"E-commerce" fiercely competes with live broadcasters in the 2024 era. It's not easy, you have to have a label - an affiliation.
E-commerce is in a booming competition. “Live broadcasting seller camps” bring in “Affiliates” to join and share. "Modern Trade" 2.2 billion baht "Bussy Bees" pops up 'Mediabuzz' to take on affiliate marketing business, generating sales of 11 billion baht ” 5 months in a row, sweeping 1 million orders, making “billions” in XNUMX year.
TikTok's rapid growth as an e-commerce platform has accelerated at an alarming pace. As a result, the shopping cart or affiliate retail model has become red waters due to the influx of influencers, KOLs, and content creators who want to make money from shopping carts.
Amid concerns about the longevity of this model or whether it's just a fleeting trend, the influx of numerous creators raises questions about whether affiliate marketing will completely transform the retail landscape, both offline and online.
Miss Natthida Sanguansin, Managing Director and Co-Founder of Buzzebees Company Limited.
Ms. Natthida Sanguansin, Managing Director and co-founder of Buzzbees Co., Ltd. , revealed that the fastest growing e-commerce platform right now is TikTok.
While the Affiliate Marketing landscape has a continuous growth rate, in 2016 it was worth 13 billion baht, in 2023 it was worth 17 billion baht and it is expected that in 2030 it would be 40 billion baht. It is considered a very fast growing market.
“In the beginning when the Affiliate Program was started, there were approximately 200,000 KOLs in Thailand. Today we see a picture of over 80 KOLs in the market, but there are actually around tens of thousands of them making sales and XNUMX% of brands use Affiliate Marketing because it really helps with sales.”
For its part, BUZZEBEES began expanding its store management service base on the TikTok platform in April 2023 and became a new channel that generated more than 1,000% in sales for customers within a period of 5 months.
Additionally, they launched 'Mediabuzz,' a new affiliate marketing business that will be their flagship for 2024. This model will address the need to generate sales through influencer marketing, combining data and AI to create an advertising model that generates higher returns than the average market.
In 2023, Mediabuzz can achieve total product sales of up to 2.2 billion baht through more than 20 million media followers of Mediabuzz and can generate a return on advertising costs of up to 100 times in both consumer products categories. consumer goods, electrical appliances, furniture, fashion products, financial products, tourism and it is expected that by 2024 this will create total sales of more than 4 billion baht.
“Our brands on TikTok have grown 500% year over year through our Affiliate Program through Live MC and VDO content. Our strategy is to Everywhere you walk, you'll find BUZZEBEES.
What we do is a KOL Fanpage or Influencer Page that has a speciality, such as "sales promotions". We go and acquire a page with promotions to tell stories about sales promotions only. And another strategy is to find a partner in the Content Creator group who has Advertorial as their main income. We go in and do affiliate work for the channel owner who will also earn On Top income from the page.”
Mr. Thanat Charuritthikrai Chief Executive Officer SHOPGENIX
Mr. Thanat Jarurithikrai, Chief Executive Officer of SHOPGENIX, revealed that the landscape of online commerce in the past was dominated by influencers who had a significant impact on consumer purchasing decisions.
But nowadays, influencers accept work from too many brands, making people not believe that they actually use the products. Plus, the online sales system makes it easier for ordinary people to become influencers or creators. Therefore, any creator who seems sincere and trustworthy may gain popularity and grow in this area.
"Originally, the era of influencers was the era of 'Pimrypie.' To illustrate, it was the era of 'Pimrypie.' Anyone who wanted to be an influencer usually had to create content. But making money from content took a long time and the share was small; for example, 1 million YouTube views only earned you a few thousand baht."
Some influencers who are good at stocking things like "Pimry Pie" have warehouses, product stocks, warehouses, and employees to pack things. delivery man I think that instead of making money from content, they turn to making money from selling things. As for those who don't have a warehouse, don't have capital, don't have money to stock products, they just make content and eat rice husks.
But now the world has changed and everyone can buy things through the affiliate system. Therefore, on the way to shaping yourself into an influencer, you can earn money from being an affiliate without having to own a product. No need to have a factory There is no need to have an employee pack the items at all. This has caused the industry to grow greatly during this period.”
Affiliate boom hits online "stock" business hard
However, while "sell-as-you-go" or "cart" online sales models are very popular, affiliate marketing and creators turning to live-streaming sales won't completely transform the retail landscape. Nevertheless, it will affect traditional online businesses, forcing those with large capital to stock inventory. Only those with substantial capital will be able to afford to stock large volumes of goods, allowing them to offer affiliate programs where creators can add products to their carts for sale.
Of course, it will have a heavy impact on all existing online businesses. Whether it's trading through Facebook, Shopee, Lazada, but not to the point where people stop buying things from retail stores or convenience stores like Makro, Lotus or 7-Eleven.
