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the "cross-platform" development strategy has increasingly become a common choice for mainstream live streaming e-commerce organizations. at the media communication meeting on the afternoon of september 26, jiugeyou holdings (hk01450, stock price 1.3 hong kong dollars, market value 1.8015 billion hong kong dollars), which premiered "enter tao" two years ago, handed in a phased answer sheet: as of september this year, a friend's gmv (gross merchandise transaction volume) on taobao has reached 3.8 billion yuan.

regarding the upcoming "double 11 exam", cui dongsheng, vice president of make friends, said in an interview with a reporter from "daily economic news" on september 29 that he hopes that the gmv of taobao's "double 11" this year will exceed 50% compared to last year. growth. the reporter learned from make friends that during last year’s double 11, make friends’ total gmv on douyin, taobao, and jd.com exceeded 2.483 billion yuan, a 178% increase from 2022.

cui dongsheng revealed that after more than two months of preparations for "double 11", 95% of the investment and product strategy layout has been completed, "5% of flexible space must be left to make real-time adjustments to temporary situations."

however, what is different from previous years before the "double 11" is that the recent "hong kong meicheng mooncake" incident has once again brought the standard issue of the live broadcast e-commerce industry to the forefront. farewell to the era of high growth, the live broadcast e-commerce industry has entered the second half of competition. what new tactics will make friends adopt?

"if (any entrants) want to make live streaming e-commerce the only business model now, i suggest not to enter this industry, because this model has been 'rolled' and the threshold is very high, and the cost of learning will be very high. "facing the development and turbulence of the industry, cui dongsheng said that making a friend will focus on the existing stock, exploring investments in similar overseas businesses and improving quality. "i think the periodic chaos is for the formation of the final order, and the competition is also for the formation of a new pattern."

in the two years since entering taobao, the cumulative gmv has exceeded 3.8 billion yuan. make friends: plans to increase gmv by more than 50% during this year’s “double 11”

"from the perspective of user habits, taobao is more like building a cbd (central business district). each of our mcn institutions (an institution that specializes in providing services to online video creators) opens its own shopping malls in it, and through long-term operations, a business model that attracts customers to shop online and repurchase. therefore, taobao live’s user repurchase rate is also high.” in the nearly two years since he led his team to taobao, cui dongsheng has updated this concept through live broadcasts. one platform awareness.

in many interviews, he compared taobao to a shopping mall, while douyin is a playground. "douyin is more of a test of its ability to accept new customers, while taobao is more of a test of the establishment of fans' repurchase behavior."

nearly 2 years of hard work on taobao has also brought considerable benefits to making friends. at the media communication meeting on september 26, cui dongsheng pointed out that the total number of fans in more than 50 live broadcast rooms on the make friends platform is about 86 million, of which the number of fans on the taobao platform reaches 12.297 million.

as of september this year, in the past two years, the cumulative live broadcast time of make a friend on taobao has exceeded 12,300 hours, the cumulative gmv has reached 3.8 billion yuan, and the number of cooperative brands has exceeded 4,500, a year-on-year increase of 73.9% when it was first broadcast, and brand turnover increased year-on-year. 192.9%. “this growth rate exceeds the team’s original positioning and goals.” cui dongsheng said.

if we look back at the important milestones of making friends on taobao, it is difficult to avoid many hot events that set industry precedents, such as "going to the sky in half a year and entering the sea on the anniversary".

at the end of march last year, make friends anchor luo yonghao sold a domestic commercial satellite worth 2 million yuan at a 50% discount in the taobao live broadcast room, setting a precedent for the first transaction of a physical commercial satellite since the birth of e-commerce live broadcast; at the end of october of the same year on the launch day of tmall's "double 11", luo yonghao and make friends anchor wang tuo launched the first domestically produced large cruise ship "aida·magic city exclusive customized tour". the product is priced at 20 million yuan. that night, it was bought by a shandong buyer with an intention fee of 180,000 yuan.

this planning idea is also consistent with the development path of taobao live. in september 2022, taobao live announced that it has entered the 2.0 "new content era", changing from the main indicator of transaction to the dual indicators of transaction and content, forming a two-wheel drive path of "from content planting to transaction explosion".

at the media communication meeting, a reporter from "daily economic news" learned from the staff of make friends that make friends will also conduct aerospace-themed marketing activities in the taobao live broadcast room during this year's "double 11". "last year it was 'going to the sky and entering the sea', we plan to go to space this year, and we are currently cooperating with professional companies such as future aerospace, deep blue aerospace, and taobao to promote this project."

talking about preparations for this year’s “double 11”, cui dongsheng revealed that after more than two months of preparations for “double 11”, 95% of the investment and product strategy layout has been completed.

