Inhouse livestreaming: Why Brands create their own livestreaming in China ?

Why Brands want to become their own KOL?

Why they want to do livestreaming in China?

• To avoid to depend on KOL
• To avoid to pay fees to these livestreamer that are more and more expensive
• To create loyalty to customers
• Create quality Show
• To create brand awareness

Livestreaming – E-Commerce in China

• E-Commerce Livestreaming Growth in China:
  • Livestreaming contributed to over 10% of China’s total online retail sales in 2023.
  • Predicted to rise to 24.3% by 2024, as per iResearch data.
• Major Players Leveraging Livestreaming:
  • E-commerce giants like Alibaba and JD.com are utilizing livestreaming.
  • Short video platforms such as Douyin and Kuaishou are also significant contributors.
• Market Dynamics:
  • Currently, e-commerce platforms dominate livestreaming.
  • However, Douyin and Kuaishou are rapidly gaining ground.
  • There’s a shift in Chinese consumer behavior and shopping preferences.
• Platform Differences in Livestreaming:
  • E-commerce sites (e.g., Tmall, JD) focus on intentional shopping.
  • Livestream sales depend on store or brand traffic.
  • In contrast, Douyin primarily aims to drive sales through impulse buys.
• Operational Variations:
  • Tmall store livestreamers operate leanly, often working solo.
  • Douyin’s livestreamers generally require a team of about three for support tasks.
• Douyin vs. Kuaishou in Livestreaming:
  • Douyin leads over Kuaishou in gross merchandise value (GMV) targets.
  • Kuaishou focuses on a consumer-to-manufacturer (C2M) model, building e-commerce based on social trust.
  • Douyin incorporates more social media features.
• User Engagement and Strategy:
  • Kuaishou bonds strongly with users, popular in lower-tier cities.
  • Douyin and Kuaishou are adapting strategies from each other to enhance their e-commerce ecosystems.

Inhouse livestreaming in China

Inhouse livestreaming in China has emerged as a major trend in recent years, reshaping the landscape of digital content and e-commerce. This phenomenon is largely driven by China’s vast internet user base, innovative technology platforms, and unique social and consumer behaviors.

The Rise of Inhouse Livestreaming

Inhouse livestreaming refers to live online broadcasts typically conducted within the confines of a business, home, or studio setting. In China, this trend has gained immense popularity, becoming a standard feature on major platforms like Taobao, Douyin (TikTok’s Chinese counterpart), and Kuaishou. Unlike Western platforms that often focus on gaming or entertainment, Chinese livestreaming platforms cover a wide range of content, including product demonstrations, educational content, and personal vlogs.

How Can Foreign Brands Promote Their Products Through Live-Streaming in China?

Driving Factors Behind the Trend

Several factors contribute to the success of inhouse livestreaming in China:

1. Technological Advancements: Rapid advancements in mobile technology and internet infrastructure have made livestreaming accessible to a vast audience. High-speed internet and smartphone penetration in urban and rural areas alike have played a crucial role.
2. E-Commerce Integration: Platforms like Taobao have seamlessly integrated livestreaming with e-commerce, enabling viewers to purchase products in real-time as they watch. This integration has revolutionized online shopping, providing a more interactive and engaging experience.
3. Cultural Appeal: In Chinese culture, there’s a strong emphasis on community and collective experiences. Livestreaming creates a sense of connection and immediacy, appealing to these cultural values.
4. Diverse Content: The range of content available through inhouse livestreaming is vast. From celebrity-hosted shows to everyday individuals sharing their lives or expertise, there’s something for everyone.

Economic Impact : 1 Million of KOL live of Livestreaming

The economic impact of inhouse livestreaming in China is significant. It has created new job opportunities, such as livestream hosts and content creators, and has become a crucial marketing tool for businesses. In 2022, China’s livestreaming market was estimated to be worth billions of dollars, with further growth expected.

Challenges and Regulations

However, the rise of inhouse livestreaming has not been without challenges. Issues such as content regulation, consumer protection, and intellectual property rights have come to the forefront. The Chinese government has implemented stricter regulations to address these issues, ensuring a more standardized and responsible livestreaming environment.

The Future of Inhouse Livestreaming in China

Looking ahead, inhouse livestreaming in China is poised for continued growth and innovation. With the integration of technologies like augmented reality (AR) and virtual reality (VR), the immersive experience of livestreaming is expected to reach new heights. Additionally, the trend is likely to influence global markets, setting a precedent for how livestreaming and e-commerce can be integrated in other parts of the world.

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