Because of the impact of the epidemic, live broadcast e-commerce will usher in a blowout in 2020, and brands have entered the live broadcast room. Hundreds of millions of consumers screamed at Fang Qiu amidst the screams of “OMG, buy it, buy it”, enjoying the thrill of soaring hormones brought by shopping. Li Jiaqi and Wei Ya are even more famous and wealthy. Receiving and embarking on the pinnacle of life.
The prosperity of the scene made Wu Xiaobo, a financial writer, sigh, “In 2020, don’t watch live broadcasts. Basically, it is white.”
The emergence of live broadcast e-commerce has not only significantly changed the user habits of e-commerce shopping, but also changed to a certain extent Industry structure. In the natural year of 2020, Taobao’s live GMV will exceed RMB 400 billion (Alibaba financial report data).
One month later, the first post-listing financial report released by Kuaishou shows that for the whole year of 2020, the total amount of e-commerce transactions in Kuaishou app As much as 381.2 billion, a year-on-year increase of 539.5%. In 2018, Kuaishou e-commerce GMV was only 96.6 million-3 years, an increase of nearly 4000 times.
This is indeed the case. Since Kuaishou entered the e-commerce industry, stories about “trust” have continued to unfold. For example, Chenyi is a Master of Medicine from Beijing University of Traditional Chinese Medicine. With ten years of skincare knowledge and excellent professional quality, coupled with three years of short video and live broadcast sharing, he quickly gained popularity in Kuaishou.
Although fans offered to buy more products, Chenyi was always cautious, saying that he wanted to spend more time to enrich himself , “Be worthy of everyone’s trust.” Although it only brings goods once a month, based on trust, Chenyi’s monthly turnover has stabilized at more than 2 million, and now it has more than 1.5 million fans.
In the era of e-commerce 1.0, shelf-type e-commerce platforms have become popular. The platform revolves around the operation of commodities, and relies on the sale of public domain traffic to merchants to make money. Expressed by the formula, it is GMV=UV*conversion rate*unit price per customer.
In this mode, the public domain traffic cost is high, and the traffic is one-off. The seller will have to spend money again next time after using up. The platform has the core control over the traffic. Users are loyal to the platform, not It belongs to merchants. For merchants, the user stickiness is not high. The 28th effect is obvious, and it is not easy for mid- to long-tail merchants to break through.
But from Chenyi’s case, we can see: In Kuaishou users are the core, the seller’s personal charm Professional content is the driving factor, and most of the transaction traffic comes from the seller’s private domain traffic. The seller really has the right to control the flow, and is most concerned about the trust projected by the fans, not the turnover-this makes it easier for the seller to deposit high loyal fans and enjoy the long-term value and compound interest effect.
In the fast-hand e-commerce ecosystem, GMV=UV*content consumption time*unit time order conversion rate*customer unit price * Frequency of repurchase. Among them, UV=stable UV in private domain traffic+UV delivered from public domain traffic. The content consumption time depends on whether the content is interesting and high-quality, and the unit-time order conversion rate and repurchase frequency are positively related to the user’s trust in the anchor/carrier.
“When you truly trust your consumers. After the relationship matures, he may come to you to buy it 10 times a month… You want to make content, so that everyone’s time with you will be longer, the time will be longer, and trust will be built. Do business with Lao Tie, help them expand their horizons, give them good products, and do trust, because this thing finally brings great (transaction amount)< /span>Promotion. “At the Kuaishou e-commerce Gravity Conference held on March 26, 2021, the head of Kuaishou e-commerce was outspoken.
Xiaogu’s words are true, and the financial report data shows: During the period, 85% of repurchases were made by Kuaishou e-commerce , Comes from private domain traffic of merchants; the average monthly repurchase rate of Kuaishou e-commerce sellers is as high as 60%+, and 84% of users are willing to accept products recommended by Kuaishou anchors in the future.
The most expensive product that Zhou Yu, 30, bought on Kuaishou e-commerce store is a piece of jade worth 500,000 yuan. Zhou Yu likes jade, and because of this, he followed the fast-hand anchor “Xinjiang Yurunde Jewelry”. After paying attention to it for three months, he bought a piece of jade Guanyin for 45,000 yuan.
Zhou Yu believes that “General Manager Ren” (Quick Hand The anchor “Xinjiang Yurunde Jewelry”) has a lot of research on jade, and the price of the goods is not expensive, and sometimes even sells jade on behalf of fans. “He wants to make jade a lifelong career. This is definitely To be worthy of all the old irons and to have a heart-to-heart with the fans.” Because of his trustworthiness, Zhou Yu is willing to spend 500,000 yuan on jade in the live broadcast of “General Manager Ren”.
