Live streaming, once considered an e-commerce model with Chinese characteristics, has now become a hot topic around the world.
With the rise of short platforms such as Tik Tok, more and more overseas consumers have been attracted to the live broadcast room, and the online celebrity anchors from China recommend a variety of products, from beauty and clothing to digital and home.
And China's top live broadcast institutions, not far behind, have targeted overseas markets to seek new growth points. According to ** reports, well-known anchor agencies such as Dongfang Selection and Crazy Brother Yang have begun to carry out overseas live streaming business on Tik Tok, or cooperate with it.
So, is live streaming a new opportunity or a new challenge?
The background and motivation of live streaming to bring goods to sea
The saturation and competition of the Chinese market is one of the main driving forces for live streaming to go overseas.
According to iiMedia Consulting data, in 2023, the scale of China's live streaming market will reach 172 trillion yuan, a year-on-year increase of 1135%。
However, with the continuous expansion of the market, live streaming has also faced problems such as homogenization, vulgarization, and false publicity, resulting in a decline in user trust and conversion rate, and the traffic and income of anchors have also been affected.
At the same time, the cost of live streaming is also rising, including the anchor's share, the platform's commission, the procurement of goods, and the distribution of logistics.
Therefore, many leading live broadcast institutions have begun to seek new growth points and expand overseas markets.
The potential and demand of overseas markets is one of the main opportunities for live streaming to go overseas.
According to statistics, in 2023, the global cross-border e-commerce market will reach 4$8 trillion, up 16 percent year-on-year8%。
Among them, emerging markets such as Southeast Asia and Latin America have high growth potential.
As an emerging e-commerce model, live streaming can effectively solve the problems of information asymmetry, lack of trust, and inconvenient logistics encountered by overseas consumers when purchasing Chinese goods, and improve users' purchase willingness and satisfaction.
At the same time, live streaming can also help China's local brands open up overseas markets and enhance brand influence and popularity.
The mode and path of live streaming to bring goods to sea
Self-built platforms refer to live streaming institutions that develop or invest in overseas live streaming e-commerce platforms and carry out overseas live streaming business through their own channels and resources.
The advantage of this model is that you can fully control the operation and rules of the platform, avoid competition and conflicts with other platforms, and can also better protect your own data and interests.
However, the disadvantage of this model is that it requires a lot of investment in capital and manpower, bears high risks and uncertainties, and also needs to face the challenges of laws, regulations and supervision in overseas markets.
With the help of platforms, it means that live streaming institutions use existing overseas platforms, such as TikTok, Facebook, Instagram, etc., to carry out overseas live streaming business.
The advantage of this model is that you can quickly enter the overseas market with the help of the platform's traffic and user base, and you can also use the platform's technology and services to reduce the difficulty and cost of operation.
However, the disadvantage of this model is that it needs to abide by the rules and shares of the platform, compete with other anchors and merchants, and also face the instability and uncontrollability of the platform.
Going overseas refers to the entry of live streaming institutions into multiple overseas markets at one time to carry out large-scale live streaming business.
The advantage of this path is that it can quickly occupy market share and form a scale effect, and it can also take advantage of a diversified market to diversify risks and increase revenue.
However, the disadvantage of this path is that it requires a lot of resources, complex management, and the differences and challenges of different markets, such as culture, language, consumption habits, laws and regulations, etc.
Gradual entry into the sea refers to the gradual entry of live broadcast institutions into overseas markets to carry out selective live streaming business.
The advantage of this path is that it can be accurately positioned and strategized according to the characteristics and needs of the market, and it can also use the process of trial and error to continuously optimize and adjust to improve efficiency and quality.
However, the disadvantages of this path are that it takes a long time, you may miss out on market opportunities, and you also need to face pressure and interference from competitors.
Challenges and suggestions for live streaming to go overseas
The challenge of localization refers to how live streaming agencies adapt to and meet the needs and preferences of overseas consumers, how to integrate with local culture and society, and how to cooperate and compete with local anchors and merchants.
This problem involves the planning and production of live broadcast content, the selection and training of live broadcast anchors, and the operation and promotion of live broadcast platforms.
In order to solve this problem, live broadcast institutions need to conduct sufficient market research and analysis, understand the characteristics and needs of overseas consumers, select appropriate markets and segments, create live broadcast content and styles that meet local characteristics, cultivate and introduce anchors and teams with local characteristics, establish good relationships and trust with local partners, and abide by local laws, regulations and ethics.
The problem of the chain refers to how the live broadcast organization ensures the quality of the goods, how to improve the logistics and distribution efficiency of the goods, and how to deal with the goods
This problem involves the procurement, warehousing, logistics, customs clearance, distribution, after-sales and other links of goods.
In order to solve this problem, live broadcast institutions need to establish and improve the first-chain system of cross-border e-commerce, select high-quality goods and first-class merchants, use the advantages of overseas warehouses and cross-border logistics, improve the timeliness and traceability of goods, and cooperate with overseas third-party service providers to provide convenient returns and after-sales services to protect the rights and interests and satisfaction of consumers.
The lack of trust refers to how live streaming institutions establish and maintain the trust and loyalty of overseas consumers in live streaming, and how they prevent and respond to risks and problems such as fraud, fakes, and infringement that may arise in the process of live streaming.
This issue involves the integrity, compliance, and safety of live streaming.
In order to solve this problem, live streaming institutions need to strengthen the review and supervision of live broadcast content and products, avoid false publicity, exaggeration, misleading consumers and other behaviors, ensure the authenticity and legitimacy of products, and protect consumers' right to know and choose.
At the same time, livestreaming institutions also need to strengthen the management and training of livestreaming platforms and anchors, regulate livestreaming behavior and speech, comply with laws, regulations and business ethics in overseas markets, prevent infringement of others' intellectual property rights, leakage of user privacy, harm to the public interest, and other behaviors, and maintain the good image and reputation of livestreaming goods.
Conclusion
Live streaming is an e-commerce model full of opportunities and challenges.
The opportunity for live streaming to go overseas comes from the huge potential and demand of overseas markets, as well as the mature experience and advantages of China's live streaming.
The challenges of live streaming to go overseas come from localization problems, chain problems, and lack of trust in overseas markets.
The success of live streaming to go overseas requires live broadcast institutions to choose appropriate models and paths according to different markets and consumers, establish and improve the first-chain system of cross-border e-commerce, strengthen the review and supervision of live broadcast content and products, improve the professionalism and interactivity of live broadcasting, establish and maintain the trust and loyalty of overseas consumers, and provide overseas consumers with a more high-quality, convenient and interesting shopping experience.