Live e-commerce and domestic brands may be more deeply bound.Welcome to the WeChat subscription number of “Sina Technology”: techsina
By Qi Jielun
Source: Haike Finance (ID: haikecaijing)
The 2022 Double 11 promotion has already kicked off, and the multi-dimensional competition between e-commerce platforms has begun.
It is slightly different from previous years. In addition to the normalized settings such as GMV, that is, the turnover figures continue to rise, there is another point to watch, that is, the current value and potential of each platform in serving the real economy.
The recent report clearly stated that the focus of economic development should be placed on the real economy, and the generalized e-commerce platform that integrates various innovative forms may make greater achievements in this direction; From the perspective of the new development pattern in which the domestic cycle is the main body and the domestic and international dual cycles promote each other, how to better promote the development of domestic brands and their upstream industrial chains may become an important future proposition for the e-commerce industry.
In fact, in recent years, many unique domestic brands have risen rapidly in the field of consumption. There are mainly two categories involved, one is the re-start and discovery of existing brands, and the other is the emerging brands from 0 to 1. Soar up. These brands are gradually catching up with international big names in product quality, showing a better understanding of the differentiated needs of Chinese people in terms of details, and tending to be more affordable in terms of prices, all of which make domestic users who consume more rationally favor them.
Many people have seen that the explosion of domestic brands is no longer purely dependent on the overwhelming advertising bombardment. They have more lively and more direct marketing strategies to target users’ minds, and most of them are connected to the top domestic e-commerce platforms. As a new format of live e-commerce, whether it comes from traditional e-commerce platforms such as Taobao and JD.com, or from short video platforms such as Douyin and Kuaishou, its video presentation is more intuitive and three-dimensional, and it has both planting and weeding. The core function plays a particularly huge role in this.
In the past few years, Li Jiaqi, the head anchor of the live e-commerce track, has pushed batch after batch of high-quality domestic products that the public did not know much about into a national trend through brand co-creation and other methods in the past few years. Consumers and brands A bridge of efficient integration has been built between the parties, which has injected strong momentum into many links such as upstream R&D, manufacturing, and contract performance.
Looking at it now, the above model still has an extremely broad imagination space for the significance of the rapid development of domestic brands and the real economy, and Double 11 is obviously not just a grand supermarket in this regard, it is a stage and comprehensive battle for the strong exposure of domestic brands. A testing ground for abilities.
01
demand pushes supply
The inherent negative labels such as rough, low-grade, outdated, and copycats that were previously added to domestic brands have been torn away bit by bit with the efforts of all parties involved for many years.
Consumers have a new understanding of domestic brands, and on this basis, high demand has formed. This high demand has generated a strong impetus on the supply side. This is the head force of domestic live broadcast e-commerce represented by Li Jiaqi. Recently It has been devoted to this for several years and has successfully helped a series of brands to achieve the key to breaking the popularity circle and sales explosion.
There are not only the channel characteristics of live broadcast e-commerce and the overall advantages of domestic brands, but also the risk factor that the head anchor and its behind-the-scenes team select high-quality products and are willing to provide brand endorsements for them, but it is more critical. It is still the consumer’s recognition of the quality, price and tone of the products under the brand, and the fermentation and transmission of the corresponding excellent reputation is undoubtedly more crowd-penetrating and long-term preservation.
Looking back at the past trajectory, it can be seen that consumers’ sincere appreciation for domestic brands did not come suddenly. The changes in the concept of young people who are the main consumer groups need to be highlighted here.
“Generation Z” is a term that has been used more frequently when people discuss issues of population and economic development in the past 10 years. According to data from research institute QuestMobile, as of June 2022, the number of online active users of Generation Z in China has reached 342 million, while in the same period of 2018, 2019, 2020, and 2021, this figure was only 213 million, 253 million, 277 million, 314 million, that is, in the past 4 years, a net increase of 129 million.
A judgment that is close to the consensus of the industry is that the Z generation group has gradually become the backbone of social development as it grows older, and it has already played the role of the main growth engine in the domestic consumption field. An important source of incremental growth in the commercial market.
Generally speaking, a common characteristic of Gen Z users is that they are not blindly pursuing fashion trends and shopping experience. Among the many factors that affect their consumption decisions, product quality ranks first. According to QuestMobile data, 65.4% of Gen Z users are concerned about quality on the TOP5 list of online consumption concerns, which is higher than price (64.4%), brand (63.1%), fashion (57.3%) and experience (31.0%) ), some domestic brands with personalization and functional segmentation have been more praised by this group.
