Little Red Book Makes Li Jiaqi

The little red book, which has always been responsible for planting grass, is about to start harvesting. The live broadcast is the harvester. "Xiao Hong's live broadcast can be carried directly, and several brands have been broadcast live on the little red book, with good results." Li Bing, director of MCN (Multi-Channel Network, multi-channel network), told Chinese entrepreneurs. Xiao Hong book, which is still in the live broadcast stage, is opening live broadcast rights to all creators almost every day. This means that the little red book finally joined the live battlefield. Jess, director of Xiaohong book creation number, said that since the beginning of 2019, the small red book has launched about 5000 live broadcast, including the functions of connecting, sweepstakes and carrying goods. The live broadcasting function of Xiaohong book has been improving. "The overall performance data exceed our own expectations. The conversion rate, repeat purchase rate and customer unit price of the live broadcast are relatively high".

Xiaohong, founded in 2013, is a lifestyle sharing platform. In 2019, the little red book, mainly based on graphic notes, began to transform into a diversified content community. Video notes became a hot spot for growth. Official data show that in 2019 Xiaohong Book Community monthly video notes grew by 265%, and the exposure rate and the rate of pink powder were 2.4 times and 2.3 times respectively. However, the hottest draught in 2019 is still live. Little red book has no reason to miss the tuyere. In November 28, 2019, Xiao Hong published an interactive live broadcast platform on its "creator open day". It announced that it was about to open the beta and formally entered the live track.

In fact, as early as June 2019, Xiao Hong tried to do some live broadcast testing, when only a few popular people accepted the invitation. With Li Jiaqi, Wei Ya created a "myth" with goods, Taobao, fast hand, shaking voice and other head platforms have been working on the live broadcast of the electricity supplier, spelling a lot, such as Han, mogujie.com and other platforms also accelerate the entry. Everbright Securities estimates that the TV industry has achieved more than 10 times the amount of TV shopping in 3 years. The total scale of 2019 reached 440 billion yuan, an increase of 214% over the same period last year.

"We are different."

Before the official survey, no one knew what the live broadcast of Xiao Hong would be like. Mogujie.com founder June has analyzed, Xiaohong Book grass property is stronger, that is, the buyer sharing experience, but Taobao, mogujie.com's business live broadcast will have stronger shopping guide properties, anchors direct selling points, these two ways are very subtle differences, the latter to electricity consumption guidance is more direct and natural. Xiao Hong hopes to test some hypotheses during the test. "Xiao Hong book is suitable for live broadcasting?" in fact, we do not know what will be broadcast live, who will be willing to see, what will sell well, so the little red book live broadcast is still in the stage of opening and exploration.

Now, we see that the live broadcast of e-commerce is mainly the form of shopping guide. Is there any possibility of other forms of live broadcasting? We think it is possible. Xiao Hong book said. The evening is the peak of the live broadcast. Search for the "live" keywords on the little red book platform, you can see the live topic set up by Xiao Hong book, and you can see the browse of the topic when you click in. But if you want to see live broadcast, you need to pay attention to creators.

Small red book live broadcast screenshots

It is understood that at present, Xiao Hong book live broadcast is mainly divided into two categories: one is interactive live broadcast, the other is two live broadcast with goods. The open permissions to the creators are interactive live streaming, and further application is required for the live broadcast of goods. Creators are waiting for the opening function of the little red book, which is directly related to the purchase and transformation.

In fact, interactive live broadcast is similar to the chat between creator and fans. In the field of children's education, the "banana mother" creates and shares their parenting experience with fans through live broadcast, such as how to grow together with children through children's picture books.

The live broadcast of the red book is more like the creator's interactive sharing.

Jess said, "previously, the live broadcast of goods on the market was mostly peddling. The live broadcast of Xiao Hong's book is not quite the same. We need the creators to turn things that they have used everyday, or those that have been recorded in notes, into goods that can be sold. We hope that the creator will share what he has experienced, and that business will not be so strong. " Jess thinks that this is the direct broadcast form of Xiao Hong's book: sharing and chatting are the main factors, and the atmosphere of taking goods is more emotional rather than profit driven.

Another difference is that the live broadcast of Xiao Hong's book has no official "public domain traffic". The live broadcast of the creator will be distributed directly to the fans, and the fans concerned will see the live broadcast on the attention page. "So the live data of Xiao Hong's book depends more on the stickiness and interaction strength of fans, which is a more selfish area based approach." Jess added. Based on the distribution logic of private domain traffic and the trust of fans to creators, Xiao Hong's live broadcast team saw that the conversion rate of the live broadcast is relatively high, and fans are willing to pay for the author's sharing recommendation, and the rate of repeat purchase is higher than that of the guest price. A beauty instrument worth 3000 to 10000 yuan can be sold in a live broadcast of Xiao Hong's book. But now, the small red book live with goods in the goods are all used Xiaohong Book Mall commodity.

