Live streaming sales revolutionized by Zheng Xiangxiang's influence

TikTok, the popular social media platform, has introduced its in-app marketplace feature, TikTok Shop, aiming to simplify the shopping experience for its users. This move has caused a stir in the e-commerce world, particularly in Southeast Asia where TikTok is disrupting the market.

In China, the live commerce sector is thriving, with groceries taking the lead. Brands are collaborating with influencers and content creators to push their products during live streams, a strategy that has proven effective in improving product awareness and driving sales. Zheng Xiangxiang, a Douyin live streamer, is one such example, reportedly selling over RMB 100 million (USD 13.7 million) worth of products within a single week.

Live commerce, the sale of products during live streams on digital platforms, appeals to audiences due to its interactivity, convenience, and engagement. Items commonly sold through live commerce include clothing, beauty products, groceries, and electronics. Beauty products, in particular, often use demonstrations and tutorials during live streams to drive consumer engagement.

However, platforms like Douyin have taken steps to protect consumers. In November 2023, Douyin cracked down on the practice of quick product showcasing, limiting the time products can be showcased during live streams to prevent deceptive practices.

In Europe, Latin America, and the US, clothing is the most popular product category for live commerce, according to a survey conducted by McKinsey. The growth of live commerce is not limited to these platforms, with Amazon Fresh, Picnic, Knuspr, Getir, Alnatura, Denns, and basic offering increasing opportunities for new brands in online grocery retail. Specialized bio and reform stores provide access for startups focusing on authentic, certified, and sustainable products.

The live commerce market is a fast-growing one, with around 20% of all e-commerce sales predicted to stem from live commerce by 2026. TikTok, Alibaba Group's Taobao Live, Facebook, and Instagram are examples of platforms that have capitalized on this trend. In fact, a study shows that 70% of respondents noted an increase in TikTok usage following the introduction of TikTok Shop.

As of 2022, Facebook was the most popular platform for live commerce, used by 58% of global consumers. Instagram came in second with 46% of consumers, followed by TikTok with 16%. As the market continues to evolve and innovate, it will be interesting to see how these numbers change in the future.

In conclusion, TikTok Shop and the rise of live commerce are transforming the e-commerce landscape. With its interactive and engaging nature, live commerce is expected to become a significant portion of e-commerce sales in the coming years.

Live streaming sales revolutionized by Zheng Xiangxiang's influence