How Long Is The Live Broadcast Of E-Commerce

According to data provided by Tiger securities, on August 5, the ban on fast hand's 3.882 billion shares was lifted. The trading volume reached 40.9954 million shares from less than 10 million shares on weekdays. Its share price also dropped from 100 yuan per share at the opening to HK $89.4. The drop was so large that many people even suspected that old shareholders were escaping at a discount.

Live e-commerce has been a hot topic in the past two years. Almost every e-commerce or short video platform has participated in it to complete the commercialization. The same is true of fast hand. It has been busy doing e-commerce all the time. For this reason, it has put forward three "big businesses": building trust in e-commerce, building brands, and building service providers.

But people in the secondary market don't seem to buy it. To a certain extent, e-commerce live broadcasting only complicates and enlarges the purchasing actions of consumers, forming the so-called selection, supply chain, live broadcast, etc. For short video, the weight biased towards e-commerce means that the original content ecology has been ignored and the most important anchor of short video has been lost. We can refer to station B for some loss in content and commercialization, and the user stickiness is maintained relatively well.

Of course, after going public, fast hands want to find core business + innovation business, so as to find the second growth curve, but at present, e-commerce live broadcast can only be regarded as a tuyere type business, not an industry, and the official explanation of the stock price decline seems powerless. Based on this, the new eye will focus on the current situation and future analysis of fast hand.

The past and present life of live E-commerce

The year of 2016, in which 4G drives the rapid development of live broadcasting, is usually regarded as the first year of mobile live broadcasting.

But if we trace back to the source, when the mobile Internet was just in its infancy, the forerunner of live e-commerce, e-commerce shopping guide community, had already taken shape. In 2009 and 2011, the content-driven shopping guide community beauty theory and mushroom Street appeared one after another. Users shared, exchanged and commented on commodities in the community, and forwarded the content to microblog, QQ, Douban and other platforms with greater traffic.

The shopping guide community, which takes the webpage as the carrier, forms the community ecology driven by pugc through the settlement of online celebrities, bloggers, models and other shopping guides. The so-called shopping guide community ecology is highly similar to the quick e-commerce ecology of building trust relationship mentioned later.

It can be said that the emergence of Meili theory and mushroom street makes consumers more involved in the operation of online commerce.

In a sense, these business actions are the incubators of Internet red economy. In 2016, Taobao live broadcast and mushroom Street live broadcast were the first to start, with more dynamic media platforms. After completing the initial user traffic accumulation, they began to expand business and develop e-commerce platform based on live broadcast. At this time, live e-commerce also officially came from the web to the app.

We all know the story after that. In only three years, live e-commerce ushered in a blowout development:

In 2017, the mode of live broadcast and goods delivery will be started quickly; Suning app online live broadcast function. In 2018, Amazon launched live webcast service; Jingdong fashion promotes live broadcasting with goods in the "Jingxing plan"; Tremolo carries out large-scale e-commerce with goods in short videos and live broadcast. In December of the same year, the function of shaking tone shopping cart was officially opened for application. In 2019, pinduoduo tries to bring goods live for the first time; Tencent announced the "gravitational wave" plan on live broadcast; Xiaohongshu announced that it was about to officially launch live e-commerce; Wechat public account first tried to carry goods live.

02 "number" game

From the perspective of time dimension, express is even the earliest group to enter.

After its birth, fast e-commerce has developed rapidly. The daily life has exceeded 100 million yuan, and the payment for a single live broadcast reached 1.25 billion yuan. The early fast e-commerce was built from scratch. In the front, there were top enterprises focusing on e-commerce, and then there were short video competitions such as chattering sound. In order to get market share, the core was the algorithm mechanism of private domain traffic and the community construction of trust relationship.

In the view of most industry insiders, the difference between fast hand and tremolo in the past is the original difference between public and private traffic. In the early stage, the shaking tone mainly relied on the public domain flow to form the flow advantage, and the source of cash flow was mainly advertising revenue. However, the early commercialization path of fast hand was not advertising, but live reward.

