According to the people’s daily, the people’s daily Kwai official account will jointly launch the Rural Revitalization communication plan to help farmers live broadcast on April 28 with Yuanwang network, which is one of the three top-level media in China (people’s daily, Xinhua news agency and China Central Radio and television, of which the people’s daily is a central organ newspaper directly under the central government). Over the past two years, the regulatory policies on live e-commerce have been continuously strengthened. From the code of conduct issued by the Advertising Association in June 2020, to the guidance issued by the State Administration of market supervision in November 2020, to the management measures issued by seven departments in April 2021, and then to the opinions on paying taxes according to law issued by the State Administration of Taxation in March 2022, the market has always been worried about the development speed and potential of the industry. However, the people’s daily official number’s live broadcast first show with goods, we think it is worthy of market attention and attention, which means the official affirmation and value recognition of live e-commerce.
The Rural Revitalization communication plan launched this time is to implement the major national decisions and arrangements on Rural Revitalization. In the No. 1 central document of 2022, it was first mentioned that “live broadcasting of agricultural and sideline products brings goods”, which affirmed the role of this emerging channel in the development of modern agriculture. The people’s daily is the main organizer, and Yuanwang network is responsible for providing the overall operation of live broadcasting. The two sides will jointly create six special live broadcasting of Revitalizing Villages nationwide throughout the year, and use the large flow of live broadcasting to Shenzhen Agricultural Products Group Co.Ltd(000061) open sales and improve sales for local characteristics, so as to stimulate the local economy. On April 28, it was the first time to bring goods under the official account of the people’s daily Kwai, and Yuanwang’s anchor young master Yu (the head anchor of the Kwai platform) assisted at the scene.
In the follow-up, the goods will be delivered under the official Tiktok number of the people’s daily, which has a wider radiation area.
People’s Daily has a large number of official fans and a high proportion of young users, which helps to promote agricultural and sideline products to cities and promote farmers to make more use of live broadcasting tools to create wealth. As of April 26, the people’s daily Kwai had 60million fans and 4.3 billion likes, almost all of whom were users under the age of 40; People’s Daily has 150million fans of Tiktok, and has won 8.9 billion likes. Users under the age of 40 account for about 90%. With such a high-level and large flow of official numbers carrying goods, Yuanwang network is responsible for the overall operation, with the help of Mr. Yu. We think this is a high recognition of Yuanwang network’s investment selection, anchor positive energy, stable field control ability and operation standardization (especially after the exposure of multiple anchor and star tax problems, the selection of official media partners is particularly cautious).
In the short term, the impact of the epidemic on live e-commerce is mainly reflected in the performance bottleneck caused by the suspension of local logistics express delivery. We believe that it will also be the first to recover after the epidemic. In the current dilemma, head service agencies that span the dual platforms of shaking up, have control over stars or anchors, and have the ability to help brands achieve their sales goals are scarce Saturday Co.Ltd(002291) previously released the performance forecast, 1q22 Gmv increased by 60% year-on-year, and the net profit attributable to the parent company was 80-120 million, including 19 million equity incentive expenses, and there was still a loss on women’s shoes, which means that the profitability of the subsidiary looking forward to the network is better than the overall performance, which reflects the resilience under the influence of the epidemic in March. It is recommended that investors pay active attention to it.
Risk warning. The epidemic repeatedly affects the receipt and delivery of logistics Express; Risk of head anchor fluctuation; Careless selection of investment promotion products leads to user complaints.
