Home Business Li Jiaqi and Wei Ya challenge L’Oreal’s “lowest price” who has the final say? |L’Oreal|Li Jiaqi|Via_Sina News

Li Jiaqi and Wei Ya challenge L’Oreal’s “lowest price” who has the final say? |L’Oreal|Li Jiaqi|Via_Sina News

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Original title: Li Jiaqi and Wei Ya challenge L’Oreal, who has the final say on the “lowest price”?

  Blindly low prices can only reduce their brand value

  Unsustainable

  

  A facial mask puts all the disputes between the anchor, brand and platform, which was originally undercurrent, on the table.

  L’Oréal Paris claimed that a facial mask was pre-sold in the head broadcaster room as the biggest force of the year. As a result, it was more than 100 yuan more expensive than the brand’s own broadcast room, which aroused the anger of the public.

  “L’Oreal customer service said that Li Jiaqi said that the low price does not count.” “Should L’Oreal refund the price difference?”… The international brand L’Oreal, which has a history of 100 years, has fallen into a crisis of public opinion. The two leading anchors of Wei Ya openly challenged each other.

  The incident has been fermenting for a few days, and the plots of complaints, disputes, apologies, and solutions have been staged in turn. On the surface, it is a game and contest between the brand and the anchor, but the ecological dilemma of live streaming has gradually emerged. Can the anchor and the brand cooperate happily and continue to broadcast the feast of delivery? The core question is, who has the final say on the “lowest price” and is it sustainable for live streaming?

  Disturbance caused by the “lowest price”

  On the evening of October 20th, double 11 pre-sales started. Li Jiaqi and Wei Ya two “kings of goods” kicked the gongs and drums to start the pre-sale. Data showed that Li Jiaqi’s live studio sales eventually reached 10.653 billion yuan that night. Wei Ya’s live studio Sales reached 8.252 billion yuan, and the two men sold a total of about 18.9 billion yuan.

  That night, the brand that showed up in the live broadcast became the focus of the attention of 500 million viewers. Li Jiaqi and Wei Ya put on the shelves 17 and 15 products of L’Oreal Paris respectively. The ampoule mask that caused the dispute has sold hundreds of thousands of good sales. At that time, the price of the live broadcast room was 429 yuan for 50 pieces, and after various discounts, it reached about 368 yuan.

  However, after the pre-sale period ended, the official flagship store of L’Oréal Paris issued tens of thousands of store coupons of 999 minus 200 in early November, plus various platform discounts. The lowest price of this product in its self-broadcasting room is 257.7 yuan.

  In L’Oréal’s early Weibo promotion, it was claimed that Li Jiaqi’s pre-sale was the strongest throughout the year, but this expression was deleted on the day of 11.11.

  A group of consumers stayed and worked hard, thinking that they had bought the lowest price in Li Jiaqi and Wei Ya’s live broadcast room, but they were dumbfounded when they saw the price difference between the official shipment and the official shipment by more than 100.

  As a result, consumers spontaneously filed joint complaints. On the Black Cat complaint platform, the number of collective complaints about “L’Oréal Paris falsely propagating, issuing a large number of discount coupons after paying the deposit, deceiving consumers, and refunding the difference without discrimination” has reached 38,153.

  Some consumers asked about this in the L’Oreal flagship store, and the customer service responded: “Li Jiaqi said that low prices mean low prices? Li Jiaqi is just a worker, and the official event planner decides the discount.”

  Li Jiaqi and Wei Ya couldn’t sit still. On the evening of the 17th, Li Jiaqi and Wei Ya both issued a statement, suspending all cooperation with L’Oréal until the matter is properly resolved, and asking L’Oréal to provide a solution within 24 hours.

  L’Oréal issued a statement in the early morning of the 18th, publicly apologizing to consumers, and stated that the promotion mechanism is too complicated and troublesome to consumers. In the solution given that night, 200 yuan was given to consumers who had purchased more than 999 yuan. Threshold vouchers, two 499-100 coupons for consumers who are less than 999 yuan.

  As soon as the solution came out, consumers were strongly dissatisfied: “They do not treat consumers equally, and they want to continue cutting leeks by issuing coupons, and strongly demand that they refund the difference!” Xijiang, the founder of the New Retail Research Institute, analyzed this incident and affirmed The brand has made mistakes, and there is no doubt that the brand has to take responsibility.

  The Zhejiang Provincial Consumer Protection Committee stated that it will continue to pay attention to the incident and advise operators not to always use cumbersome promotional rules to add “blocking” to consumers. Only by incarnation of “Holmes” and “calculators” can they find the most favorable way to place orders. Enterprises that make consumers “heart tired” and “heart-wrenched” will eventually no longer be chosen and trusted.

