In the first half of this year, an average of over 50,000 live e-commerce live broadcasts nationwide every day, with over 260 million viewers——

Live e-commerce, moving towards the "trillion" era

　　On October 16, at the 2020 China Tourism Industry Expo, the anchor promoted food through live broadcast.

Photo by Song Rui (issued by Xinhua News Agency)

　　With a mobile phone and a selfie stick, farmers get rid of poverty and become wealthy with "new farm tools"; start on time, recommend good things, and small and micro businesses have a good opportunity to "chat" with consumers; enter the workshop and shop, traditional brands have A new window to show the image...At present, live e-commerce has become the biggest new hot spot in the consumer field.

　　As an emerging format, live e-commerce seems to usher in a great development of "everything can be broadcast, everyone can broadcast, and everywhere can be broadcast".

Behind the popular phenomenon, what is the current development status of live e-commerce?

What are the driving forces behind its development?

How will it develop in the future?

　　A few days ago, KPMG and Ali Research Institute released the "Report on Live E-commerce Toward a Trillion Billion Market" (hereinafter referred to as the "Report"), which presented the format of live e-commerce in multiple aspects.

Who is involved?

　　——The scale of the live broadcast e-commerce market reached 433.8 billion yuan in 2019, which is expected to exceed one trillion this year; merchants constitute the main force of live broadcast e-commerce

　　In the past two years, consumers have an intuitive feeling: live e-commerce is penetrating more and more fields.

For example, many jewellery, jade and other category merchants originally only sold offline channels, but the live broadcast base model promotes the transformation of a number of offline jewelry merchants.

In Ruili, Yunnan, the Taobao live broadcast base drives jade sales. Currently, live broadcast sales account for about 70% of the local jade sales.

　　The live broadcast crowd is also rapidly expanding.

From the first live broadcast of talents, to live broadcasts of celebrities and entrepreneurs, to live broadcasts of ordinary businesses and farmers, there are many participants.

　　According to data from the Ministry of Commerce, in the first half of this year, there were over 10 million live e-commerce live broadcasts across the country, over 400,000 active anchors, over 50 billion viewers, and over 20 million products on the shelves.

This means that on average, there are more than 50,000 e-commerce live broadcasts per day, with more than 260 million viewers per day.

　　In the Chinese market where the total retail sales of consumer goods exceed 40 trillion yuan, where is the live broadcast e-commerce?

　　"Report" shows that in 2019, the overall market size of live e-commerce reached 433.8 billion yuan, a year-on-year increase of 210%.

However, from the perspective of penetration rate, the penetration rate of live broadcasting in the e-commerce market last year was only 4.1%.

It is expected that the overall scale of live e-commerce will reach RMB 1,050 billion this year, and the fast-growing new economic format of live e-commerce will enter the trillion-dollar era this year.

　　Which groups are supporting live e-commerce?

　　In addition to well-known anchors, in fact, merchants constitute the main force of live e-commerce.

Taobao live broadcast data shows that on this platform, 90% of live broadcasts and 70% of transaction value come from merchant live broadcasts.

During the "June 18" period, among the 15 Taobao live broadcast rooms with a turnover of over 100 million yuan, 9 were all brands and merchants' own live broadcast rooms.

Who is shopping through live e-commerce?

　　The "Report" survey shows that the live broadcast category is dominated by women's clothing, and luggage accessories, food, and beauty and skin care also account for a larger proportion.

This shows that the current live shopping user group is still dominated by women, especially the "post-90s" and "post-95s" group of young female users who pursue fashion and have strong spending power. They are concerned with clothing, accessories, beauty and snacks. The attention is relatively high.

　　What do you think about the incoming live broadcast?

　　——More than 70% of brand owners have increased product sales through live broadcast; the quality of goods is still the key to live broadcast marketing

　　On the first day of the "June 18" sale this year, the sales of more than 37,000 Chinese brands increased by at least 100% year-on-year; the sales of "Chinese time-honored brands" such as Jiannanchun, Luzhou Laojiao, Daoxiangcun, Dunhuang, and Meilin all doubled year-on-year Above; the new beauty brand Huaxizi, the Internet celebrity brand "Li Ziqi" etc. have generated very considerable transaction volume within a minute or two... Although affected by the epidemic, this group of data from Tmall shows that many brands It has won considerable growth, and this is due to live broadcast e-commerce.

　　For brands and merchants, live streaming is not just a temporary move to hedge the impact of the epidemic, but has gradually become one of the regular operating strategies of the physical retail industry.

