Economic Observer reporter Zheng Luoxin The last 24 hours given by Li Jiaqi and Wei Ya are getting closer and closer. But they still did not wait for the specific solution given by L’Oréal. This “low-price defense action” involving the live broadcast room and the brand has not yet concluded.
The story and the main line of the matter are very clear: in the live broadcast of Double Eleven, consumers bought L’Oreal ampoules from Li Jiaqi and Wei Ya’s live broadcast room at a price of 429 yuan. However, consumers found that this price, which was advertised by L’Oréal as “the biggest effort of the year”, was more than 170 yuan more expensive than L’Oréal’s flagship store on Tmall. Expensive consumers came to the live broadcast room to complain. The “injured” Li Jiaqi and Wei Ya failed to wait for L’Oreal’s solution, so on the evening of November 17, they issued a statement to suspend all cooperation with the official flagship store of L’Oreal , And ask the other party to give a plan within 24 hours.
As public opinion escalated, L’Oréal expressed its attitude on November 18: It will propose a proper solution for all relevant consumers.
The extra 170 yuan will be refunded or not? Can the cooperation between L’Oréal and the live broadcast room continue? It is foreseeable that these problems will be seen one by one in L’Oréal’s specific plan. But in this round of turmoil, the “low price” advantage of Li Jiaqi and Wei Ya’s live broadcast room has been challenged. Will the same thing happen next? How should the live broadcast room respond? These problems are in front of such live e-commerce companies, including Li Jiaqi and Wei Ya.
Mo Daiqing, director of the online retail department and senior analyst of the e-commerce research center of the Net Economics, introduced to reporters that live e-commerce is a low-cost model, and it is precisely because of the low-cost advantage that it has attracted a large number of users. To a certain extent, Users pay more attention to price than the brand itself.
However, when the growth of e-commerce was weak, it was the live broadcast that made the Double Eleven data show a remarkable performance. According to data from the China Business Industry Research Institute, in 2021, Double Eleven’s network-wide transaction volume was 965.12 billion yuan, a year-on-year growth rate of only 12.2%, the lowest growth rate in 12 years. Among them, Tmall Double Eleven (November 1 to November 11) has a total transaction volume of 540.3 billion yuan, a year-on-year increase of 8.45%. In the past four years, the growth rate has remained above 26% on average, but the transaction volume is TOP10 Taobao accounted for eight seats in the live room, and the transaction volume of Li Jiaqi and Wei Ya’s live room exceeded 10 billion, maintaining high growth.
When commenting on the consumer public opinion on Double 11, the China Consumers Association stated that the “Double 11” e-commerce promotion was weak in innovation and the traditional shelf e-commerce “selling mode” password is being cracked under the spotlight. Although the algorithmic portrait and “low-price” strategy of attracting traffic have created multiple rounds of business miracles, they have been strongly challenged by the new live broadcast e-commerce companies with new social marketing methods; theoretically, the “live show” is simplified because of simplification. The supply chain makes prices more attractive, but the scene effect created by it makes consumers more perceptual and impulsive to place orders. And this just shows that its harvesting and rounding up of traffic is actually simpler and more crude.
The China Consumers Association reminded that “if only the random overdraft of potential consumption stock is concerned, and the incremental contribution of fixed consumption willingness is less glued, the tug of war for traffic can only continue to revolve around the vicious circle of low-price strategies”, public opinion hotspot Whether it is price disputes, false shipments, many problems exposed on the platform, or the externalization of internal contradictions that peaked in the traffic effect of the “Double 11” this year, the slot points.
Mo Daiqing said, “It’s hard to sustain live streaming with low prices alone. This will be the same as Taobao in the early days, with low-price competition as the advantage. In order to earn more profits, it will force the cost down. The raw materials and technology of the products have been reduced, which is not conducive to development.” Therefore, in his opinion, the sustainability of live streaming is still in the merchants and brand products themselves. Only when the products are good can they be relied on by channels and trusted by users.
“Double Pick” L’Oreal
On November 15th, L’Oreal was suspected of false propaganda on Weibo’s hot search. The pre-sale of L’Oreal ampoule masks purchased by consumers in Li Jiaqi’s live broadcast room was more than 170 yuan more expensive than L’Oreal’s flagship store on Tmall.
