TVB artists promote products on Taobao: Many watch the shows, but few pay for them

This article starts with the cooperation between TVB and Taobao, and discusses TVB's transformation in live streaming and sales, and also puts forward transformation suggestions. It is suitable for students who want to understand how traditional IP can be quickly realized after entering e-commerce.

There is no “3, 2, 1 to link”, no “all girls”, and no “buy it, buy it, buy it”, and there is not even the classic TVB line “The most important thing in life is to be happy”.

At 18:00 on the afternoon of March 7, with the entry of Hong Kong artist Sharon Chan, TVB’s first live broadcast after entering Taobao arrived as scheduled.

But people soon discovered that there were no gorgeous lights or restless music in the live broadcast room, and no anchors were shouting and urging people to place orders, click links, or buy, buy, buy. There were only simple product introductions, and occasional small stories about friends, parents, and lovers, conveying a sense of sincerity. At the same time, the anchors spoke Cantonese throughout the broadcast, and the assistants translated off-camera, so the camera was only focused on the anchors and the products.

These characteristics even made some people think of the live broadcast room of Oriental Selection. What’s interesting is that after TVB entered Douyin last year, it opened three e-commerce accounts, namely TVB Knows Goods (Hong Kong Selection), TVB Knows Goods (Delicious Selection) and TVB Knows Goods (Hong Kong Strict Selection), which more or less showed the shadow of New Oriental.

Judging from TVB’s series of activities on TikTok and Taobao, TVB’s ambition for its “e-commerce dream” is no less than that of New Oriental.

According to Taobao's official data, as of midnight on March 8, TVB's first 6-hour live broadcast had sales of over 23.5 million yuan, a total of over 4.85 million viewers, a total of over 3.2 million viewers, and a peak online audience of over 30,000. How is this achievement? Compared to Zhang Lan, who also just joined Taobao, her first live broadcast had over 3 million viewers. For a "newcomer", TVB's performance is remarkable.

After the first live broadcast, the share price of TVB's parent company, TVB, continued to rise sharply. Some industry insiders mentioned that the market hopes that TVB will become the second Eastern Selection, so funds have been flowing in for several consecutive days. So, can TVB become the second Eastern Selection?

Previously, TVB announced its cooperation with Taobao, and the two parties are expected to jointly launch at least 48 live broadcasts this year. If this trend continues, will TVB make a lot of money on Taobao?

After carefully observing TVB's Taobao live broadcast, Kaibo Finance found that whether it is the color of the goods brought by Hong Kong artists, product style, live broadcast positioning, or the focus on the market and target audience, their performance is far behind that of Oriental Selection. Judging from the current situation of Taobao's live broadcast and the entire product environment, it is not easy for TVB to take advantage of Taobao to soar.

1. TVB’s first battle on Taobao: Popularity but no characteristics?

On March 6, TVB contracted actor Chen Hao posted a video on his social platform, saying that he would start his live broadcast debut on Taobao on the evening of the 7th, bringing everyone a Hong Kong drama-style shopping experience. In response, many netizens said that TVB has started live broadcasting, and the actor's ultimate goal is to bring goods.

As early as March 1, there was news that TVB announced that it had reached a cooperation intention with Taobao through its subsidiary Shanghai Jade Oriental Communication Co., Ltd., and Jade Oriental's e-commerce account "TVB Knowledge" entered the Taobao live broadcast room. TVB expects that this cooperation can bring it tens of millions of Hong Kong dollars in revenue.

So how was TVB’s first battle on Taobao?

Kaiboli Finance noticed that after Chen Hao officially announced his entry into Taobao, the number of fans of TVB Shihuo continued to increase. Before the show started, the number of fans exceeded 8,000. As of press time, the number of fans exceeded 130,000, but this scale can only be classified as middle range among Taobao anchors.

In terms of the anchor's characteristics, the bilingual live broadcast in Cantonese and Mandarin is a highlight. TVB has also announced that it will create a "Hong Kong drama-style" live broadcast atmosphere to allow consumers to immerse themselves in TVB's characteristics.

