Livestream e-commerce, another trend that manufacturers are flocking to after the home delivery business model, seems to be ushering in a new spring. First-tier brands such as Coca-Cola, Xiangpiaopiao, and Yili, and even senior executives, have joined the fray, standing in livestream rooms to hawk their products. On one hand, this can be understood as manufacturers under sales pressure due to the pandemic, facing high inventory and the need to match previous performance, are eager to try any opportunity. On the other hand, for manufacturers focused on online marketing channels, this trend has been evident, and the pandemic has accelerated the process. So, is this new marketing model a passing fad or a real opportunity for manufacturers? The underlying logic of business is to serve consumers, continuously meeting their growing and diverse demands for material life and cultural quality. Therefore, the starting point for exploring any business model should be the consumer, analyzing whether it truly solves a common pain point, which is the essence of innovation. Let's compare livestream e-commerce with traditional business models to see if it truly reaches consumers' inner desires. -01- Four Attributes: Solving Pain Points, Touching Hearts Consumers initially spent time and transportation costs to shop at physical stores, making purchase decisions based on recommendations from salespeople or store owners, combined with their brand awareness. Later, online shopping emerged, solving the pain point of travel, allowing consumers to buy from home by browsing product images and reviews. However, new pain points arose: more homogeneous products, more time spent on selection, discrepancies between photos and actual products, lack of real-time communication, and distrust of reviews. Livestream e-commerce first solves the pain point of product selection. The person in the livestream room is someone consumers trust; they have done research, trials, evaluations, and price negotiations for you. They often introduce products and share their usage experiences, essentially acting as KOLs, clearing cognitive barriers for quick purchases. Second, it brings the fun of offline shopping to online consumers (offline shopping scenarios online). The livestream room is like a specialty store in a mall, with simple decorations to create atmosphere. When you enter, you find many people, avoiding the monotony of browsing alone, and everyone can chat and interact. Livestream influencers are dressed up, sitting in the room, greeting and interacting with customers. Some even set up in production bases or fields, giving consumers a more direct and authentic experience. Third, it reduces awkwardness and adds fun to interactions. Online scenarios avoid the embarrassment of leaving a store or meeting strangers. Interactions are made fun with emojis and props. Consumers can express their individuality, such as sending gifts to the host or connecting via voice to share unique opinions. Fourth, it satisfies inner desires provided by KOLs. The person in the room might be an internet celebrity, a star, or a merchant recommended by friends. Viewers stay because they believe they can experience the KOL's humor, sincerity, professionalism, sharing of life quality, or enthusiasm for bargaining for fans. Additionally, there are other attributes, such as livestream influencers being more familiar with current consumer communication habits, making consumers feel resonance, and the pandemic has made homebound consumers experience the fun of this model more. Thus, livestream e-commerce has developed rapidly, carrying consumers' urgent need for upgraded shopping experiences. -02- Follow the Trend, Seize the Key, Avoid Detours The popularity of livestream e-commerce aligns with the general trend of consumption development. For manufacturers affected by the pandemic and seeking sales opportunities, this deserves attention. Let's share some data from Guojin Securities Research Institute to help manufacturers understand the fit between livestream e-commerce and their products. In 2019, Taobao Livestream's Double 11 transaction scale reached 20 billion yuan, with over 10 billion-yuan livestream rooms and over 100 million-yuan rooms. The annual livestream scale exceeded 100 billion yuan. Products sold via livestream have expanded from beauty and fashion to fast-moving consumer goods and durable goods, covering almost all categories. For example, on Kuaishou, the approximate category shares are: food and beverages (44%), facial care (25%), household daily necessities (10%), oral care (5%), and cosmetics (4%). However, on Douyin, the shares differ: household daily necessities (26%), women's clothing (18%), food and beverages (10%), 3C digital (10%), and cosmetics (8%). In terms of users, second-tier and quasi-first-tier cities dominate. On Douyin and Kuaishou, the 25-35 age group accounts for 47.7% and 48.1% respectively. The post-90s are the main consumers in livestream rooms, with post-00s emerging. These groups have strong purchase intent and purchasing power, contributing significantly to livestream e-commerce. In terms of gender, there is no significant difference. Given that product positioning and category have livestream advantages, manufacturers should grasp several key points when starting livestream e-commerce. 