36氪 "WISE2021 Leaders Conference" was held in Shenzhen on May 12. Dozens of industry experts, representatives of star companies, and analysts from various fields conducted in-depth discussions on the three hot topics of new technology, new consumption, and new medical care. Zhang Yipeng, general manager of Kuaishou E-commerce User Operation Center, was invited to attend this meeting and gave a speech on "The Trust Economy of Kuaishou E-commerce - A Trillion New Market for "Kuaishou Brands"".
Zhang Yipeng believes that with 870 million users, short video + live broadcast is the infrastructure of the Internet, and the average time per person has exceeded instant messaging. It will become the entrance to the mobile Internet in the next decade. When short video + live broadcast integrates with the economy and industry, the most important thing is to solve the problem of trust. In the live broadcast era, the combination of video, algorithm and economy can reshape the consumption decisions of 1 billion people. This potential energy will give birth to a trillion-level new market and incubate many new fast brands.
Zhang Yipeng, General Manager of Kuaishou E-commerce User Operations Center
The following is the transcript of Zhang Yipeng’s speech
Zhang Yipeng: Hello, family! Hello, distinguished guests! I am Zhang Yipeng from Kuaishou e-commerce. Today I am very happy to have the opportunity to come from Beijing to share with you our today's theme, which is called the trust economy of Kuaishou e-commerce - the trillion-dollar new market of "Kuai Brands".
So today my sharing will be divided into two parts:
The first part will introduce to you our understanding of the market and our thoughts on the future of Kuaishou e-commerce, why we have to fall into "trust", and why we think Kuaishou e-commerce Do you trust e-commerce? The second part of
will introduce to you how to participate in this trillion-dollar market for new brands? This is a topic for me today.
First, let’s look at the market. From a market perspective, in fact, from the perspective of the scale of the first picture, I actually want to express one word. Everyone always thinks that short video or live broadcast is an industry, but we think short video and live broadcast are one. Internet infrastructure. Why are we talking about infrastructure today? That is to say, for the first time, our user scale today is already 870 million, which covers almost the entire network. Secondly, today in the short video and live broadcast industry, the average time spent per user has exceeded instant messaging, and it has become the number one industry in the entire mobile Internet. So in fact, it has occupied the first place in the time spent by all mainstream people. It will become the entrance to the mobile Internet in the next ten years and the infrastructure of the mobile Internet. It should be like the previous generation of e-commerce, starting from offline to online. Our logic is that in the next ten years, as a new infrastructure, we are considering the transformation of short videos and the empowerment of short videos or live broadcasts, which is very important to the market. view.
The second point is that based on such a mobile Internet foundation, our incremental contribution to the future of the market is our prediction of the size of the entire live streaming e-commerce market, which is that there will be a 6 trillion market. And the more important point is that the 6 trillion market is actually an incremental market, not a stock market. Why do we have such confidence to speak out about this knowledge? In fact, everyone found that the most important categories in our live broadcast e-commerce are actually non-standard categories represented by clothing, jewelry, and beauty.
What are non-standard categories? In fact, it can be said in one sentence: at first glance, you don’t know the price of this product. Just like when we put a mobile phone, everyone knows how much a mobile phone costs, but let me ask you how much a pound of tea costs? How much does a bottle of wine cost? How much does a piece of clothing cost? In fact, the biggest feature of the non-standard industry is that the product is the content. In industries where you can't see the value of the goods at a glance, traditional e-commerce in the past actually had a very bad life. But today in such a content community, we support and price this industry through personality, content, and private domains, thereby stimulating the growth of this industry.
So this 6 trillion can be understood as an incremental market dominated by non-standard industries.
The third point is the development of user habits. I won’t give you the numbers. You can actually see that in the short video industry today, 60% of people consume more than one year. Thousands of dollars. This means that it provides a very good foundation for more brands to grow in this soil in the future.
