Live-Streaming Turns Into a Lifeline for China's Stores
Chinese shoppers to buy almost everything they need. The coronavirus crisis has
supercharged that trend, turning online retail into a show which has hooked millions
of stay-at-home consumers. Fu chenyuan had to close her clothing shop in the spring.
Having never sold anything online before, the 35-year-old reluctantly took up her
iPhone and started modeling her inventory. Hawking her wares live was uncomfortable
for the camera-shy Ms. Fu at first, but her customers loved it: Real-time sales now
accounts for 70% of her total sales, she said. Live streaming has been a lifesaver for
other store owners looking to reach shoppers still wary of confined spaces. Even global
brands like Gap Inc. and Louis Vuitton have joined in the scramble to engage millions of
homebound Chinese consumers. The world's biggest retail market, with $5.8 trillion in
sales last year, has yet to rebound to pre-crisis levels. But online sales, and
live-stream sales in particular, have been a bright spot. Live-stream technology has
already created a generation of "stream queens" and other video celebrities whose fans
send them money as they perform. Retail is its latest incarnation. The interactive
features allow viewers to chat with hosts, browse product information and make
single-click purchases mid-show. Louis Vuitton tapped movie star Zhong Chuxi to host its
first live stream on social-commerce platform Xiaohongshu in March, while Gap's
live-stream debut on Taobao in April was fronted by Viya, one of China's best-known
social-madia influencers. It is unclear how much live streaming currently contributes to
China's overall e-commerce business. Its explosive growth, however, is undeniable.
Alibaba sold $720 million in goods through live streams on June 1, the opening day of the
annual shopping festival known as 6.18. Profits are lower than before the pandemic
because online shoppers expect discounts, Ms. Fu said. Still, live streaming provided her
with lifeline, and has likely changed her business model for good.