1. Official interpretation of Tiktok e-commerce ecology:
Many people don’t really understand the business logic of Tiktok’s e-commerce ecosystem. And this business logic directly affects the business performance of businesses, brands, institutions, etc. in Tiktok e-commerce. According to Mu Qing, the vice president of Tiktok E-commerce, behind Tik Tok E-commerce is an orderly channel: users-talent content-products (brands and merchants behind them)-service providers (service brands and merchants) -Tiktok e-commerce.
It can be seen from this channel that there are four main components of the Tiktok e-commerce ecosystem. Users are C-end consumers, which are the starting point and end of the business. Behind the commodity, the link is the brand or merchant, which can be understood as the manufacturer that produces the commodity and the store that sells the commodity. Behind some manufacturers and merchants are service providers and then Tiktok e-commerce. To put it in the simplest logic, users see some content output by brands and merchants, which stimulate interest and generate purchase behavior. In the conversion process from interest to purchase, service providers are helping brands and merchants shape business scenarios and improve conversion. , Provide full link operation support. Service providers can be understood as “shopkeepers”, brands and merchants are “hosts”, and Tiktok e-commerce is “a street in the market.”
Obviously, because of the existence of service providers, what Tiktok e-commerce needs to do is to focus more on building platforms to amplify traffic, accurately recommend content to users, and build a “big and accurate” model. The business level can be left more to service providers. This is the meaning of ecology: each exhibits its strengths, takes what they need, and connects with each other. Let’s look at a specific question. Service providers directly affect user interest and purchase conversion. Then, what services do they provide to achieve this conversion?
According to the interpretation of the operation director of Tiktok e-commerce service provider Ge Yao, there is a group of partners in the fast-growing track of Tiktok e-commerce. They use their professional capabilities to provide merchants with account operations, store operations, and traffic operations. , Also includes live broadcast services, such as self-broadcasting, talent matching, traffic placement, customer service logistics, etc., e-commerce services with 360-degree coverage. Such ecological partners are called Tiktok e-commerce merchant service providers.
At the current stage of business development, service providers have become an important force for merchants in the development of Tiktok e-commerce. Their value is directly reflected in the numbers. For example, the combination of special products and sales of Moncair helped the KFC brand to achieve a monthly GMV transaction scale of more than 30 million; Yali Interactive created a special professional live broadcast room and live broadcast process to help TeenieWeenie monthly sales More than 200 million yuan; Guagua Media itself has the top talent resources and ability to help Maybelline reach a transaction scale of about 20 million yuan in monthly sales.
These service providers are also in different industries and have different development backgrounds. For example, some service providers are good at making food, some are good at clothing, and some are started by MCN agencies. In other words, the service providers themselves also have their own track, and the service provider will continue to output its own strengths to the brand in the process of precise matching with the brand.
Combined with the “2021 Tiktok E-commerce Merchants Management Methodology White Paper” previously released by Tiktok E-commerce, the value that service providers bring to brands and merchants is highly consistent with the white paper methodology, and the underlying logic is also “snowball-like” growth rather than traditional traffic funnel, The growth of traffic, conversion, and precipitation is rolling up and growing, and non-linear “one-shot sale”. The transformation of the service provider itself is also in line with the four major business matrices of “FACT”. For example, “Guagua Media” started as an MCN organization. After the transformation of the service provider, the biggest advantage is the resource of top talents, so it is to help the brand do live broadcast and bring goods. Its outstanding advantage belongs to the matrix management of A (Alliance) mass talents, and in the process of helping the brand to do the live broadcast, it also helps the brand to do the self-broadcasting and establishes a sufficient professional F (Field) business self-broadcasting position management ability. Therefore, service providers are very important partners in the entire Tiktok e-commerce ecosystem, and to some extent act as value converters between merchants and users.
2. What does the “brand + service provider” business model mean?
According to the interpretation of the conference site, a series of figures hide an amazing growth rate: the proportion of GMV for the top brands of service providers has been close to 50% from the first 10% to now, which means that the top brands in many industries, Half of GMV is attributed to the cooperation and support of service providers, and it is still rising at a faster-than-expected rate.
