Core Summary:In 2016, the live broadcast launched a wave of industry development, and the industry has entered a stage of steady growth after five years of rapid development. According to iResearch's calculations,In 2023, the scale of China's live broadcast e-commerce market will reach 49 trillion yuan, a year-on-year growth rate of 352%Although the growth rate of the industry has declined to a certain extent compared with the early stage of industry development, from the perspective of market performance in 2023, the industry is still releasing growth signals.
Based on the present, the supply and demand sides of live broadcast e-commerce have undergone some changes along with the evolution of the industry. From the supply side, brands have begun to deploy live broadcast e-commerce business on multiple platforms, and the trend of store broadcast is prominentIn 2023, the scale of the store broadcast market will account for more than half of the total。From the demand side, consumers will consider multiple factors when forming purchase decisions, and it is more difficult for brands to accurately capture consumer needs. And consumers begin to be interested in product knowledge introduction during the product sales process. As one of the important "connectors" on both the supply and demand sides, core live streaming e-commerce service providers are accelerating digital transformation to adapt to changes in supply and demandThe specific performance is as follows: [1] accelerating the digital and intelligent upgrading of live broadcast e-commerce business processes and improving the service efficiency of both supply and demand; [2] Deploy digital human anchors to supplement the brand's store broadcast role; [3] Pay attention to the construction of digital flexible ** chain to assist brand owners to accurately focus on consumer needs; [4] Introduce new technologies to increase the contact points between commodity information and users, and realize the intelligent production of commodity selling points with the help of large-scale model tools.
At present, core live streaming e-commerce service providers with certain technical capabilities have stepped into the ranks of digital transformation; In the future, in the context of the ever-changing demand on both sides of the industry's supply and demand, service providers will accelerate the construction of digital platforms and continuously expand service boundaries to upgrade brand service capabilities. In order to comply with the compliance trend of the industry, service providers will use digital technology to improve the efficiency of compliance governance of live broadcast e-commerce. Finally, with the support of the gradual maturity of generative AI technology, digital human anchors are expected to enter the stage of refined development to further empower the industry to reduce costs and increase efficiency. 
Policy supervisionThe policy consolidates the relevant responsibilities of the participants and guides the standardized development of the industry
Since 2020, the relevant departments have clearly regulated the behaviors and obligations of participants in the live streaming e-commerce industry, including merchants, live streaming e-commerce platforms, anchors, and live streaming e-commerce service providers. In 2023, in response to the new risks arising from the development of the live streaming e-commerce industry, such as the "lowest price agreement" and "digital human anchor", the relevant authorities will timely supplement the compliance guidelines to further protect the rights and interests of downstream consumers.
Economic environment
Residents are more cautious in consumption and tend to choose online channels that have both the best and the best experience advantages
In 2023, the per capita consumption expenditure of Chinese residents will account for 68 percent of per capita disposable income3%, which has not fully recovered to the pre-epidemic level, and residents are more cautious in consumption. From the perspective of the proportion of China's online retail sales of physical goods to the total retail sales of consumer goods, it is basically in a trend of resilient growth from 2019 to 2023, and online retail has further consolidated its position in the consumer market by relying on its advantages in terms of ** and consumer experience. On the whole, in the environment of more cautious consumption, residents' shopping habits have gradually shifted to online channels, which continues to inject new increments into the development of the live broadcast e-commerce industry. 
User scale.
The strong penetration of short** users cultivates a large number of consumers for the live broadcast e-commerce industry
In June 2023, the number of short** users will reach 10300 million people, accounting for 95 percent of the size of Internet users1%, the penetration rate of short** users is extremely high. Since the short ** platform usually has a "live broadcast" content field, large-scale short ** users can be converted into live broadcast e-commerce users. In June 2023, the scale of live broadcast e-commerce users will reach 5300 million people, accounting for 59 percent of the scale of online shopping users5%, live e-commerce has become one of the important ways for online shopping users to buy goods. In the future, with the continuous growth of the scale of live broadcast e-commerce users, the traffic pool of the live broadcast e-commerce industry will be further expanded. 
Technical support
The whole process of live broadcast e-commerce tends to be digital and intelligent, leading the efficient operation of the industry
With the acceleration of the digital transformation of the industry, all aspects of the whole process of live streaming e-commerce have begun to integrate digital technology to solve the problems of high difficulty in business process management and low collaboration efficiency in each link. Taking intelligent product selection as an example, live streaming e-commerce service providers with digital capabilities can combine their own precipitated sales data and in-depth analysis of external third-party data to complete product screening, which can effectively improve the efficiency of product selection and the probability of generating explosive products. Live streaming e-commerce service providers are taking the implementation as the guide, closely following the whole process of live streaming e-commerce, and constantly embedding new technologies to promote the digital and intelligent transformation and upgrading of the industry.
