Oriental Selection and Brother Yang are going overseas together. Are they trying to make a lot of money from foreigners?

The live broadcast circle has been lively again recently. Dongfang Zhenxuan wants to go abroad, but before it, someone has already gone abroad first. Let's take a look at the specific situation~

If we were to say what is the most exciting thing in the live streaming circle recently, the internal fighting within Oriental Selection would undoubtedly come to the fore.

However, when everyone was staring at Dong Yuhui and his companions, did they see a piece of extra news:

Oriental Selection is preparing to go abroad and enter TikTok.

And just yesterday, the official confirmed that it was indeed in talks with TikTok about cooperation.

I checked the recruitment website and found that there were already related positions for TikTok.

Not only that, Oriental Selection has also registered a bunch of EASTBUY trademarks, preparing to go international.

Dongfang Zhenxuan is not the only company eyeing the fat piece of TikTok. All the top live streaming companies are calling for going overseas. For example, Wei Ya’s Qianxun is said to have attracted many American internet celebrities with millions of fans. Yaowang Technology also said that it wants to "create another Yaowang" overseas.

Some people are even one step ahead and have achieved great results overseas.

01

Some time ago, Crazy Xiao Yangge from Three Sheep collaborated with a Singaporean talent and directly broke the local record, topping the Singapore live broadcast list.

In fact, Xiao Yang had planned this for a long time. As early as July last year, Xiao Yang changed the name of the company to Three Sheep Holding Group, which became the global headquarters.

He also made a tough statement in the live broadcast room: "Establish a global headquarters and sell goods on TikTok" to make money from foreigners.

In just a few months, his MCN three sheep network has made it into the top ten of Southeast Asia's cross-border MCN list, and has also set up a warehouse in Singapore.

I thought it was a resounding answer, but when I looked into it carefully, I found that something seemed wrong.

This Singapore performance is actually a bit exaggerated.

Although it is indeed the best-selling product in Singapore, the problem is that few people in the whole class pass the test. There are only a few dozen people online in the live broadcast room in Singapore. Even if it breaks the record, it does not mean that the actual sales volume is very good.

In fact, these anchors who are the best at live streaming and selling goods in the world are not launching a massive attack on TikTok just to sell goods through live streaming.

According to statistics from FastMoss Research Institute, 80% of e-commerce sales on TikTok are generated by influencers, and only 20% are generated by live streaming and shopping malls. It is not easy to do live streaming on TikTok.

At present, the best market is Southeast Asia. A Jitu employee in Southeast Asia told Chapingjun that the Southeast Asian market is more receptive to China's live streaming sales model, and TikTok's live streaming can often generate small sales.

Especially in Indonesia, last year there was a show watched by nearly 5 million people and sold an impressive record of 18.584 billion rupiahs, which is about 4.95 million yuan.

This achievement is still limited by poor stocking, packaging speed and infrastructure.

Therefore, when big anchors enter the market with mature models, there is a chance to push the market to a small peak.

But outside of Southeast Asia, the acceptance rate dropped sharply. For example, in the American market, live streaming has not been able to beat anyone after going through so much.

Even in Southeast Asia, where acceptance is very high, the popularity is lukewarm except for Indonesia, Thailand and Vietnam.

Not only is there insufficient regional acceptance, but the product categories are also relatively single.

In the US market, collectibles account for as much as 90%, and other items are not selling at all.

So, not all big anchors are here just for live streaming. A TikTok merchant also told me that it is inevitable for these anchors to go overseas, but not necessarily in the mode of live streaming to sell goods.

After all, judging from the sales volume aggregated from all modes, TikTok Shop’s performance is already quite impressive.

TikTok Shop's GMV in Southeast Asia has exceeded US$13 billion. And there is still a lot of room for development. This year, their GMV goal is to reach US$50 billion.

Especially Jitu, as an express carrier, their employees told Chapingjun that they feel TikTok's cargo volume is already exaggerated. In the past two years, the cargo volume can account for 40%-50% of Southeast Asian countries.

According to a report by Xinbang, the overseas director of Jiaogepengyou said that TikTok's commercialization is far from being released and is still in a process of rapid growth. "The commercial value of ARPU (average revenue per user) still has room for at least four or five times of growth."

Now the authorities are in urgent need of injecting the mature models of these big anchors into the platform, probably in order to boost the ecology of the entire platform and take the business to the next level.

The merchants and bad reviewers interviewed said, "TikTok's market will only get bigger and bigger, and the presence of big anchors can help TikTok open up the early market."

Therefore, when these big anchors go overseas, their core focus is on supply chain, operating model, etc.

In this area, the one that has lasted the longest among the big anchors is “Make Friends”.

In 2017, they established an overseas company in Indonesia, and in 2018, they started to incubate KOLs in Southeast Asia. To this end, they established the "Make Friends Overseas Business Department" and the "Make Friends E-commerce Academy".

Their main work overseas can be simply summarized into three areas: marketing, live streaming and helping merchants solve problems related to live streaming, short videos and store operations on the TikTok platform.

However, according to the information revealed by the head of the overseas business department of Jiao Ge Pengyou to Xinbang, advertising placement in overseas influencers' videos is the bulk of their revenue, accounting for 70%.

In addition to this, there is also the overseas training of experts... To put it bluntly, it is selling courses.

02

Sure enough, the end of everything is still selling courses.

In fact, even Three Sheep CEO Du Gang said that in addition to live streaming, they also need to provide supply chain for overseas bloggers.

Some big anchors have even more appealing methods of going overseas. For example, Simba goes to get the foreign supply chain and then sells foreign goods in China.

This method not only goes abroad, but also can turn around and eat domestic traffic. In May last year, he made sales of 830 million yuan and received more than 6.78 million orders during his first live broadcast in Thailand.

However, this model is stable, but in the final analysis it is still going around in circles in the overheated domestic market.

Therefore, Oriental Selection, which came late, did not follow this path, but decided to try its luck on TikTok.

No matter whether you are doing live streaming, supply chain or agency operation, you must try your best to catch the Tik Tok express ship to find a way to development.

According to the forecast of FastMoss Research Institute, by the end of next year, TikTok will achieve a daily GMV of 100 million US dollars in the United States, becoming the fourth largest e-commerce platform in the United States (the other three are Amazon, SHEIN, and TEMU).

In addition, Southeast Asia also exceeded 100 million US dollars per day.

Of course, these achievements are dwarfed by those in China.

But Chinese people, who have seen many Internet brawls, know a truth that has been repeatedly verified.

Tik Tok is now the world's third largest traffic pool after Google and Facebook.

In such a huge traffic pool, even a carrying pole can bloom.

What’s more, they are a group of professional pole carriers.

Author: Big Four WeChat public account: Bad reviews