What is cognitive evolution? Let me tell you basic logic of live streaming.

Original: Li Sheng

Strictly speaking

When people start producing

The economy has started

Business starts when people start trading

First

If there is a business, there will be a business model

Business model iteration based on tool updates and innovative ideas

First and foremost, I pay tribute to these business pioneers

Because of every innovative business model

Everything means more efficiency. Everyone will benefit from this

Living with goods

This is a business model that has evolved in recent years

And it's only 30% designed

In near future

It will inevitably compete with traditional e-commerce stores and physical stores

Become one of main sales channels

Living with goods

Where does such great potential come from

Why people

Ready to move from online shopping to live shopping

This article explains basic logic of live streaming

Rely on live streaming to deliver goods

Luo Yonghao returned several hundred million a year

Weiya and Li Jiaqi can earn over a billion a year

Countless Stars

Internet celebrities have started live broadcasts and bring goods

A few happy and a few sad

Actually, this is case

It's not as easy as it looks. Popularity alone is not enough

On surface

There seems to be no threshold for live streaming

Anyone can join

But really

With very complex underlying logic

If you can't see underlying logic, you can't do business

Then what is main logic of live streaming?

If you sum it up in one sentence

The aggregation effect is formed by a person's credit value

The resulting savings are distributed among buyer

Three-party seller and reseller

And it reflects on people

And then produce a larger aggregation effect. If it's a loop

What are live streams

At first glance, it looks like selling merchandise in a live streaming room

Live room. One or more people. Camera

Purchase Link

For example, Li Jiaqi

He "started" by selling lipstick. Boy

Live

Try color on your mouth hundreds of times

If it creates an aggregation effect

This

Behind aggregation effect are following key elements

1. Boys selling lipstick

2. Beautiful and delicate appearance

3. The customer group is women. There will be no natural rejection

4. The mouth can speak. The speed of speech is fast and attraction is strong.

5. Enough proximity. Be patient

6. Good quality

The above elements are ranked in no particular order

There are natural benefits

There are acquired benefits. In general, not just

The aggregation effect is combined power of above elements

What is behind these forces

Don't forget technology

This is technology that provides platform for live streaming

Guaranteed uninterrupted traffic and products

Various functions used by sales team

For example, coupons, group purchases, seckill, etc.

However

This is not main logic of live broadcasts. It's just a coincidence

Li Jiaqi

Weya, Lao Luo, Xiao Yang

Simba and other popular players with live stream

What do they sell? Lipstick

Is this clothing? Is it cosmetic? Is it home appliances?

They sell all of above

But that's not point

The thing is, they have to sell different categories

You cannot keep selling same product

Must have significant spacing

Guarantee order of prices from side of product. Guarantee a sense of anticipationcaller

Think about it

Why do people go to their live room to buy these things?

Isn't it from Taobao?

Jingdong, Pinduoduo buy

Maybe you think

People who go to their studio to shop are their fans

Yes

The point is, what is content of these fans? three words

Credit Value

Li Jiaqi and Wei Ya

This is not a specific product

They can sell anything

They mostly sell their credit value

This is credit value

Slow shaping takes a significant amount of time

In other words

The reason why people turn to Li Jiaqi or Wei Ya or

Buy things from other hosts

Because they firmly believe in one point

From live room

The price is right and often lowest in whole chain

And don't be afraid of products with quality problems

This is what is behind credit value

Why

People will believe it

Is it because I think Lao Luo is a good character?

See that Wei Ya looks great?

It depends on whether Li Jiaqi is willing to work hard

Or are they all masters of fooling around?

No

In age of Internet, you can make a one-time deal just by fooling around

The customer stays away from brand

Faster than a scoundrel licks a dog

Li Jiaqi and Wei Ya

Credit value is formed due to high quality and low price

And long term service. Spread by word of mouth

In exchange for fan loyalty

Quality control that Lao Luo is proud of

But what does that mean?

means

Li Jiaqi and Wei Ya have more bargaining power

They can bypass all intermediaries

Negotiate price directly with manufacturer

Products that are not popular can't get into live room at all

They won't

Using low-quality goods to reduce creditworthiness

Because they know

Users trust themselves, not what they sell

The problem is,

Why are manufacturers willing to sell Li Jiaqi at lowest price?

The real core logic of live streaming

Cluster effect

I'm starting with business intelligence

"Real humanity hidden in business" talks about

The essence of live broadcasts

This is with an efficient time lever

The number of clients per unit of time has increased significantly

Maximum

Increase in total profit index

This is basic principle behind aggregation effect

Live like

Lever of time

Using high quality and low price, as well as herd mentality of people

Rapidly increase sales per unit of time

Reduce rather high pre-sale and sale costs

This includes marketing costs

One delivery, one logistics, one after-sales service

Economy

There are three main keywords——

1. Requirements, 2. Trust and Efficiency, 3. Drop shipping and delivery is all a concern

People's need is to buy quality and inexpensive goods

People

I think that Li Jiaqi candon't bring them such products

Li Jiaqi really has strength to do this

Living with goods

Based on above two points, aggregation effect is formed in a unit of time

Significantly improved sales efficiency

Significantly reduce cost of sales

Saved money

Anchor

The seller and buyer are distributed among three. Nobody gets hurt

User

Buy quality and cheap goods

Seller clears stock quickly

Increase sales, cash flow and brand awareness

The anchor gets a big commission

Is that all?

No!

