The battle lines during Double 11 are getting longer and longer, the promotion methods are getting harder to understand, and conflicts are happening earlier.
This year’s commercial war was launched by JD.com. After blaming netizens for the price of Hua Xizi eyebrow pencil, Li Jiaqi’s live broadcast room got into trouble again.
Last time, a new monetary measurement unit "Huaxi Coin" was born. This time, "lowest price on the entire network" should be re-understood.
Who didn’t tell the truth in the “simple business war” on Double 11?
The three protagonists on stage are the home appliance brand Hai's, JD.com's sales staff, and Li Jiaqi's live broadcast room.
Now I finally understand why the price of Hua Xizi could not be lowered before.
On October 24, JD.com’s sales staff posted in Moments, claiming to have received a letter from Hai’s lawyer because the price of a Hai’s oven in JD.com’s self-operated store was lower than that in Li Jiaqi’s live broadcast room, which violated the “reserve price” agreement between the brand and Li Jiaqi. protocol".
The salesperson said he was "very surprised" and claimed that the price was low because JD.com provided subsidies out of its own pocket. The "pseudo-lowest price on the entire network" offered by the leading anchor was suspected of being a "choose-one", which was not good for the brand or consumers.
"Choose one" is also called an exclusive deal, which requires brands to choose between themselves and other channels.
The question arises, is it Li Jiaqi who arbitrarily locks in the "lowest price" in the live broadcast room, or is JD.com just talking about its own purchase and sales? Arguments from all sides emerged and things began to get complicated.
Li Jiaqi's company, Mei ONE, responded that this wave was "purely a lie". It did not sign a so-called "reserve price agreement" and never asked the brand to make any "choose-one". The pricing power of the products in Li Jiaqi's live broadcast room lies with the brand.
Hai's also issued a statement on its official Weibo. The rhetoric seemed closer to Li Jiaqi's: the brand had not signed a "lower price agreement" and the lowest sales price of ovens was "equal across the entire network." Instead, JD.com purchased and sold without authorization lowering the price. For ovens sold at low prices, the loss of each oven is borne by the brand itself and is not subsidized by the JD platform.
After the "debaters" from the three parties expressed their opinions, everyone took sides.
Some people criticize JD.com for purchasing and selling "Green Tea Speech". The relationship between Li Jiaqi and the brand is mutually exclusive. If JD.com really ignores the brand's wishes and sells ovens at a 50% discount, saying that it subsidizes it, the brand will actually lose money. Who will buy the oven at the same price in the future? At the same time, this It may also cause the brand to passively breach the contract with other partners, exposing the brand to the risk of huge compensation.
Some people say that Li Jiaqi's live broadcast room is not clear-minded. The top anchor does have product selection and price monopoly, but this time JD.com's "dragon-slaying knife" is more ruthless.
Branding seems to be the most difficult one. Whether you cooperate with anchors or JD.com, whether proactively or passively, you have to help your family lower the price.
Of course, it is not easy for consumers who were once questioned by Li Jiaqi about "whether they are doing a good job" and "whether their wages have been increased." Of course, most people still support whoever has the lowest price, and it would be better if they fan the louder.
As things have developed now, it is more like a price war among various channels. Brands are worried that the price system will be disrupted. Consumers are confused about why Double 11 is becoming more and more complicated. They all say that they want me to buy good products at the lowest price. Can they still give me a discount? happy?
However, at present, the controversial products have been removed from JD.com’s self-operated stores, and the wool is no longer available.
The lowest price on the Internet actually means that others are not allowed to sell it more expensively?
This business war is a matter of three parties. Li Jiaqi bears three points of firepower. It is not the "three points" of "three points of flowing water and seven points of dust", but the "three points" of "there are only three points of moonlight in the world". Professional counterfeiter Wang Hai He also joined in the fun and exposed that Li Jiaqi was selling fake Hetian jade in his live broadcast room.
The most dramatic scene was that Li Jiaqi's company, Mei ONE, said it had not signed a so-called "reserve price agreement," but the details of the contract were exposed by "Sina Technology."
