The toll of e-commerce in 2019: The year of go-live

2019 was the year the direct e-commerce sector took off, growing 71.2% year-on-year from CNY126.6 billion (about US$18.0 billion), according to Chinese financial services firm Everbright Securities (in Chinese) and an estimate from Coresight. The e-commerce market was worth an estimated 440 billion yuan (about $63 billion) in 2019, according to Everbright. This equates to about 9% of total estimated e-commerce sales in China this year ($723 billion), or roughly 1% of the official 2019 estimate of total sales of consumer good goods.

According to the company, Everbright's estimated sales revenue generated from live streaming is based on industry forecasts, and surveys with key industry players such as Taobao Live. Live streaming services have become a convenient option for Chinese consumers looking for new products, promotions or an impulse buy on a bargain, especially for categories such as beauty, fashion, food and household products. Live streaming in e-commerce is like TV shopping – think QVC – upgraded for the 21st century.

It hosts real-time streaming of video content by presenters who are designing or testing products. Viewers can purchase the item instantly from an embedded online link. Just like presenters on QVC, live stream hosts sell a wide range of products, from clothing and cosmetics to electronics and cars.

Taobao Live currently holds the largest share of the e-commerce market in China. The rest of the market is handled by short video platforms Kuaishou and Douyin, according to Everbright.