The second point of view is that those who win the private domain win the world. Take a look at the picture on the left, which represents the installed capacity or user scale of the entire China Mobile Internet population. From 2019 to now, there has been basically no increase, with a bottom line of 1.14 billion to 1.16 billion. This means that in fact, our online business logic today should change from an extensional growth logic in the past to an internal one. The logic of efficiency, or from the logic of installed capacity and user volume to the logic of user efficiency and user duration. So this is the underlying reason why everyone sees such a booming development in content e-commerce and live streaming e-commerce.
Of course, in fact, today the entire online market has entered the so-called stock market, and the biggest challenge it faces is joint gaming. Therefore, on traditional platforms, people will find more and more that it is essentially a bidding logic. The bidding logic is that if I go up and you go down, the operating profits of the leading brands will be lower and lower, and the operating profits of small and medium-sized brands will be lower and lower. There is no way to grow the problem. So we also made a comparison. You can take a look. Compared with some traditional market-leading e-commerce platforms, Kuaishou’s e-commerce has a significant lead in terms of user size and user duration.
So actually we have recently put forward a new concept, that is, how do we view this business? The logic of our business is that we are going to enter the live broadcast e-commerce 2.0 today. In fact, the first point we want to talk about is that our 2.0 today is not to compare with traditional e-commerce. What we are discussing today is to compare with our live broadcast in the same industry. In terms of e-commerce, what is the difference between Kuaishou e-commerce?
Our point of view is that you can look at the picture on the left. If you are paying attention to other live broadcast e-commerce platforms, you will find that in other live broadcast e-commerce platforms, although it seems to be in a live broadcast room, it is essentially The operational logic is actually the logic of traffic operation. It is still the traditional logic of using the live broadcast room as a shelf, stacking products in it, grouping traffic into it, and improving the hit rate.
But the reason why we think this logic will not last long is that the first one I mentioned just now is that there is no fresh traffic in the public domain. Sooner or later, they will also face a public domain, and all the traffic costs just mentioned The problem of rising prices and the poor production environment of merchants.
The second point is that when we look at changes in business logic over a ten-year period, we must consider changes in market supply and demand. To give you an example, there is a very big fundamental change in the retail market today, called a change in the relationship between supply and demand. In the past 20 years, the problem we have been solving is called how can we increase supply online to meet everyone's needs to the greatest extent, because in the past the problem we faced was called supply exceeding demand, and what we want to solve is the problem of efficiency. , and shelves are the most efficient solution.
But today is actually an era where materials are extremely abundant and everyone can buy everything online. At this time, what we have to solve is not just an efficiency problem. The efficiency problem can only be solved by one user. I know what I want to buy. The thing about me buying something, this is a tool attribute, it is a primitive, we can understand it as a logic that ends the demand. And what we want to tell you today is that what you don’t know is your yearning for a better life. You still have to discover what kind of consumption pleasure you need to get from your yearning for a better life. There are still some things you don’t know. The logic of who will recommend good things to you, who will help you discover them, and who will help you buy them.
Let me give you a specific experience. Just like 5 years ago or 10 years ago, just like today when I came to Shenzhen from Beijing, maybe my colleagues would ask me to bring some Shenzhen specialties back to Beijing. This is easy to understand.Today, few people will ask someone to bring specialties, right? Not to mention Shenzhen's specialties, maybe county-level or city-level specialties, we can easily find them online. In a market where materials are extremely abundant and supply exceeds demand, we don't need to bring specialties. If you know you If you want this specialty, just go buy it.
So today we believe that the next key business logic in live streaming e-commerce in the future is called our 6 trillion increment, which is the logic to help the majority of users obtain their incremental needs. This is why we believe that traditional live streaming e-commerce companies are still using the logic of commodities + public domain to conduct transactions. What we are doing is an upgrade to content and private domains, which means that we are going from terminating demand to creating demand, from shelves to content, from transactions to relationships. This is a very essential difference.
So in fact, there is a very important point in Kuaishou's business logic. If you look at the traffic, you will find that in Kuaishou you will have a very stable private domain traffic. This traffic will not be paid. This is the basis for your sustainable business.
