In 2020, the sudden COVID-19 epidemic completely disrupted the production and operation of enterprises, and also brought the new business model of live streaming to the forefront. This sales myth driven by the platform and created by top anchors represented by Wei Ya and Li Jiaqi, together with major brands, small merchants, entrepreneurs, etc., has further ignited the enthusiasm for live shopping. At the same time, negative information such as pit fees, sales splitting, fake orders, buying fans, buying views, and high return rates have also continued to remain high. Is live streaming a flash in the pan, or is it going to be a long-term future? How should companies position themselves? We need to clear up the clouds and see the moon.
To maximize the commercial effects of live broadcasts or online and offline omni-channels, companies need to accelerate digital transformation.
Change the “people and goods market” and create an immersive experience consumption model
In the current era of consumption upgrading, Against this background, the consumer market is gradually getting younger, moving from scale to a new era of personalized consumption. The salient feature is that consumers shift from “quality” consumption to emotional consumption, from seeking good-quality brand goods to more Pay attention to emotional experience, and perceive the emotional value of the product better than the functional value. Especially as Generation Z, born between 1995 and 2009, has gradually become the main force of consumption, live streaming e-commerce has further ushered in a period of rapid development because it is more in line with their consumption habits.
Live streaming has changed the traditional relationship between people, goods and places. Enterprises need to understand the far-reaching impact of the live streaming format – the traditional dialogue between people and things has now transformed into the interaction between people. . With the continuous development of information technologies such as 5G, VR/AR, holographic projection, and digital twins, this change in conversation methods will penetrate from the consumer side to the manufacturing side. Consumers will be able to see and even participate in the design of clothing products. In various real-time scenarios of production, new business formats and models such as virtual design, virtual fitting, and transparent factories will continue to emerge, and shopping scenes will move from situational consumption to immersive experience consumption.
Fundamentally speaking, live broadcast is just a form, and bringing goods is the purpose. As Gree Dong Mingzhu said: “Live streaming is a change in form, and it will eventually return to manufacturing, that is, the product itself. Without good products, no matter how it is expressed, it will eventually lose its foundation.” Live streaming brings goods, especially Internet experts Bringing goods makes full use of the network effect of experts and the impulse consumption formed by fans’ emotions, which to a large extent solves the problem of consumers’ initial purchase and allows enterprises to establish the first connection with consumers. However, whether users make impulse purchases after Returns, whether to repurchase, and whether it translates into brand stickiness are fundamentally determined by comprehensive factors such as product quality, style, and material.
Quality is the foundation of the brand, and products are responsible for traffic. If a clothing brand enterprise relies unilaterally on low prices, discounts and other marketing methods to obtain orders, and ignores or deliberately reduces the quality of its products, it may gain brilliant sales data in the short term, but in the long run, the marketing method of drinking poison to quench thirst will be harmful but not beneficial.
Establish private domain traffic and maintain the initiative to reach consumers
When clothing brands lay out their online businesses, many It will be differentiated from physical stores and operated in a dislocated manner. Through years of practice, they have realized that online and offline channels need to be truly integrated and unified to maximize benefits.
It is worth noting that with the development so far, from the first and second tiers to the third and fourth tiers and even the township market, the road for clothing companies to reach consumers is being occupied by various platforms. While these platforms build quick access channels for businesses and consumers, they also create invisible “gates.” As each platform competes for territory, continues to penetrate the consumer market, and continues to accumulate consumer data, these platforms will eventually achieve “traffic monopoly.” Those clothing companies that relied solely on the platform’s public domain traffic and did not establish a private domain traffic pool found that there were already “toll stations” on all the “sea, land and air” roads leading from the company to consumers.
Having the initiative to directly reach consumers is the lifeline of an enterprise. This requires enterprises to elevate the construction of private domain traffic to the level of business strategy and use digital tools to organize and plan e-commerce and live broadcasting. , Weibo, official accounts, etc. to divert and precipitate public domain traffic, establish a unified data center, form user portraits through data mining, and actively explore the basis of “mini program + live broadcast + community + private domain traffic + time + geography” The private domain operation model of “location” realizes the two-wheel drive of “public domain + private domain” and firmly holds the initiative of development in its own hands.
What needs attention is that since the emergence of e-commerce, e-commerce and entities seem to have become enemies. The fundamental reason is that companies have not truly integrated physical stores and e-commerce channels. Enterprises should examine channel relationships from an ecological perspective and reposition the relationship between physical stores and e-commerce channels.
The function of the physical store is to develop from a product sales place to a life scene, display experience, and emotional exchange. It can further be positioned as a distributed micro-warehouse logistics node for brand enterprises. The company’s e-commerce department should adjust its functions that are independent of offline operation assessment to marketing support functions. By establishing a management system at the overall marketing level of the company, it should design a system that shares benefits with dealers’ physical stores.The partnership uses digital technology to achieve accurate identification and tracing of online traffic and orders. The orders are fed back to the physical stores in the corresponding regions, and the local physical stores provide delivery and service. This move will greatly improve logistics efficiency and consumer experience, and reshape the brand value system and the company’s profit model.
For example, the live broadcast sales record set by Dong Mingzhu in the home appliance industry was triggered by the resonance of the traffic obtained by dealers offline and the traffic of the live broadcast platform at the same frequency. Gree uses the second microcode to identify which dealer brings the traffic, and will also allocate the order to the dealer in the corresponding area based on the user’s delivery address. The delivery of goods this time is not only a response to the current hot internet celebrity economy, but also an exploration and practice of the company’s online and offline omni-channel operations.
Adapt to the digital economy and complete the transformation of organizational methods
Digitalization is bringing transformation and change to the global fashion industry and business. To maximize the commercial effects of live broadcasts or online and offline omni-channels, enterprises need to accelerate their digital transformation, make full use of new generation information technologies such as cloud computing, big data, and artificial intelligence, and promote their existing CRM, purchase, sales, and inventory, The integration of financial, warehousing, logistics, supply chain and other systems enables the interconnection of various systems, building a data middle platform, seamless connection of online and offline data, opening up the “intestinal obstruction” of corporate data, establishing data assets, generating user portraits, and real-time Capture consumers’ behavioral changes and consumption needs to provide strong technical support for enterprises’ precise marketing, product scheduling, design and production. At the same time, we make full use of data to continuously improve and improve products and user experience, and realize the transformation from the mass-produced M2C model to the user-customized C2M model in the manufacturing process.
At the same time, enterprises should proactively adjust their organizational structure to adapt to the development trend of the digital economy, redefine the relationship between enterprises, dealers, and suppliers from an ecological perspective, and transform the original enterprise-centered, The pyramid-shaped centralized management model is adjusted to a user-centered, distributed value sharing model.
Currently, the industrial economy is developing in the direction of digitalization, networking, and intelligence, and the development methods and boundaries of the clothing industry are being broken. Facing the impact of the fourth industrial revolution, the top priority for business managers is to examine whether they and their organizations have the ability to operate quickly and flexibly. The core of adapting to all these changes is the evolution of the thinking of business managers and the resulting changes. Changes in organizational styles. </p
