Will the blue ocean of live broadcast e-commerce give birth to a big opportunity for industrial interconnection?

Live e-commerce may be one of the biggest outlets in the field of e-commerce in recent years.

Domestic live broadcast e-commerce started approximately in 2016, initially mainly as a means of enriching platform content by e-commerce platforms; with the gradual improvement of the industry chain, live broadcast e-commerce is currently experiencing explosive growth At this stage, the transaction volume increased sharply and the popularity was strong, and it has become the standard configuration of major e-commerce platforms and content platforms.

According to third-party research, in 2019, the domestic live e-commerce transaction volume exceeded 450 billion yuan, a year-on-year increase of more than two times, and its transaction volume is expected to reach 1.1 trillion yuan in 2020 Yuan, Live broadcast e-commerce is about to become a huge market of trillions.

This emerging trillion-dollar market is mainly composed of suppliers, channel platforms (e-commerce platforms, content platforms, etc.), KOLs, service providers, and consumers. Channel platforms and KOLs are They are the core links of the industrial chain and they bear the important task of connecting both ends of supply and demand. From the perspective of content platform interest demands and KOL needs, we see in the field of live e-commerce, e-commerce service platforms such as Suning that can simultaneously provide supply chain, content creation with goods, and after-sales performance. , Has a huge opportunity.

1. Live e-commerce will be an important means for content platforms to monetize traffic and retain high-quality creators

Based on platform interests From the perspective of, we believe that live broadcast e-commerce will be further popularized and developed on content platforms, and the expansion of the market scale is far from peaking in the short term. There are two main reasons.

The first is that as the growth rate of brand advertising investment slows down, content platforms urgently need to find new sources of revenue growth in addition to advertising revenue, and live broadcast e-commerce will become important The realization method. At present, the main source of revenue for most content platforms in China is still advertising. However, due to the slowdown in overall economic growth, brand owners’ own performance growth is under pressure, so advertising investment has become Be more cautious and pay more attention to the marketing method that combines product and effect. According to third-party research data, in 2019, the growth rate of advertising and promotion expenses of Chinese consumer brands has slowed down, with a year-on-year growth rate of only 7.2%. In this context, content platforms urgently need to find new revenue pillars other than advertising to support their own revenue to continue to maintain steady growth. Due to the shorter path of marketing and transaction conversion under the live broadcast e-commerce model, its combination of product and efficiency has a strong appeal to brands and suppliers, and has become a new direction of revenue generation that major content platforms are trying hard, including The head content platforms of Douyin, Kuaishou, and Station B are all actively deploying live broadcasts.

Secondly, content platforms need to provide richer revenue-generating channels for KOLs on the platform to motivate them to create more content , To avoid the loss of high-quality content creators due to income constraints, and live broadcast e-commerce will be a key starting point. Since most content platforms use UGC, PUGC or PGC content production methods, for the platform, high-quality and rich content creators (creative masters) are an important cornerstone to ensure their core competitiveness , Which requires the platform to provide sufficient financial incentives to creative talents. Since the amount of traffic is the core decision motive for advertisers when choosing advertising channels, the advertising-based business model naturally brings Matthew effect and is more conducive to the income generation of a small number of top KOLs, while verticals with relatively small traffic The advertising tasks that similar KOLs can receive are relatively limited, and revenue-generating channels need to be expanded. But Under the live broadcast e-commerce model, the accuracy of traffic is more important than the number of fans, and this provides opportunities for vertical KOLs, because they often work in a certain subdivision The crowd has accumulated a small number of core fans with strong stickiness.

Second, the content platform to carry goods KOL urgently needs multi-capacity empowerment, which will provide service providers with broad space for development

Combine their own observations and third parties According to institutional research, we found that the product itself is the most important factor in determining the effectiveness of live delivery, and the importance of traffic factors is even lower than other factors such as content quality and after-sales service. This may be different from common sense. If we visualize the importance of various factors in live delivery in the form of percentages, we can see that the product itself accounts for about 51%, of which product maturity accounts for about 21%, and product price Accounted for 30%; traffic factors accounted for only about 23%, of which KOL’s audience matching degree was about 13%, and KOL’s influence (number of fans, etc.) accounted for only 10%; and others that reflected content quality and after-sales service capabilities The factor accounts for about 26%, and its importance is slightly higher than the flow factor.

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For the vast majority of content platform KOLs, they do not lack fans and traffic, supply chain capabilities, Content creation and after-sales service quality are the biggest constraints hindering their further development in the field of live e-commerce. Most content platform KOLs desperately need help from a third party, because they cannot have a large dedicated team like Wei Ya, Li Jiaqi, and Simba to help them create live broadcasts and find suitable products , Provide after-sales service, which provides a broad space for service providers with these enabling capabilities.

In terms of supply chain, high-quality service providers must be able to provide abundant product resources and the ability to accurately select products. Despite innovations in shopping forms and conversion paths, the core of live e-commerce is ultimately e-commerce. For consumers, the essence of consumption is always to sacrifice money to obtain equivalent goods or services. The requirements for product quality and consumer experience will not be significantly reduced due to changes in consumption patterns. Therefore, a successful KOL with goods first needs to have the advantages of product quality, product price, product richness, matching of people and goods in the supply chain, and this is precisely what most content platforms carry The shortcomings of KOLs. At this stage, most of the KOLs who carry goods select products from the existing product promotion pools of e-commerce platforms. Products often lack differentiation, and because KOLs have limited product selection capabilities, such as ignorance of products, insufficient data analysis capabilities, etc. The matching degree of products and fan needs also needs to be improved, which provides opportunities for service providers who have rich and high-quality supply chain resources, but also master product selection skills and consumer big data.

