Take 330 Million Of The Goods A Day.

At 8 pm on June 30, 2019, Liu Yan, a famous host in the mainland, made a live broadcast on his fast hand. Unlike Huang Bo and others in his fast acting promotional works, Liu Yan only did one thing in 3.5 hours of live broadcast: selling.

Most of the events in the live broadcast are blooming and annihilating in the private domain. Few hot spots penetrate the circle and reach the general public. For example, Liu Yan invited 13 fast sellers to sell with her. The names were Gaudi, Ping Rong, Bai Xiaobai, Li Minglin, two sons, and those who did not go to the fast track sounded confused, but they were the kings in the fast hands.

For example, Ms. Ping Rong, the first queen of fridge refrigerator, is a Heilongjiang man named Yuan Lin, nicknamed the "two donkey". The two husband and wife are walking on the northeast old iron making fun. On the night of the activity, Liu Yan thanked Ping Rong for his support and praised the donkey sister. In the later delivery, the two were actively cooperating and sold the "24K Gold Collagen tearing mask".

On the night of the activity, Liu Yan sold 18 products, such as 139 yuan vacuum cleaner, 29.9 yuan three bottles of shampoo, 39.9 yuan three imported toothpaste, and the price was "touching". After the end of the live broadcast, the relevant parties disclosed the data of delivery: Live 2 minutes, sell 25 thousand orders, broadcast 2 hours, 55 minutes, sales break 10 million, a charging Juicer sold 1 million 630 thousand yuan, and a shampoo sold 43800 bottles...

A senior electricity supplier researcher said: considering the early developments, this data may be amazing in the eyes of laymen, but it is very common in the net red world.

Take Ping she as an example. A week before Liu Yan's live broadcast, Ping Rong and her husband "two donkeys" have planned a grand "JLV night of the long deer". They have come to the stars such as Jimmy Lin, Li Yuchun, Kelly Chan, Hua Shao and so on. The effect is amazing, with sales exceeding 40 million. They are mainly created by the couple's own "JLV" micro brand, and the profit is very rich.

In the event, the microphone in the middle is "two donkey" well Yuan Lin.

In the wider net red world, the two donkey couples still can not row the number. Taobao's red "Viya" sold 3.3 billion goods last year, and created 2 billion of the total volume in the whole year. The volume of one person's goods is almost 50% of the highest sales center in Shanghai, Lujiazui's national gold center. In a live broadcast, she just introduced a snack, and 60 thousand stocks were robbed in 1 seconds.

In terms of carrying goods, entertainers are not the opponents of net red at all. It is said that a mask brand smashed 500 thousand with a well-known host of mango platform, and sold 3 boxes altogether.

The emergence of net red is the result of the common prosperity of the two fields of China's Internet and consumer market. With the increasing purchasing power of Chinese people, clothing, catering, real estate, automobiles... There is huge consumption demand in all trades and professions. Net red products and opinions are undoubtedly a kind of reference that consumers rely heavily on. Net red as a part of the most close to consumers contains huge business opportunities.

From luxurious luxury to the barbecue stalls in the market, it seems that if we dare to attract attention, we can become a net red, and then we will have a rolling financial resource. But this is not the case. There is a very deep business logic behind the net red economy. Therefore, we summarize four principles from the perspective of economics. Please take note of the notes of FA (CAI):

1. unlimited replication: the secret of marginal cost

2. label making: the knack of positioning theory

3. fast arrival of passenger officers: signal transmission model

The 4. is to transform the intangible assets into the real ones.

The following is part of the text.

Infinite replication

The secret of marginal cost

The history of Liu Bei's development is a history of net red V.

Liu Bei, a born and lost royal family, earns only one pair of money by selling sandal shoes in the early years. If he wants to earn more money, he must have more straw sandals. At this stage, if Liu Bei is regarded as a product manager, his product is straw sandals, whose core elements are: low gross profit, low unit price, high marginal cost, and no scale replication.

When the yellow towel was in chaos, the hero came out in great numbers. Liu Bei's career switched from selling shoes to competing for hegemony. After the uprising, Liu Bei emphasized his noble status and created his own benevolent label. The product became a reputation of "Ren Jun". The core elements are: high maintenance costs (for example, withdrawal to bring the people), but the zero marginal cost can be copied indefinitely.

Chen Shou's evaluation of Liu Bei is: "Hirotake Hiroshihou knows people to be a scholar, and has the wind of high Zu." In fact, most of Liu Bei's resources, especially talent, are derived from his low marginal cost product structure.

