Shoppable Livestreams: How China’s ‘Live Commerce’ Went Global
Live streaming has become hugely popular in recent years, with millions of people tuning in to watch their favorite content creators and celebrities in real-time. But in China, live streaming has evolved into something much more than just entertainment – it has become a powerful tool for commerce, known as ‘live commerce’ or ‘shoppable livestreams’. This phenomenon has not only transformed the way people shop in China, but it has also caught the attention of the global market, with many countries looking to replicate its success. In this article, we’ll take a deep dive into the world of shoppable livestreams and explore how China’s live commerce went global.
The Rise of Shoppable Livestreams in China
Live commerce first emerged in China in 2016, when an online influencer known as “Zhai Liang” sold 100 million yuan (around $14 million) worth of goods in just one hour through a livestream. This caught the attention of major e-commerce players like Alibaba and JD.com, who quickly jumped on the live commerce bandwagon. Since then, shoppable livestreams have exploded in popularity, attracting both big brands and individual influencers alike.
So, what exactly are shoppable livestreams? In simple terms, it’s a combination of live video streaming and e-commerce. By broadcasting live on popular platforms like Alibaba’s Taobao and Douyin (the Chinese version of TikTok), influencers and brands can showcase their products in real-time and interact with potential customers through comments and chats. Viewers can then purchase the featured products directly through the livestream.
The Power of Influencers in Live Commerce
Influencers play a crucial role in the success of shoppable livestreams in China. These are individuals who have a large following on social media platforms and are able to influence their audience’s purchasing decisions. In the age of social media, influencers are seen as more relatable and trustworthy than traditional celebrities, making them ideal “hosts” for shoppable livestreams.
In China, there are many influencers who have built massive followings through live streaming, and some have even become millionaires through their streams. One example is Viya Huang, who holds the title for the biggest single live-selling event, generating over $44 million in sales in one session.
The Appeal of Shoppable Livestreams
So, why have shoppable livestreams become so popular in China? One major factor is the country’s mobile-first culture. China has the highest rate of smartphone users in the world, making it easy for consumers to tune in to live streams anytime, anywhere. Additionally, there’s a sense of urgency and FOMO (fear of missing out) created during these livestreams, as some products are offered at discounted prices for a limited time or in limited quantities, encouraging viewers to act quickly.
Another reason for the success of shoppable livestreams is the personal aspect of the experience. Unlike traditional shopping, where customers rely on product images and descriptions, shoppable livestreams allow viewers to see the products in action and ask questions in real-time. This creates a more interactive and engaging shopping experience, which can lead to higher conversion rates and customer satisfaction.
China’s Live Commerce Goes Global
It’s no surprise that the success of shoppable livestreams in China hasn’t gone unnoticed. Brands and platforms in other countries have taken notice and are now looking to replicate this trend. In 2019, Alibaba’s Taobao launched a global version of its live commerce platform to cater to international businesses. And during the COVID-19 pandemic, many countries turned to shoppable livestreams as a means to keep their retail industry afloat.
In the U.S., platforms like Amazon and Instagram have started testing shoppable livestream features, while in South Korea, multiple channels have emerged dedicated solely to live commerce. It’s clear that the impact of China’s live commerce has reached far beyond its borders.
Challenges and Potential for Shoppable Livestreams in the Global Market
While shoppable livestreams have the potential to revolutionize the way we shop, it’s not without its challenges. One major hurdle is cultural differences. What works in China may not necessarily work in other countries, and brands and influencers will need to adapt their strategies to cater to different audiences.
Additionally, there are concerns about the authenticity and trustworthiness of products being sold through shoppable livestreams. As live commerce becomes more widespread, there is a risk of counterfeit or low-quality products being featured on these streams, which could damage the reputation of both the platform and the influencer.
Final Thoughts
Shoppable livestreams have become a major force in China’s retail industry, transforming the way people shop and creating a lucrative market for brands and influencers alike. And with its global reach, it’s clear that the impact of China’s live commerce will continue to expand. However, as with any trend, it’s important to approach it with caution and address any challenges that may arise. Only time will tell if shoppable livestreams will become a permanent fixture in the world of commerce, but one thing is for sure – it’s certainly making a strong case for its place in the future of retail.
