In China, The Future of Shopping Is Already Happening

Summary

Live stream shopping in China has transformed e-commerce, blending entertainment and shopping through platforms like Taobao and Douyin. Influencers with massive followings create a fun, interactive experience, driving sales and engaging viewers in real-time. The market grew significantly during the pandemic, with top influencers like Viya and Li Jiaqi becoming celebrities, selling everything from luxury items to everyday products. This trend is spreading globally, with companies and even local farmers embracing the format. However, its long-term sustainability will depend on innovation and adapting to consumers’ desire for in-store experiences.

Takeaways

• 😀 Live stream shopping is a rapidly growing trend in China, attracting millions of viewers each night on platforms like Taobao and Douyin.
• 😀 The live streaming shopping experience is not just about buying products, but also about entertainment, social interaction, and creating a fun environment for viewers.
• 😀 By the end of 2020, there were almost 400 million live stream shopping users in China, and the market was valued at 161 billion dollars.
• 😀 The growth of live stream shopping was accelerated during the pandemic, as people sought more social interaction and online shopping became a necessity.
• 😀 Influencers in live stream shopping have become major celebrities in China, with some like Viya and Li Jiaqi earning millions and influencing product sales on a massive scale.
• 😀 Live stream shopping allows for real-time interaction between influencers and viewers, which is a key difference from traditional TV shopping, making it more engaging.
• 😀 Influencers use sales techniques like limited-time offers and social proof to drive urgency and encourage viewers to make purchases during live streams.
• 😀 Top influencers, like Li Jiaqi (known as 'Lipstick Brother'), are experts in communication and product presentation, often demonstrating product use on live stream to build trust and authenticity.
• 😀 The concept of live stream shopping is spreading globally, with Southeast Asia and Western platforms like Amazon and Facebook also integrating this feature into their business models.
• 😀 While live stream shopping is expected to continue growing, traditional shopping experiences, such as in-store visits, will still remain important for many consumers who enjoy the tactile experience.

Q & A

What is live stream shopping and how is it gaining popularity in China?

Live stream shopping is a trend where influencers host live shows to promote and sell products through e-commerce and social apps like Taobao and Douyin. It's gaining popularity due to its interactive, entertaining, and convenient nature, with users able to shop in real time while engaging with the hosts. The trend has become widespread, with nearly 400 million live stream shopping users in China by the end of 2020.

What are the key features that differentiate live stream shopping from traditional TV shopping?

Unlike traditional TV shopping, which is a one-way communication model, live stream shopping is interactive and real-time. Viewers can engage with hosts, ask questions, and make purchases directly within the streaming platform, creating a more dynamic and engaging shopping experience.

How did the pandemic influence the growth of live stream shopping in China?

During the pandemic, millions of people were in lockdown and shifted to online shopping. Live stream shopping grew as a response to this, as it offered social interaction and a sense of control. The interactive nature of live streaming helped people stay engaged, and the variety of products available satisfied new consumer demands.

How did platforms like Taobao contribute to the rise of live stream shopping?

Taobao, owned by Alibaba, introduced live stream shopping in early 2016, which quickly gained traction. By 2021, over $70 billion worth of goods had been sold via live streams on Taobao. This, along with the integration of live streaming into other e-commerce platforms, boosted the popularity of live stream shopping in China.

Who are the most influential figures in the live stream shopping industry in China?

The most influential figures are influencers like Viya and Li Jiaqi (known as Lipstick Brother). Viya is known for her massive sales volume and viewership, selling everything from luxury items to cars. Li Jiaqi, a former cosmetics salesperson, became famous for his live streams, where he applies makeup and promotes products, especially lipsticks.

What sales strategies do live streamers use to drive purchases?

Live streamers often use strategies such as creating a sense of urgency with limited-time offers or limited product availability. They also leverage social proof, showing that other viewers are interested in the products, which can drive additional sales. These strategies, combined with their entertaining presentation, create a compelling shopping experience.

How do live streamers maintain trust and credibility with their audience?

Successful live streamers maintain trust by being authentic, offering honest opinions, and engaging in transparent communication. For example, Li Jiaqi sometimes points out flaws in products, which helps to build credibility. Their ability to communicate effectively and entertain while being truthful is key to their success.

How is live stream shopping evolving outside of China?

Live stream shopping is expanding globally, with merchants in Southeast Asia embracing the trend. In the West, platforms like Amazon have introduced live streaming features, and tech giants like Google and Facebook are investing in technologies to integrate video with e-commerce, signaling a growing global trend.

What role does scarcity play in live stream shopping?

Scarcity plays a significant role in live stream shopping by creating a sense of urgency among viewers. When viewers see that a product is in limited supply or available for a short time, it often compels them to make quicker purchasing decisions. The chat function and social interactions further enhance this effect.

Can live stream shopping sustain long-term growth, or will it fade over time?

While live stream shopping is growing rapidly, its long-term sustainability depends on continuous innovation and adaptation. As consumer habits evolve, platforms and influencers will need to find new ways to engage audiences and offer value. While the virtual shopping experience is convenient, physical shopping experiences are unlikely to be completely replaced.