Different from Doukuaitao, the private domain itself is a major feature of the WeChat ecosystem. Today, official accounts, small programs, and communities are the main positions for brand merchants to accumulate private domains. It is also one of Zhang Xiaolong’s ideas for designing WeChat products to create a private domain for merchants and KOLs.
The video account itself is a semi-public domain and semi-private domain product. As a component of the WeChat ecosystem, the live broadcast of the video account provides a leverage that allows brand merchants to use public domain traffic to leverage more private domain traffic to small ones. Private domains such as programs and official accounts; and when brands have more private domain seeds, they can leverage more public domain traffic in live broadcasts and complete more live broadcast sales.
In addition, it is worth mentioning that the video account has more support policies for brand self-broadcasting, and relatively few support policies for celebrities to bring goods, and they have not signed a contract to support a large number of celebrities and celebrities with their own traffic and halo to bring goods. Perhaps it was because of seeing the disadvantages of the traffic concentrating on big anchors such as Wei Ya, Li Jiaqi, and Simba.
03. Be careful with shaking, the wolf is coming
Objectively speaking, there is still a big gap between the scale of live streaming of video accounts today and that of Doukuaitao.
Cotton Times 618 video number live broadcast
Judging from the feedback from multiple brands and consumers who have talked to Geek Park, they currently do not have a strong perception of video accounts participating in 618. The number of 80,000 videos with goods under the official tag is comparable to that of Douyin and Kuaishou. There is still a gap of several orders of magnitude.
But that doesn’t mean that Doukuaitao can be taken lightly. The horror of WeChat ecological social fission is: as long as a new product is in the right direction, once it crosses the “infancy” of the original accumulation of users, even if the WeChat team does not need to invest huge financial resources and manpower to operate, this product will quickly accumulate. billion users.
Just like when the video account was launched, some practitioners questioned why WeChat did not re-operate like Doukuai – to sign stars to settle in, and to subsidize creators. But today, it only took two years for the “doing nothing” video account to go from 0 to 500 million daily activities, which has surpassed Kuaishou and threatened Douyin. A similar process, in addition to the video account, has also been staged many times in the circle of friends, WeChat payment, mini programs, and live video account.
In August 2013, WeChat Pay was launched; in January of the following year, the WeChat wallet function was launched, and during the Spring Festival, WeChat red envelopes were launched, and after the construction of offline scenarios such as Didi Taxi, WeChat Pay only took two years to go online. Its market share has surpassed Alipay.
And some key indicators show that live streaming of video accounts has a fairly good conversion rate and consumption potential. According to the data provided by industry insiders to Geek Park, the average value of each UV generated by the live broadcast of the video account is about 20 yuan. In terms of horizontal comparison, 20 yuan per UV is already quite a high conversion. Taking Douyin as an example, according to a popular answer on Zhihu on a related topic, the average of 1 yuan per UV in the live broadcast room is a pass line, and the average sales volume is 5 yuan, which is quite good data.
From no one knows to no one knows, today’s video account e-commerce may take 2 years, may need to go through the transformation from microvision to video account, or maybe it is the distance from this 618 to the next double 11 – who? Know what?
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