Live Broadcasting Business, Do Not Become A Feast For Drinking Poison And Quench Thirst.

Live broadcasting business is getting more and more lively.

As the product of Taobao's content, Taobao live has occupied 60% of the total market share of live broadcast business. The myth created by Li Jiaqi, Wei Ya and others on the volume of goods sold has shaken up the layout of live direct business in 2016, and mogujie.com, which accounts for 53.2% of the total GMV of the GMV, is the direct seeding provider.

Therefore, in April 17th, mogujie.com ushered in the first radical reform in 2020 - layoffs. According to the internal letter released by mogujie.com founder June, in the new round of layoffs, the number of layoffs has reached 140, accounting for 14% of the total number of employees. In this regard, mogujie.com said that the future will focus more on the live telecast industry, and will soon shift its focus to the field of live telecast.

The battle of broadcasting in the field of live broadcasting has just been blown up, and mogujie.com will not be the last one. A live broadcast, hundreds of millions of sales, hundreds of millions of GMV, no doubt let many trapped epidemics, and traffic ceiling enterprises see new possibilities, "rushing up" will happen in the near future.

However, the direct broadcasting business was not long after the outbreak. However, as early as 2016, Taobao's live broadcast of the layout began, and the rapid development of the live broadcast business market was first launched in 2019. But in 2020, Luo Yonghao still took the place by shaking his voice, which has already formed a tripartite confrontation.

At this time, if a large number of small and medium-sized enterprises are rushing into the game, the outcome will be cannon fodder, or they can kill a blood route, and become a rising star in the field of live broadcasting business.

A lesson from group buying and sharing economy

Looking at the development process of the Internet, "one will lose thousands of bones" has been staged many times. Thinking of the group buying model which sprang up in 2010, from the first group buying network alone to the thousand regiment war, from imitating the imported Groupon to gradually exploring the Chinese characteristics, from the market to the orderly competition, the whole process took less than 5 years.

But from birth to death, group buying took only 5 years, and a trillion level market collapsed. The 24 coupons, the full net, the tick group, the Wo Wo Group, the handshake net and the glutinous rice net all disappeared in the long history of the year. Even now the US group with a market value of 100 billion was also able to survive because of the timely transformation in those years.

In 2017, the shared economy was once again a group purchase.

From sharing bicycles, sharing cars, sharing rechargeable treasure to sharing umbrellas and sharing costumes, sharing the economy became a new trend in the 2017. Soon, the rhetoric of young CEO at product launches was destroyed with the collapse of one enterprise. This market, which was thought by entrepreneurs to scale up to trillion, was once again bated and collapsed.

Many companies that could have lived well were also dragged down by rushing to share the draught of the economy. For example, some small and medium-sized bicycle manufacturers, because the service share the platform of the bicycle, invest a lot of cost and energy, and finally run on the platform, resulting in the fragmentation of the capital chain, and finally the collapse is everywhere, and the life of the small and medium enterprises is also getting shorter and shorter.

According to the relevant data, the average life expectancy of SMEs in China is only 2.5 years, and the number of failures per year is as high as 100.

From group buying, sharing economy, to today's hottest live business, it is undeniable that every mode has its own advantages and can be sought after.

Compared with the electricity supplier, the live broadcast has changed the consumer side.

It effectively shortens the shopping process on the platform, and integrates the process of searching, browsing and selecting products into three parts.

The decision time is reduced. Through the introduction and comparison of products and similar products by anchors, consumers can save a lot of time and effort and improve the efficiency of the whole decision-making process.

Enhance the sense of experience - electronic business platform is often based on pictures and text introduction, consumers need to understand themselves, but through live broadcast, consumers can interact with the cloud experience products, more closely understand products and use of feelings.

On the other hand, it also improves the efficiency of selling goods.

In terms of clothing category, it has its own seasonal and sales cycles. If it missed the golden age, sales would naturally drop. Before they get on the shelves of the electronic business platform, they have to look for models, take pictures and make maps, and then get on the shelves. The whole process may waste 1/3 of the time, and the efficiency of selling will naturally decrease.

However, the advantage of live broadcast is that after the store gets the goods, it can directly display and sell the anchor, without spending a lot of time and energy to shoot promotional pictures, it can break out in a short time, and the turnover rate of the product has been greatly improved.

In addition, direct seeding electricity providers are more likely to stimulate impulse consumption of consumers and generate a lot of transactions. In the past, consumers shopping in heaven, Taobao, and Jingdong were purposeful consumption, looking for products that they needed through active search.

However, live selling is a sexual consumption of half a head. It focuses on "shopping". Like consumers, consumers do not stare at a product or a store. Instead, they go around for a while, look at it and buy whatever they like, so they will generate a lot of impulsive consumption of non rigid demand and partial vision.

