In The Era Of Live E-Commerce Traffic Stock, What Do Businesses Need To Make Money?

This article is reprinted from insight (ID: lxinsight), author: Zhong Wei, editor: midnight.

In 2016, mushroom street and Taobao launched the live shopping function one after another, officially opening the prelude to the development of domestic live e-commerce.

In the five years of high-speed development, now, the live e-commerce has slowly bid farewell to the "rough growth" and is experiencing the process of waves scouring sand.

In the process of shuffling, the importance of fans' value appears.

In the original eyes of most businesses, celebrities with more fans mean they can bring goods, but more and more cases show that more fans do not mean high conversion rate.

In recent years, the return rate of Wang Bohan was obviously lower than the expected return rate of Wang Bohan, but the return rate of Wang Bohan was only 0.3 million, which was lower than the expected return rate of Wang Bohan.

There is no doubt that they are celebrities and have many fans, but this does not mean that they are willing to pay for live e-commerce.

"Quality" is more important than "quantity", which has gradually become the industry consensus.

Valuable fans have become the foundation of anchor with goods.

In the Taobao live broadcast, when the anchor "lieer baby" has less than 4 million fans, the business transformation index has been higher than that of Zhang Dayi, the first generation of online celebrities with more than 10 million fans.

Also in mushroom street, during the double 11 in 2020, the anchor "little sweetheart"_ With 2 million fans, it has created 273 million transactions per game. When there is a gap between the number of fans and the head anchor, the final turnover catches up with the latter.

At present, the flow dividend of live e-commerce is gradually disappearing. In the future, industry competition will shift from traffic increment to traffic stock competition.

And the promotion of the value of the anchor fans will be the key to break the game. The higher the value of fans is, the higher the stickiness, repurchase and conversion data are. Compared with traffic, this may be a more intuitive and rational evaluation standard.

For brands and businesses, choosing the platform and anchor with high fan value is also an effective way to avoid stepping on the pit and improve efficiency.

Recently, 36 krypton Research Institute, based on the data of popular people's point set, measured and calculated Taobao, shuoyin and mogujie platforms, and found that Taobao's Gmv is the highest and fans' value is high. However, an interesting phenomenon is that when the Gmv of the platform is low, the fans' value is also very high, and even the whole network takes the lead.

Behind these data lies the core playing method of live e-commerce in the second half. So, what is the fan value related to? Why does the seemingly small-scale mushroom Street create more fans' value than taoshukuai's head anchor? How should brands and businesses in the industry chain seize the "fan value" bonus?

1、 Why is fan value important?

The importance of fans' value has become increasingly prominent.

The value of fans can be divided into several aspects: when the value of fans is higher, it means that the retention rate is higher in the process of ordinary fans turning into loyal fans; the more fans are willing to take out their wallets and buy goods; the more fans buy on average.

Kevin Kelly has a "one thousand fans theory" which is popular among Internet people in China. Any creator who has 1000 fans can make a living.

The same 1000 fans can show different values in the hands of different anchors. The cashability of 1000 fans can be better than that of 10000 fans.

A group of data in the Research Report on China's live e-commerce industry in 2020 published by 36 krypton Research Institute, which calculates the value of fans according to the number of Gmv fans in a single show based on the data of red people. After comparing the fan value of Taobao, shuoyin and mogujie platforms from November 1 to November 11, 2020, it is found that the value of one mogujie fan = 6.9 twitter fans = 4 Taobao live fans.

"Little sweetheart", the anchor of mushroom Street_ However, the contribution of a single fan can exceed 100 yuan. Compared with Weiya, the head anchor with 38 million fans, the contribution value of a single fan is about 22 yuan based on a live broadcast with 850 million goods.

For businesses, it is an effective "refuge guide" to cooperate with anchors with high fan value and choose platforms with high fan value.

The contribution value of a single fan means that it can bring higher customer price to merchants. At the same time, fans' value brings high stickiness, high conversion and high repurchase, which can bring them more sales and sales.

Especially for sales oriented businesses, fans value is a necessary indicator. In the live broadcast industry, the vast majority of anchors try to exchange the brand value for a large amount of pit fees. The measurement standard of brand value is mostly the anchor's fan level. The larger the magnitude, the higher the threshold of pit fee.

But for businesses, it is risky and expensive to choose a celebrity to take goods with them. For businesses, compared with the reputation of the anchor, the most important thing is the anchor's ability to bring goods. The higher the value of the anchor's fans, the better the marketing effect of the merchants, and it is also possible for fans to buy goods many times. Generally speaking, choosing the anchor with higher value of fans will reduce the risk and make money more easily.

In addition to choosing the right platform, we need to choose the right platform.

Some live e-commerce platforms have formed high fan value. According to the financial report of mushroom street, in Q1 of fiscal year 2021 (i.e. April 2020-june 2020), the conversion rate of direct broadcast on mushroom street is 24%, the average daily live viewing time is as long as 71 minutes, and the 30 day repurchase rate is as high as 91%.

