since2020At the beginning of the year, a sudden COVID-19 pandemic(COVID-19)Rapidly spreading across the country and even globally, businesses had to stop production and offline operations, while physical stores had to suspend their offline business. This had a certain impact on China's real economy, and the lack of offline consumer experience unexpectedly became a driving force for the rise of online 'interactive' live streaming e-commerce.
Frost & SullivanFrost & Sullivan,He Xin, a consulting analyst at Frost & Sullivan's Greater China region and referred to below as 'Frost & Sullivan', wrote an article for China Cosmetics magazine on the topic of 'Live Streaming E-commerce'. They discussed the future development trends of the live streaming e-commerce industry in the post-pandemic era.
China Cosmetics Magazine
since2020At the beginning of the year, a sudden COVID-19 pandemic(COVID-19)The rapid spread across the country and even globally has forced businesses to suspend operations, physical stores to halt offline operations, and had a certain impact on China's real economy. During the pandemic, people actively responded to the national call for home quarantine, and many physical store merchants also adopted methods such as live streaming sales to bring products online, displaying physical goods in front of viewers through live streaming platforms, explaining product features, performance, and prices to guide potential customers into making purchases. The unexpected loss of offline consumer experience has inadvertently become a driving force behind the rise of online 'interactive' live streaming sales. Live streaming sales can stimulate consumers' latent needs, reduce their decision-making cycle, and significantly improve sales conversion rates compared to traditional e-commerce. If there had not been an outbreak of the pandemic, live streaming sales might still be in their early stages of exploration and growth.
01Inventory the development history of live streaming e-commerce in the past three years
Taobao Live Broadcast on2015year12The trial operation started in January, and the format of 'anchor live shopping' was introduced for the first time.
2016The year marked the beginning of "live e-commerce," and in this year,4GThe network has been completely replaced, supporting4GSmartphones on the network have also achieved widespread popularization.2016year3In the month, Mushroom Street officially launched a live streaming entrance;4In January, Taobao Live officially went live; in the same year9In January, JD.com also followed suit by launching live streaming. Over the following two years, Suning, Douyin, and Amazon also joined the ranks of live streaming e-commerce. For a time, the new e-commerce model led by live streaming was unparalleled in its glory. Hundreds of online live streaming platforms emerged domestically, and the number of live streaming users also grew rapidly, sparking a nationwide craze for live streaming.
2018Since [start year], live e-commerce has developed rapidly, with short-video giants such as Douyin and Kuaishou also joining the battle for live sales.2019Since the beginning of this year, live streaming e-commerce has truly entered a period of concentrated explosive growth. Take Taobao Live Shopping as an example.2018The total transaction volume of goods sold through Taobao Live Platform in the year exceeded1000Yuan, a nearly year-on-year increase400%; until2019In [year], the total transaction volume of Taobao live streaming products exceeded2000Yuan, with accumulated41000 million users.
The development history of live streaming e-commerce over the past three years shows an evolution from single-person live streaming to multi-person live streaming.+Brand E-commerceIP addressThe status of live streaming going offline. Specifically, it can be divided into three stages:
Phase 12019Year to2020In [year], the main revenue source was single live broadcasts by influencers:
2016A top anchor who entered Taobao Live in 2021 was one of the earliest to launch live shopping on Taobao. The number of viewers for his first live broadcast was minimal.200However, it quickly reached a transaction volume of 100 million within just four months with live-streamed sales.2017In [year], she even received support from official resources2500With a commission of tens of thousands, she has firmly established herself as the queen of Taobao live streaming.
2016At the end of the year, I was just another leading anchor at the beauty consultant desk in L'Oréal Cosmetics. At L'Oréal Group and Meituan,ONEOutstanding in the jointly organized Taobao Live Project Competition, she became a signed beauty expert under the brand and officially started live streaming.2018year9Month, he successfully challenged “30The Guinness World Record for "the largest number of people applying lipstick in seconds," has made him the holder of the world record for applying lipstick, and he has since been hailed as the "King of Lipsticks." In the same year during "Double Eleven," Taobao arranged a competition between Jack Ma and him to apply lipstick. Having core Alibaba figures partner with marketing shows how much Taobao values him. On that day, he5Sold in minutes1.5Ten thousand lipstick shades, instantly becoming a sensation. Subsequently, she gradually opened accounts on social platforms such as Douyin, Rednote, and Kuaishou, leveraging the phrase “OMG"Rapidly accumulating over [X] million views across the entire network,"5,000A fan base of tens of thousands.