It is understood that on October 20, at the beginning of the first wave of “Double Eleven” pre-sales, L’Oréal stated on its official Weibo that consumers who paid a deposit during Li Jiaqi’s live broadcast would buy 20 pieces of L’Oreal ampoules and give them 30 pieces. A total of 50 films cost 429 yuan. L’Oréal’s official Weibo called the event “the biggest effort of the year.” Later, L’Oreal’s official flagship store on Tmall issued a large number of coupons worth 999 yuan minus 200 yuan during the “Double Eleven” period. After the discount, consumers only need 257.7 yuan to buy 50 pieces of the same mask.
A number of consumers complained on the Black Cat complaint platform that L’Oréal stated on October 20 that the pre-sale price of the ampoule mask was “the greatest strength of the year”, in order to incite consumers to pay the deposit. L’Oréal maliciously deceived consumption through the loopholes in the coupon. This seriously violates the legal rights of consumers participating in pre-sales.
On the evening of November 17th, regarding consumers’ purchase of L’Oreal ampoule masks in Li Jiaqi’s live broadcast room on Double Eleven, “the price is too high”, Li Jiaqi’s USWrist Network Technology Co., Ltd. gave an explanation.
In the description, American Wrist Technology stated that before Double Eleven, L’Oréal Paris had promoted that the ampoule mask was the most powerful in the Li Jiaqi live broadcast room, and then during the Double Eleven period, L’Oreal issued a discount of 999 yuan minus 200 yuan in the brand live broadcast room. The redemption coupons caused the users who received the coupons to purchase the product at a price lower than Li Jiaqi’s live broadcast room after superimposing the discount, which is unfair to the consumers who stayed at the Li Jiaqi live broadcast room during the pre-sale on October 20.
At the same time, the United States said that it has negotiated with L’Oréal many times. If L’Oréal still fails to give a clear solution after 24 hours, Li Jiaqi’s live broadcast room will provide a compensation plan to consumers of L’Oreal ampoule mask in Li Jiaqi’s live broadcast room. At the same time, before the matter is resolved, all cooperation with the official flagship store of L’Oréal in Paris will be suspended.
Also on the 17th, Via made the same statement, stating that if L’Oreal fails to give a reasonable solution, Via’s live broadcast will use the bottom-up plan to compensate, and at the same time suspend the cooperation with L’Oreal.
Via said, “L’Oréal has not given a solution now, but said that if we give them another 24 hours, we will provide a solution within 24 hours. Responding to the whole live broadcast room is asking how to deal with this matter”, the most important thing is, “We have not claimed in the live broadcast room or anywhere that this product is the most powerful in the whole year. Break the price”.
On November 18th, in response to the statement of Wei Ya and Li Jiaqi, L’Oréal told reporters, “This time some consumers took products at lower prices after pre-sales because they used multiple platforms and stores. Discounts. To enjoy these discounts, a single order must be collected to reach a certain total price threshold. At the same time, the platform system will automatically add eligible discounts to the event products to enjoy them.”
Some consumers calculated in the Douban group that L’Oréal gave the anchor the lowest price on the single product of the ampoule mask, but if the consumer bought the L’Oreal ampoule mask for 999 yuan, it is indeed cheaper than the live broadcast room, and the one who bought 50 pieces at 257.7 yuan Consumers of facial masks have superimposed a variety of coupons, such as discounts of 200 off 999, 1200-100, 88vip red envelopes per person on the platform, and a 1000 shopping gold to achieve that low price.
L’Oréal said: “After receiving consumer-related feedback, the company attached great importance to it and set up a special event team in the first time, actively understanding, clarifying and handling consumer-related inquiries and issues with relevant government departments. Demand. At the same time, I also saw the suggestions of Ms. Wei Ya and Mr. Li Jiaqi on this incident. At the same time, we must be responsible for all relevant consumers (including Ms. Wei Ya and Mr. Li Jiaqi’s live broadcast rooms and other related consumers). After comprehensively and comprehensively considering the different situations of all relevant consumers, and on the premise of protecting the interests of all relevant consumers, we propose appropriate solutions for all relevant consumers.”
