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Booming live broadcast market boosts e-commerce

By Wang Junwei | chinadaily.com.cn | Updated: 2020-07-02 16:30
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Li Jiaqi, a Chinese blogger, who endorses beauty products through livestreaming, applies lipstick during a live broadcast on the Taobao platform in Shanghai. [Photo by Niu Jing/For China Daily]

Li Jiaqi, a livestreaming celebrity who has been dubbed "king of lipsticks", settled in Shanghai as a special talent in late June.

That is just a glimpse of the recent talent war among Chinese cities in the booming live broadcast market.

Hangzhou in East China's Zhejiang province and Guangzhou in South China's Guangdong province are now taking the lead in the all-the-rage business, according to a Thursday report from 21st Century Business Herald.

Well-developed in e-commerce, Hangzhou stands out for its first mover advantage, since the city's merchants have a good nose for the market and are already turned to livestreaming, said Cui Lili, director of the Institute of E-commerce at Shanghai University of Finance and Economics, in the report. The city also enjoys a favorable policy environment, Cui added.

Guangzhou, the historic commercial city with a stable and efficient supply chain, introduced its action plan to develop livestreaming e-commerce and even launched a themed shopping festival in June.

"Top-tier influencers can be a scarce resource," said Cui, who explained why cities start their livestreaming dreams by luring online celebrities. A good host, often with unique personal style and professional selling ability, can attract the best resources to deliver a successful live broadcast, according to the report.

On the other hand, top hosts can introduce advanced experience and promote rapid development of local industries. However, it will take a long time to build a systemic and competitive industry, said Li Yougang, the deputy director of an association preparatory group of livestreaming e-commerce in Guangzhou, in the report.

In the future, livestreaming e-commerce will be normalized and standardized, and behind-the-scenes endeavors can be more significant, like a team's supply chain management and promotion, according to Li Yougang.

Besides, top influencers also will consider factors such as living environment and product supply chain, as well as education and life services in their city selection. It is likely that head hosts will gather in first-tier cities while supply chains are located in third-tier cities, the report said.

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