From the current situation of the development of direct seeding electricity providers, its future is bound to have its own place in the commercial field. However, the direct seeding electricity supplier can ultimately enhance efficiency, help the retail industry to develop in a better direction, or enter the group buying and sharing economy again, becoming the tombs of millions of small and medium-sized enterprises, depending on how the platform is done, and how the small and medium-sized enterprises will be involved. Choice.

Platform anchors waist localization

From portal website to search engine, from electronic business platform to later social media, they are doing the "centralization" under the cover of "de centralization".

On the platform of Taobao, in the early stage, in order to attract merchants to enter, through the flow support and vigorously tilted method, we created a number of head brands and shops, making it the first wave to benefit from the platform, and also brought good advertising effect to Taobao, resulting in a small number of small and medium-sized enterprises get together to enter.

And 20% of the head enterprises not only took 80% of the profits, but also became the lifeblood of Taobao. When Taobao wants to introduce some fresh blood again, or some small shops enter Taobao platform, it will find no traffic, because traffic is all controlled by the head seller.

For a long time in the plight of no exposure and no order, many shops found that Taobao had little value in its own development, which is why more and more sellers in the past two years have called for no money on Taobao.

However, this does not mean that Taobao's early support for some businesses is wrong, because the rise of any large platform, the promotion of GMV and the establishment of consumer habits are the first thing to create the spirit for the platform. In the era of live selling, Taobao's live broadcast, quick hands and jitter were all done in this way, so that Li Jiaqi, Wei Ya, Simba and others appeared.

The Chinese often say that "enough is enough" and the same is true for the direct seeding business. Early stage support for head anchors will result in siphon effect in a short period of time, but in the long run, it will surely compromise the platform.

On the one hand, will anchors tie up platforms?

There is strong stickiness in the interaction between the owner and the consumer. Many consumers will buy a product because the product is recommended by Li Jiaqi.

This is actually a threat to the platform. Once the platform does not support Li Jiaqi's traffic, will he turn to the jitter and take away the fans. If the platform continues to flow, some of the anchor players in the waist will never be able to support it. The anchor can "take the emperor to make the princes", which is what the platform does not want to see.

Therefore, the platform must be moderate when supporting the head anchor. On the contrary, after the one or two heads are anchors, turn around and support some waist anchors to make the platform long tail or waist, which is more conducive to the stable development of the platform. Because China has contributed a lot to the value of small and medium enterprises, they are the core strength of the development of the market as a whole.

While selling goods, small and medium-sized enterprises are willing to cooperate with some head anchors, but they also need to consider the cost. For example, an enterprise selling women's shoes wants to clean up 500 thousand stocks through live broadcast. Under such circumstances, Li Jiaqi and a waist anchor can be sold, but the former price is 1 million, and the latter price is 200 thousand. They will surely choose cost-effective, because they only need to achieve their goals.

On the other hand, whether the low price model is sustainable?

Whether Li Jiaqi or Wei Ya, when the product is sold, one of the main highlights is the lowest price in the whole network, creating a sense of urgency that can not be bought anymore. We have to place orders and return products. It is understood that the return rate is as high as 70%. Li Jiaqi, Wei Ya and others created hundreds of millions of GMV behind, but in fact destroyed a large number of brands and supply chain.

In addition, for some brands, the price is just "painkillers", and for a long time, the side effects appear. Around 2011, the premium of the southern brand is still high in China. The price of a set of thermal underwear is basically around 300 yuan.

At that time, it was praised as the largest group buying website in the United States, and the United States network was working with the Antarctic people to sell the southern polar underwear with a value of 299 yuan at a 79 yuan group purchase price. The sales volume increased rapidly in a short time, but the brand value declined in the eyes of consumers.

At the same low price, what is the difference between live TV providers and group buying?

Channel threshold is getting lower and lower.

Like the electronic commerce platform, social media is also one of the products of "centralization". For example, in the early stage of development, micro-blog relies on the star effect to pull new, indeed, it has set up a barrier in a short time. At the late stage of development, the big V of the head still controls the strong voice and influence, and it is hard to return to ordinary users, which is exactly the same as the present Taobao.

However, if we put it in the long river of history, we will find that the change of the whole media is orderly developed according to the track of "de centralization". In the era when the channel was king, television, newspapers and magazines were the giants of the communications industry. They had high requirements for journalists and editors. And at that time, these channels of communication were almost monopolized by large enterprises. Small businesses wanted to advertise, not only the cost was unbearable, but more importantly, there was no opportunity.

But times are changing. For the first time, the media went to the center. After the rise of the Internet, Sohu, NetEase and other portals have been on the rise.

And the real watershed for the media is the emergence of micro-blog, the power of the media since then. A large number of small and medium enterprises can plan their marketing plan according to their tonality through micro-blog, which is not only low cost but also accurate.

