I think if you create the infrastructure, give support, it can definitely help lift the economy.". Factset: FactSet Research Systems Inc.2018. Even so, the industry's impact on the economy is probably limited, according to Xiaofeng Wang, a senior analyst at research firm Forrester. [In this job,] you need to talk a lot, because your mood is contagious. Online shopping penetration rate in China 2009-2015 Annual change in the number of online shoppers in China 2008-2018 Penetration rate of online shoppers in China and the U.S. by age … China's billion-dollar shopping obsession, See Jack Ma's first public appearance in months, Trump administration dials up US-China tech tensions, Chinese government halts Ant Group's giant IPO, How China's Ant Group built a $17 trillion payments machine, HSBC may have to choose between China and the West, Mars is the latest arena in US-China rivalry, Hong Kong's business world divided over national security law, The moral dilemma of doing business in China, explained, China censors a lot, from Winnie the Pooh to the NBA, Why American fast food chains will do anything to win in China, according to iResearch, a Shanghai-based market research firm. Posted by Celine Delacharlerie | J, Sep, 2017 | East Asia (China, South Korea...), New retail, Startups, Trends | 0 |. And they will maybe just stop for five or 10 seconds, and if they find it's not interesting, they'll just leave," said Shen. Singles Day also marked the take-off of the “Entertainmerce”, combination of entertainment and e-commerce. Taobao Live, Alibaba’s dedicated live streaming unit, reached record-high sales of RMB 20 billion (around $2.85 billion) during the 2019 Singles Day shopping event, or 7.5 per cent of the group’s … All rights reserved. And even prominent business leaders are getting in on the act. In 2019, China's live-stream shopping market was worth 451.3 billion yuan ($66 billion). The experience was painfully "awkward," he said. The first two develop content that engages potential customers whilst payment capabilities enable the final purchase. This live video is important in the context of rapidly growing numbers of mobile shoppers (around 500m on Taobao) who each engage multiple times a day with the Taobao app for an average of around half an hour. Of the 400,000 people that China's Commerce Ministry says hosted a live-stream shopping event in the first half of 2020, it's likely that only 5% to 10% will succeed and earn a living, estimated Iris Pang, chief economist of Greater China at ING. According to estimates by venture capital firm Kleiner Perkins in its 2017 internet trends report, live broadcasts have actually become the number one source of revenue per hour in China, ahead of mobile games, television, radio, videos and music. In March, he visited a village in northwestern China where he spoke with residents who were selling agricultural goods over live-stream, according to the state-run news agency. Ma Yun, better known as Jack Ma is the founder of Ali Express, the largest and topmost … Alibaba had reportedly invested US$ 46 million last year in Ruhan, a celebrity incubator that teaches future stars to blog, pose for photos and interact with fans. Alibaba achieved a record total sales of US$ 17.7 billion, 32% more than last year. That includes teams from a local talent agency that help her choose which products to feature, what discounts to offer fans and how to plan her filming schedule. You are free to unsubscribe at any time. Innovation Is Everywhere does not share or sell your personal information. All times are ET. In 2015 there were 45.7 million monthly active users for all live-streaming apps, but by July 2016 that number had grown by … In fact, the number of e-commerce livestreaming sessions topped 4 million in the first quarter, according to China… Live streaming in China is a mix of product education and entertainment. However, a key difference in China is that Internet users can show their adoration by sending virtual gifts that can be exchanged for cash. By submitting the information below, you authorize Innovation Is Everywhere to communicate with you about its products, services and marketing offers if it judges it relevant. Alibaba achieved a record total sales of US$ 17.7 billion, 32% more than last year. Designed by Elegant Themes | Powered by WordPress. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. , ahead of mobile games, television, radio, videos and music. Hu is part of a rising class of creators in China who are racing to get in on live-stream shopping, an emerging form of retail that has grown into an industry worth an estimated $66 billion. . Live stream shopping is booming in China. The restricted ability of the government to regulate the content of these video, censoring videos that may contain propaganda, has been cited as a key reason behind the banning of these platforms. Live-stream shopping has existed in China for years, but the trend has taken off in recent months. Nice represents Hu and more than 150 other online personalities. The Plot: China’s $42 Billion Market. Alibaba had reportedly invested US$ 46 million last year in Ruhan, a celebrity incubator that teaches future stars to blog, pose for photos and interact with fans. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. In January, the former consultant was put on furlough after his company lost clients due to fallout from the pandemic. Viya dominates China’s $60 billion livestream shopping industry. There’s good reason for tech companies to believe live shopping could be big in the US: it’s already massive in China. "This is a high intensity job," Xia said. Even Chinese President Xi Jinping has taken notice. For the uninitiated, live commerce is best described as the “infomercial … On November 11, 2019 — the date of China’s … China clearly has had a head start in e-commerce innovations. "It is hard.". That's the question currently facing Seven Zhou, a live-streamer in Hebei province who's trying to carve out a new career on the short video app Douyin, the Chinese version of TikTok. On the Chinese shopping holiday Singles’ Day, live streams on Taobao Live generated $2.85 billion in sales. Meng Hu, a live-stream shopping host in Guangzhou, speaking to fans on Taobao Live. On Alibaba Group Holding Ltd. ’s e-commerce platform, she plays the enthusiastic saleswoman and master of … “Live shopping”, a new generation of tele-shopping, has found spectacular success in China for almost a year. Everbright Securities research has shown that 80 percent of livestreaming purchases in 2019 happened on Taobao Live, the first livestream e-commerce channel in China. In the first half of this year,  more than 10 million e-commerce live-streaming sessions were hosted online, As of March, there were 560 million people watching shopping live-streams in China, an increase of 126 million compared to last June, according to a. Sandy Shen, a research director of digital commerce at Gartner, said live-stream shopping would have taken two or three years to become a mainstream trend in China prior to the pandemic. Tencent, the creator of WeChat, is planning to pour money and resources worth US$ 294 million into its own live-streaming platform Now Live. Alipay and WeChat Pay, with respectively 450 and 600 million active users, are making it very easy to pay while watching video on mobile. In the West, a similar concept was launched in the form of a daily live shopping program “Style Code Live” by Amazon, in March 2016, but was canceled after just one year of broadcast. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. . "For the government, they see this as a trend that can help keep the economic growth, and also help keep the employment," said Shen. "They view this as an opportunity, and it is. "As the economy recovers, the job market is in fact expanding," said Fu Linghui, a spokesperson of the National Bureau of Statistics, at a press briefing last month. Disclaimer. Live streaming is gaining popularity in the West too, thanks to Facebook Live. Singles Day also marked the take-off of the “Entertainmerce”, combination of entertainment and e-commerce. But shopping-as-entertainment is now reborn for a much younger audience – the smartphone generation. The 30-year-old hasn't yet decided whether he'll throw in the towel, but says he is disillusioned with the industry and all the stories of overnight success. Only when you talk enthusiastically can you get your audience excited.". Brands, e-commerce platforms and internet celebrities have made it their new favorite marketing channel to boost their sales. "So many people like me have joined live-streaming, and are selling products and doing the [same] thing.". As Chinese consumers grow ever fonder of live streaming, brands and retailers have quickly understood the potential of this new communication channel. , the main C2C marketplace in China (also operated by Alibaba) already has, . After that, she spends hours each night reading up on products she plans to sell. Join our mailing list to receive 3 weekly insights from Innovation Is Everywhere and stay up-to-date with innovation in retail, fintech, supply chain and more. "Every day I wake up, I work, work, eat, work, and sleep," she said. China’s live stream shopping model may have grown its roots from the model of home shopping channels, but it offers an experience that no other outlet can compare to. In China, the live-streaming craze has been around for more than a year with content ranging from amateur singers to celebrities sharing their daily life. Similar to TV shopping channels but with a faster route to checkout, "live shopping" was popularized by Alibaba Group Holding Ltd.'s Taobao, China's largest e-commerce platform. Tencent, the creator of WeChat, is planning to pour money and resources worth US$ 294 million into its own live-streaming platform Now Live. Few viewers stopped by his channel. For shopping in China, Guangzhou’s Shangxiajiu Pedestrian Street is … Like Hu, he decided to quit with high hopes of making it big. His videos flopped, hardly getting any "likes.". Brands, e-commerce platforms and internet celebrities have made it their new favorite marketing channel to boost their sales. Live-stream shopping grew out of the larger live-streaming movement in China. “Live shopping”, a new generation of tele-shopping, has found spectacular success in China for almost a year. including Adidas, Burberry and Gap, on its Tmall platform. "People who want to do this should be expected to work really hard," said Heng Xia, CEO of NStar MCN, a Hangzhou-based talent agency. China’s Social Credit Score: how can companies leverage on these 3 digits? The e-commerce platform Vip.com and short video app Douyin (the Chinese name for TikTok) are leveraging live … He singled out "gigs like live-stream shopping" as the kind that were "vital" to stabilizing the market. "My throat gets really hoarse. Like most of the world, China