The marginal cost, that is, the increment of total cost per unit of production per unit product, corresponds to marginal revenue. There is no doubt that fame can effectively reduce marginal costs. In Liu Bei's case, becoming a net red can make him collect countless resources by virtue of the banner of benevolence and righteousness. Compared to Cao Cao's "mercy" and Sun Quan's "interest binding", Liu Bei's acquisition cost is very low.

Eileen Chang said: "fame should take place as early as possible" means to switch from the traditional "high marginal cost" track to the "low marginal cost" net red race track.

For example, Wang Gang, a gourmet. When Wang Gang was 12 years old, he fried a green pepper shredded meat at his uncle's house and buried the seeds of the chef's dream. But this idea was strongly opposed by his father. He finally ran away from home and went to Zhuhai to find a restaurant to work. Wang Gang's parents are chefs for generations. They believe that cooking is a means of making a living, and can not change their destiny.

The same is true. Wang Gang studied day and night, cooking skills rose, but it was nothing more than changing from a small hotel to a large hotel. From cooking a dish to hundreds of dishes, the time and energy spent on each dish did not decrease at all, and the profits generated only increased linearly. Until March 2017, Wang Gang registered the live broadcast account, uploaded the video of "Pan dragon eggplant" with his mobile phone, and intentionally or unconsciously switched the track.

Wang Gang's Cooking Video suddenly became popular, and fans quickly increased to about 4000000 of the whole network. As the video brought more income than the wages of fried dishes and increased, Wang Gang finally quit his job in October, set up his own studio, completed the conversion from cook to customer chef, to teach people how to stir fry dishes for the big V, and realized the astonishing fame and gain of parents.

Wang Gang's success is the two step: turning the cooking experience into a video, using the Internet to spread quickly and extensively, from cooking for dozens of people to teaching millions of people to cook, the marginal cost is greatly reduced.

This example of "value reduction" by "reducing marginal cost of knowledge and skills" is everywhere. When Yu Minhong tried to study abroad and became an English teacher to study abroad, he immediately earned a lot of money and attracted the kidnapper. Professor Xue Zhaofeng worked hard at Peking University for many years, but he didn't do it for foreigners. He boarded the book and said he was famous and became a national mentor.

Most people's work is essentially selling their own time. The chef's exploding bombing and the programmer's selling code are nothing more than the difference between time and price, and why 996 is difficult to achieve exponential growth in income. But by becoming net red, reducing the marginal cost of knowledge and skills, the benefits of the same pay are totally different.

Whether you are a fitness coach or a real estate agent, China is so large a market that it is enough to generate net red. Room, interior decoration, pet training... Any skill is enough to achieve wealth freedom after the marginal cost is zero.

Go to the jitter, go to the fast track, and go to the traffic center. Net red is a vast world, where it can make a lot of progress.

Manufacturing label

The knack of positioning theory

God is not afraid of land, not afraid of Jiaqi Oh My God!

Chinese women's wallet had to face the new "devil" in 2019. Li Jiaqi, who has a face like a jade and a fat lipstick, can be called a copycat genius. He depicts the colorful images of those straight men in the red lipstick, small color, fairy color, young girl's spring color and hostess color. A sincere "buy it" is enough to convince fans that the lipstick can be incarnated into Ouyang Nana.

140 million of the tune and the title of Taobao's first beauty advocate are not enough to show Li Jiaqi's strong cargo carrying capacity. In the just concluded 618 electricity supplier war, "after watching Li Jiaqi live to eat soil" again boarded hot search, whether it is 3 minutes sold 5000 single Shiseido red kidney, or 1 minutes sold out 40 thousand, Japan imported cast iron pot is amazing, the grass planted enough to cover Hulun Buir big grass original.

More than 200 kilograms of Chu leader, originally wanted to see Li Jiaqi live broadcast to learn how to become net red, the result of watching 10 minutes to start two elite water. I also talked with my colleagues about some difficult words, "what is the main ingredient is white, cool and greasy, sensitive to the muscle" and so on, so that everyone laughed, and the office was full of happy air inside and outside.

As the phenomenal net red, Li Jiaqi's commercial value is not bad. Not long ago, the industry widely announced that its short video promotion price was as high as 500 thousand, but still let advertisers break the threshold. Data from CCTV Market Research (CTR) show that in the first quarter of 2019, the traditional advertising market dropped by 16.2%. The traditional media's illusory exposure is hard to say in terms of Li Jiaqi's solid and solid volume.

