In 2021, the huge wave set off by the first year of the new brand seems to be becoming more and more turbulent. In the period when the dark horse brand is continuous and large-scale financing is emerging, players need to keenly capture the new changes that may occur behind the fanatical atmosphere, and do a good job of coping with the strategy in advance.
At 9:00 a.m. on Thursday, July 29, 36Kr "Wise2021x New Brand Innovation Trend Summit" was held at the Hangzhou Qianjiang New Town Marriott Hotel. The summit invited executives from more than 30 well-known investment institutions, e-commerce platforms, brand owners and service providers to discuss the innovation trends and development opportunities of dark horse brands under the "2.0 era of new brand entrepreneurship".
Xue Yuanhao, partner of Magic Chopsticks Technology
At the summit, Xue Yuanhao, partner of Magic Chopsticks Technology, shared the theme of "New Opportunities for Brand Building in Live E-commerce". He believes that the scene of live e-commerce has shaped new opportunities for new brands, and there are several core reasons behind it: first, the new scene: live e-commerce is a new scene that breaks out rapidly; second, new users: in addition to first-tier cities, live e-commerce can also cover most low-tier cities, as well as a group of new young users, and not just online shopping users; third, new logic: the private domain and trust established between anchors and fans, making transactions happen more quickly; fourth, new touchpoints: the rapid rise of mid-waist e-commerce anchors. Let brands have a wider range of channels to influence consumers. The combination of these factors makes new brands have an important opportunity to rush out.
The following is a transcript of the guest speech, compiled by 36Kr Editors:
Xue Yuanhao: Good morning, I am very happy to share with you what Magic Chopsticks has done in the field of live e-commerce, especially the experience and experience of building live e-commerce brands. Just now, Mr. Zhang (Zhang Yipeng, general manager of the Kuaishou e-commerce ska brand operation center), talked about this issue from the perspective of the platform. We are a service provider of Kuaishou strategic investment. Therefore, today we will share our harvest with you from the perspective of service providers.
Founded in 2015, Magic Chopsticks Technology obtained Kuaishou strategic investment at the end of 2017, entered the Kuaishou ecosystem in 2018, and obtained Tencent's strategic investment in 2019. The company initially provided anchors with e-commerce transaction saas tools, and then supplemented the supply chain capabilities, and thus connected high-quality merchants and a large number of anchor groups. On this basis, we have also worked with merchants to create many brand examples to help them grow rapidly.
Up to now, Magic Chopsticks has access to a number of ecosystems with Kuaishou as the core, including video number, Tencent video, Microvision, National K Song, etc., providing one-stop solutions for merchants and anchors. The overall business model of Magic Chopsticks is s2b2c, which connects saas tools and live e-commerce services to different traffic ends, connects different anchor groups, and helps merchants achieve distribution and brand building. Through this model, magic chopsticks open up sales channels and play a role in empowering merchants and anchors together.
Here, I would like to first share a few observations on the industry and consumers. Just now, a guest mentioned that the live e-commerce industry has shown a trend of explosive growth. Indeed, according to the data, live e-commerce will become the most important component of retail e-commerce with a market size of several trillion yuan in the future. In terms of users, according to the "Statistical Report on the Development of China's Internet Network", the online shopping user scale of the entire live e-commerce reached 388 million at the end of last year, accounting for more than half of the overall online shopping users. In March last year, that number was only 265 million. It can be said that this is a shopping group with a very fast growth rate. In addition, Kuaishou has also shared data on user repurchase rates. The data shows that the user repurchase rate rose from 45% in 2019 to 65% in 2020. Therefore, the entire large industry of live e-commerce is in a period of rapid development, and consumers among them have high repurchase capabilities.
As more and more users accept live e-commerce and the new shopping forms they form, we also see some changing trends on the traffic side. In the past, we only focused on the top streamers of tens of millions of fans. However, through third-party data analysis, we found that the mid-waist anchors on the content e-commerce platform represented by Kuaishou have become the main force influencing platform consumers. The number of fans of these mid-waist anchors may only be hundreds of thousands, millions, but the monthly gamv can reach millions or even tens of millions. Under the trend of decentralization of the traffic end, the mid-waist anchor has become the main force of commodity distribution, and the customer contact point has been rapidly expanded.
Recently, Magic Chopsticks has joined forces with some research institutions to conduct research on C-end customer groups to find factors that are really concerned by users in the process of live e-commerce. We found that consumers are rational and that the top factors influencing consumption decisions are product quality, price, and quality.
In addition, we also found that the talent of the anchor does not have a huge impact on consumer shopping. Through the data, we see that consumers are more concerned about the anchor's understanding of the product, the professionalism of the live broadcast, and finally other factors such as humor and popularity. Therefore, although the live broadcast form can cause everyone's desire to shop, in the long run, consumers will still remain rational and return to the product shopping experience itself. Of course, this is also the foundation of a product and a century-old brand.
