The live commerce industry in China has rapidly evolved into a key component of the country’s digital economy. As the world’s largest e-commerce market, China has been at the forefront of innovation in the digital commerce space. Live commerce, which blends live-streaming with online shopping, has revolutionized the way Chinese consumers discover, engage with, and purchase products.

This report provides a comprehensive overview of the live commerce industry in China, its growth, key players, technological advancements, consumer behavior, and future projections.

Overview of Live Commerce in China

Live commerce, often referred to as live-streaming e-commerce, is a rapidly growing sector that combines real-time video broadcasts with direct product sales. It allows brands, influencers, and merchants to engage with viewers in real time, showcasing products through live demonstrations, reviews, and interactive sessions. This format has become particularly popular in China, where consumers are highly engaged with digital content and are increasingly seeking interactive shopping experiences.

Market Size and Growth

The live commerce market in China has seen explosive growth, especially in recent years. In 2023, the value of the live commerce market in China was estimated at approximately USD 180 billion, representing over 15% of the country’s total e-commerce market. By 2025, this number is expected to exceed USD 300 billion, growing at a compound annual growth rate (CAGR) of 20%.

• In 2023, live commerce accounted for around 20% of China’s total online retail sales, a figure that is expected to grow to 30% by 2025.
• The number of live-streaming e-commerce users in China reached over 600 million in 2023, a massive increase from previous years.

The rapid growth of live commerce in China is being driven by the increasing popularity of live-streaming platforms, the rise of e-commerce, and the growing demand for more immersive and engaging shopping experiences.

Key Drivers of Live Commerce Growth

Several key factors have contributed to the rapid growth of live commerce in China. These include technological advancements, changing consumer behavior, and the increasing influence of social media and influencers.

Technological Advancements

The growth of live commerce in China is closely linked to advancements in digital technology. High-speed internet, mobile device penetration, and the development of live-streaming platforms have enabled brands and influencers to interact with consumers in real-time. The widespread adoption of 5G technology is expected to further accelerate the growth of live commerce by enabling higher-quality video streams and more seamless interactions.

• In 2023, over 90% of live commerce in China was conducted via mobile devices, a number expected to grow as more users access live-streaming content through smartphones and tablets.
• The integration of artificial intelligence (AI) and augmented reality (AR) in live commerce is enhancing the shopping experience, allowing consumers to try on products virtually, get personalized recommendations, and enjoy more interactive live-streaming sessions.

These technological innovations are making it easier for merchants to engage with consumers and offer a more personalized and interactive shopping experience, which in turn drives greater sales and higher conversion rates.

Changing Consumer Behavior

Consumer behavior in China is rapidly evolving, with younger generations—particularly Millennials and Generation Z—driving the demand for live commerce. These consumers value convenience, entertainment, and engagement, which live commerce offers in abundance. Traditional online shopping methods, such as product listings and static images, are being replaced by more dynamic, engaging, and social shopping experiences.

• 65% of Chinese Gen Z consumers made purchases via live-streaming platforms in 2023, highlighting the growing importance of live commerce among younger shoppers.
• Consumers are also increasingly seeking social proof and recommendations from influencers, celebrities, and peers before making purchasing decisions, further fueling the popularity of live commerce.

The ability to see products in action, interact with hosts and influencers, and access exclusive deals has made live commerce highly attractive to Chinese consumers, particularly those looking for a more engaging and personalized shopping experience.

The Rise of Social Media and Influencers

Social media and influencers have become central to the live commerce ecosystem in China. Platforms like Taobao Live, Douyin (the Chinese version of TikTok), Kuaishou, and WeChat have all integrated live-streaming features, allowing influencers and brands to showcase products in real time. Key Opinion Leaders (KOLs) and influencers have played a significant role in shaping consumer behavior, driving traffic to live-streaming sessions, and generating sales.

• In 2023, influencers accounted for over 50% of live commerce sales in China, with top KOLs able to generate millions of dollars in sales during a single live-streaming session.
• Major Chinese e-commerce platforms like Taobao and JD.com have heavily invested in live-streaming technology to attract influencers and enhance their platforms’ shopping capabilities.

