Recently, a notice issued by Changqing Market inside Sijiqing in Hangzhou once again aroused social attention. The announcement pointed out that businesses and outsiders are prohibited from live broadcasting in shopping malls, and will be given a written warning upon first discovery. If found again, the equipment will be confiscated and fined 2 million. The third time it was discovered, the equipment was confiscated and a fine of 4 million was imposed.
Why is the platform so difficult?
In the past two years, live broadcasting has become very popular, breaking geographical restrictions and becoming a new trend. Sijiqing, as everyone in the textile industry knows, is a famous clothing wholesale market and many clothing stores purchase goods from there.
Because it is a wholesale market, the prices are naturally cheap and the styles are rich. When consumers watch live broadcasts, to a large extent they are looking for cheap prices, and their needs overlap to a large extent. For consumers, the same product was purchased at a retail price before, but now it is at a wholesale price. Consumers naturally like it, so there is no need to worry about traffic.
But this is not always the case. Sijiqing is a wholesale market and essentially a platform. It faces merchants such as clothing stores, and merchants face consumers. However, if Sijiqing relies on live broadcasts to directly face consumers, , which is tantamount to competing with one’s own big customers for business.
The dealers and physical stores in the middle are themselves a very large and stable group, and they also need to eat. If the platform itself competes with them for business, it is tantamount to offending them. Offending large customers for profit may be profitable in the short term, but it is not cost-effective in the long term.
From Sijiqing’s point of view, he is a platform, and the live broadcast software is also a platform. The live broadcast merchants make money, but they are essentially customers of them, so it is normal to ban them. If Sijiqing really wants to do online shopping, the way out may be to develop in the direction of “Xiyin” instead of “going it alone”.
Upstream and downstream industries have transformed
But on the other hand, the trend of live broadcast is there, especially clothing live broadcast.
Data from Soochow Securities shows that from April to May in 2022, Douyin’s GMVIn the structural distribution of (platform transaction volume), the clothing and underwear category contributes the highest sales, accounting for 34% and has long occupied the first place. throne.
During the visit to the market, more than one Bu boss said that regular business has become increasingly difficult to do. He watched local companies’ live broadcasts doing very well and wanted to join in.
Consumers don’t care how many twists and turns there are in the middle channels. The same clothes, even the materials used and the processing factories are the same, but the prices are different. If they can choose, of course they will choose the cheaper one.
Textile people who make fabrics also lamented that in the past, orders were placed by some large brand customers, but in the past two years, more and more e-commerce orders have appeared, all of which are small orders ranging from hundreds to thousands of meters. The order is urgent. In the words of Boss Bu, these orders are “earning hard money.”
Although these orders are relatively useless to cloth bosses, they cannot stand up to consumers’ liking. No matter what you do, you must ultimately serve consumers. You can only continuously optimize production to meet consumer demand.
Therefore, it can be seen with the naked eye that there are more and more ready-made fabric supermarkets on the market, not just some conventional products such as pongee and polyester taffeta. The editor has learned that many buyers now go to companies that make high-end fabrics. When I first come up, I will also ask if there are any fabrics. Some down jacket fabrics, elastic fabrics, and high-end women’s clothing fabrics are also in stock now. Even some fabric companies with higher unit prices are preparing to switch to spot products due to customer requirements.
Sijiqing’s ban on live broadcast is another impact of e-commerce on traditional clothing channels. With the strengthening of domestic infrastructure, logistics speed is getting faster and faster, and more and more consumers are accustomed to online shopping. The physical industry has suffered The impact will only increase, not weaken, and upstream and downstream supporting facilities are also shifting in this direction. Although Sijiqing has banned live broadcasts, as long as the demand is there, there will always be people doing similar things. If Sijiqing does not do it, there are still five Ji Qing, Liu Ji Qing, this is the general trend and it is difficult to resist;
But on the other hand, many properties of clothing can only be understood through personal experience. Many services in physical stores cannot be replaced online, but the market in this area is becoming smaller and smaller.
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