（1） Market size: Since Taobao proposed the concept of e-commerce live streaming in 2016, the live streaming e-commerce track has attracted great attention from practitioners and merchants. From 2017 to 2022, the live broadcast e-commerce market will grow at a CAGR of 182%. As of 2022, the live broadcast e-commerce market will be approximately 3.4 trillion, an increase of approximately 34% compared to 2021. It is estimated that China's live broadcast e-commerce market will reach 2.84 trillion in 2022, with a year-on-year growth rate of 42%.

（2） Growth trend: The market penetration rate of live streaming e-commerce is increasing year by year, accounting for more than 1/4 of online retail GMV. The penetration rate of live streaming e-commerce will reach 25.3% in 2022, and has a continued growth trend. In addition, the overall scale of live streaming e-commerce users still has considerable room for growth. In the first half of 2023, the penetration rate of live broadcast e-commerce is only 48.8%, and users using live broadcast e-commerce account for 68.8% of online live broadcast users. The overall user penetration rate has great room for growth.

（3） User scale: As of 2022, the number of live broadcast e-commerce users will reach 470 million, an increase of 9.3% from 2021. The penetration rate of live streaming e-commerce users among online shopping users will increase from 36.1% in 2018 to 55.8% in 2022, and the penetration rate among total Internet users will increase from 26.5% in 2018 to 44.6% in 2022.

（4） Slowing growth: Although the live broadcast e-commerce market size and user scale continue to grow, the growth rate has slowed down. From 2018 to 2021, the annual market size growth rate has remained above 100%, and the industry has grown rapidly. However, in the first half of 2023, the scale of live streaming e-commerce transactions increased by 30.44% year-on-year. The growth rate was lower than the 83.77% and 48.21% in 2021 and 2022, but it still maintained a rapid growth rate.

（5） Future prediction: The live broadcast e-commerce market size is expected to reach 350 million/490 million yuan in 2022-2023, with a growth rate of 53.7%/40.9%, and the penetration rate into the online shopping market is expected to reach 20.1%/24.3% respectively. This means that live streaming e-commerce still has a lot of room for growth in the next few years.

（6） Summary: The live broadcast e-commerce market is growing rapidly, with a CAGR of 182% from 2017 to 2022. The penetration rate of live streaming e-commerce is increasing year by year, accounting for more than 1/4 of online retail GMV, and has a continued growth trend. The number of users is also constantly expanding, reaching 470 million as of 2022. Although the growth rate has slowed down, live streaming e-commerce still has large room for growth. It is expected that the live broadcast e-commerce market will continue to grow from 2022 to 2023, and the penetration rate is expected to reach 24.3%.

（1） Platform competition pattern: The live broadcast e-commerce market is mainly monopolized by the three major platforms, Taobao, Douyin and Kuaishou. The three major live broadcast e-commerce giants occupy 99.7% of China’s live broadcast e-commerce industry. Among them, Douyin has the largest market share, reaching 38.9%; followed by Taobao, with a market share of 31.1%.

（2） Industry leaders are concentrated: The live broadcast e-commerce industry presents a "three-legged" pattern of Douyin, Kuaishou, and Taobao. Taobao, Douyin, and Kuaishou have exerted their efforts at different times, gradually forming a leading position in the industry.

（3） Decentralization trend: The trend of live streaming e-commerce has shown a decentralization trend, focusing on supporting mid-level anchors and cultivating new anchors. Taobao, Douyin, Kuaishou and other platforms promote the ecological construction of live broadcast e-commerce through various policies and support.

（4） Complete industrial chain: The live broadcast e-commerce industry chain mainly consists of brand merchants, MCN organizations, KOLs, and e-commerce platforms. Among them, MCN organizations, celebrities, anchors, and KOLs are the demand takers and are located in the midstream core of the industry chain. The structure of the live streaming e-commerce industry chain is increasingly improving.

（5） User perspective: The overall scale of live streaming e-commerce users still has a lot of room for growth. As of 2021.12, there are approximately 460 million live broadcast e-commerce users in my country, accounting for 66% of the overall online live broadcast users and approximately 45% of Internet users.

（6） Trend of de-heading: Live streaming e-commerce mainly goes through three stages of development: initial stage, rapid development period and standardized development period. Currently, various platforms are increasing their support for store broadcasters and mid-level anchors to achieve the stable development of live broadcast e-commerce.

（7） Policy supervision: Policy supervision of the live broadcast e-commerce industry has been gradually implemented, and the live broadcast e-commerce industry chain has been rectified. Relevant policies such as "Live Broadcasting E-Commerce Platform Management and Service Specifications" and other industry standards

（8） In summary, the live broadcast e-commerce industry pattern shows the characteristics of centralized leadership, decentralization trend, complete industrial chain, large user scale, and policy supervision. In the future, live streaming e-commerce will continue to develop steadily, mid-level anchors will receive more resources, and industry competition will become more intense.