The second thing you need to pay attention to is your content and your conversion based on the unit duration of the content. The logic behind it is whether your content is interesting enough? Is your persona realistic enough? Can you help your fans find good things? So this is a content logic and repurchase logic. So this is our thinking about the entire market, and it is the essential difference between Kuaishou e-commerce and other live broadcast e-commerce companies.
I will also give you two examples to give you a feel. For example, when we see some traditional platforms doing live broadcasts, we actually put the live broadcast room on the product details page. Essentially, when a person enters the live broadcast room, he goes to the details page and explains that he wants to buy this thing. They are solving the problem. The problem is still the shelf problem, that is, a user has reached the details page, I buy or sell this thing, and I go to the live broadcast room to buy it. So in fact, the content of the goods sold here has nothing to do with the personality, and the users have nothing to do with the anchor. The live broadcast room is a shelf.
As for Kuaishou, I will show you a video so that you can experience it. (Play video)
(See PPT) You see, on our platform, the biggest difference is that our anchors are launching today. It is not the traditional logic of consuming existing platform traffic, but the logic of generating traffic for the platform. . Sister Mi is one of our anchors who rings the bell today. You can see that her video is ordinary. She is a very life-like scene without any rendering or script. Even her husband’s voice-over outside is very The truth, we all know that truth is powerful.
So I won’t read the data to you, you can read it. I want to highlight a statistic. For example, when Sister Shijiazhuang Rui was first broadcast, her average viewing time per person was 24 minutes. What is this concept? On average, a live broadcast room has one car and one product, which lasts about 5-7 minutes. During this time, a user can fully understand the product and purchase the product. Why does a user have to stay here for an average of 24 minutes to watch her live broadcast? In essence, it is not for products, but for people. This is the biggest difference between Kuaishou e-commerce. That is, our logic is based on the incremental demand generated by users who come for people, trust in people, and love for people. Traditional live broadcast e-commerce considers goods-based services, while people-based services are driven by social logic, which represents higher frequency, more humaneness, and higher growth potential.
From transactions to relationships, you can take a look at our competition with the industry. We look at the ratio of likes to the comments of the unit, and the distribution of likes and reviews. The lower the number, the better. What we can achieve is It takes about 8 likes to get an interaction, while the average in the industry is 50 likes to get an interaction. It essentially illustrates a problem. When a user consumes on other short video platforms, he does not participate. He only watches. The logic of what he only watches is that he treats this place as a media and leaves as soon as he uses it. It is very satisfying, but after using it Just leave, it has nothing to do with me.But when he is in Kuaishou, he will participate, interact and evaluate deeply, because he thinks this is a community. Therefore, it will also bring about why we have a repurchase rate as high as 65%, and why we have as high as 80% of business coming from repurchases from merchants.
So why do all our understandings of the market fall into the matter of "trust"? One point we want to emphasize on the left is that today’s algorithms are actually very powerful. Kuaishou is also a new short video platform driven by algorithms. However, the algorithm and cannot override human nature in our values. That is, people will always be the same. We are still social animals. Everyone needs emotions and social interaction. So in this process, we will see that this is a very important first point.
The second point is that everyone here should be in all walks of life. We have a lot of practice in business scenarios. You will find that when our entertainment community of Kuaishou short videos slowly cuts into e-commerce, When you switch to local life and trading scenarios, what are the biggest obstacles to trading? What is the greatest foundation of business society? It's trust. If I step down from the stage to cooperate with any of the guests here today, when everyone cooperates for the first time, I believe that the strategy chosen by most people must be to invest less and test it first. If the test effect is good, we will increase the investment. Invest. This is normal business logic.
So we believe that today when we enter the integration of short video with economy and industry, the most important thing is to solve the problem of trust. Trust is the foundation of business, and the solution to the problem of trust can be solved The problem of transaction costs in the entire market mechanism can produce very large productivity.
