Livestream Marketing
by Li Xiaoyi
Behind China’s growing online shopping industry is the rise of “livestream marketing”, a new way to promote products in which influencers interact with shoppers, answer questions and showcase products through a livestream.
In this piece, Li Xiaoyi dives into the cultural background that led this specific type of livestream, targeted for marketing, to become so big in China and examines the success of the use of catchy lines and exaggerated expressions by live streamers to sway consumers towards making a purchase.
· Cultures Explained ·
After 2019, if a person who has just arrived in China peruses Chinese shopping apps, he will be surprised to find a conspicuous icon named “livestream marketing” in the home page. Once clicked, the app takes the consumer to an inviting and eye-catching interface. On the page, virtual sales representatives will be sure to entertain, displaying their various products. An even more realistic experience is created from the real-time interaction between sellers and buyers in which one can pose questions to the seller and answers are immediately received and consumers can chat and share reviews amongst each other. In this way, users are transported to the center of a busy street fair without the need to actually leave their homes.
Due to the Chinese population’s online shopping habits, this big and busy fair was successfully moved to online platforms adopting, in recent years, the name “Livestream Marketing.” Thanks to the developed couriers, fast internet speed, and most importantly, the big supply chain under the Chinese e-commerce empire, Livestream Marketing became a convenient tool for purchasing products in China. During the Covid-19 pandemic, online purchases promoted by Livestream Marketing reached its peak. In February of 2021, Taobao, one of the most important Chinese shopping apps, saw an increase of 719% in new sellers across the nation (Ni & Wang, 2020). This boost in retail sales created immense revenues for e-commerce and made up for the economic loss previously caused by the Coronavirus pandemic.
During livestreams, people in charge of presenting products are known as live streamers. This new profession started in China with the first influencer, Li Jiaqi, a now representative of the community, who is known to have the power to sell thousands of lipsticks in mere seconds. Before becoming a live streamer on Taobao, he was a cosmetic shopping assistant in a mall, but it was Livestream Marketing that made him shine and granted him the deserved reputation as the “Lipstick Brother No. 1”（口红一哥）. Short but powerful phrases such as “Oh my god!” and “Buy it now!” fill his live streams, attracting consumers to interact, ask questions, discuss with other consumers, and purchase more products. Today, his popularity became like a guarantee of product quality, so much so that other live streamers place tags such as “Quality assurance! Recommended by Li!” above their products’ title to enhance the products popularity via the trusted endorsement of Brother Li.
Li introducing the cosmetics enthusiastically in his studio using the sales pitches and exaggerated facial expression
Note: Translations of images, clockwise from top left: The color is sooooo beautiful! / Buy it, right now! / BUY (买) / Stunning shades!
credit: https://zhuanlan.zhihu.com/p/127359208
Although being a live streamer seems to demand a lot of effort to attract consumers, the only accessories a live streamer needs are a phone and a tripod. The live streamer can start recording at any time during the day by simply setting up the phone. As a result, these tempting conditions draw a large number of people trying to become influencers, eager to follow Li’s path to success. Despite the intense and growing competition, Li is still one of the top live streamers of the Chinese online cosmetic market with trademarks such as his exaggerated facial expressions. Li is not scared to use his charisma to reach consumers even through the screen, transforming shoppers into duoshouzu (剁手族), or shopaholics.
As the number of consumers keeps increasing, purchasing through Livestream marketing has become a new normal across China. This is directly linked to the live streamers talents and capabilities to influence consumers.