You need to know

Product pricing is a very serious matter

You can't move carelessly

So we'll talk about above. How to ensure price order

Think of Double 11, 618

At these so-called shopping festivals

Why are sellers willing to sell at a lower price? And price reduction is very large

Here

Essentially, shopping festival also uses aggregation effect

As a result, sales efficiency has increased

But often some are happy and others are sad

We will write a separate article about shopping festival to talk about it

However

One thing is certain

This is what people really believe

You can buy goods cheaper than usual at Shopping Festival

Why

Because of shopping festival

Those three words explain why people cut prices

It looks like some street shops

I've been screaming about principles of sale for a year now

If you like

Let user believe in one thing

You have to give him a reason to believe

And

The same principle is used for live streaming. Streaming Features:

Won't sell same item for a long time

The interval between identical products is at least one month

Otherwise it will affect other channels

Buy in a short time

When coupon is limited. Low price is also limited

This is not only a good basis for low prices

And increased aggregation effect - buy as soon as possible. Don't wait for it to be outdated

So, live broadcast

This will not affect pricing system of product

Simultaneously

One more thing to know: brand

Live in progress

Anchor and merchandise are a kind of mutual achievement

Good products increase anchor credit

A good anchor "supported" product brand

Today is a new era

Most brands won't fit

One please

A high profile celebrity supports. The host, on contrary, replaces more

Brand Essence

He never changed. The way we create a brand has changed

At moment

Many companies' brand departments are resting on their laurels

They don't want to change. They can leave their jobs forever

So

Li Jiaqi does not sell lipstick at all, but their credit value

Shopping period in supermarket

People buy brands

Online shopping period. People buy brands + testimonials

Especially bad reviews

During online shopping, people buy human settings

But you need to look

Whether brand or grade

Or character design. Behind it is value

Demand makes people buy

Credit allows people to make choices. Who will buy it?

At first glance, it looks like anyone can do it live

But threshold is actually very high

You need not only to master this whole set of basic logic

I still need to manage logistics

After-sales service. Need to be able to bargain

Continuous maintenance of loan value is required

You need to find a high quality source

During live broadcast, you need to focus on key points

Expressions must be

Contagiousness and attractiveness are most important element

Quality control! Quality control! More quality control!

What do you think

Lao Luo can handle live broadcasts well simply by relying on his popularity and eloquence

Lao Luo made mobile phones

He is very familiar with quality control and supply chain

Not everyone has this option

Lao Luo

Enable live streaming with products. It's a bastard watch mash - analogue

From supermarket to e-commerce

From e-commerce to live streaming

The biggest change

The cost of purchases and effectiveness of sales are changing

For buyers, this is cost of purchases

For sellers, this is sales efficiency

The space for bargaining is squeezed out of middle

Last

Let me briefly talk about basic logic of traditional shopping

Before e-commerce

Supermarket is main thing

Various counters, doors, faces and bottoms dotted with shops

Sale of goods at terminal

The scene revolves around one word - shopping

Shopping leads to shopping

Finalo

Most of time shopping is for sake of shopping

Supermarket

Combining food, drink and entertainment. This is main positioning

There is only one target. Create an aggregation effect

Let customers from all sides

Collected here for a different original purpose

Generate consumption of "gas field"

The initial goal is to get customer to come here

And what will they buy

Depends on what they see

and

View before and after steps

For

For everyone to understand this, I will take a tea shop (kiosk) as an example

Different brands of tea

Link relevant consumer groups to prices

Behind pricing is value

Additional services and branding

The product usually has a low price

Instant gravity and high-quality gravity

Together, these three factors make up seriousness of brand

Focus

The so-called brand gravity

Product related

Rely on your brand to attract specific customers to buy

Homogeneous tea brand

On ground floor of supermarket near entrance

It's cheaper than opening up at a restaurant on top floor

And on middle floor

Often sell poorly

Why

Think about what happens to customers before you see a tea stall

In Tier 1 cities

Three largest supermarkets will not represent Michelle Ice City

Mixue Ice City isn't dumb enough to live in

Because position of customer group is not same

Assume that COCO and HEYTEA are calculated at same time

Then COCO has no competitive advantage

No matter where it's open

This is also related to different customer groups

The more important reason is that HEYTEA brand is more attractive

But even so

COCO also dares to settle down. Because difference between brands brings vitality

In traditional supermarket shopping mode

Homogeneous products

Competition for a position. Heterogeneous goods. Fight for brand appeal

Faith stands behind brand

—— Customers can trust this brand-based buying behavior

Note. This is a purchase, not a product

This can lead to A, B, C, D, etc.

For example, high quality and low price, fast delivery speed, high security, etc.

Here product depends on its positioning

Quality

The meaning of price and promotion after a long period of rainfall

This value

Ultimately, this will affect effectiveness of product sales

This is meaning of brand

Between brand and brand

It's invisible competition, especially among big brands

The goal of a brand is to attract customers

Include leads. Attention

Convince customers that brand is equivalent to X

Either way is a brand advantage

This is also main requirement of customers

For example

Take Jingdong

We think about fast delivery and high quality

Call Pinduoduo

We think cheap

When we mention Taobao, we think of all categories

What does e-commerce do

Break information asymmetry

Allow shoppers to fully compare prices

And reduce cost of sales

Improving sales efficiency

Break limits of time and space

Using Internet as leverage to increase store hours

Enhanced customer flow

Provided

Initial money to be transferred to landlord and advertising company

Now I need to teach Taobao, Jingdong and Pinduoduo

In addition

There is not much difference between e-commerce and supermarkets

E-commerce just moved supermarket to Internet

At same time, differentiated advantages of supermarkets remain

Don't forget anytime

Products of same quality. Low price plays a decisive role

Except luxury items

However, it should be clear

Products of same quality. Why price may be lower

This must be because some efficiency has been improved

This way you will cut some costs. So low price in return

But at a low price

To make people believe that quality is high and price is low

Process required

Currently there is no better way than live streaming

The live streaming industry has just begun

It's still in early stages of development

In future, it may become most popular way to shop

People with a keen sense of smell have already entered arena