According to data from Southern Finance & Economics, these two leading anchors are in2020year6month,12The monthly sales amount was as high as225.39Yihé139.311000 million, accounting for the same period before10The top two among the big anchors, compared to the third and fourth place finishers Ximba and Degg76.13Yihé46.4With a total sales volume of hundreds of millions, it has a leading advantage in the segment. The positions of Live E-commerce's 'sister' and 'brother' are very secure.
2020The total transaction volume of live e-commerce products exceeded one trillion yuan in the year, with Douyin, Taobao, and Kuaishou standing in a tripartite confrontation.
Phase 22020Year to2021year,Begin to form “TikTok Livecasts for Experts+Brand self-play ” dual matrix model:
In the post-pandemic era, live e-commerce has developed rapidly. As the live shopping market gradually heats up and consumers develop a habit of watching live shopping, leading anchor accounts and Douyin e-commerce service providers have begun to emerge.DP) etc. At this time, brand live broadcasts are represented by domestic beauty products, with well-known brands including Perfect Diary and Hua Xi Zi.
After market exploration, brand self-broadcast has become a major force in live streaming sales that competes with Douyin Live. According to 'Taobao Live2021Data from the Annual Report show,2020In [year], Taobao Live was born1000Among live streaming rooms with sales exceeding 100 million, the proportion of merchants' live streaming rooms exceeds55%slightly higher than the live streaming room for experts.
Data source: Taobao Live2021Annual Report
Released by Southern Finance & Economics All-media Group2020According to the data from the '2023 Annual Live Streaming E-commerce Trend Report', popular categories for live streaming e-commerce are currently concentrated in beauty, clothing, food, etc. The top five categories by sales amount are as follows: women's clothing/Women's Fragrances, Cosmetics/perfume/Cosmetic tools, beauty skincare/Beauty/Essential oils, snacks/nuts/Specialties, cleaning products/sanitary napkin/paper/Incense, total sales amounts are as follows:233.89hundred million,157.91hundred million,59.97hundred million,37.84Yihé33.651000 million. Among them, the sales proportion of women's clothing, cosmetics, and beauty skincare products exceeds72%.
It is not difficult to find that the top three categories, whether it is beauty and skincare, women's clothing, or cosmetics, all target female customers as their main consumer group. Considering that female consumers usually also play the role of household spenders,Therefore, the entry of snack specialties and daily necessities for personal care into popular shopping categories is also driven by female consumers.
The reason why beauty and fashion are popular is that they offer a high margin space, making them more favored during the live streaming anchor product selection process. Food and daily necessities, on the other hand, are standard products with low unit prices and high repurchase rates, which better adapt to the randomness and impulsive consumption characteristics of live streaming sales.
The mainstreaming of live streaming beauty and skincare sales not only manifests in sales figures but also in total sales volume. The report data shows that,2020year6—12Among the top ten brands in terms of monthly total sales, Hua Xi Shi and Perfect Diary, which have already started their own brand live streaming e-commerce initiatives, rank at the top two, with total sales exceeding1180Ten Thousand Orders and983Ten thousand orders, the combined total sales of the two brands account for [X]% of the top ten brands' total sales44.7%Seize the domestic beauty market first.
Beauty and skincare brands such as New York New York, L'Oréal, Lancôme, and Shiseido have also made it into the top ten. The beauty and skincare category has truly accounted for a large portion of live streaming sales.
Source:2020Annual Live Streaming E-commerce Trend Report
Source:2020Annual Live Streaming E-commerce Trend Report
In terms of consumers' preferences for live e-commerce shopping categories, according to the China Consumers Association2020Data from the 'Online Survey Report on Consumer Satisfaction with Live E-commerce Shopping' released annually show that respondents' preference for live beauty shopping also validates the dominant position of this category in live e-commerce.
Consumer preferences for live e-commerce shopping categories
Data source: "Online Survey Report on Consumer Satisfaction with Live E-commerce Shopping"
Putting aside sales volume and sales amount,2020The year is also a critical turning point for new beauty brands to achieve overtaking on the curve by leveraging self-streaming sales. Hua Xiazi, Perfect Diary, and Herses are all leveraging 'Taobao Live'2020annualTop 20Tmall New Brands rank in the top five, with new beauty (including skincare) brands accounting for a significant proportion9A seat. Beauty brands have seized the opportunity for growth by leveraging their own live streaming sales.