Zhang Xiongwei, a lawyer at Beijing Weiheng (Hangzhou) Law Firm and Director of Consumer Rights Protection and Anti-Unfair Competition Business Department, believes that L’Oréal Paris’s actions are suspected of false propaganda, price fraud and unfair competition. He explained that claiming to lock the Daren’s live broadcast room “the greatest effort throughout the year”, and ultimately failed to fulfill the price promise, suspected of deceiving and misleading consumers with false or misleading commercial propaganda, and also suspected of unfair competition.

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  Coerce consumers to make the brand?

  L’Oreal Paris is part of the L’Oreal Group, which has well-known brands such as Helena, Armani, and Lancome. Financial report data shows that e-commerce channels are becoming increasingly important to the L’Oréal Group. In the first three quarters of 2021, e-commerce channel sales increased by 29.7% year-on-year, accounting for 26.6% of total sales.

  L’Oréal has been bound to the head anchor for a long time. As early as 2016, Li Jiaqi stood out through the online celebrity incubation project that L’Oréal and the company behind it cooperated. Relevant data showed that Li Jiaqi played 100 live broadcasts for L’Oréal every year. In the past two years, L’Oréal Group Has been working closely with Li Jiaqi, covering all kinds of makeup and skin care products, and the discounts given are relatively large.

  According to third-party data, during the Double 11 period, L’Oreal Paris brought a total of 57 pieces of goods in Li Jiaqi’s live broadcast room, with a sales volume of 1,387,200, and a total sales of 497 million. Tmall double 11 battle report shows that L’Oreal Paris has a turnover of more than 2 billion yuan. This ampoule mask is the only beauty product with a sales volume of over 500 million yuan. In contrast to the data, the importance of the head anchor to the brand is self-evident.

  Tmall has been vigorously supporting brand self-broadcasting since the beginning of the year. During Double 11, Taobao Live has more than 100,000 brands for self-broadcasting, and 43 brand self-broadcasting rooms have a turnover of over 100 million yuan. At the same time, Taobao Live’s brands and merchants are self-broadcasting. The ratio reaches 70%.

  During the important promotion period, when the traffic hits, the brand naturally wants to keep it. According to third-party data, the live broadcast data of L’Oréal’s self-operated flagship store on Double 11 has increased significantly. In the past month, the average number of viewers per game has reached 4.4 million, the average sales per game is close to 80,000, and the average sales per game is close to 30 million. The average number of views is only a few hundred thousand, and sales and sales are also ten times less.

  With the changes in traffic and sales, the game between the brand and the channel has become even more turbulent.

  In the price of 257.7 yuan obtained by netizens, four red envelopes are needed, one is store coupons, the other is cross-store discount coupons, there are also beauty surprise shopping coupons, and the red envelopes received by consumers through the event. , These red envelopes are indispensable. Behind the red envelopes may be hidden battles between brands, platforms and leading anchors.

  Wang Gao, a marketing professor at China Europe International Business School, said that live broadcasting has increasingly become a form that brands cannot bypass. The platform is currently vigorously supporting brand self-broadcasting, and many brands are also building their own live broadcast channels. But the biggest problem facing the brand’s self-broadcasting room is where the traffic comes from. “Anyone can sell the low price, but who will buy it is a problem, so the brand needs to pay for the traffic of Li Jiaqi and Wei Ya.”

  During Double 11, Li Jiaqi publicly announced that if the brand wants to cooperate for a long time, it must fix the minimum pre-sale price. According to Wang Gao’s analysis, general brands and leading anchors will sign relevant agreements with a one-month to three-month insured period. During the Double 11 period, because the promotion mechanism is too complicated, the brand may not figure out what the discounted price of each channel is. “The source of the contradiction is that the brand wants too much. The two groups of people selling in the flagship store and cooperating with Li Jiaqi did not work well together and messed up.

  Xijiang said that L’Oreal is a big brand, not a weak one, and that the apology for compensation was mainly because its logo misled consumers. Head anchors such as Li Jiaqi and Wei Ya, as emerging Internet celebrity channels, have the characteristics of strong explosive force, high single-game sales, and suitable for promotion. At the same time, the radiated consumer group is relatively young, and they are the users that big brands like L’Oréal want, so they will not sit idly by.

  In this incident, Li Jiaqi and Wei Ya were praised by many netizens and responded quickly and domineeringly: if the brand does not make compensation, it will make compensation.