Livestreamers can, for example, create a situation of scarce supply and great demand through counting down the number of products in storage and reading new orders out loud. This tactic gives consumers an illusion that if they do not place their order right away, the products will soon be out of stock. Moreover, Livestream Marketing always accompanies a product promotion that allows people to purchase products at a lower price during a limited window of time. This leaves little time for people to consider the ‘ifs’ and ‘but’ of the purchase. Despite the irrational behaviors, pressing the “Buy now” button right after the visual stimulation gives people a sense of satisfaction and instant gratification which is even more impactful than the later regrets or after thoughts of the purchase.
credit: https://www.nngroup.com/articles/livestream-ecommerce-china/
But why are VTubers called “virtual”? Well, VTubers only exist in the virtual world, usually in the form of anime characters. Live-2D or 3D model technologies are used to synchronize the facial expressions and lips of the characters with zhong zhiren to give them life. In addition, the personality of the VTuber character also exists only in the virtual world. When streaming, zhong zhiren are required to behave or act in accordance with their portrayed character. Interestingly, for audiences the persona of a VTuber is not, as we would imagine, solely determined by his virtual character, but rather by both the character and the person behind it. Some viewers enjoy looking for and discovering personal information of the zhong zhiren behind their favorite VTubers and extend their love and appreciation for the virtual character to the real person.
Not to mention, the whole purchase process can be relaxing and enjoyable. Consumers can stay on the cozy sofa, keep their ears and eyes open, and then captivating recommendations and reviews of high-quality products will come to their screen. It is said that people are getting lazier in the 21st century, and Livestream Marketing follows trend by satisfying people’s desire for convenience and ease. livestreaming can also bring consumers some surprises, including special offers prepared especially for the orders placed via Livestream Marketing, such as coupons and unexpected discounts. These surprises give consumers a feeling that they can earn benefits from shopping in this way.
In addition, the moving images of livestreaming avoid a big problem and previously recurring issue for online shopping: sellers’ tricks. It would happen for example that the actual products were different from the pictures on display, as sellers took pictures from specific angles and only captured part of the products. Now, people can ask the live streamers to showcase the products from all directions and bring the products closer to the lens to let consumers see the details and get a better understanding of the products. Also, amongst the viewers, it is common that brand supervisors will join and observe the product presentation, making sure the presentation does the product justice and is of high quality.
Most importantly, the growth of Livestream Marketing is largely due to its strong appeal to consumers in lower-tier cities in China. Before the surge in demand for livestream marketing, online shopping was common in first-tier and second-tier cities in China, but the consumers in less-developed cities still followed the brick-and-mortar shopping model. Now, the threshold for entering the Livestreaming Market for consumers is as low as the threshold for sellers—consumers only need to download the apps and sign up for an account to enter the live streams and make their purchases. It has even reached even the country side, with local farmers using it to promote their products by showing the environment in which their crops grow and their daily lives in the farm. Consumers in the cities can learn about the unfamiliar life thousands of kilometers away, and therefore place more trust and interest in the products that are being directly sold to them. The increased popularity of Livestream Marketing and the inclusion of a bigger part of the population has taken the Chinese economy to a new level.
In 2021, Livestream Marketing was said to be a lifesaver for the slumping Chinese economy. During the quarantine period, Chinese families continued to have access to their normal food supply and diets because people could get raw materials and condiments through livestream marketing without leaving their homes. After the orders were placed, products would be delivered within a day. In addition, a shared feeling of solidarity took over, with consumers dedicated to supporting farmers and the revival of the nation’s economy by buying more products to help out during a time of crisis. Thanks to Livestream Marketing, sales of goods via livestream channels in 2020 exceeded one trillion RMB, and the industry was estimated to be worth over 30 billion U.S. dollars in 2020 (Xinhua Press, 2021).
Local farmer selling her own crops
Mayors promoting the sales of specialties
Even Kim Kardashian visited the livestreaming studio
While Livestream Marketing is always evolving and striving for the greatest convenience for consumers, it also signifies a bridge between the Chinese traditions and modern culture. Case in point, the Western market has also created platforms relying on the internet, like Amazon and eBay. However, why is the livestream marketing only widespread in China? The core factor is that most of the Chinese people enjoy renao (热闹)—in other words, they like participating in collective activities in a lively atmosphere, such as sitting around a huge table and having reunion dinners together. Before Livestream Marketing, it would be common for sellers to care only about their revenues and show apathy to consumers. However, during livestreams, sellers are expected to be friendly and patient all the time. They answer consumers’ questions and interact with them to attract more buyers.