Fastdata also captures similar information about changes in supply and demand for domestic brands. The research agency mentioned in a research report on the e-commerce consumption of young Chinese users released in early 2022 that after 10 years of development, the attention of young Chinese users to foreign brands and Chinese brands has undergone fundamental changes. The attention of the former and the latter has changed from 77.2% and 25.3% in 2011 to 22.8% and 74.7% in 2021. Domestic products have surpassed foreign products in an all-round way, becoming a banner for the consumption of the new youth of the Z generation.
Based on the pursuit of quality, the increasing favorability of domestic brands is not limited to the Z generation group.
According to the sample questionnaire conducted by iiMedia Research, as of June 2022, the proportion of Chinese consumers who have increased the frequency of purchasing domestic traditional brands is 30.6%, and the proportion of Chinese consumers who have increased the frequency of purchasing domestic new brands is 33.2%. 36.6% of consumers purchase frequency of internationally renowned brands. The agency concluded that with the transformation of domestic brands and the advancement of the innovation process, consumers are more willing to buy domestic brands, and domestic brands are expected to gradually erode the market share of international brands.
02
Domestic products jump to the national tide
Boosting the development of domestic brands is not only the goal of the national policy, but also the objective economic laws. It is also a requirement for the self-confidence of the public. It meets the realistic expectations of many parties, but how to implement it at the implementation level is a lot of thought. This is the case with traditional e-commerce, and live-streaming e-commerce is no exception. For the latter to succeed in this field, the precision of the process and the professionalism of the team are indispensable.
It is not difficult to feel this from the front and behind the scenes of Li Jiaqi’s live broadcast room to promote the explosion of domestic brands.
First and foremost is the selection.
Domestic products are a big concept. When subdivided, it is related to thousands of industries. There are many brands and more SKUs. It can be said that the quality and culture are different. How to start from the positioning of the live broadcast room and find the best choice among the massive brands and products, this The difficulty level of the questions is not low. Because it may directly determine the success or failure of the live broadcast and even affect the reputation of the anchor and the institution.
It is not difficult to understand the strictness of ONE in the selection of products.
Taking beauty as an example, according to the product selection rules disclosed by Beauty ONE, its evaluation dimensions include at least the following three dimensions: first, category, brand, and team. OEMs and raw material suppliers are preferred, and stable supply systems and perfect after-sales guarantees are preferred; second, ingredients, design, and price, which involve trial feedback for different skin types, and verification reports corresponding to efficacy; third, Word of mouth, volume, which requires the brand to have a certain precipitation and growth potential, in line with the mind of the live broadcast room, and moderate marketing.
According to Heike Finance, through Li Jiaqi’s live broadcast, the volume of domestic products has been increased and a wide range of domestic brands have been reached, such as Zhuben, Hanshu, Oushiman, Youshiyan, Natural Hall, Baizhicui, Affordable Materia Medica, Daisy Sky, etc. , all of which are excellent products first, and Li Jiaqi’s team discovered and amplified its influence later.
From this perspective, the value of Li Jiaqi’s live broadcast room, which has nearly 70 million followers, to a number of domestic brands can be compared to a spotlight or a loudspeaker. These authentic domestic products can be seen and bought by a large number of consumers through the live broadcast window and Li Jiaqi’s professional recommendation based on the high trust of fans.
Take the domestic aromatherapy skin care brand as an example. The brand was founded in 2016 and entered Taobao in 2018. With cleansing oil as the entry point, it continued to invest in product research and development, and then gradually fell into the lead in this segment. At the end of 2018, Li Jiaqi’s product selection team started working with each book after product trial and soon launched its brand. Since then, the two sides have met a lot. It is said that the two parties cooperated in 34 games in 2019, and set a record of selling 50,000 bottles of cleansing oil in one minute in the same year.
Hanshu is an old domestic cosmetics brand founded in June 2003. In recent years, its sales volume has ranked among the top 10 cosmetics categories on Taobao. In July 2021, Han Shu and Li Jiaqi jointly launched the creative new product Han Shu emotional capsule mask, which became popular. It is said that the product was sold out in Li Jiaqi’s live broadcast room in 1 second, and replenished 4 times in the middle, becoming the live broadcast sales champion on the spot.
In terms of promoting high-quality domestic products to become a national trend, in addition to regular live broadcasts, American ONE’s many grass-growing video programs must also be mentioned. These include “Li Jiaqi’s Small Classroom”, which mainly talks about product knowledge, and “Li Jiaqi’s New Product Show”, which focuses on broadcasting global new product information.