Before the broadcast, the Taobao live broadcast waiter introduced that TVB live broadcast room will bring many benefits to fans on the grounds of "good luck in the opening of the seafood shop". People who have watched the TVB classic TV series "Heart of Greed" are no strangers to the seafood shop. The character Tong Zhian played by Moses Chan is deeply connected with it. The scene of Moses Chan selling abalone in the live broadcast room also made many fans say "my youth is back".

Image source: TVB’s Taobao live broadcast room

But unfortunately, Chen Hao in the live broadcast room did not have the eloquence and eloquence of Tang Zhian. Instead, his Cantonese made most people feel distracted. The story plots of classic and popular Hong Kong dramas were there, but the feelings failed to drive sales. Currently, the sales of Uncle Tak's abalone that he promoted are 600+.

Judging from the overall products sold, TVB's first live broadcast covered a relatively comprehensive range of categories, including beauty, home care, food, electrical appliances, clothing, technology products, travel packages, gold, etc., with prices ranging from ten yuan to ten thousand yuan.

Brands range from small and medium-sized brands to international brands, including Panpan, Wahaha, Vinda, McDonald's, SK-II, Coach, Shiseido, etc. In terms of discount strength, the anchor has repeatedly recommended the purchase of iPhone14, and the highest discount given is a reduction of 940 yuan, which can be purchased within 6,000 yuan. The product with the highest sales volume shown on the sales page is Hong Kong Jenny Cookies Smart Bear Biscuits (79 yuan per box, 329g), with sales showing 7,000+.

"I want to buy authentic Hong Kong specialties," "Can there be more duty-free products?" and "Can there be more overseas products?" After TVB officially announced its entry into Taobao, many people left messages on its Weibo. However, judging from the types and prices of products on sale during the first live broadcast, these consumer demands were not fully met . There were not many overseas products, and the discounts were not high, and many models were even out of stock.

Screenshot of TVB's products on the shelves

Image source: Taobao

At the same time, there are quite a few anchors live streaming on Taobao, among which Li Jiaqi has over 10 million views; Lin Yilun has 2.7 million views; Hu Ke has 1.85 million views; Luo Yonghao has 2.41 million views; Zhang Lan has 450,000 views... and there is a high degree of overlap between TVB's products and the products they promote.

Judging from consumer feedback, TVB's Cantonese language characteristics bring a certain appeal, but the immersive atmosphere of Hong Kong dramas is almost absent.

The atmosphere of the entire live broadcast room is still that of a simple sales scene, which is far from the nostalgic Hong Kong drama feeling that fans want.

2. TV dramas are not working, live streaming is a new job

"The income from a live broadcast is 60,000 Hong Kong dollars, which is equal to three months' salary." TVB artist Dai Yaoming said in an interview with the media that he could earn 60,000 Hong Kong dollars from a live broadcast, which is equal to his three months' salary at TVB, even though he is not well-known.

TVB's end of live broadcasting has left many fans sighing with regret. The classic screen image has to shout "buy buy buy, link up on 321" in the live broadcast room, marking the end of their youth. But the fact is that TVB has had to transform.

Li Ruigang, chairman and CEO of China Media Group, admitted in 2021 that TVB’s current development is very bad and it has reached a moment of life and death where “if it is not pulled up, it may be gone.”

As the largest free TV station in Hong Kong, China, TVB has a history of more than half a century. The hundreds of TV series it has produced have not only set record ratings, but have even influenced the growth of a generation. However, with the emergence of new media and new TV forces, more excellent content is squeezing TVB's audience market.

TVB's financial report shows that since 2018, the company's operating income has dropped from HK$4.477 billion to HK$2.899 billion in 2021, recording losses for four consecutive years, with a four-year decline of 54.43%. TVB's 2022 interim report data showed that during the reporting period, the net profit attributable to the parent company was a loss of HK$224 million, with a loss of HK$0.51 per share. The company stated that the main reason for the loss was the decline in the operating costs of the TV station and advertising revenue.

How to pull it up? For actors, there is no escape from variety shows and live streaming.

In terms of variety shows, in the past two years, many TVB actors have come to the mainland to develop. Whether it is the brothers from the Greater Bay Area who have become popular on the entire Internet, or the old actors in "Infinite Beyond Class" who have frequently been on hot searches recently, it has become the norm for TVB actors to "go north" for re-employment.