As of 17:00 on November 18th, a few hours before Li Jiaqi and Wei Ya started broadcasting, both sides told reporters that they are still negotiating and L’Oréal should respond soon.
After leaving the low price, what is left of the live e-commerce?
After-sales service is a headache for many consumers when buying things in the live broadcast room. In the collective complaint on the Black Cat platform, in response to the above incidents, the complaint requests made by consumers are apologies, refunds and compensation.
Some netizens on Weibo asked the customer service of L’Oréal flagship store how to refund the price difference, and the customer service responded that “the price difference is caused by irregular promotion activities, and the price of different activities will change. To refund the difference, you need to provide a coupon Record the screen for verification.”
Some consumers have noticed that the L’Oreal ampoule mask purchased in Li Jiaqi’s live broadcast room has been unable to apply for price protection due to being off the shelf. The platform’s response to the price protection application submitted by consumers is “Because the product is off the shelf, the platform cannot automatically identify the price difference of the product. If there is a need to make up the difference, it is recommended to contact the merchant for friendly negotiation.”
The reporter checked Taobao’s price guarantee service standards, and the fourth item in the consumer’s other precautions indicated: “If the product is taken off the shelf, deleted, or the product is in the pre-sale state, the price guarantee service is not supported.” This makes consumers Unable to meet the criteria for applying for price protection. Regarding the question of whether the platform’s price insurance policy applies to this incident, as of press time, Ali has not given a response.
An e-commerce person told reporters that, generally speaking, the brand and the anchor will sign a price agreement, which includes details such as how long to maintain the lowest price and give the most gifts. If the agreement is violated, the brand will have to pay liquidated damages.
In response to the question of “Is there any price protection related content in the agreement signed with L’Oréal”, the U.S. wrist told reporters, “During Double 11, we have never signed any price-insurance agreement, let alone declared a minimum price. The highest price comes from the mouth of L’Oréal”. Wei Ya also said that it has nothing to do with the agreement. “We have never claimed that this mask is the most powerful or the lowest price in any channels, including the live broadcast room.”
In fact, the reason why consumers reacted fiercely to L’Oréal’s “price breaking” is also because they have a fixed impression in the minds of consumers, that is, “live room should be cheap.” From the perspective of the rise of live broadcast rooms, “low price” is also one of their distinctive labels.
On November 18, the 2021 “Double 11” consumer rights protection public opinion analysis report showed that during this year’s “Double 11” promotional activities, negative consumer information was mainly concentrated in price disputes, false shipments, and platform issues.
Among them, the price dispute was concentrated on November 1 and was related to the pre-sale deposit and the final payment. First, many consumers who are ready to pay the final payment find that after various discounts are added, the pre-sale price may not be the most favorable. The second is the dispute between the price difference between different live broadcasts, the price difference between live broadcasts and direct orders.
From pre-sales, cross-store full reductions to classified coupons, large-value discount coupons in stores, recharge to send shopping money… “Double 11″ gameplay is getting more and more complicated, and consumers will get lost in the merchant’s price if they are not careful.” “Hurricane”. Another facial mask brand, Di Jiating, was also exposed to complaints that “it promised the lowest pre-sale price, but the mask sold in the live broadcast studio was cheaper than the pre-sale day”. At present, the number of collective complaints on black cat complaints has reached more than 2,000.
Can live broadcast e-commerce save e-commerce?
According to data from the National Bureau of Statistics, the monthly retail sales of online goods and services from July to September 2021 were RMB 1 trillion, RMB 1.01 trillion, and RMB 1.06 trillion, corresponding to year-on-year growth of 7.4%, 6.1%, and 9.3%, respectively. Compared with the same period last year, it has slowed down. This is the reality faced by e-commerce platforms.
However, despite the slowdown in the growth rate of the e-commerce market, the performance of live e-commerce is still outstanding. According to the research report of Northeast Securities, in the first half of 2021, the transaction volume of live e-commerce has exceeded 1.09 trillion, and it is highly certain that it will exceed 2 trillion for the whole year; Taobao, Kuaishou, and Douyin are the main carriers of live e-commerce, and platform transactions The amount has also achieved rapid development, and the contribution of live broadcast e-commerce to e-commerce sales has increased year by year.