Li Bing believes that this will cause the limitations of the small red book live products, "after all, self operated shops and goods are limited, which can not be compared with Taobao." In response to private live broadcast, Li Bing has also expressed concern that he believes that this situation may appear "strong and strong" situation: "official guidance and coordination outside the station publicity, live broadcast traffic will certainly be more." If they are all recommended by pure fans, it may be difficult for ordinary creators to have a lot of fans.

After interviewed several KOL and MCN directors, we found that although Xiao Hong's book has already opened the right to live broadcast, some of the creators still have a wait-and-see attitude and doubt the effectiveness of the live broadcast of Xiao Hong's book.

KOL, who has an account in other short video platforms, says that the overall logic of live broadcasting is basically traffic + low price, that is, KOL and platform solve traffic problems, allowing more traffic to enter the live room, and then KOL and brand side to solve the price problem.

"Taobao live most of the traffic in Li Jiaqi and Wei Ya, the top two obviously higher than the 3~10 name, and most people who visit Taobao have their own shopping intention; trembling voice tends to rely on the IP of KOL to attract fans to watch. If the product that KOL normally produces will be strictly selected, its credibility will be stronger, and the effect of carrying goods will be better. The fast crowd is more sinkable and the cargo carrying capacity is strong, but we need to control the price of the selected items, which is generally less than 99 yuan. The above KOL indicates. After asking for a round, he found that KOL has not been quoted yet, and the commercialization of live broadcasting has not yet been opened.

According to the data released by Taobao joint list, in 2019, more than 50 million shops were sold through Taobao, and 84 of them were sold, of which 23 achieved a turnover of 100 million. Wang Sien, a veteran live broadcast company who has been in the live broadcasting industry for 8 years, said that Taobao's users had stronger purpose and stronger shopping demand. This is consistent with the final destination of live goods, but users can see that Xiao Hong's book may be for cloud tourism, cloud food, cloud sucking cats or brush notes.

The effect of live broadcast of Xiaohong book depends on whether the consumption behavior of fans will change after opening live broadcast. There is also a positive attitude towards the carrying capacity of Xiaohong book. Li Bing believes that after all, Xiao Hong is the largest grass planting community in the country. Many brands have grown up on Xiaohong book and become the explosive money. KOL can share the product's reputation through direct seeding, which may directly promote the transformation of purchase demand and form a complete set of marketing closed loop.

Anyway, the live battle must be beaten. CITIC Securities released the "2019 electricity supplier live industry special research report" pointed out that the business live broadcast for businesses, users, platform value is huge, its rise is not a short-term phenomenon, but the flow of competition intensified, electricity supplier content under the background of the general trend.

Taobao's live broadcast has already verified the feasibility of live selling. Xiao Hong's book is to find its own way of playing. The foundation of live broadcast is to have traffic flow. Moreover, people and goods, good people (KOL) sell good products to stimulate users to buy. That is to say, no matter how different, Xiao Hong books should "create" more Li Jiaqi.

the sword of Damocles

The Spring Festival is an opportunity for traffic growth.

Quest Mobile data show that during the epidemic period, the number of active users of mobile social networking such as WeChat, QQ, micro-blog, unfamiliar street, Xiaohong book and other top 5 applications increased significantly over the same period last year. Among them, Xiao Hong's year-on-year growth rate was up to 35%, and the average daily usage increased by 44.9% over the same period last year. After the rectification of content in 2019, Xiao Hong's book again released the growth signal. At this stage, the most important task of Xiao Hong's book is user growth and community activity.

In May 2018, Xiao Hong accumulated 100 million users in 5 years. Since then, Xiao Hong has achieved two years of breakthrough and rapid accumulation of users. In January 2019, the number of users was doubled to 200 million, and the number of users increased to 300 million in July of that year. Compared with the previous 5 years, the "Red Book Speed" accelerated in 2019, and the growth time of 100 million users shortened from 8 months to 6 months, which is also strong in the whole Internet world. However, just after the user had just broken through 300 million, Xiao Hong had encountered the whole network shelf, more than two months' shelf time, pressed the pause button for the growth of Xiao Hong's book, and DAU (the number of active users per month) fell by about 2 million a month.

However, during the days when he left the shelves, he also gave Xiao Hong a chance to re-examine the relationship between users, institutions, creators and platforms. Li Bing clearly felt that after the shelves, Xiao Hong's contents strengthened the control of the content, and the community was speeding up the pace of compliance. Compliance is the sword of Damour and Chris hanging on the head of little red book. In May 2019, Xiao Hong published the plan for upgrading the brand cooperation platform. A higher threshold would isolate a group of KOL outside the commercial door, which once caused the public opinion storm of "Xiao Hong Shu cleaning KOL". After this storm, Xiao Hong felt that he should communicate with the creators, so he had a series of tools such as "creator center" released at the end of 2019, and the "creator 123 plan".

