Jingdong, Dayang brother Li Jiaqi: Finally understand why so many people support the cancellation of live broadcasting

Double 11 is coming, and the e-commerce circle is lively again.

On the morning of October 24, Jingdong sales personnel "Chu Sanfeng" publicly shouted Li Jiaqi "choose one of the two" in the circle of friends. The person said that the brand complained that because the Jingdong price of a certain Hai's oven was lower than the price of Li Jiaqi's live broadcast, it violated the "reserve price agreement" they signed with Li Jiaqi, and demanded huge liquidated damages.

In addition, also on October 24, Brother Dayang said that Li Jiaqi controlled the price and controlled inventory, resulting in most of the big names in the live broadcast room of Brother Xiaoyang being removed, Brother Dayang said that there were 100 in stock, Li Jiaqi sold seventy or eighty, the merchant must cooperate with him, if he sells more, he has the right, holding the merchant hostage, indicating that a platform official is also helpless. Brother Xiao Yang said that the price of a certain big brand was lower than Li Jiaqi, and it could not be sold, and the commodity link could only be dropped.

Although Li Jiaqi's live broadcast room said that he never asked brands to choose one of the two, according to Blue Whale Finance, more than one e-commerce practitioner said that reserve price agreements are widespread, and other big anchors will sign similar contracts with brands, with liquidated damages starting from millions. According to industry reports, after the relevant authorities explicitly prohibited platforms from forcing one of the two, this strategy began to return to the quacks in the form of the lowest price competition.

At a time when the call for canceling live streaming is getting louder, Li Jiaqi's delivery model seems to be being questioned more and more, and live streaming is eating back into e-commerce.

An oven overturns the perception of the lowest price on the entire network

Live streaming is the product of e-commerce platforms developing in line with the general trend of live broadcasting, but the drawbacks of this business model are increasingly prominent, from the perspective of Jingdong sales personnel shouting Li Jiaqi, now the head anchor is already competing with the platform, and is eating back at the platform.

Judging from Jingdong's revelations, Hai's oven was originally 499, Li Jiaqi brought the price after 649, Jingdong self-operated post after selling more than 200, and then, Hai's wants to sue Jingdong for not discussing the destruction of market prices, resulting in a huge default of the brand, because it is cheaper than Li Jiaqi. Jingdong staff said that the product is Jingdong's own product, and its low price is because JD.com has subsidized it out of its own pocket.

Here, according to industry insiders, the concept of the so-called lowest price on the whole network: because I signed a contract with the brand owner to let them not allow low prices in other places, so I am the lowest price.

It not only relies on the power of channels to squeeze suppliers upward, but also signs price insurance agreements with enterprises to suppress platforms to fight price wars, which are lower than its price.

From the current point of view, the development of live streaming e-commerce by e-commerce platforms is actually similar to raising cheats, but as the bargaining power of the head anchor becomes stronger and stronger, the merchants are pried away, and they are willing to follow the anchor instead of following the platform.

Because Li Jiaqi has only one, but there are many e-commerce platforms. The anchor has traffic in his hands, but your platform may not have it.

This is the backlash effect of live streaming.

Previously, there was a post on the Internet that spread widely: the view is that live streaming goods, especially big anchors, is almost the worst business model, because first, it does not create any new output value, second, does not increase new demand, third, does not produce any new increments for social welfare, what he does is to make the previously scattered sales channels, which could have been obtained by hundreds of thousands of jobs, by him alone and a team of hundreds of people.

However, the view of this post still believes that it is cheaper to buy things in the live broadcast room, but we see that after eating the upstream and downstream, the live broadcast goods are suspected of hitting the price and monopolizing the pricing. In the past, people's perception of the lowest price on the whole network has been overturned. Judging from the current consumer voice, more and more people no longer believe in the "lowest price on the whole network".

So this is undoubtedly making us reflect, what is the existence value of the live streaming model?

Live streaming brings goods to eat e-commerce

We know that from the perspective of various business models for the development of the domestic mobile Internet - such as e-commerce, such as takeaway, such as instant retail, new retail, social grouping, online car hailing, etc., many Internet business models that have been developed in the past, although they have drawbacks, but have obvious social benefits and value.

For example, the value of e-commerce lies in the unbalanced regional, economic and industrial development of China, e-commerce breaks the limitation of physical space, efficiently integrates resources across the country, allows consumers to save transportation costs and time costs, and makes commodity trading efficient. In the past, the new retail model shouted by Ma Yun integrated online and offline, built digital stores, and let e-commerce serve the physical service.

