TikTok, launched in 2016, soared to over a billion users by 2021 and fueled China’s live stream e-commerce boom. Its meteoric rise owes much to the influence of KOLs and social media influencers.

It’s not surprising that live stream e-commerce is the future of shopping, and it’s taking the world by storm. In China, live stream e-commerce is already a massive industry, worth over $400 billion this year alone. And in the US, it’s expected to reach $35 billion by 2024.

Why is live stream e-commerce so popular?

It’s a more engaging and interactive way to shop. Viewers can watch live demonstrations of products, ask questions in real time, and even get exclusive discounts.

And for brands, livestreams are a great way to reach new customers and boost sales. They can partner with influencers to promote their products, and use it to be more authentic in their brand story and connect with their customers on a deeper level.

If you are a brand or retailer, here’s all you need to know to get on board with live stream ecommerce now. It is the future of shopping, and those who embrace it early will be the biggest winners.

TikTok Live Streaming In China

The live streaming market has thrived in China because it allows people to connect with others in a new and engaging way. It’s a great way to make new friends, learn new things, and be entertained in a virtual space, which anyone can access anytime.

In the past, people would watch TV or go to the movies to see their favourite celebrities and performers. But now, they can watch them live online and interact with them in real time. This creates a more personal and engaging experience for everyone involved.

A Brief History

Back in 2005, live streaming first hit China when users repurposed public video chat room services like YY to host public performances. Today, millions of viewers watch anchors and influencers perform on China’s most popular live-streaming platforms every night, creating an estimated $5 billion industry.

In 2016, live-streaming produced revenues of more than 30 billion yuan ($4.3 billion), and this figure was expected to increase by more than 300% by 2020. By 2022, TikTok’s revenue rose more than 30% than the previous year, topping over $80 billion.

This growth is being driven by a number of factors, including the increasing popularity of live streaming platforms, top-notch content, and the willingness of Chinese consumers.

In 2021, live streaming was a popular activity in China, with over 464 million users, representing about 45% of all Chinese internet users.
Short videos and live broadcasts were also popular, with 930 million and 700 million users, respectively, at the end of 2021. This accounted for 68.2% of the total Chinese audience.
Live streaming e-commerce was particularly popular, with 460 million users in 2021, or 44.9% of all Chinese internet users. This number increased by 75.79 million compared to December 2020, representing an annual growth rate of 19.5%.

Why TikTok Live Stream Became Popular in China?

Nearly half of China's internet users have watched a live stream, and the majority of viewers are under the age of 30. While viewership has traditionally been male, it is becoming more balanced, with an increasing proportion of female viewers.

This shift in viewership is likely due to a number of factors, including the rise of female content creators and the increasing variety of live streaming content available. live streams now cover a wide range of topics, from gaming and beauty to education and entertainment. This has made live streaming more appealing to a wider range of people, including women.

Nearly 70% of its users are under the age of 30 of which 74.7% are male, but viewership is becoming more balanced. Although the majority of live-streaming viewers are male, female anchors make up 73% of the streaming population
Over 83.1% of live stream viewers are under the age of 30, and users under the age of 20 account for as much as 42.7%.
About 60% of people kill time online at night when they are home alone. Reports suggest live streaming traffic peaks during lunch breaks and after work hours.

Other Live Streaming Platforms In China

Apart from TikTok, China has over 30 live streaming platforms, and here is a rundown of some of the most notable:

Youku Tudou: Similar to YouTube, but owned by Alibaba.
WeChat: A multifunctional messaging app that includes live streaming functionality.
YY Live: The earliest and largest live streaming community on PC, but has fallen behind as other tech companies have invested in mobile.
Inke Live: Popular mobile app with broadcaster tools such as a beauty filter and sound equaliser.
Weibo: The Chinese equivalent of Twitter. Has seen a resurgence thanks to live streaming, with more MAUs and 200 million live streams between April and June 2016 alone.
Huajiao Live: App that saw impressive user growth in 2016 and is becoming more central to social networking in China.
Momo: A social dating app where live streaming is becoming an important revenue channel.
6Rooms (6.cn): Possibly the first service to offer live streaming back in 2008.
Meipai: A free app that became very popular in 2015 thanks to a growth hack and a large number of special effects.
Bigo: A Singapore-made app that is big in Southeast Asia. It rewards viewers and streamers with points for participating (including gifting), which can be used to promote their own content.

