Nothing stays the same when it comes to e-commerce and digital marketing, especially in China. The e-commerce landscape is evolving by the day, with product trends shifting rapidly and consumer preferences constantly adapting.

To succeed in this dynamic environment, brands must stay agile and innovative to capture the attention of not just anyone, but, specifically, their target audience. One strategy that has gained significant traction in recent times is brand livestreaming.

In this post, we delve into the value proposition and strategic trends associated with brand livestreaming, highlighting its role in showcasing products, interacting with customers, and driving conversions under the backdrop of a shifting consumer market.

Consumer behavior continues to shift in China

Amidst rising incomes, consumer purchasing behavior in China has undergone a notable transformation, gravitating towards a more measured rate of growth in recent years.

This shift underscores the growing emphasis on value and quality within the Chinese market. Consumers are progressively discerning, seeking products and brands that not only resonate with their values but also deliver tangible benefits.

2023 Chinese Consumers Insight Report, iResearch

Brand livestreams are key to connecting with potential customers

In today’s digitally-driven society, consumers crave authentic, real-time connections with the brands they love. Livestreaming allows brands to forge those vital connections at scale, breaking down barriers and fostering a sense of community around their offerings.

Whether it’s launching a new product, providing expert insights, or simply giving the audience a behind-the-scenes glimpse into the brand, livestreaming puts you in direct dialogue with your customers.

Brands in China are recognizing this fact. In the first half of 2023, sales from Douyin brand livestreams experienced a remarkable 80% year-over-year growth, prompting numerous brands to increase their investments in this marketing channel over other alternatives.

Data source: H1 2023, Douyin E-commerce Data Report, Chanmama.com

For many brands, this strategic shift aims to lessen reliance on Key Opinion Leaders (KOLs) for social commerce or hiring external livestream hosts. KOLs and top hosts typically demand steep fees, often in the range of 20-30% commission or more. Furthermore, engaging top hosts entails a lengthy process involving outreach, sample provision, product selection, scheduling, and more.

In contrast, brand livestreaming offers greater control, profitability, and scalability, enabling hundreds of shows annually.

This direct approach empowers brands to maintain tighter control while potentially enhancing margins compared to collaborating with KOLs (Douyin creators) in creators’ livestream rooms. Additionally, returns from brand livestreams typically stabilize over time as operational costs become more manageable and predictable in the long run.

The 3 key roles of brand livestreaming

From building awareness for new brands to fostering long-term customer loyalty and sales, brand livestreaming offers an effective and highly versatile solution. Below are three key ways brands can leverage livestreaming to drive success.

1. Rapid onboarding for new accounts/white label merchants

Brand livestreaming is a valuable onramp for new accounts or white label merchants looking to build local brand awareness from scratch or establish their brand presence.

2. Establishing daily sales and long-term stability

Regular, extended brand livestream sessions keep brands top-of-mind while maximizing shopping opportunities on platforms like Douyin E-commerce. This drives daily sales, boosts loyalty, and helps forge long-term customer relationships for stability and sustained sales over time.

3. Enhancing brand image and credibility

When brands host their own livestream show, they have full control over important factors such as product selection, pricing, and personnel hosting, giving them greater control over how their brand is perceived in the market. This includes the flexibility to make real-time adjustments to products, prices, and strategies based on direct user feedback during the livestream.

• New strategic trends in brand livestreaming

As brand livestreaming continues to gain traction, forward-thinking brands are embracing innovative strategies to amplify their impact and maximize the potential of this powerful medium.

Here are two emerging trends redefining the brand livestreaming playbook.

1. Consistent livestreaming cadence + Expansion of livestreaming matrix

Forward-thinking brands are adopting a stable livestreaming cadence while constantly expanding their livestreaming account matrix to reach broader audiences and drive sustained engagement.

Get a boost with the right advertising products

To fully harness the power of brand livestreaming and amplify its impact, leveraging the right ad products is crucial.

Aligning with brand livestreaming objectives, a range of advertising solutions, including Livestream Omni-Advertising and Livestream Enhancer, have proven to significantly enhance overall performance.

Livestream Omni-Advertising

Omni-Advertising helps to control and optimize overall ROI (organic and paid) by allowing advertisers to explore high-quality traffic across the entire Douyin ecosystem. Specifically, this advertising solution maximizes brand exposure and engagement across all platforms, ensuring broad reach and optimal conversion rates for target users joining livestream shows.

Livestream Enhancers

The Livestream Enhancers are 3 key tools to improve livestream performance, which are Autopilot Mode, Payment ROI, and Long-term Conversion (7-day Total ROI). Leveraging the 3 enhancers with brand shopping ads campaigns in a three-pronged approach boosts livestreaming efficiency and maximizes store GMV.