Now, businesses are making efforts in the sales peak season at the end of 2020, which is a critical period to boost sales, improve product visibility and gain loyal users. Live delivery with goods is naturally a sales method that can not be ignored. In a market of mixed fish and dragons, choosing a platform with higher fan value such as mushroom Street will lay a good foundation.

For newcomers and mid waist anchors who have just entered the industry, the pursuit of fan value has become the first issue to be considered if they want to survive in the industry.

They need to find a suitable platform to test the water. In platforms like mushroom street, the income generated by a new anchor to obtain a single fan is higher, the number of fans required to complete the same transaction amount is lower, and the difficulty is smaller, so the original accumulation of cash can be completed quickly. This means that it is easier for new anchors to grow up in mushroom street.

Platforms are also pursuing the promotion of fans' value, because it also affects the external evaluation of enterprise value. In the enterprise valuation model, the calculation of user value is particularly important. There are several key indicators, including the number of users, user stickiness and the income generated by each user.

When the value of fans is higher, the platform can also attract more anchors and business cooperation. Under this soil, anchors can also improve themselves, bring more transformation, leverage higher sales, and help the live e-commerce platform constantly break through the growing ceiling.

All this has formed a positive cycle, which helps the anchor and platform gain greater advantages in the fierce competition of live e-commerce industry.

In a word, the platform with high fan value makes it easier for businesses, anchors and platforms to make money. The huge impact of dismantling on the value of the whole e-commerce industry. So, how should businesses seize the "fan value" bonus of some platforms and anchors?

2、 How can businesses make money through "fan value"?

As mentioned above, fan value is an important tool for businesses to avoid pitfalls, but high average fan value does not mean that all categories sell well. Choosing the right platform is the most important link.

Different platforms have different fan attributes. In the live e-commerce ecosystem, platforms are divided into three categories: traditional e-commerce platforms represented by Taobao, entertainment content platforms represented by express, and shopping guide community platforms represented by mushroom street.

Each has its own advantages. 36 krypton Research Institute's "Research Report on China's live e-commerce industry in 2020" believes that the differences of the three platforms determine their advantages and disadvantages.

Traditional e-commerce platforms and shopping guide community platforms are rich in SKUs, with relatively stable supply chain and strong purchasing mentality, but they mainly focus on brand-name products, and the flow is not as good as the entertainment content platform. Although the latter is dominant in traffic, most fans are entertainment oriented, with strong brand communication attributes and low conversion rate. The live e-commerce platform with shopping guide community attribute has more vertical categories and limited traffic scale.

Therefore, for businesses, if the category is a standard brand, the general conversion rate of Taobao live is stronger, which is suitable for brand promotion and tail clearance. Popular models with internet red attributes, such as jet mops and online red facial masks, may gain more added value of traffic on the entertainment platform and form self propagation effect. It is recommended to plant grass in live broadcast and short video.

For vertical beauty makeup and clothing, especially the fashionable and good-looking high-quality price comparison, it is recommended to use the live broadcast of mushroom street, because fans have a high degree of trust in these categories, strong re purchase, and do not charge high threshold pit fees, which is more suitable for businesses to start.

The second step is to measure the fans value of the anchor in the price section of the category. The overall fans value of the anchor is high, which means that the stickiness is better. However, not all categories in all price ranges can sell well. Businesses must refer to the fans value of the category in this price range according to the anchor's historical live broadcast.

It is difficult to form a leap forward breakthrough in general live broadcast with goods. The overall turnover can be roughly estimated by multiplying the historical single live broadcast fans value by the current number of fans, which is convenient for businesses to judge.

The third step is to consider the long tail effect of fans' value. At present, live e-commerce is often used as the main means of product explosion, while ignoring its long tail effect. When the live broadcast segment can bring long tail effect to businesses, businesses can obtain more long-term stable income.

In addition, even if the live broadcast of the business is not valuable, it may not lead to the waste of fans' demand.

The refined operation platform will consider long tail operation, such as the live slicing function implemented by mushroom street, and the essence fragments of the whole live broadcast of the anchor can be used as the content introduction of the corresponding products and appear on the user's home page. Therefore, businesses should strive for the anchor to slice their own products, so as to bring them more long-term and stable income.

3、 Write it at the end

2020 is an important turning point for the anchor and platform. After a period of rapid development, the ecology of live e-commerce is gradually improved, and the era of good money driving out bad money is coming.

New trends are still emerging: if the low-cost mode will not continue, users' acceptance of high-priced products will increase, and quality will be more important; the supervision of industry chaos is forcing platform people to carry out standardized management and pay more attention to user experience; the live broadcast profits in remote areas are emerging, which needs to be explored

It can be predicted that in the past two years, the live broadcasting industry will always be in the process of drastic changes. This is also an opportunity for businesses. In this process, the choice of platform is particularly important. The fans value will become the core index to measure the anchor's sales power after the number of fans and the total Gmv.