[Blue Technology Observation] Taobao and JD.com have a common enemy in the live broadcast e-commerce industry-Douyin.

[Blue Technology Observation] Taobao Jingdong has a common enemy in the live broadcast e-commerce industry- Douyin .

has announced in October 2020 that it will "cut off the external link " and will no longer support products from third-party sources to enter the live broadcast room shopping cart. Instead, it will vigorously support Douyin's Douyin store tailored for e-commerce business. As for its now popular Dongfang Selection live broadcast room, Douyin has built a self-built e-commerce ecosystem and opened up a closed loop of traffic aggregation-e-commerce monetization business model.

No one can ignore the growth rate of Douyin Live and its influence on merchants. [Blue Technology] communicated with 30 companies in different industries and found that 99% of the companies recognized the Douyin model. Douyin live broadcast can promote sales and increase brand influence that other e-commerce platforms do not have.

If 618 is regarded as an annual "high school entrance examination", then during this year's 618 period, Douyin shined and the "high school entrance examination" received full marks.

According to the "2022 Douyin 618 Good Things Festival" data report released by Douyin e-commerce, from June 1 to 18, Douyin e-commerce live broadcasts lasted a total of 40.45 million hours, and 115.1 billion short videos with shopping carts were played. Second-rate.

Judging from individual performance, New Oriental 's "Oriental Selection" Douyin live broadcast room, with its unique live broadcast mode, Oriental Selection quickly became popular. During the 618 period, the cumulative number of viewers exceeded 300 million, with an average daily viewing rate of more than 10 million. The average daily sales exceeded 50 million for 4 consecutive days, and the cumulative sales exceeded 300 million. It is the biggest dark horse of this Douyin 618 Goods Festival.

The Internet celebrities and rapidly rising merchants who have made their fortune through Douyin are not limited to "Oriental Selection". More similar anchors and merchants are seizing this wave of opportunities on the Douyin track.

Correspondingly, Taobao and JD.com are also constantly deepening their live broadcast business to compete with Douyin. However, due to differences in platform positioning and consumer preferences, Taobao and JD.com are only synonymous with shopping, while Douyin has evolved from a social entertainment platform to live shopping. Its influence on the wide range of people and its driving effect on sales far exceed that of Taobao and JD.com.

So, in the context of increasingly fierce competition in the live broadcast track and the peak of online traffic, why can Douyin buck the trend?

First, Douyin Live Broadcast has more advantages by breaking the boundaries of social attributes.

As we all know, the short video track, which was originally not highly related to e-commerce, has continued to grow and develop during the period of rapid growth of the e-commerce economy, and Douyin has gradually established its position as the leading camp in the short video industry. The high-frequency social interaction functional attributes of

have gradually created sparks between the short video live broadcast platform and the e-commerce platform. For e-commerce platforms such as Taobao and JD.com, a complete supply chain is undoubtedly the core competitive barrier. But for ordinary merchants, if they want to create a hit product, they need to advertise and buy traffic for a long time in order to gain sales. Short video live broadcast has gradually become a more ideal channel for attracting traffic.

For a high-frequency social short video live broadcast platform like Douyin, the huge traffic pool and diversified anchor group have formed good marketing channel attributes, making users more sticky.

Of course, JD.com and Taobao still have great advantages in live streaming e-commerce, but they are different from the Douyin model.

Taking the 618 Live E-commerce Festival as an example, Taobao Live relies on its own platform’s large traffic characteristics to create a live broadcast scenario of “people bringing goods”. JD.com, on the other hand, is betting heavily on external live broadcasts, chasing grass-growing and private traffic trends.

Generally speaking, the strategy of the two this time is very simple and crude. They use live broadcast discounts and promotions as the focus to stimulate GMV, pursue converting traffic into transaction volume, and strive to produce good data during the festival, and ultimately attract consumers and popularize minds among business groups.

