Just as China sets the world pace in e-commerce, it's doing the same for live streaming. More than 100 million viewers watch a live online video event every month. The live streaming format typically involves a famous person showing a product and answering questions from a digital audience. It takes place in real-time and usually on a smartphone, accounting for some 95% of e-commerce activity in China.
China is filled with live streaming webcasts, much of it non-commercial, such as young people discussing their lives, showing dance moves, etc. But live streaming has also become one of the most cost-effective tools for e-commerce in China.
Why are consumers and brands both welcoming this medium?
First, there's a functional advantage to live streaming. It allows experts to show the product being used, to show various techniques, and to point out the results. The audience can ask questions in anonymity (匿名), but the experience is interactive and immersive (沉浸式的).
Consumers feel that they are actually handling the product themselves. Instead of picking a product off a shelf, they are now part of the process, shaping the outcome from the convenience of the living room sofa. The best live streaming allows room for a joke, or even a small mistake. After all, this is how friends talk with one another. As consumers grow in experience and taste, they would rather participate in a chat. Live streaming invites the brand into the home in much the same way you would invite a friend.
Consumers often feel a sense of empowerment (授权). The brand must be responsive to viewers in real time because consumers have the power to hold them responsible for their products through questions.
Live streaming can also be particularly useful for new-to-market brands who do not have the ability to create a buzz. Live streaming provides assurance the product is used, accepted and sometimes loved.
