Live Broadcast and E-commerce Platform New Battles

 The first e-commerce promotion after the epidemic has already begun. The annual “618” is not only a promotional battle for merchants, a shopping feast for consumers, but also a game between platforms.

Different from previous years, this year’s “618” in addition to e-commerce platforms such as JD.com, Ali, Pinduoduo, and Suning.com, Douyin and Kuaishou also joined the “promotional war.” A lot to watch.

On one side, JD Retail and Kuaishou Technology signed a strategic cooperation agreement. The two sides will conduct in-depth cooperation in the supply chain. Users can directly buy JD.com’s self-operated products within Kuaishou, and launch “double tens of billions” of subsidies. On the other side, Douyin and Suning Tesco will reach in-depth cooperation, and Suning Tesco’s supply chain advantages will complement the Douyin e-commerce shortcoming. The entry of vibrato and quick hands opened a new journey for the e-commerce promotion festival. This is a new battle on the e-commerce platform about traffic, and it is also a new struggle for monetization on the live short video platform. Multi-party game, where will the e-commerce and live broadcast industry go?

Douyin, Taobao “break up” soon?

In the past, JD.com and Kuaishou cooperated, and Suning and Douyin joined together… The giants are aiming at the hundreds of billions of dividends in the live e-commerce market to build an ecological alliance between the two parties. Live e-commerce ushered in the era of “combined boxing” confrontation.But such cooperation is not new this year. In fact, the cooperation between the e-commerce platform and the live broadcast and short video content platforms began in 2018.

In March 2018, Douyin began to associate with Taobao’s selling links. Among multiple Douyin numbers above one million, a shopping cart button appeared. After clicking, product recommendation information appeared, which was directly linked to Taobao. Later, Douyin also opened a link to the product window for some people, so as to reach people’s Taobao shop.

At that time, Douyin and Taobao were still in the “honeymoon period.” There are even rumors that Ali is going to buy shares of Douyin.

According to “LatePost” report, in June 2019, Douyin and Taobao signed a 7 billion yuan annual framework agreement, including 6 billion yuan in advertising and 1 billion yuan in e-commerce commissions. This framework agreement requires Douyin since June 2019 The first year will create 40 billion GMV for Taobao. Taobao has responded that the two sides have cooperation, but the data is not true.

As the Douyin traffic pool is getting bigger and bigger, its platform boundaries are constantly widening, and its ambitions for e-commerce layout are also becoming larger; on the other hand, although Taobao Live has head anchors like Li Jiaqi and Wei Ya, compared with anchors KOL’s content platform, platform dividends are still being consumed, requiring more input of traffic resources and holding the resources firmly in their own hands. In the cooperation and development in recent years, both sides “have their own concerns”.

Recently, while the news of Suning Tesco and Douyin strategic cooperation came out, it was reported that the annual cooperation framework between Douyin and Taobao is about to expire. After July 1, Douyin will basically no longer be able to add Taobao links . At the same time, Douyin also encourages merchants to open Douyin stores as soon as possible.No response from Douyin and Taobao. However, according to insiders, this matter has not yet been finalized. It can be seen that although the termination of cooperation between the two sides has not yet been finalized, a crack has already appeared.

Judging from the current situation, the Douyin and Taobao probabilistic love period will end, after 618 or separately. Judging from the current situation, Douyin needs e-commerce, but is Suning Tesco a good choice? Perhaps it will take time and market verification.

Is there any threshold for live streaming?

The rise of live broadcast e-commerce has brought about opportunities for cooperation between e-commerce and live broadcast and short video platforms with live broadcast functionality.

For e-commerce platforms, the effect of Taobao’s live broadcast makes other platforms that have not yet been pre-laid out on the live broadcast more urgently need to find a partner to make their products more than one flow channel. At the same time, a standardized share and price system is used to ensure that the “lowest price in the entire network”, a real weapon for live streaming, can be implemented.

The importance of content and traffic to the current stage of the e-commerce platform is almost as important as the importance of the e-commerce supply chain to the short video live broadcast platform.

Especially this year, the popularity of live broadcast e-commerce has made the e-commerce industry and the live broadcast industry begin to re-examine the value of traffic and supply chain.

The content platform lacks a stable and complete supply chain, while the e-commerce platform lacks content first; followed by the live broadcast of the head anchor, not just ordinary sellers; and consumer scenarios under the content ecology. Content platforms such as Douyin and Kuaishou can complement these.In an interview with Sina Technology, Xuan De, general manager of Taobao’s content e-commerce business division, said that there is currently a shortage of talent in the field of live broadcasting, and Taobao hopes that more anchors will become more professional. “A good anchor does not only depend on the team behind it, but also on its own.”

This may also be one of the reasons why Taobao built the content system. In 2016, Taobao established content-based, community-based, localized, live broadcast and other products. JD.com has always been in the content sector, especially since this year, there is no shortage of JD.com in the live broadcast war.

However, unlike the natural traffic attributes of the content platform, the content construction of the e-commerce platform has not seen obvious effects.

Now, will the opening of the e-commerce platform and the cooperation of the content platform bury hidden dangers for future competition? Re-enact the story of Douyin and Taobao?

Regarding the possibility of future competition between the two parties, Zhang Shule said in an interview with Sina Technology that professional platforms do professional things, and self-built supply chains for short video platforms will increase the “weight” and risk of their platforms. The same is true for e-commerce platforms that have no prior layout. Therefore, the channels can be divided through cooperation, which is more affordable and easier to occupy favorable terrain at the outlet of live broadcasts.

At the same time, if e-commerce issues such as supply chain and after-sales are borne by the e-commerce platform, the host and content platform are also taken part of the risk accordingly.

All in all, fast-handed and vibrating e-commerce is developing rapidly, and there must be some impact on the e-commerce platform. But in contrast, supply chain construction is not easy.

 

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618 Live Broadcast and E-commerce Platform New Battles - /10

Summary

 The first e-commerce promotion after the epidemic has already begun

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