Livestream Shopping Market Contributes RMB 24.2 Billion to China’s Mid-Year Shopping Festival – Posted by O’Ratings
SHANGHAI, July 13, 2020 / PRNewswire / – O’Ratings, a third-party observer, released data from the Chinese Mid-Year Shopping Festival on 1st of July. It showed that live shopping hit a new high in China, contributing 24.2 billion RMB (US $ 449.5 million) in sales during the recent mid-year buying campaign. Live streaming is becoming a staple in the promotion of e-commerce products.
Direct purchases have been developed since 2016 by e-commerce platforms in China and sparked an upsurge in 2018, when popular live broadcasters could sell more than 300 million RMB (US $ 43 million) per year and their online viewers could reach 10 million at a time. During the pandemic, bridging the gap between source of goods and consumers, the Chinese government encouraged people to use live streaming to sell unsaleable goods caused by massive lockdowns and improved the live shopping industry. Now, live broadcasting is essential for marketing products in China.
O’Ratings monitored 806,000 live chat rooms across various platforms on June 18e, from China mid-year shopping festival, and it showed the sales amount was over 3.5 billion RMB (US $ 500.6 million) and 412 million viewers watched live broadcasts that day. Taking into account the sales since the very beginning of the 618 buying campaign, the total sales were 24.2 billion RMB (3.4 billion US dollars). The top 3 selling categories on Taobao were jewelry, clothing, and food, and the top 3 on Douyin (Chinese TikTok) were food, mother and baby products, and cosmetics.
Five clues that O’Ratings is watching
- Live broadcast ratings
- Peak viewers
- Market share
- Sales index
- Commitment index
Key findings from O’Ratings surveillance data
- Many brands pay a lot of celebrities to promote their products, but the performance of professional streamers is much better than that of celebrities. O’Ratings selects 30 popular live broadcasters and 30 celebrities, and analyzes their live broadcast performance over 10 weeks. This shows that professional streamers’ sell index was 8 times higher than that of celebrities.
- Timing is very important when retailers choose live streamers to sell products. After calculation, he finds that each product is sold at a fixed frequency. These fast-consuming products have a higher frequency than durable products. For example, the frequency of snacks is one day, while that of cellphones is 55 days. Because if a live streamer sells cell phones today, fans don’t need to buy another phone for some time. When retailers promote their products through live streaming, they should notice the time period of the product and whether the live broadcaster has sold the same type of product recently.
- Non-standard products, like jade and pets, have great potential for live streaming. With the live streaming market taking shape, popular retailer-preferred live broadcasters occupy most of the market share. But they cannot substitute for live-streamers who sell unique products. For example, a baker tells how he bakes a cake and sells it.
O’Ratings is a third party live broadcast monitor. O’Ratings records live streaming data across different platforms, analyzes the latest trends and provides information on the live streaming industry.