Live commerce China

Live Commerce in China: 7 Trends Digital Marketers Should Know

The continued prevalence of social commerce in China has led to Chinese consumers relying on live streaming as part of their online shopping journey. In fact, this demand allowed the market to garner impressive total retail sales and a gross merchandise value of 4.9 trillion yuan in 2023

Although Western consumers are now catching up with live shopping trends, Chinese shoppers have long considered these channels an integral part of their purchasing journeys. This pattern is evident, especially given that eight out of ten local consumers in China admitted that they already purchased at least one product via live streaming

Naturally, brands and retailers from Western markets are now more eager to find ways to sell products to this growing audience segment. 

In this post, we’ll explore the influence of live commerce in China and different platforms to help foreign brands attract customers in the Chinese market.

 

Why is live shopping popular in China?

According to CGTN99.6% of Chinese internet users browse the web through their phones. Given the high smartphone penetration rate and the preference for mobile transactions, live shopping perfectly caters to this consumer behavior.

In addition, the deep integration of commerce and social media platforms in China creates a seamless transition for users to switch from watching a live stream to making a purchase.

 

Image by our-team on Freepik

 

Major platforms are continuously enhancing the e-commerce experience within their interface for customers and businesses alike. Today, live streams stand as not only a form of entertainment but also as sales channels that can bring potential revenue to brands.

The fandom culture of Chinese consumers toward live streamers or influencers also contributes to the rapid growth of livestream commerce. These Key Opinion Leaders (KOLs) have built trust and connection with their audience, making their product endorsements highly effective for generating sales and interest in new brands and retailers.

 

How does live shopping in China work?

Live shopping in China operates through a blend of technology, social media influence, and e-commerce. It begins with platforms like Taobao Live, Douyin, Little Red Book, WeChat, and Kuaishou, which provide the technological infrastructure and content creation tools to execute live streams. 

These platforms often include built-in e-commerce systems, allowing audiences to view product listings and make instant purchases during live sessions. Key Opinion Leaders (KOLs) and micro-influencers are pretty adept at using these platforms, as they consider these features the quickest way to engage with their followers in real-time. 

 

Popular live streamer Li Jiaqi promoting products during the Double 11 Festival

Popular live streamer Li Jiaqi promoting products during the Double 11 Festival (Source: China Daily)

 

Engagement is the key element marketers must consider when using livestream commerce in their promotions. Regardless of which channel or platform you use, viewers must be able to ask questions, give immediate feedback, and even influence the course of the live event.

As products are showcased, some platforms allow consumers to make a purchase with just a few clicks without needing to leave the ongoing live streams or jump from one platform to another. Other live streamers, like Li Jiaqi, conduct presale events to encourage purchases further even before a shopping festival officially starts.

 

Advertising in China livestreaming

 

This ease of transaction is crucial in capturing the impulse buying behavior that is common in online shopping. Behind the scenes, companies must extensively prepare for these livestream shopping sessions, from product selection to strategic ad placements, to attract clicks and potential conversions. 

 

Top 7 Live Shopping Market Trends in China

 

1.  Diverse Product Range

Live shopping initially attracted local consumers who were interested in buying products related to fashion and beauty. However, these sales channels now span various categories, including electronics, home decorations, and appliances. 

According to Statista, apparel and fashion are the most popular categories, representing 39% of livestream consumers. Beauty products also hold a significant share, with 34%, reflecting the market’s strong affinity for personal care and cosmetics. 

Household daily supplies, encompassing a range of electronic appliances and furniture, are showcased with a 30% market share in the previous years. 

The country’s health and wellness products also seem to flourish in the livestream commerce market, with 25% of the surveyed Chinese consumers confirming that they bought goods under this category after watching live streamers.

 

 

2.   The Changing Government Regulations for Live Shopping

The Chinese regulatory environment for live commerce is becoming more stringent. It clearly focuses on upholding consumer rights and ensuring fair advertising practices. A step in this direction is the implementation of the “Code of Conduct for Online Streamers,” which came into effect on June 22, 2022. 