In terms of content creation with goods, high-quality service providers should be able to provide support such as table-book creation and live broadcast skills guidance. One thing to be clear is that E-commerce live broadcast and short video have obvious differences in content creation skills. Most of the content platform’s KOLs do not fully grasp the e-commerce live broadcast For their content creation capabilities, they need guidance and support from a third party in terms of creation and expression. Therefore, service providers who master the skills of creating content and can systematically output their capabilities will have a clear competitive advantage.

In terms of contract fulfillment and after-sales service, high-quality service providers need to have capabilities and advantages in product organization, delivery logistics, and customer service consulting. Because consumers’ requirements for consumer experience will not be significantly reduced when the form of consumption changes from search recommendations to live delivery of goods, it is often difficult for KOLs to control the quality of service of ordinary merchants. , And cannot afford the high cost of their own after-sales service team, so they urgently need help from a third party in the back-end service, which will bring opportunities for service providers who can provide after-sales service empowerment.

3. With ability output as a breakthrough point, Suning ushered in new opportunities in the field of live e-commerce

One of the biggest news in the field of live e-commerce recently. It is Luo Yonghao's "turn over".

On August 7 this year, Suning and Luo Yonghao collaborated on a special live broadcast. The total payment amount in 4 hours exceeded 200 million yuan, breaking the sales record of 110 million yuan for the first live Douyin live broadcast of Lao Luo.

Everyone may be paying attention to the news that Lao Luo once again proved that he "can fight again", but we try to find the reason behind Luo Yonghao's "can fight again". We found that Suning is the hero behind the scenes.

The first is supply chain support.

Reviewing the past few live broadcasts, we found that the selection of products is an important factor in determining the effect of Lao Luo’s live broadcast. And we learned from public channels that in this live broadcast, An internal team in Suning who is responsible for live broadcast selections provided Lao Luo with product selection support. They rely on their knowledge of the selection of products. How, accurate consumer portraits under big data and Suning's rich supply chain resources helped Lao Luo select 29 high-quality products that match product quality, price advantages and fan needs, including beauty, digital 3C, and fast-moving A variety of categories such as daily. The supply chain support provided by Suning is the key reason for Lao Luo's success in this live broadcast.

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Then the creation of content with goods.

The live broadcast skills and the design of the stage book with goods determine the live atmosphere of the live broadcast room, and to a large extent determine the effect of the goods announcement. As far as we know, in this live broadcast, Suning has a special planning team based on Lao Luo’s personality and analysis of fan portraits on content platforms such as Douyin, and carried out a targeted desk book design, Then it will be handed over to the director team, they will communicate the landing plan with Lao Luo, and finally Lao Luo will actually implement it on the spot; and in terms of the optimization of live broadcast skills, Relying on the successful experience accumulated by many times cooperating with celebrities to live broadcast and bring goods , Suning team also provided advice and support to Luo, such as making the live broadcast process more variety.

The last is the endorsement of the performance after-sales service.

Suning has invested a lot of resources in self-built logistics and professional customer service teams, which ensures that consumers can obtain high-quality goods when shopping in Suning, whether it is logistics delivery or customer service consultation. Consumer experience. And in this Luo Yonghao-Suning cooperation live broadcast products are all from Suning Tesco, Suning’s service endorsement, so that consumers watching the live broadcast do not have to hesitate in the process of placing an order because of concerns about the quality of after-sales service, this is effective< /strong>'sImproved the consumption conversion rate of the live broadcast, became one of the important reasons for the record-breaking of this live broadcast.

In addition to the successful live broadcast with Luo Yonghao, Suning has recently made a lot of capacity output attempts in the field of live broadcast e-commerce. For example, Suning has recently reached an in-depth strategic cooperation with Douyin. All of its products will enter the Douyin store, and the supply chain resources will be open to all KOLs on Douyin, and users do not need to jump. Commodity purchases can be completed in Douyin; during the period of 818 this year, Suning, Jia Nailiang and Guan Xiaotong two celebrities co-launched a live broadcast special, achieving sales of more than 230 million yuan, breaking the Douyin live broadcast The sales record with the goods.

From the above cases, we can see that Suning has the resource endowment to carry out supply chain, content creation and after-sales service, and we can also see that Suning has mastered The methodology of effectively exporting these capabilities to KOLs can also see Suning's clear thinking and strategic determination for the output of live streaming capabilities.

With the fragmentation of traffic, a large number of users gather on content platforms such as Douyin, and with the ability to export in the field of live e-commerce as a breakthrough, Suning will be very promising. Advanced is an open platform for industrial interconnection. By fully opening its own e-commerce operation capabilities and infrastructure links and modules to serve more dimensional traffic and demands, to shape or connect more diverse e-commerce Scenes. Suning will thus usher in a new growth curve.

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