In addition, Chinese consumers care a lot about other consumers’ comments. If others question the quality, more consumers will echo the opinion and wait for an honest response from the livestreamers. With their own reputation on the line, honesty as a reviewer is always the best policy. As a reward, if the livestreamers “survive” these challenges, they will gain a consumer following built upon trust. Loyal consumers even have a name now, being referred to as huitouke (回头客), those who not only have complete trust in one specific livestreamer but who also introduce their friends to the same. It becomes a two way situation with consumers “paying back” the trusted reviews by inviting more buyers to the livestreams.
https://pandaily.com/top-3-e-commerce-livestreaming-platforms-in-china/
Reading this far, it can be understood that Livestream Marketing is becoming incredibly popular in China and amongst the population as a whole. Yet, some readers may challenge my view by insisting that the popularity of livestreaming products among teenagers is low because people at this age tend to watch livestreaming less often than adults. Although I agree that teenagers’ preferences may be different from the livestreamers target audience, being young adults, especially Millennials, I still maintain that teenagers are equally influenced by Livestream Marketing. The shopping apps attempt to attract people from all generations to click on the livestreaming and watch it.
As a result, the Chinese commercial environment is filled with information about Livestream marketing, whether one likes it or not. What’s more, Generation Z is said to have high expectations of their future career and earnings causing them to be the perfect new consumers for the online shopping market. They are simply not old enough at present to enjoy the advantages of the market because they have yet to make money of their own to spend freely. Nonetheless, they are active watchers, being they are amongst the people who will have the highest screen times when compared to adults and thus will inevitably stumble across livestreamers and reviews daily.
Still curious about Livestream marketing? Remember to enter the livestreaming studios and see what is happening there. You will get a clearer sense of what renao (热闹) looks like and become a duoshouzu (剁手族) who enjoys the feeling of loosening up while interacting with the livestreamers! Remember to visit your favorite livestreamer often. In this way, you can be awarded the title of huitouke (回头客) and become a senior consumer in the Chinese livestreaming market!
Editors | Giulia de Cristofaro
Layout | Lexue Song 宋乐雪
Website | Josh Manto
Who is Li Xiaoyi (李潇怡)?
Xiaoyi is a junior majoring in Behavior Science in Neuroscience track. She is interested in exploring the underlying mechanisms of human behavior and discussing cultural differences. She wrote this essay in Austin Woerner’s EAP class in Spring 2021 and always welcome cultural inquiry from people all over the world.
References
De Mente, B. L. (1996). The Chinese have a word for it: the complete guide to Chinese thought and culture. Lincolnwood, Ill: NTC Pub. Group.
George, M. (2021, January 8). Livestream shopping is the next big thing in retail. Fortune. Retrieved from https://fortune.com/2021/01/07/livestream-video-shopping-hsn-qvc/
Ni, V., & Wang, Y. (2020, May 5). Coronavirus: Can live-streaming save China’s economy? Retrieved from https://www.bbc.com/news/business-52449498
People’s Daily Online. (2021, July). Livestream Shopping Emerges as a Major Channel to Boost Consumer Spending. People’s Daily Online. Retrieved from http://en.people.cn/n3/2021/0728/c90000-9877562.html
Sang, L. (2020, December). Livestream Marketing and Digital Transformation of Enterprise. Marketing Mode. In Fifth International Conference on Economic and Business Management (FEBM 2020) (pp. 217-222). Amsterdam: Atlantis Press.
Xinhua Press. (2021, May). China’s Livestreaming Service Users Reach 617 million in 2020: Report. People’s Daily Online. Retrieved from http://en.people.cn/n3/2021/0519/c90000-9851640.html
credit: https://www.nngroup.com/articles/livestream-ecommerce-china/