Also in terms of data, this year’s “Double 11” live e-commerce is the core source of incremental increase. According to Star Chart data, during Double Eleven, the sales of live e-commerce platforms achieved 73.76 billion yuan. The top 3 live e-commerce platforms were Taobao Live, Kuaishou and Douyin. Taobao accounted for eight seats in the TOP10 live broadcast rooms, and Li Jiaqi and Li Jiaqi The transaction volume of Wei Ya’s live room exceeded 10 billion to maintain high growth, but the GMV of Kuaishou Simba fell 76% year-on-year.
However, consumers are expensive in the live broadcast room, which has triggered everyone to think about the business model of live broadcast e-commerce.
“Live e-commerce is largely a sales model that relies on low prices.” Alams, deputy director of the Policy and Legal Committee of the China Electronic Commerce Association, told reporters. From a development point of view, live e-commerce has grown from the soil of e-commerce. In the early stage of e-commerce development, low-price strategies were adopted, and live e-commerce continued this gene. For top anchors, there are low-priced good products introduced to fans, and fans are profiting. More and more people pay attention to anchors. It is a positive trend to negotiate with manufacturers to obtain low-priced products and continue to expand their influence. cycle.
In the view of Almaty, where is the innovation of live e-commerce is a topic worth discussing. Traditional e-commerce shopping can only look at pictures and recorded video displays, while live broadcast anchors bring more three-dimensional and realistic and substituting sense, and reduce Consumers choose the time and the content is attractive. For consumers, it is shopping as well as entertainment, and information can be communicated quickly and fully.
The innovative point of future think tanks defining live e-commerce is that it provides a product display: a discovery-based e-commerce that stimulates the potential needs of users. When users do not have clear shopping needs (such as when viewing short videos), the system accurately recommends the live room. The live broadcaster’s lively explanations and the intense and exciting atmosphere in the live broadcast room promoted consumers to complete the purchase of goods. Live broadcast e-commerce can meet the potential needs of consumers, reduce the decision-making cycle of consumers, and the sales conversion rate is significantly higher than that of traditional e-commerce (the return rate is also high).
From the development history of live e-commerce, we can also see that this kind of ecology is driven by the times. Although Taobao Live started in 2016 when it focused on selling goods rather than “shows”, Taobao Live achieved breakthrough growth in 2019, with the number of live broadcast accounts increasing by 100% year-on-year. In 2019, the two leading anchors of “Double 11” Wei Ya and Li Jiaqi achieved explosive growth. The epidemic has pushed it into an outbreak period. According to data from future think tanks, Taobao Live will achieve a GMV of 400 billion in 2020, a year-on-year increase of over 100%. After the explosive growth in 2020, Taobao Live has entered the stage of “compensating for shortcomings and growth boards”.
With the continuous development of live e-commerce, Almaty suggested that the previously promulgated e-commerce laws and online transaction management measures mainly focus on traditional e-commerce supervision and governance. These measures are actually also applicable to live e-commerce, as consumers’ rights and interests. When damaged, Taobao should stand up to protect the interests of consumers, such as return and exchange, price insurance, etc. “The e-commerce law clearly stipulates that platforms must help consumers resolve these disputes and cannot stand by. But in live e-commerce, we I don’t see too many platforms working effectively to protect consumers. If it doesn’t solve it, it’s hard to imagine how far live e-commerce can go.”
The China Consumers Association recommends that, focusing on fully protecting the legitimate rights and interests of consumers, continue to strengthen the supervision and control of violations of laws and regulations in e-commerce marketing and promotion, not only focusing on specific time points, but also strictly observing daily routines. Encourage and guide e-commerce platforms and related entities to squat and practice internal skills, find and build a more sincere and less routine business model, and care for more diverse and higher-quality consumer demands; through the “routine” marketing model ” “Self-revolution”, as well as the double improvement of product quality and service level, and the improvement of commercial sincerity and marketing credibility, will bring back the popularity of traffic and continue the stamina of development.
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