On May 13, Kuaishou E-commerce held the 2022 "Gravity Conference" in Beijing. The theme of this conference was "New Market E-commerce·Trust Creates New Dividends for Growth". At the meeting, Kuaishou E-commerce summarized its phased achievements in the past year and released its latest strategy for 2022.
is consistent with the "new market commerce" proposed by Kuaishou at the end of 2021. Kuaishou e-commerce positions itself as a "new market e-commerce". Xiao Gu, senior vice president of Kuaishou and head of Kuaishou’s e-commerce business, said at the meeting that Xinshijing e-commerce is “an experience-based e-commerce that uses live streaming rooms as super nodes and is driven by trust.”
Based on this positioning, at the consumer level, Kuaishou e-commerce has put forward the value proposition of “real people, real goods, real prices”. At the business strategy level, Kuaishou E-commerce has upgraded to the "Four Major Initiatives" of "promoting trust in e-commerce, focusing on Kuai brand, focusing on branding, and focusing on service providers", and proposed to use more than 23 billion in 2022. The traffic supports more than 500 fast brand benchmarks, allowing 100 million veterans to buy good products with good experience and price ratio.
Ma Hongbin, senior vice president of Kuaishou and head of Kuaishou commercialization, also attended the conference. Ma Hongbin said that Kuaishou is the new market community, Kuaishou e-commerce is the new market business, and commercialization is the supporting system for the new market e-commerce. Based on this positioning, Magnetic Engine takes "people" as its core and provides full-link solutions for e-commerce operations, helping e-commerce operators realize the four major values of connection, expansion, operation, and insight in Kuaishou, and release the potential of product and sales.
is promoting trust e-commerce: with the live broadcast room as the super node, the trust-driven experience-based e-commerce
understands "new market e-commerce", and the live broadcast room, trust and experience are the three key words.
Xiaogu said that in the Kuaishou e-commerce ecosystem, the most important scene for merchants to contact users is the live broadcast room. The live broadcast room is also the most important place for two-way communication and interaction between merchants and fans, so the live broadcast room is a super node. At the same time, the internal driving force of Kuaishou e-commerce live broadcast rooms is the two-way trust between merchants and fans. Trust, as the cornerstone of Kuaishou e-commerce transactions, will help users obtain a better consumption experience.
Based on this positioning, Kuaishou e-commerce proposed the value proposition of "real people, real goods, real prices" in 2022, and upgraded its strategy to focus on trusting e-commerce, focusing on fast brands, focusing on brands, and focusing on services business. Among them, "Building trust in e-commerce" is the underlying logic of Kuaishou e-commerce, "Building fast brands" and "Building brands" are the specific business directions, and "Building service providers" serves all merchants.
Kuaishou’s latest definition of “developing trust in e-commerce” is: by improving the “experience-price ratio” to achieve a leap in consumer experience and satisfaction.
What is the difference between "experience-price ratio" and traditional cost-effectiveness? Xiaogu said that in the traditional sense, performance only refers to the product itself, while experience not only includes the performance of the product itself, but also includes services. Therefore, the "trust e-commerce" advocated by Kuaishou e-commerce is to lower the price of the product on the one hand. , on the other hand, we hope that merchants can provide deeper value-added services, which is to improve the experience, so that consumers can get lower prices and better services, and achieve a better "experience-price ratio".
Breaking it down in detail, the "experience-price ratio" emphasized by Kuaishou e-commerce includes three levels, namely basic governance at the bottom, consumer rights in the middle and experience upgrade at the top. At the basic governance level of
, the "2021 Kuaishou E-commerce Trust Building Annual Report" shows that in 2021, Kuaishou intercepted more than 62.44 million releases of suspected counterfeit and shoddy goods, banned 210,000 illegal anchors and merchants, and the reporting rate of live broadcast goods was year-on-year. It dropped by 8.96%, and about 500,000 applications for opening new stores by users with historical violations were intercepted. On average, 450,000 veterans participated in the platform's e-commerce governance in the live broadcast room every day.
In terms of consumer rights, Kuaishou e-commerce launched "Trust Purchase" in 2021, which includes 10% compensation for fake products, no refunds for refunds, seven-day no-reason returns, return shipping charges (freight insurance), official fidelity, and 180-day warranty for second-hand mobile phones. and a series of rights protections. In 2021, "Trust Purchase" will cover 50 trillion orders. In terms of
experience upgrade, the fast brand "Lairun" is a typical case.Founder Xiaochong brings a better experience to consumers by sharing practical knowledge on skin care and other aspects in the live broadcast room. The 30-day repurchase rate reaches 40%, and the 90-day repurchase rate reaches 76%.
"By promoting trust in e-commerce, consumers have gained trust purchase rights and are more willing to repurchase when they see a good repeat customer index; merchants have achieved high conversion rates for new customers and high repurchase rates for old customers. The platform can provide these 'trusted merchants' "Provide more free traffic tilt and better commercial prices and environment." Xiaogu pointed out that trust in e-commerce will enable win-win situations for all parties.
