Further disclosure of domestic brands: top anchors require a commission of 80%, while top anchors need to sign the lowest price
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Recently, Chinese shampoo brand Fengsi revealed on its official Weibo account that "Chinese products are indeed quite difficult, but it is not Huaxizi who is difficult, but those hardworking and pragmatic Chinese brands who invest all their steel coins in research and production.In addition, Fengsi also revealed on its Weibo account that in the live streaming e-commerce industry, "domestic products require a starting commission of 40%, while foreign products require a starting commission of 20%, which is just a starting point
Recently, Chinese shampoo brand Fengsi revealed on its official Weibo account that "Chinese products are indeed quite difficult, but it is not Huaxizi who is difficult, but those hardworking and pragmatic Chinese brands who invest all their steel coins in research and production.
In addition, Fengsi also revealed on its Weibo account that in the live streaming e-commerce industry, "domestic products require a starting commission of 40%, while foreign products require a starting commission of 20%, which is just a starting point." If the brand wants to cooperate with major anchors, they also need to sign a "minimum price agreement".
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According to Fengsi on Weibo, if you want to enter the live broadcast room, the top anchor's live broadcast room may even receive a commission of 80%, Domestic products require a commission starting at 40%, while foreign products require a commission starting at 20%, which is just a starting point. A business representative from a top anchor told me personally that if you want to achieve cooperation, it is generally recommended to offer 80% commission for the beauty category. If the commission is low, the position will be given to someone else. That is to say, excluding logistics fees, packaging fees, and labor costs, leaving the product cost no more than 10%, which is beyond my imagination. I don't know how peers do it, anyway Feng Si cannot do it
Fengsi also revealed that if the brand wants to cooperate with major broadcasters, they also need to sign a "minimum price agreement", requiring all other channels (including but not limited to other live streaming rooms, physical stores, and online stores) to have higher selling prices than live streaming rooms.
It is understood that the cosmetics company where Fengsi brand is located was established in 2019 and is located in Huadu, Guangzhou. Nandu reporter found that Fengsi brand has not established a store live broadcast room on Taobao live streaming platform. Fengsi has not entered the Tiktok e-commerce platform.
Previously, it was exposed that Hua Xizi had given high commissions to top anchors. A beauty live streaming e-commerce practitioner told Nandu reporters that the commission ratio she learned was 75%. Regarding this, Hua Xizi replied to Nandu stating that rumors on the internet about Hua Xizi's return of commission to Li Jiaqi, ranging from 60% to 80%, or even more than 100%, are false.
For the "lowest price" of the live broadcast room of the big anchor, previously, Li Jiaqi and Weiya had both taken advantage of L'Oreal for the "lowest price". During the Double 11 period in 2021, there were consumer complaints that a product purchased from L'Oreal's self operated live streaming room in Paris was lower than the price of the two top broadcasters, Li Jiaqi and Weiya's live streaming room, breaking the "lowest price" claimed at the time. Subsequently, Li Jiaqi and Weiya successively forcefully called on L'Oreal in Paris to "suspend cooperation", "provide a reasonable solution within 24 hours", and "if the brand is not resolved, the live streaming room will compensate".
This is also the first time that the difference between the live broadcast room of the top anchor and the brand side regarding the "lowest price" has been brought to the stage, ultimately ending in the brand side being "soft hearted". In the last few minutes of the "24-hour ultimatum" by the two anchors, the brand released a notice stating that it would compensate users who purchased related products on October 20th through Li Jiaqi and Weiya's live streaming by providing coupons and members.
Interviewer: Nandu Reporter Wang Chenchen
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