After Double 11, Li Jiaqi and Pechoin trended on social media. One is a century-old Chinese brand, the other is the "Lipstick King." On Double 11, Pechoin, which was supposed to appear in Li Jiaqi's livestream, did not show up. "If they don't come, forget it. It's fine. Future cooperation with Pechoin will depend on fate," Li Jiaqi said to his assistant during the livestream. After the incident, Pechoin trended on Weibo. Similarly, not long ago, due to a pricing issue, influencer Xin Ba forced the head of a beer brand to apologize to fans on the spot. Although Xin Ba was suspended from livestreaming, netizens and fans applauded him. The reason is simple: on one side, the brand was untrustworthy; on the other, the influencer was protecting fans' interests. Brands, who are usually the "boss" (Party A), become the actual Party B in front of influencers with millions of fans.**** "To be in my livestream, you must offer the lowest price on the entire internet." This is the basic requirement that many top-tier influencers put forward to brands. Despite exorbitant livestream fees and the lowest prices on the internet, major brands still eagerly sign contracts with influencers. But is this a good business? -01-Whose side does the influencer's scale tip toward? Li Jiaqi, Viya, Niurou Ge, Xin Youzhi, and others are recognized as top sellers today, each with their own areas of expertise and millions of fans. Apparel, beauty, food, daily chemicals—almost all FMCG products appear in influencer livestreams, selling out in seconds or minutes, with sales reaching tens of thousands, millions, tens of millions, or even hundreds of millions. Records are constantly being broken. On one side, brands use this as a promotional gimmick; on the other, fans buy products at low prices. Influencers have become the balance point where brands and consumers reach a consensus in livestreams. But with the development of the livestream industry, this balance point seems to be breaking. Whichever side the scale tips toward, it is a "devastating" blow for the influencer. If they lean toward the brand, they lose fans; if they lean toward consumers, the brand is dissatisfied. However, for top influencers, their scale tends to favor fans more. Fan count is the bargaining chip in negotiations with brands. -02-What does influencer selling mean for brands? Some say the influencer economy is the most popular trend today, and influencer selling can help more consumers learn about products; others say it is just short-lived happiness and overdraws the brand. So, what does influencer selling mean for brands? Pro viewpoint: Influencer selling promotes brand communication 1. Super selling power Influencers with millions of fans have undeniable selling power. This Double 11, Tsingtao Beer cooperated with Viya. In one livestream during the pre-sale period, they set a record of selling over 20,000 cases of Tsingtao Beer Classic series in 5 minutes, with transaction volume exceeding 16 times that of last year's Double 11 pre-sale. Influencers have fans; fans mean traffic; traffic brings sales. More importantly, the effect of livestreaming is immediately visible, providing instant feedback on consumer recognition of the brand. 2. High-density exposure Whether for top-tier or small and medium-sized brands, an influencer livestream not only brings considerable sales but also high-density exposure, allowing millions of consumers to recognize the brand and see the product in a short time, some of whom will place orders. In livestreams with different styles, fans inadvertently receive brand cultivation. Moreover, the exposure from a livestream has continuity. After the livestream ends, brands can use the sales figures as a topic for secondary communication. In a sense, you pay once and enjoy twice. Why not? 3. Reflection of brand strength Li Jiaqi sold 15,000 lipsticks in 15 seconds; Viya achieved 150 million yuan in transactions in one livestream. The selling power of an influencer determines the amount brands invest. Being able to place your product in a top influencer's livestream costs no less than a CCTV advertisement in the past. Therefore, influencer selling has become a reflection of brand strength. Con viewpoint: Using price to exchange for sales harms the brand 1. The lowest price on the internet means no profit for brands "Today, this product is the lowest on the entire internet here" is the most common phrase in top influencer livestreams, and it brings huge sales. Of course, for brands, the lowest price on the internet is the primary condition for entering a livestream. In livestreams, the brand's product price must be lower than offline channel prices, even lower than e-commerce platforms. In this view, low prices do attract a large number of consumers to order, because fans position livestreams as a way to buy desired products at below-market prices. However, the lowest price on the internet means lower profits for brands, plus high livestream fees; a single livestream may not make money for the brand, or even lose money. But losing money to gain publicity is something brands have to do. 2. Hidden "choose one of two" kidnaps brands The lowest price on the internet means brands can only choose one influencer to livestream, putting all eggs in one basket. For brands, this carries certain risks. Any mistake during the livestream—the influencer can just apologize and be forgiven by fans, but the brand may be labeled as selling fake goods or being a scammer. The "choose one of two" between e-commerce platforms has already attracted widespread attention, but in influencer livestreams, choosing one of two is a problem brands currently have to face. 3. Pushing brands into public opinion storms Whether it's Pechoin standing up Li Jiaqi, or a beer brand changing prices at the last minute, or a non-stick pan sticking, we won't discuss who is right or wrong, but looking at the whole situation, brands are more affected by public opinion than ordinary advertising. Influencer livestreams have social attributes, and influencers are KOLs trusted by consumers. Once a problem occurs, the tide of public opinion tends to favor the brand. Both viewpoints have their reasons; the pro side stands in the present, while the con side stands in the future. In fact, for brands, influencer selling is indeed one of the most popular marketing methods today. As long as your product has these characteristics: targeted at young consumers, high cost-performance, in the growth stage, or novel and unique, you can try influencer selling to create a hit product. But in my view, for brands, influencer livestreaming is not a good business, because the way of brutally harvesting traffic and exchanging low prices for sales is not a long-term solution. It does little to ensure brand profits or enhance product competitiveness. Whether for top-tier or small and medium-sized brands, the hit products bought with huge sums do not promote long-term brand development. Moreover, popular influencers "kidnap" brands with their fan counts, using "I must be the lowest on the internet" to coerce brands, which also harms them. In addition, the quality of current influencers and their operation teams varies greatly, and both the professionalism of influencers and the product selection ability of teams need continuous improvement. New Distribution's viewpoint: Compared with advertising, the purpose of influencer selling is not brand communication but product sales. Attracting consumers with low prices is not a good thing for brands. Influencer selling uses traffic to overdraw the brand's premium but cannot increase consumer repurchase rates. Because in consumers' eyes, influencer selling equals low-price promotion; consumers care about price rather than the product, let alone brand loyalty. It is no exaggeration to say that influencer selling is a process where influencers overdraw brands to attract fans. As internet thinking penetrates brands, using the huge traffic and exposure of the internet to blindly pursue "short, flat, and fast" has become a process many brands pursue. For brands, it is beautiful in the short term but not a long-term solution. As a brand, you should still focus on the product. In the mobile internet era, good products carry their own traffic, and good brands are actively shared by consumers. Do your own thing well and don't be obsessed with influencer selling—that is the real way out for brands. Tips will be paid 400-2000 yuan once adopted.