（1） Rejuvenation: The user groups of live broadcast e-commerce are mainly young consumers, such as those born in the 90s and 00s. According to statistics, among the main consumer groups in China in 2020, the post-00s generation accounted for 13%, the post-90s generation accounted for 17%, the post-80s generation accounted for 16%, and other age groups accounted for 54%. The proportion of young consumers in the overall consumption market is increasing year by year, becoming the absolute main force in consumption.

（2） Personalized needs: Young consumers are characterized by personalization, fragmentation, and diversity. Live e-commerce companies are better able to understand the needs of these consumers through community, sharing, richness, vividness, and other characteristics.

（3） Focus on the sinking market: Live streaming e-commerce users focus on the sinking market, and the shopping categories are mostly clothing, daily necessities, food and beauty. Users in second-tier cities and below have a higher preference for live shopping than the national average and have become the core audience group of live streaming e-commerce.

（4） Content resonance: Young consumers pay more attention to entertainment and interactive content, tend to use various social channels to browse content of interest, and will pay for products that resonate with their personal preferences or match their personal values.

（5） Price sensitivity: Among live broadcast e-commerce users, price-sensitive consumers will deliberately look for live broadcasts with greater discounts to watch, and are concerned about product prices.

（6） Brand orientation: Some consumers focus on the live broadcast of a certain brand/several brands of products, regardless of which anchor/platform it is.

（7） Platform following: Some consumers tend to watch live broadcasts of various products on specific platforms.

（8） KOL/Master Followers: Some consumers have specific concerns about a few anchors and basically only watch their live broadcasts.

（9） Strong consumption power: As the scale of my country's Internet users further expands, consumers have a deeper understanding of the interactive, social, and entertainment characteristics of live broadcasts. The proportion of live broadcast e-commerce users in the overall Internet population has increased significantly, and more and more people recognize that in The consumption method of shopping in the live broadcast room.

（1） The interactive, social, and entertaining features of live streaming e-commerce have attracted a large number of users’ attention and participation. As the scale of my country's Internet users further expands, consumers have a deeper understanding of the interactive, social, and entertainment characteristics of live broadcasts, and the user group's acceptance of online live broadcasts and live broadcast e-commerce is gradually increasing.

（2） Preferential prices and trust: Live streaming provides better prices, more intuitive introductions, and a higher degree of trust, making users more willing to shop in the live streaming room. The average daily time spent watching live broadcasts by users continues to increase, and the proportion of live broadcast e-commerce users in the overall Internet population has increased significantly.

（3） Stratification and socialization: The influence of stratification and socialization content is particularly prominent among young people. The sense of circle identification and the resonance of social content can better trigger the consumption and purchasing behavior of young people. For example, users will actively communicate and interact with brands by joining brand fan groups, commenting, leaving messages on public accounts, etc., and pay for products that resonate with their personal preferences or fit with their personal values.

（4） Cooperation between brands and live broadcast rooms: Live broadcast teams generally have in-depth communication and cooperation mechanisms with brands, and can convey these needs to brands in a timely and accurate manner, thereby producing products that are more in line with consumers' individual needs and expanding consumption. need. For example, major live broadcast rooms have launched reverse customization (C2M) products based on consumer needs, which have been widely welcomed by consumers. This also helps form users’ consumption habits.

（1） More intuitive product display: Live e-commerce makes product display more intuitive through real-time interaction between anchors and users, and users can understand the actual effect of the product more clearly. The satisfaction rate of live broadcast e-commerce is as high as 73%, which is much higher than the 70% of traditional e-commerce.

（2） Real-time interaction and immersive atmosphere: Live e-commerce makes users more happy during the shopping process through real-time interaction and immersive atmosphere, thereby increasing purchase intention. The satisfaction rate of live streaming e-commerce is higher than that of traditional e-commerce.

（3） Rich data supports decision-making: Live e-commerce provides users with rich data support through the anchor team’s trial experience and explanation of the products, which is helpful for users to make purchasing decisions. Live e-commerce can increase consumers’ sense of presence, thereby increasing the basis for decision-making.

（4） Establish a trust mechanism: Live broadcast e-commerce has established a new trust mechanism through the cooperative relationship between the anchor team, product or service producers, and fans, reducing the trust cost in the transaction process. Live e-commerce is conducive to establishing a trust mechanism and increasing transaction credibility.

（5） Socialization and sharing: Live broadcast e-commerce promotes the formation of a community among brands, users, anchors and fans with common experiences and joint discovery of the beauty of life. Through the community, various experiences are shared, promoting "discovery e-commerce" to become mainstream . Live streaming e-commerce is not just about data and algorithms, but it needs to promote the formation of a community between brands and users, anchors and fans, anchors and brands with a common experience and a common discovery of the beauty of life.

