A pet food distributor from Taobao said that the promotion period is often the best window for new products to “grow grass” for consumers and make explosive products. Last year they used 20%of their sales to promote two new pet wet food products during the”618″ and”Double 11″ period, which doubled the store’s annual sales. This year they increased their distribution,”but we put half of it on Douyin, after all, they represent an increase in e-commerce.”

The staff of a certain head V of Douyin revealed to the author that Taoism and Jingdong are lengthening the battle line. There are also intentions to keep more distance from competitors.”Since May, many Douyin anchors’ traffic before and after the ‘618’ has been bought by Taoist and JD.com in advance, and our revenue has declined compared to usual.”

Vibrato broke through. :Layout of the supply chain

The most important variable of this year’s”618″ is undoubtedly the high-profile entry of Douyin, which in turn has violently disturbed the entire e-commerce ecosystem.

According to the information disclosed by the China Merchants Association of Douyin”618″, during the”618″ period, in addition to the pre-sale deposit and the gameplay of the”Interactive City” on the consumer side, Douyin gave significant discounts to brand owners. policy. During the”618″ period, all TikTok merchants will give 15%-30%subsidies, as well as free shipping insurance and so on. From June 6th to 18th, commodity price is less than or equal to the lowest price within 30 days, platform technical servicesThe rate will be reduced to 1%.

In addition, in a”Festival Alliance Program”, merchants implanted the visual elements of Douyin e-commerce in their own media resources, and they will get exposure advertising resources on the Douyin site and large promotion venue resources. Wait.

In the past two years, the growth of Douyin e-commerce can be called the”speed of light.” According to a report by LatePost, Douyin e-commerce’s GMV for 2020 has exceeded 500 billion yuan, which is more than three times more than in 2019. However, only more than 100 billion yuan was sold through Douyin stores, and more than 300 billion yuan of transactions were completed by jumping to e-commerce platforms such as JD.com and Taobao.

This also means that although Douyin has accumulated a huge scale of live GMV, it is more of a content”grass planting” role, making wedding dresses for others.

Starting in October 2020, Douyin has officially blocked product links on third-party platforms to fully build a self-operated e-commerce ecosystem. In April of this year, Douyin clearly marked the label of”interested e-commerce” at the E-commerce Ecology Conference. The industry interprets it as Douyin will simultaneously operate public and private domain traffic, and at the same time make efforts to”plant grass” algorithmic interest recommendation.

However, although Douyin has a lot of traffic, it still focuses on the public domain of content. Compared with Kuaishou’s social private domains carrying cargo traffic and Taoist e-commerce attributes, Douyin is still unable to incubate a stable live broadcast of Daren, and it also lacks stable supply chain resource support.

According to Xiaohulu Big Data:From April to December 2020, among the top 100 anchors with total shipments on Taobao, Kuaishou, and Douyin, there are 45 anchors from Kuaishou, and Taobao 40 There are only 15 people on the vibrato anchor. Among the top 10 anchors by sales, 5 are Taobao anchors, 4 are Kuaishou anchors, and Douyin has only Luo Yonghao One person.

The person in charge of a live e-commerce company MCN said to the author that in order to avoid Tao Department and Kuaishou Formation Li Jiaqi, Weiya, Simba is the only family In the situation, Douyin divides anchors into talents, celebrities, and brand anchors, ranging from private domains to public domains.”Douyin doesn’t have a few big names in hand, but if our traffic is too much, it will still be limited by Douyin.” A staff member of the head of a Douyin V.D. revealed to the author.

In fact, Kuaishou, who was once”kidnapped” by the Simba family, is also doing similar things to attract more waist anchors and brand owners to enrich their platforms and move towards the public domain. According to Xiaohulu big data, in March this year, Simba’s sales volume was 2.343 billion; in May, it was only 498 million. And at the e-commerce conference held by Kuaishou before the”618″ this year, Simba did not appear in the promotional video and Kuaishou’s case.

The person in charge of the aforementioned MCN agency believes that Douyin’s product search function is not powerful enough. If a product is in the live broadcast room Out of stock, if you can’t search for alternatives on Douyin, it will flow to your opponent. Therefore,”Douyin needs to promote more brands to broadcast on the ground for a long time, undertake subsequent traffic, and do a good job of integrating the quality of talent, self-broadcasting, and KOL. In the future, the e-commerce scene of Douyin may be entered by the search box, and then entered by the search box. Small brands connect long tail keywords, and then form transactions through live broadcast.”

These jobs are also the top priorities for Douyin. After cutting off third-party external links in October last year, Douyin has simultaneously deployed live broadcast bases in various places, and initiated a number of brand growth and support plans.

According to Tencent News“Deep Web” reported:In order to encourage brands to broadcast by themselves , Douyin currently stipulates that after the brand’s GMV reaches 30 million, there will not only be a basic rebate for the annual contract, but also an additional 20%rebate. In addition, the withdrawal cycle has also changed from T+7 to T+1.

In August 2020, more than half of Douyin’s popular live streaming rooms have been dedicated to brands. According to 36Kr reports, Douyin’s e-commerce company has been in Guangdong, Yunnan, Zhejiang and many other provinces across the country have acquired land to build warehouses to quickly build a supply chain team.

However, at present, the categories of anchors on Douyin are mostly beauty, clothing, food and other categories. 3C electronics and products with low repurchase rates, Douyin’s delivery effect is still not ideal.