has been rocked by an economic and. As Chinese consumers grow ever fonder of live streaming, brands and retailers have quickly … Live streaming is gaining popularity in the West too, thanks to Facebook Live. Ali Express. Part of the allure of venturing into this world is the prospect of a big payday. "It hasn't gone well," he said. Final Thoughts – Online Shopping in China. You can't just do things halfway. Given that in 2019, livestreaming e-commerce … But in China, where there are more than 900 live-streaming sites, it has also evolved into a powerful sales tool.. On Singles’ Day (11 November) 2019 over 50% of merchants on Alibaba-owned retail website Tmall embraced live streaming, to the tune of almost 20 billion yuan ($2.9 billion) of sales.. Live … Alibaba’s “See now, buy now” fashion show on its Tmall platform on November 11, 2016, The live-streaming service of Taobao, the main C2C marketplace in China (also operated by Alibaba) already has more than 10,000 celebrities reviewing beauty, sports, food and baby products, making shopping a real entertainment experience for the new generation. "Most people can't really do it. But the hours can be grueling. For people like Hu, the live-stream host in Guangzhou, the ongoing boom presents both "a chance and a challenge. Eight months ago, Meng Hu quit her job as a flight attendant in Guangzhou, China to pursue her dream of becoming an online star. Instead, it took two or three months, she said. Taobao knows this the best, with related shopping events all year round and limited time online sales. Livestreaming is just one part of a strategy to make shopping … More than 20 people work behind the scenes to support Hu's work, directly or indirectly, by her estimate. To that end, in June they held a three-day live-stream shopping "festival," where businesses. "I think it will boost job numbers only by a little," Pang said. for digital transformation in the retail industry across Asia & Africa for business leaders. At its last Singles Day, China’s biggest sales day, e-commerce giant Alibaba was. Her husband helps out with odd jobs and occasionally pops up on camera, too. Viewers buy goods online from people who show off their latest finds — from lipsticks to laundry detergent — in real-time videos. Live streaming grew by 180% in 2016 in China. Chinese President Xi Jinping talking to a live-streaming host during the set-up of a live shopping session to market local produce in Jinmi, Zhashui county, northwest China's Shaanxi province in April. The production takes a village. Competitors such as live streaming app Huya have also raised US$ 75 million in April 2017 whilst another competitor Huajiao raised US$ 45 million in September 2016. Competitors such as live streaming app Huya have also raised US$ 75 million in April 2017 whilst another competitor Huajiao raised US$ 45 million in September 2016. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. According to the  director of Taobao Live, Chen Lei, the future of live shopping is virtual reality, which has the potential to make the live interaction with the products feel more real than ever. In May, the Ministry of Human Resources and Social Security even added "live-streaming host" to its list of recognized professions, meaning the government would start counting those people as officially employed. The restricted ability of the government to regulate the content of these video, censoring videos that may contain propaganda, has been cited as a key reason behind the banning of these platforms. Céline is managing digital strategy, innovation and digital transformation projects for Fortune500 clients of Innovation Is Everywhere, as well as the digital marketing of the agency. Most stock quote data provided by BATS. Some local governments are even working to transform their towns into live-stream shopping hubs. Estimated revenue per hour generated by different channels of communication in China in 2016 (Kleiner Perkils, Hillhouse Capital). Brands routinely announce tens or hundreds of millions of dollars in sales in a single sitting. E-commerce is steadily invading these videos, regardless of whether it is via a fashion show or internet celebrities reviewing the latest cosmetic products via video; enabling Internet users to buy what they see on the screen in real time. Even the Chinese government has voiced its support, calling the industry the "new engine" of e-commerce growth and encouraging live-streaming as a solution to unemployment, which has risen sharply in China due to the pandemic. At its last Singles Day, China’s biggest sales day, e-commerce giant Alibaba was broadcasting a “See now, Buy now” fashion show, where consumers could buy the latest clothes from over 80 brands including Adidas, Burberry and Gap, on its Tmall platform. In parts of Southeast Asia, for example. This February, for example, China's Ministry of Commerce encouraged e-commerce platforms to help farmers sell their produce online, particularly through live-streaming. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. "The system isn't as simple as it seems.". Shopping online on any of China’s e-commerce websites is bound to make your life in China a great deal more comfortable. However, this explosive growth in online shopping could see a major slowdown, , including Chinese Twitter equivalent, Weibo (. But as Hu and other newcomers are discovering, making it in this field is not easy. This content has been published first in IEV Premium Retail (July-August 2017), our magazine for digital transformation in the retail industry across Asia & Africa for business leaders. But as time went on, Zhou said, he realized that goal was more unattainable than it looked. Hosts can give their fans discount coupons and flash deals in real time, while viewers can click to send their favorite stars virtual "gifts.". "I don't think live-stream e-commerce alone will save the economy," Wang said. In China there are two e-commerce live streaming megastars, Li Jiaqi and Viya (real name Huang Wei). Taobao Live, the live-streaming unit of e-commerce giant Alibaba, recorded sales of RMB 20 billion during the Singles Day shopping event held on Nov. 11, accounting for around 7.5% of the … Analysts predict the trend could catch on overseas, too. She noted that live-stream shopping is still a very small percentage — estimates suggest around 5% — of the country's e-commerce market, and a tiny share of the overall retail sector. Hospitality in Asia : Hotels and Startups Are Reinventing Accommodation, Shajgoj, a online community platform for Bangladeshi woman, in Bengali language, BRICS series #5: Remitix, a South African solution for cheaper remittances. Investments in these live video platforms have multiplied in recent months. It’s already happening in China, where it’s fuelling a huge new industry in live … That could more than double to … ", "Viewers might have doubled, but there's probably about seven or eight times more new live-streamers now," she estimated. Hu and her team make money, meanwhile, through a couple of avenues: The companies pay for their products to be featured, and then Hu earns a commission off of each sale she makes. Top influencers can earn millions of dollars a year, according to Taobao, which compiles a ranking of the highest paying hosts and their estimated earnings. It allowed users to buy products on Amazon that were reviewed during their live show. Alibaba said the live shopping conversion rate is 10 to 20% on its Tmall platform and 30% on its Taobao platform. She typically spends seven hours a day speaking on live-stream to her fans, offering deals on everything from vacation getaways to snacks to skincare products. Other streaming services in China are adapting to get into the live commerce game. Enter live commerce: the convergence of livestreaming and e-commerce that has become China’s favorite way to shop. With livestreaming booming in the country, multinationals Only and Lancôme talk about how they are tapping Taobao Live to drive business. But experts note that there are also scores of people at home wringing their hands. ... Why Does E-commerce Live-Streaming Work So Well in China? Eight months on, Zhou is wondering whether he is cut out for this business. "If you are just a normal, ordinary merchant selling on Taobao, and you are just using all your own employees, with no pre-marketing, you're probably just going to have a couple of hundred people watching. A typical commission rate varies from 6% to 16% depending on the platform, according to the iResearch report. Although the trend has been part of Chinese internet culture for years, analysts say the coronavirus pandemic has made it mainstream. Experts project the industry still has a lot of room to grow. Live platforms … Amazon’s “Style Code Live” daily live show was canceled in March 2017. (Source: Everbright Securities) Taobao Live. Hu, 27, is an influencer, with a twist. "It shouldn't be big enough to move the needle.". The queen of China’s $60 billion ecosystem of live online shopping, Viya earned an estimated 30 million yuan in 2018, according to the most recent figures from Chinese e-commerce … All rights reserved. Live-streaming has become such a normal part of the online shopping experience in China that even the government started recognising “live-stream salesperson” as an official profession this … Chinese celebrity Dayi Zhang, owner of a shop on the Taobao e-commerce site, achieved a revenue of 2.7 million euros in 2 hours of live streaming. According to estimates by venture capital firm Kleiner Perkins in its 2017 internet trends report, live broadcasts. The key success factors of this new channel : entertaining and event-driven formats, celebrity involvement and frictionless mobile payment solutions via Alipay, Alibaba’s payment service, or its competitor WeChat Pay. In Guangzhou, authorities are hoping to turn the city into China's "live-streaming capital." While there are … Taobao Live, the dedicated livestreaming channel launched by E-commerce giant Alibaba in 2016, generated amazing sales of 20 billion yuan ($2.85 billion) during Alibaba’s Singles’ Day 2019 shopping … Hu said she now earns in a month what she used to make in a year. Hu quit her job this year to pursue her dream of becoming an online star. The total scale of China’s live streaming e-commerce industry reached RMB 433.8 billion in 2019 and is expected to double by the end of 2020. Prominent business leaders the right platform to sell have made it mainstream a record total sales of US 17.7. Taobao platform personal information her job this year to pursue her dream of becoming an online star put furlough. On furlough after his company lost clients due to fallout from the pandemic than 20 people work the! Hoping to turn the city into China, '' Xia said an online star and. Is 10 to 20 % on its Tmall platform announce tens or hundreds of of! 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