　　"The rapid development of live broadcast e-commerce to the present must have solved certain problems. Only so many consumers are willing to buy and so many content creators sell through live broadcast." said Li Ming, the head of Taobao live broadcast organization .

　　So, from the perspective of brands, merchants, and operating organizations, what does the incoming live broadcast e-commerce look for?

　　According to the survey, more than 50% of brand owners stated that they started using live broadcast marketing mainly because the company supported innovation and regarded live broadcast as an innovative practice.

However, from the actual effect, more than 70% of the brand owners have improved their product sales through live broadcast, which has played a very good marketing effect.

　　At the same time, more than 60% of brand owners believe that the good reputation of products and services attract consumers to live broadcast rooms.

This shows that for brand owners, the quality of goods is still the key and core of live marketing.

　　A large number of merchants participated in the live broadcast, which also ignited the live broadcast ecosystem.

According to data from Taobao, in June 2019, there were still no proxy broadcasting service agencies on Taobao, and it has grown to 200 now.

A survey of MCN institutions responsible for the production, operation and marketing of live content shows that 97% of the surveyed institutions choose live broadcast commission sharing as the most important revenue channel, followed by advertising and marketing.

　　In addition to the anchors that are well-known to the public, a variety of new jobs have been created in the live broadcast studio, such as assistant broadcast, product selection, script planning, operation, and field control.

According to a study by Renmin University of China, Taobao live broadcast has led to a total of 1.731 million direct and indirect employment opportunities, of which 1.022 million are transactional jobs and 709,000 are new jobs.

　　Brand owners, merchants, operating agencies, anchors, platforms, service providers, users, and many participants together constitute the industrial ecology of live e-commerce and promote the development of the industry.

Can the high-speed situation continue?

　　——In the past 8 quarters, Taobao live broadcast growth rate has remained above 100%, and nearly half of the brands believe that live broadcast e-commerce will continue to develop rapidly

　　What is the future development trend of the live broadcast e-commerce industry?

Can the high growth rate continue?

　　Come and listen to what the business says.

　　When asked about their judgment on the development of live e-commerce in the next year, 45.2% of the brand owners expressed confidence that it will continue to maintain rapid development; 24.1% of the brand owners believe that the live e-commerce will enter a period of stable development; 25.6% Of brands believe that live e-commerce will enter a bottleneck period in the future, and the development speed will slow down.

　　As for the reasons for the above judgment, 68.3% of the brand owners said that because there will be more and more service organizations around the live broadcast e-commerce, the live broadcast e-commerce ecosystem will become more and more abundant; 62.3% of the brand owners said that the platform will give more in the future Traffic support; in addition, 57.3% of brand owners said that in the future, consumers will more and more respect live e-commerce, and will gradually develop the habit of live shopping.

　　Li Ming introduced a few figures: During the "Double Eleven" period in 2019, Tmall's turnover was more than 260 billion yuan, while Taobao live broadcast guided the turnover of less than 20 billion yuan, accounting for only about 7%.

"In this way, Taobao live broadcast still has a lot of room."

　　In the past eight quarters, the growth rate of Taobao live broadcast has remained above 100%, that is, the scale is still doubling.

"According to this trend, the growth trend is still there, and the speed has not slowed down."

　　In addition, Li Ming also looked at the problem around the pattern of practitioners.

"This year, almost half of China's Internet circles are participating in live broadcasts. We believe that there must be enough bonus room for everyone to want to occupy the market as much as possible, rather than withdrawing from the market and not playing." He said.

　　"Live e-commerce will be more ubiquitous." Looking ahead, KPMG China Chief Economist Kang Yong thinks so.

He said that live broadcast will become a new standard for e-commerce marketing. New infrastructure such as 5G will make the live broadcast e-commerce scene more diversified and ubiquitous. The training of live broadcast talents will accelerate, and the live broadcast e-commerce will also become vertical. Development in the direction of specialization.

　　The vertical development of the industry chain is considered to be the main development direction of the organization's live e-commerce business in the next three years.

For example, in the past, the live broadcast of all categories will be transformed to the live broadcast of fine products such as beauty, mother and baby, which means that the company will become more and more specialized and refined in the operation of the live broadcast e-commerce business in the future.

　　The "Report" also pointed out that with the rapid development of live broadcasting, there are also risks such as non-realization of gifts, delayed delivery, exaggerated products or false publicity.

In the future, the live broadcast of different risk points and risk levels should be comprehensively evaluated and classified management, which also puts forward corresponding requirements on the platform.

　　Li Jie