Key Takeaways From the Taobao Live 2021 Livestreaming Report
Alibaba’s livestreaming platform Taobao Live recently published its 2021 Live Streaming Report (淘宝直播2021年度报告). First launched in 2016, this year marks the 6th anniversary of Taobao Live, which was really the pioneer of e-commerce live streaming in China and even throughout the world. Taobao Live truly took off and became mainstream in 2020, and the platform predicts 2021 will see a shift towards steady growth and maturation of the live commerce industry.
Here we’ll share some of the key changes and trends highlighted in the report, as well as a link to the full report below (in Chinese).
Live Streaming Has Become a Must-Have for New Brands
Over 90% of new brands on Tmall have livestreamed on Taobao Live. When it comes to live stream sales performance, in 2020, the top three new brands are Chinese beauty brand Florasis (花西子), underwear brand Ubras and another domestic beauty brand HELIUS.
But the top 20 brands weren’t just from beauty and fashion as you might expect. Number 8 was dairy brand Adopt A Cow and number 9 was robo vacuum Narwhal. Number 12 was meat brand Daxidi (大希地) and number 13 was a company Heibaidiao (黑白调) who makes ergonomic desks and chairs for children.
This really goes to show that brands from any industry can leverage live commerce. There are some more great stats on that below.
Brand-Run Live Streams Becoming More Popular
It’s also worth noting that, among nearly 1,000 livestream rooms that achieved over 100M RMB sales in 2020, 55% of them were brand-run livestreams (as opposed to live streams run by influencers at 45%). This shift from a brand relying on influencers to sell products to training its sales associates to become live streamers was a big trend in 2020 and is continuing this year.
Fake products are still a key issue in livestreaming, and brand-run livestreams erase consumers’ concerns. Personally, I would rather buy a product from a brand’s flagship store than buying it at a cheaper price from other stores.
Diversity in live streamers
Yet at the same time, as the industry has boomed, the number of live streamers is also rapidly increasing. In 2020, the amount of live streamers grew 661% compared with 2019’s.
Along with the increasing number is the diversity in live streamers. When Taobao just started the livestream business in 2016, only girls who looked good and understand well of Taobao can be live streamers. In 2019, many KOLs and celebrities were joining the industry, and in 2020, many brands were stepping in this lucrative market. Now, you can also see many CEOs showing up in livestream rooms.
Taobao has identified six categories of live streamer personas:
Taobao Live streamers:
- Such as Austin Li and Viya
- Entered Taobao Live early and have developed massive followings and lots of experience
Influencers:
- Such as Cherie and Zhang Mofan
- Came to Taobao Live with credibility and a large audience
Celebrities:
- Such as Liu Tao and Ji Jie
- Have a large fanbase and are liked by brands
TV Hosts:
- Such as Li Jing
- Come with very strong hosting skills
CEOs and Executives:
- Such as Dong Mingzhu (Gree)
- Well-known leaders, provide professional product insights
Sales Assistants:
- Such as the team at Intime department store
- Brands can leverage many of them, they have deep knowledge of customer needs and of the store’s products
Everyone can be live streamers. This is what is happening in China.
Product Categories with the Most Growth
The product categories that these streamers focus on has also become more diverse. In 2019, the four main categories the live streamers specialized in were beauty, fashion, jewelry, and food & beverage. While these are still the top categories, 2020 saw an influx of streamers in the home décor, furniture, sports, automobile, and home appliances categories.
When it comes to overall live stream sales, including both live streamers and brand-run streams, the industries that saw the biggest growth in sales in 2020 were cosmetic medicine, books and audio, electronics, auto, large and small home appliances, furniture, sports, local services, and food.
There were also niche subcategories that saw huge growth last year. For example, sales of Hanfu, or traditional Chinese clothing, on Taobao Live grew 753%. Hair removal products grew 203%, Italian pasta grew 1,485%, and massage guns 864%. Even crazier, the sales of motorcycles (the entire motorcycle, not just parts!) grew 185% and orthodontic braces (yes, braces!) grew a whopping 13,456%. If that doesn’t prove you can sell anything through live streaming, I don’t know what can.
The Number of Taobao Live Core Users is Increasing
Behind the rapid development of Taobao livestream is the increasing number of its core users. Core users are people who watch livestream on a frequent basis and they tend to watch the livestream for a long time. They also spend at least 3x more than average users each month.
According to the report, core users contribute 80% of the total watching time on Taobao Live, and drive 60% of the sales. In 2020, the number of core users grew 150%.
It is still not late to enter the industry. Though the buzz surrounding livestreaming has decreased a lot in 2021, it doesn’t mean the industry is saturated or in decline. It has just stepped into a mature and steady developmental stage.
Find the full report here: 重磅！淘宝直播2021年度报告发布，这些品类在直播间里大爆发
