Social Commerce Trends in China
Think back to your first time joining a social media platform. Remember the rush?
Back then, the number of impressions and reach of your posts was capped to the size of your friend circle—long before you started receiving friend requests from your parents. Each like or comment felt personal, shared among a small group of familiar faces.
Fast forward to today, and the landscape of social media has undergone a dramatic transformation. What was once a network confined to personal connections has evolved into a global stage where anyone has the potential to go viral and reach thousands, if not millions, of people with just one post.
The power of social media to amplify voices and accelerate content dissemination is unparalleled. In China, social media platforms like Douyin allow individuals and brands to capture attention and build communities at an unprecedented pace. This shift has not only redefined how people in China communicate and consume content but has opened the doors for new opportunities in online retail and KOLs in digital marketing.
How social commerce in China is reshaping the e-commerce landscape
The explosive growth of social video-sharing in China and its intersection with online retail has quickly reshaped the e-commerce landscape. Known as “social commerce,” this emerging trend is revolutionizing how brands connect with audiences.
At its core, social commerce integrates e-commerce with the dynamics of social media, creating a novel shopping experience that leverages social networks to capture attention, enhance engagement, foster product recommendations, build trust, and facilitate transactions—all within the familiar confines of a social media app. This streamlined experience not only enhances convenience but also capitalizes on the viral nature of social media, where engaging content can quickly reach a wide audience.
Video-sharing platforms, in particular, play a pivotal role in facilitating social commerce in China. Between 2015 and 2021, short-video apps surpassed news, messaging, shopping, and streaming apps to claim the top spot for time spent on mobile apps in China, according to QuestMobile’s Truth database.
These apps not only drive immense popularity but also introduce innovative methods to showcase products to targeted consumers. Video reviews, tutorials, product comparisons, unboxing videos, live demonstrations, and comedic sketches are among the engaging formats that dovetail with online retail and e-commerce.
However, the true driving force behind social commerce in China lies in its social elements and the influential role of creators and the trust they have with their followers. Their ability to connect with audiences on a personal level adds a layer of trust and credibility to product recommendations and promotional content. As consumers increasingly turn to social media for product discovery and validation, these creators serve as influential guides, shaping purchasing decisions and driving brand engagement.
Having established the growth and importance of social commerce, let’s explore five marketing trends your brand can leverage in the new era of social commerce in China.
Trend 1: Douyin is leading the social commerce wave in China
Douyin, renowned for its viral short-form videos and algorithmic prowess, has become a formidable player in China’s social commerce landscape. With features like interactive videos, shoppable content, and personalized recommendations driven by powerful algorithms, Douyin blurs the lines between entertainment and commerce, making shopping a social experience.
On Douyin, consumer behavior is driven by the allure of authenticity and social validation. Unlike traditional e-commerce platforms, which rely on customers knowing what they want to buy, Douyin allows consumers to discover products through influencers, peer recommendations, and personalized content feeds. Users are drawn to products and brands endorsed by influencers they admire, often making purchase decisions based on peer recommendations and the emotional appeal of viral trends.
Brands can also leverage a variety of formats to guide consumers seamlessly from the discovery stage to the checkout page. For instance, brands will often utilize short videos to pre-screen and target high-intent users, directing them to live shopping shows (known for their high conversion rates). These live shows can then lead viewers to instant deal offers or the brand’s product shelf for immediate purchases.
This creates a dynamic ecosystem where brands can efficiently connect with their target audience at every stage of the shopping journey.
Trend 2: The important role of KOLs in marketing
Key Opinion Leaders (KOLs) play a crucial role in driving social commerce marketing, particularly on platforms like Douyin where influencer-driven content thrives. These individuals wield significant influence, making them instrumental in shaping consumer perceptions and purchasing decisions.
Winning trust
Firstly, KOLs help brands to establish credibility and trust within their target audience. Their endorsement of products or services lends authenticity and reliability, as followers often perceive KOL recommendations as impartial and based on genuine experience. This trust is invaluable in overcoming consumer skepticism and driving conversions in social commerce environments.
Amplying reach
Secondly, KOLs possess the ability to amplify brand visibility and reach. Through their engaging content and large follower base, KOLs can effectively introduce products to a wider audience that may not be reachable through traditional advertising alone. This expanded reach is beneficial for brands seeking to penetrate new markets or demographics.
Creating compelling content
Thirdly, KOLs excel in creating engaging and persuasive content that resonates with their followers. Whether through product reviews, tutorials, or live demonstrations, KOLs have the knack for crafting content that informs and entertains simultaneously. This capability not only captures attention but also encourages active participation and interaction from viewers, further enhancing brand engagement and loyalty.
Going viral
KOLs contribute to the virality and organic growth of brand campaigns. Their ability to spark conversations and generate buzz around products can lead to increased organic reach and user-generated content, further amplifying the brand’s presence on social media channels.
Collecting feedback
Lastly, KOL partnerships allow brands to leverage the unique insights and preferences of influencers’ followers. By collaborating closely with KOLs, brands can gain valuable feedback and data on consumer preferences, trends, and market demands, enabling them to tailor their marketing strategies more effectively.
Trend 3: Live commerce is vital for social commerce success
Live commerce plays a dominant role in social commerce in China. In today’s digitally-driven society, consumers crave authentic, real-time connections with the brands they love. Through livestreaming, live commerce enables brands to establish these crucial connections on a broad scale, dismantling barriers and nurturing a community centered around their products and services.
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 content formats.