The "drug label" model sells "in the shopping cart" and will not die for 15 years.
The executive further said that Currently, consumer products sold online are often cheaper than those in retail or modern trade that are worth trillions of baht. Therefore, affiliates will definitely not die within 1-2 years. Because there are still people who know that general products sold on Tiktok are very cheap, which brings in 380,000 million baht from 4-Eleven and another XNUMX billion baht from Makro Lotus.
“So just making people who buy things at Makro Lotus knows that the stuff on Tiktok is cheaper and it doesn't know how much it will grow. And these also cause total retail sales to grow by another 48%.
Therefore, having more new creators entering the affiliate industry has no effect. Because this industry is still in its infancy, Tiktok has just started doing the affiliate system for only 2 years, so it will definitely be around for at least 15 years because right now China, which led us for about 10 years, is still booming.
In addition, the retail market grows every year by 3-6%, while online still consumes very little of the market share of main retail stores like offline. Tiktok's revenue is still only about 40,000 million baht.
while offline retail is in the trillions of baht Currently, the hottest retail platform is Tiktok, but the platform that generates the most sales is Shoppee, followed by Lazada, while Tiktok is number 3.”
Affiliate, a new competitor of modern trade
With the enormous market value of offline retail Therefore, even if there are 5 million or 10 million creators, creators are not competing with each other. But will compete with modern trade with a trillion baht level cake One of the sales techniques of live-stream sellers is often saying that the products they sell are cheaper than modern trade. Make purchasing decisions easier
It is the main factor that makes Affiliate grow because normally modern trade collects GP fee around 35%, but online they collect GP fee only 10%, making things online cheaper. This continues to cause people to want to buy more and product owners share a percentage of the sales with the Creator. This means that the Creator doesn't have to stock the products himself, which makes Affiliate grows even more
Shop Genix finds the affiliate channel booming, setting up a "live broadcast" camp to seize the Tiktok shop beachhead.
ShopGenix 's business model is similar to a "live stream seller agency" targeting the MCN (Multi-Channel Network) market. On TikTok Shop, there's a ranking of the top 10 "Creator" agencies with the highest sales.
Currently, SHOPGENIX has more than 6,000 creators on hand, but more than 4,291 of them have made sales, with combined monthly sales of more than 100 million baht.
The Titktok shop's MCN model originates from the Douyin platform in China. There are more than 60,000 Douyin/Tiktok agencies that provide influencers and Douyin/Tiktok coaches, more than XNUMX companies, but there are tens of thousands of fraudulent agencies. Makes brand owners feel insecure, causing Douyin/Tiktok Loss of indirect benefits from the brand possibly moving to another platform
Therefore, Douyin and Titktok have ranked the top 10 social networks as a guide for brand owners. “Shop Genix” is Tiktok official MCN that is guaranteed.
"We own an agency that has people like Pimrypie. We don't groom people to be beautiful, handsome, dancers, singers, or beauty queens, but to be 'live-streaming sellers.' We have an academy that teaches creators how to live-stream and sell products, and we act as a bridge connecting brands and creators. When brands talk to us, it's like talking to 4,000 live-streaming sellers, and the live-streaming sellers themselves don't have to go through the trouble of approaching brands."
The best-selling products on Shop Genix's affiliate system are the FMCG category, especially mother and child products, followed by food, fashion, and electronics when the creator goes live and sells products. An order has come in. The brand ships the product to the customer and when the order is completed, Tiktok transfers 90% of the money to the brand owner and 10% to the affiliate.
“We can find good products. And a large commission can be given to the Creator. For example, drinking water with a selling price of 10 baht, we can negotiate the commission from 1 baht to 2 baht. We will keep 20% of the commission or 20 satang and give 1.80 baht to the Creator. Therefore, all parties All win Brands don't have to waste a lot of time talking to creators. Creators don't have to tire themselves out talking to brands and get additional commission, and we get the difference from here.”
Overthrows Pimry Pie and holds number 1 Tiktok official MCN for 11 consecutive months.
Most recently, in May, Shop Genix achieved total sales of over 268 million baht from 890,000 orders. In the first half of June, sales exceeded 182 million baht, and it is expected that total sales by the end of the month may reach approximately 300 million baht.
By the Creator who made the highest sales of Shop Genix at 11 million baht from 20,000++ items, received a commission of over 2-3 hundred thousand baht.
“In addition, Tiktok has an official MCN ranking every month. Previously, Pimry Pie's company was ranked number 1 in the country in terms of sales. But from July last year until now, we have been number one in the country for 11 consecutive months.
And last year, we closed income from Tiktok, excluding Shopee and Lazada, of over 886 million baht. This year we set a target for sales on Tiktok of 2,000 million baht, which in the first 6 months of '67 we have already made over a billion baht in revenue. from the increase in the number of creators and the fact that creators are better at selling.”
By the editorial team bank finance
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