The key points mentioned in this self-proclaimed "US ONE Live Broadcast Promotion Service Contract" are:
Party A (brand) guarantees that the promotional intensity provided by it through the designated expert under all promotional services agreed by both parties under the framework of this contract will be the maximum intensity under the same conditions within the scope of the guarantee within the guarantee period.
If there is a breach of contract, the brand should refund five times the price difference to consumers, compensate Party B (US ONE) for liquidated damages of RMB 2 million, and bear all expenses and losses incurred due to the refund of the price difference.
Among them, the best price ranges from Taobao platform, other e-commerce platforms and offline channels. The guarantee period of the best price is 60 days before and after the actual date of the live broadcast promotion service.
If the brand does not give itself the greatest promotion, it will be fined 2 million yuan, which seems to have solidified the "lowest price on the Internet".
But for some unknown reason, the Weibo post of "Sina Technology" that posted the contract now "does not have permission to view it yet". It had nearly 140,000 likes before. Therefore, there is still a question mark whether the "floor price agreement" is true.
However, many e-commerce practitioners interviewed by "Blue Whale Finance" said that "reserve price agreements" are common, but sometimes they are renamed. Not only Li Jiaqi, but other major anchors will also sign similar contracts with brands, with liquidated damages starting in the millions. If the anchor can achieve sales of over 100 million in a single game, he is generally qualified to be on the card table.
Concepts similar to "low-price agreements" are actually not exclusive to anchors, and are even routine operations for e-commerce platforms.
JD.com once sued Tmall for abusing its market dominance by allowing merchants to "choose one from two", and the dispute lasted for several years. Amazon's low-price strategy is also very aggressive. If the price comparison system finds that the same product on other platforms is cheaper, it will suspend the merchant's product sales. However, in June this year, it removed the overseas version of Pinduoduo Temu from the price comparison system.
Now that Li Jiaqi is involved in a similar controversy, it can be seen that the leading anchor has an influence comparable to the platform to some extent.
In addition, on October 24, Li Jiaqi's colleague and Douyin anchor "Crazy Little Yang Brother" named Li Jiaqi in the live broadcast room, saying that the other party not only controls the price but also controls the inventory. If he sells more, he has the right to "hijack the merchant." "Dad, we are the big brother." The talent needs to come down a little bit.”
During the live broadcast, Brother Yang seemed to have received a warning because of the "broken price" (far lower than the market price or cost price) and removed the product link from the shelves in advance. The female anchor "Seven Bosses" lamented, "There is no need to sell anything." ”.
Pulling out the radish and bringing out the mud, Li Jiaqi's storm is quite likely to break out. It’s not to blame for “everyone pushes the wall down.” There have been similar plots before regarding leading anchors being suspected of price monopoly.
In 2021, it is another Double 11. Anchors such as Li Jiaqi and Wei Ya all brought an ampoule mask from L'Oréal Paris, but in the end it caused a lot of trouble.
L'Oréal Paris first promoted that the ampoule mask pre-sold in Li Jiaqi's live broadcast room was "the most powerful one in the whole year", but later the same model in the self-operated live broadcast room of Tmall flagship store was cheaper, and the expression "the most powerful one in the whole year" was also It was deleted on the same day as Double 11, and consumers felt they had been deceived.
After a preliminary investigation, L'Oréal Paris responded that the price of the brand's self-broadcast is lower because some consumers use the discounts of multiple platforms and stores. So should we also reflect on whether the Double Eleven promotion mechanism is too cumbersome and complicated?
At this time, the top live broadcast is "hard". Li Jiaqi's company stated that the live broadcast room is not the lowest price originally advertised. This is unfair to consumers. The live broadcast room will suspend cooperation with the brand until it provides a solution. .
Consumers flocked to the after-sales service, and a L'Oreal customer service responded: "Li Jiaqi said it was low price, right? Li Jiaqi is just a worker." After seeing this sentence after the Huaxizi 79 yuan eyebrow pencil incident, it felt like a talk show I called back, but I didn’t expect that the point of laughter had already been buried.
Many consumers also realized that Li Jiaqi and L'Oreal were actually arguing about the definition of "lowest price."
The lowest price of the top anchor is more like not allowing others to sell lower than themselves, rather than giving consumers as much discount as possible. If the pit fees and commissions for live streaming were not so high, the price might be lower.