In addition, we have also observed that taking the Kuaishou platform as an example, the vast majority of the hot goods in the past 30 days are actually new brands, brands that are unfamiliar to everyone, and a large part of them are high-quality factories at the source. As shared by the previous guests, the production and manufacturing capabilities, commodity packaging capabilities, marketing planning capabilities and channel layout capabilities of merchants have actually been well exercised in the past few decades. After the new traffic of live e-commerce has grown, these experienced merchants have the opportunity to rush out of the new blue ocean market.
In general, live e-commerce has created new opportunities for new brands to rush out, and there are several core reasons behind it:
First, the new scene: live e-commerce is a new scene that breaks out rapidly; second, new users: in addition to first-tier cities, live e-commerce can also cover most low-tier cities, as well as a number of new young users, and not just online shopping users; third, new logic: the private domain and trust established between anchors and fans make transactions happen more quickly; fourth, new touchpoints: the rapid rise of mid-waist e-commerce anchors, so that brands have a wider range of channels to influence consumers. The combination of these factors makes new brands have an important opportunity to rush out.
In addition, share the experience of magic chopsticks in jointly building new brands with suppliers and merchants. The methodology distilled is essential for building a new brand.
First, the selection is very important and contains three key factors:
First, the selection of the target market, that is, to determine whether the market segment is in the rising dividend period.
Second, the fixed point - product cost structure, as the first guest shared, is it to create a high-margin product or a cost-effective product? Different types of products will make the marketing promotion strategy very different.
Third, positioning – looking for unique selling points that will make consumers notice your product features among many products and speed up purchase decisions.
In fact, the live e-commerce field adopts a hierarchical promotion strategy, the amount of sound of the head anchor, and the sales of the middle waist anchor belt. These energies of live streaming channels will spill over to other channels and communities, driving overall brand sales. In short, for building a new brand, the live e-commerce field, as a new channel form, can achieve both brand voice and product sales. Therefore, when tapping potential commodities, two aspects need to be considered:
First, it depends on the potential categories of the new consumer market, as well as the size of the track of its own industry, and how fast the growth rate is. We have observed that fields such as instant noodles and instant food, brewing and drinking, and household daily use are growing very fast, and have very large potential categories. These categories can be perfectly combined with the live broadcast scene.
Second, it depends on the goods and the merchants themselves. We summarized five key points: one is good display, that is, the product needs to have an intuitive and friendly scene display, which is convenient for the anchor to display its selling points and characteristics in the live broadcast room; the second is a good commodity, that is, the quality of the product itself should be good, the packaging should have characteristics, so that consumers have a sense of gain; the third is the cost performance, which is also the main point that live e-commerce is easy to impress consumers; the fourth is good service, such as timely delivery, after-sales perfection, which is an important factor affecting consumer decision-making and repurchase; fifth, good repurchase, after the above points are done, Repurchase is only a matter of results.
Under the guidance of these methodologies, Magic Chopsticks has cooperated with suppliers in the past few years to create a series of blockbusters, such as instant noodles and instant food, beauty products, health foods, toothpaste and so on.
Taking snail powder as an example, Heweifang is a partner of Magic Chopsticks, which was originally an offline store that has been operating for 21 years. When transforming online, their original plan was to make the goods into simple pre-packages and open up online sales channels. The magic chopsticks have repositioned this product and the supplier, including price, packaging, etc. Magic Chopsticks identified the packaging of goods that the public could not find the difference to hong Kong-style packaging, and found the reasonable price of the goods through multiple promotion tests.
After that, Heweifang quickly played some "quantities" in the Kuaishou channel, and these "quantities" quickly spilled over to e-commerce channels such as Tmall and Taobao. For example, in the Via live broadcast room, Hewei Fang has appeared no less than six times, and it has become a hot commodity just after entering the Via live broadcast room. Then, magic chopsticks and suppliers jointly designed joint models, such as joint names with Lang Stomach Immortals, which further upgraded the brand influence; at the same time, it also found an influential star - Strings for endorsement. This year's 618, Heweifang rushed from many snail powder brands to tmall third.
In addition, there are also many well-known and hot brands in the Kuaishou ecosystem, and they have also become hot brands in other e-commerce platforms.
The second example is Corick toothpaste. Last year, Magic Chopsticks partnered with suppliers to launch a toothpaste. This toothpaste itself has a strong product power. The founder of the product is a family of traditional Chinese medicine and has conducted in-depth research on traditional Chinese medicine. The toothpaste made in the end is indeed extraordinary in terms of swelling reduction and pain relief.