TVB actors in "Infinite Beyond Class"

Image source: Baidu Encyclopedia

In terms of live streaming sales, unlike other individuals who fight alone, small groups working in teams, and anchors supported by MCN, TVB's live streaming sales has the posture of "dragging the whole family".

In the 2022 semi-annual report released by TVB, the word "e-commerce" was mentioned 32 times, and the transformation of e-commerce business has become the focus of TVB. As early as 2021, TVB acquired e-commerce platforms to expand its e-commerce business in Hong Kong. Last year's entry into Douyin was also an important measure for the official launch of cross-border e-commerce services.

TVB, which has settled in Douyin, has incubated the three e-commerce accounts mentioned above, which have become a training ground for TVB's key training. In the year since the establishment of the accounts, they have broadcast live and recommended products from time to time, and have cultivated a number of Cantonese anchors who sell goods. Currently, the total number of fans of the three accounts exceeds 900,000.

TVB’s three accounts on Douyin

In addition, many artists under TVB have also established their own accounts on platforms such as Douyin, Kuaishou, Weibo, and Xiaohongshu. In the daily life record videos they post, product recommendations, advertising placements, unboxing reviews, and other content are common.

Regarding entering Taobao, analysts in the e-commerce field said that this is an inevitable choice for TVB . On the one hand, Douyin's data-oriented traffic model does not allow TVB, which is small and medium-sized, to have enough traffic, so the possibility of explosion is low and growth is weak. On the other hand, after Taobao turned to content cultivation, it is currently in urgent need of supplementing live broadcasting power and creating a new content ecosystem.

Kaibo Finance found that TVB's related accounts on Douyin are marked as belonging to Qiqizhengzheng MCN, which is operated and managed by Guangzhou Qiqizhengzheng Media Co., Ltd. and Shanghai Zhenshihuo Trading Co., Ltd. The two companies were established in 2022 and 2021 respectively, and are wholly owned by Guangzhou Maiduidui Technology Co., Ltd. It is worth noting that Chen Hao and Chen Minzhi are marked as belonging to Maiduidui MCN. This shows that TVB has made sufficient preparations for the long-term development of its e-commerce business.

After TVB announced its cooperation with Taobao, the stock price of TVB's parent company Television Broadcasting Co., Ltd. increased by 66.06% in two trading days. After TVB's first live broadcast on Taobao, according to data officially released by TVB, on March 8, Television Broadcasting Co., Ltd. surged by more than 50% during intraday trading, reaching a new high since February 2020. In the past four trading days, it has accumulated a rise of more than 166%.

3. Sentiment is not a panacea, what else can TVB rely on?

TVB enters Taobao Live, sentiment is the absolute trump card.

Especially for those born in the 80s and 90s who grew up watching TVB dramas, the familiarity still brings about an empathy effect. After all, the return of people who have been silent for several years is still a catalyst for fans' emotions. In addition, in this live broadcast, the character settings of Chen Hao and Chen Minzhi also continued the character settings in Hong Kong dramas, and the language, actions, expressions and other elements tried their best to create an emotional experience for the audience.

There is no doubt that most people who watch TVB live broadcasts do so for the sake of sentiment. However, if we look at the Hong Kong stars who sell goods through live broadcasts on Douyin, they generally use classic lines, makeup, and character images to attract traffic, and then sell goods through live broadcasts. However, not many people can develop through this, and many fail.

For example, Li Guolin, who was hailed as the "worst live streaming celebrity", did not receive any orders during his eight-hour live streaming; only two hundred people watched Lu Songxian's live streaming room; Bobby Au-yeung even parted ways with the live streaming company after testing the waters and said he would no longer live stream; Jordan Chan was questioned for faking live streaming data; Chen Haomin was once caught in a vortex of selling fake goods... Irene Wan, Pinky Cheung, and Carman Lee's live streaming sales were also lukewarm.

Feelings can attract fans’ attention, but monetization requires capturing people, goods, and venues, which are the core capabilities in the competition of live streaming e-commerce.