Li Jiaqi, who is shooting short videos, 2018.

In an interview, Li Jiaqi revealed 365 days in a year, the fatigue of the 389 live broadcast, and the anxiety that his mouth was too hot to stop. This made people more love for the skinny boy who was paralyzed in a senior grey sweater. But the truth of success has always been more than hard work. Li Jiaqi's true commercial logic that stands out from many networks is positioning theory.

In 1971, the Pope, Ogilvy, bought a full page of the New York Times, which used to announce the 38 ways he believed to create the most productive advertising. He said, "the effect of advertising depends more on the location of the product than on how to advertise it." The following year, the Advertising Age published a series of articles by the marketing masters Ai Chis and Jack Traut, "the coming of the positioning era", which announced the birth of the positioning theory.

The core of positioning theory is not to locate products, but to locate products in the minds of prospective customers, so as to ensure that products can have a favorable image in the minds of potential customers.

In the field of beauty make-up, competition has always been fierce. The image of Li Jiaqi as a male in this track itself has the advantage of first mover. How can we quickly brand the anchor IP in the hearts of young women in the target consumer group? Li Jiaqi cleverly positioned himself as a lipstick.

Lipstick, due to its diversity of products and low unit price, is the single most likely to grow grass in the field of cosmetics. There are certain technical requirements for makeup and eye makeup. Lipstick is easy for everyone. Li Jiaqi's understanding of girls' consumption psychology is directly related to people's heart. "You may as well wear Armani red tube 400 than LV. Boys will always look at your mouth red first!" This is a direct attack on the hearts of female consumers.

The experience of L'OREAL make-up artist has given Li Jiaqi the professionalism. Diss's big name, anger, and no products have been set up by the honest and upright person. The position of "buying lipstick to find Li Jiaqi" has been implanted in the hearts of fans. A 60 year old aunt has sent messages to him. "I am very glad to know you when I was 60 years old, and let me know that I used to paint lipstick so well."

Through endorsement and support of the big business platforms, Li Jiaqi successfully positioned his own lipstick image to fans' hearts. The heart to heart style of live broadcast is specially created for female fans: "painted this lovelorn time, the old woman becomes Hsu Chi Ben Qi", "painted the air field 2.8 meter, suitable for taking part in the wedding of an ex boyfriend". Which girl does not want a boyfriend who can talk about makeup?

Positioning is to take root in the minds of fans, and look at Li Jiaqi's red jump. You will find the details full of positioning theory, even those seemingly casual mantra, are all important labels to enhance the impression of popularity. Therefore, when you decide to take the Red Road, we must think clearly how to do well in the positioning of prospective customers.

According to legend, the 5 cruel people in modern society are:

Fortune teller: "what are you?"

The key is: "do you deserve it? How many pairs? "

Courier brother: "are you large or small?"

Aunt Shanghai: "what rubbish are you?"

Dripping driver: "I don't think you have a clear idea of your position!"

Questions interrogate the mind, enlighten the deaf, especially the drier's question: whether or not we want to become a net red, people should understand their position and find out what they are, what goods and what rubbish they are.

The visiting officers came quickly.

Signal transmission model

In 1971, Michael Spencer, a PhD in economics at Harvard University, observed an interesting phenomenon.

At Harvard Business School, MBA students can get several times the salaries of professors after graduation. However, these students are basically sparse in their jobs before entering school. Is Harvard education enough to enable students to achieve breakthroughs in the short term? Spencer, who is suspicious of heart, has launched a series of studies, and has written his doctoral dissertation "labor market signals" accordingly.

Spencer put forward a refreshing model, the employee's working ability will not be written on the forehead like the combat effectiveness in the comic book, but the employer only has to pay high ability to the high ability staff, and to the low ability staff to send the low wages, only then can cause the company's labor and capital assignment to achieve the efficiency optimization. So what employers need is: employees voluntarily release signals to employers to show their ability to work.

Under normal circumstances, the more relaxed and highly educated employees are, the more competent they are. Therefore, education has become a signal sent to employers by employees with high working ability to prove their ability to work in line with high wages. In this model, education does not improve one's ability in itself. It is purely for the purpose of "signalling" or "sending signals" to the employer to show that he is a capable person.

