China is currently witnessing a surge in video shopping, leading to the innovation of new technological products like wireless data packages and virtual human streamers. This trend aims to capitalize on one of the few sectors experiencing substantial growth amidst an overall economic slowdown.
During the recent Singles Day shopping festival in November, traditional e-commerce sales saw a decline of 1%, whereas sales through livestreaming online commerce surged by 19%, as per a McKinsey report.
Since the onset of the Covid-19 pandemic in early 2020, Chinese retailers have been quick to leverage in-house video hosts to promote their products. This shift has propelled individuals like online influencer Austin Li to fame and fortune through the video business.
Livestreaming, especially in the realm of livestreamed commerce, has reached unparalleled heights in China, surpassing any other country, according to Mr. Daniel Zipser, a top partner at McKinsey specializing in Asia’s consumer and retail sector.
Companies are now experimenting with digitally created livestreaming hosts, including avatars representing real hosts or entirely virtual entities.
Xiaofeng Wang, a leading analyst at Forrester, highlighted the prominence of electronic livestreaming hosts during this year’s Singles Day, noting their enhanced authenticity in presentations by tech giants like Tencent and JD.
Tencent’s latest offering involves creating a virtual avatar with just a three-minute video and 100 spoken sentences from a user. Additionally, they provide a “Zen Video” system for generating simple promotional videos with virtual human spokespeople.
Some businesses are integrating live streaming with AI technologies like ChatGPT to enhance user engagement.
JD.com featured its Yanxi virtual anchor, powered by AI, in over 4,000 brands’ livestreaming sessions during Singles Day, with one virtual streamer broadcasting continuously for 28 hours.
Baidu, renowned for its search engine and Ernie AI chatbot, introduced its virtual human livestreaming product “Huiboxing” on the “Youxuan” e-commerce platform during Singles Day, boasting 17,000 streams from October 20 to November 11.
Virtual human livestreaming on Baidu’s platform contributed significantly to the electronics giant Suning’s gross merchandise value, amounting to over 3 million yuan ($420,000) during the event.
Authorities are closely monitoring this burgeoning industry, with platforms like ChatGPT and Baidu’s Ernie bot facing regulatory scrutiny before widespread adoption.
The success of livestreaming hinges on robust mobile connectivity, with operators like China Unicom and China Mobile offering tailored data packages for livestreamers to ensure seamless broadcasting.
Future advancements like 5.5G technology could revolutionize livestreaming by significantly enhancing upload and download speeds, potentially paving the way for 3D livestreaming in the near future.
Despite its rapid growth, livestreaming in China faces challenges such as impulse purchases leading to high return rates. Nevertheless, businesses across various sectors are embracing livestreaming as a powerful tool to engage consumers and boost sales.
