Video is the Next Frontier for China E-Commerce
Video-pushed e-commerce has been around since 2016 while e-commerce structures Mogujie and Taobao started out web hosting live streaming classes on their structures.
But only recently has this fashion taken off, with Taobao producing a whopping US$15.1 billion (one hundred billion RMB) in live streaming transactions in 2018.
Now, video systems along with Doujin and Kuaishou are promoting Taobao merchandise, and different social media structures which include WeChat, Weibo, and Little Red Book are getting into the combination by way of checking out e-commerce features as properly.
We discuss what’s occurring and what brands should preserve in mind going forward.
China’s E-Commerce Market is Maturing, and Brands Need to Shift Their Focus
In the world of e-trade, there are 3 forms of clients to the goal:
customers who recognize what they’re seeking out
customers who don’t realize what they’re searching out however are surfing online
customers who don’t have plans to buy anything at all
E-commerce systems have figured out how to serve the primary two businesses of customers. They possess huge amounts of patron to seek & purchasing facts, and types can leverage a combination of AI-powered advice technology and advertising equipment to attain their goal clients.
But now the boom is slowing, the platforms in China have become crowded, and bidding prices for seeking keywords and commercials are getting increasingly more high priced as the range of brands multiply. There are already 20,000 global manufacturers on Tmall Global on my own, and the customer acquisition prices are rumored to be in the 200-300 RMB variety.
The next level of e-commerce will attention at the 0.33 institution of clients – people who aren’t energetic at the huge structures and don’t have any immediately plans to make a buy. To goal this organization, brands must work more and more with 0.33-party social systems and create awesome content material to seize their attention. This is where the video is available in.
Not best is video content material alluring, but it additionally affords a channel for customers to look at how a product looks and feels in real lifestyles.
This shortens the client adventure, and customers are more likely to make impulse buys. According to Taobao Live, the conversion price for live streaming can reach as high as 32 percentage, an astronomical discern in nowadays’s aggressive e-commerce environment.
Short Video vs Livestreaming for China E-Commerce
Should manufacturers use brief movies or live streaming classes to market and sell their merchandise?
The brief answer is, it relies upon.
There are some key differences among short motion pictures (Doujin, Kuaishou) and live streaming (Mogujie, Taobao, Shopshops) video periods.
Short movies are 10-20 2d movies. They are static pieces of content material that can be speedy digested, and the person can fast decide whether or not or not to dig deeper or flow onto the brand new video. For instance, the Doujin interface requires the consumer to slip the display up and right down to get entry to distinctive motion pictures recommended through the platform.
Because of their quick nature, those films need to speedy seize the eye of the viewer. Common themes will involve humans dancing, running out, or maybe walking on the street, and many others. Some even level movies in which the fashions on foot in public behave as though they’re being determined by using an avenue photographer for the first time.
In the Doujin photo underneath, KOL Zhang Dayi prances along an avenue in Japan together with her buddies whilst sporting a polka-dotted yellow get dressed, which can be bought thru a Taobao hyperlink.