When he entered Li Jiaqi's live broadcast room at around 7 o'clock last night, he was introducing a down jacket to his assistant. I don’t know what the original price was, but the price of this down jacket has now been reduced to 1,899 yuan. With the Double Eleven discount, it is now only 1,499 yuan. Among the complex words on the product page, the words Li Jiaqi's live broadcast room are emphasized. It takes a little effort to see clearly that the brand of this down jacket is from Bosideng.
After exiting the product page and returning to the live broadcast room, more than 10 million people were present. Li Jiaqi wore a light blue top. The color of the clothes and the background of the live broadcast room were very similar to the last time he stood up to apologize.
More than a month has passed since the "Hua Xizi Incident", and on the occasion of Double Eleven, Li Jiaqi once again stood at the forefront.
This time the protagonist of the brand has become the home appliance brand Hai's.
This year, JD.com’s Double Eleven event started at 8 pm on October 23. At noon the next day, a salesperson from JD.com’s “Self-operated Baking Group” posted a long message on Moments. He received a lawyer’s letter from the brand owner Hai’s. The reason was that a Hai’s oven was sold cheaper on JD.com than in Li Jiaqi’s live broadcast room. However, due to the existence of a “floor price agreement” between Hai’s and Li Jiaqi, Hai’s had to pay huge liquidated damages.
But the salesperson was also puzzled. He said that the price drop was entirely at the expense of the department's gross profit. By making this oven the lowest price on the Internet, JD.com will only lose money, even if it makes a profit at a loss.
There are three parties in the dispute, with JD.com igniting the fire. The company behind Li Jiaqi, MeiONE, responded by denying the "low-price agreement" and stated that the pricing power of the goods in Li Jiaqi's live broadcast room lies with the brand itself.
The remaining party was Heidegger, but Heidegger responded by siding with Li Jiaqi.
In a statement in response, Hai's stated that the brand had never signed any "low-price agreement" with Li Jiaqi's live broadcast room. It also claimed that the lowest selling price during Double Eleven was the same across the entire network, and even reported JD.com to the State Administration for Market Regulation in real-name terms.
This seems to be a dispute between the brand and the platform, and Li Jiaqi was just accidentally involved.
Half a day later, Sina Technology exposed the live broadcast promotion service contract of US ONE.
There is a "Special Protection Clause" in this contract, which states that the brand needs to ensure that the promotional intensity provided by it through the designated expert under all promotional services agreed between the two parties under the framework of this contract is the maximum intensity under the same conditions within the scope of the guarantee within the guarantee period.
The scope of this "best price" guarantee is Taobao platforms (including but not limited to Taobao/Tmall stores, anchor live broadcasts and other Taobao content channels), other e-commerce platforms and offline channels.
Based on this contract, if the brand's products are sold cheaper in stores such as Taobao, JD.com or the brand's own offline stores than in Li Jiaqi's live broadcast room, it will be in breach of contract.
The consequence of breach of contract is to pay ONE a liquidated damages of RMB 2 million and bear all expenses and losses incurred due to the refund of the price difference.
This seems to confirm the existence of the "lower price agreement", but this contract has not been recognized by ONE.
The controversy returned to Li Jiaqi.
The siege against Li Jiaqi on October 24 was not just about Heidegger.
Wang Hai, a professional anti-counterfeiter, posted on Douyin on October 24 that a consumer purchased a Hetian jade necklace priced at nearly 600 yuan in Li Jiaqi’s live broadcast room the day before, even though the necklace was endorsed by a Hetian jade appraisal certificate. However, the identification result of this necklace by NGTC (National Jewelry and Jade Testing Group Co., Ltd.) is not Hetian jade, but a carbonate-tremolite jade necklace.
Even the crazy little Yang brother who was crazy in the live broadcast and was compared to Simba in the live broadcast became a positive figure standing next to Li Jiaqi.
On October 24, halfway through the "Crazy Little Yang Brother" live broadcast room, a lamp was suddenly removed from the shelves by the brand, allegedly because the price of the product was lower than that of Li Jiaqi's live broadcast room.
Brother Yang, the eldest of the two brothers, angrily said after the product was taken off the shelves that Li Jiaqi used the influence of the head anchor to control prices and even inventory. The more products sold through Li Jiaqi's live broadcast room, the greater his influence on the brand, and his control over the brand is like a snowball.
