Last night, Liu Qiangdong's AI digital persona (hereinafter referred to as "Liu Qiangdong") made its debut.
While there have been many "avatars" of celebrities and top anchors active in live streaming rooms before, the appearance of a technology-created "stand-in" for a top e-commerce figure like Liu Qiangdong is unprecedented in history.
What signals did Liu Qiangdong's live streaming debut send?
Not all categories are suitable for "Liu Qiangdong"
At 6:18 last night, "Liu Qiangdong" appeared in the live streaming room. In less than 50 minutes, "he" shared his exercise habits, repeatedly praised the excellence and efforts of "采销兄弟" (Cai Xiao Brothers), and introduced several brands of air conditioners and televisions from Hisense, Midea, and others in one breath.
There are two completely different opinions in the industry about this live streaming model.
Some people believe that using new technology to create digital personas for live streaming is a good business. This model of live streaming is replicable, cost-effective, and can fill the idle time slots after live broadcasts by real people. Moreover, JD.com has a large number of self-operated products, and hiring a large number of anchors for explanation is costly. If digital personas are used for live streaming, they can be embedded in many products.
However, some people bluntly say that emotional communication is the most important thing for live streaming sales. For example, Li Jiaqi gained huge attention by interacting with fans. But it's difficult for digital avatars to establish a connection, they may be good for novelty, but lack sustainability.
In fact, Sina Technology found in the live broadcast that "Liu Qiangdong" only had a few actions and expressions throughout, and the tone was also stiff. Although there was interaction with netizens, it seemed no different from reading a script, rather than genuine interaction.
According to statistics, twenty million viewers watched this live broadcast, and the popularity of "Liu Qiangdong" is beyond doubt. However, in the process of widespread promotion in the future, consumers may inevitably experience visual fatigue from him, after all, the most important function of live streaming is real-time interaction and providing emotional value.
More importantly, not all categories are suitable for AI live streaming. Some analysts believe that AI live streaming is more suitable for products with strong technical attributes such as digital products and home appliances, but it still faces challenges in achieving widespread popularity for more personalized products like clothing and cosmetics.
JD.com previously stated that after uploading product links in the backend of the live broadcast, the Yanxi digital persona can intelligently "read" product details, find key specifications, selling points, and other information, automatically generate live broadcast copies, and go live 24 hours a day; what used to take five hours for merchants to write live broadcast scripts can now be generated with one click, improving the efficiency of live room operation; the cost of virtual anchors is less than 1/10 of real people.
However, the capital market did not seem to have an obvious reaction to the debut. JD.com announced the launch of AI Liu Qiangdong's live streaming on the evening of April 15th. As of the close on April 16th, JD.com's share price fell by 2.3% to 98.85 yuan.
In the live broadcast, "Liu Qiangdong" repeatedly mentioned terms related to "low prices," such as "benefitting consumers," "bringing low-priced goods to consumers," and "affordable prices," indicating JD's current eagerness to promote "low prices."
It's well known that Pinduoduo, which relies on low prices, has dealt JD a heavy blow. Comparing the financial data for 2023, although Pinduoduo's total revenue is less than JD's, its revenue increased by 90% year-on-year, with a net profit margin of 24.2%, while JD's corresponding figures are 3.67% and 2.23%.
Facing a rapidly growing competitor with higher profit margins, offering low prices has become imperative for JD.
Previously, JD primarily focused on self-operated business and pursued a path of quality e-commerce, which limited the space for implementing low-price strategies. In 2023, JD introduced the "100 billion subsidy" strategy. JD Group CEO Xu Ran also stated at a financial performance meeting that in 2023, JD would accelerate the construction of platform ecology and low-price awareness.
However, relying solely on JD's own subsidies to offer low prices is not enough. In the past year, JD has taken various measures to attract third-party merchants (3P merchants). Specifically, JD has implemented a more equitable traffic policy for 3P merchants, allowing both 1P (self-operated merchants) and 3P to compete. Whoever offers lower prices and more product choices can receive more traffic.
Previously, JD Group CFO Shen Su also stated that the focus in 2024 would be on attracting more small and medium-sized merchants from industrial belts and enriching the supply of goods.
In this live broadcast, "Liu Qiangdong" also mentioned that JD does not charge placement fees for procurement and does not take commissions from influencers. While benefiting consumers, JD is also attracting excellent merchants. Financial data shows that in 2023, the number of 3P merchants on JD increased by 188% year-on-year, with the number of new merchants increasing by 4.3 times within one year.
Currently, JD is still in the midst of fierce competition from rivals. While the strategy of low-price subsidies and attracting merchants may cause JD to "bleed" in terms of operations, it is a necessary "growing pain" in the long run.
Will "Liu Qiangdong" be the booster for JD's counterattack? Only time will tell.
