On October 20, Tmall Double 11 pre-sale, Li Jiaqi, Wei Ya's live broadcast became a major focus. Data from the Reds Point Collection shows that on October 20, Li Jiaqi's pre-sale sales were 10.6 billion yuan, Wei Ya was 8.2 billion yuan, and the third-ranked anchor only brought 930 million yuan, an order of magnitude worse than Li Jiaqi and Wei Ya. That night, Li Jiaqi and Wei Ya's live broadcast room accumulated more than 200 million viewers, which was shocking.
In terms of knowledge, Li Jiaqi and Wei Ya's record-breaking single live broadcast has aroused heated discussion. "Who do you think won?" Why can a single live broadcast sales be so high? "Viewed more than 5 million times. Most people questioned the data: I and my friends around me didn't see it, how come 200 million people watched it? Doesn't it mean that the spending power is not good, why are these people still not soft to buy?
I did a survey in the circle of friends, and most people said that they had not watched the live broadcast of these two people that night, and many people said that they had never watched the live broadcast of these two people.
It is undeniable that the large-scale marketing of Li Jiaqi and Wei Ya's team in the previous month played a certain role in stimulating sales, such as the excel helmsman list produced by the two-person team that spread more on the Internet, which attracted the attention of some users.
However, in the view of Luo Chao Channel, the core reason for the record-breaking amount of goods brought by the two head anchors is because of the will of Tmall Double 11: Tmall Double 11 needs such a "bright spot", needs live broadcasting to contribute to the overall GMV, and needs to sit firmly in the chair of "the first platform for live broadcasting with goods". Based on this logic, it will not be surprising that Li Jiaqi and Wei Ya will sell hundreds of billions of goods overnight in the live broadcast room next year, because Tmall can import traffic into a specific live broadcast room as planned to facilitate transactions, after all, 20 billion GMV accounts for a small proportion of the 500 billion double 11 overall GMV.
On the Tmall App, Li Jiaqi has 55 million fans, Wei Ya has 86 million fans, and Ali's 2021 financial report shows that the core e-commerce sector dominated by Tmall and Taobao has 828 million annual active users in china's retail market. This means that on average, 1 out of 10 Tmall/Taobao users follow Li Jiaqi/Weiya. Li Jiaqi and Wei Ya have become Ali's signatures, just like Simba to Kuaishou, Kuaishou is inseparable from the Simba family, and Ali has also formed a dependence on Li Jiaqi and Weiya.
If it were not for Alibaba's strong import of traffic, it would be difficult to understand why the growth between Li Jiaqi and Wei Ya live broadcasting was so "fierce". Public reports show that in 2019, Li Jiaqi and Wei Ya live streaming with goods the annual GMV just exceeded 5 billion yuan; by 2020, the data went up the ladder, and the total GMV between the two live broadcasts on the double 11 pre-sale day was nearly 8 billion yuan, which was 3.221 billion yuan and 3.327 billion yuan respectively, and the day was close to the whole of 2019, and the "epidemic promoted the popularization of live streaming goods" to explain that the persuasiveness was not enough, because if this is the reason, then in 2021 Li Jiaqi 10.6 billion yuan and Wei Ya 8.2 billion yuan, Two or three times year-on-year growth again, how to explain it?
What is the level of one-night turnover of 10 billion? Many people may not be impressed by this. You can see this chart: in 2020, many well-known retail companies in China will have annual revenues of less than 10 billion, such as Wangfujing Department Store. That is to say, the transaction amount of the head anchor in one night is more than the efforts of a large number of ground sales personnel in a shopping mall and many offline stores in a year.
Whether the data is true or not, it is difficult for outsiders to prove or falsify, after all, it is relatively easy to inject water into live data, such as placing an order first and then returning an order is a very common means. As Zhihu netizens said: If the tax bureau checks the tax payment of the corresponding transaction amount, or pays attention to the tax payment of the anchors' income, it will know whether this data is true.
So, how much commission can Li Jiaqi and Wei Ya get from the 18.8 billion turnover? The average comprehensive commission level of live streaming is about 20%, and the head anchor may be higher - the comprehensive commission includes the "pit fee" and the proportion of commission according to the transaction amount. Previously, according to the financial report of home textile brand Mengjie shares, some media estimated that the commission rate of Weiya's cooperation with it in 2019 was about 22.21%, and the commission rate in 2020 was about 26.26%. If calculated according to the 20% commission level, Li Jiaqi and Wei Ya will receive about 4 billion yuan in revenue on the night of the 20th.
What is the level of 4 billion? Not to mention the lifelong struggle to catch up with ordinary stars, even a top rich man like Ma Yun is difficult to look back on, Ali's annual revenue in fiscal 2021 is 717.289 billion yuan, operating profit is 89.678 billion yuan, and 4 billion yuan is almost Ali's monthly profit.
