Sanda Ge and Li Jiaqi, 5 characteristics of selling goods on live streaming platforms!

Sanda Ge and Li Jiaqi are the anchors of Kuaishou and Douyin platforms respectively, but after watching their anchors, the author found some similar logics and summarized them to share with everyone.

Many people may not know that the place where the most popular influencers who are able to sell products are located is not Taobao Live or Weibo, but Kuaishou.

The 2018 "E-commerce Expert Annual Sales List" released by Taobao Alliance last year showed that among the most popular Taobao influencers of the year, Kuaishou accounted for 25%, and they all ranked high.

Even in 2019, when "Lipstick King" Li Jiaqi and sales queen Viya rose to prominence, the sales power of Kuaishou celebrities cannot be underestimated.

The Sanda Family fan meeting that took place not long ago is an example. This fan meeting is also the launching ceremony of Sanda Family Charity Fund of Guangdong Province Poverty Alleviation Foundation of Sanda Family. Data shows that the entire live broadcast of the event lasted nearly 7.5 hours, with more than 17 million views and final sales of 182 million.

Kuaishou is a typical product that accumulates strength over time. In terms of commercialization, Kuaishou has always remained relatively restrained. However, in the process of transforming from a short video platform to a "short video + social" platform, Kuaishou's commercial value has gradually emerged.

The "2019 Short Video Industry Half-Year Insight Report" released by QuestMobile pointed out that on Kuaishou, which is driven by community trust relationships, the 7-day retention rate of active users reached 84.4%, ranking first among typical apps in the short video industry. This retention rate is second only to WeChat.

We can therefore draw a conclusion that Kuaishou is the fourth largest social application after QQ, Weibo, and WeChat.

Previous media reports have talked about the sales reports in various vertical fields. According to the "Kuaishou Platform E-commerce Marketing Value Research" report released by Miaozhen System, 84% of Kuaishou users interviewed have the intention to repurchase the products recommended by the anchor, and nearly half of the users will seek purchasing opinions in the Kuaishou comment area.

The "Marketing Value of the Beauty Industry" report released by Miaozhen pointed out that more than 58% of Kuaishou beauty users surveyed spend more than 1,000 yuan on personal care and cosmetics every month.

Kuaishou’s ability to sell goods is evident. After watching the live broadcasts of Sanda Ge and Li Jiaqi, I found some common characteristics. Although the two companies are focusing on different platforms, to a certain extent, they share the same logic in live streaming sales.

01 Private domain traffic is earned little by little from the public domain

Li Jiaqi started his first live broadcast in November 2016 and was one of the first pioneers of Taobao Live. To date, Li Jiaqi has held over a thousand live broadcasts.

In 2014, Sanda Ge joined Kuaishou to shoot short videos. After Kuaishou launched the live broadcast function, Sanda Ge became a Kuaishou anchor.

This is almost the path to growth for all platform content creators. If you persist in output and accumulate to a certain amount, it will lead to qualitative changes. In his book Outliers, writer Gladwell proposed the 10,000-hour theory: "The reason why geniuses are considered extraordinary in people's eyes is not because they are born with superior talents, but because they have made continuous efforts. 10,000 hours of training is a necessary condition for anyone to go from ordinary to world-class masters."

The Internet operation circle is now talking about private domain traffic, but no one has private domain traffic right from the start. Whether it is Taobao Live or Kuaishou, the host’s private traffic is "earned" bit by bit from the public traffic pool.

On November 6 last year, Kuaishou held a sales festival, and Sanda Ge also set the opening day of his e-commerce company on this day. Similar to the workaholic Li Jiaqi, Sanda Ge live-streamed online almost the entire day except for a two-hour break at noon. In the end, Sanda Ge became the "Sales King" with a popularity value of 14.92 million, and the total sales on that day exceeded 160 million.

On a universal platform like Kuaishou, the conversion efficiency of public domain traffic is so high, which is closely related to the value chain of Kuaishou products.

As Mao Shoulong, professor at the Institute of Public Finance and Public Policy of Renmin University of China, said, to understand Kuaishou, we must see Kuaishou’s inheritance of the value and logic of universal access. Inclusiveness leads to new value chains, allowing gold to shine everywhere. Kuaishou can achieve a decentralization process, in which even values ​​that once seemed marginal can become core values.

At the beginning, every anchor had no foundation. Moving from the edge to the core is a process of entrepreneurship, establishing and improving a business model.

02 The public domain can enable the growth and expansion of the private domain

All content platforms have started talking about the integrated development of public domain traffic and private domain traffic since this year.

