bodyType

customContents

entityId

printArticlePageQuery

filter

article

body

urlAlias

articleSectionsContent

articleSeoArticle

articleSourceHeaderArticle

contentSchemaRenderContent

contentSubHeadlineContent

contentHeadlineContent

mainImagePrintArticleArticle

authorBlockPrintArticleArticle

contentSponsorTagContent

articlePianoPaywallContent

scmpYoutubeContent

hooksTrackPageViewArticle

query printArticlePageQuery(
  $entityId: String!
  $customContents: [CustomContentInput]
  $bodyType: BodyFormatTypeEnum
) {
  article(filter: {entityId: $entityId}) {
    entityId
    body(customContents: $customContents, type: $bodyType) {
      json
    }
    urlAlias
    ...articleSectionsContent
    ...articleSeoArticle_3o8td4
    ...articleSourceHeaderArticle
    ...contentSchemaRenderContent
    ...contentSubHeadlineContent
    ...contentHeadlineContent
    ...mainImagePrintArticleArticle
    ...authorBlockPrintArticleArticle
    ...contentSponsorTagContent
    ...articlePianoPaywallContent
    ...scmpYoutubeContent
    ...hooksTrackPageViewArticle
    id
  }
}

fragment articlePianoPaywallContent on Content {
  __isContent: __typename
  ...hooksPaywallPromiseContent
}

fragment articleSectionsContent on Content {
  __isContent: __typename
  sections {
    value {
      ...helpersCheckIfNewsSectionInFirstIndexSection
      ...entityLink
      name
      id
    }
  }
}

fragment articleSeoArticle_3o8td4 on Article {
  ...hooksArticleSeoArticle
  ...helpersCheckIsPostiesArticle
  ...helpersGetArticleTypeArticle
  entityId
  publishedDate
  updatedDate
  summary {
    text
  }
  subHeadline {
    text
  }
  body(customContents: $customContents, type: $bodyType) {
    text
  }
  keywords
  sections {
    value {
      name
      id
    }
  }
  topics {
    name
    entityId
    id
  }
  urlAlias
  authors {
    name
    id
  }
  images {
    style(filter: {style: "768x768"}) {
      url
    }
  }
  readingTime
}

fragment articleSourceHeaderArticle on Article {
  urlAlias
  ...entityLink
}

fragment authorBlockPrintArticleArticle on Article {
  ...defaultArticleDateContent
  ...authorNamesArticle
}

fragment authorNameAuthor on Author {
  ...entityLink
  name
  entityUuid
}

fragment authorNamesArticle on Article {
  authorLocations
  authors {
    entityId
    location
    ...authorNameAuthor
    id
  }
}

fragment blockquoteQuoteContent on Content {
  __isContent: __typename
  ...contentShareWidgetContent
}

fragment checkersCheckContentContainsStarlingImageContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment contentHeadlineContent on Content {
  __isContent: __typename
  headline
  socialHeadline
  ...contentHeadlineTagContent
  ...helpersUseContentSponsorContent
}

fragment contentHeadlineTagContent on Content {
  __isContent: __typename
  ...hooksContentHeadlineTagContent
}

fragment contentNewsletterWidgetContent on Content {
  __isContent: __typename
  topics {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
    id
  }
  sections {
    value {
      relatedNewsletters {
        ...helpersMassageToNewsletterItemNewsletter
        id
      }
      id
    }
  }
  ... on Article {
    relatedNewsletters {
      ...helpersMassageToNewsletterItemNewsletter
      id
    }
  }
}

fragment contentSchemaRenderContent on Content {
  __isContent: __typename
  ...blockquoteQuoteContent
  ...imageContent
  ...inlineWidgetContent
  ...photoGalleryWidgetContent
  ...scmpYoutubeContent
}

fragment contentShareWidgetContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  shortUrl
  socialHeadline
  headline
}

fragment contentSponsorTagContent on Content {
  __isContent: __typename
  ...helpersUseContentSponsorContent
}

fragment contentSubHeadlineContent on Content {
  __isContent: __typename
  subHeadline {
    json
  }
  summary {
    json
  }
  ...contentSchemaRenderContent
}

fragment defaultArticleDateContent on Content {
  __isContent: __typename
  ...hooksArticleDateUtilsContent
}

fragment entityLink on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  __typename
  entityId
  entityUuid
  urlAlias
  urlRedirect {
    toUrl
    id
  }
  application {
    entityId
    id
  }
  ... on Section {
    fullSectionPath {
      entityId
      id
    }
    parentSection
  }
  ...helpersAppBarVariantBase
  ...helpersApplicationBase
  ...helpersCheckIsPlusArticle
  ...helpersStyleSectionContent
}

