Live streaming e-commerce is booming in China after the Covid-19 pandemic
- Whether it's lipstick, fresh oranges or even rocket launches, e-commerce through live streaming has been a hit in China
“Buy it! Buy it! Buy it!”
That’s the battle call of China’s “King of Lipstick,” Li Jiaqi, the live streaming beauty product salesman who once sold 15,000 tubes of lipstick in just five minutes.
Li is one of a rising number of people hawking products on China’s e-commerce and live streaming platforms. Part salesperson and part influencer, they push everything from Louis Vuitton bags to home-grown oranges. And millions are tuning in to watch.
The trend hasn’t quite caught on in other parts of the world: Amazon’s experiments with live streaming haven’t attracted much attention, while Facebook and TikTok have only just begun.
But in a sense, the concept isn’t new. It’s an evolution of the television shopping channel, which has been tempting (usually elderly) viewers into buying jewelry and fancy knives since the 1980s.
Instead of TV, online salespeople hawk their wares on live streaming services. These platforms have grown exponentially in China, as online penetration booms and viewers search for content more exciting than what’s on the risk-averse and government-controlled TV networks.
And then the pandemic struck.
“It is one of the tactics to stimulate online sales for most vendors, especially in the [Covid-19] recovery stage,” said Sophie Pan, research manager at IDC China.
Influencers like Li built their fanbases by appearing to be genuine. Chatly’s Lauren Hallahan tells me that they’re seen both as experts and as peers, helping people to cut through the overwhelming number of choices with their personal picks.
For many, it’s often more comfortable tuning into a live stream than dealing with pushy salespeople in stores.
“The consumer is more in control, they can leave at any point,” says Hallahan.
Behind these purchases often lies a healthy dose of FOMO, or “fear of missing out.” Viewers get bombarded with coupons, deals and alerts of rapidly diminishing stock, enticing them to buy now -- before it’s too late.
Viya and Li are among the many online influencers becoming household names, whether streaming on Alibaba’s e-commerce platform Taobao or popular short video platforms like Kuaishou or Douyin, the Chinese version of TikTok. But the pandemic has also changed perceptions of the role live streaming sales can play in the economy.
(Alibaba is the parent company of the South China Morning Post.)
After the lockdown ended in Wuhan, the pandemic’s ground zero, government officials used live streams to showcase their favorite local products. CEOs of major companies like NetEase and Ctrip appeared on streams to sell smartphones, travel packages and home appliances. IDC’s Pan says using company CEOs adds more credibility to their streaming sales pitches.
The potential to boost business in the aftermath of the pandemic has won live streaming e-commerce newfound respect from the government.
The National Development and Reform Commission launched a plan to encourage newer business models, including e-commerce, while President Xi Jinping has lauded live streaming sales as a way to help rural residents shake off poverty.
But it’s not clear how long the call of “Buy it! Buy it! Buy it!” will continue to be attractive.
“I definitely think that the hype around e-commerce live streaming will plateau at some point,” says Hallahan. She notes that although people will continue to buy from live streamers, the hype around online trends in China tends to last 1-2 years.
After that? Another type of content or platform will gain attention, and the hype cycle begins again.