So you can see that our users have highly interactive relationships on our platform, as well as our anchors. When we are not broadcasting, we will also send leave requests to users. Our high-quality anchor Xu Xiaomi would say, I never want users to treat me as a businessman, I hope users will treat me as a friend. My friend has missed an appointment and has given up. I want to post a video to tell everyone that I am taking a day off and will not broadcast it today. It is a break away from the cold, it is a human relationship in it, which is a very interesting thing.
Such trust brings potential productivity to transactions. When I talk about productivity, you may think it is abstract. You can look at some cases. (See PPT) Things that have grown up in our ecosystem are like “Second Brother talks about cars”, “Wang Beile talks about real estate”, and “Lawyer Zhao”. Everyone sees that the bids for cars, houses, and lawsuits are all very high. Every bid is special and non-standard. In an industry that relies heavily on trust, we have given birth to every person, every anchor and his team. Such a production scale can defeat one institution, or even the sum of all institutions in the region, so this is the power of trust.
The second thing is, why do we talk about such a big term as trust economy? It’s because we believe that as we become a platform that attracts national attention today and we become a platform with 770 million monthly active users, we are actually changing everyone’s life and we have the opportunity to reconstruct it. The logic of decision-making by a billion people. In fact, everyone has discovered that as the entire era changes, we have actually listed several changes in the entire retail era. Each change in the era will change the thinking of a generation's consumption decision-making, and from the perspective of changing the thinking of a generation's consumption decision-making. In other words, great companies will be born.
From the beginning of the small commodity era, everyone has paid attention to the small shop at their own doorstep. This small shop does not dare to cheat you. Once it cheats your neighbors, your neighbors will know it and they will not be able to sell goods. In the product era, everyone is paying attention to CCTV’s advertising king. Whoever has more advertisements will be trusted. In an era like Wal-Mart, everyone knows that 30% of Wal-Mart's business comes from its own OEM brand, but everyone believes in it and buys it because everyone believes in this channel. In the era of Taobao , everyone believes in Alipay .But do we definitely need a guaranteed product today? Just imagine, do you know how big the trading ecosystem is on WeChat? There are trillions to tens of trillions. There are no guaranteed products on WeChat, and everyone is still consuming. So in fact, transactions based on social relationships and trust relationships between people are already very mature. So we believe that today in the live broadcast era, the combination of our video, algorithms and economy can reshape the consumption decisions of 1 billion people.
Let’s go back to the logic of brands today. There should be many brands here. Our brand has three driving factors:
1, product power;
2, channel power;
3, marketing power.
Therefore, every generation of successful products comes from better serving the needs of young consumers and young intergenerational users, using new channels to reach them, and using new communication methods to satisfy them. Today, Kuaishou is such a new channel and a new position to communicate with new users. Like Taobao, it will definitely give birth to countless new "kuai" brands in the next ten years. This is our view of the market. .
will give you an example. We have had a lot of “fast” brands born in the past year. For example, "He She Loves" and "He She Loves" have been on Kuaishou for 6 months and have achieved a monthly GMV of 36 million. At that time, they were only working on two short video platforms. They concluded that they did three things right:
The first thing, "He She Loves" has its own self-operated factory in the local area. It has a thousand square meters of factory building. It has very strong offline production capabilities and its goods are its own.
The second thing is that he customized a production line exclusively for Kuaishou users for the Kuaishou channel. In this way, he separated online and offline and better met online needs.
The third thing is that his cooperation with the anchors adopts the model of joint broadcast with the anchors. He even invites anchors like "Bai Xiaobai" to his live broadcast room. He will regard these anchors as his own A channel to accumulate users and expand this channel. The final result of
is what we just saw. For a brand like "He She Loves", 98% of its business on the two mainstream platforms comes from Kuaishou. The same is true for Heweifang's snail noodle, so under today's trust economy, many brands can be born.
Under such a brand, how is Kuaishou e-commerce doing? I won’t go into details, you should have seen it in various scenarios. Including us in the past two years, we have actually grown four thousand times.
