China continues to lead the world in all things ecommerce, including innovation. Social commerce livestreaming is just one of many new stories for 2021 and beyond.

Insider Intelligence spoke with Liyia Wu, founder and CEO of ShopShops, about why livestream shopping will take off in the US.

Invest in Emerging Formats like Livestreaming to Stand Out from the Crowd. Consumers are eager to embrace livestreaming ecommerce.

Live shopping experiences with multiple brands and products are already common in China. TikTok is leaning in hard to livestreaming. It has added livestreams to the For You tab so that they appear among other videos in the main feed, which users see as soon as they open the app. And several major retailers, including Walmart, have already partnered with TikTok to host shoppable livestreams in the US.

Social commerce is rising rapidly worldwide. But to what extent can the US market mirror that of China, the world leader in social commerce?

The power of livestreaming drove conversions. Top influencers Austin (Jiaqi) Li and Viya drove a combined RMB 20 billion ($2.90 billion) worth of sales during livestream marathons lasting a dozen hours or so each, with Li’s session alone drawing 250 million viewers. Short-video apps Douyin and Kuaishou also reported increased brand usage and user engagement with livestreams.

A promising retail avenue: For marketers struggling to find new digital buyers in China, livestreaming opens the door to shoppers who crave in-store experiences amid the pandemic.

On today's episode, we discuss why shoppers like livestream shopping, why brands are keen to get involved, why it took off in China, and why it hasn't had as much success in the West—yet. We then talk about when Amazon Prime Day might be this year, Amazon considering opening a chain of discount stores, the top reason for online grocery shopping, and the places people typically begin their search when shopping for a product online. Tune in to the discussion with eMarketer senior researcher Man-Chung Cheung and analyst at Insider Intelligence Daniel Keyes.

NTWRK pushes live shopping in the US: The livestream-centric mobile marketplace is competing with giants like Amazon and Facebook as US companies emulate China and struggle to succeed in the fledgeling livestreaming ecommerce space.

Around the world, Facebook is the most popular social app for livestream purchases. Among internet users who had bought a product via a social media livestream, 57.8% did so on the blue app. Meanwhile, 45.8% have made a livestream purchase on Instagram, and just 15.8% have on TikTok.

The top 15 livestream shopping categories in China

Livestreaming ecommerce—a market-like online shopping experience that feels like an amalgamation of the Home Shopping Network (HSN), game shows, talk shows, and auctions—has taken China by storm. The phenomenon was in part fueled by the pandemic, as brick-and-mortar stores temporarily closed down and consumers sheltered in place. Yet, a year later, livestream shopping is still going strong in the country.

But now, TikTok is leaning in hard on livestreaming. It’s taking the lead from parent company ByteDance’s home country of China, where livestreaming is already a common activity among creators, brands, and ordinary social media users. TikTok has added livestreams to the For You feed, the main page that users see when they open the app.

Live streaming commerce—a form of online shopping that is interactive and takes place in real time—is creating new and innovative ways for brands and retailers to connect with consumers. The format has gained wide popularity in China particularly.

The rest of the world is waking up to the potential of shoppable livestreams, but it’s old news to China’s short-form video players and ecommerce platforms. Short-video leaders Douyin (TikTok’s sister app) and Kuaishou (known outside of China as Kwai) have been expanding their social commerce operations, not just to sell products, but to provide services and other forms of content as well.

As shelter-at-home and quarantine measures keep consumers in China at home, brands ramped up their efforts to meet consumers' high expectations for digital services by offering free online tools and courses, streaming live events and adopting new ecommerce strategies.

Livestreaming ecommerce is just taking off in the US but has exploded in China.”. “It’s a big part of our business in China—they’ve seen a lot of success around it, and we’ve been doing some cool things this year, too,” said Katie Puris, managing director and global head of business marketing at TikTok, pointing to recent livestream commerce events on TikTok like Fashion Week in New York.