Source Taobao Live2021Annual Report
The live-streaming sellers participating in e-commerce also show a clear preference for selling beauty products. 'Taobao Live2021Data from the 'Annual Report' show that among Taobao live broadcasts, beauty and fashion anchors are the most numerous.2019The proportions of the two in the year were14%and12.9%. in2020In the same year, the number of anchors for both categories even saw multiple-fold growth.
Source Taobao Live2021Annual Report
Phase III2021Year to2022In [year], "Renaissance Live"+Brand-owned Video Streaming+E-commerceIP addressThe diversified live streaming e-commerce model of 'Live Streaming ” has emerged, with leading e-commerce live streaming platformsIP addressBirth: Well-known live e-commerce platforms born during this periodIP addressI've made some friends and I'm on the radar with today's hot sensation, Oriental selection.
E-commerceIP addressThe initial growth of many seems inseparable from an explosive peak, namely the celebrity effect.
Just past, “618With Luo Yonghao's departure, the negative effect of 'making a friend' immediately became apparent.2021Top 10 Douyin Live Shopping Brands of the Year3The name dropped to this year's5Name. Founder Huang He emphasized that he does not value the daily transaction volume of individual products “making friends” is about achieving stable output. He said: “We rank first in terms of transaction volume for live streaming products on Douyin every week, month, and year, and are usually among the top three every day.”
On the other side is a bustling “Oriental Selection”.6month10After the topic 'New Oriental teachers teach English while selling products' became popular, Dong Yuhui led 'Orient selection' to rise with the wind and quickly seize traffic.618”Ranked among the top in sales during that period50Among the renowned talents, Oriental selection is1583.2Ranked second with a surge in fan base1000Ten thousand, reached1884.8ten thousand.
The collective 'disappearance' of top talent anchors2022E-commerceIP addressLive streaming may be able to help the industry form a more standardized live shopping model through its clearer organizational structure.
02The super-trend anchor 'disappeared'. What should be done in the future?
This year“618The reality of live streaming is that top-tier anchors are collectively absent. The uncertainty for brands relying on top live streamers has skyrocketed, and what should be done moving forward?
Some data reflect the impact of top anchor 'disappearance' on the live e-commerce market. According to statistics from Xingtu Data, this year “618"During that period (2022year5month31day20:00—6month18day24:00Total online transaction volume is6959Yuan, a year-on-year increase20.3%Among them, the total sales of comprehensive e-commerce platforms were5826Yuan, a year-on-year increase0.7%The total live streaming sales volume reached1445Yuan, Taobao lags behind Douyin and Kuaishou, ranking only third.
But overall, live streaming e-commerce sales this year “618The total amount of '” has increased compared with the same period last year.124.1%This inevitably makes people wonder, when the live streaming e-commerce industry is 'oligopoly gone', the transaction volume of products sold through both e-commerce platforms and live streaming has not shown a significant decline. This also seems to indicate that even without 'oligopolies',If anchors "are still selling the same products and consumers are still buying them, then is the e-commerce capability of these top anchors “overestimated"?"
For brand owners, top anchors may only be icing on the cake, not a lifesaver. According to Feigua data, Perfect Diary, KuaDi, Vienne2022year6month1The proportion of self-play sales in daily sales reached87%,81%,70%; international brands such as L'Oréal,OLAYLancôme's self-promotion content accounted for only44%,24%,2%.
It is worth mentioning that this year's “618"New faces have emerged in live streaming. Previously, New Oriental transformed from education and training to live streaming, followed by Southern Airlines' cross-border exploration in the beauty industry, where flight attendants turned into anchors. They wear delicate makeup and sell cosmetics with an air of familiarity akin to that of flight attendants. According to data from Chan Mama, as of2022year6month17On the same day, since the launch of two Douyin accounts of China Southern Airlines, the cumulative sales are expected to reachMarch 1957Ten thousand yuan, and its liquidity can be said to be quite good.
