DESPITE THE CURRENT CRISIS, REMAIN CONNECTED WITH CHINESE MILLENNIALS THROUGH LIVESTREAMS.

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Coronavirus reminds us once again how interconnected the world is. Brands and customers live in different geographies. Raw materials and assembling are done in separate places. The current cities lockdown, precaution measures to stay at home, flights cancellation all suddenly upset the global supply chain networks. Consequences are harsh.

Chinese shoppers stay at home. In China, streets, airports, retail stores are empty. And as the country weighs for 35% of global luxury purchases – according to Bain Consulting – the impact is immediate. While Burberry closed 24 stores in China (out of 64), large luxury groups lost on average over 15% on stock market (i.e. billions of euros). Not only are their sales dropping, but their engagement with Chinese customers is reduced to the minimum.

Livestreaming has been booming over the past weeks

Staying at home all day means growing bored quite easily. No gathering with friends, no outside activities, no restaurant, no parties, no exhibitions, no shopping… More than ever, Chinese millennials therefore turn towards their smartphones to remain connected with the world. Messaging apps, remote working platforms and social networks serve their purpose: create bonding which complements real-life interactions.

Overall, one segment has seen a huge growth: livestreaming. Last month, the average daily livestreams watching time reached 105 minutes. Late 2019, it was 78 minutes. But what do they watch? Pretty much anything that keeps them entertained. In February alone, over 100 million people watched 1,000 live museum tours and 250,000 viewers connect daily to Super Monkey’s live gym sessions. DJs even live-broadcasted their sets in empty clubs and received tips that reached €300k.

Livestreaming fills a triple need. The first one is entertainment: live videos are fun and bring this feeling of instantaneity one cannot experience through other formats. The second is discovery: through lives, viewers discover new places, new people, new brands and new products – and they highly value fresh content nowadays. The third is the social bonding: watching a live means sharing an experience with thousands of other viewers, interacting, talking and debating with them.

Since 2019, Chinese customers are used to spending money while watching these shows. Livestreams, as a shopping channel (see previous article), are becoming even more relevant.

Live-shopping: a gem for brands

While brands are seeing their contact with customers erode day after day, livestreaming might be a solution to keep the fire burning. Chinese brands are already seizing this opportunity. Yet Western brands have been less exposed to this channel and find it harder to embrace it. In times of fierce competition, taking a leap forward and making a first step in the world of live-shopping could have a highly beneficial short-term and mid-term (once the virus is contained) impact.

Of course, live-shopping does not mean merely turning on a camera and introducing products. There needs to be a story, a purpose and a message behind. Fortunately, Western brands have strong stories, savoir-faire, beautiful shops, showrooms or factories. Capitalizing on such assets to keep their Chinese customers engaged with an entertaining, interactive and social experience, is very interesting.

Local players are already feeling the pulse and adapting to the current situation. As per Alibaba, 8.2 million people tuned in to watch a livestream explaining how to wear make-up with surgical masks. Which resulted for a 150% month-over-month sales increase of eyeshadow palettes on the following week. Forest Cabin – a Shanghai-based cosmetics brand – closed over 150 stores and now focuses on training 1,600 sales assistants to prepare them for livestream sessions. Western brands have started too: BMW organized a live to introduce to customers the new cars, the inside and the driving tests.

Allison Wong, who counts over 700,000 followers, relevantly points out that “it is not the good time to show that you’re earning money, but it is a true opportunity to reinforce your customer base if the livestreams you provide show that you are caring”.

Sincerity ends up being the key point here: if the idea is to sell your goods no matter what, livestream will not save you. However, if you understand what Chinese customers’ are going through and keep them engaged with relevant content, it certainly is a good time to go live.

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MOOD is a live-shopping company promoting European luxury & designers' brands to Chinese millennials. From Paris, London, Milan and Berlin, Chinese micro-influencers broadcast their favorite brands, products & stores through live videos on mobile. Viewers tune in to discover and purchase the newest trends from Europe. First in, first served. (https://www.dhirubhai.net/company/thelivemood/)