This is a frequently asked question in the emerging trend of livestream selling, especially booming on the TikTok platform.
Livestreamer ViruSs: The common trend is that businesses have to lower profits to increase sales rates
During the High-Quality Vietnamese Product Announcement Ceremony for 2024, livestreamer ViruSs expressed his personal opinion: “It is true that livestream selling offers many discount programs for customers, and many people also wonder if businesses can still make profits when they offer such large discounts. I believe that now is the time for businesses to accept lower profits and profit margins in order to increase the number of products sold. This is also the common trend in the current context. In China, all businesses participating in livestream selling have been doing the same thing: Lower profits in order to increase the quantity of products sold.”
ViruSs also believes that Vietnamese businesses should make an effort to learn livestream selling as it is the cheapest and most effective method. To do livestream selling, businesses only need to spend about 40-50 million VND on all the necessary equipment, which is much cheaper than investing in physical stores. Meanwhile, the customer reachability of livestream selling is superior to all traditional selling methods. For example, reports have shown that even the lowest-performing TikTok livestream page can reach more than 250 people.
“You don’t even need to hire famous people, as that can be expensive and ineffective. It is the business owners and their employees who sell the products effectively. That is zero-cost marketing, but it is the most effective method nowadays,” said ViruSs.
Image: Livestreamer ViruSs.
The current trend is shoppertainment, which is a popular revolution in China where people both shop and entertain themselves at the same time. E-commerce started in the Chinese market in 2005, and by 2016, they had two platforms: Classic E-commerce and New Generation E-commerce. Moreover, they have even built schools to teach livestreaming, inviting foreign experts (including ViruSs himself).
On the other hand, when talking to Vietnamese businesses, ViruSs noticed a contrary trend which is a hesitation about technology. “I worry about Vietnamese businesses. While we have multiple options for traditional selling methods, from 2024, we won’t have many alternatives. If we can’t keep up with livestream selling technology, we will be replaced,” said ViruSs.
Nerman CEO: Discounting does not guarantee sales
From a realistic sales perspective, Mr. Đặng Thanh Định – CEO of Nerman – a company that sells products for men such as shower gel, perfume, and lipstick, said that the company has noticed Vietnamese customers changing quickly.
“Many people think that when it comes to e-commerce, you have to offer large discounts. But in reality, customers focus more on the experience. For the past three years, Nerman has increased its prices by 30% and even during “Double day” (a day where online sellers often offer discounts to customers), we only decrease the prices by 5%. Instead, we focus on giving customers emotions, such as giving gifts, making customers feel valued from the moment they receive the well-prepared gifts,” said Mr. Định.
According to Nerman’s CEO, in the past, sellers at trade fairs used to come up with combinations of entertainment programs, games, music, etc. to serve the audience – the buyers, but nowadays, entertainment value in online selling culture is highly valued.
“Through leading e-commerce platforms that are leading the Shoppertainment trend like TikTok, we have seen that customers are becoming more sophisticated. Livestream selling content also has to be sophisticated and touch customers’ emotions,” said Nerman’s CEO.
Currently, Nerman has about 16,000 videos per month. The content of those videos on the platform emphasizes transparency and how to make it attractive to customers so that they want to experience it. It is impossible to deceive customers because customers nowadays are very smart. Sometimes, positive comments about a product don’t have to come from the company but from actual users. Not all comments have to be positive. Customers see all the information as real and trustworthy…
Image: Representatives from businesses sharing about livestream selling on the TikTok platform.
L’Oreal Vietnam Nam: New content is the aspect that businesses need to pay attention to when participating in livestream selling
Sharing this perspective, Mr. Tiến Đặng – Head of Digital Marketing at L’Oreal Vietnam’s CPD branch – stated that in the chaotic and challenging world of e-commerce, livestream sellers and content creators typically prioritize promotional activities. However, from his point of view, the most important aspect is quality content that creates “vibes” – life emotions – and relates them to product value.
In many situations, sellers and businesses are faced with the choice between “selling” and marketing. Mr. Đặng believes that not everyone who livestreams aims solely to sell products. Apart from selling, there are also aspects such as marketing, brand building, and creating additional value for customers…
The “Shoppertainment 2024 Report: The Future of Consumer and Commerce in Asia-Pacific” also acknowledged that on average, only 21% of users are influenced by promotional programs when considering purchasing decisions. This rate varies by country: 12% (South Korea), 27% (Japan), and 41% (Indonesia).
