Why did Dong Mingzhu change her attitude and dive into the live streaming? How did she achieve extraordinary sales value? Where will the traditional enterprise go in the future?
1. “Miss Dong’s” eye-catching transcript
1.2 From 0.23 million to 10.2 billion, step by step improvements
1.2.1 Increase in low-priced commodities, contributing 90% of sales
In GREE’s second live streaming on May 10, low-cost appliances within 2,000 RMB accounted for more than 70% of 24 selected products. The sales data shows that products with an average price of about 2,000 RMB have taken the top 5 sellers, which accounts for 90% of the total sales. Thus, parity goods are more suitable for the sales model of live streaming.
1.2.2 Profit compromise + official subsidies, creating high cost-effectiveness
1.2.3 Head-KOLs participation, soaring professionalism
In the following four live streaming sessions, Dong Mingzhu invited the top-ranked KOLs on each platform, and each KOL has more than 10 million fans. Especially in the multi-platform live streaming on June 1st, six head KOLs were invited to take turns for GREE’s live streaming.
On the one hand, the KOLs’ participation will bring traffics from their own channels. On the other hand, head KOLs are experienced and good at controlling the live streaming rhythm, mobilizing consumer’s shopping desire, and making the live streaming atmosphere more relaxed and pleasant.
2. How does GREE achieve digital transformation through live streaming?
In addition, we can tell from the five live streaming sessions of GREE that the proportion of brand public relations is prominent. GREE has always emphasized its responsibility to dealers, to Chinese society, and to the rise of Chinese manufacturing. Besides sales performance, GREE also hopes to create a long-term brand image through live streaming, spread more value, and stand at high brand value.
2.2 Pricing strategy negotiation
To solve this problem, GREE conducted specific strategies on live streaming selection and subsidies. In addition to the low-price product selection strategy, there is also a subsidy policy negotiated with live streaming platforms, which has led to ultra-low pricing in the live streaming room. So how did GREE save offline sales while guaranteeing online sales?
2.3 Traffic distribution & operation
At the same time, GREE has also reconstructed the traceability and sharing of new retail offline traffic for dealers, turned traditional dealer shops into new-retail experience and service centers, and turned services into online products, bringing double benefits to the dealers.
In this way, the online and offline price difference conflicts have been resolved to a certain extent.
2.4 Sales channel digitalization
GREE started cooperated with its 30,000 offline stores on June 1st to boost live streaming sales. To drive traffic into online live streaming destination from online advertising and offline sales 1 on 1 invitation. Based on the tracking code of the orders, the source of the consumers can be tracked and GREE will rebate accordingly.
So that dealers save the workforce and offline activities costs, compared to the previous brand linkage promotion.
The dealers’ cost becomes minimal if it only serves as a brand’s service and product experience terminal. Although the profit of a single product decreases, the sales volume has dramatically increased, which is instead a profitable deal.
It is worth mentioning that GREE can realize the QR code traceability and know which dealer the transaction consumer came from. At the same time, GREE has created a strict offline system to devide the live streaming orders by region.
3. What does live streaming mean to enterprises?
3.1 Whether “Miss Dong’s Mini-Shop” is an ideal business model?
It is worth mentioning that the WeChat mini-program is an online sales channel operated by brands themselves, and it will have more autonomy over the acquisition and processing of background data than traditional e-commerce platforms. If you are interested in mini-program, welcome to follow us, we will produce an article detailing the WeChat mini-program operation in the future.
The advantage of “Miss Dong’s Mini-Shop” is that it can extend the customer acquisition radius of offline stores, which has alleviated the conflict between online and offline. To some extent, the self-built e-commerce platform allows offline dealers to share e-commerce development dividends instead of conflicting with the brands’ online centralized e-commerce center.
a. Enterprises are more familiar with markets and products, and brands have more autonomy
b. The brands do not need to have any concerns about authenticity
c. Shorten the distance between enterprises and consumers, reduce the cost incurred by middlemen
d. A virtuous circle: brands drive products sales, products promote the brand image
In general, after solving the middlemen markup, the traditional longer-term problem will be a strategic upgrade for the new industry cycle. If it can complete the improvement of offline efficiency, it will also make the company more actively embrace the online sales channel. Through live streaming and self-built e-commerce platforms, it is a good start for online and offline integration of enterprises.
If you are a traditional business, seeking for the breakthrough in digitalization, your own brand live streaming is worth exploring. If you need more insights about Chinese e-commerce industry or services, please contact us and follow our latest updates.