Subsequently, the emergence of information platform such as WeChat subscription number and today's headlines has once again narrowed the distance between enterprises and consumers. The number of enterprises opening WeChat subscription numbers, headlines and 100 home businesses has been increasing year by year, and the media attributes of enterprises themselves have become increasingly prominent. However, there are still many small and medium enterprises in China unable to access such channels. For example, some farmers who grow fruit but have low educational level, they know very well about fruit, but they can't play the text.

Can the threshold of media channels be reduced again? The emergence of short video and live broadcasting platforms has helped open the door to the media age. It has broken the need for communication.

As long as a smart phone is available, consumers can communicate and sell. This has provided more possibilities for enterprises to build their own channels. Some small pet shops, florists and fruit shops have begun selling live products on Taobao's live broadcast, jitter, and fast hands, and their demands for content creators are getting lower and lower. It is possible for everyone to sell live products.

But does this mean that companies are going to rush to do live business?

The answer is No.

In response, observers said: Live TV should be a nutritional supplement. This is true whether for enterprises or direct seeding channels.

Symbiosis and win-win between channels and enterprises

In those days, when the group bought up, the whole industry looked forward to the myth created by Groupon that could be replicated on its own. In fact, not long after, group buying mode went into a dead end. At that time, 24 coupons were reported to be in arrears with employees' wages and business settlement accounts. IPO was aborted, and then founder Wu Bo resigned. However, the sacrifice of the former group buying enterprises has made us group and the public comment on these successors.

In January 2015, the US delegation CEO Wang Xing said that the US group had received $700 million in financing, and the company's valuation exceeded US $7 billion, and the turnover exceeded 46 billion yuan in the whole year. At the same time, the public comment also handed in a monthly transcript with a turnover of 2 billion.

But what is interesting is that the websites such as the US group, the public comment and so on, which began to buy in groups, began to "go group buying", and moved to the local life service transformation.

The way of heaven is more than enough. For whether to do live broadcast, enterprises should also have their own judgement, such as whether the interaction of live broadcast providers can make up for the lack of the existing channels. If the layout of live broadcast is to ensure the sales volume of existing channels, help enterprises expand part of the consumption crowd.

At the same time, the low price mode of live broadcast providers will definitely drive the growth of sales volume, but it will also have irreversible impact on brand value. How can enterprises weigh the pros and cons of fish and bear's paws when they cannot have both?

For the live broadcasting platform such as jitter, it will also face the same problem as the US group. How to deal with the relationship between the large number of small and medium-sized enterprises on the platform and how to balance the relationship between itself and other channels?

In those days, when the group buying mode was just emerging, the group buying platform, in order to attract more traffic, "flickered" many small and medium-sized enterprises in the price war, eventually leading to their supply chain disruption. In order to please the consumers and damage the interests of the upstream partners, the practice of drinking poison and quench the thirst is inevitable.

One of the business models that is in sharp contrast to the group buying mode is the hot rise in previous years, which has produced a group of concept companies' TV shopping. With the change of the environment, although it is already on the decline, it is undeniable that the mode of TV shopping is successful. And one of the important factors of its success lies in the deep binding of TV stations with the large number of enterprises on the upstream.

Different from the way of "cheap + flow", the products of TV shopping are almost all high premium. Tens of blocks and hundreds of pieces of products are sold for thousands of pieces. The profit rate is usually in the hundreds of hundreds, and then the combined supply chain and the business super control price are all prosperous, and the whole system is stable. So far, the mode of TV shopping still exists.

Similarly, the relationship between new channels and old channels is not an either or a relationship, but a symbiotic and win-win relationship in the great era. Otherwise, the retail channel under the line has been destroyed by the electricity supplier, but this is not the case. The reason is that they are complementary to each other.

Of course, in this process, there is no "winner take all" idea. Taking Taobao as a new channel, it really helps users break the time and geographical restrictions, and can do shopping anytime and anywhere, making up for the lack of sales channels under the line.

However, with more and more traffic, Taobao's ambition is bigger and bigger, and it will be introduced from everywhere to its own traffic pool. The final result is that Taobao can not digest such a large volume of traffic. After the whole ecosystem has reached a balance, the subsequent entry into Taobao has no value at all.

Therefore, a part of businessmen from the Taobao regression line, some businesses fled to many other business platform. So far, a balance has been reached between Taobao and traditional channels, and the cost of acquiring passengers is almost the same.

For Taobao, who has both the electricity supplier and the direct seeding electricity supplier, how to play the relationship between the platform and realize the synergy between the two parties, rather than taking all the electricity suppliers' traffic as their own, is particularly important.

At the same time, Taobao also needs to consider which businesses need to broadcast, which businesses need electricity providers, so as to develop a good flow distribution rules, to achieve symbiosis and win-win between channels and channels, businesses and channels.

Otherwise, in line with the business and platform for SMEs, they once again take themselves as the core, only serve themselves, and forget the vast number of small and medium-sized enterprises. Live broadcasting business, do not become a feast for drinking poison and quench thirst.