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The digital economy has become the wave of the times, and in this digital wave, the field of live broadcast e-commerce has sprung up, which has had a huge impact on traditional offline stores. With the rise of live streaming e-commerce, consumers can watch product displays in real time through live streaming programs and interact with anchors for shopping, which greatly improves the shopping experience. Traditional offline stores are facing the dilemma of reduced foot traffic and declining sales. The rapid development of live-streaming e-commerce has also prompted the traditional retail industry to accelerate its transformation and launch online live-streaming sales one after another.
However, for Dong Mingzhu, chairman and president of Gree Electric Appliances, this does not mean that offline stores will be eliminated. On the contrary, she firmly believes that the combination of online and offline is an inevitable trend in the future, and offline stores carry an important social responsibility. Dong Mingzhu said that the convenience and interactivity of live e-commerce have brought consumers a new shopping experience, but the value of offline stores, as a landscape of the city, cannot be ignored.
With the rapid development of live broadcast e-commerce, many problems have gradually emerged. Dong Mingzhu pointed out that problems such as product quality and false propaganda on the platform are bottlenecks restricting the healthy development of live broadcast e-commerce. When it comes to the lowest price of live streaming, Dong Mingzhu said that it must be unreasonable to sell things online cheaper than offline. "It's nothing more than that the offline store runs to the cloud, and the cost is still quite high, so the company that sells things must cut corners, otherwise it won't be able to support it, and there is rent offline and online."
In Dong Mingzhu's view, whether it is live e-commerce or offline stores, they are important channels to serve consumers. Only by constantly innovating and improving service quality can we be invincible in the fierce market competition.
Looking back at the development of the live broadcast e-commerce industry in mainland China:
——Live e-commerce brings a better experience
Live streaming e-commerce is a new form of e-commerce that uses live streaming as a channel to achieve marketing purposes, and is a product of the two-way integration of live broadcast and e-commerce in the context of the digital era.
Compared with traditional e-commerce, live e-commerce provides in-depth, real-time, and rich media product display, bringing users a richer, direct, and real-time shopping experience, with the advantages of strong interactivity, strong professionalism, and high conversion rate.
-- The scale of live broadcast e-commerce users
Live streaming e-commerce has become a new format in the e-commerce industry, and its development speed and influence are remarkable. Through real-time interaction and communication between anchors and audiences, it can better meet the needs and experiences of consumers, and at the same time, through a decentralized consumption model, more small and medium-sized domestic brands can be seen, discovered, experienced, and worn, helping the popularization of China's original design and the localization of mid-to-high-end supply chains. Major e-commerce platforms have launched relevant preferential policies such as anchor support and merchant settlement, injecting momentum into the vigorous development of live broadcast e-commerce. At the same time, merchants are also actively deploying in the field of live broadcast e-commerce, and increasing brand awareness and sales through live broadcast marketing. In recent years, the number of live broadcast e-commerce users in China has grown rapidly, and according to the China Internet Development Report, as of June 2023, the number of live broadcast e-commerce users in China has reached 526 million.
-- The investment and financing boom is fading
According to IT orange data, as of December 18, 2023, a total of 126 investment and financing events in the live broadcast e-commerce industry have occurred in mainland China. From 2008 to December 2023, the number of investment and financing in the live broadcast e-commerce industry in mainland China showed a trend of first rising and then declining. 2020-2022 is the peak period of investment and financing in the live broadcast e-commerce industry in mainland China, among which, the number and amount of investment in 2020 have reached a peak. In 2020, a total of 28 investment events occurred, with an investment amount of 1.126 billion yuan. In the past two years, the investment and financing boom in the live broadcast e-commerce industry in mainland China has gradually declined. In 2022, the number of investments in the live broadcast e-commerce industry in China will be 15, with an investment amount of 396 million yuan. From 2023 to December 18, there will be 12 investments in the live broadcast e-commerce industry across the country, with an investment amount of 298 million yuan.
According to the analysis of the Prospective Industry Research Institute, in recent years, with the development of the national economy and the improvement of residents' living standards, the people's consumption level has gradually improved, and consumers' preference for live broadcast e-commerce has become stronger and stronger. It is preliminarily estimated that by 2029, the scale of China's live broadcast e-commerce transactions is expected to reach 19 trillion yuan, with an average annual compound growth rate of 30%.
Experts suggest that law enforcement departments, e-commerce platforms, live-streaming operators, consumers, media and other forces should form a coordinated regulatory system, and use digital regulatory means to promote the development of the live-streaming industry.
Prospective Economist APP Information Group
For more research and analysis of this industry, please refer to the "Analysis Report on the Development Prospect Forecast and Investment Strategic Planning of China's Live Broadcast E-commerce Industry" by Qianzhan Industry Research Institute.
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