fragment helpersAppBarVariantBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsLiveArticle
  ...helpersCheckIsPlusPage
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...helpersSectionContent
  ...helpersStyleSectionContent
}

fragment helpersApplicationBase on BaseWithApplicationAndUrlAlias {
  __isBaseWithApplicationAndUrlAlias: __typename
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostiesPage
  ...helpersCheckIsPlusPage
}

fragment helpersCheckIfNewsSectionInFirstIndexSection on Section {
  name
}

fragment helpersCheckIsAmpEnabledArticle on Article {
  entityId
  types {
    value {
      entityId
      id
    }
  }
  sections {
    value {
      entityId
      id
    }
  }
  disableOffPlatformContent
  sponsorType
  published
  ...helpersCheckIsPlusArticle
  ...helpersCheckIsPostiesArticle
}

fragment helpersCheckIsLiveArticle on Article {
  flattenTypeIds
  liveArticle {
    status
    id
  }
}

fragment helpersCheckIsMainTopicContent on Content {
  __isContent: __typename
  topics {
    entityId
    id
  }
}

fragment helpersCheckIsPlusArticle on Content {
  __isContent: __typename
  ... on Article {
    paywallTypes {
      entityUuid
      id
    }
  }
}

fragment helpersCheckIsPlusPage on Page {
  urlAlias
}

fragment helpersCheckIsPostMagazineArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesArticle on Article {
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersCheckIsPostiesPage on Page {
  urlAlias
}

fragment helpersCheckIsStyleArticle on Content {
  __isContent: __typename
  sections {
    value {
      entityId
      id
    }
  }
}

fragment helpersGetArticleTypeArticle on Content {
  __isContent: __typename
  ... on Article {
    types {
      value {
        entityId
        id
      }
    }
  }
}

fragment helpersMassageToNewsletterItemNewsletter on Newsletter {
  entityId
  name
  alternativeName
  description {
    text
  }
  summary {
    text
  }
  homepageDescription {
    text
  }
}

fragment helpersSanitizeArticleTypeEntityIdsArticle on Article {
  types {
    value {
      entityId
      id
    }
  }
}

fragment helpersSanitizeAuthorTypesArticle on Article {
  authors {
    types
    id
  }
}

fragment helpersSanitizedAuthorEntityIdsArticle on Article {
  authors {
    entityId
    id
  }
}

fragment helpersSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersStyleSectionContent on Section {
  fullSectionPath {
    entityId
    id
  }
}

fragment helpersUseContentSponsorContent on Content {
  __isContent: __typename
  topics {
    entityId
    sponsor {
      ...sponsorTagSponsor
      name
      type
      id
    }
    id
  }
  ... on Article {
    sponsorType
  }
  ...helpersCheckIsMainTopicContent
}

fragment hooksArticleDateUtilsContent on Content {
  __isContent: __typename
  createdDate
  publishedDate
  updatedDate
}

fragment hooksArticleSeoArticle on Article {
  ...helpersCheckIsPostiesArticle
  ...helpersCheckIsPostMagazineArticle
  ...helpersCheckIsStyleArticle
  ...hooksContentHeadlineTagContent
  ...helpersCheckIsAmpEnabledArticle
  entityId
  headline
  socialHeadline
  types {
    value {
      entityId
      id
    }
  }
  authors {
    entityId
    id
  }
  images {
    generic_og: style(filter: {style: "og_image_scmp_generic"}) {
      url
    }
    styles(filter: {styles: ["og_image_posties_article", "og_postmag", "og_image_style", "og_image_scmp_analysis", "og_image_scmp_explainer", "og_image_scmp_editorial", "og_image_scmp_fact_check", "og_image_scmp_debate", "og_image_scmp_live", "og_image_scmp_obituary", "og_image_scmp_opinion", "og_image_scmp_review", "og_image_scmp_series", "og_image_scmp_generic"]}) {
      url
      style
    }
    type
  }
  urlAlias
}

fragment hooksContentHeadlineTagContent on Content {
  __isContent: __typename
  __typename
  ... on Article {
    types {
      value {
        name
        entityId
        description {
          text
        }
        id
      }
    }
    ...helpersCheckIsStyleArticle
  }
  flag
  sections {
    value {
      name
      id
    }
  }
  ...hooksContentHelperContent
}

fragment hooksContentHelperContent on Content {
  __isContent: __typename
  ...helpersSanitizeArticleTypeEntityIdsArticle
  ...helpersSanitizeAuthorTypesArticle
  ...helpersSanitizedAuthorEntityIdsArticle
  flag
}

fragment hooksPaywallPromiseContent on Content {
  __isContent: __typename
  entityId
  ...helpersCheckIsPostiesArticle
}