The essence of reward is the realization of trust relationship.

The business logic behind it is the same from the reward to the delivery. One is the fast decentralized traffic distribution mechanism, which is also the source of private traffic. For e-commerce platforms such as Taobao and Jingdong, if they don't do private domain, they worry about the dispersion of traffic and form a conflict between left and right. On the contrary, they don't interfere too much with the content types of platforms. The proportion of private domain traffic allocated to users is as high as 30%.

The second is the vivid and real content characteristics. In view of the traffic characteristics of the express platform, most of the talents do not have the professional conditions and creative experience. Therefore, the content of the express platform is more vivid and real, and more attention is paid to the cultivation of the relationship with fans. This is the main way for the fast e-commerce to build a community with trust. According to the research on the e-commerce marketing value of the express platform released by the second hand system, 32% of the express users will buy products because they trust the anchor's recommendation.

Third, it is a unique "interactive second list mechanism". The operation process of the mechanism is that fans "brush gifts" for the anchor. After winning the first place in the list of gifts, the anchor will use his own resources to drain the fans, so as to help them sell goods with their own popularity. Through this "mutual benefit" way, fans and anchors enhance trust and emotional connection.

From this, we can see that the fast e-commerce model is similar to Simba. Through the old fast rail community, we can establish the relationship between people and trust for ourselves. On this basis, we can make use of the platform rules and flow playing methods. The tremolo game is more like Li Jiaqi, which has established a professional influence in a certain field and tends to drive consumers to buy impulsively.

Based on the authenticity of the original ecological content and the trust value of private traffic, the derived Koc marketing model promotes the anchor's effect of carrying goods.

The so-called Koc is consumers who experience products in depth. Most of the content they share is their own personal experience. The marketing process pays more attention to the interaction with fans. Although the content is rough, it brings high trust value and interaction value because of its authenticity. It can expose the platform and realize extremely high transformation. This is also where the short video platforms such as fast hand and tremolo are different from other e-commerce platforms.

It can not only be evaluated by video, but also be transmitted by consumers.

In addition to the flow mechanism, the characteristics of fast e-commerce are: cost performance and direct product sales. The reason is very simple. The fast hand mainly covers the sinking market of the third, fourth and fifth tier cities. This is the main reason why the fast hand can establish a trust relationship, and it is also the difference between the fast hand and the tremolo. Intuitively speaking, the tremolo is not "earthy".

Different from persuading first-line and second-line consumers to pay for their products, it is necessary to tell users why their products are more worth buying and why their products are more advantageous. In express, you can't talk about brand, but about cost performance and practicality.

From the anchor attribute of the whole express, there are a large number of anchors in factories, places of origin and industrial chain, and their live content is also connected with their attributes. At the same time, fasthand also helps anchors to establish a live broadcasting base at the source through the layout of the industrial belt, and actively coordinates with the demand of the anchor to bring goods from the source. The core of the industrial belt live e-commerce is to operate around the aspects of category selection and quality control, rich industrial chain resources, and third-party services, forming a mode of "good products from the source".

It can be seen that the express e-commerce mode based on emotion is very unique, even can be said to be the only one. However, in the past, the express e-commerce is still an accessory of the main business of short video content output. Its relationship is similar to the relationship between the video owner of station B and "qifanfan", and the main force is still video production.

03   How long can the flywheel of e-commerce live broadcast rotate?

It's hard to understand how fast hands this year's action in the field of e-commerce live broadcasting.

In the past few years, fasthand has been working on content + e-commerce. Now, Xiaogu, the person in charge of fast e-commerce, said at the fast e-commerce service provider conference that the three key words of this year's fast e-commerce will be: to build trust in e-commerce, to build a brand, and to engage in service providers. The "big business" strategy means to vigorously promote the fast e-commerce ecology with the brand + service provider as the core.

