How long can live broadcast e-commerce stand in the air? Over 10 million live broadcasts in half a year, with over 50 billion viewers! The annual transaction scale is approaching one trillion

Affected by this wave of epidemics, live broadcast e-commerce has reached a new height.

According to the data recently released by the Net Economics, in the first half of 2020, the transaction volume of live e-commerce reached 456.12 billion yuan, and the annual transaction volume is expected to reach 971.23 billion yuan.

The number of live broadcasts continues to increase, live content is constantly enriched, and live broadcast methods are constantly innovated. They are becoming a new bright spot and new engine in the e-commerce industry. According to the monitoring of the Ministry of Commerce, in the first half of the year, the national e-commerce live broadcasts exceeded 10 million, the number of active anchors exceeded 400,000, the number of viewers exceeded 50 billion, and the number of products on the shelves exceeded 20 million.

At the same time, people from the Ministry of Commerce also mentioned that, as a new thing, while live broadcast e-commerce is developing rapidly, there are also outstanding problems such as insufficient implementation of main responsibilities. In the next step, the Ministry of Commerce will actively cooperate with relevant departments to deepen inclusive, prudential and coordinated supervision, improve the integrity system, strengthen industry self-discipline, and promote the healthy development of live e-commerce.

Live broadcast e-commerce plays a "leading role"

Live broadcast e-commerce provides merchants/brands and others with the help of live broadcast platforms to sell their products, so that consumers can understand the various functions of the products, so as to realize the purchase transaction behavior.

In recent years, this industry has been in the forefront. From 2017 to 2019, the domestic live broadcast e-commerce market transaction scale was 19.64 billion yuan, 135.41 billion yuan, and 443.75 billion yuan. Among them, the growth rate in 2018 was as high as 589.46%, and the growth rate in 2019 was 227.7%.

Based on huge data, live e-commerce in 2020 will continue to grow rapidly due to the impact of the epidemic.

In the first half of 2020, the scale of live e-commerce transactions reached 456.12 billion yuan, and the annual transaction scale is expected to reach 971.23 billion yuan, which is close to the trillion mark; the growth in 2020 is expected to be 118.86%, still maintaining a three-digit growth rate.

It is understood that the current live broadcast e-commerce includes six types of MCN agencies, anchors, retail e-commerce, short video platforms, social platforms, and service providers. The main platforms included in the industry chain are: 1) MCN institutions: Ruhan, Qianxun, Meione, Fengqu Culture, Dayu Network, Netstar DreamWorks, etc.; 2) Anchor: Wei Ya, Li Jiaqi, Zhang Dayi, Sydney, Luo Yonghao, Simba, Sanda, etc.; 3) Retail e-commerce: Taobao, Pinduoduo, JD, Suning.com, Mogujie, Vipshop, Xiaohongshu, etc.; 4) Short video platform: Douyin, Kuaishou , Volcano, Station B, Douyu, etc.; 5) Social platforms: WeChat, Weibo, MOMO; 6) Service providers: Youzan, Weimeng, etc.

From the perspective of the market share of live broadcast transaction scale, Taobao live broadcast will account for more than 50% of the market share in 2020, reaching 500 billion yuan; Kuaishou will account for more than 25%, reaching 250 billion yuan; Douyin will account for more than 20%, reaching 200 billion yuan. The remaining market share is divided among platforms such as JD.com, Suning.com, Pinduoduo, Xiaohongshu, Mogujie, and Vipshop.

According to data from the NetEconomics Agency, the number of live e-commerce users in 2019 reached 250 million, and the number of users in the first half of 2020 was 320 million. It is expected to reach 372 million for the whole year, a year-on-year increase of 48.8%.

It is worth mentioning that the growing live broadcast e-commerce has also attracted the attention of regulatory authorities.

Not long ago, the State Council Information Office held a regular State Council policy briefing to introduce the "Opinions on Leading the Accelerated Development of New Types of Consumption with New Business Types and Models" and answer reporters' questions.

According to Wang Bin, head of the Department of Market Operation and Consumption Promotion of the Ministry of Commerce, in recent years, live e-commerce has shown a rapid development momentum. The number of live broadcasts continues to increase, the content of live broadcasts continues to be enriched, and the methods of live broadcast continue to innovate, becoming a new highlight and new engine of the e-commerce industry .

First, the scale continues to expand. According to monitoring by the Ministry of Commerce, in the first half of the year, the national e-commerce live broadcasts exceeded 10 million, the number of active anchors exceeded 400,000, the number of viewers exceeded 50 billion, and the number of products on the shelves exceeded 20 million.

The second is the increasingly rich scenes. From live broadcast of daily necessities and agricultural products to live broadcast of industrial belts, live broadcasts of time-honored brands, live broadcasts of intangible cultural heritage products, and live broadcasts of cultural tourism products, various live broadcast scenes emerge in an endless stream, satisfying residents' personalized and diversified consumer needs.

The third is the obvious leading role. During the epidemic, various localities carried out various live broadcast activities, which allowed many unsalable agricultural products to reach thousands of households and ensured market supply.

The next few years will still be a live broadcast year

Reflected in the capital market, concept stocks related to live e-commerce have also received more attention.

Song Yuxiang, an analyst at Northeast Securities, believes that the fourth quarter is the e-commerce Nuggets season and should actively embrace major industry trends.

First of all, in the post-epidemic era, users have cultivated online shopping habits and the industry's prosperity has continued to rise. We should focus on the climax of Double Eleven throughout the year. Song Yuxiang predicts that this year's "Double 11" overall transaction volume will continue to grow by about 26%-32%, corresponding to 517.8-5411 billion yuan.

Second, under the general trend of closed-loop live broadcast e-commerce transactions, the value of service providers is prominent. The recent vibrato/kuaishou small store policy has accelerated the construction of platform e-commerce ecology. Live e-commerce service providers will efficiently empower brands and consumers from the "people-goods-field" multi-dimensionality, and will fully enjoy the development dividends of the live e-commerce platform, and Continue to output core service value, corresponding to the vast market space of nearly 150 billion yuan.

Thirdly, the "e-commerce + content" general trend, video content contributes to user activity and increase in monetization; with the recent revision of the manual Taobao, the comprehensive promotion of short video content, the online video number of Xiaohongshu, and the upgrade of short video/live content on the worth buying platform, Mango SuperMedia has launched "Xiaomang e-commerce" and other initiatives. Song Yuxiang believes that "video + content + e-commerce" will gradually become the standard on all major platforms. Using video content to drive platform user stickiness and conversion, and bring new growth in business realization pole.

The retail industry analyst of a securities company in the western region also said that traditional retail is undergoing multi-faceted innovation and reform. In terms of channels, merchants actively guide traffic to private domains through live broadcast and other methods, and then activate and convert private domain traffic through social groups and personal accounts. In addition, traditional e-commerce companies have increased their live broadcast investment, providing more exposure opportunities for small and medium businesses.

How long can live e-commerce companies stay in the air? Wu Yiran, general manager of iResearch South China, believes that the next few years will still be a great year for live e-commerce.

Wu Yiran said that China's e-commerce live broadcast has experienced five years of initial, blowout development, and steady growth, and has formed its own industrial ecology. At present, the industry is in an explosive growth stage, and live streaming has almost become the standard configuration of all major platforms. 2020, the next few years, will still be a big year for live e-commerce.

But at the same time, from a long-term business perspective, live broadcast e-commerce will gradually shift from "extensive business penetration" to "stable business links". At the same time, the focus of traffic will shift to the center of service, which is also the continuous increase in the penetration of live broadcast e-commerce. One of the core drivers.