E-commerce live streaming | 2020 short video KOL live streaming e-commerce insight report

Today I’d like to share with you an analysis of how KOLs promote products.

Since entering 2020, the live streaming traffic on short video platforms has grown rapidly. As of September 2020, the proportion of users watching live streaming on Kuaishou and Douyin platforms has reached around 80%, and the live streaming e-commerce purchasing closed loop has basically been formed. Among them, 58.5% of Kuaishou’s top KOLs participated in live broadcasts (and 36.6% of them brought goods). In comparison, about 27.5% of Douyin’s top KOLs participated in live broadcasts (and 51.2% of them brought goods).

The average number of live broadcasts by KOLs that sell products is lower than those that do not, but their average duration is 3.1 hours, far exceeding the duration of live broadcasts without products (1.8 hours). At the same time, from a daily perspective, the peak time for live broadcasts is mainly concentrated around 9 pm. The more active users there are, the more goods are brought in, which proves that the mass base is the basis for KOLs to negotiate with merchants.

From the perspective of product promotion, beauty and skin care, food and beverages, clothing and accessories, and home life are the four most active categories, and the sales volumes are not much different. The number and sales volume of beauty and skin care products in the 100-200 yuan range are the highest, while the best-selling food and beverage products are those priced below 50 yuan; in the clothing accessories and home life categories, products below 50 yuan are also the best-selling, but mid-priced products around 500 yuan also have a place.

The mechanisms for producing hit products in different categories are also different. You may want to read the report to learn the specific methods.

1. Live streaming e-commerce on short video platforms is becoming increasingly popular

Maturity: KOLs actively transform into live streamers

1. The live streaming traffic of short video platforms continues to grow, and users are more dependent on live streaming, laying a solid foundation for live streaming e-commerce to enter the fast lane.

2. The platform continuously optimizes product functions and services, promotes the development and maturity of live e-commerce, and gradually forms a content e-commerce ecosystem with influencers bringing goods as the main model, becoming an important scenario for brand marketing

3. Short video influencers and pan-entertainment anchors use the platform's traffic and policies to gradually transform into live streamers by creating content and shaping their personalities.

2. Live streamers target young users and meet their dual needs of entertainment and shopping

1. Kuaishou live broadcast has stronger pan-entertainment attributes, and top KOLs are generally more enthusiastic about live broadcasting; Douyin top KOLs have more direct monetization needs, and a higher proportion of them start live broadcasting with goods.

2. The process of live streaming with goods is cumbersome and the preparation period is long. The average number of live streaming with goods by KOLs is lower than that of live streaming without goods, but the duration is significantly longer.

3. Both live streaming with goods and live streaming without goods are concentrated in the evening, with the peak at 9 pm, which meets the dual needs of users for entertainment and relaxation and shopping, forming a "companionship economy"

4. The number of active KOL users is positively correlated with the number of products sold. Top KOLs with a sales volume of over 100 million bring the most products, demonstrating their strong investment attraction capabilities.

5. Although there are few celebrities and fashion KOLs who carry out live streaming, they carry a large number of products. The number of products carried by cute pets and parent-child KOLs is also large, showing the commercial potential of vertical groups

6. Compared with the overall KOLs of Douyin and Kuaishou, the audience of live streaming KOLs is higher in the proportion of young users under 30 years old and with high spending power, and there is little difference between cities

3. "Good quality and low price" is the main feature of the products in the live broadcast room, and the four major categories are advancing in parallel

1. The platform promotes its own channels, and products under 100 yuan are the best sellers

1.1 The platform gradually improves its own e-commerce system and guides the sale of goods through its own channels. Douyin stores are basically the only channel, and Kuaishou stores account for one-third.

1.2 The products sold in the live broadcast room are basically sold at a low price, and the sales of products below 100 yuan account for more than 80% of the total

1.3 The sales of goods in the live broadcast room showed a fierce competition. Only 10% of the goods sold more than 2,000 pieces, accounting for nearly 70% of the sales.

1.4 Beauty and skin care, food and beverages, clothing and accessories, and home life are the four most active categories, and their sales are comparable

2. Beauty and skin care products

2.1 The number of products in the beauty and skin care category in the 100-200 yuan range is the highest, and the overall price range is much higher than other categories

2.2 The number of hot-selling products in the beauty and skincare category accounts for 5% of the total, and their sales slightly exceed half of the total. Non-hot-selling products also have more market opportunities.

2.3 KOL’s reputation and brand play an important role in the sales of beauty and skin care products. The product titles in the live broadcast room are marked with KOL’s “recommended” and “exclusive” descriptions.

3. Food and Beverage Category

3.1 Food and beverage products with a low price range below RMB 50 have the highest quantity and sales volume, and the lowest overall average selling price

3.2 The head effect of food and beverage products is the most obvious. Hot products contribute more than 80% of sales, reflecting the category characteristics of "small profits but quick turnover", among which snacks and alcoholic beverages are the most obvious.

3.3 Food and beverage categories target the widest range of people. KOLs mainly promote sales through preferential prices and package prices. This category of products is also often used by KOLs to give benefits and pamper fans.

4. Clothing accessories

4.1 Among clothing and accessories, standard items priced below RMB 100 are easier to sell. The National Day coincides with the transition period from autumn to winter, and down jackets at mid- to high-end prices also see significant sales.

4.2 Clothing and accessories also have a head effect. The number of hot-selling products accounts for the highest proportion, accounting for more than 70% of sales, mostly standard products such as pajamas, leggings, and sweatshirts

4.3 Some male KOLs influence male users’ purchasing decisions by showing the appearance and performance of products in their live broadcasts, making autumn and winter clothing for men a hot item.

5. Home life category

5.1 Home living products cover a wide range of categories, with diverse product categories. Sales in each price range are more balanced than other categories, and low-priced products are easier to sell.

5.2 The hot-selling effect of household products is at the middle level. Consumables such as towels, toothbrushes, and laundry detergent have large shipments, while kitchenware and small appliances are relatively rare.

5.3 Most of the hot-selling products in the home life category are kitchen and bathroom products, which are rigid demands. The anchors usually impress users with preferential prices and combination packages.

Author:QuestMobile

Source: QuestMobile (QuestMobile)