A long time ago, the industry discussed a topic: "live broadcast with goods to put satellites". In the game of live streaming with goods, the anchor should be divided into commissions, and at the same time PK GMV (for example, this time Li Jiaqi has more than Wei Ya, and he has the title of "a brother with goods"). Naturally, there is an incentive to make GMV bigger. Brands rushed to hit the list during singles' day, and some brands risked being punished, because the sales performance of double eleven can become a publicity stunt and financing material. As for the platform, it is even more eager for GMV to rub up. Under such unspoken rules of the game, the number of live streaming with goods turnover will "raise firewood and flame high".
When a brand joins a live game with goods, it gives up traffic sovereignty, and then it has to keep spending money to buy traffic, because there is no sales without buying traffic, and buying traffic may have sales but less profit or even no profit. Many head anchors are very strong and require the lowest price in the whole network. Li Jiaqi made his process of bargaining with the brand into a variety show. How does the brand let the profit come out? It is nothing more than less profit or even loss of money to sell. Many brands in the live broadcast room have made a roar, and there are sales that do not make money, and it is the anchor and the platform that take away the majority. In this way, the brand was kidnapped by traffic and became a hitman for the head anchors.
So I have always said that the game of live streaming with goods is actually "fat anchors, platforms, and bitter merchants." "Merchants are not stupid, why should they play at a loss?" A market practitioner of a certain brand said: "We have a product on a certain head anchor, sell a loss, the difference in loss will find the brand department to make up, double eleven everyone buy one get one free, make money very few, everyone is for the double eleven sales performance." With the endorsement of a head anchor with goods, it is equivalent to endorsement, live broadcast slices are used for advertising, Taobao, Douyin, Jingdong will be used to improve conversion. He believes: "100% of the products on the night of Singles' Day can be bought, because most of the merchants are losing money." Merchants see the hidden interests behind them. ”
In the long run, this is a typical process of bad money expelling good money. In this game, the brand is pulled into the price war, the traffic war, it seems to have obtained the outbreak of sales, but once the traffic is not bought, once it leaves the anchor, it may fall into long-term weakness. Spending money to buy traffic is as valuable to the brand as Viagra, the effect is there, but once you don't take the medicine, you will enter the "sage time".
Brands spending money to buy traffic increases marketing costs, not only will it be passed on to consumers, but also will cause brands to have no money to do things with long-term value, such as brand building, product development and physical manufacturing, and eventually only an empty shell is left.
According to the financial report released by Yixian E-commerce, the parent company of Perfect Diary, its net loss in the second quarter expanded by 21.6% year-on-year to 391 million yuan; the net loss in the first quarter was 317 million yuan, an increase of 50.78% year-on-year, and its marketing expenses accounted for much higher than most domestic daily chemical brands, with 973 million yuan in the second quarter, accounting for 63.8% of the total revenue. That is to say, most of the company's revenue is used for marketing, most of which buys traffic, and a considerable part of the traffic is given to the anchor, and its product is a regular customer in the live broadcast room of the head anchor. The latest share price of Yixian E-commerce is 3.32 US dollars, which is more than 80% lower than the high point of 25.47 US dollars.
Many companies have similar problems. Some people say that this year's double 11 is weak, live broadcast anchors saved the double eleven, not necessarily; others say that the anchors are killing double 11, because the double 11 itself has not paid much attention to the gameplay and carnival, the real lowest price in the live broadcast room, it seems that double 11 is only left with the anchor with goods. In fact, live streaming with goods, double 11 carnival or not, are just marketing means, brands still have to do more long-term value things. Now, more and more brands have begun to actively "quit" traffic dependence after recognizing the drawbacks of live streaming and grass marketing.
On the one hand, strengthen brand building, weaken short-term effects, and pay attention to long-term value.
For such a long time, no brand has relied on anchors to bring goods to win the red, because live streaming has no profit from sales and no profits, and there is no brand for traffic. Brands should do long-term brand building, and they must turn to other ways.
When the brand becomes, it will bring its own traffic, even if it needs to continue to market to buy traffic, even if it will use the anchor with goods, it will not rely on any form of marketing, and will not work for traffic. Relying on the traffic platform, the money that the brand can earn the Internet platform has been calculated very clearly, and the profit left for the brand is very small, which is the meaning of the brand to grasp the "traffic sovereignty" that hua and hua chairman HuaBin teacher has always said.
Just like the brands such as Chanel, L'Oréal and Apple, they have their own traffic, they will not rely on Li Jiaqi to bring goods, even if they look for them, they do not need to make a large profit, and they do not have the slightest impact on the basic disk.
On the other hand, the live broadcast with goods into a controllable basic ability, not relying on the head anchor.
Live broadcasting is the Internet infrastructure, and live streaming with goods is retail infrastructure, the essence of which is the online, one-to-many and gamification of shopping guides, as well as the normalization of group purchase promotions. For brands, live streaming with goods will improve conversion, create increments, and now many brands such as L'Occitane are vigorously cultivating their own anchor matrix, normalizing broadcasting, so that their live broadcast room has the advantage of the lowest price in the whole network, the same can form order conversion, while precipitating private domain traffic, and do not have to let external anchors take a large piece, so as to form a positive cycle.