E-commerce mkt embraces livestreaming

China's e-commerce market is expected to fully embrace livestreaming, unleashing great growth potential, industry experts said.

Xiao Fei, founder and CEO of QiFei Network Technology, a leading e-commerce livestreaming operator on video-sharing platform Douyin, said: "In the future, every industry will embrace livestreaming. As you can see, hotpot brand Haidilao and coffee chain Luckin are doing livestreaming, so are all kinds of concerts. This is an ecology for the entire industry."

During the recent Singles Day shopping carnival, QiFei achieved a gross merchandise volume (GMV) of 2.2 billion yuan ($309 million), 57 percent higher year-on-year. Offering operating services to 93 Douyin e-commerce stores, its cumulative livestreaming duration was around 30,000 hours, up 43 percent on a yearly basis.

And sales of apparel and underwear ranked No 1 on Douyin mall. Thanks to government subsidies, durable goods witnessed an increase in both traffic and sales. The GMV of smart home, as well as 3C and home appliance sectors, surged by 56 percent and 62 percent, respectively, on a yearly basis on Douyin mall during the carnival.

"We have observed that competition in women's clothing is turning fiercer, with GMV surging 58 percent year-on-year, while that of men's apparel has been mild. The demand for outdoor consumption is constantly being released, with traffic in sportswear, outdoor clothes and footwear rising, along with their GMVs," Xiao said.

Calvin Gao, managing director of ASICS China, said: "China's outdoor consumption has transformed from growth in speed to growth in quality, and demand for professional equipment has been rising. Outdoor sports have become a lifestyle, and more and more consumers are willing to invest in sportswear that have both functionality and aesthetics, turning functional clothes and products suitable for multiple scenarios into new growth points."

"Generation Z and female consumers are more sensitive to the professionalism of brands, environmental protection concept and long-term value, boosting the industry's high-quality, long-term development," he added.

An Guangyong, an expert with the professional committee of credit management of the China Mergers and Acquisitions Association, said: "In the post-COVID era, camping, cycling and city walk have become a new lifestyle. Consumers care more about the functionality and comfort of clothes, and outdoor brands satisfy these demands."

Xiao from QiFei said: "Instead of buying luxury products with famous logos just to show off, consumers tend to purchase something comfortable to wear, pleasing themselves".

Xiao added that artificial intelligence plays an important role in livestreaming.

"AI also helps in recovering orders. As soon as a store receives a return request, an AI robot contacts the consumer via text messaging, asking the reason why the consumer is returning the product, and offering a compensation method," Xiao said.