But how to integrate to form a virtuous circle is a problem. Zhao Yuanyuan, head of Taobao Live, said in an interview that for big anchors, private domain traffic accounts for the majority; small and mid-level anchors are very dependent on public domain traffic, and they do not accumulate fans.

Because Taobao Live is so popular, too many anchors have flocked in and the traffic has been diluted. The 36Kr report mentioned that compared with Taobao Live, which has about 9 million DAU and hosts about 60,000 live broadcasts every day, Kuaishou still has huge room for tapping into its traffic.

As mentioned earlier, at the beginning, the private traffic of all anchors was zero. For the anchor, a person's destiny, of course, depends on his own efforts, but the course of history must also be taken into consideration. In this process, it is most efficient to grow together with the platform's mechanisms.

At the end of 2018, Sanda Ge had over 40 million fans. For any top celebrity on any platform, it is difficult to grow further with this level of fans. But a year later, the number was close to 50 million.

The number of Sanda Ge’s fans has broken through the ceiling, on the one hand because Sanda Ge insists on live streaming online, has established a master-apprentice and family system, and has organized various activities offline; on the other hand, it is due to the empowerment of Kuaishou’s public domain traffic. Just like Li Jiaqi took advantage of the early dividends of Taobao Live, Sanda Ge made full use of Kuaishou's product functions of public domain traffic.

Guojin Securities' analysis mentioned that Kuaishou is one of the few applications that can take into account both social distribution and algorithm distribution. The algorithm and interaction design complement each other. The waterfall flow helps Kuaishou to attract attention, and the interaction in the same city gradually forms a semi-acquaintance circle of friends based on region/occupation.

Not only that, Kuaishou's public domain traffic products are still being enriched. For example, in the second half of this year, Kuaishou launched a live broadcast promotion function. With it, the anchor can pin the live broadcast room to the top of the fan's follow page, attracting fans to enter the live broadcast room as soon as the broadcast starts. This function can also be used to let more non-fan users see the live broadcast room, thereby attracting attention.

Private domain traffic has certain limitations, and it is difficult for many anchors to further expand their influence. At the same time, some top anchors also have a strong desire to break the circle. A celebrity’s fan circle is the basis for his or her commercial monetization, but it is not easy to break out of the circle after the size has expanded. Because breaking the circle will inevitably bring about problems with character compatibility and tone matching.

This requires public domain traffic to realize great value. The live broadcast promotion function is equivalent to handing over the promotion rights to the anchor himself. The advantage of doing this is that the anchors have room for refined operations. They can decide which groups of people to cover and how to reach them in a better way. Kuaishou anchors can optimize operations based on the social ecosystem of "people + content".

03 "Public Domain + Private Domain" enhances overall marketing value

With people and content, the key to ultimately testing whether an anchor and platform can develop sustainably is commercialization.

How to enhance the trust between users and anchors, users and brands, and improve the overall marketing value of public and private domain traffic is a difficult problem facing all live broadcast and short video platforms.

Kuaishou has been trying out some forms of advertising and marketing to solve the above problems, such as using splash screen ads to connect public and private domain traffic, creating a positive cycle of interaction between brand-platform-anchor-fans-brand .

Franic was the exclusive title sponsor of the Sanda Family event on November 25. It is precisely because of the proper operation of private traffic by Sanda Brother and Sanda Family that the fan economy can be formed. It is also because of their ability to bring goods based on the fan economy that Franic sponsors their splash screen advertisements.

You should know that Kuaishou's DAU exceeds 200 million. The public traffic pool released by a screen opening can bring huge traffic and attention to the anchor and the brand. In the end, many of these attentions will inevitably be converted into fans of the anchor. Data shows that the popularity of the live broadcast room exceeded 1 million as soon as it was opened, and continued to rise. That evening, the total number of viewers on the entire network reached nearly 20.42 million.

According to the person in charge of Franic's e-commerce business, more than 2 million Franic facial masks were sold in just 10 minutes during the live broadcast. Aloe vera gel without adding water was sold out and was constantly replenished during the live broadcast.

This event of Sanda Family can be said to be the culmination of the "brand-platform-anchor-fans-brand" chain, with a clever switch from public domain to private domain traffic, and public domain advertising and private domain sales complementing each other.

Similar to the "lowest price on the entire network" that Li Jiaqi always emphasizes, "pampering fans" is also a must for Sanda Ge. When talking about operational strategies and experiences, Sanda Ge's answer was very simple, which is to give gifts that every fan will find useful. For example, for rice, Sanda prepared 1 million kilograms; for refrigerators, washing machines, televisions, electric vehicles, and mobile phones, more than a thousand units in total were prepared, all of which were free gifts.