The role of influencers in live commerce cannot be overstated. By leveraging their massive follower bases and credibility, influencers can drive significant consumer interest and generate substantial revenue for brands and merchants.

Key Segments of the Live Commerce Market in China

The live commerce industry in China encompasses several key segments, from fashion and beauty to food, home goods, and electronics. Each of these sectors has unique dynamics and challenges, but they all share the common element of leveraging live-streaming to create interactive shopping experiences.

Fashion and Beauty

The fashion and beauty segments are among the most prominent in China’s live commerce market. Fashion influencers and beauty KOLs frequently host live-streaming sessions showcasing the latest trends, beauty products, and fashion collections. Live commerce is particularly effective in these sectors because it allows consumers to see products in action, from makeup tutorials to fashion hauls, which makes the shopping experience more engaging and informative.

Market Trends

In 2023, the fashion and beauty segment accounted for approximately 30% of China’s live commerce market, valued at around USD 54 billion. The popularity of live-streaming in these sectors is driven by the following trends:

• Personalization: Live commerce allows brands to tailor their messages and offers to specific consumer needs, whether it’s through personalized beauty consultations or fashion styling advice.
• Real-time Engagement: Viewers can ask questions, provide feedback, and interact with hosts during live-streaming sessions, which increases consumer trust and encourages purchases.

The fashion and beauty sectors continue to see significant growth in live commerce as more brands embrace the power of real-time engagement and personalized shopping experiences.

Food and Beverage

The food and beverage (F&B) sector has also become an increasingly important part of China’s live commerce ecosystem. Live-streaming platforms are used by restaurants, food brands, and influencers to showcase food preparation, introduce new products, and offer live cooking demonstrations.

Market Dynamics

In 2023, the F&B sector accounted for approximately 15% of China’s live commerce market, with an estimated value of USD 27 billion. Live commerce is particularly effective in promoting food products because it provides consumers with an authentic, behind-the-scenes look at food production, preparation, and taste.

• Brands in the F&B sector leverage live-streaming to engage consumers with live tastings, cooking demonstrations, and product reviews.
• The rise of “foodie” influencers on platforms like Douyin and Taobao Live has contributed to increased sales, particularly for niche food products and local delicacies.

The ability to showcase the sensory appeal of food in a live-streaming format has made it a powerful tool for driving consumer engagement and sales in China’s food and beverage industry.

Home Goods and Electronics

The home goods and electronics sectors have also been major beneficiaries of live commerce. These industries rely on the interactive features of live-streaming to demonstrate the functionality, features, and benefits of their products. Live commerce is especially effective for high-ticket items like home appliances, electronics, and furniture, where consumers seek reassurance about the quality and reliability of products.

Market Insights

The home goods and electronics segment accounted for about 20% of China’s live commerce market in 2023, valued at approximately USD 36 billion. Key trends in this segment include:

• Product Demonstrations: Live-streaming is used to showcase the performance of electronics, such as smart home devices, kitchen appliances, and smartphones, with live demonstrations offering consumers a deeper understanding of how products work.
• Virtual Try-Ons: In the home goods sector, live-streaming allows consumers to visualize how products will look in their homes, from furniture pieces to decorative items, using augmented reality (AR) features.

The demand for home goods and electronics through live commerce continues to rise, particularly in sectors like smart home technology, kitchen appliances, and personal gadgets.

Automotive

The automotive industry is increasingly adopting live commerce to market vehicles, accessories, and related services. By integrating live-streaming into virtual car shows, dealerships, and product showcases, car manufacturers and sellers are able to reach broader audiences and engage with potential customers in a more interactive way.