Let’s talk about the thinking about the endgame. Regarding the thinking about the endgame, we believe that the trust mechanism can reconstruct our transactions. What did we actually talk about just now? What is the logic of trust? That is, traditional e-commerce is based on the logic of SHOPPINGMALL. I build a shopping mall and all the people come here to shop because they believe that such a large shopping mall will not cheat people and is guaranteed by the consumer protection system. This is the first The logic of modern e-commerce. Why do we think we can reconstruct this trust mechanism today? It’s because in today’s mobile Internet era, we can upgrade the trust relationship between people and platforms to the relationship between people and sellers through our own efforts.
Let me give you another example. We recently had a story that really happened on a platform. There was a user named Fat Hu. This person liked to play with jade very much. He collected a lot of jade. Later, his father got lung cancer. He He needs to sell his jade to treat his father's illness. He found a lot of offline platforms, and many of them were unreliable and got scammed. They had a small circle, so everyone recommended him to Kuaishou to find an anchor called "Raw Stone and Jade Mine Week" . The anchor established a relationship with the two of them. The anchor agreed to him without saying a word, and agreed that the two of us would engage in a joint venture. You would explain the situation, and you would recycle your jade to other treasures in my live broadcast room. Friend, sell your jade.At the same time, in fact, such a mechanism usually requires scheduling. However, because of such a special situation, our anchor gave him a priority and gave him the first priority. He also reduced his handling fee. In the end, we were three feet away. Lian Mai, this netizen spent 600,000 yuan in this live broadcast room to help his father treat his illness. He even did the second live broadcast in the ward where his father was hospitalized.
What I think is particularly touching is that after his father appeared in the live broadcast room, we saw a lot of very real comments. What would netizens say? Netizens will say in the live broadcast room that everyone should buy it quickly and don’t return it. Some netizens will ask you to confirm receipt of the goods quickly so that the user can quickly receive the money to save his father. There are many people who wish this father a speedy health. This human touch cannot be brought by shopping malls. This is because we believe that business will eventually return to social value, and today in our live broadcast room and in the short video ecosystem, we can make people return to people, and people return to people. relationship, thus generating both commercial value and social value. We think the matter of
is more commercial. We will transform the shopping mall, which can only solve the problem of people buying new products, into today’s Kuaishou e-commerce, where we can buy and sell multiple times, thereby restructuring our This is our thinking about the final outcome of China’s entire trading ecology. I won’t go into details about the
reverse manufacturing supply chain. We are on C2M. In fact, our clothing merchants have achieved new products every day. This is already a very, very big breakthrough. This comes from our certainty on the demand side.
The third thing is called equal rights between urban and rural areas. In the past, the consumption choices faced by urban and rural areas were very different. Urban and rural areas faced poor information, poor channels, and poor services, which will affect our users in towns and sinking markets. There is no way to enjoy the same good services as in the city. Today, users in villages and towns and in lower-tier markets also have a higher perspective in the live broadcast room. They are also valued customers, appreciating physical products, shouting for and communicating with their favorite anchors. Whether it is good or has good reviews, we believe that this matter has great social significance, because we have allowed more ordinary people to benefit from the dividends of digitalization and improved the lives of more people.
So in fact, going back to our strategy for this year, we are to accumulate hundreds of billions of fans and create 100 ecological partners with 1 billion MGV through the mentality of extreme trust. Why do we talk about 1 billion? It is believed that 1 billion is the key threshold for a brand to be considered a brand. We have published this page
before, so I won’t go into details. Let me report to you, after we released our bonus plan, have we implemented it? Let me show you two cases.
The first case is Bestore . After Bestore settled in Kuaishou, it accumulated 590,000 fans in 10 days, with more than 9 million viewers in a single game, and a GMV of tens of millions in a single game.
They did three things right:
The first thing is the strong product strength of Bestore itself. After all, it is the leading player in food.
