TikTok E-commerce, you need to know all these | TikTok E-commerce Special Topic

A new generation of content e-commerce platforms represented by Douyin have emerged and will become a new growth point in the tea industry.

Data from the "2022 Douyin E-commerce Tea Industry Insight Report" shows that the overall transaction scale of Douyin e-commerce tea industry increased significantly in 2021. From March to December, the content search volume of Douyin tea industry increased by 98% year-on-year, and the transaction scale increased by 891% year-on-year. Most of the hot tea products come from well-known brands and high-quality production areas, and merchants have grown rapidly. In 2021, the number of merchants in the Douyin e-commerce tea industry increased by 103% year-on-year, and the number of live broadcast viewers achieved a year-on-year growth of 585%.

TikTok has changed people's consumption habits. With the normalization of epidemic prevention and control, many tea companies and tea merchants have gone from waiting and watching to keen on live streaming in Douyin, solving the major sales problems during the epidemic prevention and control period. Consumers have strong demand for tea, and Douyin's "popularity" in the traditional tea industry has brought development opportunities to the Chinese tea industry. If traditional tea companies want to seize the opportunity and make tea culture break the circle, they will inevitably not be able to stand firm. They must jump out of the offline business circle and try more possibilities online.

Tea industry integrates into Douyin e-commerce

The tea industry is a traditional sunrise industry. Data shows that China's tea production in 2021 was 3.18 million tons, an increase of 248,200 tons year-on-year; tea sales were 2.3019 million tons, an increase of 100,300 tons year-on-year . With the global economic environment not optimistic, the trend of China's tea market continuing to rise has not changed.

▲ China's tea production and sales volume trend from 2015 to 2021

Source: China Tea Circulation Association, Zhiyan Consulting and Organized

The development of new marketing models such as short videos and live broadcasts has promoted the digitalization and onlineization of tea business to a certain extent. Data shows that the scale of the online tea market has increased to 30 billion yuan in 2021.

▲ Changes in online retail sales of physical goods from 2016 to 2020

Source: National Bureau of Statistics

History of the development of Douyin e-commerce

In 2018, Douyin officially announced its entry into the e-commerce field. Soon, all walks of life discovered that Douyin is a traffic pool that can tap into huge funds. On Douyin, you can not only obtain traffic, but also get closer to monetization. After New Year's Day in 2022, the brand self-broadcasting and brand store broadcasting of Douyin platform will show growth at a speed visible to the naked eye, and it is very likely to usher in a "phenomenon explosion."

▲ Major events in the development of Douyin e-commerce

Source: All media compilation of Douyin and Asia Pacific Tea Industry

Official data from TikTok in 2020 show that TikTok's daily active users have exceeded 600 million. Douyin has gradually changed from the initial short video sales to live streaming sales. There is no doubt that the past two years have been the most golden peak period for Douyin e-commerce, with its rapid development and strong ability to attract money. Taking into account the user size, recommendation and distribution accuracy and content richness, Douyin e-commerce may be one of the most competitive platforms at present.

▲ Comparison of Taobao, Kuaishou and Douyin e-commerce

Source: Asia Pacific Tea Industry All Media Compilation

Short video marketing: Make articles around interesting

In the era of 5G surfing, more and more consumers have changed their consumption habits by short videos and live streaming. The outbreak of the epidemic further reflects the advantages of live broadcast. The shopping model of interest e-commerce further highlights the convenience of live streaming and the consumer purchasing experience has also been improved.

There are two modes of short videos selling goods in the tea industry: one is to publish short videos that publish tea history, tea knowledge, tea types, tea environment, tea drinking scenes and other contents. They directly sell goods by carrying product links - the product link is converted into a pop-up link of a product, and intuitively display the prices of goods and products through pictures and text descriptions, which stimulate users' desire to consume. The second type is to attract traffic for the live broadcast room, allowing users to directly click on the avatar to watch the live broadcast after seeing the short video of the content that carries goods. This kind of content that carries goods is a way to attract traffic to the live broadcast to attract traffic to the Internet celebrities and corporate accounts.

