e-commerce platform’s 618 promotion is coming to an end this week. Live e-commerce is still a battleground between major platforms and listed companies during this year’s 618 promotion.
In addition to the three major e-commerce platforms Taotian, JD.com, and Pinduoduo, platforms such as Douyin, Kuaishou, Xiaohongshu, Meituan, and Ctrip have all increased their live broadcasts on 618 this year. The three major live broadcast e-commerce companies Yuanwang Technology , Oriental Selection, and Make a Friend have also further increased their resource investment, but the performance of each company has varied.
Although e-commerce platforms, leading anchors, and merchants all lamented that this year was "the most difficult 618 event in history," according to analysis by industry insiders, judging from the limited information and data, the growth of this year's 618 live broadcast sales has exceeded expectations, and the growth rate It should also exceed last year’s year-on-year growth rate.
Yuanwang Technology's "record" exceeds expectations
As a leading company in the live broadcast e-commerce industry, Yuanwang Technology's performance in each major promotion has always attracted attention from the outside world. The "618 Consumption Report" released by Yuanwang Technology on June 13 shows that as of the 13th, a total of 153 anchors participated in this year's 618 promotion, launching nearly 30,000 products, with a total live broadcast time of 6,054 hours.
html On May 21, the first live broadcast of Jia Nailiang, a star anchor of Yuanwang Technology, achieved a GMV of over 425 million yuan. It performed better than last year and completed double sales of last year's 618 full cycle in a single day. At the same time, Yuanwang Technology also expanded to the video account platform, and the GMV of Yang Zi and Huang Shengyi’s first live broadcast reached 10.96 million yuan. As of June 13, Yuanwang Technology’s live broadcast rooms have frequently seen performances exceeding 100 million yuan, and there have been more than a dozen performances exceeding 10 million yuan.Yuanwang Technology focuses on celebrity live broadcast rooms. In the field of live broadcast e-commerce, Yuanwang Technology is the live broadcast e-commerce company that has signed the most celebrities. It has signed contracts with more than 60 celebrities to cooperate in the live broadcast business.
In addition, brand special sessions and category special sessions are not only available in celebrity live broadcast rooms, but also for some brands. We hope that the agency’s expert anchors can go to their own store live broadcast rooms more often. During this year’s 618 period, more domestic brands entered the Yaowang live broadcast room and even held special events, covering almost all common consumer categories including beauty and skin care, personal care and home cleansing, clothing and home textiles, jewelry, etc.
Yuanwang Technology was formerly known as the A-share "No. 1 Women's Shoe Stock" on Saturday and was listed on the Shenzhen Stock Exchange in 2009. In 2019, the company entered the field of live streaming e-commerce by acquiring mcn institution Yaowang Network, and landed in the capital market as an A-share live streaming delivery company. In December 2022, upon approval by the Shenzhen Stock Exchange, the abbreviation of "Saturday" securities was changed to "Yuanwang Technology" from December 1, 2022, and the securities code "002291" remained unchanged.
However, the high-profile celebrity live broadcast room has not yet had a significant boosting effect on the performance of Yuanwang Technology. From 2021 to 2023, Yuanwang Technology's revenue scale will continue to expand, with revenue growth rates of 30.70%, 38.75%, and 22.48% respectively. During the same period, its net profit attributable to its parent company was a loss of 700 million yuan, a loss of 265 million yuan, and a loss of 1.050 billion yuan respectively.
Yuanwang Technology's latest financial report shows that in the first quarter of 2024, Yuanwang Technology's total revenue was 1.581 billion yuan, an increase of 43.44%, but the net profit attributable to the parent company was a loss of 94 million yuan, and the loss expanded by 147.37% year-on-year.
Due to three consecutive years of losses, the Shenzhen Stock Exchange issued an annual report inquiry letter on the performance of Yuanwang Technology in 2023. In view of the large loss of the company's net profit, large outflows of cash flow from operating activities, and serious year-on-year decline in gross profit margin of the Internet advertising business, whether There are cases where the inflated increase in accounts receivable is used to cover up the inflated income or transfer of benefits to related parties. Eight consecutive questions are issued.
"Make a Friend" doubled in growth
Dongfang Selection experienced a completely different 618 experience from Yuanwang Technology. As various negative information continued to appear in hot searches, Oriental Selection's stock price fell all the way during the 618 period this year. From May 20 to June 18, Oriental Selection's stock price fell by more than 24%. Among them, on June 3, Oriental Selection’s share price plummeted 9.92%, and its market value shrank by more than HK$1.8 billion in a single day. Oriental Selection’s latest total market value is HK$14.726 billion.
At the beginning of this year’s 618 promotion, Oriental Selection’s live broadcast style suddenly changed from knowledge-based delivery to “howling live broadcast”, which caused heated discussions in the market. Subsequently, Yu Minhong and Dong Yuhui, two super IPs of Oriental Selection, also made negative remarks one after another. Yu Minhong A live broadcast room said that "Oriental Selection is now in a mess." Dong Yuhui mentioned in a program that he is very resistant to selling things, and to this day he still does not enjoy his job as a product anchor. At the same time, he is very disgusted with being called an "Internet celebrity" and feels that This is not a compliment.
Currently, the Oriental Selection live broadcast room and the Youhui Peer live broadcast room are showing a trend of ebb and flow. According to data from the third-party platform Cicada Mama, in the past 90 days, the Dongfang Selection Douyin account has lost nearly 500,000 followers in the past three months, falling out of the top ten in the monthly list of delivery experts; the average sales volume of the live broadcast room in the past month 7.5 million to 10 million yuan.