This rapid growth underscores the pivotal role of livestreaming in driving social commerce. By blending entertainment with shopping convenience, livestreaming not only captures consumer attention but also encourages immediate interaction and purchase decisions. Brands leverage this dynamic platform to showcase products in real-time, answer audience questions, and build trust through authentic demonstrations and testimonials. The interactive nature of livestream shopping shows also enhances consumer engagement, fostering a sense of community and loyalty among viewers.
Looking ahead, the evolution of livestream shopping shows no signs of slowing down. As brands continue to innovate within this space, integrating features like interactive polls, limited-time offers, and exclusive discounts, livestreaming will continue to play an important role within social commerce strategies.
Trend 4: Brands want to host their own live shopping shows
While brands have traditionally worked with KOLs to host their live events, social commerce is now shifting towards brand-owned livestreaming.
For brands, this strategic shift aims to lessen the financial cost of hiring external hosts, who often demand 20%-30% in commission fees, as well as the lengthy process involved in outreach, sample provision, product selection, event scheduling, and ongoing contract negotiations.
When brands host their own livestream show, they have full control over important decisions like 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 live show.
Additionally, returns from brand livestreams typically stabilize over time as operational costs become more manageable and predictable in the long run.
Trend 5: Maximizing social commerce through paid advertising
Paid advertising plays a pivotal role in bolstering social commerce strategies, serving as a catalyst for increasing visibility, engagement, and ultimately, conversions. By leveraging targeted ads across social media platforms like Douyin, brands can effectively amplify their reach to specific audience segments. This targeted approach ensures that promotional efforts are directed toward users most likely to engage with and purchase their products or services.
Secondly, paid advertising enhances the discoverability of brands within competitive social commerce landscapes. It allows brands to strategically position themselves alongside relevant content and influencers, thereby enhancing brand visibility and credibility. This alignment with trusted influencers and content creators also helps to foster consumer trust and brand affinity, which are crucial factors in driving purchasing decisions in social commerce environments.
Lastly, paid advertising enables brands to capitalize on real-time trends and consumer behaviors. By analyzing data and insights from ad campaigns, brands can refine their strategies to better resonate with their target audience’s preferences and behaviors. This data-driven approach not only optimizes ad performance but also informs broader marketing strategies, ensuring continuous improvement and relevance in a dynamic digital marketplace.
How to deliver shopping ads on Douyin
As the official digital marketing platform of Douyin Group, Ocean Engine provides a powerful platform for advertising on popular apps like Douyin. Using Ocean Engine, brands can quickly deliver shopping ads and marketing campaigns designed to drive e-commerce transactions.
Unlike traditional display ads, Ocean Engine Shopping Ads are strategically placed to capture the attention of users actively engaging with content on Douyin. They appear within the native feed, allowing brands to showcase products in a contextually relevant manner alongside user-generated content and influencer posts. This integration not only enhances the user experience but also increases the likelihood of conversion by presenting products within a trusted and engaging environment.
These ads can support various call-to-action (CTA) options, such as direct links to product pages or promotional offers, making it easier for users to explore and purchase products directly from the ad. This seamless shopping experience streamlines the path to purchase, reducing friction and increasing the likelihood of immediate conversions.
Moreover, Ocean Engine Shopping Ads leverage advanced targeting capabilities to reach specific audience segments based on demographics, interests, and behaviors. This precision in targeting ensures that ads are delivered to users most likely to be interested in promoted products, thereby maximizing the return on investment (ROI) for brands.
How a European brand partnered with Ocean Engine to unlock social commerce sales
From fashion houses showcasing runway collections via livestreaming to beauty brands conducting interactive makeup tutorials, Douyin has proven instrumental in amplifying brand visibility and fostering consumer loyalty for a variety of global brands including vit.O.Best.
With an established global base of 13,000 stores across 120 countries, the European brand partnered with Ocean Engine to expand into the Chinese market while capitalizing on the social commerce trend unfolding in China.
To meet their objectives, vit.O.Best implemented a multi-faceted social commerce strategy through Douyin, focusing on influencer partnerships, livestreaming, and targeted advertising.
By analyzing their product positioning and target audience, vit.O.Best engaged with Douyin creators across diverse categories, including lifestyle, expat living, and nutrition/fitness. This strategic collaboration allowed them to tap into established follower bases and enhance their market presence.
Livestreaming emerged as their primary sales channel as they matched skilled livestreamers with dedicated operational teams to deliver high-quality, engaging shopping experiences. This approach created a dynamic environment where Douyin users could interact with the brand and make purchases instantly.
In addition, the brand invested in targeted advertising to further enhance its visibility. They increased their ad budget to boost creator exposure and accelerate product seeding, ensuring that their promotional content reached a broad audience.
The results of vit.O.Best’s social commerce strategy were impressive. Within a single month, they achieved a 40% year-over-year growth in Gross Merchandise Value (GMV), reflecting a substantial increase in sales. Completed orders also surged by 153.2%, while product exposure grew by 76%, positioning vit.O.Best among the top nutritional supplements on Douyin Global Shopping.
The future of social commerce in China
Looking ahead, the future of social commerce in China looks promising. Advancements in AI-driven personalization and augmented reality (AR) integrations offer new channels for brands to interact with consumers, making shopping on social commerce platforms more immersive and intuitive than ever before.
For further insights on social commerce, you may like to read our introduction to social commerce in China and the role of Chinese KOLs in marketing.
For direct assistance, including advertising solutions and information on how to use KOLs in marketing, please feel free to reach out to us via the Contact Us form on our website.
