RN I’m watching a “live streaming commerce” on Taobao with my mom, with over 18 MILLIONS others watching and shopping together
This “online night market” phenomena is an amazing by-product of COVID 19 in China
I will try to explain the origin and mechanism in this thread
This “online night market” phenomena is an amazing by-product of COVID 19 in China
I will try to explain the origin and mechanism in this thread
The prerequisite:
There are two kinds of infrastructures Physical highway and information highway
China has been building massive network on both. The physical highway that leads to the very rural areas and internet access covers entire China (now is undergoing 5G upgrade)
There are two kinds of infrastructures Physical highway and information highway
China has been building massive network on both. The physical highway that leads to the very rural areas and internet access covers entire China (now is undergoing 5G upgrade)
The origin of “streaming commerce”
Starting last 2 years, online shopping behavior has seen a huge paradigm shift: from previous in the standard Taobao shop where you interact with CS ppl there, to shop with influencers who showcase items in live streaming
Starting last 2 years, online shopping behavior has seen a huge paradigm shift: from previous in the standard Taobao shop where you interact with CS ppl there, to shop with influencers who showcase items in live streaming
In Taobao’s 2019 stats top influencers can easily sell over 250M yuan in 2 hours, basically $20M GMV per hour per person!!!
All they do is like my screenshot above, live-streaming to showcase how the product work and have purchase link embedded
All they do is like my screenshot above, live-streaming to showcase how the product work and have purchase link embedded
It’s just insane, this streamer I’m watching now, sold 20,000 units of iRobots in 2 mins
Her fans basically mad dashing to buy stuff she recommended
offline sales ppl used need to do ton of convincing work in order for you to buy but now it’s the opposite - buyer side FOMO
Her fans basically mad dashing to buy stuff she recommended
offline sales ppl used need to do ton of convincing work in order for you to buy but now it’s the opposite - buyer side FOMO
before COVID live stream shopping is more for entertaining/social purpose+ for influencers to cash out clout, but after COVID this quickly become a household thing as folks cant get out and mall are not fully open
first time farm to table, factory to house become widely true
first time farm to table, factory to house become widely true
another supply-side driver is that COVID hits exporters badly, many of them have hard time offloading excess capacity
so they partner with influencers to co-sell via stream, at close to cost price
for the 1st time, many Chinese can buy high-quality stuff with dirt cheap price
so they partner with influencers to co-sell via stream, at close to cost price
for the 1st time, many Chinese can buy high-quality stuff with dirt cheap price
farmers many start streaming from their phone and sell fresh produce at the spot
the mighty logistic network in China makes this possible, now we buy most of our fruits through streaming, in the stream you can see how they pack your fruits and tell them your specific requirement
the mighty logistic network in China makes this possible, now we buy most of our fruits through streaming, in the stream you can see how they pack your fruits and tell them your specific requirement
the streaming commerce phenomena is a hybrid product of physical and information highway availability + excessive capacity+ buyers want a more personalized way of shopping + better evaluation of product via stream to offer a high-end customer experience + COVID stuck ppl indoor
another perfect example of @chr1sa's longtail effect, working with the physics information tends to converge where the friction is the least (fight that entropy!
SARS spurs ecommerce 1.0 in China, COVID now spurs 2.0
expecting to see more of 2.0 mobile internet product emerge
SARS spurs ecommerce 1.0 in China, COVID now spurs 2.0
expecting to see more of 2.0 mobile internet product emerge
Forgot to explain the difference with QVC/Tv home shopping: simply put QVC is curated/centralized and this “online night market” is bottom up/decentralized
