The Chinese e-Commerce business has taken the world by surprise! Cutting edge innovations in improving customer interaction like live broadcast e-commerce and strategy buffer have taken this industry to new heights: Alibaba’s turnover almost reached 500 BILLION RMB (yes, that’s BILLION, not million!!!) and JD.com’s turnover was close to 280 billion RMB. The main question: HOW?
For the e-commerce industry, the annual Chinese Double Eleven has broken all previous records due to new technology and more engaging platforms. During the Double Eleven festival, live e-commerce became the mainstream: the increasingly popular live broadcast e-commerce is restructuring retail. In addition to consumption patterns and buying behavior under different categories, what else should brands analyze to improve conversion and sales?
OLD CONCEPT, MODERN TOUCH: LIVE BROADCAST E-COMMERCE
Live broadcasts create a consumer carnival atmosphere with zero-distance contact with users. E-commerce platforms such as Taobao, JD.com, Suning and Pinduoduo have focused on live broadcasting in their respective Double 11 promotion activities, investing unprecedented amounts of money to communicate with potential customers.
Taobao (Alibaba)- Taobao Live arranged two pre-sales: the first wave of pre-sales officially launched on October 21, and the second wave on November 4. In these two rounds of pre-sales, live broadcast was a major highlight.
Taobao introduced the core factor in the live broadcast ecosystem: hit the rankings to win rankings, incorporate the core behaviors of consumers into the task pool, and encourage merchants and anchors to win rankings and get platform incentives. During the first round of pre-sales, Wei Ya and Li Jiaqi had live broadcast sales of 3.221 billion RMB and 3.327 billion RMB respectively, totaling nearly 7 Billion RMB as sales deposit exceeded 1 billion RMB.
JD.com announced that it would invite more than 300 celebrities and 500 creative CEOS to the live broadcast rooms. The social e-commerce brand "Jingxi" under JD.com broadcasted live through the industry belt and combined 6 social games to target the sinking market. On November 10th, JD.com hosted the "2020 JD Live Broadcast Super Night,” where more than 30 heavy stars did live broadcasts of products, providing consumers with a multi-screen interactive experience of watching, buying and playing.
That’s why live broadcasts have become the most important tool for e-commerce platforms. For e-sellers like Taobao, JD, Suning and Pinduoduo, live e-commerce is an important marketing tool because:
- the users in this platform have shown positive conversion rates
- it shortens the user shopping path and
- improves the marketing capabilities of platform merchants
- Live-streaming and Users
Live delivery is a form of shopping that is more vivid and has a better experience than "shelf" e-commerce. As far as the industry chain is concerned, live e-commerce is fully or partially improving the traditional retail mid-level distribution system to allow goods to circulate. Live delivery is much simpler than traditional e-commerce and retail; it is a new format with shorter decision-making paths, stronger interaction, better buying experience, fewer industrial circulation levels, and many other advantages.
Can Brands benefit from live-streaming?
The role of live e-commerce is even more important for brands and businesses. It is not only a powerful tool to enhance brand user stickiness, shorten user purchase paths, but also enrich online and offline marketing capabilities. For chain retailers, live streaming is not only an important tool for displaying products and services, but also an important way to promote corporate culture and demonstrate corporate strength. The live broadcast not only shortens the distance between enterprises and users, but also enriches the service methods of enterprises.
Target Customers’ Population Distribution
Some interesting changes can also be seen from the consumption data disclosed by the national bank. During the 11.11 period this year,
- Post-80s consumption accounted for 42% of the total figure
- The post-90s consumption accounted for 28%. Compared with last year’s data, post-90s consumption gradually became a major force. Among the purchasing power of major cities, cities in central and western regions such as Xi'an have clearly risen.
- 2020 Double Eleven logistics system: Strategy-Buffer and improving User Experience
This year's Double Eleven—which is divided into two “waves”—will give businesses better sales growth ideas while being more efficient in logistics and distribution. The sales status of the first wave can also help to choose the best business strategies for the second wave. As a whole, this would make Double Eleven much more effective.
This is what our representative netizen said: "I thought the world economy was not good this year, but it turned out that MY OWN economy wasn’t doing too good."
Please continue to pay attention to the sales situation of the next Double Twelve and the year-end promotions. Is this the end of this year? Nope! The 12/12 and the Spring Festival’s even bigger sale is still waiting. Stay connected and follow our updates to get the real deal of market knowledge, new techniques and effective sales strategies.