The number of China’s short video app users surpassed one billion for the first time. How can brands capitalize on this medium?
What Happened: On March 2, the China Internet Network Information Center released a report on the country’s internet development, showing that short-video app users surpassed 1 billion for the first time. This means that 94.8 percent of Chinese netizens regularly watch short videos and livestreams on these apps. The number was only 648 million five years ago. The rise comes in tandem with a booming livestream e-commerce industry.
The Jing Take: According to Chinese market research firm iiMedia, the livestream e-commerce industry reached a value of $210 billion (1.43 trillion RMB) in 2022, a 19 percent year-on-year growth. It is expected to reach $310 billion (2.13 trillion) in 2025. Taobao’s livestream channel has attracted over 50 billion viewers since its establishment in 2016. Popular short video apps Douyin and Kuaishou, both reporting over 600 million monthly active users in 2022, have heavily invested in their livestream e-commerce services too.
The format has obviously gained the attention of fashion brands in China. For instance, in 2021, the top three categories ranked by gross merchandise volume on Taobao livestream were women’s apparel, beauty, and jewelry. Luxury brands including Gucci, Louis Vuitton, Dior, Burberry, and Prada have hosted livestream sessions on Douyin, Kuaishou, as well as other popular platforms like Taobao and Xiaohongshu that support the function. Continue to read the full article here