If we say that there are already three top streamers in the live streaming e-commerce industry, in addition to Viya and Li Jiaqi, we have to mention Kuaishou's "Simba".

According to a third-party data platform, in July 2020, the transaction volume (GMV) directed by Weiya and Li Jiaqi was 1.829 billion and 1.193 billion respectively, and according to statistics, Simba's live streaming sales also exceeded 520 million.

This data has declined significantly compared to the performance of the anchors in June. Data shows that in June 2020, the transaction volumes guided by Wei Ya and Li Jiaqi were 2.74 billion and 1.45 billion respectively; while Simba’s live broadcast sales (GMV) in June was 1.94 billion, ranking second.

But it should be noted that compared with Viya and Li Jiaqi, Simba’s live broadcast density is very low.

Affected by the platform ban, Simba only had three live broadcasts in the whole month of June (in addition, there were two live broadcasts with 1-2 items on the shelves for pre-heating). By July, the number of his live broadcasts had dropped to two.

▲ Picture: Baga Entertainment Media Kuaishou Account ▲

Baga Media, represented by Simba, is only a leading live broadcaster on Kuaishou, but it has confirmed to us the speed and degree of development of live e-commerce on Kuaishou.

The opportunity is right in front of us, but so are the challenges facing the "entrants". Due to the linear cities in which they live and the high frequency of using short video products, this challenge often arises from the moment they open the Kuaishou app. Common confusions are as follows:

What kind of logic is used to push the videos to me on Kuaishou? Why am I totally indifferent?

Are you sure Simba is not brainwashing during his live broadcast? Why is it still so popular?

Apart from hiring influencers to promote products, can brands really make a big splash on Kuaishou? There are so few MCNs that perform well?

Does it cost 10-30 yuan to sell goods on Kuaishou? Our average order value is over 300, can we sell it?

…

Due to the lack of understanding of Kuaishou, many entrants get their information from media reports and (past static) data reports, rather than real practice. Therefore, when the information they understand has both A and B sides and their judgment is reduced, their entry speed will also be slowed down. Therefore, it is necessary to take everyone to dynamically understand the current Kuaishou live streaming sales . Here are 6 common problems:

2. Are Kuaishou’s users really the only ones shopping there?

Not necessarily. It can only be said that users in fourth-tier cities and below have higher stickiness to Kuaishou live e-commerce.

Because compared to first-, second-, and third-tier users who constantly jump to various e-commerce platforms (and live broadcast rooms) to shop and are accustomed to comparing prices, fourth-tier and below users are more likely to regard Kuaishou as the only e-commerce shopping platform and are more willing to discuss the products they want to buy in live broadcast rooms and comment areas (with other friends).

According to official data from Kuaishou, 47% of people will directly consult other people’s feedback on their purchases in the comment section after watching a short video, and 60% of users will buy products after discussion. At the same time, among them, there are many e-commerce "newbies" who have not been enlightened by traditional e-commerce. Therefore, they have a higher favorability towards white-label Kuaishou platforms that can use WeChat payment.

Looking at the specific provincial distribution, among the 50 live broadcast rooms of the highest sales on Kuaishou in June, the largest number of fans came from Hebei (13.01%), Shandong (11.81%), and Liaoning (7.33%), followed by fans from Guangdong and Henan; and from the city distribution: the largest number of fans are from seven northern cities, including Beijing, Shijiazhuang, Cangzhou, Baoding, Harbin, Changchun, and Linyi, and all first-, second-, and third-tier cities are covered.

It should be mentioned here that if we break it down by province, the users in Henan and Guangdong are more philanthropic, and if we break it down by city, the users in Beijing and Chengdu are more philanthropic. In comparison, users in Shanghai and Chongqing "only" love Douyin.

2. The more fans the anchor has, the more guaranteed the sales will be?

Obviously not. Let me explain this to you from two data dimensions:

First, looking at the top 10 KOL accounts with the highest number of fans on Kuaishou (excluding official accounts, celebrity accounts and media accounts), except for Simba and his anchor Mao Meime, who can truly be called the king of selling goods, other accounts, including: Sanda, Xiao Yiyi, Erlu, Bai Xiaobai, etc., although they have experience in selling goods and relatively successful data endorsement, they are still entertainment/show hosts in essence, and some of them are already in a state of "losing fans".