Not only that, following the filming and launching of the variety show “Offer of All Girls” on the eve of Double 11 in 2021 and its great popularity, before the arrival of Double 11 in 2022, Mei ONE’s newly produced “Offer 2 of All Girls” has a total of 8 The show was also released at station B, and its popularity even surpassed the first season.
According to the observation of Haike Finance, this program deeply presents the negotiation between Li Jiaqi and his team to help his core audience “all girls” and the brand side to negotiate on Double 11 OFFER. It is also difficult not to be planted in the process.
03
Live e-commerce Long March
Affected by the epidemic, smartphones and mobile Internet have become almost universal in China. The huge scale of netizens and the convenience of video browsing are accumulating potential energy for the further expansion of live broadcast e-commerce.
The state has always encouraged and supported the development of live broadcast e-commerce. Taking the “14th Five-Year Plan for E-commerce Development” jointly issued by the Ministry of Commerce and other three departments on October 9, 2021 as an example, the document mentioned that e-commerce should play a leading role in the reconstruction of the value chain and encourage e-commerce enterprises to explore User needs, promote the healthy development of new business formats such as social e-commerce, live broadcast e-commerce, content e-commerce, and fresh food e-commerce.
Here it is necessary to introduce a set of data.
Based on the statistics and forecasts of research institutions such as QuestMobile and iiMedia Research, as of the end of June 2022, the scale of China’s mobile Internet users has reached 1.19 billion; The scale of China’s online live broadcast users will reach 660 million, and watching live broadcasts has become one of people’s online habits; also by the end of 2022, the total scale of China’s live broadcast e-commerce industry will reach 1,435.4 billion yuan, and this figure will reach 2,137.3 billion yuan in 2025. The KOL delivery model represented by live broadcast will become a new growth driver for e-commerce platforms and content platforms.
Judging from the current pattern based on the above data, with the increase in penetration and the maturity of the industry operation system, the ceiling for live broadcast e-commerce to help the development of domestic brands will likely be further pushed up and there is a huge space for exploration. More high-quality domestic products are expected to be Through the live broadcast rooms with long boards scattered in different APPs, it has been detonated into a national trend, and the pull of live broadcast e-commerce on the real economy will slowly turn a new page.
We might as well still use the business progress of Li Jiaqi’s live broadcast room under ONE as a reference.
Since the beginning of the year, Li Jiaqi’s live broadcast room has successively launched a number of effective and targeted measures to help domestic brands resume work and production and make overall transitions. Up to now, the live broadcast room has accumulated more than 5,000 domestic links during the year, sold more than 62 million items, and averaged 47 million viewers per game.
The specific actions here include, but are not limited to, from mid-April to mid-May to bring goods for free for 20 Shanghai domestic brands such as Hanshu, Zhantang, Xiangyi Materia Medica, and Baizhicui, and completed sales of 160,000 pieces; on May 10, Chinese brands On the same day, a special live broadcast of domestic products was opened, and more than 60 domestic product brand links were launched, and more than 1 million pieces were sold; during the 618 period, nearly 500 domestic product brand links were launched, and 4.12 million pieces were sold. The sales volume of domestic products accounted for nearly 60% of the total sales in the same period. %; On September 23, on the day of the Farmers Harvest Festival, a special session for domestic products and a special session for rural revitalization was held to promote local specialties such as Guizhou Shiqian purple peacock black tea, Jiangxi Gannan bamboo shoots, and more than 400,000 pieces.
In addition, on September 22, ONE officially became the first live-streaming e-commerce organization selected for Xinhua News Agency’s national brand project. According to the agreement signed by the two parties on the same day, Xinhua News Agency and ONE will cooperate closely in the future to give full play to the advantages of the former’s mainstream media and the latter’s advantages. It will take advantage of emerging traffic, jointly serve the development of national brands and consumption upgrades, and jointly create an excellent model for rural revitalization.
It needs to be seen that the contribution made by Li Jiaqi’s live broadcast room in helping the development of domestic brands is indeed far more than that of its peers in the industry. However, compared with the wide range of domestic regions, many brands, and great demand, these contributions are still not enough, and a lot of space needs to be continued. Explore deeply and light them up one by one.
These tasks are so complex and arduous that more and more live broadcast e-commerce forces that are benchmarked against Li Jiaqi and Mei ONE are required to work together to be competent. When it comes to promoting the development of domestic brands and serving the real economy, all parties have the same goal rather than a zero-sum game. In this regard, live e-commerce still has a long way to go, and it will not happen overnight that more large-scale domestic products will become a national trend, but the direction is clear and the road is coming.
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