It can be seen that live streaming e-commerce, as a new consumer model, has brought new development opportunities to the beauty market. Building a professional live streaming team, how to seize the opportunities of the live streaming trend and capture consumers' minds has become a compulsory course for beauty brand owners.
2022year618Comprehensive E-commerce Sales
Source Star map data
2022year618Live e-commerce sales
Source Star map data
With the rise of live e-commerce, a large number have emerged in the past two yearsMCNInstitutions are responsible for incubating and operating influencers, from which they take a commission. However, this model carries certain risks, as there is often a dispute over interests due to the high dependence on 'anchor' influencers. Previously, the equity dispute between Li Ziqi and Weixin was quite publicized.
Founder Huang He, in an interview with Phoenix Technology, replied: 'In the long run, relying on big anchors is unhealthy for institutional operations. In the early stages of entrepreneurship, big anchors can be used to drive traffic, but it's also necessary to cultivate an anchor system. From the perspective of institutions, they should provide enough opportunities and a large stage for influencers so that cooperation between both parties can be more enduring.' He also added: 'When we first started the Jiaojiao Friends live streaming room, we didn't emphasize individuals too much.'IP address"I don't want to just run a small workshop, but rather a systematic company that can be operated for the long term."
There is no doubt that in the early stages of live streaming e-commerce, top influencers and anchors built large fan bases by relying on their personal charm, which in turn boosted the development of live streaming e-commerce based on this traffic. However, the survey report from the China Consumers Association also clearly shows today's consumers' strong demand for 'strengthening anchor quality management, raising entry thresholds,' 'establishing a supervision and regulation system, and strengthening market supervision.' In the current situation where top anchors are collectively 'disappearing,' the industry has entered the second half of its development cycle and requires more professional live streaming e-commerce teams to emerge.
Suggestions on the Development of Live E-commerce Industry from Consumers
Data source: "Online Survey Report on the Satisfaction of Live E-commerce Shopping Consumers"
Therefore, the 'disappearance' of super-trending anchors can be analyzed from three perspectives: user end, brand end, and influencer end.
From the user perspective, after the disappearance of top-tier anchors, overall traffic was dispersed. Viewers who had only frequented a few top anchor live streaming rooms began to explore more live streaming venues.
From the brand perspective, as most of the audience traffic previously gathered by top anchors has begun to disperse, brands can focus their efforts and regain more bargaining power over discounts; at the same time, brands are looking for more self-hosted content, influencer live broadcasts, and e-commerce.IP addressLive room collaboration.
From the perspective of the Creator Platform, it can be seen that after the concentrated audience traffic was split, the traffic to each Creator's live streaming room began to significantly increase. Moreover, as market leaders continue to emerge (SSThe (rank-based) mechanism has disappeared, and every expert's chance of promotion has been unprecedentedly enhanced.
03"Decentralization" has become a development trend.
Currently, the current state of 'decentralization' is very clear. First and foremost, there are super-talented anchors.(SSlevel)The collective exit of top anchors such as Luo Yonghao and Xinba, who controlled the vast majority of traffic across the network, has led to a traffic vacuum and dispersion period. Against this backdrop, topIP addressLive streaming rooms are emerging, such as Liu Xinghong, Oriental Zhenxuan, Jiao Ge You, Big Wolf Dog Couple, etc.
On this basis, the future trend of 'decentralization' development can be summarized into two points.
First, the traditional trend remains unchanged: The live streaming anchor team will continue to seek higher-quality products and pricing mechanisms, develop more innovative sensory-based live streaming content, and build more innovative live streaming scenarios.
Secondly, the new trend in live streaming e-commerce is also the platform's preference: In the future, public domain traffic platforms will favor live streaming e-commerce that can deliver longer live streaming durations.(High live streaming frequency/Live broadcast duration)This is achieved by extending the audience's live streaming duration (with high-quality content) to capture consumer time, and further launching live streams that meet the consumption needs of middle-class women.
In the face of the instability brought about by the COVID-19 pandemic, all industries are undergoing periods of transformation and rectification. Enterprises need to continuously adjust their development models, manage operational risks, and autonomously upgrade for sustainable development. At this difficult time, to maintain the operation and optimization of enterprises, key positions and technical talents have become the most fundamental and core elements.
*This article is published in the journal 'China Cosmetics'. , author He Xin , Original title: Fengqi Live Streaming E-commerce Where is it blowing towards? ">
