“Live streaming with goods” does not require internet celebrities!

However, even though it’s still “making friends without making money”, the effect is far from satisfactory!

What we are going to discuss today is that although "Internet celebrity e-commerce" represented by Li Jiaqi, Wei Ya and Luo Yonghao is in full swing, "Internet celebrity sales" has also been widely accepted. But what role do “Internet celebrities” play in this?

In other words, if there were no internet celebrities, would “ live streaming with goods ” still be so popular?

01. Three Key Points of “Live Streaming Sales”: Popularity + Brand + Price

Some people say that live streaming e-commerce is a conspiracy of technology and insight into human nature.

Let’s talk about “technology” first.

As we all know, just as Luo Yonghao calls himself the "first generation of Internet celebrity", "Internet celebrities" have existed for a long time. However, from the development of "Internet celebrities" to "live streaming with goods", technology has played a crucial role.

With the rise of mobile Internet, especially self-media, "Internet celebrities" have gradually moved to platforms such as Weibo and WeChat; with the rise of short videos, especially live broadcasts, "Internet celebrities" have started a new round of transfer.

With the launch of Taobao Live, selling goods has become the most effective means of monetization.

Let’s talk about “insight into human nature”.

Why do many female consumers cannot stand it when Li Jiaqi shouts “OMG”? Why do internet celebrities always shout “three, two, one, link up” and then limit the time and quantity?

Because behind these routines are insights into human nature!

So, apart from the factors of “technology” and “insight into human nature”, what other reasons are there for the success of live streaming sales?

In my opinion, the three key factors for live streaming sales are “popularity + brand + price”!

The reason why Internet celebrities are called "Internet celebrities" is because they have traffic and attention, which is the so-called popularity. It is precisely because of this popularity that Luo Yonghao's first live broadcast attracted nearly 50 million people to watch.

However, although Internet celebrities themselves have strong endorsement capabilities, this is only a prerequisite for converting into actual sales. Otherwise, it would be difficult to explain why the top live streaming hosts for selling goods are Li Jiaqi and Viya, rather than popular traffic stars.

After gaining attention, internet celebrities also need the support of brands.

Take Li Jiaqi as an example.

I believe that people who often watch live broadcasts know that many of the lipsticks and other beauty products sold by Li Jiaqi are well-known brands or even world-renowned brands. From this, we can make the following assumption: when Li Jiaqi takes out a lipstick that has no reputation at all, even if he shouts at the top of his lungs, the final sales volume will be very bleak.

The logic is that products not only need traffic support from the anchor who sells the products, but also the blessing of the brand halo.

In addition, another essential factor for live streaming e-commerce to be successful is cheap, cheap, cheap!

If there is no price advantage, why would smart consumers stay in front of their mobile phone screens? Aren’t Tmall, JD.com and offline stores more attractive?

From this we can conclude:

The reason why consumers are increasingly favoring the new consumption method of "live streaming with goods" can be summarized in one sentence: with the dual endorsement of Internet celebrities and brands, consumers will not suffer losses or be deceived. The key is that it’s really cheap!

02. Traffic is just an appearance. The key lies in the competition of supply chain.

In the era of mobile Internet, we often say that "traffic is king". But in fact, this is just an illusion of the outside world, and traffic is not a panacea.

Let’s get back to Luo Yonghao’s live broadcast.

Although Luo Yonghao's first live broadcast created the highest sales record on the Douyin platform, judging from the order conversion rate of the number of online viewers, such an achievement is actually not worthy of praise.

Why?

Based on the cumulative number of views of 48.91 million and the number of orders of 841,000, the conversion rate of the first live broadcast was only 1.72%! In other words, the vast majority of people go there just to join in the fun or listen to crosstalk.

It’s still the same as mentioned before. If traffic is king, then how can there be no traffic stars among the anchors who sell goods?

When asked about the difference between him and Li Jiaqi and Wei Ya, Luo Yonghao replied:

"We mainly sell technology products, daily necessities, cultural peripheral products, etc., so apart from the form of e-commerce live streaming sales, there are not many other similarities."

However, under the logic of “everything can be sold”, it is hard to say that there will not be direct competition among the three in the future!