▲ The top 10 Kuaishou influencer accounts counted by KasData, data as of August 5, 2020 ▲

The core reason is that these anchors do not have complete control over the supply chain and lack systematic e-commerce operation capabilities. There are also few anchors in their family who can sell goods, and their professionalism is also poor when introducing products.

Therefore, they may be able to combine the "advantages of goods" and "their own anchor experience" to achieve explosive sales for their products in a certain brand special event, but their ability to achieve continuous explosive sales still needs to be tested;

Second, we can also look at the data of the two anchors extracted by Kas (because of the sensitivity, we blur the name of the KOL) and clearly see:

Although KOL A is already a super anchor with more than 20 million fans, and the frequency of live streaming sales is also maintained at a high rhythm (more than 2 times a week), it can be clearly felt that KOL B with more than 10 million fans is as capable of bringing goods as A. This can be reflected in B's recent video operation data (such as: video broadcast to like ratio, like rating ratio, fan growth data) and fan quality, and can also be reflected in KOL B's fan portrait and current sales ability. Relatively speaking, KOL B's fans are relatively more mature, and the average transaction price is also higher. As both of them are selling beauty and personal care products, KOL B (compared with A) is more stable.

▲ Kas Data statistics of KOL A and KOL B ▲

Therefore, Kas also reminds brands that want to invite Kuaishou KOLs to sell products not to only evaluate the KOLs’ true ability to sell products from the fan dimension, but also to combine their recent operating data, fan quality, and fan public opinion (even public opinion on other social platforms) to have a deep understanding of fans’ love for the KOLs , and comprehensively evaluate the KOLs’ ability to sell products and the stability of the cooperation based on the KOLs’ historical sales data (sell categories, sell GMV, average single-game sales data, etc.).

3. Are the products that sell well in Kuaishou’s live broadcast room those priced below 50 yuan?

Judging from the overall sales volume, the best-selling products on Kuaishou are still those in the 30-50 yuan range (accounting for 35.12%). After all, low-priced products are more likely to activate users' shopping impulses .

Of course, this is also related to the "product selection" of the anchors. The anchors will often choose some products with low average order value as traffic-generating products, welfare products, and fast-selling products to increase sales. At the same time, it can also effectively drive the popularity of the live broadcast room and satisfy the user's psychology of getting a bargain.

However, since June, the average order value of the live broadcast rooms of the 50 anchors with the highest sales on Kuaishou has actually shown an "upward" trend. According to the data from Kas Data, among the TOP50 anchors in June, 38% of the anchors’ unit price exceeded 100 yuan, and 32% of the anchors’ unit price was between 50-100 yuan . Although the data for the TOP50 sales list in July has not yet been compiled, it is foreseeable that as a key month for the sale of #off-season clothing, the down jackets, cashmere, wool coats, etc. sold by Kuaishou anchors are expected to further increase the average order value.

It should be noted here that the increase in average order value was to some extent affected by the epidemic. Brands have accelerated their entry into Kuaishou , with clothing, beauty products, jewelry, jade, and home appliances entering the market the fastest. Inviting top anchors to bring products has become their core choice, which will lead to an increase in average order value.

Not only that, in order to improve user trust and repurchase rate in the live broadcast room, Kuaishou's top anchors now care about their fans more than before, and have strengthened the quality control of daily sales products (the supply is also more sufficient than before). These will bring about an increase in average order value, but the former has a greater impact.

4. Which categories and brands sell well on Kuaishou?

There is no doubt that clothing, beauty and personal care (mainly personal care) still account for the largest share. In addition, jewelry, home appliances, food, home textiles, and maternal and child products are also growing rapidly on Kuaishou.

Judging from last year’s data, most of the products selling well on Kuaishou were white-label products, but now two “extremes” have emerged.

One extreme point is that as brands accelerate their entry, including Adidas, Xue Zhongfei, Semir and other brands have opened multiple special sessions on Kuaishou, making the number of brand merchants on Kuaishou more and more, and their presence is becoming more and more active . Not only that, the categories on Kuaishou are becoming more and more abundant. The reason is that since late May, Kuaishou has opened up the category restrictions for anchors to bring goods, from only allowing three main categories to encouraging diversified goods. Jewelry, jade, small appliances, and home textile brands, such as China Gold, Jinliufu, Chow Tai Seng, Supor, Midea, etc. have joined hands with Kuaishou's top anchors to bring goods, and the overall results are good ;

The other "extreme" is that white-label products with good reputation and high cost-effectiveness are still the mainstream.