This is why the outside world has doubts about the "low-price agreement". In essence, live streaming has begun to override both the platform and the brand since it first appeared as a sales form to enhance the consumer experience, resulting in an imbalance in the pricing power game.
Perhaps some similarities can be seen in another story that has nothing to do with Li Jiaqi.
Wang Yumeng, the founder of original leaf tea brand Chabiubiu, recently posted a message asking for help. Since Hema’s product line has been reduced from 300 brands on the shelves to 100, Chabiubiu has been officially removed from the shelves by Hema, and the goods are required to be removed within a time limit.
This was the last straw that broke the brand, but before that, the strong but distorted influence of live streaming on new consumers had already deformed the entire brand's operating rhythm.
"At that time, no one advised me not to do live streaming, because it can indeed increase sales. However, excluding event discounts, anchor commissions, and pit fees, the compensation is very thorough; the big anchors lose money and make money, and the brands do not dare to offend those big anchors. There is no shortage of brands who want to bring goods to big anchors, and people turn around. You can support your competing products. Do you dare to leave? At that time, a brand in our industry spent 20 million per month on live broadcast, which was only about 1 when calculating ROI. But as the momentum grew, we had to do something to leave some voice. Big anchors are too bad, so we can only be small and medium-sized anchors.
The pit fees for small and medium-sized anchors are indeed much cheaper, ranging from several thousand to tens of thousands, but they have put forward a new requirement, cutting the price by half to live broadcast! Because these small and medium-sized anchors do not have the ability to empower brands, nor do they have loyal consumer fans, they can only rely on really cheap products to attract viewers, but where can they find so many cheap and good products? The only thing left is for the merchants to suffer a little longer. If you cut the price in half and deduct 30%-40% of the commission, you will lose one order for each order.
For brands, if the price comes down, there will be no going back. If there is no profit, it will basically not last long. So many brands have changed their packaging, lowered the quality and lowered the cost, so that at least they will not lose money. But I am not willing to lower the material standards to cater to the market and become a "low-price brand". I am determined not to make bags. I still want to believe in consumption upgrades, so we gave up live streaming. The final result was that we invested millions of dollars in the entire project, and there was no splash. The loss of blood already showed that the market efficiency at that time was already low to a certain extent. "
Then Chabiubiu gradually changed from a profitable store to a hollow store with a sales ratio ranging from 30% to 50% and reaching a peak of 80%.
Chabiubiu is one of countless brands trapped in the live broadcast room.
Its dream of becoming a star company will end before 2022, but overall, there are very few examples of star companies in the new consumer industry.
But Hua Xizi, who has been frequently linked to Li Jiaqi recently, is definitely one of them.
On the evening of September 10, Li Jiaqi angered consumers when he shouted at Huaxizi’s 79 yuan eyebrow pencil in the live broadcast room. During the live broadcast, he faced the consumers who shouted that it was expensive and made such an attack as “sometimes I look for my own reasons, because my salary has not increased after so many years.” What followed was consumer anger, Li Jiaqi's tearful apology, and Hua Xizi's disappearance from Li Jiaqi's live broadcast room for 43 days.
In 2018, ONE Company transformed around the IP "Li Jiaqi". The latter started to become popular after shouting "OMG". At the same time, Hua Xizi finally made up his mind to become a live streaming e-commerce business. In 2019, Huaxizi walked into Li Jiaqi's live broadcast room for the first time. After a Huaxizi air powder was first released in Li Jiaqi's live broadcast room, it became the number one store in "Double 11" sales that year, with more than 20,000 pieces sold.
Then it got out of hand. Huaxizi’s sales in 2019 were 1 billion yuan; they tripled the next year. By 2021, Huaxizi's sales have reached 5.4 billion yuan, and its market share has increased from the initial 0.3% in 2017 to 6.8%.
The bond between this celebrity brand and Li Jiaqi is also further deepening. According to Gelonghui analysis, Huaxizi took away 4 yuan of profit from the 79 yuan eyebrow pencil. After excluding manufacturing costs and supply chain expenses, Li Jiaqi took 63 yuan. It is rumored that Huaxizi’s commission rebate to Li Jiaqi is as high as 60%-80%, or even more than 100%. This statement was denied by Huaxizi.
On October 24, the same day when all parties besieged Li Jiaqi, Hua Xizi took advantage of Li Jiaqi's Double Eleven to return to the live broadcast room, but that eyebrow pencil was not in the selection.
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