The Red Star Capital Bureau found that many stores in the Gome Zhenhappy app have opened live broadcast rooms, and most of the stores still display the words of live broadcast previews, and even some live broadcast previews are 30 days later.
However, the number of viewers is not large, and even the washing machine that the anchor is introducing does not have a purchase link.
An employee of Gome admitted frankly to the Red Star Capital Bureau, "It's just for coping, which is equivalent to handing in an assignment."
Just 10 days before announcing the transformation of the entire store to the live broadcast business, on November 14, Huang Guangyu once again reduced his holdings of Gome Retail, cashing out about 69.05 million Hong Kong dollars; Nearly 120 million Hong Kong dollars.
Gome announced the transformation of all stores to live streaming
Gome Retail shares jump nearly 70%
On the afternoon of November 25th, Gome Retail (00493.HK), which has been in the haze of decline for a long time, ushered in the highest day of stock price increase this year.
As of the close of the day, the stock price rose by 40.34%.
What stirred up the market was the news of the transformation of Gome's national stores to live broadcasts.
The day before, Gome Electric announced that it would focus on live delivery of goods, build a nationwide store live broadcast network, and implement a private domain distribution system "National Pushing Hands", encouraging Gome employees and all types of people in the society to use their own private domain channels to share platform products and earn commissions.
This move has also been interpreted as Gome's "self-help".
There is no actual data on the effect of "self-help", but the stock price of Gome has "one step ahead".
As soon as the news of the transition to live streaming came out, not only Gome Retail, but the entire Gome department’s stock price rose against the trend.
Red Star Capital Bureau noticed that on the same day, Gome Financial Technology (00628.HK) rose by as much as 14.49%.
Gome Retail's share price rose by 65.55% in just four trading days from November 25 to the present.
According to Jiemian News, Gome said that the live broadcast business will cover more than a thousand stores and franchise stores in Gome headquarters and major regions.
Combined with local characteristics, live broadcast delivery for various home appliances, one live account for each store.
It can be seen from the financial report that as of the first half of 2022, Gome Retail has about 4,000 offline stores. If all of them cover the above-mentioned live broadcast business, each store has a live account, and its size should not be underestimated.
According to reports, Gome said that at present, the headquarters and stores in various places have fully launched the live broadcast business.
It is worth mentioning that, unlike New Oriental, LeTV, etc., which rely on external traffic platforms to carry out live broadcasts on Douyin and Taobao, Gome puts the live broadcasting position on its own Zhenhappy APP (including WeChat applets).
The True Happiness APP was renamed from the previous Gome APP. At that time, it was regarded as Gome's first big move after Huang Guangyu's comeback.
In addition to the live broadcast of the whole store, Gome also launched the "National Pushing Hands" plan.
Jiemian News reported that Gome stated that Gome employees and various social personnel can enter the "Xiaomeibangbang" platform to share products and earn commissions.
"Tui Shou" can use its personal influence to live broadcast live delivery on different platforms such as Douyin, WeChat, and True Happy. Gome will provide it with pallets, live broadcast venues, and technical support.
At present, Gome's "National Pushing Hands" has accumulated about 330,000 people.
It can be seen that Gome has made a lot of efforts to "self-help", but what is the real effect?
The viewing volume of the live broadcast room is only in double digits
Some employees said that the live broadcast is "coping"
On November 29, Red Star Capital Bureau entered the Zhenhappy APP and found that the live broadcast entrance was placed in a conspicuous position at the top of the homepage.
In the live broadcast interface, many Gome stores have opened live broadcast rooms.
At 3:00 p.m., there were 23 live broadcast rooms in the Zhenhappy APP showing "live broadcast".
In the Jiangxi Gome live broadcast room, an anchor wearing a red employee uniform was introducing a washing machine, but the clarity of the picture was not high, and some comments said that "the network is very slow."
The Red Star Capital Bureau found that in the shopping cart at the bottom left of the live broadcast room, there were Panasonic hair dryers, Galanz electric hot pots and other home appliances, but there was no purchase link for the washing machine that the anchor was introducing.
Another live broadcast room of Fuzhou Gome Zhongting Street store did not broadcast live, but played a promotional video.
In the live broadcast room of Shanghai Yongle Nanhui store, the anchor seems not to be proficient in live streaming, and some commented that "the anchor's voice is too low."
In the live broadcast room of the store, the anchor bowed his head and read the promotional activities on the leaflet, with little interaction.