In order to stand out from the competition, the strength of each supply chain must be tested.

Another reason why Luo Yonghao’s first live broadcast was not a success was due to supply chain issues.

Take the popular crayfish as an example.

Judging from the feedback from purchasing users, the main complaints are concentrated in the following points:

For example, the products were produced in May and June last year. Although they have not exceeded the marked shelf life, they cannot escape the suspicion of clearing inventory; for example, the products were not shipped in time, and some users said that they received "leaking" and "smelly" crayfish.

No matter how Luo Yonghao tries to excuse himself, it is difficult to cover up the reality that his supply chain is weak!

On the surface, the anchors only need to spend a little time to open the live broadcast room, and consumers will be eager to buy. But the truth is, from investment promotion to product selection to pricing, from event planning, script design to stage effects, including quality control and after-sales service, the anchor team needs to make detailed arrangements.

It can even be said that what kind of product selection can create topics and attract public attention; what kind of sales rhythm can maintain consumers' "hunger" and achieve maximum sales, all of these are very particular.

From this we can conclude that:

Traffic is only the appearance of “live streaming with goods”; the key ability that each anchor competes with is actually the supply chain!

03. From the perspective of the industry, it is imperative to get rid of "Internet celebrity"

Some people may say that the team’s ability to control the supply chain is directly related to the competitiveness of “live streaming e-commerce”. So, is the role of internet celebrity anchor still important?

The answer is, it’s both important and unimportant!

What is important is that the popularity and attention brought by the internet celebrity anchor himself can maximize the exposure; what is not important is that compared with popularity, what is more important is brand and price!

Some people may cite the case of Ruhnn Holdings to prove the irreplaceable nature of "Internet celebrities" in the business model. However, there is actually a huge difference between the two.

Wang Sicong once raised such a question:

“If you spend so much on marketing, what’s the point of KOLs promoting products?”

In other words, on the surface, Zhang Dayi, Li Jiaqi and Viya are all internet celebrities and have a large number of fan supporters. However, the difference is that Li Jiaqi and Wei Ya have the blessing of "brand + price".

In other words, Zhang Dayi adopts the self-operated model, while Li Jiaqi and Wei Ya play the role of "super salesmen".

However, from the perspective of the long-term and healthy development of the industry, we should still "de-internet celebrityize".

How to understand it?

On the one hand, as the wealth of internet celebrities continues to grow, the gap between their personalities and those of consumers will become increasingly large and distant; on the other hand, as traffic becomes increasingly concentrated at the top, "de-internet celebrityization" will help live streaming e-commerce truly become an industry, rather than a carnival for a small group of people.

Of course, there are other reasons for “de-internet celebrityization”.

First, while live streaming sells goods, it also takes on the function of "brand promotion". This means that what used to be media was media and channels were channels, but the two will gradually merge into one. As for brand promotion itself, there is no need to overemphasize the importance of the internet celebrity itself.

Second, as the model matures, Li Jiaqi and Wei Ya will transform into an IP in the future, and they can even be built into a "sales platform." On this platform, small and medium-sized brands and even more new brands will get the opportunity to be exposed, demand and supply will be reconfigured, and market efficiency will be greatly improved.

Third, as consumers become more rational, the importance of operations will become more prominent. As Li Jiaqi and Wei Ya have set the right example in live streaming e-commerce, more practitioners will enter this industry in the future. In other words, competition will become increasingly fierce. In this way, talent and appearance will no longer be scarce, and operational capabilities will be further highlighted.

04. Conclusion

The importance of "live streaming with goods" is self-evident.

On the one hand, it adapts to the changes in shopping and lifestyle of young consumers; on the other hand, due to the reduction of intermediate links and the enhancement of consumers' bargaining power, it can indeed bring real benefits to consumers and achieve a win-win situation for all three parties.

However, as mentioned earlier, whether from the perspective of industry development or from the perspective of the top anchors themselves, it is necessary to re-examine the consumption scenario of "live streaming with goods".

In short, after consumption habits are formed, the "de-internet celebrity" operation can win a more favorable competitive position!

Author: Brand Front Page

Source: Brand front page

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