BUSINESS INSIGHTS
Toby Zhang , CEO of Shop LIT Live
Buyers in the Chinese market are looking for product recommendations that are reliable and authentic . KOCs are everyday customers who have built up a small following of people who trust them for purchasing advice . When KOCs recommend a product , the product will experience more organic growth than if it was promoted by a celebrity . Brands are noticing this trend and are working to grow their KOC community by encouraging regular consumers to make content around the products they already own and enjoy .
KOCs are akin to micro-influencers or word of mouth marketing but in a more formalised marketing industry designation . In the US , influencers drive billions of dollars of consumer spending , but as the market saturates , American consumers are also increasingly wary of paid advertising in the influencer industry . from 2022 to 2023 . This model involves shoppers buying products through interactive livestreams hosted by brands or influencers . The technology combines the traditional brick-and-mortar shopping experience with video entertainment , to create an experience that allows consumers to be engaged with brands on a much larger scale .
Livestream shopping is just beginning to emerge in the US , with both major social media companies and smaller start-ups racing to be the leader . The pandemic fueled increased interest and openness to trying this new way of shopping since in-person experiences were limited and oftentimes complicated . With increased investment on the technology and industry side and higher adoption from end customers , livestream shopping is geared to drive e-commerce sales over the coming years .
Smaller KOC-style influencers would certainly bridge the gap between mega influencers and more authentic communitydriven product recommendations .
Livestreaming and short-form videos
Live commerce has seen massive growth in China . The market accounted for 12 % of all e-commerce sales in the country in 2021 and is forecasted to grow at 19.4 %
Despite the significant differences in customer behaviour , retail landscape and technology between China and the US , it does appear that many of the e-commerce innovations that occurred in China over the last decade are starting to make their debut stateside . While it had been difficult to change some of the shopping habits of American consumers , the pandemic kickstarted a surge in online shopping and a willingness to try new technologies or formats . x
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