Live E-Commerce Video Marketing in China: Lessons For Western Ecommerce Merchants

The growth of e-commerce live video and live shopping in China are just testaments to the impact video marketing will have in the e-commerce industry around the world.

Live e-commerce video marketing or "live streaming commerce" is a new e-commerce trend in China that is changing the way people shop online.

It is an interactive and engaging way of shopping where merchants and their influencers showcase their products live to audiences who can participate by commenting, shopping, and asking questions in real time. Many consumers also use it to live stream their own shopping experience.

What are the benefits?

The trend has many benefits for both buyers and sellers. Companies in China using it regularly report conversion rates approaching 30 percent, up to ten times higher than in conventional ecommerce. Plus it's becoming a great opportunity to improve brand appeal, with some companies reporting their share of younger audiences increase by up to 20 percent.

Welcome to the new ecommerce revolution?

The livestreaming commerce market in China has grown exponentially over the last few years at a compound annual growth rate of more than 280% between 2017 and 2020, to reach an estimated $171 billion in 2020. This growth has only been intensified by the pandemic, and Chinese sales are expected to reach $423 billion by the end of 2022.

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Sites like Alibaba, Taobao, Tmall, and JD.com are now offering live e-commerce video streaming shopping sessions on a regular basis. In 2020, the first 30 minutes of Alibaba’s Singles’ Day pre-sales campaign on Taobao Live generated an impressive $7.5 billion in total transaction value. Considering China’s experience with this trend, analysts forecast that live-commerce-initiated sales could account for as much as 10 to 20 percent of all e-commerce by 2026.

So what does it all mean for Western e-commerce merchants?

Many ecommerce merchants in the US and in the West are just starting to explore this medium for their own businesses and see it as a future opportunity as well.

However, there are some differences between the Chinese market and the Western markets that need to be taken into account before jumping into this trend. Here are some lessons from the Chinese live e-commerce video market on how to start your own e-commerce video marketing strategy if you haven't already:

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  1. Live e-commerce video is not only about live-streaming products and services, it also includes live-streaming events, live customer service chat, and so on. It’s better to provide a variety of content types to attract more viewers, not just product demos.
  2. Rely on the technology of one social-media channel (such as TikTok, Instagram, or Facebook) or marketplace (such as Amazon Live, Taobao, or Tmall).
  3. The success of livestreaming ecommerce depends on the quality of the video stream, the connection speed, and the size of the screen shown on the video player or mobile phone screen.
  4. The success of your sessions also depends on how well you can interact with customers through real-time online selling, promotions, games, events, shows etc.
  5. Follow up with those who become customers and highly engaged viewers through asynchronous video messages post live streaming sessions. You can now record once and use AI tools like Maverick to create and send personalized e-commerce videos at a scale where you call each customer by name. This allows you to keep the video experience with your fans and customers alive even after a live session. The setup is quick and very cost-effective. The more personal the video the better. More information and demos here: https://www.trymaverick.com/.

    What are the benefits of e-commerce video marketing?

    E-commerce video marketing can be a powerful tool for businesses of all sizes. By creating engaging videos, businesses can reach a wider audience and promote their products or services in a more effective way. Additionally, e-commerce videos can help businesses to build trust with potential customers and create an emotional connection with them.

    There are many benefits of e-commerce video marketing, but some of the most important ones include the following:

    Reach a wider audience: With e-commerce videos, businesses can reach a much wider audience than they would be able to through other marketing channels. This is because videos can be shared easily online and viewed by people all over the world.

    Build trust: E-commerce videos can help businesses to build trust with potential customers. This is because when people watch a video, they can get to know the business and see that it is credible and trustworthy.

    Create an emotional connection: E-commerce videos can also help businesses to create an emotional connection with potential customers. This is because people are more likely to remember and connect with a video that has an emotional element to it.
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