Just as China sets the world pace in e-commerce(电子商务), it's doing the same for live streaming. More than 100 million viewers watch a live online video event every month. As an e- commerce tool, the live streaming format typically involves a famous person showing a product and answering questions from a digital audience. It takes place in real time (实时) and usually on a smartphone, which accounts for some 95% of e-commerce activity in China.
China is filled with live streaming webcasts, much of it non-commercial, such as young people discussing their lives, offering diet tips, etc. But live streaming has also become one of the most cost-effective tools for e-commerce in China.
Why are consumers and brands both hugging live streaming?
First, there's a functional advantage to live streaming. It allows experts to show the product being used, to show various techniques, and to point out the results. There's also a feeling of authenticity(真实性)that comes from livestreaming because the audience can interact(互动)with the experts by asking questions in real time.
Consumers feel that they are actually handling the product themselves. Instead of picking a product off a shelf, they are now part of the process, shaping the outcome from the convenience of the living room sofa. The best live streaming allows room for a joke, or even a small mistake. After all, this is how friends talk with one another. As consumers grow in experience and taste, they would rather participate in a chat. Live streaming invites the brand into the home in much the same way you would invite a friend.
Consumers often feel a sense of empowerment (赋予权力). The brand must react quickly and positively to viewers in real time because consumers have the power to hold them responsible for their products through questions.
Live streaming can also be particularly effective for new-to-market brands who do not have the ability to create a buzz because it provides a guarantee that the product is used, accepted and loved.