China has become the centre for one of the fastest growing ways of shopping – live streaming e-commerce, or live shopping.
Live shopping isn’t exactly new – think of home shopping shows on TV – but it has exploded online, especially over the pandemic. People tune in through smartphones, tablets, laptops and watch influencers show off products, complete with flashing onscreen text and live deals. Viewers can buy instantly, leading to stories of items selling out in minutes.
Live shopping has its origins in China, and Alibaba’s ecommerce site Taobao is undoubtedly the biggest platform for sales. It’s not the only one however, with platforms like Pinduoduo and Douyin Mall growing in size. Companies like Amazon and Youtube have also launched their own live shopping platforms.
Over the past few years, the numbers involved in live shopping have been staggering. In China alone, in 2018, the market value of live-streaming e-commerce was 120 billion yuan (NZD$28bn) - in 2022 it grew to an estimated 3.49 trillion yuan (NZD$818bn) and is expected to reach 4.92 trillion yuan (NZD$1.1 trillion) in 2023. Live shopping also often ties into big sale days across Asia – such as Singles Day, which is quickly becoming one of the biggest shopping days in the world.
Live shopping brings a unique mix of influencers and impulse buying that drives sales. In particular, it brings the style of Instagram influencers to the whole shopping process - for viewers, it can be just as much about the person onscreen than what they’re selling.
Perhaps unsurprisingly, Covid has also played a big part in live shopping’s rise. With consumers – in China especially - more often stuck at home, there was a space for people to turn online for their shopping needs.
But even after the pandemic, it looks like live shopping is here to stay. China’s southern tech hub, Shenzhen has even laid out plans to “become a global live-streaming e-commerce hub by 2025”.
As the industry expands, innovations appear: some businesses offer virtual try-ons, using AR or VR to give shoppers an experience closer to the brick-and-mortar experience. Others are diving into AI as a way to connect consumers better and faster, with personalised recommendations and virtual shop assistants.
It’s not just China that’s onboard with live shopping either.
Countries across Southeast Asia have seen demand increase for these types of services: nearly five in 10 people in SEA watching a live shopping stream each week.
- Asia Media Centre