First of all, it is people. TVB can rely on sentiment to enter the market, but it needs more people to stay. Investment analyst Gao Jia said in an interview with Beijing Business Daily that TVB's business trends in the mainland market can attract high attention, which is inseparable from its audience popularity accumulated over many years of development. The fan base built by its artists through film and television works and social platforms in the early stage of the company's entry into e-commerce can also form a certain commercial value.

Under TVB's official Douyin account, TVB's classic image videos dominate. Previously, there were rumors that TVB successfully renewed Chen Hao's contract with a "sky-high price" of 30 million, which is unprecedented for TVB. However, TVB cannot rely on its past achievements and needs to develop new "human" resources. This "human" needs to be integrated with TVB's tone and not be separated from it, maintaining its own characteristics, while also considering the market's acceptance and the integration of the platform.

At present, although a group of amateur anchors has been formed in TVB's Douyin account, their popularity is not high. After switching to Taobao, they will need to adjust the form of communication according to the platform's tone.

TVB's Tik Tok Live Room

The second is the goods. The bread, cola, and potato chips that can be seen everywhere in other anchors' live broadcast rooms are not attractive. As mentioned above, consumers pay more attention to overseas products and Hong Kong specialty products when it comes to TVB's goods. This is the biggest feature compared to other anchors on the market. How to ensure the richness and diversity of products while ensuring that the goods are genuine and of good quality is the key to strengthening subsequent consumer stickiness. In addition, overseas products have higher requirements for logistics, transportation, supply chain construction, etc. If there is no strong hard power, it will be difficult for consumers to pay.

In addition, it is worth noting that in Douyin, TVB labeled Chen Hao as a beauty and cosmetics live broadcaster. This tendency was also confirmed on Taobao. In this live broadcast, Chen Minzhi often called the people who entered the live broadcast room "sisters" and "BBs", which shows that her target users are mostly women. Mid-to-high-end beauty and cosmetics brands are also the main products sold by TVB live broadcasts.

Data shows that two-thirds of the beauty brands on the market are tied to Li Jiaqi, and consumers have already formed a sense of trust in him that cannot be shaken in a short period of time. In contrast, TVB's advantages in this regard are reflected in the two aspects of overseas beauty direct mail brands and cost-effectiveness, but these products in TVB's live broadcast room are currently facing problems such as out-of-stock, low cost-effectiveness, and small quantities.

Some beauty products in TVB Taobao live broadcast room

The last is the venue. This not only involves the creation of the actual live broadcast venue, but also comes from the scene perception presented to the audience.

"Hong Kong drama-style" live broadcast is a major feature and the key to breaking through, but this experience should not be limited to Cantonese sales and simple background boards. It also requires the host to drive the atmosphere, a more fitting dream linkage between products and characters, and the scene setting by the assistants. After entering Taobao, TVB needs to think about how to improve the efficiency of content monetization.

In contrast, the popularity of Oriental Selection is due to Dong Yuhui's personal characteristics and the unique attributes of the products he sells. Subsequently, the establishment of roles for the entire team, the improvement of the product supply chain, and the promotion of self-built factories have enabled it to continue to grow.

There are many Internet celebrities who "leave Douyin and join Taobao", but none of them are betting everything on Taobao. Dongfang Zhenxuan has opened accounts on platforms such as Kuaishou, Xiaohongshu, JD.com, WeChat, and Weibo, and built its own "Dongfang Zhenxuan" APP. After Zhang Lan joined Taobao, she continued to live broadcast on Douyin. After all, multiple platforms are an important way to maintain exposure.

But it is worth noting that the live broadcast record of TVB in Douyin has been closed, and no relevant live broadcast dynamics are displayed. Taobao announced that the next TVB live broadcast will be on March 22, 15 days later.

TVB e-commerce business group president Cen Dizan once said that TVB has a certain degree of penetration in the Greater Bay Area and the Mainland, with a large flow of artist fans and a healthy customer retention environment. TVB's e-commerce business will focus on deepening the flow of people, logistics, capital and other aspects in the future.

After TVB embarks on the road of e-commerce, it will still need more time to adjust and explore.

Author: Ji Xiaoling

Source: WeChat public account: "Kaiboli Finance"