（6） Higher return rate: Live streaming e-commerce is characterized by impulse shopping, resulting in a higher return rate. The return rate of live streaming e-commerce (30%-40%) is much higher than that of shelf e-commerce (10%-20%).

（7） To sum up, compared with traditional e-commerce, the influence of live streaming e-commerce on users’ shopping decision-making process is mainly reflected in more intuitive product display, real-time interaction and immersive atmosphere, rich data to support decision-making, establishment of trust mechanism, and community ization and sharing, as well as higher return rates.

（1） Clothing, shoes, hats, and bags: These categories are consumed more frequently because the live broadcast room displays a variety of styles and outfit demonstrations, allowing consumers to intuitively understand the quality, style, and matching effects of the products.

（2） Beauty, skin care, and personal care: These categories also have a higher frequency of consumption, mainly because the live broadcast room can provide real-time skin care tutorials and product usage experiences, so consumers can better understand the effects of the products.

（3） Food, beverages, and fresh fruits: These categories are consumed more frequently. On the one hand, the live broadcast room can display the taste and production process of the food, and on the other hand, consumers can understand the freshness and delivery status of the products in real time.

（4） Household daily necessities and household appliances: These categories have a high consumption frequency, mainly because the live broadcast room can display the actual usage scenarios of the products and help consumers better understand the functions and effects of the products.

（5） Maternal and infant products: This category has a high consumption frequency, mainly because the live broadcast room can provide professional parenting knowledge and product recommendations to meet parents’ needs for maternal and infant products.

（6） 3C digital and electronic products: These categories are consumed more frequently, mainly because the live broadcast room can provide detailed product reviews and discount information to help consumers understand the performance and price of the product.

（7） Jewelry and luxury goods: These categories have a high consumption frequency, mainly because the live broadcast room can display the physical effect and quality of the goods and satisfy consumers' pursuit of quality and style.

（8） The consumption trend characteristics of these categories are as follows: High proportion of daily necessities: In live broadcast room shopping, daily necessities are consumed more frequently, such as clothing, food and beverages, etc. These products have high market demand and consumption frequency. Strong discounts: In live broadcast room shopping, products with strong discounts are more likely to attract consumers to buy, such as beauty and skin care, 3C digital products, etc. Diversified consumer demand: With the development of live broadcast e-commerce, consumers' demand for product types has gradually diversified, such as home appliances, computer digital, home and other categories. Live streaming effect: Consumers are full of trust and expectation for shopping in live broadcast rooms, especially the anchors, which makes various products sell well in live broadcast rooms. The pursuit of new shopping experiences: Consumers have a higher pursuit of new shopping experiences, such as ordering takeout and purchasing jewelry through live broadcasts. Live broadcasts are no longer limited to physical goods. To sum up, the categories that users purchase more frequently in live streaming e-commerce mainly include daily necessities, beauty and skin care, electronic products, etc. The consumption trends of these categories are characterized by strong discounts, diversified demand, obvious effects of live streaming and The pursuit of new shopping experience.

（1） Utilize social media marketing: Anchors can use social media platforms, such as Weibo, Douyin, Kuaishou, etc., to expand their influence and popularity and attract more targets by publishing valuable content, interactive interactions, cooperative promotions, etc. Audience attention and interest.

（2） Utilize offline event marketing: Anchors can use offline events, such as commercial exhibitions, offline book signings, fan meetings, etc., to interact and communicate face-to-face with audiences to increase fan stickiness and loyalty.

（3） Utilize brand cooperative marketing: Anchors can cooperate with brands to launch co-branded, limited-edition and other products, using the influence and resources of the brand to expand their visibility and influence, and attract more attention and interest from the target audience.

（1） Precision marketing: By fully analyzing user portraits, building an intelligent recommendation system, and finding the most suitable precision marketing strategy, we can help anchors better meet users' personalized needs and win more customer recognition. It can also effectively reduce marketing costs and improve Marketing effectiveness.

（2） Use people to drive products: Use the credibility and appeal of characters to attract clicks, enhance user trust, and achieve sales through mixed cuts from multiple angles, celebrity endorsements, expert recommendations, etc.

（3） Common topics and common hobbies: Anchors can bring consumers closer by finding common topics and common hobbies, and quickly reach empathy with consumers, thereby increasing their desire to buy.

（4） Immersive shopping experience: Live e-commerce uses three-dimensional, rich and vivid images to present products more vividly and digitally, providing more support for consumers to make purchasing decisions.

（5） Sense of urgency: Live broadcast e-commerce uses various methods such as anchor personality and limited-time discounts to build consumers' sense of urgency, allowing consumers to make quick decisions and promote conversion rates.