Capital support
Capital institutions are gradually favoring service providers, the industrial investment of core service providers is booming, and the co-construction of industry ecology is accelerating
Since 2020, the supervision of the live broadcast e-commerce industry has become stricter, and industry chain participants need to use professional operation service providers to promote the standardization of business processes, and live broadcast e-commerce service providers are favored by capital institutions. In 2023, a total of 11 financing events will occur in China's live broadcast e-commerce field, all of which are financed by live broadcast e-commerce service providers. In recent years, leading live streaming e-commerce service providers have taken the lead in empowering the growth of upstream enterprises in the industrial chain in the form of industrial investment, that is, in addition to capital support, they also provide value-added services such as marketing channels, consumer trend insights, and R&D and production suggestions for upstream enterprises. On the whole, the main body that actively participates in the ecological construction of the live broadcast e-commerce industry chain in the form of capital tends to be diversified, and the industry ecology is showing a trend of accelerating co-construction. 
Map of China's live e-commerce industry chain
The size of China's live streaming e-commerce market
The market size will reach 49 trillion yuan, the industry is still releasing growth signals
According to iResearch's estimates, the size of China's live broadcast e-commerce market will reach 49 trillion yuan, a year-on-year growth rate of 352%, compared with the early stage of industry development, the growth rate of the industry has declined to a certain extent, but it is still releasing growth signals. iResearch expects the compound annual growth rate (CAGR) of China's live streaming e-commerce market to be 180%, the industry will show a steady growth trend in the future and enter the stage of refined development.
The opening sentence is clear
This chapter will take the change of the supply and demand side of live broadcast e-commerce to drive the transformation of "connectors" as the general idea, that is, through the analysis of changes between brands and consumers, the new actions of core live broadcast e-commerce service providers will be introduced. According to research, the new action characteristics of core live broadcast e-commerce service providers tend to be digital as a whole. Supply sideChange – BrandsThe multi-platform layout of live broadcast e-commerce by brand owners has driven the growth of demand for omni-channel integration and monitoring.
With the rise of emerging e-commerce platforms, brands are actively deploying live broadcast e-commerce business on multiple platforms based on the omni-channel marketing strategy to capture consumers in various channels, but brands will face pain points such as increased operating costs, difficulty in data aggregation and difficulty in management and control in the process of multi-platform operation. Based on the above pain points, brands urgently need to use digital means to achieve omni-channel integration and monitoring, and further improve the operational efficiency of their live broadcast e-commerce business on various platforms.
Supply-side changes – brand ownersThe trend of store broadcasting is significant, and the market size will account for more than half of the market in 2023
If the top influencer continues to reduce product sales**, it will lead to the compression of the profit margin of the brand's products and the brand needs to pay higher commissions and pit fees for the top influencer. Therefore, under multiple factors such as the repeated turmoil of the top influencers, the successive release of traffic mechanisms by platforms to encourage store broadcasting, and the emergence of brand owners' demand for cost reduction, the trend of brand store broadcasting is gradually significant, and the market size of brand store broadcasting will account for 51 in 20238%。However, in the process of store broadcasting, brands often lack live broadcast experience and other problems, resulting in the live broadcast effect is not as expected, or need to rely on external agencies to continuously optimize the store broadcast operation strategy.
Demand-side changes – consumers
Consumers consider multiple factors when making purchase decisions, making it difficult for brands to accurately capture the diverse needs of consumers
From the perspective of the first-level dimension, consumers will make decisions based on multiple dimensions such as "product quality, function, brand, emotional connection and **" when purchasing goods, and there will be differences in the priority of the first-level dimensions that consumers consider for different categories. For example, in the "brand" dimension, consumers pay more attention to brand awareness when buying non-food products, and pay more attention to brand reliability when buying food. On the whole, consumers will consider multiple factors when making purchase decisions, and there are diversified needs for the products they buy, so if it is difficult for brands to accurately capture consumer needs, it will lead to poor sales conversion results of live streaming.
Demand-side changes – consumers
Consumers have become accustomed to the decision-making method of content planting and are interested in the introduction of product knowledge in the sales process
From 2021 to 2023, the number of people who choose to live e-commerce on Douyin and Kuaishou** and their purchase conversion rate have shown a steady growth trend, and the number of live e-commerce on the two major content platforms will reach 5,635 in 2023300 million, with a purchase conversion rate of 48%, "content planting" has become one of the important ways for consumers to form purchase decisions. With the fading of the boom of "selling" live broadcast e-commerce scenarios, consumers have begun to pay attention to product knowledge introduction. According to iResearch, 781% of consumers are interested in product knowledge introduction during the product sales process. Therefore, the live broadcast room needs to introduce the specific details of the product, the applicable population and the use scenario in detail, and produce marketing copy with a high degree of relevance to the product tonality to optimize the product introduction form, further improve the experience of consumers in the live broadcast room and improve the conversion rate of the live broadcast room.
Reform of core live broadcast e-commerce service providers.