1. Manufacturer Collaboration, Not Detached from Brand Currently, over 80% of livestream e-commerce is done by merchants themselves, with only a few influencers performing well. Therefore, the success of top influencers does not reflect the overall industry level, especially during this explosive period. Many merchants prioritize selling, possibly exaggerating product efficacy or quality, lacking long-term planning. So, when entering this model, it is recommended that brand owners guide and supervise lower-level merchants from a long-term brand perspective, control the scale, tell brand stories well, introduce products professionally, cultivate fans who truly identify with the product, communicate sincerely, and let the product penetrate consumers' minds. 2. Match Suitable Livestream Hosts, Don't Obsess Over Influencers Many manufacturers see the popularity of Viya and Li Jiaqi's livestream rooms and immediately want to put their products in, hoping for instant bestsellers. It should be noted that to get into such top influencers' rooms, you need to pay significant costs, including the lowest price on the entire network, plus hefty slot fees or commissions, but your product may only get less than ten minutes of airtime. Also consider whether the influencer's fans align with your product positioning. Just like choosing a brand spokesperson, the spokesperson's image, age, hobbies, etc., should resonate with your product and fans. For example, if your target audience is around 25 years old, into online games and sports, finding a KOL with influence in gaming or basketball circles would be more effective than spending money on Viya or Li Jiaqi. KOLs in niche segments are definitely better for brand communication and accumulating fans with true product loyalty. 3. Focus on Creating Consumption Scenarios, Don't Blindly Rely on Price Whether online or offline, reaching consumers who will repurchase long-term cannot be separated from scenario marketing, even in livestream rooms. Manufacturers who understand this will perform a life segment, preset a consumption scenario, or have the host explain unique preparation methods or how to pair with other products to showcase quality, truly aiming to present product selling points. Of course, cost-effectiveness is a feature of livestream e-commerce, but you must not repeatedly emphasize low price as a product feature. Your product cannot sustain low prices, and such consumers will not become loyal brand users. When competitors offer lower prices, they will switch immediately. 4. Reliable Product Delivery and After-Sales Service Livestream e-commerce is a marketing model developed from online shopping, and consumers have natural concerns about product quality and after-sales service. Despite the lively promotion in the livestream room and some trust in the influencer, whether the product is genuine and whether after-sales service is good are crucial for the product to enter consumers' minds. Manufacturers should strictly control quality, find reliable partners for express packaging and product distribution, so that consumers who are full of expectations feel the surprise of value for money when the product arrives. Provide thoughtful after-sales service, promptly ask about consumers' feelings after delivery, and convey care consistent with product quality. These will quickly increase product-consumer stickiness and stimulate more repurchase demand. 5. Complete Supply Chain System, Preferably with Official Stores on Major Platforms Consumers who choose livestream e-commerce platforms have higher requirements for cost-effectiveness. Manufacturers should evaluate and optimize their backend supply chain in advance, not just pursue sales volume at the expense of profits. Generally, distributors or wholesale customers who want to do livestream e-commerce often lack price advantages. If they want to work with bigger influencers, the price system may not support it. Brand owners can first open official stores on Taobao and JD.com, shorten the channel chain, integrate some channel marketing expenses, and set aside some funds for livestream e-commerce. It is a good way to lead and do some influential, higher-cost influencer livestreams. Another approach is for brand owners to approve certain subsidies to capable distributors in various regions, allowing them to choose cost-effective regional influencers suitable for the brand positioning. The channel profits saved by delivering products directly to consumers can cover promotion, influencer commissions, and distribution costs. 