  Wang Gao believes that for the top anchor, the last thing they don’t want to offend or lose is the consumer. If they promise the lowest price, they must achieve the lowest price, otherwise it will cause the loss of customers. He explained that Li Jiaqi and Wei Ya are sandwiched between consumers and brands, and they are bound to make a stance toward consumers and use their own power to compete. Assuming that the brand does not compensate, you can still excuse yourself in the future.

  “This does not mean that Li Jiaqi is intimidating the brand. This matter is a greater test for L’Oreal. The huge consumer groups behind Li Jiaqi and Wei Ya are enough to let them coerce consumers to make the brand. If L’Oreal does not take responsibility this time, they Can you afford the consequences of non-cooperation?” Wang Gao said that L’Oreal must consider this level: Under the huge traffic, Li Jiaqi and Wei Ya are already spokespersons for consumers. The information in the live broadcast room is too transparent and the fermentation is too fast. Compared with offline channels, the reference effect is stronger, and the price difference is more likely to trigger public opinion events.

  Lowest price is not sustainable

  Public data shows that as of June 2021, the number of live webcast users in my country has reached 638 million, a year-on-year increase of 75.39 million, accounting for 63.1% of the total netizens. Among them, the scale of e-commerce live broadcast users was 384 million, a year-on-year increase of 75.24 million, accounting for 38.0% of the total netizens, and the growth rate was rapid. The number of fans of Li Jiaqi and Wei Ya has achieved a leap from 0 to 100 million in just a few years.

  “In recent years, consumer psychology and behavior have changed. It has become more and more difficult for consumers to stay on a certain page to browse products. Everyone flocked to the live broadcast room to watch the excitement. Li Jiaqi and Wei Ya came into being, and the platform traffic was the beginning Inclined training, the brand is a strong supporter.” Wang Gao believes that concentrating traffic to the head anchor at the lowest price will cause the ecology of live streaming to be malformed. At present, brands and platforms are overwhelming.

  Li Jiaqi and Wei Ya’s current position in the live e-commerce market has not been shaken by a third person. During the just past Double 11, Li Jiaqi and Wei Ya ranked the top two, with Li Jiaqi’s sales of 21.7 billion and Wei Ya’s sales of 199. In the third place, Sydney has sales of only 4.5 billion.

  “If there are 10 Li Jiaqi and Wei Ya, there will be more brand choices.” Wang Gao pointed out that at present Li Jiaqi and Wei Ya can be said to be the most powerful business entity in China. The scale of live broadcasts brought by the two Sales scale and traffic scale cannot be copied, and brand owners have no choice. Therefore, the lowest price is definitely still more influential to the top anchor, and the conditions they put forward are difficult for the brand to refuse. “Double 11 sales may be the top priority for many brands. Brands may become winners if they cooperate with leading anchors, or losers if they don’t cooperate, but if everyone cooperates, they are all losers. This is a prisoner’s dilemma. It’s hard to break at the moment.”

  Xijiang believes that in Li Jiaqi and Wei Ya’s live broadcast room, consumers are still loyal to low prices. If there is no low price, consumers may be gone. But this result is still caused by the brand and the platform.

  Previously, relevant departments prohibited the use of languages ​​such as the lowest price in publicity, but without the lowest price, the live broadcast rooms of Li Jiaqi and Wei Ya are still deeply loved by consumers. This is especially true for consumers in the beauty and skin care category. Many products are still the most powerful in the entire network after they are equipped with gifts.

  “At present, consumers will preset the lowest price in Li Jiaqi and Wei Ya’s live broadcast rooms. Everyone has a very strong cognitive inertia. When they find that they are not buying the lowest price, they will be very angry.” Wang Gao analyzed the incident. The reflected group emotions are produced through the reference effect.

  “Brands can circumvent this situation in a way. If they don’t have the lowest price and high-profile publicity, this kind of thing will not happen.” Wang Gao gave the brand’s advice. He said that on the one hand, brands should reduce their reliance on top anchors and build their own live broadcast channels. On the other hand, they must adjust their mentality. Don’t expect astronomical sales in a live broadcast. “If companies don’t want the lowest price, they can have more choices.” He added, “Blindly low prices can only reduce their brand value, which is unsustainable. They should pay more attention to product and brand building.”

Xijiang said that in the future, brands should balance the relationship between selling and bringing goods, which means a balance between their own channels, systems and external talents. The scene of live broadcast delivery needs to be defined by the brand. The anchor is mainly a channel for clearing goods and cannot be a daily sales channel.

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Editor in charge: Liu Guangbo

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