Credit: China Marketing Insights, The China Guys

Market Difference between China and Europe

China’s social media landscape is tightly controlled by the government, with TikTok being one of the few exceptions. Meanwhile, Europe’s social media landscape is more open, with many different platforms competing for users’ attention.

Here are some of the key differences between the two markets:

Key Market Difference

China is a rapidly developing country with a growing middle class, while Europe is a more developed region with more mature economies. Chinese consumers are more price-sensitive and tend to shop online more than European consumers.

Europe is home to a diverse range of cultures, while China has a more unified culture with a profound influence from its ancient civilization. This difference in culture can impact everything from the way businesses market their products and services to the way they structure their workforce.

Social Media Landscape Difference

The Chinese entertainment industry is dominated by a few major players, while the European entertainment industry is more fragmented. For example, social media platforms like WeChat and Weibo are very popular in China, while Facebook and Twitter are more popular in Europe.

This fragmentation gives TikTok an opportunity to capitalise on the European market by providing a platform for a wide range of creators to reach their audience.

Internet Development And Culture

China and Europe both have well-developed internet infrastructures, but China’s is more advanced with high internet penetration rates and speeds.

Due to the regional variations across Europe, internet penetration is more scattered. It’s no surprise then that while TikTok is available in both the markets, its popularity is greater in China.

Target Audience Groups

China’s audience is typically young, urban, and middle-class. They are also increasingly tech-savvy and connected to the internet with a strong focus on gaming, e-commerce, and education.

Meanwhile, in Europe, people are more diverse, but some common trends include a focus on quality, sustainability, and ethical consumption. They are more inclined towards luxury goods, sustainable fashion, and healthcare.

User Habits

Chinese social media users are more likely to use platforms for a variety of purposes, such as entertainment, shopping, and communication. European users are more likely to use platforms for entertainment and communication.

TikTok needs to take into account the different language, cultural, and regulatory environments of Europe when adapting its Chinese live streaming model.

Here are some specific things that TikTok could do:

Language: Offer TikTok live streaming in more European languages. This would make the platform more accessible to a wider range of users.
Culture: Partner with European creators to create content that is relevant to European audiences. This would help TikTok to better understand and cater to the needs of European users.
Regulations: Work with European regulators to ensure that TikTok live streaming complies with all applicable laws and regulations. This would help to build trust with European users and regulators.

Is the Chinese Model Adaptable to the European Markets?

The Chinese TikTok live streaming model is adaptable to the European market, but there are some important differences that need to be considered.

One key difference is that the European market is more fragmented than the Chinese market. This means that it is important to target a variety of different creators and influencers in order to reach a wider audience.

Another difference is that there is a greater variety of e-commerce platforms in Europe than in China. This means that it is important to choose the right platform for your target audience when planning your live streaming campaigns.

Here are some specific tips for adapting the Chinese TikTok live streaming model to the European market:

Target a variety of different creators and influencers, including both celebrities and micro-influencers.
Choose the right e-commerce platform for your target audience.
Tailor your content to the European market. For example, you may want to focus on different products or services, or use different language and cultural references.
Promote your live streaming campaigns in advance to build excitement and anticipation.

At Comms8, we specialise in helping businesses leverage the power of TikTok live streaming in China. With our expertise, we can assist you in harnessing the influence of live streams to boost your brand's credibility and awareness. Contact us today to learn more about empowering your brand in the dynamic Asian market.

TikTok Live Streaming Boom in China: How It Went From Viral Sensation to E-Commerce Empire