Entering text into the input field will update the search result below

Livestreaming Set To Unlock Greater E-Commerce Spending In China

LD Investments profile picture
LD Investments


  • China’s livestream e-commerce market is expected to double this year.
  • Market leader Taobao Live has numerous advantages including its own payment solution, and offering a wider range of product categories.
  • JD Live is at relatively early stages; but its advantage in electrical appliances and its aggressive pursuit of lower tier cities where electrical appliance penetration is low suggest bright prospects.

Live stream shopping is booming in China. China’s live streaming e-commerce sector generated RMB 433 billion (US$ 61 billion) in transactions in 2019, according to a report from third party data mining and analysis firm iiMedia Research Group. In 2020 livestream e-commerce revenue is expected to double to RMB 961 billion (US$ 136 billion), according to Chinese research form iiMedia Research helped by increased usage due to the coronavirus pandemic.

Source: iimedia

With China's ecommerce sector generating revenue US$ 867.6 billion in 2019, China's live stream ecommerce market accounted for just about 7% of the country's total ecommerce revenue for the year. There is potential for this figure to increase going forward.

Source: Statista

The appeal of livestream shopping is that it introduces a human element to online shopping which makes it is more social and interactive, and customers can get a better understanding of the product according to a survey conducted by the China Consumers Association. Unsurprisingly, live streaming is increasingly becoming a go-to option for Chinese consumers looking for new products, promotions, and deals, particularly in categories such as beauty and fashion, food, and home products.

China's live stream e-commerce is much more than the 24-hours infomercials business model pioneered by Home Shopping Network and QVC (NYSE:QVCC). China’s livestreaming e-commerce experience has been described as a combination of QVC, Facebook Live (NASDAQ:FB), and an e-commerce platform such as Amazon (NASDAQ:AMZN), all rolled into one. This helps drive consumption, and therefore sales.

The growth momentum is expected to continue thanks to growth drivers such as 5G technology, and China’s growing cross-border e-commerce market. In November last year, China Unicom (NYSE:CHU), China Telecom (NYSE:CHA), and China Mobile (NYSE:CHL) rolled out their 5G service plans.China is on the road to owning the world’s largest 5G network

This article was written by

LD Investments profile picture
Long only, focused on high quality businesses with economic moats and solid business fundamentals. Sector and geography agnostic. Long term investment horizon. None of the articles constitute investment advice.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Please take note, this is only one aspect in weighing the attractiveness or non-attractiveness of the companies mentioned as an investment and should not be used independent of other factors. This article examines one segment of the companies' businesses, and other factors such as valuation are not addressed. This article is not a recommendation to buy or sell any stock mentioned.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (5)

James Hanshaw profile picture
Interesting article. It shows, yet again, how far ahead of the West China is on 5G. The Chinese also like luxury goods from Switzerland so you could, perhaps, send your article to some of those such as Richemont; https://www.richemont.com James
15 Jun. 2020
What is your opinion about Qudian and Secoo mutual partnership? I heard Secoo is the biggest online merchant for luxury product, but I didn't see it mention in the article.
LD Investments profile picture
Hi @Sengx, thank you for your comment. Online purchases of luxury goods make up just about 10% of total luxury sales in China so the market is still quite new and evolving. Unlike Tmall Luxury Pavillion which is a marketplace for luxury brands to launch their own online stores, Secoo is a premium lifestyle platform offering high end brands catered to high end shoppers. The high end lifestyle market is tricky to crack and Secoo is a new player so much of their success would depend on their brand execution. This uncertainty makes it difficult to give a reasonable opinion at the moment.

There's not much information on the Qudian-Secoo partnership so what sort of synergies are to be expected are also not clear. Qudian's luxury platform Wanlimu reportedly sells luxury products at bargain prices. While everybody loves a good deal, creating a brand that focuses on selling luxury branded goods at bargain prices appears to contradict Secoo's brand position of catering to well-heeled, high end shoppers. China's online luxury goods market is still at early stages, and there's insufficient information on the two companies, so it is really too early to tell where the partnership will go at the moment. All the best.
Hey thanks for the article. How do you see BZUN fitting in this growing live e-commerce marketplace in China?
LD Investments profile picture
Hi @And_D , thank you for your comment. Their livestreaming initiatives are at rather early stages so there is scarce information which makes it difficult to make an educated assessment. All the best.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.