618 live broadcast brings goods beyond expectations? Simba and Crazy Brother Yang are no longer good......

Securities Times E Company

2024-06-18 23:09Published on the official account of "Company E" under Guangdong Securities Times

The 618 promotion of e-commerce platforms is coming to an end this week, and live e-commerce is still a must for major platforms and listed companies during this year's 618 promotion.

In addition to Taotian, Jingdong, Pinduoduo's three leading e-commerce platforms, Douyin, Kuaishou, Xiaohongshu, Meituan, Ctrip and other platforms are all increasing live streaming in 618 this year.

Although e-commerce platforms, head anchors, and merchants all lamented that this year is "the most difficult 618 in history", according to the analysis of industry insiders, from the limited information and data, the growth of 618 live streaming this year still exceeds expectations, and the growth rate should also exceed last year's year-on-year growth rate.

Yuanwang Technology's "performance" exceeded expectations

As a leading enterprise in the live broadcast e-commerce industry, Yuanwang Technology's performance in each promotion has always attracted much attention from the outside world. According to the "618 Consumption Report" released by Yuanwang Technology on June 13, 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 duration of 6,054 hours.

On May 21, the first live broadcast of Jia Nailiang, the star anchor of Yuanwang Technology, reached a GMV of over 425 million yuan, which was better than last year, and completed double sales of 618 in a single day last year. At the same time, Yuanwang Technology also expanded to the video number platform, and the GMV of Yang Zi and Huang Shengyi and his wife's first live broadcast reached 10.96 million yuan. As of June 13, the live broadcast rooms of Yuanwang Technology have frequently exceeded 100 million yuan, and there are more than a dozen more than 10 million yuan.

Yuanwang Technology focuses on the star live broadcast room. In the field of live broadcast e-commerce, Yuanwang Technology is the live broadcast e-commerce company with the most signed stars, and has signed contracts with more than 60 stars to cooperate in the live broadcast business.

In addition, the form of brand and category special sessions is not only in the celebrity live broadcast room, but also some brands, hoping that the talent anchors of the institution can go to their own store broadcast live broadcast room more. During this year's 618 period, more domestic brands entered the Yuanwang live broadcast room, and even held special sessions, covering almost all common consumer categories including beauty and skin care, personal care and home cleaning, clothing and home textiles, jewelry, etc.

Yuanwang Technology, formerly known as the A-share "No. 1 Women's Shoes Stock" Saturday, was listed on the Shenzhen Stock Exchange in 2009. In 2019, the company entered the field of live broadcast e-commerce through the acquisition of MCN agency Yuanwang Network, and landed in the capital market as an A-share live streaming company. In December 2022, with the approval of the Shenzhen Stock Exchange, the stock abbreviation of "Saturday" was changed to "Yuanwang Technology" from December 1, 2022, and the stock code "002291" remained unchanged.

However, the high-profile celebrity live broadcast room has not had a significant pulling effect on the performance of Yuanwang Technology. From 2021 to 2023, the revenue scale of Yuanwang Technology will continue to expand, with revenue growth rates of 30.70%, 38.75%, and 22.48% respectively. In the same period, its net profit attributable to the parent company was a loss of 700 million yuan, a loss of 265 million yuan, and a loss of 1.050 billion yuan.

According to the latest financial report released by Yuanwang Technology, in the first quarter of 2024, the total revenue of Yuanwang Technology will be 1.581 billion yuan, an increase of 43.44%, but the net profit attributable to the parent company will be a loss of 94 million yuan, a year-on-year increase of 147.37%.

Due to losses for three consecutive years, the Shenzhen Stock Exchange issued an annual report inquiry letter on the 2023 performance of Yuanwang Technology, aiming at the company's large loss of net profit, large outflow of cash flow from operating activities, and serious year-on-year decline in the gross profit margin of Internet advertising business.

"Make a friend" doubled

Dongfang Selection has experienced 618, which is completely different from Yuanwang Technology. Due to various negative information on the hot search one after another, the stock price of Oriental Selection fell all the way during the 618 period this year, and from May 20th to June 18th, the stock price of Oriental Selection fell by more than 24%. Among them, on June 3, the share price of Oriental Selection fell by 9.92%, and its market value shrank by more than HK $1.8 billion in a single day. The latest total market capitalization of Oriental Selection is HK$14.726 billion.

At the beginning of this year's 618 promotion, Dongfang Selection caused heated discussions in the market due to the sudden change in the live broadcast style from knowledge to "howling live broadcast", and then Dongfang Selection's two super IPs Yu Minhong and Dong Yuhui also made negative remarks one after another, Yu Minhong said in a live broadcast room that "Dongfang Selection is doing a mess now", Dong Yuhui mentioned in a program that he is very resistant to selling things, and he does not enjoy the job of an anchor with goods to this day, and at the same time he is very disgusted with being called an "Internet celebrity", and feels that this is not a compliment.

