Scaling the Great Wall: Social Selling to China
- Jacqueline Leou
- Nov 17, 2023
- 3 min read
Updated: Nov 22, 2023
I have a confession.
I’m addicted to C-dramas. (That’s Chinese television dramas to the uninitiated.)
The protagonist of the latest drama I'm watching runs her own e-commerce business.
She sells products by showcasing them through livestream e-commerce. Viewers engage in real-time live chat and purchase by clicking a link to an integrated payment system.
The concept of livestream e-commerce doesn’t exist in Australia.
The closest is late-night home-shopping channels that direct you to call a phone number or go to a website.
And nobody really needs those steak knives.
The Big Business of Social Selling
In China, social selling online is big business.
Source: Data Reportal
In 2021, China’s livestream e-commerce generated 2.27 trillion yuan in sales (approximately AU$488.5 billion). With over 25% of all retail goods being sold online, it’s little wonder that the average person in China now spends almost 6 hours a day on the internet.
And this is all to do with China’s seemingly-overnight digital leap into a “mobile-first” nation. As of August 2023, over 1.079 billion people in China are now internet users.
Source: Forbes
Want a slice of that pie?
If you’re targeting customers in China, there are three things you need to know.
1. Forget Facebook, YouTube and Google.
They’re big in the West, but they’re banned in China. #GreatFirewallOfChina
Don’t waste your marketing yuan.
Which platforms should you use? These two should definitely get a look-in:
WeChat – an integrated all-in-one super platform that offers users a huge range of unique functions. Imagine if the love child of Facebook and WhatsApp married Instagram, and then had an affair with Google Maps, Zoom, Uber and PayPal. That’s WeChat.
With over 1.31 billion active users monthly, brands are able to leverage WeChat to share content and build customer loyalty. The full customer journey is covered on WeChat – and it’s a “sticky” one at that.
Want to learn more about WeChat? Check out this guide.
Source: Business Insider
Douyin – TikTok’s high-achieving sister. With over 700 million active users every day, Douyin’s functionality excels at short-form videos and livestreaming. Viewers can click a link to purchase the product an influencer is showcasing. With its own payment system and market-leading algorithm, Douyin offers brands a complete ecosystem for social selling.
Source: CGTN
2. Understand the Environment. Know Your Audience.
I sound like a broken record. But understanding the potential tripwires, especially in a culturally different country will save you.
In 2018, Mercedes-Benz caused a firestorm in China and had to apologise after posting an inspirational quote from the Dalai Lama on Instagram. Zara, Marriott and Qantas also had to issue apologies for recognising Taiwan and Hong Kong as countries.
Source: BBC
Key takeaway from this? Know your audience. And do your situational analysis. Porter’s Five Forces and PESTLE are your BFFs.
3. Things change rapidly. Keep up.
The social media landscape changes dramatically fast – new platforms, functionality and trends.
With the current economic slowdown, consumers are tightening their purse strings. As sales fall, livestreamers are struggling to find and retain work. Some brands, like Apple, now use employees to livestream events and products on shopping platforms without the e-commerce component.
This departure from live selling, and using employees instead of influencers may be the start of a new trend.
Many livestreamers are choosing to leave the industry.
And there is already talk of the next wave of livestreamers being AI-generated, which will bring about its own challenges.
Source: Jing Daily
Live e-commerce is coming to the West.
What can we learn from China’s love affair with social selling? As a marketer, what are you doing to prepare?
How do we move customers along the journey to make a purchase? Check out our next post – Converting Customers: From Awareness to Purchase.
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Hi Jacqueline, Loved your take on China's livestream e-commerce. WeChat and Douyin dominance makes sense, right? Global brands need a deep dive into local vibes.
The shift to employees over influencers in livestreaming got me thinking about authenticity. Wonder if it's a game-changer or just a blip? Also AI-generated is a potential wild card.
Exciting times in social selling as it heads West. Can't wait to see how brands adapt to this.
Hi Jackie,
Thanks for a very insightful blog post! Livestream e-commerce is a completely new area for me. I have heard that one of the reasons behind the success of livestream e-commerce is due to the consumers demanding for higher hospitality while purchasing products (which they could not experience in-store). If consumers are already satisfied with the level of hospitality services they are provided with, companies should consider what they can provide through their livestreams, which cannot be provided through other channels for succeeding their livestream e-commerce.
Hi Jacqueline,
Another terrific read! Thank you. I find your posts incredibly interesting, fun and entertaining and really enjoy your tone of writing. I haven't heard or seen any of the live stream e-commerce, so now I'm curious to go exploring, though wary of being sucked in through their marketing and entertainment tactics!
Having spent a lot of time in South-east Asia and in China, it amazes me how behind we in the Western world actually are when it comes to e-commerce and digital technologies in general. My husband whilst working for a Chinese company relied on WeChat for EVERYTHING, it was his salary channel, payment channel, communications and everything else you need to survive. In some ways it makes…
Hi Jacqueline,
Thanks for the engaging introduction to livestream e-commerce! Your post truly echoes my own journey – initially skeptical, I too found myself irresistibly drawn into the world of livestreams. They're incredibly captivating! I remember vowing not to spend a penny, yet here I am, a frequent shopper, swept up in the excitement. Your insights highlight the potent mix of entertainment and marketing that these streams offer. It's a fascinating and innovative approach to e-marketing, blending virality with integration. And oh, the countless nights I've spent on Douyin! I've had to literally distance myself from my phone to stay focused. What an experience!