Live commerce refers to an emerging retail concept that combines live-streaming with e-commerce. Over the last few years, several brands have experimented with live commerce by enabling instant purchases during live streamed fashion shows. Yet, while still a relatively new and emerging concept for Western audiences, live commerce has already revolutionized Chinese markets. In China, live streaming is a powerful form of entertainment, and the growing popularity of real time cooking, gaming, beauty or fashion platforms gave rise to the so called ‘wang hong economy’. KOLs (key opinion leaders), also known as wang hongs, are internet celebrities equivalent to Western influencers. They build a strong on-line following on their self-branding and personality, to establish authority in their chosen area of interest. In Chinese live commerce, KOLs stream live shopping sessions that offer a more personalized on-line shopping experience, giving shoppers the opportunity to see multiple items tried on and reviewed by a ‘real person’. Audiences can ask real-time questions on any aspects of the product, such as material, fit, feel or specific construction details. KOLs then generate revenue through cuts from sold products and also through virtual gifts from followers that are equivalents to tips.
LIVE COMMERCE