fragment hooksTrackPageViewArticle on Article {
  entityId
  publishedDate
  headline
  sections {
    value {
      name
      id
    }
  }
  urlAlias
  authors {
    name
    id
  }
  entityUuid
}

fragment imageContent on Content {
  __isContent: __typename
  headline
  ...checkersCheckContentContainsStarlingImageContent
}

fragment inlineWidgetContent on Content {
  __isContent: __typename
  ...contentNewsletterWidgetContent
}

fragment mainImagePrintArticleArticle on Article {
  images {
    title
    url
    isSlideshow
    size_652x446: style(filter: {style: "652x446"}) {
      url
    }
  }
}

fragment photoGalleryDialogContent on Content {
  __isContent: __typename
  __typename
  ...contentShareWidgetContent
}

fragment photoGalleryWidgetContent on Content {
  __isContent: __typename
  ...photoGalleryDialogContent
}

fragment scmpYoutubeContent on Content {
  __isContent: __typename
  entityId
  urlAlias
  publishedDate
}

fragment sponsorTagSponsor on Sponsor {
  name
  type
  images {
    url
  }
}


sections

types

disableOffPlatformContent

sponsorType

published

headline

socialHeadline

authors

images

publishedDate

updatedDate

summary

subHeadline

keywords

topics

readingTime

authorLocations

entityUuid

Tracy Qu

Jane Zhang

One selling point for Kuaishou, the Chinese video-sharing app that has turned into Hong Kong’s hottest initial public offering ever, is its eye-popping growth in “live-streaming e-commerce”, a newly popular form of shopping online in China.
But analysts have said the business model is at risk of increased regulation from Beijing, which could lead to slower growth and make it harder for Kuaishou and similar platforms to profit from the booming service, which often features online personalities or celebrities showcasing products in live broadcasts to woo viewers into placing orders.
In 2020, KPMG estimated China’s live-streaming e-commerce industry was worth about 1 trillion yuan (US$154.6 billion) – a value primarily shared among three players. Taobao Live – from China’s largest e-commerce platform owned by Alibaba Group Holding, the owner of the South China Morning Post – still accounts for about half of the market, according to Qianzhan Industry Research Institute. Kuaishou and its rival Douyin, the Chinese version of TikTok, share the bulk of the other half.
Kuaishou has stood out from the crowd owing to the platform’s “fan culture”, which has made it ideal for growing live-streaming e-commerce. Its gross merchandise value (GMV) from the business has ballooned to 204 billion yuan in the first nine months of 2020, surging from the 59.6 billion yuan it made in all of 2019, according to the company’s prospectus published with the Hong Kong stock exchange.

This has helped strong demand for the Beijing-based company’s stock, which was oversubscribed 1,200 times for its US$5.4 billion IPO head of public trading that begins on February 5. Compared with ByteDance’s Douyin, Kuaishou has an advantage with its users, who trust the idols on the platform and are more willing to buy goods from them. Even though its 300 million daily active users are half the number using Douyin, Kuaishou’s GMV for live-streaming sales could be even higher than that of its competitor. Douyin does not release its figures for the business, but a report from local tech media LatePost said the platform’s GMV was under 100 billion yuan in the first three quarters of 2020.
Analysts see Kuaishou’s ability to sell goods to fans through celebrities as a strength in its road to future profitability. The company lost 9.4 billion yuan in the first 11 months of 2020 despite revenue of 52.5 billion yuan, according to the prospectus. Revenue from “other services”, the section of the prospectus that includes live-streaming e-commerce, reached 2 billion yuan in the first nine months of 2020, or 1 per cent of Kuaishou’s total GMV.
Will Chinese video app in massive Hong Kong IPO be a good investment?
﻿However, the business has faced numerous complaints related to product quality and after-sale services, leading analysts and lawyers to warn of uncertainty regarding future regulation from Beijing.
China’s consumer complaint centre received 21,900 complaints about live streaming in the first nine months of 2020, a rise of 500 per cent from a year earlier. Of those, 60 per cent were specifically related to live-streaming e-commerce, according to the State Administration of Market Regulation (SAMR).
In November, SAMR issued regulatory guidelines on sales through live-streaming which specify legal responsibilities for online platforms, product suppliers and live-streamers. One requirement is for companies to verify the authenticity of the information provided by product suppliers and live-streamers. Other government regulators have also vowed to enhance supervision.
“There will be intensified regulation on live-streaming e-commerce this year,” said Ding Mengdan, a lawyer at Yingke Law Firm in Hangzhou. “The wild expansion of the past will no longer be possible.”
Over the last two years, regulators have largely remained hands-off regarding live-streaming e-commerce amid rapid growth of the business model.
Live-streaming shopping a new black spot in e-commerce
Technically, many existing laws in China could be applied to the business, including laws on e-commerce, consumer rights protections, unfair competition, product quality and advertising. But the power to enforce each of these laws is scattered across different agencies, which include the Office of the Cyberspace Administration and the Ministry of Culture, lawyers said.
Regulators in China usually do not take action until “something has happened”, making regulations in the country largely reactive, said Huang Wei, a partner at Yingke.
The risks of buying through live-streaming became apparent in December after a scandal involving one of the biggest idols on Kuaishou. Xinba, who had 70 million fans on the platform and sold 1.25 billion yuan worth of products in a single session last summer, was found to have been selling fake bird’s nest – an expensive Chinese delicacy.
After the live-streaming session, Xinba’s firm was fined by the local market regulator in Guangzhou for 900,000 yuan. Kuaishou also blocked the celebrity, who accounted for a fifth of the platform’s GMV in 2019, for 60 days.
Kuaishou did not respond to a request for comment.