Xiao Hong book has said that brand cooperation, good things recommendation, live broadcast and other products are not for commercialization, but through a series of products and operations, to provide services and realizable means for creators. In essence, it is to leave quality creators for the platform, and the creators represent the ecosystem of the platform. For Xiao Hong's book, it was founded in 2013, and began to cross border electricity providers in 2015, and then emphasized the Lifestyle Community in 2017. Every two years is a change in the company's small strategy.

Jess believes that the most important change of Xiaohong book in 2019 is "diversification". In addition to the diversity of community content and category, there are diversities in play, such as interaction from graphic text to video and live broadcast. The traditional impression of Xiao Hong's book is that users are mainly women, with beauty, makeup and fashion. But in the background of the growth of users' volume, Xiao Hong hopes to break the inherent impression, thus adding more elements such as learning, traveling, fitness card punching, and so on. During the epidemic period, Xiaohong Book community launched some related topics such as home life and so on. The topic of "home big fight" was over 490 million, and the participation of users exceeded 120 million, and the contents of fitness, food, online learning and other categories had significant advantages under this topic. Some minority categories, such as blind boxes, have increased 5 times more than half a year in the community.

Qu Fang, founder of Xiaohong book, has said that the growth rate of Xiaohong Book ecosystem is faster than that of operation speed. Where the ecology grows fast, the operation of Xiaohong book goes up with loose soil, watering and watering, and little red book seldom does vertical category operation. More is to do the penetration on the circle level. They. For example, sponsoring the advertising effect brought by the idol trainee program brought a group of middle school users to Xiao Hong book. After that, the students began to share notes of learning to punch cards in the little red book. Increasing user equilibrium and diversity and improving user stickiness is an important step in promoting the development of community platform.

The delicate balance between content ecology and commercialization

After reaching a certain magnitude, commercialization is a topic that can not be avoided.

Xiao Hong has always been cautious and restrained in commercialization. At present, the main way of realizing Xiao Hong's book is still in brand advertisement and electricity supplier. But the SKU of the small red book business is limited, and the imagination of brand advertising is bigger.

Qu Fang once said in an exclusive interview that Xiaohong is not eager to commercialize, but the company will try more innovative models, "including we see a lot of interesting forms of advertising, but also achieved some results. I am shocked by the fact that some customers are buying up online advertising now.

Qu Fang sees that the bonus in the future is still in the brand, and how to leave them with the flow advantage of Xiaohong book is the problem that Xiao Hong book needs to think about. In the future, the running of mature cases may bring a lot of brand follow-up. For the brand side, they value the users and community attributes of Xiao Hong's book, and cooperate with Xiao Hong's book in pursuit of more efficient exposure and word-of-mouth deposition. In fact, the perfect diary, Hua Xizi and other cosmetics brand is also a similar way of playing, and the effect is more obvious. Through the launch of Xiaohong book, jitter, B station and other channels, the brand can help to transform the purchasing power through the interaction between KOL and consumers.

However, there are also people who try to build new brands. "Those who are in the early stages of the traffic dividend have mostly made their brands. Now the community has strengthened the control of content, and the competition is fierce, so it is even more difficult to do." At the end of 2019, media reports reported that Xiao Hong achieved a profitable stage.

In response, Xiao Hong responded by saying that it was only a single month profit and that the company was not aiming at making profits at this stage. Although Xiao Hong's book is only profitable in a single month, it is undoubtedly an encouragement for the commercialization of community products. From bean sauce and know to tiger puff, community products have been troubled by commercialization. The high value of capital needs to be commercialized, and the users of community products pay more attention to the community atmosphere. If commercialization is done well, the ecological environment of the community will be weakened. How to achieve the delicate balance between content ecology and commercialization is the core problem of the whole industry.

The head of a MCN organization said: "I personally believe that the quality of B station content is one of the best channels, but in commercialization, they are also the weakest, so you can make money and content is good, and it seems to be not commercialized, I think there are some contradictions."

However, capital markets still have a special interest in community platforms. B's market value has risen sharply in the past year, its current market value is 8 billion 600 million dollars. At the end of last year, it quickly completed the F round of financing from Tencent, with a total value of US $3 billion and a valuation of US $28 billion 600 million. Before that, we knew that we also completed the F round of financing with a total amount of US $434 million. At the beginning of 2020, Xiao Hong came to raise 400 million ~5 billion dollars in the new round of financing, valuing about 6 billion US dollars.

So far, Xiao Hong has completed the 5 round of financing. It is worth mentioning that Xiao Hong's list of investors includes two giants of Alibaba and Tencent. In mid May 2019, Xiao Hong completed the D round of financing from Alibaba, which received more than US $300 million, with a post valuation of more than US $3 billion. Xiao Hong book, which has many stars and KOL, is still working hard to grow. But from the content to the chasm of the transaction, can Xiao Hong Book break smoothly in the future?