Most of the above-mentioned live broadcast rooms have only double-digit views, and only Jiangxi Gome live broadcast room shows "5030 views".
However, the Red Star Capital Bureau found that most of the stores still displayed the words of the live broadcast preview, "will be launched in December", and even the live broadcast notice of some stores was 30 days later.
Subsequently, the Red Star Capital Bureau visited a Gome store in downtown Chengdu, which is also one of the stores being broadcast live on the Zhenhappy APP.
An employee of Gome told the Red Star Capital Bureau that the live broadcast room is on the second floor of the mall.
When talking about the live broadcast, the employee said frankly, "It's just for coping, which is equivalent to handing in an assignment." The employee said that the live broadcast task is assigned by the branch company, and the live broadcast is carried out every day, from 3 o'clock to 4 o'clock, and the live broadcast is 1 hour Left and right, the anchor is an employee of Gome or someone from an electrical appliance brand.
The above-mentioned employee also stated that such live broadcasts have been going on for more than a year.
The Red Star Capital Bureau learned that Gome did not start the live broadcast business just now. As early as January 2021, when the Zhenhappy app was launched, it stated that it would focus on social + live broadcast e-commerce.
On November 29, Liu Shasha (pseudonym), a former Gome employee who had participated in the live broadcast business, told the Red Star Capital Bureau that at the beginning of 2021, Gome began to promote the live broadcast business internally, and most of the new employees and interns in the branch were called to pilot.
In March 2021, the Beijing headquarters also launched a half-month live training.
Liu Shasha said that at that time, Gome internally gave certain subsidies to live broadcast and backstage employees, about 60 to 100 yuan.
Not only the employees, but also the managers and store managers of the Gome branch will also participate in the live broadcast, which lasts about 1 to 2 hours.
However, the live broadcast business has not improved. Until the second half of 2021, when Liu Shasha left, Gome was still promoting the live broadcast business. "There has been no traffic, no popularity, no one watches and no one buys."
In Gome’s publicity, the store-wide live broadcast launched recently is an innovative live broadcast business.
But what is the difference between innovative live broadcasting and previous live broadcasting attempts?
Will it really improve Gome's business?
Still the test of time.
To be the next "Oriental Selection"?
Expert: The entry time is late, and it is difficult to divert users
Since the beginning of this year, Gome has been in constant turmoil. At this time, the launch of the whole store transformation live broadcast is also regarded by the market as Gome's "self-help".
In public reports, relevant people from Gome said that live broadcasting has three main effects on Gome’s business transformation: one is a new revenue growth point, products participating in the live broadcast room will have greater discounts, and sales are higher than usual; In terms of drainage, Gome’s live broadcasts are mostly carried out on-site in each store, and it will also introduce the real-time marketing activities of the stores to play a role in drainage; the third is to enhance the cooperative relationship with manufacturers.
On November 30, Mo Daiqing, director and senior analyst of the Online Retail Department of the E-Commerce Research Center of NetEase, told the Red Star Capital Bureau that live delivery of goods has gradually become the norm in e-commerce, and the basic structure of the live e-commerce industry has been formed. Live broadcast on Douyin e-commerce, Kuaishou e-commerce and Taobao.
Gome entered late, and the other three companies have already seized the minds of users, so it is difficult to divert them.
Although it can take advantage of its own store advantages, it is not easy to do.
At present, Gome is facing a difficult situation, and it can be regarded as giving it a go.
Mo Daiqing said that looking at Gome's e-commerce history in the past two decades, Gome has been involved in home appliances, social e-commerce, smart homes, entertainment, etc. in terms of e-commerce business strategies.
But because I want to do too much, but I can't do it well, such as "True Happiness" wants to benchmark Pinduoduo, JD.com, Taobao, Xiaohongshu, Douyin, Kuaishou, etc.
In addition, the name of Gome E-commerce frequently changes, which cannot form effective recognition.
In addition, Gome entered Pinduoduo and JD.com successively, but failed to meet expectations.
Gome's constantly changing strategies have made it difficult for Gome to cope with it, and it has never been able to form its own advantages.
Cui Lili, director of the E-commerce Research Institute of Shanghai University of Finance and Economics, told the Red Star Capital Bureau that the current situation, the third-party platform public domain traffic competition is too fierce, the cost performance is not high, choosing to carry out live broadcast based on its own brand "True Happy" is also a difference oriented strategy.
But the effect depends on factors such as the live broadcast selection, the degree of integration with the electrical consumption scene, and the strength of discounts.
Red Star News reporter Qiang Yamian