The "three parts of the world" pattern of live e-commerce has been formed. Direct seeding electricity providers have become an important online channel. From 2020Q4 to 2021Q3, we estimate that the live broadcast of Taobao / jitter reaches 650 billion yuan /4500 yuan; and the tiktok GMV is a very important channel. According to the announcement of Kwai Fu, its direct broadcast turnover amounted to 616 billion 900 million yuan, and the direct broadcast business provider's "three points world" pattern was formed. In 2021 tiktok tiktok was increasingly regarded as the focus of development. Why can the live broadcast of the live sound be favored by the brand?
We tiktok tiktok is a choice of "advocacy" and "profit" under the dual demands of the brand, rather than the traditional recognition of "the traffic dividend is the sound of the Trill". The so-called "flow bonus" only refers to the number of exposures, but to do a good job in business, businesses have to do a good job in transformation, re purchase, price band, etc. Tiktok consumers are not only concerned about prices, but also have a tendency towards marketing content. While the tiktok and the discount rate are relatively controllable, the super head anchors with no bargaining power are relatively controllable. Therefore, brand tiktok chooses to broadcast live on the vibrato (including the master and self broadcast), and it can achieve two purposes of brand building and profit.
Live broadcasting with goods cannot be generalized. The commercial essence of different platforms / live broadcasting forms is different. We divide the live broadcast into three modes: "anchor with goods", "factory broadcast" and "store broadcast". Super head anchor with goods is the "product publicity channel". The huge traffic of Li Jiaqi / Weiya can play a good role in publicity, but the high commission rate and discount rate make it difficult for businesses to make direct profits. "Factory broadcasting" means that non brand businesses ship goods through live broadcasting, and the brand does not participate. Taobao store broadcasting is a kind of "customer service", which provides detailed commodity explanation and issues exclusive coupons. Its function is to "promote transformation" rather than "drainage". Tiktok is "product publicity + profit", attracting consumers through the content that matches the brand style.
Every channel change breeds the rise of new brands & the opportunity to reshuffle the industry pattern. Live e-commerce is one of the most important channel changes since 2016, but its complex mechanism challenges the brand's all-round operation ability. For Yu Da people's broadcasting, the brand shall additionally complete the communication and signing with the anchor, channel control, etc; For self broadcasting, businesses need to set up their own teams. Some domestic brands show obvious advantages in their insight into consumer demand and grasp the direction of product upgrading, especially in their understanding of new channels such as live broadcasting and short video e-commerce. We are optimistic that these excellent domestic brands will stand out through live e-commerce channels.
Investment suggestion: investing in tiktok channels to express outstanding domestic brands is a good direction. The main participants of live e-commerce include platforms, brands, factories and anchors, of which only platforms and brands can be invested. We believe that the bargaining power of the platform for the head anchor is not strong, and the two may continue to play a game in the future; It is a good investment direction to broadcast the tiktok, especially the live broadcast of the live related brands.
Recommended targets: Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Proya Cosmetics Co.Ltd(603605) , Bloomage Biotechnology Corporation Limited(688363) , Shanghai Jahwa United Co.Ltd(600315) , Li Ning, Anta, Bosideng, etc.
Risk tips: intensified industry competition, epidemic situation, over concentration of head anchors, higher return and expense rate than expected, inaccurate third-party data and industrial research views, etc.
