China Latest eCommerce trand:
Short Video Streaming and KOLs
There is a wide range of individuals or companies that help commercial players discover a narrow target audience and communicate with them.
These co-called Key Opinion Leaders (KOL) can be defined as any social media account with a follower audience relevant for particular companies (i.e. individuals with a niche hobby or online celebrities). They are able to leverage to potential local market and are particularly popular among categories such as cosmetics and fashion.
Trustworthy recommendations by famous KOL's are highly valued among Chinese customers. Most KOL campaigns in China are about impulsive buying, as KOL's create short time excitement about a product.
We can recognise two types of KOL's, namely:
Expert Sellers are a group of individuals who are great at creating an impression and driving traffic to a store increase sales
Curators are a group who specialise in branding, content, and story-telling. These are exceptionally well equipped to help build emotional trust with your brand.
PGC ANALYSIS 2018-2019
Driven by rigorous policies , an ambitious international expansion, technology, and all other major factors, the scale of short videos has expanded rapidly at a rate of 107% in 2018. In the first half of 2019, short videos viewers showed a higher preference for PGC (Production General Content) according to iiMedia Research, and both the rates of PGC and UGC (User Production Content) incrised from 37.4% to 43.6%. As a result, the will to pay to view their favorite videos significantly increased from 31.3% to 54.8% within the audiovisual audience.
User's most frequent interactive behavior in short video platform is still "point praise" while the interactive propotion of point praise for sharing and forwarding has hade quite the growth. Subsequently, there has been a gradual and strong connection between the users due to their higher engagement rate. Short video marketing scale is expected to exceed over 20 billion yuan as well the number of short video MCN Instituions in China expected to exceed 5000. MCN Instituions will further improve the efficiency of commercializing and promoting industrial innovations and reforms. Short video MCN showcases new trends such as the VERTICALIZATION, SPECIALIZATION, DIVERSIFICATION of commercial cash flow models and TECHNICALIZATION. With the Development of the 5G, the commercial landing of 5G effectively reduces the threshold of creators as well the short videos.
THE AGE OF DIGITAL CONSUMERS
Globally there are 4.57 billion internet users, encompassing the 59% of the general population with the bulk of these users being on mobile internet devices.
The shift towards mobile internet content is rapidly shifting with $8.961Billion US of mobile transaction globally.
China is the world's leading mobile internet market with 1.319 billon of mobile internet users accounting for 32.17% of the world's total and US $1.55 trillion of online spending.
PARADOX OF THE GLOBAL DIGITAL ECONOMY
- NE'S OPPORTUNITY -
Western Economies althought have more developed online content generation abilities (see YouTube, Instagram, Facebook etc), the lack of a developed mobile internet infrastructure (banking, online payment, logistics etc) has resulted in the USA and Europe's mobile internet economy lagging behind China's rapid rise.
China, with a more integrated and developed mobile internet infrastructure allows players like Ali Baba, Baidu, Tencent and Bytedance to capture the rising domestic consumption opportunities via multiple online channels.
The bulk of China's online activities channel is hugely dependent of KOL marketing which in turn is mainly focused on "home made" User Generated Content which has huge potential to grow.
Herein lies the opportunity to tap into the more matured overseas PGC resources to enhance China online user experience.