The rise of high-tech and mobile 5G has created a fertile ground for new business model innovation. In China, the new retail channels have become more digitalized, intelligent, and efficient. Livestreaming and short videos further enriched the form of digital commerce and continued to satisfy Chinese consumers' entertainment demands while offering a broader commercial option for the brands to monetize the traffic.
By June 2022, there were approximately 716 million live-streaming users in China, representing a penetration rate of 68.1% among internet users (CNNIC). China's live-streaming e-commerce market has reached about RMB 1.2 trillion (161 billion euros) (iiMedia Research). According to the previously cited iiMedia Research report, the most popular products sold through live selling are "food and beverages (38.7%), personal care (34.3%), home goods (32.1%), apparel and bag (29.9%), fresh food and fruits (27.0%), etc.". When looking at live streaming gross merchandise value, the Average Order Value (AOV) orders with 101-500rmb (14-67 euro) and 301-1000rmb (40-134 euro) top the charts (60%-70%).
As most consumers have adapted to the 'home mode' consumption mode due to the pandemic impact, unlocking the commercial options for leisure consumption will still lead the way in China. For brands and retailers, it is essential to highlight the product value for money. Furthermore, the marketing plans will integrate an omnichannel communication strategy to meet diverse consumer needs.