This is the famous signal transmission model. In real life, the market often exists asymmetric information, such as small shareholders do not understand the real situation of the operation of the enterprise; banks do not understand the real credit of the borrower. The signal transmission model explains the reaction of the two sides to this asymmetric information very well: the information superiority party tends to release a signal with a certain cost to add credit to its own information.

There may be no essential change in students' ability to get MBA education, but they send a strong signal to the enterprise that I am an excellent person.

This creative model explains many unimaginable social phenomena in the past. For example, the Eight Legged body has no effect, but it has effectively maintained the official selection in the 500 years of Ming and Qing Dynasties. Its purpose is to let the examinees release the signals to the court to have considerable cost (learning eight strands) to show their ability and loyalty.

Spencer won the Nobel prize in economics in 2001 for his outstanding contribution in this field. But what he did not expect was that a large number of net Red Companies in China applied his information transfer model to their own commercial realisation.

Left: 2001 Nobel Economics Prize winner, Luo Han Tang Luo Han Tang academic committee member Michael Spencer; right: Ma Yun

Micro-blog CEO Wang Gaofei once forwarded comments on micro-blog, who opened the Taobao store by net red "Li Ziqi". "In fact, in recent years, the real success of net red has not been a way of thinking about mass content. First, it is positioning the product, then positioning the target audience accurately, doing these things for those people to do their favorite content, and then making products, to a certain scale, never to invest in powder again.

The first half of Wang Gaofei's comment is about the positioning theory we mentioned in the last paragraph. The second half is the signal theory: net red needs to release signals with a certain cost to fans with potential consumption desire, so as to screen out the core traffic with real commercial value.

Then who is Li Zi Qi? The famous ancient wind bloggers at micro-blog and B station, who are exhausted in the second tier reinforced concrete city, are surprised to see this girl who is always in white clothes, making wine, planting vegetables and cooking delicious food in the mountains and wilderness. Making video on bakery, swing and so on is a stunning modern man with weak hands. Pastoral style, melodious music, and Li Zi's video have become fans' yearning for life.

Hundreds of millions of video footage and nearly twenty million fans are enough to show their love for Li Ziqi's little sister, and even about two million subscribers are catching up with her on YouTube. Europeans, Japanese and Americans have sent messages to express their longing for Chinese food and rural life. Li Zi Qi has also become a banner of Chinese cultural output.

However, despite the fact that fans are sitting on a large scale, Li Qi also needs to screen out customers who are willing to pay for them.

Wang Gaofei commented: "the situation of Li Zi Qi belongs to the content beyond expectations, and it brings a lot of non target users, which is not good for selling products"; "experienced red people will wash powder, you see, some sales volume of hundreds of millions of fans, most of the fans are millions of magnitude, this is like shop, you shop in too many non target users, sales will drop."

In fact, Li Zi Qi has not received brand advertisements for a long time, which in itself conveys quite a cost signal to fans, Li Zi Qi pays attention to quality and does not covet small profits. In fact, the top real traffic of Li Zi Qi is worth millions of dollars. Abandoning the commercial value of advertising and seeking to carve out personal brand, Li Zi Qi's move is obviously in the long run.

In August 2018, Li Zi Qi continued to introduce videos of the same product before launching the video, while playing the concept of "seven family" to strengthen fans' identity. By constantly releasing the signal, when Li Ziqi announced that he was going to launch his Tmall flagship store in August 17th, he did not attract fans' revulsion, but he had a good reputation.

Simply put: net red does not know which users will pay for products. It needs to use signal transmission theory to continuously release effective signals to screen out those willing to pay fans and achieve breakthroughs in business value.

Net red is not as red as possible. Paul Graham, a founder of Silicon Valley entrepreneurship, has a famous saying: for a new product, 100 iron powder is better than 10000 users who think you can still. In this era of Internet that anyone can be famous for 15 minutes, it is not difficult to accumulate a certain amount of traffic. It is difficult to find out the deep fans who are willing to pay the price by passing signals through content.

Removing deficiency into reality

The production of intangible assets

In November 3, 2018, the League of Champions League finals was held at the Hitoshikawa Fumitsuru stadium in Korea. The Chinese team, IG, beat the European team FNC three to nothing, winning the first championship of the Chinese League in the S series. Nearly 60 million people watched the focus of the battle at B station. Social media was swept up in the annals of IG, the top of China's E-sports and photos of Wang Sicong's hot dog.

The IG team only gets 5 million 840 thousand of the total champion prize, and since then the selling price is nearly 500 yuan. Another popular team RNG's sponsorship includes Mercedes Benz, Nike and other international cards. With the gradual clearer business mode and good mass foundation, E-sports has obviously become a sunrise industry. However, it is not known that E-sports had once been rescued by a piece of floss.