At present, the live broadcast room of Oriental Selection and the live broadcast room with Hui are showing a trend of eliminating the advantages of the other. According to the data of the third-party platform Cicada Mother, in the past 90 days, the Douyin account of Dongfang Selection has lost nearly 500,000 fans in the past three months, falling out of the top ten in the monthly list of goods talents; In the past month, the average sales volume of live broadcast rooms was 7.5 million yuan to 10 million yuan.

During the same period, the "Walking with Hui" account led by Dong Yuhui steadily increased its followers, ranking third in the monthly list of goods talents; In the past month, the average sales volume of the live broadcast room was 10 million yuan to 25 million yuan. In the first quarter of this year, the sales of the live broadcast room with Hui were 889 million yuan, 450 million yuan, and 626 million yuan respectively; In the same period, the sales of Dongfang Selection's live broadcast room were 557 million yuan, 228 million yuan, and 286 million yuan respectively.

Luo Yonghao made a friend with fire, and the overall performance during this year's 618 period was in line with expectations. Cui Dongsheng, vice president of Make a Friend, said in an interview on June 3 that as of now, 618 Make a Friend this year has completed 90% of last year's sales, and all data have roughly doubled growth, and it is expected that there will be a relatively large increase on the Taobao live broadcast platform next year.

On July 6, the Hong Kong listed company Century Sage Scientific announced that the company changed its English and Chinese stock abbreviations from "CENTURYSAGE" and "Century Sage Scientific" to "BEFRIENDSHLDG" and "Make a Friend Holdings" respectively, effective from 9 a.m. on July 11, 2023.

On the evening of March 26, 2024, the annual report released by Make a Friend showed that Make a friend achieved a revenue of 1.074 billion yuan last year, and an adjusted net profit of 180 million yuan, mainly due to the large increase in the live streaming business of Make a friend on multiple platforms such as Douyin, Taobao, and JD.com.

The growth rate of sales of top anchors has slowed down

"Is it difficult to promote 618 this year? I think it's difficult, but I like to find breakthroughs in the 'difficult', push myself in the 'difficult', and then see what we can bring to users. On May 16 this year, Li Jiaqi, the head anchor of Taobao Live, said at the ONE "618" kick-off meeting in the United States.

This year's 618 promotion is particularly cold, and the live broadcast sales of head anchors have declined. According to the data of "Blue Eye Intelligence", on the first day of Li Jiaqi's 618 pre-sale, the GMV (total merchandise turnover) of the beauty category in the live broadcast room exceeded 2.675 billion yuan, a decrease of 46% compared with nearly 5 billion yuan in the same period last year.

In terms of data from other top anchors, according to Xinxuan's statistics, Simba's total sales of the first live broadcast of 618 this year were 1.427 billion yuan, while the sales of the first broadcast of 618 last year exceeded 1.6 billion yuan.

Cicada mother data shows that this year's 618 promotion, Douyin's head anchor Crazy Brother Yang only ranked 17th on the list of goods talents.

Feigua data shows that in the first live broadcast of 618 on an e-commerce platform this year, the turnover of the head anchors Qi'er and Pan Yurun was 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, the founder of Bailian Consulting, analyzed to the Securities Times reporter that on the one hand, major anchors are expanding businesses other than live broadcasting, such as Dong Yuhui and Xiao Yangge to expand the cultural tourism business; On the other hand, because the anchor echelon of big anchors has not been well cultivated in recent years, it is impossible to better improve performance with the help of multiple anchors. In addition, the growth rate of the entire live broadcast e-commerce industry has slowed down this year, and major e-commerce platforms have increased their efforts to support merchants' self-broadcasting. Combining a number of factors, the sales growth of major top anchors will naturally slow down.

On June 18, the "2023 China Live E-commerce Market Data Report" released by the E-commerce Research Center, the vice president unit of the Live E-commerce Working Committee of the China Federation of Commerce, showed that the penetration rate of live broadcast e-commerce will reach 31.9% in 2023, with a growth rate of 26.08%, and the growth rate will continue to decline.

However, Zhuang Shuai pointed out that although during this year's 618 period, the sales of many head anchors and star anchors declined overall, but from the limited information and data, the growth of 618 live streaming this year still exceeded expectations, and the growth rate should also exceed last year's year-on-year growth rate.

"Last year, 618 Xiaohongshu live broadcast and Jingdong procurement and sales live broadcast have not increased their efforts to carry out business, and this year's 618 investment is significantly larger, so it is estimated that this year's 618 live broadcast data will inevitably be higher than the growth rate of last year." Zhuang Shuai analysis.

Zhuang Shuai further said that this is because live streaming is still accepted by a wider range of users, and it is also a very good means of promotion, and the diversity of live streaming is becoming more and more obvious, such as super anchors, celebrities, CEOs, JD.com, Xiaohongshu buyers, Baidu digital human live, merchant self-broadcasting, etc.

Judging from the current domestic live broadcast e-commerce competition pattern, Zhuang Shuai said that the current live broadcast has basically become the standard configuration 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 a differentiated development trend. Judging from the financial reports of listed companies, MCN institutions can improve their overall profitability by providing marketing services to brands, providing commission income for customized products, developing their own brands, and training business.

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