How China's livestreaming boom is revolutionising sales
Halfway into 2020, we are still in the middle of the Covid-19 storm. While we used to go and personally see things, that is no longer possible. As a result, we have undeniably shifted to online resources and short or live streamed videos to help us make decisions. Often these videos reach millions and as the economy starts to open up again, is livestreaming the solution to reach the Chinese market?
Why livestreams?
In the past year we have constantly heard that livestreaming is the new route for retail in China and it's not hard to see why. Taobao Live, Alibaba Group’s live streaming platform, enjoyed a 400% year on year growth as a result of the shift to online shopping with one of their top superhosts, Influencer Viya, achieving record sales of more than 100 million RMB (11.5 million GBP) in 4 hours. These numbers are incredible and are likely due to a different perception of live streaming.
In China, livestreams are not only perceived as content, there is an implication that you can buy what you see. Livestreaming adopts a similar format to that of shopping channel QVC, but updated to fit a 21st century lifestyle - on a mobile phone, interacting with your social media app plus an integrated instant checkout button.
Imagine you are watching an Apple new product launch on Amazon, with a celebrity chat show host like Graham Norton. You can instantly chat with the host and ask questions about the products while he gives you lots of fun facts and anecdotes about the products you're interested in. There is also a special deal on the featured product for a very short period of time, so you can simply click to buy while enjoying the entertainment.
A typical livestream hosted by the super hosts on an e-commerce platform such as Taobao Live lasts for about 4 hours, five to six nights a week. Behind the scenes, there is a large army of people working on each livestream show, from product selection, programming, social media marketing, supply chain management to customer care.
As of March 2020, e-commerce livestreaming users reached 265 million, accounting for 37.2% of online shopping users in China.
Livestream is the new ‘Shoppertainment’ in China
To quote one content producer - a publisher turned livestream key influencer -
‘from the first day I started livestreaming, I know what I’m doing isn’t just marketing, it is the whole package - from selecting the right content, building a reading community to direct sales’.
Livestreaming was already gaining popularity before the pandemic. Western brands like Kim Kardashian West Perfumes were already taking advantage of this. In November 2019, online livestream host Viya sold 150,000 units of her perfume during a single streaming session during Alibaba's Tmall Singles Day shopping festival.
Recent sales through livestreaming during the pandemic has definitely given people the idea of investing in online marketing, but the question is whether it's going to be sustainable - or just a post-Covid19 bounce?
Social commerce at its best
While in the West, short video apps like TikTok are seen as a form of entertainment - and not very good quality entertainment at that - in China they are used extensively for instant online sales, and have also moved into more sophisticated areas of cultural consumption.
Livestreaming through social media has become the perfect platform for an instant interactive cultural experience to compensate for the limited interaction and social distancing of the post-Covid-19 era.
CEO of US investment company Blackstone, Stephen Schwarzman, launched the Chinese edition of his biography (CITIC Press) earlier this year at the height of the pandemic. The launch included interviews on the impact of the US China trade war on the global economy, which were livestreamed to an audience of potential purchasers through social media and online media platforms in China, reaching 4million people online. The biography immediately became a bestseller, reaching number one in the charts after being on sale for only one week. Its success is even more noticeable at a time when it’s rare to see any new title topping the charts.
The arts have also produced fruitful sales through livestreaming. Lovers of Beijing’s culture were recently treated to an exclusive virtual tour of the Palace Museum by the museum’s curator, and viewers were invited to buy their branded merchandise during a one hour livestreaming special.
5 essential steps for brands seeking to capitalise on the livestream boom in China
Since the outbreak of Covid19, we have been working on a Viral Learning series to reflect on the rapid shift in the Chinese consumer market. Here are our top five tips to help you get to grips with China’s livestream boom:
Ensure you have an expert who understands the nuances of marketing in China and the relative strengths of different Chinese channels when you define your strategy. There are over ten short video apps and livestreaming channels so it is important to choose those most appropriate for your product and needs.
Reassess your China digital strategy - you don’t need to open a physical store to have a retail presence.
Expand the format of your marketing to incorporate live streaming/ short video content - China’s retailers have fully integrated the new boom in “shoppertainment” to let them interact with distant customers in real time
Establish a clear brand message and niche - the production selection process for some of the super hosts’ shows is extremely competitive
Use the myriad of newly-available marketing opportunities in China to think imaginatively about your strategy and how you can benefit. You might be working at home, but you can now stay in touch with your partners and customers in China in ways that we couldn’t have dreamt of a few months ago.
If you would like to know more, please get in touch with us at info@singinggrass.com.
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Singing Grass is a business consultancy advising on access and development strategies for the Chinese market. We develop bespoke programmes for clients in the cultural and lifestyle sectors to connect them to new markets and maximise their potential in China.
www.singinggrass.com