In 2006, Li Xiaofeng won the title of WCG Warcraft champion. The shyness "emperor" put on the five star red flag and picked up the advertisement sign of the symbolic bonus, igniting countless Olympic flame with the ideal youth in the electronic competition. However, in the context of unclear business models and unsupported public opinion, E-sports have gone through a long dark year.

Black Internet bar, bonus buckled, Datong shop... It is the collective memory of E-sports athletes in that era. Even before the industry capital intervened, even the top professional players could hardly earn their living. Wang Zhaohui, who won the dota2 World Championships in 2014, is the most recollection of those days.

At that time, Wang Zhaohui and other top players were already the top net red. Tens of millions of players across the country watched their video games and analyzed their sharp operations. However, the professional athlete at that time did not realize how the net red could be realized, and he was still running around the country on a green train to participate in all kinds of tournaments with limited bonus.

The turning point of the industry took place in 2010. This year, Taobao's double eleven big push to achieve a single day sales exceeded 900 million yuan, indicating that China's electricity supplier entered a mature era. The Youku, which landed on the NASDAQ in the same year, represents the Chinese video industry entering the fast lane. This year, Dota game commentary Haitao creatively introduced the business mode of "video content + Taobao diversion", and a brand new era came.

The professional player, Wu Sheng, graduated from the Department of biomedical engineering of Zhejiang University, quickly promoted this model. At the same time, a series of videos of 09dota from "zero single row" and "09 improvement class" were popular at the same time, and his Taobao store also made a lot of money. "Wu Sheng 2009 snacks in the store, I buy the most expensive suit, buy and throw trash cans, and sign photos to stay, just to give 2009 Taobao crown." This incredible message is the most true portrayal of that time.

Since then, professional players who do not earn money in games have started selling snacks in Taobao stores, while the low price, high calorie and digestible meat flakes have become the single most suitable items for game otaku men. LoL retired players, if the wind claims that they can sell 800 thousand yuan meat floss every day in live broadcast. After the cold winter E-sports finally came to Wang Sicong's "strong entry, integration of competition", and the meat pancake saving E-sports became a legend.

Net red has fame and fans, but if it can not be precipitated into products that can be replicated and have consumption scenes, then it will eventually be spent in wells. The commercialization of intangible assets is the business logic that net red must clarify. If we fail to do this, we will only end up with the tide of traffic.

The production of intangible assets has always been an important product idea of the business community. Yunnan Baiyao uses its own brand image of the time-honored brand of traditional Chinese medicine in the eyes of the Chinese people to introduce the hemostatic toothpaste, which has become the top brand name brand of high-end toothpaste. The Ejiao of Dong'e uses the impression of nourishing yin and enriching blood in the consumer's heart by the use of donkey hide gelatin, and has launched a high-end health care snack "peach blossom Ji", which has won a good sales volume.

It is one of the main reasons why the Internet early Internet red failed to transform its accumulated traffic into a concrete product. Today, net red is always particularly outstanding in this area. Wang Kai, a former CCTV host, quickly took out a series of parent-child curriculum products such as "Kay Shu story" and so on, using his accumulated traffic on the big platform. His annual revenue is as high as 2 hundred million, and the current estimate is expected to be over 2 billion.

epilogue

The word "net red" is made up of two words, one is "net" and the other is "red". First, there is "net" before you can "red". This is called net red.

20 years ago, newspapers and news were the center of information transmission. After the rise of Internet 10 years ago, portals became the center of content distribution. 5 years ago, the era of mobile Internet brought the rise of self media. People's access to information has gone through the process of continuous digestion and recasting. The same thing is that people's needs to get information have always been satisfied. Net red is likely to become the information center of the next era.

The online and offline traffic will be more closely linked in the 5G era, which means that traffic nodes are more fragmented. Net red is just like a shop sign hanging on the doorway of the past. Whoever has a new signboard will attract more business. This is an era when everyone should do net red. The four net red economics summed up in this article can help you do more scientific networking Red:

1, unlimited replication: why to make net red?

2, making labels: how to position yourself

3, the visiting officers come quickly: screen out the effective traffic.

4, get rid of the facts: create consumer products.

Of course, the premise of becoming a net red is to be sincere and master the skills. If you cheat and harvest the fans, you will soon find yourself in a cloth: cool.