Brand live streaming sales strategy!

From November 15th to 16th, L'Oreal was on the hot search list by netizens because of the "price difference" incident. The cause of the incident was that netizens discovered that the price of the "L'Oreal Ampoule Mask" purchased in the L'Oreal brand live broadcast room was actually lower than that in the live broadcast rooms of Li Jiaqi and Wei Ya. After the incident fermented, all major media reported on it. Li Jiaqi and Wei Ya also issued a statement on November 17:

"We specifically request L'Oréal Paris to resolve the issue within 24 hours, and will suspend all cooperation with the L'Oréal Paris official flagship store until the matter is properly resolved."

Is the cooperation between brands and anchors a win-win situation or does it just take what they need? For brands, it is not easy to enter the live broadcast room of top anchors. The strict product selection process and the product combination pricing strategy of "the lowest price on the entire network" means that the brand's pricing system has been broken to some extent, which has an impact on the brand's pricing strategy layout.

After the L'Oreal price difference incident, negative comments continued to appear on various platforms such as L'Oreal's official Weibo. After conflicts arose between the anchor and the brand, most of the public opinion was one-sided. How can brands and anchors achieve win-win cooperation?

Brands rely on traffic, who are the workers?

L'Oreal is not the only company that has had conflicts with brands and channels. In the recent Li Jiaqi and Yuze incident, Yuze also suffered from the majority of fans leaving and receiving negative comments. So, who is working for whom, the brand or the anchor?

Problems are bound to arise when a brand is highly dependent on channel traffic. When the traffic dividend fades, can the brand continue to spend a lot of money on traffic when its customer base is limited? The potential of top anchors is constantly increasing, and they use their fans to threaten brands to give the lowest prices and product combinations on the entire network. The situation of "low-price monopoly" is becoming more and more serious.

Faced with the huge public domain traffic dividend, brands have established exclusive live broadcast rooms and started to fine-tune the operation of brand self-broadcasting to accumulate brand private domain traffic. This year's Double Eleven data shows:

According to official data from Tmall, the total transaction volume of Tmall Double 11 in 2021 was 540.3 billion. Data shows that as of 23:00 on November 11, the transaction volume of 698 small and medium-sized businesses has jumped from the millions to the tens of millions; 78 brands whose transaction volume on Double 11 last year was in the tens of millions, have exceeded the 100 million yuan mark in transaction volume on Double 11 this year.

Douyin's Double 11 Good Products Festival has come to an end. Data shows that the total live broadcast duration reached 25.46 million hours, of which the total live broadcast duration of merchants reached 12.27 million hours. The total cumulative number of viewers was 39.5 billion. There were 577 brands with brand transaction volume exceeding 10 million (including 100 million), and 282 live broadcast rooms with a single transaction volume exceeding 10 million (including 100 million).

During Kuaishou’s “116 Quality Shopping Festival” (October 20 to November 11), the number of e-commerce merchants broadcasting live increased by 52% compared with the same period last year, among which the number of brand merchants broadcasting live increased by 391% year-on-year. More than 4,000 brand merchants participated in 116 for the first time. The overall number of brand product orders increased by 350% year-on-year, and GMV increased by 433% year-on-year. The GMV generated by merchants with the assistance of Kuaishou’s officially certified service providers accounts for nearly 50% of the total. Kuaishou Store Trust Card continues to protect 97% of buyers.

Various data show that there is an obvious trend of brand self-broadcasting, and many brands have begun to launch a brand self-broadcasting war. The " Herboretum Story of Yanxi Palace" that became popular some time ago made the live broadcast room scene like a palace, and the live broadcast content became a performance of Qing Dynasty palace drama. In addition to cooperating with influencers, brands have unexpectedly developed new live streaming methods to create a "ceiling" for live streaming content, thereby increasing brand exposure.

After the L'Oreal incident, the Fenghua brand quickly became an internet celebrity by "crying poor" on Douyin. Why would an old brand cry poor on Douyin? The reason was that some time ago, netizens did not find the product of Fenghua in the supermarket. Netizens suspected that Fenghua had gone bankrupt, and commented and asked under the official Douyin account of Fenghua . For a time, the rumor "Fenghua has gone bankrupt?" became popular on Douyin.

Afterwards, Fenghua published a statement on multiple social platforms stating that it "did not go bankrupt" . Subsequently, the "bankruptcy" incident fermented, and more and more netizens joined the hot topic of "in order to prevent Fenghua from going bankrupt", and "showed their magical powers" under the official Douyin of Fenghua:

Some netizens suggested that Fenghua could participate in the National Advertising Competition, some netizens mentioned that the price was too cheap and could be raised, and some netizens even directly placed an order to buy a box of Fenghua.

Most netizens do not understand the product packaging design of Fenghua and ask Fenghua to change its packaging. Netizens spontaneously designed product packaging for Fenghua. In order to prove itself, Fenghua even posted the new product packaging on Douyin. Netizens commented: "Look at this for yourself, does it look good?" This has attracted another wave of concern from netizens.

Although Fenghua is a decades-old domestic product, the consumer market has undergone tremendous changes today, with the rise of Generation Z and hot new consumer brands. If a brand does not try new changes in product quality and packaging, it will not be able to stand out from the crowd.

In order to meet new consumer demands, Fenghua has also tried to actively communicate with young people on platforms such as Xiaohongshu, Douyin, and Weibo . Last year, it also officially announced its first spokesperson "Lamu Yangzi", which has greatly helped to further rejuvenate the brand.

Under the trend of national tide in 2021, it is no longer a new thing for domestic products to be rejuvenated with the help of new traffic and new channels. It has been less than three months since Erke donated 50 million yuan and the threshold of its live broadcast room was trampled. Fenghua has become popular again by "closing down". Afterwards, Fenghua struck while the iron was hot and launched a "co-creation design activity", seizing this opportunity to let more young consumers know the brand.