Rising Interest in Health & Wellness
Healthcare awareness is increasing, with more users prioritizing medical care, wellness, and informed consumption.
Since 2020, government departments have established explicit regulations to supervise parties in the live-streaming e-commerce industry, such as merchants, platforms, streamers, and service providers. The sector has transitioned from unrestricted expansion to more tight regulation and established standards. In 2023, regulators issued compliance rules to handle new hazards such as “lowest price agreements” and “virtual human streamers,” with the goal of improving consumer protection and ensuring fair operations.
Overview of Policies Related to China’s Live-Streaming E-Commerce Industry
2020 China Commerce and Media Shopping Committee’s “Basic Standards for Video Live Shopping Operations and Services” China Advertising Association’s “Code of Conduct for Online Live Marketing” The National Radio and Television Administration’s “Notice on Strengthening the Management of Online Showroom Live-streaming and E-commerce Live-streaming” | 2022 Cyberspace Administration of China and Three Other Departments’ “Opinions on Further Regulating Online Live-streaming Profit-making Behavior to Promote Healthy Industry Development” National Radio and Television Administration’s “Code of Conduct for Online Live-Streaming” |
2021 State Administration for Market Regulation’s “Measures for the Supervision and Administration of Online Transactions” Cyberspace Administration of China and Six Other Departments’ “Measures for the Administration of Online Live-streaming Marketing (Trial)” | 2023 Shanghai Municipal Market Supervision Bureau’s “Compliance Guidelines for Online Live Streaming Marketing Activities (Revised Draft for Comments)” Hangzhou Municipal Bureau of Justice’s “Compliance Guidelines for the Live E-commerce Industry (Draft for Comments)” |
Growth Potential in Live-Streaming E-Commerce Amidst Cautious Consumer Spending
Consumers are currently being cautious with their purchases, preferring online outlets that provide both price and experience advantages. In 2023, China’s per capita consumer expenditure to per capita disposable income ratio was 68.3%, which was still lower than it was before the epidemic. Despite this cautious expenditure, online retail sales of tangible items grew steadily from 2019 to 2023, strengthening their market dominance. The transition to online shopping has offered continued growth potential for the live-streaming e-commerce business.
High Penetration of Short Videos Drives Growth in Live-Streaming E-Commerce
The widespread use of short videos has created a substantial consumer base for the live-streaming e-commerce industry. By June 2023, there were 1.03 billion short video users, representing 95.1% of internet users, with many platforms also offering live-streaming content. This high penetration rate has facilitated the conversion of short video users into live-streaming e-commerce participants. As of June 2023, there were 530 million live-streaming e-commerce users, or 59.5% of online shoppers, making it a major channel for purchasing goods. As the number of live-streaming e-commerce users continue to grow, the industry’s traffic pool is expected to expand further.
Technological Advancements Fuel Digitalization and Efficiency in Live-Streaming E-Commerce
Advancements in technology are driving the live-streaming e-commerce industry towards greater digitalization and intelligence, improving operational efficiency. Initially, digital technologies were used primarily in product selection and recruitment. However, as digital transformation accelerates, these technologies are now being applied throughout the entire live-streaming e-commerce process. This includes using advanced data analysis for smarter product selection, which enhances efficiency and helps identify trending products. Service providers are continually integrating new technologies at every stage, fostering the industry’s shift towards digital and intelligent operations.
Rising Capital Investment Accelerates Growth and Diversification in Live-Streaming E-Commerce
Capital institutions are increasingly investing in live-streaming e-commerce service providers, leading to more investment and faster development of the industry ecosystem. Tighter regulations since 2020 have made professional service providers essential for standardizing operations, boosting their appeal to investors. In 2023, all 11 financing events in China’s live-streaming e-commerce sector involved service providers. These leading providers are now also investing in upstream enterprises, offering capital and additional services like marketing, consumer insights, and R&D support. This diversification of investment stakeholders is accelerating the development of the industry ecosystem.
China’s Live-Streaming E-Commerce Market Shows Robust Growth and Stable Future Prospects
In 2023, China’s live-streaming e-commerce market reached 4.9 trillion RMB, marking 35.2% year-on-year growth. Although the growth rate has slowed compared to earlier stages, the industry continues to expand. iResearch forecasts an annual compound growth rate (CAGR) of 18.0% from 2024 to 2026, suggesting a stable growth trajectory and a trend toward more refined development in the future.
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Healthcare awareness is increasing, with more users prioritizing medical care, wellness, and informed consumption.
The share of per capita consumption expenditure relative to disposable income can be divided into two phases: before 2019 and the “post-epidemic period” after 2020.
Introduction Thai brands targeting Chinese consumers—whether residents or tourists—need to shift to a data-driven, content-focused strategy, which is key to successful Chinese marketing.
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