Thanks to live-streaming craze, China’s midyear shopping festival has moved beyond e-commerce
- China has become an influencer economy with almost all online consumers buying products based on recommendations by their idols
- For more than 10 years the midyear shopping festival has been a sales boost for e-commerce players like JD.com, Pinduoduo and Alibaba
Beijing resident Maggie Li had never taken part in China’s midyear 618 online shopping festival until her favourite live-streaming anchor Li Jiaqi – the country’s top beauty product influencer – appeared on the shopping extravaganza.
The 38-year-old Li admits she is a live-stream shopping maniac, having spent over 13,000 yuan (US$1,833) on products that her idols endorsed during the shopping event, which kicked off on June 1 and runs till Thursday. The shopping gala, named for the date JD.com first launched online sales – June 18, 2004 – works in a similar fashion to the Singles’ Day shopping festival run by its rival Alibaba Group.
For more than 10 years, the midyear shopping festival has been a sales boost for e-commerce players like JD.com, Pinduoduo and Alibaba, owner of the South China Morning Post. As more fans like Li spend big – making their streaming idols rich in the process – it has become apparent that the country’s traditional online shopping business is no longer just for e-commerce players.
Similar to conventional luxury and beauty brand ambassadors, the live streamers endorse products and services on the platforms, converting their millions of online fans into potential customers, especially during festivals like 618.
China’s retail economy has become influencer-driven, with almost all online consumers buying products based on recommendations by their idols. That trend has enabled live streaming and video platforms like Kuaishou and Douyin, which have cultivated a roster of hugely popular influencers, to participate in the e-commerce market through partnerships with the online sales platforms.
At the end of May, JD.com partnered with Tencent-backed Kuaishou to boost its presence in live streaming. Under the partnership, consumers were able to make purchases directly from the live streaming platform without being redirected back to JD.com, which provided the delivery and after-sales service for the customers. Kuaishou’s 300 million daily active users were expected to give the e-commerce specialist a strong boost during the shopping spree.