Wang Sixin, a professor at the Communication University of China in Beijing, suggested China could soon find ways of holding all sides accountable for such incidents, including online celebrities, product suppliers and platforms.
“If they have signed contracts and have a stable business relationship, they share joint and several liability,” Wang said. “That means when something goes wrong, the live-streamer and his team, brands, and in some cases even the platforms, should take responsibility. No one can escape from the rope.”
One weakness of the business model, according to insiders, is that it gives a big share of the revenue to celebrities like Xinba, squeezing profit margins for manufacturers, sometimes leading them to lower product quality to cut costs.
Top live-streaming influencers can be very expensive, often charging rates above those of A-list movie stars, according to industry insiders who spoke with the Post. A top influencer could charge a booking fee of 90,000 yuan to 250,000 yuan for a promotion lasting three to 10 minutes. Some influencers ask for a commission fee on top of those charges, which could be as high as 30 per cent of the sales revenue for the product.
How new millennial billionaires built the biggest rival to China’s TikTok
Influencers also want to make sure the products are as cheap as possible to stay competitive on their platforms, so they press suppliers to cut prices, the insiders said.
The brands agree to the terms because they want to increase awareness and drive new sales, according to Ryan Molloy, CEO of Shanghai-based RedFern Digital, an agency that helps connect brands and influencers. This is despite the fact that it is difficult to turn a profit under these conditions, “because you already have a 20 per cent commission, and then you probably got to do like a 50 per cent discount”, he said.
Since the Xinba scandal, Kuaishou has already started to take action.
A merchant who sells goods on Kuaishou using influencers, who asked to be identified only by her surname Qin, said the platform recently asked her to send in products for a quality check.
Luo Qiong, the vice-president of Kuaishou’s e-commerce department, said during an interview in December with China Market Regulation News that the platform has been strengthening quality controls. This includes a 10-member team that buys products from randomly selected live streams and sends them to third-party institutions to check the quality.
“[The live-streaming industry] has become more rational now. In the past, a single live-streaming show could easily attract tens of thousands of orders,” Qin said. “Now, consumers may think again … as the business becomes standardised and exaggerated promotions are prohibited.”


Kuaishou IPO: live-streaming e-commerce holds promise for future profitability but remains clouded by regulatory uncertainty

Online celebrity Zhang Mofan, right, introduces fresh mangos through the live-streaming at her house in Beijing. Photo: AP

Live streamers’ ranking by sales as of July, 2020 (m yuan)

Live streaming e-commerce market’s GMV and penetration rate

Kuaishou has the hottest IPO in the history of the Hong Kong stock exchange, but despite the promise of its live-streaming e-commerce business model, there are concerns about regulatory oversight after consumer complaints. Photo: Getty Images

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Kuaishou’s live-streaming e-commerce business has set itself apart with celebrities and devoted fans willing to buy whatever they are selling
The business is helping make Kuaishou Hong Kong’s hottest IPO ever, but complaints about product quality have some concerned about future regulation



Kuaishou’s live-streaming e-commerce business has set itself apart with celebrities and devoted fans willing to buy whatever they are selling, helping make the company Hong Kong’s hottest IPO ever.


Kuaishou IPO: live-streaming e-commerce holds promise for future profitability but remains clouded by regulatory uncertainty

Kuaishou’s live-streaming e-commerce business has set itself apart with celebrities and devoted fans willing to buy whatever they are selling The business is helping make Kuaishou Hong Kong’s hottest IPO ever, but complaints about product quality have some concerned about future regulation

Kuaishou’s live-streaming e-commerce business has set itself apart with celebrities and devoted fans willing to buy whatever they are selling

The business is helping make Kuaishou Hong Kong’s hottest IPO ever, but complaints about product quality have some concerned about future regulation