The entire process of live streaming and selling goods is also a reflection of Kuaishou’s private domain function. For example, in order to meet the increasing demand for live streaming hosts to bring goods, Kuaishou launched the Wheat Field Project last year, introduced the new "Kuaishou Store", and began to build a closed business loop within the system.

Third-party e-commerce platforms such as Taobao, Youzan, JD.com, Pinduoduo, and Moxiu have been connected to the "Kuaishou Store"; after the anchor opens the "Kuaishou Store", he can add products from third-party applications. Currently, products are exposed in the product showcases on live broadcast and short video pages, as well as the Kuaishou store on the host’s personal homepage.

Kuaishou Store has formed a closed business loop for Kuaishou’s live streaming monetization. At this point, Kuaishou has evolved into a "social + short video + live broadcast + e-commerce +" platform.

In addition, Kuaishou also launched the fan group function this year. After users join the fan group, they will get an exclusive identity badge, and fans of the fan group will also receive the live broadcast notification as soon as possible. The fan club function further consolidates the connection between the anchor and his friends.

Kuaishou's initial users were mainly in the lower-tier markets, but it is now also continuously capturing the youth population in first-tier cities. Looking at the basic base of young people in small towns, the "Disappearing Barriers - Tencent 2019 Research Report on New Youth in Small Towns" recently released by Tencent Advertising TMI Tencent Marketing Insight shows that 83% of new young people in small towns own real estate, 67% of new young people in small towns own cars, and their average monthly disposable income reaches 3,730 yuan.

This means that they have money and more free time, and with a lower cost of living, they can unleash greater consumption potential in all areas of consumption. The stickiness of Kuaishou’s old friends and their consumption potential make it a platform favored by brand owners.

04 Celebrities + celebrity effect becomes the norm

After talking about the integration of public and private domain traffic, let’s take a look at the trends specifically in the live broadcast room.

First of all, the combination of celebrities and internet celebrities has become the norm. After being empowered by the platform, the influence of celebrities is increasing. In the past, celebrities often served as foils for stars on a stage, but now stars have become the ones who complement celebrities.

In the television era, when an artist received a performance notice or needed to promote his or her work, he or she would go on Happy Camp. In the video era, they would go to short video programs on long video platforms. Now, the live broadcast room of celebrities has become one of the best choices.

Li Jiaqi’s live broadcast room often has celebrity guests, such as Zhou Zhennan, Hu Ge, Zhu Yilong, etc. The sparks created by each interaction will lead to secondary dissemination and even become a hot topic. This Sanda Family event also had concert elements, with stars like Jordan Chan, Gigi Leung, former BEYOND band member Paul Wong, Du Haitao, Chen Shian, Hu Xia and others performing.

Different from the debut model of celebrities, the accumulation of social assets of influencers is a gradual process. Once the relationship between fans or old friends is established, it will have strong stickiness. Based on the trust and emotional connection between the anchor and the fans, live streaming with goods has become a natural process of fan economy conversion.

Being able to get fans to spend money is the criterion for testing a celebrity’s true market value. After all, many celebrities may not be able to do so.

05 Charity and poverty alleviation are common topics among top influencers

In addition to celebrity guests, charity is the common mission of top influencers in their live broadcast rooms.

Platforms such as Kuaishou and Taobao Live have become new windows for poverty alleviation. At the event, the Sanda Family donated 10 million RMB to establish the Guangdong Poverty Alleviation Foundation Sanda Family Charity Fund to help patients with thalassemia and other weak people in need, poor students, and disease patients.

On the night of Double 12, Li Jiaqi and Gao Xiaosong set aside a special time slot for a purely charity live broadcast, the theme of which was to promote agricultural products from poor counties.

Data from Kuaishou in 2019 showed that in the past year, more than 19 million people earned income from the Kuaishou platform, and more than 5 million of them were from national-level poverty-stricken counties. Among them, the number of people from national-level poverty-stricken counties selling goods on Kuaishou is about 1.15 million, with an annual sales total of 19.3 billion.

In the new business era, Sanda Ge and Li Jiaqi have become the representatives of all aspects of live streaming. When a celebrity becomes a top celebrity because of public attention, they will inevitably use their growing personal influence to give back to society. To some extent, this is also a reflection of the public domain blessing the private domain, and the private domain feeding back to the public domain.

Author: Wu Duidui

Source: Wu Duidui (esnql520)