Electricity Providers Take Goods, Only Rely On The Red Man Can Not Do.

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In the near future, as long as people talk about new consumption and brand marketing, "red man takes goods" is almost the topic center. Indeed, there have been many landmark events since the beginning of the year.

The electricity supplier takes the goods, only relies on the red man not to be able to defeat the first generation of red man Luo Yonghao to choose on the April Fool's Eve's evening, the first show live carries the goods, crosses several circles, the crowd onlookers, finally realized 48 million accumulates the viewing number and 110 million turnover volume.

GREE's old fellow CEO Dong Mingzhu, on the top of the jitter, showed a live broadcast of the goods and harvested 200 thousand of the embarrassing results. He soon fought for quick hands and broke 3 in 3 hours. My last talk about "Dong Mingzhu live with goods 200 thousand, actually earned 2 hundred million" has been very good proof.

Many cities such as Shenzhen, Guangzhou, Wuhan, Heze and so on have successively witnessed the historic grand occasion of the mayor and district leaders (and different levels of officials) personally coming forward to deliver the goods. Guangzhou's local governments even directly promulgated the "Guangzhou direct seeding electricity supplier development action plan (2020-2022 years)".

All along, the red handed live goods are facing a "69 dollar rule", that is, if the product price exceeds 69 yuan, the sales volume will drop sharply. In the past, live goods were regarded as a "lipstick effect", that is, consumers in order to find the pleasure of spending money, repeat the purchase of "cheap non essential things".

However, this year the situation has changed. Luxury goods, real estate and automobiles have also entered the orbit of red handed live goods.

Electricity providers take goods, only rely on the red man can not do.

OK, does this mean that the growth potential of the red man economy is unimpeded? Found this marketing routine, you can sit back and relax.

I want to emphasize that the art of war of Sun Tzu once said, "those who do not know the harm of employing troops do not know the benefits of employing troops". In the final analysis, brand marketing is a game of ups and downs, which tests the comprehensive quality and resource control ability of a company.

It is easy to think that the red man can bring the goods by way of routine, and you will probably be wandering between heaven and hell.

01 "re centralization" is the pitfall of current live goods.

Do not simply think that the marketing of red men is selling myths like "3 minutes, 5 minutes carrying millions of dollars", "a live broadcast attracts hundreds of thousands of people to buy" and so on.

If we look at the red man economy only with the "energy of carrying goods", this may be a small group of people's Carnival. Seeing the live goods market as a huge fleet, Li Jiaqi, Xin Youzhi (Simba), and Wei Ya almost became the flagship of the big red V, but the outside world only saw the flagship, where are the other warships?

Brand Company generally regards the red giant V as a "super shopping guide", or even a sales channel that can be chosen. It is no different from Tmall and Jingdong mall. Once the top position of the big red V is seen as "super shopping guide", it will fall into a "re centralization" trap.

In recent years, the new economic innovation has stressed that "de centralization" is to prevent a few stars from monopolizing the user's vision and not allowing a few platforms to monopolize the flow of the network.

In the past, WeChat, Taobao Tmall or entertainment were all focused on the flow of traffic, and then to do empowerment to drive a complete business ecosystem. This is the "centralization" of Commerce.

In recent years, with the rapid rise of the red man economy, every corner can shine. Every subdivision area that affects your way of life has V, creating high-quality content, settling loyal fans and releasing business energy. This is "de centralization" business.

Originally, the red man economy represented a more extensive "de centralization" business. However, there is a trend of "re centralization" of resources and traffic flow because of the large number of red V people who concentrate their energy on a few top spots.

What does that mean? A few of the top red men, V, are like commercial black holes that suck up the bonus of the red man's economic development, so that the vast majority of red people resources outside the top are hard to participate in, and Brand Company will also suffer from extremely expensive marketing costs.

I think there are two issues worth noting:

1) why is the red man outside the top V big enough to enjoy the limited bonus?

Strong consumer brands tend to favor the top location of the big red V, because certainty is high. The general consumer brands prefer CEO to live direct selling, or to cultivate red people shopping guide, and are not willing to cooperate with V, the top of the list.

