Live Streaming a natural part of your eCommerce strategy, Why?
China’s digital consumer market has led the world for the past years. Live streaming eCommerce, the industry’s latest trend of promoting and selling goods through influencer streams, has exploded recently due to the growth of eCommerce alongside China’s increasingly consumeristic and tech-capable audience. Live streaming is quickly becoming a must-have in your toolbox for all brands targeting Chinese consumers.
Almost half of all of views converts into sales
Around 265 million Chinese people made a purchase through live streaming eCommerce in 2019, comprising 37% of China’s total online shoppers and 47% of live stream viewers. By March 2020, this number increased to 560 million, or 62% of the country’s total number of internet users.
Researchers has estimated that livestreaming market in China will bring in about $125 billion in sales this year, up from $63 billion in 2019.
Traditional eCommerce is boring
Traditional two-dimensional shopping is not living up to the standards of the Chinese consumer, who like to pride themselves with making research before a purchase. Instant information, alongside deep discounts, is often mentioned as the major reasons for shopping via live streams.
KOLs is leading the way
A huge component to live streaming e-commerce is the popularity of individual hosts, making them key opinion leaders (“KOLs”). In the west we usually use the term influencers, but it is KOLs who are the real influencers – Chinese consumers put a huge amount of trust into live streamers.
The hosts for live streaming sales platforms are not just featuring brands and products, they are also providing entertainment. The consumers (fans) also get to interact and engage with them, asking questions and commenting during the broadcast. Purchasing is made super easy as well, with just a few taps you can purchase the products being featured.
Another difference between KOLs and the Western ‘influencer’ counterparts lies in the payment structure. Influencers typically receive a fixed amount of money for every social media post, KOLs directly partner with brands to receive appearance fees and generous commissions on brand sales, ranging from 5 and up to 50%.
Some of the biggest platforms
China has more than 900 platforms, but the most important one include:
1.Douyin: TikTok, known in China as Douyin, is a video-sharing social networking service owned by Chinese ByteDance
2.Douyu: Largest gaming site in China with 163.6 million monthly active users in 2019 (more than the 140 million monthly active users of Twitch)
3.Kuaishou: strong user base among users outside of China's Tier 1 cities