Lowering the brand entry threshold, is live streaming the way to realize Xiaohongshu?

On July 22, Xiaohongshu released a series of brand support policies, including zero entry threshold, tens of billions of traffic support, and KOC connection plan (KOC: key opinion consumers, corresponding to KOL).

Among them, Xiaohongshu will provide tens of billions of traffic for targeted support for the brand certification fee for registered and certified enterprise accounts before July 31, centered on the support and introduction of newly settled enterprise accounts, high-quality goods-carrying anchors, new varieties of grass and merchant live broadcasts.

In November last year, Xiaohongshu officially announced its entry into e-commerce live broadcast and launched an interactive live broadcast platform. Compared with other platforms, Xiaohongshu’s entry into the game is not too early, but in the first half of this year, under the epidemic situation, the live streaming of goods was pushed to the peak and became a major outlet.

Nowadays, Xiaohongshu focuses on the brand and provides support from various aspects such as capital, traffic, and delivery anchors. Can it solve the long-standing business realization problem?

Speed up commercialization

After six years of growth, from cross-border e-commerce, grass-growing communities, to today’s lifestyle platforms, Xiaohongshu is still unique in the Chinese Internet world, but in terms of commercialization, Xiaohongshu has always attracted people from all walks of life. The attention of the party.

A long time ago, Xiaohongshu has been weakening its e-commerce label, and is unwilling to define itself as "cross-border e-commerce", but the content community is also facing a decline in content quality, false notes, black production, and difficulties in monetization. And many other problems. "Rectification" is one of the key words of Xiaohongshu in 2019. Last year, Xiaohongshu processed a total of 4,435,700 cheating notes, blocked 21.28 million gang-related accounts, and intercepted 1,423 million gang-related cheatings.

While cracking down on illegal online production, the commercialization of Xiaohongshu is also accelerating. In November last year, Xiaohongshu launched a brand cooperation platform, a good thing recommendation platform and an interactive live broadcast platform in the name of helping creators. This also marks the official entry of Xiaohongshu into the webcast to bring the goods.

This year, Xiaohongshu has become more direct. Almost every support policy released by Xiaohongshu today focuses on the brand.

This support plan mainly consists of three parts: The core of the first policy is to reduce free use. From now until July 31, brands entering Xiaohongshu and opening corporate accounts are exempt from entry certification fees. On the e-commerce side, the basic commission for brands entering the Xiaohongshu Mall is reduced to 5%, and the commission for some categories including food, milk powder supplements, digital appliances, health products, etc., is reduced to 3%, and products sold through live broadcast are refunded2 %commission.

The core of the second support is to provide 10 billion traffic support for brands, anchors, live broadcast merchants, etc., including 1 billion traffic to support 10,000 new business accounts, 2 billion traffic to support 1,000 anchors with goods, and 2.5 billion traffic to increase 100 New varieties of grass efficiency and 4.5 billion traffic have helped 200 high-quality live broadcast merchants.

The third support focuses on the connection between the brand and KOC. Through the Million New Product Trial Program, it helps brand new products solicit user trials in Xiaohongshu; in addition, Xiaohongshu will also regularly hold category offline salons to allow brands and anchors to communicate face-to-face .

Internet analyst Ding Daoshi said in an interview with a reporter from International Finance News that in the past, Xiaohongshu's attitude towards commercialization was somewhat ambiguous in order to improve the socialization of content. In this process, Xiaohongshu officials may not have passed Xiaohong. How much money does the book make, but third-party marketing agencies, self-media, and KOLs all make money through Xiaohongshu. This year, Xiaohongshu has increased its commercialization layout, supporting merchants through resources and traffic, attracting merchants to settle in and cooperate with merchants, and then earning some considerable income through e-commerce commissions and service fees.

Ten billion traffic focuses on live streaming

In March of this year, the China Consumers Association released the "Online Survey Report on Consumer Satisfaction with Live E-commerce Shopping", in which the content on the distribution of consumer age and generation shows that the post-80s and post-90s are the main shopping force, of which the post-90s account for 49.7%, the post-80s accounted for 32.9%, and the post-00 generation is 3% more than the post-70s group.

According to Xiaohongshu recently revealed that his monthly life exceeds 100 million, 70% of its users are born in the 90s, and 8 billion notes are exposed in a single day. From this point of view, it seems logical for Xiaohongshu to develop its live streaming delivery business, which is also a big advantage of Xiaohongshu.

However, it is not enough to have a large potential consumer group. When major platforms are paying attention to and competing for delivery anchors, Xiaohongshu is temporarily not visible. According to the statistics of the fruit set, the "June Live E-commerce Anchor GMW Monthly TOP50" list jointly released by Bianniushi, WeMedia, etc., among the anchors on each platform, 28 Taobao anchors, 19 Kuaishou anchors, and Douyin There are only 3 anchors.

It is worth noting that Wei Ya, Simba and Li Jiaqi, who have been on fire since last year, dominate the top three. Among them, Wei Ya and Li Jiaqi are from the Tao family, and Simba is from the fast hand, and only three of them have a GMV of 1 billion. The June GMV of the four anchors exceeded 400 million yuan, which is more than 1 billion yuan behind the third Li Jiaqi.

Although the current live broadcast industry is focusing on training waist anchors, from the GMV data, the influence of the head anchors is still difficult to shake in a short time.

This is what Xiaohongshu will do next. Among the tens of billions of traffic support by Xiaohongshu, 2 billion will be used to support 1,000 anchors with goods. Compared with internal support that takes time, attracting celebrities or celebrities with their own traffic from the outside can open the market more quickly. Similar to the cooperation between Douyin and Luo Yonghao, Xiaohongshu has recruited Yang Tianzhen, CEO of Yixin Entertainment, who is well-known and topical among young women. Recently, Yang Tianzhen revealed in the live broadcast of Xiaohongshu that she will officially start her live delivery business in Xiaohongshu on July 25, and will give out a Hermès bag during the live broadcast.

Compared with traffic support, some brands and businesses seem to pay more attention to the stability of the infrastructure when choosing live broadcasts to bring goods. A person in charge of an MCN agency who has been cooperating with the brand for a long time told reporters that after a summary of live broadcast experience on multiple platforms, some platforms have a lot of traffic, but because the platform has not been involved in e-commerce for a long time, many infrastructures such as payment , Logistics, and some live broadcast tools are not perfect, which affects the user experience, and does not bring much help to the brand's subsequent analysis of consumer purchase intentions and marketing decisions.

In this regard, some insiders of Xiaohongshu told the reporter of "International Finance" that at present, Xiaohongshu still has a lot of things to do in this regard, including transaction links and data connection, etc., which are all in the schedule. The carrying capacity of the facility can satisfy the entry of more merchants, and it has not yet reached the saturation state, so merchants do not need to worry too much about this.

In the view of Ding Daoshi, the e-commerce gene is a false proposition. The gameplay and mode of e-commerce have been opened. There are no secrets. Some short video platforms do not have the e-commerce gene and are late to enter the game, but in terms of live broadcast delivery of goods Still doing well.

Ding Taoist believes that the live delivery model has been certified, and the opportunity is everyone’s, not a certain platform. As long as Xiaohongshu is willing to invest energy and traffic, although it may not be as big as Taobao live broadcast, there are opportunities. of.

Source: International Finance News