These guidelines mandate that live-streamers and influencers adhere to ethical standards, promoting responsible content creation and dissemination. They highlight specific categories of content that are considered unacceptable, aiming to foster a more trustworthy and consumer-friendly livestream shopping ecosystem.

 

Source: South China Morning Post

 

These measures reflect the government’s commitment to safeguarding the well-being of viewers and the integrity of the live e-commerce sector while actively addressing the challenges that come with its growth.

 

3.   Professionalization of Livestream Hosts

There is a marked shift in the Chinese live shopping industry where hosts are no longer seen merely as presenters but as skilled professionals. They are equipped with specialized training in sales techniques, in-depth product knowledge, and audience engagement strategies. 

This trend is driven by the desire to provide higher-quality content and a more engaging shopping experience.

For instance, New Oriental, a major educational organization, has opted to sell products to consumers using live shopping platforms. They have utilized their academic expertise to offer content-driven livestream sessions, blending product promotion with English lessons and cultural insights​.

 

New Oriental’s content-driven live streams are hosted by educational experts and professionals

New Oriental’s content-driven live streams are hosted by educational experts and professionals (Source: Jing Daily)

 

These developments suggest that the future of live shopping in China is one where the hosts are not only influencers but also knowledgeable industry experts. More than the entertainment value most online personalities offer, these hosts provide a sophisticated and educational live shopping experience.

 

4.   Integration of Advanced Technologies

The rise of advanced technologies such as augmented reality (AR), extended reality (XR), and mixed reality (MR) is revolutionizing China’s live shopping landscape. These immersive technologies enhance customer experiences by creating interactive environments that closely simulate physical shopping.

For example, AR allows consumers to visualize products in their own space or even try on items virtually, thereby bridging the gap between digital and physical marketing.

 

Integration of Advanced Technologies in Live commerce China

Image by Freepik

 

These innovations are particularly impactful in fashion, cosmetics, and home decor categories, where visualization is critical in any purchase decision. However, widespread adoption faces challenges like high costs and substantial hardware requirements.

Despite these hurdles, the Chinese live shopping industry is actively exploring ways to utilize these technologies more deeply into the local e-commerce experience.

 

5.   Diverse Audience Groups

China’s She Economy dominates the country’s livestream e-commerce market, accounting for over 57% of this segment’s overall population. It’s mainly reflected in the product categories we mentioned earlier that hold the largest shares in live shopping, like apparel, fashion, and beauty products. 

However, it is important to note that livestream shopping is not exclusively popular among women. There is also a substantial male audience reach that participates, particularly in categories like consumer electronics and home appliances.

 

Traditional e-commerce and live commerce users in China by gender

Traditional e-commerce and live commerce users in China by gender (Source: Statista)

 

This market is still prevalent among younger consumers, especially Gen-Z and millennials. These age groups are more digitally savvy and tend to be more active in online communities, so it’s no surprise that 43% of the local live shopping user base is between 25 and 30

 

6. Live Commerce’s Low-Tier City and Rural Market Penetration in China

The trend of live shopping is progressively reaching China’s rural areas and low-tier urban cities. Behind this expansion is the substantial improvement in internet infrastructure nationwide and the government’s effort to enhance digital literacy among these populations.

This digital push has enabled rural consumers, previously on the periphery of the e-commerce prevalence, to participate actively in the live shopping economy. Today, live commerce is a vital channel for rural producers and small-scale entrepreneurs to access a broader market. 

Farmers and rural artisans leverage platforms like the Taobao app to showcase and sell their products directly to a nationwide audience, bypassing the traditional marketplace.

 

Live commerce rural market China

 

7.  The Shift to KOCs and Micro-influencers

Another shifting trend foreign marketers must discover is the rise of micro-influencers and Key Opinion Consumers in the local live shopping market. These online personalities command smaller yet highly engaged audiences, and it’s an excellent place for your brand to start connecting with Gen Z shoppers. 