Go big on Kuai brand: Use 23 billion+ bonus traffic to support more than 500 benchmarks
As the latest strategy proposed by this gravity conference, "Go big on Kuai brand" is an upgrade based on Kuaishou e-commerce's previous "big push on industry belt" Come. Kuai Brand is a new group of merchants that have grown up in the Kuaishou e-commerce ecosystem and value fan service. Based on their own brands and adhering to the business philosophy of "real people, real goods, and real prices", they provide fans with a high-quality experience in the live broadcast room. Price ratio products and services.
Kuaishou particularly emphasized that the Kuaishou brand has the following three core characteristics: first, equal emphasis on the live broadcast room and goods, not only the anchor's own brand, but also the anchor's live broadcast room itself is a brand; second, high "experience-price ratio"; third, strong Private domain, strong repurchase.
In 2022, Kuaishou e-commerce plans to support more than 500 benchmark Kuai brands with more than 23 billion traffic. It is understood that Kuai Brand’s special plan includes traffic bonuses, policy bonuses, exclusive privileges, etc., and comprehensive preferential treatment from cold start, marketing, advertising, gold medal traders, merchant customization labels, etc.
Currently, many Kuaishou brands have achieved rapid growth in Kuaishou e-commerce. In December 2021, anchor Ye Xin, who joined Kuaishou, launched the Kuaishou brand "YeXin". The monthly GMV has increased from the initial 2 million to 10 million+ this year, and the unit price per customer exceeds 700 yuan. In the "Xinshangren Super Day" event on April 30 this year, Ye Xin's fan purchase rate was as high as 76.71%. Every 1,000 exposures of the live broadcast room on the user's attention page can bring in a transaction volume of 3,200 yuan. .
Go big on brands: 61 brands have a GMV of over 100 million in Kuaishou, settling in the private domain to achieve long-term operations
Compared with "Go big on Kuaishou", which focuses on emerging brands emerging from the Kuaishou ecosystem, "Go big on brands" is more For traditional brands. Zhang Yipeng, head of brand operations of Kuaishou e-commerce KA, said that the most important thing for traditional brands in Kuaishou is to develop new consumer groups and accumulate private traffic. Everyone hopes to achieve long-term operations that integrate product and sales.
Since Kuaishou e-commerce proposed the "big brand" strategy in July 2021, the brand has grown rapidly with the support of various favorable policies. Official data shows that in Q4 of 2021 compared with Q1, Kuaishou e-commerce brand self-broadcast GMV increased by more than 8 times. In Q1 of 2022 compared with Q1 of 2021, Kuaishou's self-broadcasting of brands in the four major categories of e-commerce apparel, home appliances and digital appliances, beauty and personal care, and food, tea and wine increased by more than 25 times, 5 times, 8 times and 5 times respectively year-on-year. In 2021, 61 brands have annual GMV exceeding 100 million, and 133 brands have annual GMV exceeding 50 million.
Based on the "STEPS Brand Merchant Management Methodology", Zhang Yipeng proposed a new operating method. Brand merchants can continue to highlight the sales ceiling through large-scale activities through the spiral of "new releases - sales - daily sales - clearance", and then Accumulate fans and improve daily sales.
Taking the business model of a TOP brand in Kuaishou as an example, when the brand has less than 100,000 fans, ROI continues to be optimized and GMV is increased as much as possible; when there are 100,000 to 1 million fans, ROI basically reaches expectations and GMV increases infinitely; when there are 1 million to 5 million fans , ROI steadily increases, and GMV remains stable; after accumulating more than 5 million fans, ROI tends to be stable, achieving long-term operation, and GMV continues to increase through various activities. As the number of brand fans grows, the brand's 14-day repurchase rate will continue to grow.
Build a big service provider: Provide merchants with a standardized and deterministic growth path
In 2022, Kuaishou e-commerce will continue to insist on "big service providers". Li Congshan, head of Kuaishou e-commerce service provider ecology and regional operations, pointed out that the service provider’s mission is to provide merchants with a standardized and deterministic growth and transition path with professional, systematic and refined services.
Previously, Kuaishou E-commerce proposed a five-capacity model for service providers, requiring service providers to have outstanding capabilities in traffic marketing, anchor incubation, service fulfillment, supply chain, and live broadcast operations. After a year of exploration, a new service provider infrastructure with the trading system and traders as the core has been further formed.
Now, Kuaishou e-commerce is opening up multi-dimensional dividends to service providers such as live broadcast and short video cold start, refined operations, industry belt investment cold start, Kuaishou brand incubation and the upcoming 616 promotion, and requires service providers to assist old merchants. Realize the transition and help newly entered fast brands and traditional brands complete the cold start.
Since the "Building Service Providers" strategy was proposed, 16% of Kuaishou e-commerce service providers have improved in all five capabilities. In Q1 2022, the number of service providers' service brands will increase 29 times year-on-year, and the monthly GMV will exceed 500,000 for the first time. The number of merchants increased by 38% year-on-year, and the number of merchants with monthly GMV exceeding 5 million for the first time increased by 51% year-on-year. Li Congshan emphasized that Kuaishou e-commerce still implements a "strict access and strong horse racing" mechanism for service providers.
Finally, Xiaogu emphasized that Kuaishou’s vision has always been to “reconstruct the consumption decisions of 1 billion users” by building trustworthy e-commerce.