We should know that the starting line of fast e-commerce is industrial belt goods, at that time, they focused more on the pursuit of cost performance. Now, with the growth of the scale of fast hand users, the demand for goods has become more diversified. In addition to the white brand products in the industrial belt, fast hand users also have a strong demand for brand goods.

This has left a problem for the fast hand, that is, how to balance the e-commerce and the community.

Because from an ecological point of view, compared with the head anchor, the middle waist anchor is the target of quick hand. Compared with a Simba, express hopes to hatch tens of millions of small and medium-sized Simba on the platform in the future. However, the entrance of big brands will obviously break the ecological balance of fast hand. Unlike the cooperation mode of head anchor and brand, the middle and low back anchor and brand directly form a competitive relationship. No matter in price war or supply chain, these anchors are difficult to have advantages. If the express is not protected, it will inevitably lead to big brands squeezing the survival space of small and medium-sized anchors.

In addition, the rapid development of e-commerce is bound to face the decline in the quality of the content, and the business atmosphere is even stronger. Brand promotion needs traffic support, content creators change to selling anchor, whether the original content can still get quality? We need to draw a question mark. Whether the anchor will lose fans with goods, and whether fast e-commerce will lose users are all the places that need to be considered.

For the fast hand, whose main task is to operate platform content and build content ecology, the establishment of online sales system is always a problem after getting involved in the e-commerce industry.

From the point of view of operation, the e-commerce department is set as a first-class department, and the flash purchase function is launched. Merchants explain and describe the goods in the live broadcast, maintain the price and inventory of goods, and quickly create new products for consumers to place orders through the system's automatic screenshots. From the point of view of the purchase process, fast hand gradually closes the third-party shopping links and builds its own "quick shop". On the one hand, it hopes to improve the construction of its own e-commerce ecology, on the other hand, it also avoids the loss of platform users.

In the process of payment, we should create payment trademark and obtain payment license, trying to construct our own payment system. According to the enterprise survey data, Beijing Dajia Internet Information Technology Co., Ltd., a subsidiary of Kuaishou, applied for several trademarks named "laotiepai" in August last year. In November of the same year, fasthand acquired the payment license indirectly through the acquisition of Yilian payment, a licensed payment institution.

These measures are enough to show that the development focus of fast hand has deviated.

The problem is that it is not easy to re-establish the e-commerce infrastructure, especially in Taobao, Jingdong and other e-commerce platforms. Kuai Shou does not have experience and advantages. Even in the private areas that we are proud of, there are also companies like youzan and Shopify in the e-commerce sector. The e-commerce platforms currently built by fasthand seem to be comprehensive, but there is still a big gap in refinement and completeness.

On the one hand, logistics, after-sales and other issues can not be avoided.

It was mentioned in the cooperation agreement between Kuaishou and Jingdong that "kuaihou users will be able to directly purchase Jingdong's self operated commodities in Kuaishou stores, and enjoy Jingdong's high-quality distribution and after-sales services.". In fact, this also means that Kuai has not prepared itself for the logistics after-sales, and the phenomenon of "poor after-sales" and "difficult to protect rights" frequently appeared in the live delivery industry with goods has become a serious problem. This is the problem that should be considered by express.

On the other hand, supply chain is the obvious short board of fast hand. Compared with the commodity pool and logistics system established by Taobao and Jingdong for many years, the fast hand in a short period of time is obviously unable to compete with it. In recent years, e-commerce platforms such as Taobao, pinduoduo and Jingdong have flocked to the industrial belt to obtain a higher level by reducing intermediate links. For express, once there are loopholes in the supply chain, it will inevitably affect the cooperation with industrial belt and live broadcasting base. The implication is that it is urgent to improve and upgrade the supply chain.

Apart from these objective factors, as mentioned above, whether e-commerce live broadcasting itself can become a field of "people", "goods" and "market" is also open to discussion and reflection.