It is not difficult to see that their core is marketing, using marketing methods to leverage transactions. However, consumers are gradually less aware of simple and crude subsidized marketing. This also indicates that the live broadcast model of JD.com and Taobao needs to be further strengthened. .

On the other hand, Douyin live broadcast does not have a marketing strategy, but emphasizes the presence and value of users. In some live broadcast rooms, no matter how many people are watching, the anchor will introduce them one by one according to user needs and barrages like a salesperson in a shopping mall. , which invisibly strengthens the interaction between users and brands, and users’ needs are maximized. The recently popular "Oriental Selection" live broadcast room owned by

is the best evidence. Its biggest change in form is to use knowledge to empower new live broadcasts to bring goods. From poetry and songs to the philosophy of life, and then from the philosophy of life to a piece of steak, this live broadcast method will undoubtedly make the audience excited. It also allows users to feel the efforts of Douyin and New Oriental to jointly promote live broadcasts in a new direction.

Second, the target group is more precise and the business conversion ability is stronger.

As the e-commerce environment changes and consumers become increasingly rational, brand marketing will inevitably shift from extensive to refined.

has been particularly affected by the epidemic this year, and is known as the most difficult 618 in history. In order to solve the problem of merchant growth, , a comprehensive digital marketing service platform under the Douyin Group, huge engine gives a solution to the problem. With the theme of "fine increment", integrates huge cloud maps, huge mountains, and giant engines. We have collected investment promotion, massive star maps, product-effective advertising and other products and resources, and launched the "618 Panoramic Marketing Practical Guide" to create an efficient planting-conversion integrated marketing solution for brands.

For example, during the 618 period, deterministic planting was carried out by locking the target group in advance and "counter-selecting" experts through core users. Through scientific marketing through excellent and effective digital methods, thereby improving the delivery efficiency, and through the refined operation of fans, the search GMV increased by 35% month-on-month. The commercial transformation of

with such precise placement is immediate. For example, OPPO chose to launch its new phone during the 618 period, and its star blockbuster was put on Douyin TopView, helping the new phone gain great exposure at the launch. On June 1, Douyin sales increased by 822% year-on-year, and the total site sales in one hour exceeded last year. All day.

618 Douyin's good performance is partly due to the market's choice. On the other hand, it plays a stimulating role by proactively targeting precise groups of people, improving its business conversion lead, and providing merchants with complete solutions.

Third, globalization reaches the middle game, and Douyin live broadcasts are by no means limited to China.

If Douyin live broadcast can blossom in the domestic market by virtue of its own strategic differentiation, then Douyin’s accelerated pace of globalization is another weapon.

According to the latest data from App Annie, British and American users spend more time on TikTok than YouTube. Among them, American viewers watch TikTok for more than 24 hours per month on average, while YouTube watches 22 hours and 40 minutes. Another data shows that TikTok has been downloaded more than 3 billion times globally, and TikTok has more than 1 billion monthly active users. It has become the well-deserved "number one download in the world", which means that TikTok's globalization has reached the middle game.

Not only that, TikTok has also successfully penetrated into most important markets, such as Russia, Brazil , Mexico , Italy, the United Kingdom and other European countries, as well as Southeast Asia except India, which also performed particularly well.

TikTok has only been in the market for 4 years and has already achieved such remarkable results. It can be said that this aspect is unmatched by domestic e-commerce platforms such as JD.com and Taobao.

Of course, TikTok’s pace goes far beyond this. Successfully transplanting good business models such as live streaming e-commerce overseas is also the core of its strategy.

At present, there are more and more giants overseas who also have user traffic advantages and are trying to live-stream e-commerce. For example, Instagram launched Reel’s new shopping function, YouTube launched the “shopping bag” function, WhatsApp added the “shopping cart” function, etc.

From this, we can predict that Douyin has accumulated experience in related live broadcast e-commerce in China, and TikTok can almost continue the same product logic to build a content and user-operated e-commerce live broadcast platform globally.

This step is the basic condition for live e-commerce.