Among them, the most typical best-selling white-label products are concentrated in the food and beverage, household daily necessities, clothing and other industries. Compared with other industries, users emphasize the practicality and reputation of this type of products. Once these two points are met, they are willing to place an order. This probably explains why hot and sour noodles, snail noodles, hot pot, facial towels, sanitary napkins, etc. that lack brand awareness can be rampant on Kuaishou and continue to be rampant.

5. Can brands really ignore product promotion and directly sell products on Kuaishou?

For some of the categories we mentioned above that emphasize functionality and practicality, or categories that lack leading brands, this is still possible.

However, as more and more brands enter Kuaishou, the e-commerce consumption of users in the sinking market is driven to mature, and the brand consumption awareness of the old friends is gradually awakening. Relatively speaking, they are more willing to consume products with a certain brand awareness and recognition. Products with brand power also have stronger premium ability in front of users.

Therefore, it is recommended that brands with a budget should still do both grass-planting and sales promotion, but the grass-planting platform is not necessarily limited to Kuaishou. After all, Kuaishou's "decentralized" content distribution makes the brand grass-planting efficiency and exposure relatively limited. If the brand wants to achieve brand power and sales power in a short period of time, on the one hand, it can find top anchors who are in line with the brand's tone to cooperate, so that grass-planting and sales can occur at the same time (but such top anchors are very few); on the other hand, it can also consider integrated marketing across the entire network and manage its own budget in a refined manner, but the focus is on Kuaishou's harvest.

In addition, it is also recommended that brands look at the conversion effect of live streaming rationally. In many cases, live streaming has the ability to "turn luck around."

6. When brands use Kuaishou, is it necessary for them to learn from e-commerce anchors to get on the list in seconds?

Regardless of whether it is for new anchors or brand merchants, Kas believes that there is nothing wrong with the early second ranking itself, but before the second ranking, you must think about solving the following three problems:

1) Whose list is the best? What is the reason for the second place?

This study combines both emotional and rational perspectives. From a rational perspective, we can look at the data to see how well the anchor’s fan portrait fits the brand user portrait, the popularity data in the anchor’s live broadcast room, historical reward data, who is giving rewards, etc.? From an emotional perspective, you can personally watch a few live broadcasts of the host you want to top the list to see whether his popularity declines when he or she connects with e-commerce hosts. You can also look at user comments in the live broadcast room, etc., which can reveal the host's fan stickiness.

As for the reasons for being on the list, it can be summarized as follows: it can be on the list during big brand promotions, annual brand day, when the number of fans exceeds XX million, when new products are launched, and when promotions are used to clear inventory. On the one hand, being on the list can increase sales, and on the other hand, it can also bring brand popularity and make the brand more widely noticed by old friends;

2) When it comes to ranking first, what impresses users?

There are two aspects that impress users. On the one hand, it depends on the "products" you promote: Is it a high-frequency consumer product? Is it cost-effective? Is there any early market awareness? On the other hand, it depends on the content of your video: before and after users decide to buy your products, they will often check your homepage, your homepage introduction, your personal tags, and whether the video content is attractive to them.

I have watched too many live broadcasts on Kuaishou. Many anchors did not do any content construction before hitting the charts, and just started the crazy "gold-sprinkling" mode. This process may bring a burst of orders for your products, but unfortunately, you missed the reason for your friends to pay attention to you, that is, you missed the opportunity to accumulate private domain traffic that the second ranking can bring;

3) Do you have enough ability to take on the challenge?

The ability to take on the list can be simply required as: professional, that is, understanding the product; friendly, that is, understanding the users; able to perform (familiar with Kuaishou’s 10 major sales skills), that is, understanding Kuaishou. Many times, "acting" is not just for selling products, but also partly to increase the appeal and popularity of the live broadcast room. People who are good at taking over the show can also greatly influence transactions.

The above are 6 truths from Kuaishou summarized for you, but this is just the tip of the iceberg of Kuaishou e-commerce.

Author: Kas Data

Source: caasdata6

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