Asia Pacific Tea Industry All Media Observation

The short video content in the tea industry must be innovative in order to improve monetization rate. We can start from the following four aspects:

1. Make content around "tea". The Douyin account "King of Tea" only released popular science videos such as tea making and making tea, and attracted more than 800,000 fans on Douyin. In its latest videos, several of the videos are about tea artists operating a series of flowing tea making processes to sell carry-on tea sets. The direct product display brings consumers a real and direct experience, can fully understand product information, and quickly match consumers' needs.

2. Make a fuss about "interesting". More and more data shows that young consumers are beginning to pay for interesting content. They are happy or exciting when watching short videos, and are moved by the storytelling and atmosphere of the content, which drives the desire to consume. The new Douyin account "Nanyi Celadon" uses the obvious background music, from poetry to songs, and using the rhythm of flat and flat, jingling, to publish videos in the form of shouting. In just half a month, the average video playback rate has reached 160,000 yuan, and the average video playback rate has reached 560,000 yuan.

3. Use appropriate amounts of promotional content to attract traffic. Nowadays, low promotional prices and the number of fans in the live broadcast room are no longer the main factors that determine sales. Many short video contents are directly displayed on clearing up, selling prices, discounts, free trials, etc. Although it attracts some consumers, a single discounted content will affect consumer loyalty.

4. We need to continue to pay attention to data performance and interact with consumers in a timely manner. Consumers should respond positively and seriously to the messages below short videos to enhance stickiness and favorability. When replying, try to bring keywords related to the product to increase the weight of this short video.

Live streaming: exchange time and method for cash

At this stage, Douyin live broadcasts in the tea industry are mainly divided into two forms: one is mainly brand promotion , such as Hehechang, Zhenghao Tea, Baofulin, Runyuanchang, Lin Laogen, Zijin Douji, etc. The live broadcast room establishes the brand awareness of the new customer group by sharing new product characteristics, tea mountain environment, blending technology, corporate culture and other contents, and precipitates the reputation of old customers; the other is mainly through sales , such as Danni Tea, Kevin Huicha, Xiaoqian Tea Industry, Mingxing, Tea World Teacher Zhan and other accounts. Time precipitation and effective technical means on Douyin can make live broadcasts monetized.

It is worth mentioning that the core attribute of Douyin is content. Brands that live broadcast on Douyin e-commerce are actually more inclined to marketing attributes than selling goods. In addition to selling goods, the more core demand is actually to use Douyin’s huge daily active users to conduct brand marketing.

Douyin has made plans in brand support, which is an opportunity for brands to surpass the curve. It is a good opportunity to position the brand live broadcast, choose the right platform and track, prepare the brand live broadcast strategy, and persist in implementing it to form a brand's unique live broadcast methodology. For tea brands, online live broadcasts should be divided into online and offline tracks; for goods experts, consumers' motivation to convert their purchases is more due to their love and trust in experts, and it is necessary to formulate a comprehensive marketing plan.

Live streaming of goods is generally divided into three stages

The starting stage is the original fans, and it mainly relies on Douyin's natural traffic to gain fans. This is the exploration period for live broadcasts, mainly the construction of scenes in the live broadcast room, the content of the speech, the release of new products and sales.

When the live broadcast room gradually finds its own model and sales performance grows stably, the account enters the growth stage. This stage requires refined operations. To gain more fans, a certain amount of paid promotion is required, which can be done through huge engine advertising, pangolins, Fuxin Shopping, Luban, Doujia, etc.

Maturity: When the account growth is stable and you start to seek new growth and develop the entire region and multiple platforms, you need to operate the entire region in a refined manner. Asking professional agency agencies to do accompaniment, broadcasting, and agency operations will achieve twice the result with half the effort . Professional agency operations will make a series of plans based on the characteristics of the account, including immersive scene design, live broadcast style selection, stopping points between interaction with fans, staying with customer discourse, brand personalized IP, product coverage, etc., to take live broadcast sales to a higher level.

There are new opportunities hidden in Douyin live broadcast in the future. Tea merchants, tea companies, and tea brands should seize the dividend of live broadcast and polish a marketing system that suits them. Short videos and live broadcasts both require good content to achieve consumer love and conversion. Only by entering Douyin and exploring and innovation in many aspects will the tea industry achieve new leapfrog development.