During the same period, the "Walking with Hui" account led by Dong Yuhui steadily gained popularity and ranked third in the monthly list of goods delivery experts; the average sales volume of the live broadcast room in the past month was 10 million to 25 million yuan. In the first quarter of this year, the sales of Hehui Peer's live broadcast rooms were 889 million yuan, 450 million yuan, and 626 million yuan respectively; during the same period, the sales of Oriental Selection's live broadcast rooms were 557 million yuan, 228 million yuan, and 286 million yuan respectively.
Luo Yonghao made friends with everyone. During this year’s 618 period, the overall performance was in line with expectations. Cui Dongsheng, vice president of Make Friends, said in an interview on June 3 that as of now, 618 Make Friends this year has completed 90% of last year’s sales, and various data have roughly doubled. Internally, it is expected to increase next year. The Taobao live broadcast platform will still have relatively large growth.
make friends and will be "listed on the curve" in July 2023. On July 6, Century Sage Scientific, a Hong Kong-listed company, issued an announcement stating that the company changed its English and Chinese stock abbreviations from "centurysage" and "Century Sage Scientific" respectively. "befriendshldg" and "befriendshldg" are effective from 9:00 am on July 11, 2023.
On the evening of March 26, 2024, the annual report released by Make a Friend showed that the revenue of Make a Friend last year was 1.074 billion yuan, and the adjusted net profit was 180 million yuan, mainly due to the popularity of Make a Friend on Douyin, Taobao, JD.com, etc. The live broadcast delivery business deployed by the platform has brought about significant growth.
Top anchor sales growth slows down
"Is this year's 618 promotion difficult? I think it is, but I like to find breakthrough points in the 'difficulty' and push myself hard in the 'difficulty' , and let’s see what we can bring to users.” On May 16 this year, Li Jiaqi, the head anchor of Taobao Live, said at the US One “618” launch conference.
This year’s 618 promotion was particularly deserted, and the sales of top anchors’ live broadcasts have declined. Data from "Green Eyes Intelligence" shows that on the first day of Li Jiaqi's 618 pre-sale, the GMV (gross merchandise volume) of the beauty category in the live broadcast room exceeded 2.675 billion yuan, a 46% decrease from nearly 5 billion yuan in the same period last year.
Regarding the data of other leading anchors, Xin Xuan’s statistics show that Simba’s total sales for the first live broadcast of 618 this year were 1.427 billion yuan, while the total sales for the first live broadcast of 618 last year exceeded 1.6 billion yuan.
According to data from Cicada’s mother, during this year’s 618 promotion, Douyin’s head anchor Crazy Little Yang only ranked 17th on the list of goods experts. According to data from
Feigua, in the first live broadcast of June 18 this year on an e-commerce platform, the transaction volumes of head anchors Qi'er and Pan Yurun were 12.923 million yuan and 6.748 million yuan respectively, down 88.46% and 77% respectively from the same period last year.
In this regard, Zhuang Shuai, founder of Bailian Consulting, analyzed to a Securities Times reporter that on the one hand, major anchors are expanding businesses other than live streaming, such as Dong Yuhui and Xiao Yang Ge expanding cultural tourism business; on the other hand, because major anchors The anchor echelon has not been well cultivated in recent years, and cannot use multiple anchors to better improve performance. In addition, the growth rate of the entire live streaming e-commerce industry has slowed down this year, and major e-commerce platforms have increased their efforts to support merchants’ self-broadcasting. Combining multiple factors, the sales growth of major anchors will naturally slow down.
html On June 18, the Vice Chairman of the China Federation of Commerce’s Live Streaming E-commerce Working Committee’s unit, the Internet Economic Society E-Commerce Research Center, released the “2023 China Live Streaming E-commerce Market Data Report”, which showed that the penetration rate of live streaming e-commerce will reach 31.9% in 2023. , the growth rate was 26.08%, and the growth rate continued to decline.However, Zhuang Shuai pointed out that despite the overall decline in sales of many leading anchors and celebrity anchors during this year’s 618, judging from the limited information and data, the growth of this year’s 618 live broadcast sales still exceeded expectations. The growth rate should also exceed last year’s year-on-year growth rate.
“Last year, 618 Xiaohongshu Live Broadcast and JD.com’s purchasing and selling live broadcast did not increase their efforts to develop their business. This year’s 618 investment is significantly larger, so it is estimated that this year’s 618 live broadcast sales data will definitely be higher than last year’s full-year growth rate. " Zhuang Shuai analyzed.
Zhuang Shuai further said that this is because live streaming is still accepted by a wider range of users and is also a very good promotional tool. The diversity of live streaming is becoming more and more obvious, such as super anchors, celebrities, and CEOs. goods, JD purchasing and sales live broadcast, Xiaohongshu buyer live broadcast, Baidu digital person live broadcast, merchant self-broadcast and other methods.
Looking at the current domestic live broadcast e-commerce competition landscape, Zhuang Shuai said that currently live broadcast has basically become the standard feature of major e-commerce platforms. From the perspective of mcn institutions, due to different backgrounds and supply chain capabilities, anchor training mechanisms and types (offline shopping guides, celebrities, entrepreneurs, teachers) have led to differentiated development trends. Judging from the financial reports of listed companies, mcn institutions can improve overall profitability by providing marketing services to brands, providing commission income for customized products, developing private brands, and training services.
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