Jing Daily and Content Commerce Insider — well-respected Moodie Davitt Report content partners — have released their annual white paper titled ‘Next Level Live Streaming: How luxury brands can profit from China’s top ecommerce trend’.
[Click on the YouTube icon to see how China Duty Free Group used live streaming to promote the extensive wine offer at CDF-Sunrise in Shanghai Pudong International Airport]
The report analyses how China’s fast-growing live-stream ecommerce industry was accelerated by the COVID-19 crisis. It also outlines the opportunities available for luxury brands via this fast-changing and lucrative sector.
The report notes that an estimated 700 million Chinese customers — who were confined to their homes during lockdown — relied increasingly on digital platforms for their shopping needs.
“Ultimately, live streaming brings together key digital trends of the day — streaming video, influencers, and ecommerce — to offer an unrivalled shopping experience that holds broad appeal across the consumer spectrum” — Larry Warsh, Jing Group Founder
Live streamed content took on an increased relevance as audiences showed a greater willingness to engage with online experiences. The combined final tally from JD.com and Tmall’s 24-hour ‘Singles Day’ shopping event on 18 June reached US$136 billion; a testament to the momentum of the booming industry.
| Live streaming gathers pace in travel retail Live streaming is fast gaining popularity in travel retail with China Duty Free Group leading the charge. As reported, China’s leading travel retailer launched its first-ever live streaming at Shanghai Pudong Airport’s Satellite Terminal on 26 July through CDF-Sunrise Duty Free. The retailer’s audience can now view live streaming on CDF-Sunrise SH’s newly developed miniprogram ‘日上会员’ on Wechat, with IT supported by the TripurX Tech miniprogram. 日上会员features on a live channel on the TripurX miniprogram, which connects the broadcasting room online. TripurX Tech is also experiencing growing success with its inhouse live streaming programme. The TripurX live stream programme, filmed in the company’s Shanghai studio, features a range of popular duty free items, particularly from the beauty category. Recent editions, for example, have focused on LVMH-owned natural, high-end skincare brand Fresh and AmorePacific skincare line Sulwhasoo. Those two live streams drew 250,000 views and 9,800 comments. |
Jing Group Founder Larry Warsh said, “Across China’s network of digital platforms, from online retailers to short video apps, forward-facing luxury brands have been able to maintain their hard-fought brand equity and heritage while catering to customer demands for online purchases and a personal touch.
“The advancement of China’s ecommerce live streaming market has far-reaching implications for any luxury brand. Quite simply, live streaming has become a major avenue for consumers to purchase products and educate themselves about brands.”
How do luxury brands translate their rarefied branding to a medium that is accessible to all? According to Jing Daily and Content Commerce Insider, luxury and live streaming do not have to be mutually exclusive.
The report says that luxury brands must develop live streaming strategies and partnerships to balance competing demands of exclusivity and exposure.
It outlined several key live streaming best practices. This includes setting a goal and planning accordingly; matching brand values with the right live stream talent; exercising caution with partner choice; controlling the narrative; emphasising value for money over discounts; and finding new and innovative ways to entertain digital audiences.
It also highlighted a few case studies of successful live stream campaigns, particularly in the beauty category. The Estée Lauder Companies-owned makeup brand MAC Cosmetics launched a competition-style broadcast via Taobao Live called the ‘Misty Sky Team Challenge.’ It starred ‘lipstick king’ Li Jiaqi and MAC Makeup Artist Xu Jia, promoting MAC’s Tmall Super Brand Day.
On 27 April, Shiseido leveraged Gen Z-oriented social platform Bilibili to live-stream its ‘Blooming Into White’ launch event, which highlighted the brand’s White Lucent range. The broadcast reached a peak viewership of 1.34 million viewers in one day and saw an engagement of 200,000 on-screen comments.
Crucially, the report also notes that luxury businesses should be prepared for increased regulation in the live stream industry. The China Advertising Association recently implemented the ‘Standard for Internet Live Stream Marketing Activity’ to combat false and misleading information in the channel.
In June, local authorities in Zhejiang province — a known ecommerce hub and home to Alibaba’s headquarters — released the ‘Standards for Training and Evaluation of Ecommerce Live Streaming Talent’ to further regulate the sector.
As China leads the recovery of the travel retail industry, live streaming serves as a great opportunity for brands and retailers to engage with Chinese shoppers.
Warsh says that live streaming is here to stay and that luxury brands should embrace the trend in order to thrive in ‘the new normal’ of retail. He said, “Even as quarantines have lifted in China and many shoppers have settled into a new normal where offline purchases and some international travel are possible, much of the new digitalisation of luxury marketing is apparently here to stay.
“Ultimately, live streaming brings together key digital trends of the day — streaming video, influencers, and ecommerce — to offer an unrivalled shopping experience that holds broad appeal across the consumer spectrum.”
Warsh added, “Luxury houses that are able to incorporate live-streaming ecommerce into their China and global strategies in a way that fits their brand heritage, image, and ethos are the ones that will earn greater consumer awareness and revenue in 2020 and beyond.”
