The “Low Price Competitiveness” of Direct Broadcast is Difficult to Maintain

Once again, Simba was sent to the limelight, but this time, it wasn’t hundreds of millions of dollars in sales.

Xin Youzhi, Simba, a fast-moving anchor with the image of “farmer’s son,” “simple businessman,” and “model for young people,” spent $50 million to invite seven stars – Jackie Chan, Wang Lee-Hung, Cecilia Cheung, Hu Hai-Quan, and Tang Ziqi – to his wedding on August 18 last year, after which he became a hot search sensation.

In early November, a netizen posted a video on his social media platform, saying that he bought the bird’s nest in a bowl of Minzhi in the Simba team’s live broadcast of “Shi Da Pretty”, which is sugar water. The product quality is questionable. In response, Simba and his disciple “Shi Da Pretty” showed the test reports of the bird’s nest sold in the live broadcast, and threatened to smear those who deliberately smear, including those with Blue V certification. We have to protect the rights of randomly re-posted marketing numbers, even if we lose everything.

But Team Simba’s “passion” only lasted a few days.

On November 19, after professional counterfeiter Wang Hai threw a “live bullet”, the Simba team’s attitude reversed, stating that “our own products have been sent for testing, the company is not involved in purchasing and sales practices, and if consumers want to return the product, then we will fully cooperate.

According to the test report released by Wang Hai, the product does not contain protein and amino acids, the test results of salivary acid content as high as 1.4 parts per million.

In response to this, Wang Hai said in Tencent News that the product is not a bird’s nest at all, but a drink, or to be precise, a sugar water. It is not a bird’s nest drink at all, but rather a beverage, a sugar solution, according to the test results.

How much salicylic acid in ready-to-eat bird’s nest is the proper level? In the meantime, the bird’s nest content in ready-to-eat bird’s nest is very low, so it depends on the businessman’s conscience. There is no uniform standard yet. But from the cost point of view, the higher the amount of bird’s nest, the more expensive it is. ”

There is no official conclusion as to whether or not the bird’s nest that Simba’s team brought on air is fake. However, this controversy is a side-effect of the loopholes in Simba’s live streaming selection.

In the ecological chain of live streaming, the merchant and MCN’s anchor are in a cooperative relationship. The merchant pays the MCN and the anchor endorsement, advertising, or cooperation fees, and the anchor promotes or live-streams the goods for the MCN. In this chain, product selection and quality control become the most important part of the live-streaming process.

“80% of the entire organization’s staff is concentrated in the commercialization team and the product selection team,” said an MCN agency staff member to Deep Web. Generally, the selection of professional broadcasters have to go through three culling and gatekeeping, firstly, the MCN product selection department screened products, including the origin, quality, suppliers, price and other layers of gatekeeping; secondly, the selected manufacturers or partners to mail samples to try (taste test), MCN Product selection department to check the quality (if there are agricultural products, but also to go to the field to investigate the supply and cold chain transportation conditions); finally, the anchor and supporting operations team and then trial and screening, and finally passed the product to enter the live”.

But from the underlying logic of live selling, there is a paradox between the quality of the selected products and the low price. In the live with goods, the head anchor to “the lowest price” to get goods, and then to The advantage of “below market price” is to attract more users’ attention and purchase.

“In order to lower the price, some anchors and even MCN organizations will relax the requirements on the selection, which is the reason for the high return rate of the live band”, said the above MCN staff.

Simba’s live broadcast rivers and lakes

Simba is a latecomer in Racer.

In 2018, he was still a passerby in Faster Hands, and he often appeared in the live broadcasts of several major netizens in the hope of grabbing the charts and attracting traffic. At that time, newcomers who wanted to increase their powder relied on wildly brushing gifts and grabbing the top of the charts in the live room of a net-red anchor in order to attract the attention of the popular anchor, who would name and even mike the charts to guide his own fans to pay attention to the other’s live room and help him increase his powder.

The first thing you need to do is to make sure that you’re not only a fan, but also a lover. But at that time, there were only a million fans, not a large base. The first thing you need to do is to take a look at the new product.

In October 2018, the “outdoor brother” Qi Tandao opened a live broadcast in Lijiang, Simba brushed more than 900,000 seconds list success, becoming the winner of the live final list. The “local hero” persona was established. The first thing you need to do is to take a look at the newest and most popular products. With the help of the two donkeys, Simba’s single live broadcast rose nearly 600,000 fans, and the 818 family is making its debut in the rivers and lakes of fast hands.

