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How livestreaming is transforming the ecommerce in China ?

6 years ago Alibaba’s Taobao Live has started revolutionized the ecommerce world by inventing a powerful new approach of retail sales online. Influencers create their channels, and make programmed livestream broadcast with a direct link to ecommerce store. These influencers are not just influencers who share photos on Instagram or RED, but are talented talk show hosts, great sales persons as well as ambassadors for brands.


Since then livestreaming or live commerce has established itself as a symbolic event in sales campaigns for Single’s Day (black Friday in China). It is not only a tool for boosting sales and customer engagement, but also an effective way for increasing brandings especially for new brands. The online live streamer king Li Jiaqi has recorded a transaction sales of $1.9bn in goods in just 24 hours at the Singles’ Day last November in 2021. Together, the top two livestreaming superstars Li Jiaqi and Viya are estimated account for 13% of the total transaction values on Alibaba’s ecommerce platforms.



Toplivestreaming seller host Li Jiaqi, known as China’s ‘Lipstick King’ after selling 15,000 tubes of lipsticks in 5 minutes on Alibaba


Livestreaming or live commerce is a combination of livestreaming shows and TV direct sales through chat function and reaction buttons. From 2019 to 2022, the penetration of livestreaming or live commerce has reached from 3.5% to 11.3% with the total online of $420bn. China is so far the most advanced country equipped with mature livestreaming ecology, and is able to generate highest sales in livestreaming.




What are the values created by livestreaming ecommerce?

Livestreaming ecommerce can help retailers, brands and markets in 3 ways:


Introducing new brands, improving brand awareness and differentiation. New brands usually have a very high client cost-acquisition at the beginning to introduce into the market. The benefits that livestreaming can bring to the new brands are that they can rely on the credibility of livestreaming influencers to raise brand awareness, improve brand appealing, and help educate consumers on the unique selling points of products


Raising customer engagement and accelerating conversion of sales. Livestreaming is an entertainment and instant sales purchase cycle. Livestreaming influencers propose an instant coupon and limited time purchase time to let customers make impulsive sales. The purchase cycle and decision journeys are shortened to a great extent.


Raising instant sales of bulk and bundle sales without hurting retail price. Livestreaming has the flexibility of setting up flexible bulk and bundle sales in a typical B2B channels, without hurting the B2C retail price. As a result, the livestreaming sales make it easier to generate bulk and bundle sales compared to the traditional static B2C online channel.


If you wish to know more about the livestreaming ecommerce analysis and tactics, please contact ROUGELINK for more information.


RougeLink offers e-commerce solutions, with integrated capabilities encompassing all aspects of the e-commerce value chain covering e-store operations, digital marketing, customer services, and logistics.


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