It now seems that the most far-reaching significance of the L'Oreal incident is that it has taken off the fig leaf and brought to the forefront a question lingering in the minds of many consumers:
If you don’t watch the live broadcast, you can’t buy the lowest price products. Is this a kind of monopoly?
This time, the disputes with JD.com and Hai’s have made the problem even more serious.
Lawyer You Yunting interviewed by "21st Century Business Herald" pointed out that if the agreement between JD.com and Hai's stipulates pricing and JD.com is indeed in breach of contract by lowering the price, then the two parties will refer to the Civil Code to resolve the dispute.
If the price floor agreement between Hai's and American ONE is true, American ONE may face the risk of antitrust litigation. At the same time, it will also have to consider whether American ONE's market share meets the monopoly standards of the e-commerce market.
In addition to buying low prices, what else is there to watch live e-commerce?
Objectively speaking, there are indeed some benefits to staying in the live broadcast room of the head anchor.
These anchors often cooperate with official flagship stores, and the quality and after-sales service are relatively guaranteed. The "lowest price in the entire network" and "the most gifts" make people feel that they are getting a bargain, and their business skills are also above the standard. They are energetic and have a friendly tone. They are euphemistically called "emotions" value".
Hua Xizi's turmoil has become bigger, partly because Li Jiaqi can no longer sympathize with his audience, and bosses around like Concubine Hua, saying, "Bitches are hypocritical."
The only martial arts in the world is fast. Low price is king when it comes to live broadcasting. The glamorous head anchors are actually vying for the crown of "low-price anchor". Brands value their huge traffic channels and sales, and are willing to pay low prices or Loss builds reputation.
Top anchors attract users with the guaranteed lowest price of their products, and because more users win greater bargaining power, the strong get stronger. The higher the anchor's head, the more concentrated the traffic, and the more guaranteed the right to speak.
Of course, there are also consumers who never watch live broadcasts who feel that live broadcasts are time-consuming and unproductive, and that users are being manipulated in order to get discounts. In addition to low prices, why do we need to stay on the live broadcast to bring goods?
Douyin, which dominates the world with short videos, considers it an "interest e-commerce". When you don’t have an immediate need, we use big data algorithms and short videos, live broadcasts and other content to make you feel that you may like the products on the screen and may be useful, and then you have the desire to buy them. This is the logic of interest e-commerce.
There may be some things that we really need, but this also leads to a lot of impulsive consumption. Talk show actor Qiu Rui once said a joke that he bought a cat climbing frame in the live broadcast room. In fact, he only has dogs at home:
The stuff in the live broadcast room is really cheap, but you really don’t need it.
During the live broadcast on October 23, a netizen asked "Crazy Little Brother Yang" whether the rise of e-commerce has led to the closure of physical stores. Brother Yang responded that online and offline are complementary to each other.
If there were no e-commerce today and you could only buy things offline, how expensive would this thing be? If you buy something offline and find it better than buying something online, the business will change, which also makes offline products better and better.
Of course, as Brother Yang said, low prices are a result that consumers are willing to see, but many links in the process have been sacrificed and benefits have been redistributed.
The money given to leading live broadcast teams such as Li Jiaqi used to be given to offline sales entities such as supermarkets and agents. However, due to the influence of short videos and low-cost live broadcasts, brands are gradually moving away from dealers.
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When consumers enjoy the “lowest price on the entire network”, most of the benefits are taken up by the top anchors. Ultra-high commissions and pit fees, as well as a price control system that locks in exclusive prices, force people to buy things in the live broadcast room. However, high sales volume does not mean high brand value. Unreasonable cost distribution restricts the construction of the brand itself. , making the industry supply chain less healthy.
At the same time, online promotions are becoming more and more involved. Whether it is full discounts, red envelopes, deposit balances, or store coupons, spending Double 11 is like doing a math paper. As consumers, we use time to exchange for cheaper consumption methods.
The price monopoly of the live broadcast industry will also trouble many people who don’t like to watch live broadcasts. If you really just want to get cheap, you might as well visit the emerging AI live broadcast rooms. Of course, they cannot replace Li Jiaqi at present. What they are best at is issuing group buying coupons for meals and the like for a long time. You really need it, and it really Cheap.
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