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Live Streaming E-Commerce Is The Rage In China
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Live Streaming E-Commerce Is The Rage In China
It’s not new news that e-commerce in China is highly developed and COVID lockdowns propelled it even further. Chinese e-commerce is projected to be $1 trillion dollars in 2020, up from $862 billion in 2019. In 2020 over 700 million Chinese are expected to shop online vs. 600 million in 2018. According to eMarketer, China has the highest rate of e-commerce of any country as a percent of total retail sales (over 35% in 2019), the highest absolute sales level (more than 3 times the U.S. total, the second largest country), and one of the fastest growth rates of any country, off an already high base.To get more news about 39bet-kết quả bóng đá-kết quả xổ số miền bắc-kèo bóng đá -soi cầu bóng đá-đặt cược, you can visit official website.
Livestreaming E-Commerce is promoting and selling goods through influencer streams on their own social media channels, most often housed on China’s online shopping malls. It’s like Home Shopping Network, but with charismatic, trendy anchors. It’s also been described as part infomercial, part variety show.
Alibaba’s Taobao Live, has the lion’s share of live-streaming at around 80%. Other large Chinese tech and e-commerce players, have shoppable livestreams within the apps, as does the leading fashion platform, MOGU. Products featured are primarily cosmetics and beauty aids, fashion, and food. Livestreaming is another way for brands to gain awareness, move excess inventory, and for small local businesses from craft artisans to independent farmers, to reach customers: all the more important in light of this year’s COVID lockdown restrictions. Taobao Live is a virtual shopping mall where customers can shop and be entertained at the same time.Livestreaming e-commerce is growing rapidly. It’s estimated to already be $60 billion annually. Last year over 430 million people, about 30% of China’s population, viewed livestreams, and in 2020, it’s projected to reach 560 million, or around 39%. Sales from live streams are expected to grow more than 100% in 2020 vs. 2019 to almost 9% of all online retail sales. In 2019 approximately 37% of China’s online shoppers made livestream purchases. While it has been driven by Gen-Z and Millennials, middle-aged Chinese and seniors are jumping on the trend.
Top influencers have their own shows and appear each each night for 4 hours at a stretch, from roughly 8 pm to mid-night, selling highly curated products, often at deep discounts. Approximately 12 products are presented each hour: 48 per night, and items can sell out in seconds. Manufacturers pitch the influencers and only an estimated 1 in 10 products is selected. Aside from choosing which products to feature that their followers will want, show hosts negotiate with manufacturers to get the lowest prices possible and estimate how much to buy. The right balance of supply and demand is critical to maintain viewer excitement and action. Hosts demonstrate and critique the products, explain features, sporadically answer call-in questions, and at times sing and talk to celebrity guests. There’s exciting music with beating gongs and drums when coupons and product links are revealed, and anchors urge viewers on with calls to action like “just buy it” and “grab it now.”
One of the most popular livestreamers is Jiaqi (Austin) Li, also known as the “Lipstick King.” He’s a former L’Oreal, physical retail salesman who is now worth a reported $5 million. Jiaqi is known for demo’ing lipstick brands on his own lips. He has 6.5 million followers for his livestream on Taobao Live, and a nightly audience of 2 million viewers. He’s also become a Tik Tok celebrity with over 30 million viewers. Jiaqi occasionally brings his dog, Never, on the set, and Never is now too a celebrity. Sharing different aspects of his life, like his dog, increases Jiaqi’s appeal to fans. The more fans, the more bargaining power he has with brands to get the lowest price.
Wei Ya (also known as Viya), another super popular livestreamer, has her own fashion line and factory. In addition, she promotes products from foreign brands like Tesla and Proctor and Gamble, and local products ranging from instant noodles and cosmetics, to the right to send a small payload into space for the Chinese company Casi Rocket Technology at a reported cost of $6.1 million. Recent monthly view figures are off the charts with over 839 million for Viya and 824 million for Jiaqi Li.
Now if consumers click into the official online Tmall store of any major brand (from clothing to cosmetics), they’re likely to see a banner for the brand’s livestreaming on the front page. People who sell the brands in physical store are encouraged to do livestreaming, trying on products themselves for viewers. Highlights of the livestreams are then made into video clips and added to the product introduction page on its website. These livestreams don’t necessarily have professional lighting or great resolution, and the livestreamers are not celebrities or models, but customers enjoy their authenticity. When customers click the link on the product or estore, they can browse pictures, watch try-on videos, or catch livestreams, so they now have more ways to interact with brands and are engaged for longer periods of time.