Micro-influencers often harbor a sense of authenticity and relatability that resonates well with niche audiences, leading to higher trust and engagement than traditional advertising channels.

 

Best Live-Selling Platforms For Foreign Brands in China

  • Taobao Live

Alibaba’s dedicated live-streaming platform is one of the earliest adopters in the live commerce space. The company remains one of the most popular sources of online marketplaces that are effective for engaging with Chinese consumers in real time.

 

 

  • Douyin

This social commerce app has garnered an impressive 746.5 million monthly active users in the past year. Known for its young and dynamic user base of over 65% of users under 35, Douyin is especially effective for brands targeting younger demographics and seeking high engagement through short-form content and live streaming.

 

L'Oréal live streaming on Douyin

 

  • Kuaishou

Another major player in the short video and live-streaming domain besides Douyin is Kuaishou. It has captured 80% of all livestream viewers in China as of September 2020. 

The pandemic has bolstered the platform’s growth, leading to a significant increase in both user base and gross transaction volume.

 

  • Xiaohongshu

As Xiaohongshu evolved into a social commerce powerhouse, many consumers went to this platform not only to find user-generated reviews and recommendations but also to discover new products through its live-streaming features. 

Last year, the growth of live commerce in Xiaohongshu was marked by a 4.2x increase in its 2023 gross merchandise volume (GMV).  

 

Xiaohongshu Livestream Interface

 

  • WeChat Channels

The introduction of WeChat Channels has led China’s biggest super app to expand beyond its one-on-one digital marketing model.

With more video content discoverable through public domain sources, live streaming has also become a way for businesses and content creators to communicate with existing and new audiences. 

In fact, based on some reports posted in 2024, live shopping was the most popular content type on WeChat Channels, next to entertainment categories like mukbang and variety shows.

 

Live streaming on WeChat channels

 

 

Quick Q&A

How big is live commerce in China?

The live commerce market in China is experiencing rapid and substantial growth, with its value surging to approximately US$352 billion in 2021. Forecasts suggest that by the end of 2023, the market could reach an estimated US$704 billion.

What is the biggest live-streaming platform in China?

The biggest live-streaming app in China is Taobao Live. The country’s tech giant Alibaba operates it and has seen a rapid increase in the number of merchants using it, particularly following the COVID-19 pandemic.

When did live shopping start in China?

Live shopping in China started gaining significant traction around five years ago but exploded in popularity during 2020, mainly fueled by the COVID-19 pandemic and the ensuing lockdowns. This period saw a substantial increase in screen time and online purchases, propelling live shopping to the forefront of local e-commerce.

 

Your Trusted Live Commerce Partner in China!

Foreign brands interested in China’s live-stream shopping market must carefully assess the industry’s potential and challenges. While the numbers look quite promising, it’s worth noting that Chinese consumers don’t shop like typical online users.

 

You may also want to read:

The Power of Live Streaming and KOLs in China

 

At Sekkei Digital Group, we understand the subtleties inherent to the Chinese market – including consumer behaviors and the ever-evolving trends that shape it. With our extensive expertise in this niche, we offer you the avenue to unlock your brand’s potential and secure a formidable position as a leading entity in the industry.

 

Sekkei Digital Group Services

 

Whether you need to create compelling advertising campaigns, utilize social media apps, or open a virtual shop, we have the digital solutions you need. Contact us today, and let us help your brand navigate the intricacies of the Chinese business scene.

 

contact us SDG

 

References:

WHY ECO-CONSCIOUS BRANDS WILL SUCCEED IN CHINA IN 2023
The live video shopping statistics brands can’t ignore in 2023
China’s Livestream Industry: Market Growth, Regulation, Enabling Technology, and Business Strategies
It’s showtime! How live commerce is transforming the shopping experience

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