A huge wedding in 2019, Simba is not only famous in the fast hands, and even out of the circle. It’s not just a matter of time, it’s also a matter of time. But even with more than 47 million followers, Simba is still not a big brother in the fast hands. In terms of number of fans, SanDa is slightly higher than Simba.

The biggest success of Simba is that he has played the classic roles of master and son in the complex struggle of several big families in Racer. In the early stage of development of Racer, if you want to gain and maintain your position, you have to embrace a group of netizens. Most of the head anchors take the master-apprentice system, in time to develop a number of apprentices, to walk in the family form. The essence is the guild, but the family is more humane and the rivers and lakes.

In 2019, Simba received his first apprentice, Han Peiquan, in an official announcement of the “From Xin” concert. It’s not long before rumors spread that the two men broke up because of a disagreement.In October 2019, Simba live revealed that he had taken his first female apprentice, Eggy, and pulled her out of the picture to interact with him, and in just two minutes he had more than 300,000 fans, becoming the 818 family’s favored older sister.

In April this year, Egg Egg became famous with 480 million total sales. On the celebration, Egg cried and thanked Simba, “Always be your child”. At present, Simba has a number of netizens such as Dan Dan, Shi Da Pretty, Deer, Zhao Meng Che, and Xu Jie, who are responsible for different lines of clothing, makeup, and snacks.

Can low price still be the “core” competitiveness?

What makes an IP an IP is that it serves its fans well and maximizes their interests. This is true for all current head anchors. Viya is, and so is Li Jiaqi. The reason why the head anchors let their fans buy is because they can get the lowest price on the Internet, and the anchors’ Matthew effect is thus formed.

In contrast to the larger part of MCNs that only sell goods, Simba chooses a heavier operating model, and Simchoice belongs to the ODM (original design manufacturer) model, which started operating in 2017.

Yang Wei, CMO of Simchoice, has mentioned a concept called “folded world”, he believes that Simchoice is oriented to consumer groups that have not been fully explored by Jingdong, Taobao and other mainstream e-commerce platforms, the reason why Simchoice can incubate anchors is because users are attracted by the custom supply chain.

In order to penetrate the chain, XinXuan has launched platforms such as “XinXuan Gang” and “XinXuan Supply Chain”.

The “XinXuan Gang” is a supply platform for anchor selection; “XinXuan Supply Chain” is the entrance for XinXuan investment, which includes food and liquor, clothing and luggage, cosmetics and skin care, digital home appliances, household daily use.

According to the official website of Xinchosen Supply Chain, the brands that can be stationed in Xinchosen need to go through five steps: Intentional brand registration to apply for stationing; enterprise qualification audit and upload products; investment staff to contact; detailed docking and product selection feedback; scheduling promotion. At present, the brands of strategic cooperation include Feike, Haier, Panasonic, PepsiCo, etc. In terms of cooperation cost, the company will pay 30,000 RMB for the cooperation.

In terms of cost of cooperation, 30,000-250,000 link fees (different anchor fees) and 15%-30% commission are the two main components.

Up to now, Simba has 71.106 million fans in FMC, which is nearly 20 million more than Scattergold (51.185 million fans) and nearly 30 million more than Er Donkey (43.846 million fans). According to Simba’s fan distribution cities, some data show that more than 90% of its fans are from third- and fourth-tier cities, with an annual income of around 30,000 yuan.

According to Sanlian Life Weekly, he sold unsold honey for beekeepers in a “hometown farming” campaign between Simba and Quick Hands. Simba’s strategy for collecting honey in his hometown is “not to collect good honey, but to collect average quality,” and to bring the honey in Quick Hands. “Cheap” is a core competency, and he is characterized by the fact that he is more likely to drive sales of low-priced products than the average netizen.

“Just go for the cheap”, many Simba fans have said so. A 13-gram bottle of caviar extract eye cream is only 99 yuan, and you get two for the price of one, plus a bottle of shower gel. You should know that the market price of caviar extract is generally 2000 yuan / 50 ml or so mask is sold in boxes, but also give a free trim stick.

Many of Simba’s fans have discovered that the “super low cost” products Simba carries have one characteristic: the order time for each product is counted in seconds, counting down to 1, 2, 3, and the product! As soon as the link appeared, it was snatched up within a couple of minutes. “snatched empty on the shelves, along with product descriptions are also unable to view, which has also become a selling strategy of some anchors”, Wang Hai has publicly stated.

In this situation, whether a good price is a sale that overstretches one’s credit or a fraud that is suspected of counterfeiting, it becomes a question that has to be considered. To some extent, super-low prices and strict quality control are long and difficult to say for live-streamed goods, and for Simba as well.