For example, the electric toothbrushes sold by Mengfei are difficult to cooperate with platforms such as Douyin and Kuaishou during the”618″ period.”A link to the head anchor may result in a transaction of 5-10 million. Our warehouse staff are busy for a while, and other time resources are idle. The anchors only carry goods, and there is no daily sales. We have to follow their schedule and have very little bargaining power.”

However, the cooperation between”618″ and JD.com this year is undoubtedly of iconic significance for Douyin:it has won an”ally” from its opponents, and it also constitutes its own brand camp and supply chain. A great addition.

According to the insider of JD.com Live to the author, Douyin has given JD.com larger preferential terms. JD.com will open an official Blue V store on Douyin to access all categories of JD.com products, and JD.com will be responsible for marketing, warehousing and distribution. Prior to this, JD.com and Kuaishou mainly cooperated on 3C products, and Kuaishou anchors selected products, and there was greater freedom in commission and distribution of anchors. The cooperation between Jingdong and Douyin can be divided according to the rules of the brand. During the”618″ period, Douyin will also open up independent operations for JD.com and create a”JD 618 special”.

Jingdong Defensive Battle:Why do you hold Douyin?

According to 36 krypton reports, the 20 billion-year frame agreement reached by Jingdong and Douyin will be realized through the”shop broadcast + talent” approach. The amount of this year’s frame is much higher than the previous GMV frame of Douyin and Suning’s 6-7 billion yuan circulating in the market.

During the”618″ period in 2019, Jingdong once launched Douyin, but most of the commodity transactions are still jumping off the site. In 2020,”618″, JD and Kuaishou reached a strategic cooperation. JD.com provides superior categories to fast-hand stores, where the anchor selects the products for sale, and enjoys the distribution and after-sales provided by JD.com.

The cooperation last year was interpreted by the industry as a”strong alliance” of resources. However, in just one year, as the power of Kuaishou itself increases, the head anchor has too much power to speak, and its co-opetition relationship with JD has become more complicated.

An insider of JD Live revealed to the author that although JD’s cooperation with Kuaishou once complemented its shortcomings, Kuaishou was constrained by the head anchor of the”Simba Family” and could not fully match JD’s marketing rhythm. After Simba was exposed to the”Sweet Bird’s Nest” incident at the end of 2020, the vitality of the platform was also affected when Kuaishou went to”Simba”.

Therefore, the combination of Jingdong and Douyin is not only a passive choice, but also an important traffic introduction and strategic defense.

Actually, Jingdong live broadcast started very early, at the same time as Taobao live broadcast Go online in 2016. But as of 2019, Taobao Live GMV has exceeded 200 billion yuan, but Jingdong Live has not disclosed GMV, and has not produced a”out of circle” anchor.

There are multiple reasons behind exploring it. On the one hand, due to the fact that the live e-commerce Amoy department is still the dominant player around 2019, the value of Kuaishou and Douyin has not yet fully manifested. There are many mismatches between the volatile supply chain behind the live broadcast and JD’s own warehouse supply chain layout.

In addition, according to insiders of JD.com, there were internal discussions around JD.com live broadcast around 2019. However, at that time, JD.com had internal and external troubles, the stock price continued to fall, and there were many crises. RetailCEOXu Lei puts the strategic focus on optimizing business, increasing cash flow, and restoring growth; and 2019 is when Pinduoduo is rising strongly, and Jingdong is also paying more attention to how Compete for the sinking market.

JD insiders said that Xu Lei emphasized the”openness” thinking, Pay attention to the introduction of more”allies” and traffic sources on JD.com. The projects it promotes, such as”Natural Selection” and Kepler, are to open up JD.com’s multiple offline store ecology and online inventory, build shopping scenes, and improve retail efficiency.

With this as the focus, JD’s goal has been achieved in stages. Xu Lei said at this year’s”618″ kick-off meeting that in Q1 of 2021, the sinking market will be the main source of JD’s new user growth. contribution rate reached 81%for the first time; in the past year, JD.com’s active purchase users increased by 112 million. And to a certain extent, the successive rise of Jingdong’s stock price from its trough in the past two years has also formed positive feedback on the choice of focusing on sinking the market.

After 2020, Douyin and Kuaishou have accelerated their rise in the context of the epidemic, and Jingdong will soon put live broadcast on its strategic agenda. However, Jingdong Live, which is a few shots behind, mainly uses entertainment, celebrities, and traffic topics as its main marketing methods, focusing on flagship stores and brand-side diversion. The anchors themselves are weak in personalization and IP, and consumer perceptions are generally not strong. Therefore, cooperation with Kuaishou and Douyin has become imminent.

Currently, there is no specific data on Jingdong Douyin’s cooperation.

However, the platform giants are fighting on their own, and the sales figures announced by all parties are also creating new highs”without suspense.” However, at the consumer level, it is often said that the charm of”618″ has been overdrawn, and the enthusiasm for the promotion has been diminished.

“In the past few years, the ‘618’ discounts were very strong. Now there are not many discounts on the platform. Many of them are first increased and then reduced. It takes time to grab red envelopes. On weekdays, Women’s Day, Christmas, New Year’s Day, there are already too many promotions. I might as well watch live e-commerce occasionally, or wait for the end of the year”Double 11″, at that time, the discount was even greater, and everyone’s desire to consume was stronger.” A”wool party” who participated in the big purchase promotion for many years told the author.

This article is derived from Prism