Market Trends and Demand

In 2023, live commerce in the automotive sector contributed about 10% to China’s overall live commerce sales, valued at USD 18 billion. Key drivers for the growth of live commerce in the automotive industry include:

• Virtual Car Shows: Manufacturers and dealerships use live-streaming to host virtual car shows, offering viewers real-time tours of new models, explaining features, and answering questions.
• Consumer Engagement: Potential buyers can interact with live-stream hosts to ask questions about vehicles, financing options, and services, enhancing customer confidence and driving conversions.

The automotive sector in China is increasingly using live commerce to engage with tech-savvy, younger consumers who are looking for an immersive and informative shopping experience.

Key Players in the Live Commerce Industry

The live commerce industry in China is supported by a wide range of platforms, influencers, and e-commerce companies. These players have helped to shape the development of live commerce, driving its adoption across various industries and consumer segments.

Taobao Live

Taobao Live, the live-streaming arm of Alibaba’s e-commerce platform Taobao, is one of the largest and most influential live commerce platforms in China. In 2023, Taobao Live accounted for over 50% of the country’s total live commerce sales, with a focus on fashion, beauty, and consumer goods.

• Taobao Live hosts thousands of live-streaming sessions daily, featuring top influencers, celebrities, and brand representatives.
• The platform is integrated with Taobao’s shopping interface, allowing viewers to purchase products directly from the live-streaming session.

Taobao Live’s dominance in China’s live commerce ecosystem has made it the go-to platform for many brands and influencers looking to reach a wide audience.

Douyin (TikTok)

Douyin, the Chinese version of TikTok, has become an increasingly important player in the live commerce sector. The platform’s short-form video content and live-streaming features have made it a key tool for influencers and brands in the fashion, beauty, and food sectors.

• Douyin has seen rapid growth in live commerce, with sales generated through the platform’s live-streaming features increasing by more than 100% year over year.
• The platform is particularly popular among younger consumers, who are drawn to its entertaining and interactive content.

Douyin’s integration of e-commerce capabilities into its live-streaming features has created new opportunities for brands to connect with consumers and drive sales directly through the platform.

Kuaishou

Kuaishou is another major live-streaming platform in China, known for its focus on smaller, more localized content compared to Douyin. Kuaishou has built a strong community of influencers, particularly in the lower-tier cities, and has seen substantial growth in live commerce, particularly in sectors like apparel, food, and home goods.

• Kuaishou’s live commerce revenue increased significantly in 2023, with the platform focusing on direct sales and audience engagement.
• The platform’s algorithm promotes product recommendations based on user preferences, making it an effective tool for advertisers and brands.

Kuaishou’s success in live commerce highlights the growing diversity in China’s live-streaming ecosystem, catering to different consumer segments and content styles.

Regulatory Landscape

The rapid growth of live commerce in China has led to increased regulatory scrutiny. The Chinese government has implemented several measures aimed at regulating live commerce platforms, ensuring transparency, and protecting consumer rights.

Regulations and Guidelines

The Chinese government has introduced regulations to ensure that live-streaming platforms operate transparently and fairly. These include rules on product authenticity, influencer conduct, and consumer protection.

• Live-streaming platforms are required to ensure that products promoted through live commerce are genuine, with penalties for misleading advertising or counterfeit goods.
• Influencers and brands must disclose sponsored content, and platforms are required to maintain consumer protection standards, including returns, refunds, and dispute resolution.

The regulatory environment is evolving as the live commerce industry grows, and new guidelines are expected to be introduced to address emerging challenges such as data privacy, intellectual property rights, and cross-border e-commerce.

Future Outlook for Live Commerce in China

The live commerce industry in China is poised for continued expansion, driven by technological innovations, consumer demand for more immersive shopping experiences, and the increasing influence of social media and influencers.

• The integration of artificial intelligence (AI), augmented reality (AR), and virtual reality (VR) will enhance the live-streaming shopping experience, allowing for more personalized and interactive consumer engagements.
• Live commerce will continue to grow across industries, including automotive, home goods, and luxury products, as more brands embrace this innovative way of reaching consumers.

The future of live commerce in China will likely see further convergence with social media, entertainment, and e-commerce, creating a more integrated and dynamic shopping experience for consumers.