Whats the logic of Dong Mingzhus live delivery

 Whats the logic of Dong Mingzhus live delivery

When asked about the latest record of more than 10 billion live broadcasts, Dong Mingzhu told the media that he wanted to let 30000 offline stores enter the field of live broadcasts, and the more important purpose was to change channels rather than sell appliances.

From 230000 to 10.27 billion

The novel coronavirus pneumonia epidemic was affected by retail sales in the first half of this year. According to Dong Mingzhu, Grees revenue decreased by 30 billion in the first quarter due to the lack of access to installation, store closure and other reasons.

According to Gree financial report, in the first quarter of this year, the company achieved revenue of 20.395 billion yuan, a year-on-year decrease of 49.70%; the net profit attributable to shareholders of listed companies was 1.558 billion yuan, a year-on-year decrease of 72.53%. During the same period, Midea, Haier and other home appliance groups also experienced different degrees of performance decline.

During this period, online shopping has become the main mode of consumption, and new marketing modes such as live broadcast with goods have also come to the fore again. No matter the myth of second light by Li Jiaqi and Weiya, or the promotion of transfer by Luo Yonghao, the live broadcast with goods has been in the limelight for a while, and Dong Mingzhu, the online Red is certainly not willing to be outdone.

On the evening of April 24th, Dong Mingzhu opened the first live broadcast in the tiktok, and introduced the GREE exhibition hall and new products together with the host. However, due to technical problems, during the live broadcast, the number of viewers dropped to 50000 due to frequent rollovers. Finally, the whole live broadcast came down, and the sales volume was only 230000 yuan.

But it didnt knock down the iron lady. In May 10th, Dong Mingzhu Kwai opened second live broadcasts. Having learned from the previous lesson and solved the technical problems, Dong Mingzhu also introduced the products together with the famous anchor couple of two donkeys. After three hours of live broadcast, the final turnover was 310 million yuan.

Just five days later, Dong Mingzhu carried out the third live broadcast in Jingdong. With the gimmick of the 10th anniversary of his residence in Jingdong, Gree offered a very preferential discount that night, attracting 7.33 million people to watch. The turnover exceeded 703 million yuan, setting the highest delivery record of live broadcast goods in Chinas home appliance industry.

Wen Jianping, chairman of Aowei cloud, said in an interview with the media that the online growth rate of the home appliance market this year is significantly faster than offline growth, and the online sales volume has exceeded offline sales, which is the first time that such a trend has appeared in the home appliance market.

Wu Haiquan, China regional president of Midea Group, also told 21st century economic news that last year, the proportion of e-commerce sales in the United States accounted for about 30%, but in January may this year, the proportion of e-commerce in the United States has soared to nearly 50%.

Live broadcast logic

Tiktok from 230 thousand, 310 million, 703 million, 6 billion 540 million to 10 billion 270 million in June 18th; from the jitter, fast hand, Jingdong, and Guo Meis small test Kwai Dao to GREE GREE store WeChat Mini program, every live broadcast of Dong Mingzhu has a clear purpose.

For example, the first live broadcast of tiktok is a test of water. At that time, Gree insiders told 21st century economic reporter that the live broadcast focuses on promoting the companys culture and products, and carrying goods is not the main purpose.. Its not hard to find that Dong Mingzhu introduced high-end products and the latest R & D technology of more than 10000 yuan.

The second time with Kwai Fus cooperation, Dong Mingzhu not only changed the host, but also made a substantial adjustment in the selected products, taking the low and medium price products as the main recommendation. After that, the cooperation with Jingdong will further expand the categories with goods, covering the high, middle and low market, but still focusing on air conditioning products.

Until the live broadcast in Gree dongmingzhu store on June 1, Dong Mingzhu started to fly alone after a round of several live broadcast platforms, and attracted dealers to participate. In fact, Dong Mingzhu has repeatedly mentioned that his live broadcast is the leading role, hoping to promote Gree dealers to actively embrace the new retail.

21st century economic reporter noted that in order to set a model role, Grees live broadcast on June 1 not only extended the live broadcast time and divided it into the first half and the second half, but also covered the whole network with sales statistics. Under this logic, it can be expected that the fifth live broadcast will only invest more.

On the evening of June 17, Dong Mingzhu has begun to participate in the 618 warm-up activities. On the day of 618 live broadcast, the smart home scene created by Grees all categories of health appliances appeared in the live broadcast room. Dong Mingzhu, as the hostess of the family, interacted with the host and guests in the living room, childrens room, kitchen, bedroom, balcony and other different scenes to introduce all kinds of health appliances under Gree.

That night, Gree air conditioning is no longer the protagonist, instead of other categories. For example, Dong Mingzhu focuses on fans, wine cabinets, air purifiers and other products in the smart living room, and childrens air conditioners and formaldehyde removers are displayed in the sleeping room. The kitchen is the key promotion scene, and the categories that Gree cut into in recent years, such as universal pot, electric rice cooker, steamer and toaster, dishwasher, water purifier, portable juicer, refrigerator, disinfection cabinet, are all displayed one by one.

When it comes to Gree, we naturally think of air conditioning. Grees air conditioning has become the worlds leading, rice cookers and other living appliances can also be. I have a small goal now. I hope Grees life appliances can be the best. Dong Mingzhu said so.

Gree has been famous for air conditioning in the past, and this epidemic undoubtedly deepened the sense of crisis in its single main sector. In the view of Liu buchen, a senior in the industry, the two major problems of Gree Electric at present, except that the traditional sales mode is no longer suitable for the market reality, the other one is that it has not been able to cultivate a second industry plate such as Gree air conditioning, lacking of market regulating valve.

Brush simple question

In fact, after the third live broadcast, the news of Gree let agents brush the bill began to appear on the Internet. Please, dont broadcast it again. As soon as you broadcast live, our agent will be asked to brush the bill. You boast that you have sold hundreds of millions of air conditioners, which are in our hands. On May 16, an anonymous screenshot of a circle of friends was widely forwarded by netizens.

Although Dong Mingzhu himself later denied to the public that there are too many stories now, and there is no such thing at all. But it has not been able to eliminate the industrys doubts.

Liu run, founder of runmi consulting, analyzed in an article that Dong Mingzhus live delivery is essentially the logic of live distribution. Because its usually sold offline, its not necessarily able to gather so much traffic. Although the price difference of each piece is less, but because of the large quantity, small profits and high sales, the profits will be more. So most dealers are willing to do it.

Take 618 live broadcast as an example. A 1.5-hp Gree three-stage energy-efficient air conditioner costs only 1900 yuan. The price is not only lower than the official guide price, slightly lower than the lowest market price, but also lower than the purchase price of many lower level merchants. So there is a situation: small merchants no longer take goods through their upper level distributors, but directly place orders in the live room.

According to media reports, some businesses even have 200000 or 300000 underground bills. As a result, no one received the goods from the upper level dealers, so they returned them to Gree branch. A gree sales system insider said that dealers are usually in the forefront of profits, so it is basically impossible for them to brush the list to give Gree performance bonus.

According to the head of the above home appliance stores, the current situation may be due to the formal implementation of the new energy efficiency standard for air conditioning on July 1. At that time, some low-end models with old energy efficiency could not be produced again, and gradually became scarce products, so they hoard them first. In his opinion, the bill brushing is only a shallow problem. The deeper problem is that under this new retail mode, the original distribution system of Gree has been affected, the reform has brought pain, and it is not easy for them to continue to embrace online..