Last year, some startup companies wanted to promote their products in social media, so they found a small V with big popularity. They sent money to big V for video advertising. However, there are millions of fans watching advertisements on the surface. In fact, there is hardly any traffic in the shop. The startup company was hoodwinked, and in a fit of anger, it was "fake".

Therefore, it is not the V who is at the top of the market, and consumer brands are often unsure of their business results. Ten thousand steps, even if the top position of the big red V fails to bring good profits to consumer brands, at least won the high-density exposure, Brand Company can still use the topic of live broadcast for two times.

If the red man and the brand fall into this logical cycle, except for the red man at the top of Pyramid, most of the big red V enjoy the limited bonus of live goods.

2) why can the top position of the V be charged to CCTV advertising?

Electricity providers take goods, only rely on the red man can not do.

The consumer brand sees and believes that Li Jiaqi can sell 15000 Lipsticks in 15 seconds, while he can spend billions of dollars in a live broadcast, and the consumer brand wants to participate in it.

Any marketing expenditure is a kind of investment, and all investments need to be risked.

The size of the top position is V, the size of the cargo is steadily increasing. In 2018, the size of the "double 11" Li Jiaqi and Wei Ya was 300 million orders of magnitude. In 2019, "double 11" was 1 billion order. If Brand Company wants to put their products into their live rooms, the cost will not be lower than those of CCTV advertising.

In the long run, the small and medium-sized Brand Company and small and medium businesses will be excluded from the pattern of live goods dividends.

02 the real breaking point of live goods is the repeat purchase rate.

A few top red people occupy C position and dominate consumption flow, which is contrary to the trend of the new economic era.

Today, China has entered a new economic super cycle, including AI intelligence, block chain, nanotechnology, and gene technology. These new technology driving forces have gradually entered the commercialization stage. The red man economy has begun to transform and integrate traditional consumer markets from vertical industries, and anything related to brands and consumption will be brought into new elements by the red man V.

However, "de centralization" is an important thread of the new economic transformation.

Guangzhou local government even issued the "Guangzhou direct seeding electricity supplier development action plan" (2020-2022 years), to make Guangzhou become the country's well-known live electronic business capital. Cultivate 100 influential MCN institutions, incubate 1000 net red brands (enterprise brand, origin brand, product brand, new product, etc.) and train 10000 people with goods. At the government level, the red giant V has been regarded as an important resource and factor in the new economic era, focusing on market hatching, and expecting the red man economy to blossom everywhere. Instead of only a few top red V people dominate the flow of fans.

From the brand perspective, the red man economy promotes the transformation of consumer brand from "virtual personality" to "real personality".

In the past, taking the brand as a virtual personality, celebrity endorsement and advertising bombing can continuously strengthen people's brand memory, so that when consumer demand arises, you can instantly imagine you.

Nowadays, the brand is already a real personality. The big red V has deep cut into the center of brand strategy to solve specific problems in specific scenarios. However, the real realization of this conversion efficiency still needs to consider product characteristics and repeat purchase rate.

In terms of specific operation, products are king, and repeat purchase rate is fundamental. I divide the repeat purchase rates of different product categories into four grads.

Class-A repeat purchase rate

For example, appliances and cars can be used for several years, and the demand for "repeat purchase" will not be very high. There is no need to put on a few TV sets or cars at home. After all, space and parking spaces are also cost effective. Therefore, consumers are relatively cautious about buying such products, and are not easily influenced by the big red V. Only the red top V with the top position can release the purchasing power of consumers instantaneously, which is only a short-term strategy.

B level repeat purchase rate

The price is between several hundred yuan and several thousand yuan, such as mobile phones, wearable electronic devices and electric toothbrushes, which can be used for one or two years. The speed of innovation and iteration is not slow, but it does not belong to fast food products. There is a certain room for the red man to carry goods, and the actual effect is similar to that of celebrity endorsements, and the cost may not be very low.

C level repeat purchase rate

Consumers may not buy them every day, but when they meet holidays or some moments like the world cup and China's good voice, they need to release their mood. Like Zhou Heiya and three squirrels, you can't eat them every day, but you buy them every once in a while. This represents a kind of "life fastidious" of consumers, and the price is not expensive. This is the consumer zone that the red man V can give full play to, because it can be the mouthpiece of consumers (fans).