"in terms of product classification, one category is hot-selling products that have always sold well, and we can work together to increase sales on 'double 11'; the other category is emerging brands and products, which we will promote during 'double 11' , hoping to create some excellent cases of hot-selling products." cui dongsheng gave an example. during last year's "double 11", by making friends in the taobao live broadcast room, the gmv of an emerging brand of underwear and clothing reached tens of millions, "it quickly became a hit all over the internet."

everything is ready, just waiting for the arrival of "double 11". cui dongsheng told reporters that he hopes that this year's gmv on taobao's "double 11" will increase by more than 50% compared with last year.

"not everyone can do the second half" how to attack and defend when making friends?

as an industry that has emerged in a short period of time, live streaming e-commerce has quickly changed the original consumption patterns of countless consumers, merchants and e-commerce platforms. while this industry is quietly integrating into everyone's daily life, people in the industry are also experiencing tremendous changes.

cui dongsheng believes that the live broadcast e-commerce industry has passed the explosive dividend period and has now entered an era that requires standardized and large-scale operations. "there is still room for growth, but we just need to put more energy into doing live streaming well."

so, in the second half of the competition in live streaming e-commerce, where should we focus more on making friends?

"the first one is to maintain and satisfy existing customers well and stabilize our basic market." cui dongsheng said frankly that the decline in industry growth rate and the relative lack of potential new users are indisputable industry facts. "if there are those that are poorly managed or voluntarily withdraw will form internal flows, but the competition for this part will be fierce and bloody, depending on who has strong capabilities, who has a strong foundation, and who has good infrastructure."

among them, creating a vertical live broadcast room is a major advantage in making friends. cui dongsheng explained that the vertical live broadcast room can better and more concretely meet the needs of some people efficiently.

an executive from make a friend also emphasized the significance of building a vertical live broadcast room during the financial results conference call on august 27. “although we have covered most categories of douyin, there is still a lot of room for improvement in terms of crowd coverage: first, the current average crowd coverage on various traffic platforms is less than 5%, so the expansion potential is huge; second, according to market segmentation can further divide the population, for example, in the clothing category, live broadcast rooms for men's clothing, women's clothing and different age groups can be segmented.

in addition, new models such as overseas business are also regarded as potential growth spaces. make a friend staff said at the media communication meeting that the company has made a lot of exploration and investment in overseas markets, and "the chairman personally led the team to actively expand overseas."

at the financial results conference call on august 27, a reporter from "daily economic news" learned that since march this year, make a friend has started building an overseas team. it has now set up an office in north america and is preparing to build a middle east team. among them, in the company’s first live broadcast in the us market, the single-game gmv exceeded one million us dollars.

at the same time, it is obvious that "low price" has become one of the "trump cards" used by many players in the industry to compete.

regarding the growth space brought by low prices, cui dongsheng expressed his concerns: "if we fall into the model of blindly 'rolling' low prices, allocating traffic at low prices, and judging value by low prices, our business will becomes extremely dangerous."

the high risks of only considering short-term interests are emerging. recently, "hong kong meicheng mooncake" has caused quite a stir in the live streaming e-commerce industry.

"the low-price competition strategy will only be a phased strategy, chaos and state. it cannot last forever and will definitely collapse in the end." cui dongsheng believes that reaching the stage of brand dominance will be the general trend of the industry. "we must also give these (chaotic) events in the industry some time, resolutely do a good job in live broadcasting, and go slowly with the cycle, and we will always return to the right path."

daily economic news