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No this is not an error in the subject line, this is the Live Streaming Wars.
And it is already a wild wild world.
Two steamers sold more in 1/2 day than almost the ENTIRE REVENUE OF ALL OF TWITTER IN AN ENTIRE YEAR.
Actually, let's give this some context, shall we? Two Chinese teens talked into a phone for 12 hours in varying forms, and made more than:
Wanna learn how you can make some $$ too? Okay, probably not billions... BUT we have 8 step by step playbooks that can take you to 5-7 figures if you execute.
PS, this is a short version this week because myself and the crew are at CONTRARIAN UNCON! You can get over the FOMO by getting into our cashflow group we'll have a summary lesson. Oh and an ice machine playbook coming at ya..
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Today in < 10 minutes → We’re Going to Dive into:
- A Contrarian Rant → The Internet Will Change Your Life If You Let It
- Two teens sold billions → Via Livestream in China
- How Much Did they Make → Can they do it again?
- WTF is Live streaming → Who are the Players?
- How Do We All Get in on the Action?
BUT FIRST.... A Rant
The Internet Can Change Your Life
Naval Ravikant said, "The internet has massively broadened the possible space of careers. Most people haven't figured this out yet."
Everything you are about to read proves this is true. Most people will read this article and marvel that two youngsters became billionaires over the last 2 years and outproduced companies that have existed for decades... in two 12 hour sprints. But that is not the story here, the story is that the internet used strategically is the greatest form of leverage we have ever seen.
99.9% of the population, probably including you, is not even beginning to tap into this tool. Oh, we use the internet, we consume it. But most do not sit and ask themselves this one question:
- Have I taken my superpower and applied the internet to it?
There are 7.7 billion people on this rock spinning in the ether, before the internet it did not pay to be who you are uniquely. It paid to fit in, to not be cast aside. But with the advent of the internet what pays is being uniquely who you are and finding the others who want exactly that.
This article isn't about livestreaming, although it is, it is about two people who realized what their strengths were and applied the internet to it. So as you read ask yourself, have I best leveraged the technology that our ancestors would have deemed magic.
EXPLAIN THIS TO US?
Alright back to two people selling more in 12 hours, while raising zero funding, then 4 companies who have cumulatively raised billions.
Pics or it didn't happen... ok.
How about screenshots? These are taken off of Alibaba's Taobao shopping platform.
- These two teens sold 18 billion RMB (or $3B US) in 12 hours. Top row: total amount sold in RMB. First row: SKU # (aka product), number of items sold, number of items sold for their most popular SKU Second row: average price per order, number of followers gained, dollar amount sold for the most popular SKU (in 100M RMB)
Before you say this is a fluke, look at what they did last year, almost 1/3 of the total they did this year. So in 2020 they sold a bit over a billion and this year they did $3Billion in sales. My mind is blown.
How much did they make?
Well, according to Forbes these influencers make on average 20% of the product price for selling goods so:
Just a cool $300 million dollars for selling normal name brand products. What kind of products you ask? Well, Austin Li (Li Jiaqi) sold products ranging from Shiseido lotions to Apple AirPods while Viya sold beauty products, clothes, and perhaps surprising to me things like Dove soap?
What size is this market?
Austin Li live streams every day, to his 20 million closest friends. That's higher than any recorded live stream of an influencer in the US. But wait, there's more, they reported 250M people showed up during this year's live streaming for Shopping Day.
What's the point: IDK. I guess you can literally make money doing just about anything these days so what's your excuse eh?
But also - I think this market is fascinating, what will the future hold? In case you're apparently out of the know like me...
What is live-streaming?
Live-streaming is part variety show, part infomercial, part group chat – China created this format during the pandemic and it really gets hyped during "Singles' Day," which is basically like Black Friday on steroids. Shoppers can click on a shopping bag icon within a live stream to browse the products being featured, visit the product listing and purchase the product without ever leaving the broadcast.
It looks like this:
There has all the trappings of sales rocketing:
- scarcity aka limited product availability
- exclusivity aka not everyone can get on and see right away
- timelines aka it "only" lasts for 12 hours and then you throw out a countdown where the live streamer shouts out 3, 2,1 GO!!!! and off the minions run to buy the product
We've covered the attention economy for some time, but what if this is the future?
I wanted to know how to play it today besides buying Alibaba's stock as that's a bit against my moral compass.
Wanna know something crazy?
Say this all sounds good and you're like yup, sign me up to sell some product or become an influencer (they call them KOL's) on Taobao in China.
Well, sorry. You can't as a foreigner. What?
IF you want to partake as a business and sell into the market you need to:
- setup a company in China
- rent an actual office, nothing virtual before you apply for license
- have a China-based bank account (no Hong Kong entities)
- the process takes 6 months usually and you need an agency to help you
- no English version of the site
How to Do It In the US?
Real talk, the US isn't there yet. No multi-million dollar immediate sales, no big names killing it yet in Live streaming. This makes me wonder, will it be like K-Pop, big in Asia, virtually unknown in the US? I'm not sure but what I do know is that if I play in e-commerce land, or am a wannabe be influencer online, it's time to at least start learning this format.
*Source Neil Patel.
- Popshop Live: iOS-specific platform that allows sellers to host shows from iPhones, use photos to upload purchase links, and integrate with inventory management software.
- Buywith: Allows influencers to “shop live with their followers” on brands’ e-commerce sites, helping influencers to win bigger partnerships and brands to generate greater ROI from their influencer marketing strategies.
- Bambuser: Originally a live streaming platform for journalists, it’s since entered the livestream shopping space and has been used by brands like H&M.
- Livescale: A live shopping app that integrates with a range of existing e-commerce platforms, including Shopify.
- NTWRK: Promotes daily limited-release product drops and shopping events. The platform reportedly generated over $100,000 in revenue in just 24 hours by selling a $250 platinum money counter from celebrity jeweler Ben Baller.
While Amazon, Twitter, TikTok have all thought about and very gently rolled out products to this regard, none of them have come close to picking up the 150% YOY revenue and user growth of Alibaba's Taobao.
Who would have thought QVC meets AI would turn telemarketers into billionaires. I am keeping an eye on it but sorry fam, probably not going to see me repping products and slanging soap anytime soon. Oh wait, I did that for this company we invested in. Glass houses.
Question everything and eye to the future,
Codie
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Disclaimer – This is the “Be an adult” section. Everything mentioned above isn’t advice, just a recount of what I did. That said: This article is presented for informational purposes only. The opinions stated here are not intended to recommend any investment or provide tax advice. Neither are they an offer to sell or the solicitation of an offer to purchase an interest in any current or future investment vehicle managed or sponsored by Codie Ventures, LLC or its affiliates. All material presented in this newsletter is not to be regarded as investment advice, but for general informational purposes only. Day trading and investing do involve risk, so caution must always be utilized. We cannot guarantee profits or freedom from loss. You assume the entire cost and risk. You are solely responsible for making your own investment decisions. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility. By reading/sharing this newsletter or consuming our content on our other channels, you are indicating your consent and agreement to our disclaimer.
