4 major strategies revealed, there is no more comprehensive information on live broadcast product selection!

2020 can be called the first year of live streaming, and live streaming sales have become the driving force for growth in the entire industry. In the just-concluded Double Eleven, Li Jiaqi and Wei Ya’s live broadcasts generated sales of over 8 billion in one night. Douyin’s live broadcast was not to be outdone, with sales reaching 18.7 billion during the Double Eleven period. With the upcoming Double 12, the last promotion of the year, how can we stand out from the crowd and create surprising sales results?

Today we will discuss the "goods" among the three elements of live streaming e-commerce, namely "people, goods, and place", and teach you how to achieve unexpected success when selecting products.

Welfare low-priced products boost traffic, and hot-selling products boost sales

To achieve higher sales, you need a combination of multiple products, and how to combine them is the real key. If the live broadcast room only sells low-priced products of 9.9 yuan, although the traffic of the live broadcast room is very high, it is difficult to make a breakthrough in sales. If all the products are high-priced, a lot of traffic may be lost.

First of all, we need to divide the product structure of the live broadcast room into hot-selling products, welfare products, cannon fodder products, profit products, etc. Different types of products should be matched with different operational ideas.

The welfare funds are mainly used to attract traffic to the live broadcast room. Welfare products are usually low-priced goods, or sold in the live broadcast room at a price much lower than the market price. At the same time, we must take into account the user's consumption habits. Daily necessities with high consumption frequency, such as paper towels, laundry detergent, etc., as well as snacks such as snail noodles and bread, are the best tools for increasing traffic. Users have strong demands for these products, and they are suitable for stockpiling at home, so there is no need to worry about buying too much.

For example, during the Double Eleven period, the Beibeitu special event had sales of over 100 million yuan in a single event. It can be seen that the products at the top of the sales list were all low-priced traffic-generating products. The highest-selling product, snail noodles, exceeded 70,000 units, bringing a large amount of traffic to the live broadcast room.

▲ Screenshot of Cicada Mama’s data

The biggest function of a hot-selling product is to boost business performance. The price of a hot-selling product is not necessarily low, but it must be the product that users like most and has the highest cost-effectiveness at the current stage, so that it can achieve the effect of selling in large quantities. For example, we can see from Chanmama data that winter cold-resistant products such as down jackets, jumpsuits, and base shirts have become popular recently.

In addition, although the profits of products such as iPhones, Huawei phones, and Apple headphones that often appear in Douyin live broadcast rooms are very low, and many live broadcast rooms even sell them at a loss, they are all hot-selling products that can bring higher sales to the live broadcast rooms. Generally speaking, in a live broadcast, 70% of sales are contributed by 5-6 hot-selling products.

The profit payment is mainly used to bring profits to the live broadcast room. The price of this type of product may not be attractive, but it has its own unique features in style and function. This type of users are mainly fans who pursue quality of life. They are less sensitive to price and will place an order as long as their needs are met. The shipment volume of this type of goods is generally not large, but the profits it brings are relatively considerable.

The cannon fodder model is mainly used as a target for hot-selling products. In addition to the above three products, the last product is the type that many people tend to overlook. This type of product itself does not have the function of boosting sales. Its main function is to compare with hot-selling products. Before the hot-selling products are put on the shelves, some products with poor designs and high prices are prepared for fans, so that fans can have an idea in their minds that clothes of the same price will look like this. After the hot-selling products are put on the shelves, fans' expectations can be lowered. After comparison, users find that the popular styles are better than the cannon fodder styles and have more advantageous prices, which will also make it easier for users to place orders.

Three major factors affecting product selection in live broadcast rooms

After determining the four types of goods, the anchor needs to consider the following three factors when selecting products. These three factors play a key role in the sales of the entire live broadcast.

1. Brand. The first factor in product selection is brand. Brand awareness, user reputation, and even after-sales service all need to be considered. Brands with high visibility and good reputation can attract traffic to the live broadcast room, and they can release previews to attract traffic during the early stage of warm-up.

When selling in the live broadcast room, users are more willing to place orders for this type of product, and there is no need for much introduction; users will naturally place orders. At the same time, this type of product can avoid negative after-sales experience after sales and also has a positive effect on the image of the anchor.

2. Products. When live streaming, you need to have a rich product portfolio. For example, the four product types we mentioned above need to appear in the live streaming room at the same time to make the entire live streaming effect better. At the same time, a live broadcast should include new products, hot-selling products, and inventory products. New products can exist as featured products, hot-selling products as profit products, and inventory products as low-priced products to attract customers.

3. Price. The last one is price. Nowadays, live broadcast rooms mainly focus on low prices, so price advantage is also a key factor in the success of the live broadcast room. This requires the anchor and the operation team behind them to have strong supply chain support and good bargaining power with brands.

Matching fans’ needs with their spending power

Whether it is price, brand, hot-selling items or welfare items, these are all factors of the product. Finally, there is an even more important "people" who need to be considered when selecting products.

The "people" here refers to the host's fan portrait. The types and brands of live-streamed products need to meet the needs of the fan group, and the prices of the products must correspond to the fans' affordability. The purchasing power of fans of different anchors also varies. If the price of a product is higher than the budget or far below expectations, it will be difficult for fans to buy it.

It can be seen that male groups are the majority in Luo Yonghao's fan portrait, with male fans accounting for 71%. Therefore, the products sold in Luo Yonghao’s live broadcast include a large number of mobile phones, digital products, and many men’s care products.

▲ Screenshot of Cicada Mama’s data

As for whether the price can meet the needs of users, the anchor can see the age distribution of his fans through Chan Mama. If the age group is relatively low, the price they can accept will also be relatively low. At the same time, the anchor can first select products in different price ranges within a period of time to test the purchasing power of fans, and use this to decide the price range of the selected products.

2 Product Selection Strategies to Achieve Higher Sales

In addition to the product selection logic mentioned above, if you want to increase sales in the live broadcast room, the anchor also needs to have his own live broadcast strategy.

1. Promote "hot products" instead of "all products"

First of all, in the live broadcast room, anchors should not blindly recommend products of all categories, but should focus on the products on the spot, because users will only buy a few products that they are interested in, not all products. For “hot-selling” products, the anchor needs to spend more time introducing them to stimulate users to place orders. It is not uncommon for a live broadcast room to be sold with a high-selling hot product, so it is very important to have a hot product that suits the anchor's tone.

2. Leverage platform activities

The second method is to take advantage of the trend. Now all major platforms attach great importance to live streaming sales. During the Double 12 period, Douyin launched a variety of gameplay and traffic support plans. Anchors should actively participate in activities launched by the platform. These activities can boost traffic in their live broadcast rooms, so it is a good opportunity to earn a reputation. Under this premise, the anchor’s sales will also increase.

Summarize

Douyin’s Double 12 promotion is coming soon. Product selection is crucial to the sales of anchors. Only with better product selection strategies can higher sales results be achieved. However, at this stage, consumers have higher and higher requirements for the products in live broadcast rooms. Price is no longer the first reason for consumers to place an order. Consumers are more concerned about cost-effectiveness. Goods with good quality and low prices will be the mainstream of live broadcast rooms in the future.

At the same time, new policies and regulations are constantly being introduced in the industry, which will also standardize the development of live streaming sales. Many inferior products will gradually be eliminated from the market, which, to a certain extent, will also play a positive role in promoting the industry. Chan Mama will also continue to pay attention to the latest developments in live streaming sales and deliver the latest industry news as soon as possible.

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Author: Cicada Mom Data

Source: Cicada Mom (ID:cmmshuju)