Based on the trust relationship between people, content, and Reconstruction of e-commerce logic. From traditional shelf e-commerce to Kuaishou live broadcast e-commerce, the essential change is from transaction to relationship-the former is a short-term transaction, relying on the public domain, and the latter is a long-term relationship, relying on the private domain.
In the preface of Kuaishou’s official new book “Live Broadcasting-What is Kuaishou II”, Kuaishou founder Cheng Yixiao wrote, Humans are social animals and have a strong desire for temperature. Temperature should not fade with the development of society. A large community should give people a feeling of’warmness’. Kuaishou is committed to creating the “best There is a warm, most trusted online community”.
To create the “most trusted online community”, Kuaishou e-commerce must make “trust” the most valuable Products, let it become the seller’s hard currency, and continue to improve user satisfaction.
Only private domain traffic is not enough, and it is inseparable from the construction of complete infrastructure and platform rules. In the past few years, Kuaishou e-commerce has launched a small yellow car as a trading tool, and has continued to make efforts in rules and products.
Business history is the history of trust, reconstructing the consumption decisions of one billion people
The essence of business is exchange, and the basis of exchange is trust. A history of human business is also a history of how to build trust.
In the initial stage of commerce, social productivity is lagging behind, and products are self-produced and sold, and they are limited to nearby villages and ethnic groups. Most of the consumption decisions at this time are based on acquaintances.
About this point, Cheng Yixiao feels deeply. He wrote in the article, “When I was young, there were always A few vegetable farmers came to sell vegetables, and it was a few of them every day. My mother especially believed that the things they sold were reliable.”
Later, mass production and division of labor became popular, and productivity was greatly improved. How to make your products create instant recognition in the minds of consumers and shorten the decision-making pathclass=”text-normal” style=”text-align: justify;”>
From the sporadic transactions in self-sufficiency to the birth of the brand brought by mass production, and then from offline channels to E-commerce platforms are both blooming, until the content of the short video live broadcast platform is king, every major iteration of the consumer decision-making mechanism has spawned a new big business. Each time the change of age has created different trendsetters, but in each era, the basis of consumer decision-making and business model is trust-only the object of trust has changed from acquaintances to brands, to channels and platforms, and then Go to content + business.
In the era of e-commerce 1.0, shelf-type e-commerce platforms are essentially retail channels. For brands and factories, communication with C-end consumers cannot bypass the platform, and the cost of traffic and communication in the middle is self-evident.
Kaishou e-commerce, an e-commerce model based on user trust in sellers, has begun to connect consumers with the supply chain, and even The source factories are directly connected, thereby reducing the channel and information gap, allowing consumers to buy the goods they want at a more affordable price.
This is actually C2M(Customer-to-Manufacturer ) Model-allows consumers on the consumer side to directly connect with the factory on the production side, and then guide the raw material procurement and production supply of the factory from the bottom up, and finally achieve the goal of reverse customization and flexible production.
“Manufacturing is very difficult to do, because a lot of it is rigid production, and sometimes the things produced cannot be sold, and a lot of The return of goods is particularly obvious in the apparel industry. We reversely promote the progress of the flexible supply chain and truly improve the efficiency of China’s manufacturing industry.” Xiaogu said.
Along with supply chain reform, it is the equal rights of consumption.
China’s development is extremely uneven, with 1 billion people living outside of first-tier cities. In these markets, the consumption power and consumer psychology of the people are not monolithic. Some people are constrained by limited disposable income and crave high-quality and inexpensive products. There are also some people, because they do not have high mortgage pressure and high cost of living, their consumption power is not weak, but they do not have the consumption confidence of first-tier city residents. At the same time, due to relatively few offline commercial infrastructures such as large shopping malls, the high-end consumer demand of this group of people has not been effectively met.
The live broadcast e-commerce based on trust between people represented by Kuaishou can break the limitation of geographical space At the same time, high-quality supplies are delivered to users to fill the above-mentioned gaps, so that consumers in new consumer markets can also enjoy good products like residents in first-tier cities.
“Live e-commerce allows consumers to see better things, richer choices, and bring better quality Quality and better prices.” Xiaogu said.
The impact of the global epidemic has brought the Chinese economy into a historical turning point when the 14th Five-Year Plan arrives. In order to meet the needs of future economic development, China has established an economic development policy that focuses on internal circulation and dual-circulation at home and abroad. In the 14th Five-Year Plan, it is also stated that “encourage business and commercial circulation industry and model innovation, promote digital and intelligent transformation and cross-border integration, and meet consumer demand through all online and offline channels.”
The live broadcast e-commerce industry is in a trend of high growth. In the future, live broadcast e-commerce will be a 6 trillion+ market. With the deepening of live broadcast e-commerce 2.0, the trust between buyers and sellers has further become the hard currency and infrastructure of e-commerce. More and more industry supply chains will be transformed. The new non-first-line consumer market is one billion-level The population will also have more and more people’s consumption decisions reconstructed.