Accelerate the digital and intelligent upgrade of live broadcast e-commerce business processes, and improve the service efficiency of both supply and demand
At present, live streaming e-commerce service providers have begun to gradually optimize the live streaming e-commerce link with the help of digital technology, and most of them realize business data analysis through the external procurement BI system, but the system is only used as an internal business efficiency improvement and has few application functions, and the empowerment effect on both the supply and demand sides is limited. The digital platform can not only realize the data analysis and function of the BI system, but also realize the first-class, digital and intelligent business process, and some service providers have embedded SaaS tools that empower brand store broadcasting in the digital platform to comply with the trend of brand store broadcasting. On the whole, core live broadcast e-commerce service providers are continuously improving the degree of digital intelligence of their business links, using digital platforms to improve the sales efficiency of brands based on DABO, the operational efficiency based on store broadcasts, and the demand delivery of consumers in the live broadcast room in a more timely manner, effectively improving the service efficiency on both the supply and demand sides.
Reform of core live broadcast e-commerce service providers 2
Taking advantage of generative AI technology, we actively deploy digital human anchors to supplement the role of brand store broadcasters
With the help of AIGC, digital humans can interact with users, so digital human anchors with low-cost characteristics are gradually favored by brands that carry out store broadcasting. From the perspective of the use of digital human by brand owners, brands and head brands that are mainly engaged in non-standard products rarely use digital human anchors, the reason is that the above brands have higher costs in building and training digital human anchors, and their input and output may not be as expected. The core live broadcast e-commerce service providers mostly use external procurement of digital human anchors or cooperate with digital human technology providers to lay out the digital human anchor business, but the former digital human anchor is prone to the phenomenon of separation of technology and business, while the latter's digital human anchor can fit the live broadcast e-commerce operator** to achieve refined iteration to efficiently empower brand store broadcasting.
Reform of core live broadcast e-commerce service providers three
Pay attention to the construction of digital flexible ** chain to assist brand owners to accurately focus on consumer needs.
Live e-commerce took the lead in improving the efficiency of the first chain by shortening the sales link, but with the continuous release of consumers' diversified needs, the one-sided push chain can no longer fully meet the shopping needs of consumers. In this context, how to improve the efficiency of the first chain and meet the diversified needs of consumers has become the key element for practitioners to build competitiveness. The core live broadcast e-commerce service provider uses its own technical capabilities to build a digital flexible ** chain, assisting brand owners to improve product iteration efficiency and accurately focus on consumer needs.
Reform of core live broadcast e-commerce service providers
Introduce new technologies to increase the contact points between product information and users, and realize the intelligent production of commodity selling points with the help of large models
Core live streaming e-commerce service providers have introduced new technologies such as VR panoramic live streaming, 4K 8K HD live streaming, and 5G real-time cloud rendering to increase the contact points between product information and users, and promote consumers to understand products in an all-round way to improve shopping conversion rates. In addition, AIGC technology with automation and other characteristics can intelligently generate product selling point copywriting in multiple dimensions such as product characteristics and fan portraits in the live broadcast room, and the content operators of service providers can iteratively optimize the copywriting generated by the large model, which will significantly improve the efficiency and quality of content creation of service providers.
Industry development trend one
Core service providers will accelerate the construction of digital platforms and continuously expand service boundaries to upgrade brand service capabilities
In recent years, most core live broadcast e-commerce service providers have built digital platforms to improve business process collaboration and operational efficiency with the continuous precipitation of business data, and some business processes have been upgraded digitally and intelligently with the help of digital tools and AI tools, such as the realization of functions such as intelligent product selection and intelligent pallet building. In the context of brand owners reducing costs and increasing efficiency and the increasingly prominent trend of store broadcasting, service providers will continue to expand the service boundaries of digital platforms in the future, and further extend to empower brand owners in their daily operations and store broadcasting. While developing new businesses for themselves, service providers continue to upgrade their brand service capabilities to strengthen their cooperation with brand owners.
Industry development trend two
In line with the compliance trend, core service providers will use digital technology to improve the efficiency of compliance governance of live streaming e-commerce
As one of the important connectors between brands and consumers, core live-streaming e-commerce service providers need to strengthen compliance governance from multiple dimensions to protect the relevant rights and interests of brands, consumers and themselves. In the future, core live-streaming e-commerce service providers will realize functions such as all-round investigation of product selection risks and multi-link intelligent review of live-streaming content based on the construction of digital platforms and other methods, so as to further improve the efficiency of live-streaming e-commerce compliance governance. In the future, as core livestreaming e-commerce service providers accelerate their digital transformation, they are expected to use digital technology to penetrate more compliance scenarios.
Industry development trend three.
Digital human anchors will enter the stage of refined development, and commercial value is expected to be released
Relying on technical support such as speech synthesis, natural language processing, and large language models, digital human anchors are constantly entering the live broadcast room, but at present, only a small number of core live broadcast e-commerce service providers can provide relatively mature AI digital human products for brand owners. In the future, with the gradual maturity of digital human technology, live broadcast e-commerce operators** and digital human technology will continue to be integrated, and digital human anchors will continue to develop in the direction of refinement in terms of compliance, image, language and action, so as to maximize the value of complementing the role of brand store broadcasters.