Live streaming — the act of creating real-time online video content — has exploded over the last few years.
In China, legacy ecommerce giants like Tmall and JD are reaping rich rewards through live streaming, earning a combined gross market value worth USD 11.4 trillion. Importantly, ecommerce channels like TikTok, WeChat, and Pinduoduo are emerging as unlikely contenders, with gross market values on par with traditional ecommerce retailers.
As a result, China’s online retail sales volume stood at an eye-watering USD 13.1 trillion in 2021 – and in 2022, live ecommerce sales are expected to contribute as much as $423 billion to the sector, according to data from McKinsey.
“In 2022, we are seeing a convergence of online channels, where ecommerce channels are becoming content-oriented, while social channels are incorporating ecommerce elements,” said Jingyin Qiu, Senior Solution Manager, Yimian, Ascential Digital Commerce.
TikTok especially is one to watch, with an annual growth rate of 790% in 2021. “While TikTok is less than a tenth of Tmall in terms of size and volume, it has already earned as much as 60% of Tmall’s gross market value for the beauty category — in the first half of 2022 alone,” she continued.
These live streaming insights were featured in Ascential Digital Commerce’s recent webinar on the topic, as well as guidance on how brands can maximise live streaming ROI.