Title: Domestic Brands Engage in Joint Marketing Strategy, Launching Affordable 79 Yuan Packages through Live Broadcasts
Subtitle: As the “79 yuan package” gains popularity, domestic brands embrace the trend and unite for mutual sales and brand linkage.
Date: September 15, 2022
Source: The Paper
Author: Shao Bingyan
A new trend in the realm of domestic brands has emerged as many well-established Chinese brands have joined forces to offer affordable 79 yuan packages through live broadcast platforms. This interactive marketing strategy was triggered by an eyebrow pencil controversy and has gained significant traction among consumers.
The eyebrow pencil controversy was sparked by online anchor Li Jiaqi during a live broadcast on September 10, where the pricing of Huaxizi’s “79 yuan for an eyebrow pencil” was debated. This incident prompted other domestic brands to actively participate in low-profile, affordable marketing strategies, generating considerable buzz and visibility.
Reporters from The Paper conducted an incomplete review and found that numerous domestic brands, including Bee Flower, Hongxing Erke, Tianfu Cola, Yumeijing, and Lotus MSG, have recently engaged in brand linkage and product mutual sales through live broadcasts. Some brands even launched their own “79 yuan” packages to capitalize on the trend. Furthermore, the chairpersons of Tianfu Cola, Yu Meijing, and other brands also interacted with netizens during live broadcasts.
Fenghua, a renowned Shanghai care brand, was the first to seize the opportunity by offering three 79 yuan care packages overnight on the live streaming platform. They released a video stating that Fenghua would not increase prices, irrespective of wage increments. Fenghua also partnered with Hongxing Erke, a sportswear brand, for collaborative marketing.
This strategic move led to a significant increase in Fenghua’s live broadcast sales. On September 11, Fenghua witnessed a surge in Douyin fans, with 6,108 new followers and an additional 163,000 Douyin Live followers. This growth continued, with Douyin fans increasing by 77,100 on the 12th, 485,700 on the 13th, and 497,300 on the 14th. Fenghua’s sales on Douyin exceeded 25 million yuan, with over 500,000 orders on the night of September 11.
Following Fenghua’s success, other domestic brands, including Lianmai, followed suit by launching various products at reduced prices during live broadcasts. Hongxing Erke, in particular, introduced a range of shoes priced at 79 yuan and collaborated with brands such as Weilong Spicy Tiao, Laoganma, Fuling Mustard, White Rabbit, Wahaha, and Huiyuan Juice. These efforts led to a significant increase in sales for Hongxing Erke’s Douyin live broadcasts.
Yu Meijing, a domestic children’s cream brand, also joined the wave of group marketing. They fully entered major platforms overnight and gained over 670,000 fans on Douyin. Tianfu Cola also experienced a surge in popularity, with more than 250,000 netizens flocking to their live broadcast room to interact, discuss topics, share the live broadcast, and make purchases. Tianfu Cola’s online single-store sales increased by 80 times year-on-year.
Responding to these developments, Yu Jian, the general manager of Kantar Worldpanel Greater China, noted that certain domestic brands have successfully embraced change and experienced sales growth. However, he emphasized that sustainable brand success requires comprehensive brand building, research and development, and product upgrades. While affordable prices play a role in marketing strategies, technology, supply chain management, and long-term brand building are also critical factors.
The emergence of new domestic brands in recent years has been a significant economic phenomenon. These brands have impressed consumers through innovative product categories and connection methods aligned with the new generation’s aesthetics. To ensure long-term development, future domestic brands must transform marketing creativity into research and development creativity, offer quality products, convey brand sincerity, and build strong brand moats.
As domestic brands continue to leverage joint marketing strategies and affordable pricing, it remains to be seen whether this trend will sustain their growth and allow them to reclaim their former glory in the highly competitive market.
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