However, Corick's toothpaste could not be beaten in the original sales channels. Magic Chopsticks introduced it to live e-commerce and reprised it through data analysis. At present, the toothpaste has a strong competitiveness in the same price range. At the same time, magic chopsticks have also upgraded the packaging of this toothpaste, so that consumers can perceive the grade and texture of the packaging. Finally, magic chopsticks also appropriately give anchors the expected sales returns. As a result, this toothpaste quickly became a hit on the Kuaishou platform, and then transferred from Kuaishou wholesale to community distribution. The repurchase rate of this toothpaste is now very high, and the loyalty of the anchor is becoming more and more prominent, so the monthly gmv is stable at the level of 10 million or 20 million.
The third example is the enzyme jelly created by magic chopsticks and suppliers. Enzyme jelly is a functional product that can help with weight management. The enzyme jelly was originally in the micro-business channel and did not achieve good sales. Therefore, magic chopsticks use the same methodology to help suppliers reorganize the packaging, positioning, selling points, etc. of the goods. At the same time, magic chopsticks also systematically sorted out the sales skills and after-sales service system of the product. Finally, the product carries out multi-level and multi-band marketing promotion among different anchors of Kuaishou. Last month, this product achieved a breakthrough from no one to 30 million monthly gamv, and ranked first in similar products.
One of the important factors for the sustainable growth of products in the live e-commerce channel is the ability to perform contracts.
In terms of warehousing and logistics, Magic Chopsticks can provide merchants with a solution dedicated to live e-commerce - "Cloud Warehouse". At present, the 9-hour delivery rate of the magic chopstick cloud warehouse can reach 90%, and the 24-hour delivery rate can reach 99%. This will further enhance the consumer shopping experience, reduce the cost-out rate of consumers and improve the operational efficiency of merchants. Compared with the merchants to build their own warehouses, the solution provided by magic chopsticks has greatly reduced the operating costs. For live e-commerce, we need to organize warehousing and delivery according to the pulse-type sales law. The magic chopsticks use the form of "cloud warehouse" to help merchants solve the pain points.
Magic chopsticks can also provide after-sales protection and cloud customer service capabilities for anchors and merchants. At present, the cloud customer service of Magic Chopsticks can achieve 7×24 hours of service, the team size has reached more than 500 people, can undertake the pre-sales and after-sales consulting needs in live e-commerce, and the praise rate has been maintained at more than 95%.
In addition to daily sales, magic chopsticks also have staged festivals and activities. Among them, it includes special activities for head anchors, annual large-scale activities with goods, monthly promotional activities, traceability and other special activities, as well as linkage activities with platforms such as Kuaishou, helping brands to continuously improve their voice and sales.
The realism of the live broadcast process can bring consumer trust and can also bring more exposure opportunities for brands. Traceability activities are important activities to achieve trust, exposure and sales, and are also the characteristics and focus of magic chopsticks, and Kuaishou anchors also prefer such activities. They are keen to go to manufacturers, production lines, and even the source of the supply chain to shoot content materials, showing consumers how goods are produced, how to ensure quality, and how to assemble lines, so as to increase consumers' desire to shop and trust. To this end, magic chopsticks have built a number of traceability bases in the industrial belt, such as the traceability base of snail powder in Liuzhou, the traceability base of seafood in Weihai, the traceability base of fruit in Dalian, and the traceability base of tea in Yunnan. Through this year's local characteristic industrial layout, Magic Chopsticks will lead anchors to these factories to trace the source, while increasing brand exposure opportunities and providing consumers with more high-quality source goods.
At present, there is a hot concept called "private domain asset management", which is essentially the management of customer assets by merchants. Magic Chopsticks can provide you with a private domain asset management tool called "Cool Butler". Based on the capabilities of enterprise WeChat, this tool helps merchants better manage fan assets, drive sales, and import these "assets" into the live broadcast ecosystem. For example, when doing self-broadcasting, import the live broadcast room to better enhance the popularity of the live broadcast room. And these are all effective ways to play in the live e-commerce ecosystem, which has been practiced and parallel. The combination of private domain traffic and live e-commerce is essentially the combination of private domain traffic and public domain traffic. Magic chopsticks provide merchants with convenient tools to achieve the combination of private domain and public domain.
This year, the focus of magic chopsticks will shift to the source factory. We will empower more than a thousand source factories, set up dozens or even hundreds of traceability bases, and will introduce hundreds of well-known brands to help merchants establish strong distribution channels on the basis of self-broadcasting.
In a word, Darwin said that the species that survive are neither the strongest nor the most intelligent, but the most adaptable to changes in the environment. The variables and impact of live e-commerce in the fields of retail and e-commerce have created unprecedented opportunities. Magic Chopsticks hopes to adapt to changes with all partners, meet opportunities, and cooperate for win-win results.