6. Set Price Bottom Lines, Protect the Brand Large promotional efforts are not good for first-tier brands; they hurt both the brand and the price. Traditional channel price promotions of 5-10 yuan can lead many wholesale customers to hoard goods for profit. Therefore, the quantity, price, and method of promotions in livestream e-commerce should be handled cautiously. Here are some suggestions to try: First, provide high-quality gifts instead of price promotions, such as limited-edition phone cases, keychains, or cups with brand logos. Second, use "old brings new" multi-product package deals. Mature brands have transparent prices; by bundling new products with a package promotional price, you can strengthen brand association and weaken price discounts. Third, develop special packaging for online sales to quickly distinguish online and offline sources. Many brand owners are already doing this: online uses 112 packaging, offline uses 124. Price promotions cannot build a true brand. Manufacturers should work together to improve product quality, brand communication, and enhance their leadership in niche categories. -03- Intensive Cultivation, Up-Down Linkage, Adding Splendor Continuously plant seeds so that livestream sales can rely more on the brand. In fact, to achieve better brand communication and sales through livestream e-commerce, much preparation is needed. In industry jargon, the complete process of "planting grass, nurturing grass, and pulling grass" is indispensable. First is "planting grass": merchants should use images, texts, and short videos to create buzz on high-traffic livestream platform sections, cultivate atmosphere, and attract traffic. Second is "nurturing grass": merchants continuously use interesting and informative short videos to drive brand attention, attract followers, and convert them. Finally, "pulling grass": harvest the consumer group that was previously seeded through content via livestream. By influencing consumers step by step in a planned and rhythmic way, when the product appears in the livestream room, it will evoke stronger brand resonance. Fully link online and offline, comprehensively connect around consumers' life trajectories. Product marketing should revolve around consumers' life trajectories. For example, for a sports drink, consumers should see the product livestream when playing on their phones, see impressive displays and promotional information at convenience stores when walking on the streets, and see it in freezers when entering internet cafes. How to achieve marketing integration? Here are some suggestions for manufacturers: First, unify and repeatedly emphasize the brand online and offline. Offline slogans and promotional posters can be used as large backgrounds in livestream rooms, clearly reflecting core brand communication elements. Livestream influencers can wear the same promotional uniforms as offline product promoters, so when consumers see similar posters and uniforms offline, they feel a sense of familiarity—consistent colors, unchanged quality. After setting the livestream time online, create exquisite promotional materials like Yiqiuxiu or other promotional items, and spread them widely among frontline sales personnel to gather popularity, influence customers at all levels, and let everyone feel the brand charm and have more confidence in product operations. Conduct extensive pre-livestream warm-up and post-livestream activity sharing in channels that match the influencer's audience. For example, if an e-sports influencer does a livestream, all internet cafe channels should prepare roll-up banners or similar promotions in advance, or launch activities like exchanging a screenshot of the livestream room for internet cafe time. Deeply mine retail big data. Livestream e-commerce reaches consumers directly. Statistical analysis of consumer address information can help manufacturers better understand product consumption distribution. Which cities, which communities, what patterns in SKU preferences, whether these are consistent with offline sales distribution, what common characteristics consumers in these areas have, and whether they align with the product's target consumer group. After finding these patterns, manufacturers can more specifically link online and offline, set more precise sales strategies, such as expanding display positions for main SKUs at offline terminals based on consumption preferences. If unique preparation methods with other products were introduced in livestreams, offline bundle sales with those products can be implemented, with concise promotional messaging. Livestream e-commerce, boosted by the pandemic, is in a rapid development and expansion period. Industry norms are not yet perfect, and there are still tricks and chaos. Manufacturers should clearly recognize that maintaining an attitude of attention and active experimentation with any new thing is absolutely correct; otherwise, they will fall behind the times, and the most terrible thing is to fall behind their consumers. In this process, it is important to experiment rationally, fully reflect on positioning, choose scenarios well, set bottom lines, avoid blind advancement, observe mistakes, analyze consumer habits and action trajectories, seek linkage between channels, balance strategies, not deviate from the essence of marketing, and truly build their own core competitiveness.