The second thing they found is the secret to doing business in Kuaishou, which is to personalize the brand. Today they need to turn the brand's personality into a living personality, a living personality, and a living anchor, so that fans can know about BESTORE. What kind of person is it that can accumulate its traffic and fans and become its private fans? The third thing about
is this traffic cycle. Through the combination of official free traffic and commercial traffic in our Xiaodiantong, Fan Toutiao, etc., we have achieved a very strong ability to instantly explode, and through our very strong community Gene has helped it accumulate a lot of fans.
So in this matter, we will release the 2021 JBP plan this year to provide more brands with similar star-making plans, commercial support, resource packages, service fee reductions, etc. Series plans help brands grow.
So in terms of implementation, we also organized the entire 616 shopping festival to help more brands and anchors grow. You can take more photos later and take this back to study. We will divide it into three major waves:
. The first wave is from 5.20-5.31. It is mainly to select more excellent personality anchors and warm up the entire promotion. . In the second wave of
, we will launch our small store trust card. We will launch our ultimate trust mentality based on the entire trust card product and a major event such as our first Kuaishou e-commerce Taiwan Network Ceremony.
The third wave is an explosion. Our big promotion will last for one month and there will be several highlights:
1. What merchants worry about most is traffic, so we provide you with three major traffic packages, including those for new customers. Opportunity traffic packages, venue traffic packages, and commercial traffic packages.
2. Since we believe that we want to create an economy of trust, we have launched the store trust card. We will launch an industry-leading new gameplay called "refund without return". In certain categories, users should be aware of this. When he is not satisfied with the product, he can choose not to return it, but only to get a refund. At the same time, we will also launch policies such as "return shipping to pay" and "fake goods will be compensated for ten". We will bind these policies to store trust cards and send them to the majority of ordinary users.
So in a word, the platform and merchants will invest together to ensure that users’ experience in Kuaishou stores exceeds their expectations. At the same time, we will also have evening parties and merchant-operated tools for empowerment. I would also like to mention a little bit about the
party. During the 616 period, we will join forces with Jiangsu Satellite TV and Zhejiang Satellite TV to create a grand e-commerce ceremony with billions of exposure. There will be a lot of first-line stars. You can look forward to it. . In the meantime, we will also link up the main live broadcast room and sub-live broadcast rooms, linking celebrities from the front to the back, from the main stage to the live broadcast room, and we will send 1 billion in gifts to create a Kuaishou e-commerce worthy of everyone. A core of trust in the mind. I won’t talk about this page of
. You can take pictures by yourself. We have now entered the entire 616 registration period. You can register for our big promotion through this QR code and all the methods mentioned above. On the last page of
, I will give you a final summary. I have said so much, but I want to say three sentences:
The first sentence is that our thinking about the endgame of today’s Kuaishou e-commerce is, short video + algorithm + economy, we will reconstruct the consumption decisions of 1 billion people in the future. This matter can create an incremental market of 6 trillion yuan. This is a very huge business. Today, considering that brands need new channels and need to communicate with young people, the combination of the two will definitely give birth to a new product. Very large soil for "fast" brands.
The second sentence, when everyone talks about Kuaishou e-commerce today, if you can sum it up in one word, it is "ultimate trust", because we believe that in the next 10 years, all dividends will come from the private domain, and all dividends will come from the private domain. It comes from the content and the private domain, as well as the relationship between us as a whole and the anchor. Whether in the private domain or in transactions, the underlying foundation of these relationships is trust, so trust is the most important aspect of our minds.
The third sentence, if we can make a footnote to this trust, today in our trust ecosystem, there have been born such brands as "He She Love" and "Heweifang" that were born in Kuaishou and aim to reach 1 billion GMV. The impact of new brands is also helping traditional brands such as Bestore and Hongdou achieve explosive growth. Therefore, our goal this year is to help the market achieve 100 ecological partners with annual sales of more than 1 billion, including new brands that have grown up on the Kuaishou platform. In this case, they will be worthy of the name "Kuai" brand.
The above is what I want to share with you.