From this, we can also see the huge space for the commercialization of Tiktok e-commerce in the future: this is the real basis of the “brand + service provider” model. Aftermarket testing, this road has run through, and the next step is to enlarge this model. The scope of application, deeply penetrates all walks of life, so as to create a more prosperous Tiktok e-commerce ecosystem. Take a look at a specific case of “brand + service provider” and see how service providers help brands achieve business growth.
Take Yili’s official flagship store as an example. Its single-day GMV in Tiktok e-commerce reaches one million levels. The service provider selected by Yili is Xingbang Podcasting. Xingbang Podcasting has rich experience in account operation and traffic operation. The process of helping the brand is divided into three stages: the cold start period, the big promotion period, and the stable promotion period. During the cold start period, Xingbang Podcasting has the advantage of account operation and traffic operation. In this process, high-quality content planning and accurate drainage are carried out, and fans can quickly plant grass within seven days. After the grass was planted, the effective conversion of “weeding” was realized through live broadcast, and the first live broadcast of GMV exceeded 100,000.
With a good beginning, the business snowball can gradually roll-up. The next thing is the service provider’s understanding of the brand. Through this in-depth understanding of the brand, a better product portfolio can be quickly established, including drainage models, popular models, and sub-launch models, combined with their own traffic distribution advantages. Japanese GMV quickly broke one million.
After the big promotion is over, it enters the process of stable improvement. Various combination play methods ensure that the daily stable results of the live broadcast room are achieved. Next, through continuous traffic placement and testing to see where more audiences are, and the unit price of combined products is increased. Eventually, realize the continuous growth of GMV. Looking at another case, the apparel brand TeenieWeenie, through a solid operating foundation and traffic import, reached a live GMV of over 18 million a day and a monthly GMV of over 200 million in about ten days after the cold start. The service provider behind it is Yali Interactive. Growth is also divided into three stages: preparation period, stable period, and marketing activities.
During the preparatory period, Yali Interactive selected a college-style anchor that specifically matched the brand. The decoration style of the live broadcast room was also the brand-academic style, laying a foundation for the outbreak of the live broadcast. Through the short video content of the new product launch conference, it is perfectly integrated with the brand tone, and the content is deeply rooted in the minds of users in the process of content dissemination. In terms of inventory, there are 2~3 hot styles every day, which achieves deep inventory coordination, which can ensure that various styles can be found and sent out continuously.
As the business enters a stable period, Yali Interactive first conducts a small-scale traffic test in order to find accurate crowd portraits, and gradually expands the advertising efforts after New Year’s Day. Through the leverage of advertising, more traffic can be introduced into the live broadcast room. In this process, the server actively adjusted the customer service. Because the guarantee of the service allows consumers to have a better service experience, the number of customer service staff has been adjusted to 26, and customer service training has been strengthened to ultimately ensure consumer shopping experience and stability. Live the store rating. Through the actual combat of a series of service brands, Yali Interactive has extracted a series of realization paths from demand research and target group analysis to content planning and sales methods.
It can be seen from the case that the service provider is very important in helping the brand build a business position. Most of the time, it is in a “hands-on” or even “full-custodial” state. The rewards for the brand are also direct: stable and rising sales and profit. Service providers are exporting through their own value and eating with their ability. This is the true ability and iron rice bowl. In the process of serving brands, service providers themselves have achieved new growth and established service channels with a moat effect. This will make the value output of service providers smoother and return more guaranteed. Service providers themselves There will be a branding effect.
According to the official statement, this year Tiktok e-commerce will vigorously promote the continued growth of the “brand + service provider” model in three aspects: First, allow merchants to more accurately find the corresponding service provider according to their needs, and the service provider. It can also clarify the strengths and positioning of one’s own capabilities. Hope this year through more exchanges, training, and other forms to help service providers achieve rapid growth in capabilities. Second, this year, Tiktok e-commerce will also make more powerful and more dimensional incentive policies to help service providers output more value and obtain more returns. Third, this year will build a more complete product system, so that service provider partners have stronger and more powerful platform tools, amplify the original professional service capabilities, and output better services for merchants.
For Tiktok e-commerce companies, with the brand + service provider business model, it is equivalent to stabilizing a snowball-like business increase, allowing service providers with their own strengths to accurately match brands with matching tonality. Match, thereby amplify the business and achieve the balance of natural growth and orderly circulation of commercial value.