D level repeat purchase rate

This is the area with the highest rate of repurchase and the biggest release of influence by V. For example, coffee, milk tea, cosmetics, the price is not expensive, as long as consumers really like which brand, the rate of repeat purchase is very high. If the red man V cut the fans' spots, the fans will produce stable stickiness, and the red people combine with the brand, fans will have a unique psychological experience for the brand.

On the whole, the repetition rate of category A and B products is especially suitable for the top anchors such as Luo Yonghao and star, while the repetition rate characteristics of category C and D products need more red people resources at different levels to establish a transmission matrix suitable for different brand tonality, while the majority of red people will have more opportunities to participate in this combination strategy.

Since it is a strategic combination, that is the free allocation of centralization. Red people live directly with goods, and need to use a centralization approach with minimal rules. If the Brand Company only takes the red man live with goods, as an option in Marketing Toolbox, or even expediency, there is no way to explore the real potential of this new economic mode.

Just like 10 years ago, when you just had an electric business, you just took it as a new marketing channel, or hung up to the IT department, how did you manage well?

In the long run, the real value of live goods is stable user stickiness and repeat purchase rate. For the products with different repurchase rates, the transmission matrix of the red man with tonal accuracy and precise alignment is needed.

03 "U disk": a long way to live with goods

Why do red people live on the spot and become a paradise for many consumer brands, but also push some brands to hell? I think there are mainly two factors: the sales rule is more inclined to the top of the big red V, and the big red V will spare no effort to please the fans.

1) sales of rules are more inclined to the top of the red giant V

At this stage, the Brand Company is looking for a red man to bring the goods live, and the income is a serious trend toward red people. For example, a lot of top red people bring products to the branded products, which can draw dozens of points of sale. Some of the big red V may not be able to carry the goods, but they will also extract tens of thousands to hundreds of thousands of service charges.

The good news is, if you sell cosmetics, health products, OK, such a high bonus, you will still be profitable. After all, the gross profit margin of the product is high enough (over 90%). You won't lose too much if you count the brand's live show and traffic benefits.

The bad news is, if you sell small snacks and daily necessities, the gross profit margin of the product is about 10%. How can we pay for the high number of red goods and goods? You can only lose money and advertise.

2) the big red V will spare no effort to please fans.

Even if the income of the red goods comes from Brand Company, they are very clear that Brand Company is willing to pay the price because of the strong influence of the red people on fans (consumers). Therefore, they are obviously inclined to the former among the fans' emotions and brand interests, and the interests of Brand Company will often be sacrificed.

Li Jiaqi once sold 87% of Estee Lauder's "double 11" eye cream at the lowest price of the whole network. For Brand Company, this is just a bustle, and the actual benefits are very limited.

So, what is the long way to live with the red man?

In my opinion, the real long way for red people to carry goods is "U disk survival". Every big red V is a U disk. It has different degrees of appeal and influence to fans group in their respective subdivision areas of life. With the help of a super interface, they can plug into various brand marketing strategies anytime and anywhere.

What does that mean? The famous KOL (opinion leader) can be a U disk, the head red can be a U disk, the waist red person can be a U disk, the primary red person and the vegetarian can all be a U disk, these different levels of marketing resources, the free combination inserts a set of interfaces, constitutes a special dissemination matrix of the expense brand.

Why do we need to establish a propagation matrix at different levels of V U?

Looking back at Facebook and the application of Snapchat after "burn up", how do we make world-class products from small crowd products? It is nothing more than the use of the 1:9:90 rule, the 1 is the head red man, the 9 is the waist red man, the 90 is the primary red man, the vegetarian, they start from the side people, let the "side people" like to use, and then use the nature of human imitation, to achieve popularity. China's perfect diary and tea are also rising rapidly with similar strategies.

In my opinion, only "de centralization" can improve the marketing efficiency and reduce the production cost of the enterprises. The direct broadcasting of goods is not the life-saving straw of the brand. The value of "de centralization" in the era of the red man economy must be the rational pricing of resources, resulting in a long-term (rather than temporary) high repurchase rate and long-term benefits from many parties, becoming the most popular Empowerment Factor in the upstream and downstream industries.

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