The existence of takeaway and instant retail makes consumers efficient in ordering and instant consumption, linking various retail formats such as local catering, physical supermarkets, convenience stores, and brand stores, building a localized supply network and activating local consumption.

E-hailing has improved the pain points of inconvenient taxi, table skipping, customer slaughter, and poor service in the taxi era, and has also lowered the price of taxis.

The social e-commerce represented by Pinduoduo, although it has been widely criticized for cutting a knife, has indeed brought down the price.

But what does live streaming bring? In the past, we believed that its biggest advantage was to force manufacturers to give lower prices based on the traffic advantage of anchors. But in fact, a small number of top anchors set high commission commissions and pit fees because of traffic advantages, absorbing the profits of merchants, bringing problems to the survival of small and medium-sized businesses, and also leading to the rise of product prices, and signing reserve price agreements with traffic advantages, so that other platforms have no way to reduce prices.

In the end, consumers buy more expensive things, and the path for e-commerce platforms to reduce prices through subsidies has also been blocked, and the only thing that profits may be the head anchor team.

We can't help but reflect, where is the value it brings? In the past, a major direction of the development of the Internet business model was to kill the middleman, but the live broadcast goods have created a middleman, the merchant sells things by the platform to draw a piece, the anchor here again draw, the quality and quality of many products can not be guaranteed.

Judging from the shouts of Jingdong and Xiao Yang to Li Jiaqi this time, the essence of this so-called lowest price on the whole network is that the anchor wants to sell at a high price, and other platforms on the whole network must raise the price and not lower than the price of the anchor. This model is to extract high commissions and pit fees from merchants, and extract the concessions that consumers could have obtained, while making other e-commerce platforms unable to achieve the lowest price, so where is its value to the entire industry chain?

Finally understand why so many people support the cancellation of live streaming

In fact, recently, TikTok shut down its e-commerce business TikTok Shop in Indonesia, which triggered a big discussion in the industry about whether to cancel e-commerce. India, Indonesia, Vietnam, Malaysia and parts of Europe also channel live streaming. Many people directly upgrade the cancellation of live streaming to the cancellation of e-commerce.

But in fact, from the perspective of domestic public opinion, most people oppose the cancellation of e-commerce, but support the cancellation of live streaming goods, after all, the value of e-commerce is very large. Judging from the controversy caused by the current low-price turmoil, the call to cancel the live broadcast is actually stronger. Some consumers said that it is not stupid or bad to suggest that e-commerce companies cancel, but they are in favor of canceling the live broadcast with goods.

Because from a domestic point of view, under the monopoly of live streaming anchor pricing, a series of evil consequences are emerging:

First of all, it is actually a deceptive pricing, making consumers mistakenly think that he is using the traffic advantage to bring down the price and become the lowest on the entire network.

On the other hand, it also raises the cost for consumers. Some consumers said: I often buy things, he began to sell after controlling the price, the price increased a lot, can not complain? Do I have to thank him for making me spend more?

The negative effect of live streaming is emerging, market competition is always good money driving out bad money, in fact, we will find that now live streaming goods are now in decline compared to the past two years when live streaming goods are booming, and even many have collapsed, why?

Because, when consumers buy things in the live broadcast room, find that the product quality is poor, the price is expensive, the after-sales service is poor, and the cost performance is not high, gradually reduce the live broadcast room to buy things, followed by the live broadcast room in addition to the popularity is not as good as before, in fact, there is also the amount of brushing and other black box operations, many merchants The authenticity of the goods effect is not good, the previous 26,000 mobile phones brushed the popularity of the live broadcast room caused heated discussions in the industry, that is, the effect of live broadcast is not as good as everyone imagines.

High-quality goods and services will eventually defeat inferior goods and services, and whether your product pricing is cost-effective or not, consumers can feel it.

Overall, this may be the truth behind why many consumers support the cancellation of live streaming. The traffic of live streaming is too concentrated on top anchors, which requires the industry to strengthen supervision and restrict excessive blood sucking merchants at the head, but live streaming is not equal to e-commerce.

At present, the voice of domestic consumers supporting the cancellation of live streaming is worth the vigilance of the head anchors represented by Li Jiaqi, when you have traffic and the right to speak, you must adhere to the principle of fair competition in the market, otherwise it will trigger a stronger public opinion backlash. At present, live streaming will not be canceled, but this resistance is worthy of industry reflection and vigilance, and the business model of monopoly pricing is also the time to change.

Author: Wang Xinxi TMT Senior Reviewer This article is not reprinted without permission