Hangzhou Sijiqing Clothing Wholesale Market banned live streaming, why did it cause controversy?
Hangzhou Sijiqing is not only famous in Hangzhou, but also quite famous in China. It is a relatively large clothing wholesale distribution center in China. There are more than 20 markets similar to Changqing Market, with more than 20,000 stalls.
In March this year, a notice issued by the Changqing Market in Sijiqing, Hangzhou attracted attention. The announcement pointed out that businesses and outsiders are prohibited from live broadcasting in shopping malls. If it is discovered for the first time, a written warning will be issued; if it is discovered again, the equipment will be confiscated and a fine of 20,000 yuan will be imposed; if it is discovered for the third time, the equipment will be confiscated and a fine of 40,000 yuan will be imposed.
One month has passed, and this ban has caused a wave of controversy on the Internet.
Wholesale and live broadcast are genetically incompatible
In fact, it is not just live broadcasts. Sijiqing embraces the Internet and has never stopped exploring new opportunities and opening up new games. But for now, it seems that the offline wholesale business model is still the main one.
Live streaming has indeed had a great impact on Sijiqing, a traditional clothing wholesale market. This impact is essentially an innovation of the traditional market by the online economy. Traditional clothing wholesale has first-level wholesalers, second-level wholesalers, even third-level and fourth-level wholesalers, and then to the retail end and customers. But through online live broadcast, first-level wholesalers and even manufacturers can directly face customers, then So many wholesale links in the middle mean that they are no longer needed.
The physical wholesale business model of Sijiqing Wholesale Market has lasted for more than 30 years and is very mature. The market’s “differential treatment” of live broadcasts is actually a “self-rescue” under the impact of the online economy on the real economy and a result of different business models. choose.
Piracy, counterfeiting, inferior quality, etc. that appear in live broadcasts, with the support of traffic, may cause a “double blow” to sales and reputation in the real economy, and the phenomenon of bad money driving out good money will occur. This is also the case in Four Seasons Qing’s reasons for “expelling live broadcasts”.
Under the craze of live streaming, how to prevent the proliferation of counterfeit and shoddy goods in live streaming sales is also an issue that relevant departments need to pay attention to.
A kind of self-protection against impetuous sales
As a first-level wholesale market for clothing, Sijiqing merchants directly connect with factories and have the lowest prices in the market.
Live broadcasts directly connect with retail customers and often compete for traffic at low prices. This hurts the interests of wholesalers who go to the market to get goods. There has been a precedent in Guangzhou where the same style of clothes was directly retailed by the anchor at a low price to the C-end, so there would be no business for the B-end. To protect customers, live streaming sales are not encouraged.
What’s worse is that if we rely on live broadcast sales for a long time, the main profits in the industry chain will flow into the hands of a few top anchors, and Sijiqing will eventually be destroyed.
Relevant market staff said that they had received more than one complaint from the industrial and commercial department, which was all caused by the live broadcast platform.
“After netizens bought clothes in these anchors’ live broadcast rooms, they found quality problems, but there was no after-sales service and they could not return them. They could only complain to the industrial and commercial department. But when The industrial and commercial department found us, and we checked ourselves and found that this person was not our merchant at all. She was just using the Sijiqing Market to attract attention during the live broadcast. Isn’t this causing trouble? It will greatly affect the credibility of our market and merchants.”
What’s more, after reaching a cooperation, they find another manufacturer to imitate certain popular models in large quantities and sell them with worse fabrics and lower prices, resulting in a “double blow” to the merchant’s reputation and sales, and the emergence of bad coins. The phenomenon of driving out good money.
“This is our way of protecting ourselves against impetuous sales,” the merchant said helplessly.
The ban is to protect real economy customers
Being in the city of live broadcaste-commerce, as a fashion trendsetter in Hangzhou, why does Sijiqing not catch up with the “live broadcast” trend but go against the trend? What considerations does the market management have?
Director Zhang of the Sijiqing Changqing Market Management Office said that the market mainly deals in the casual women’s clothing category, with more than 300 operators. The most direct impact of the live broadcast is on the market’s wholesale customers. “The live broadcast room further squeezes the living space of these wholesale physical stores.”
“Our current position is, first of all, we are a wholesale market and we must protect the wholesale customers of the market. By banning broadcasts, we can protect the interests of these wholesale customers; secondly, many operators have expressed the same problem to us. and demand, the ban is also maintaining normal business order.”
The market believes that the ban is to maintain normal business order. One month since the ban was implemented, Director Zhang has not received any objections.
Now, the average daily flow of people in Changqing Clothing Market is about 20,000, which is still far behind the peak period of nearly 30,000. “Now that things are getting better, I hope more wholesalers can come online. Enter the market and promote the prosperity of the market economy.”
The wholesale market basically uses the information gap to make money. After the second-level wholesalers purchase goods from the main wholesaler, they will sell them to the third-level wholesalers at a higher price, and finally reach the destination.What just happened is that when Taobao and JD.com became prosperous ten years ago, the same controversy also occurred. The difference may be that some physical merchants have already adapted to the situation and opened online stores, but they are far from ready for live broadcasts.
Li Xiaopeng, director of the Journalism Department of the School of Media and Humanities at Zhejiang University, believes that the general trend of live broadcasting cannot be shaken. The ban on broadcasting at Sijiqing Market is more like a temporary emergency measure, and adjustments will inevitably occur in the future. Judging from the family history of Siji Qingfa, it is not the market that relies on it, but the aggregation and optimization of industrial resources. Since resources can be integrated offline, of course, it can also be regrouped online.
(Source: Qianjiang Evening News, Chao News, Jiemian News, Qufu Lotadd, Global Textile)
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