Livestreaming gains traction abroad

AliExpress is a well-known e-commerce gateway for overseas consumers looking for Chinese-made products. And now the platform is exporting something other than physical goods.

Derived from China's bustling digital media landscape, livestreaming has moved quickly from the periphery to the mainstream, with businesses engaging with customers in smartphone-based broadcast shows in which they market products and often offer steep discounts.

Today the novel marketing method is beginning to take root outside China, with offshore online hosts jumping on the livestreaming bandwagon to entice shoppers and gain an earlier edge to build up a proprietary follower base.

Among them include Dima Romashko, a 29-year-old Ukrainian TV host for a music channel, who touted livestreaming as a "life-changing experience" where he gained experience speaking to mass audiences.

Romashko's passion for the profession was ignited seven years ago when looking for an affordable pair of shoes online. Ever since he made his first value-for-money purchase on AliExpress, Romashko became a fan of the platform and voluntarily shared gems he discovered via the site among his social circles.

"When I'm livestreaming and introducing products, I always think about how I can let my audience know more about me and how I can gain their trust," said Romashko, who promotes everything from headphones to cosmetics and apparel.

He typically hosts three shows per week, each lasting 30 minutes to three hours. With some 300,000 followers across all popular social media networks, his best-performing records include the sale of 3,000 tech gadgets and 1,000 items of clothing, each in a single show.

Amateurs-turned influencers on AliExpress like Romashko began springing up as the site had some 150 million buyers by the end of last year. The platform has thus galvanized into action, launching a dedicated initiative this year called AliExpress Connect to help influencers sell through the marketplace.

Under the program, influencers and those who want to launch an influencer career can access collaboration opportunities, both with AliExpress and with brands that are selling through the platform. In return, they will be rewarded for creating original content that helps brands sell their products and brings new customers to the sellers.

The goal is to empower over 100,000 content creators worldwide over the course of the coming year to bring new job opportunities and help them generate new income streams, especially amid the global economic downturn caused by the COVID-19 pandemic, said Wang Peng, head of overseas seller operation and social commerce cooperation at AliExpress.

"We have cultivated this idea for a while. China is known to be advanced in e-commerce development, and livestreaming and content-driven sales have become some of the hottest trends in e-commerce," he said. "We recognize that the 'Shoppertainment' phenomenon－the fusion of content creation, entertainment and commerce－is reshaping the retail industry and consumers' online shopping habits."

Wang said the project is open to all who have a passion for being livestreamers, meaning one doesn't have to have an existing vast follower base as a prerequisite. Rather, established and emerging influencers can register through a one-click sign-up process tied to their Facebook, Instagram, Twitter, TikTok or Google accounts.

They can then take part in a number of different tasks and campaigns, working with both Ali-Express and its sellers through the task center and product center. After influencers complete their initial tasks, they can take on more tasks to "level up" within the program, gaining access to campaigns that offer higher remuneration.

"We don't earn any commission on any of the deals that are made between individual key opinion leaders and brands," Wang said. "We believe in the strength of our eco-partners, and that the prosperity of the ecosystem has a higher priority than the profitability of AliExpress Connect."

Customers watching the shows are also growing in sophistication, propelling online hosts like Spain-based Gonzalo Suarez Mendaza to make extra preparations.

"Viewers now have a lot of questions regarding not just products being introduced during shows, but on other related products. And they are so into technical details that I should really get myself prepared," said Mendaza, who normally promotes digital gadgets.

"Questions can be as detailed as: how many minutes can the watch stay in water without getting broken?" he said. "So specifications do matter. We as online hosts always need to have all the information at hand and have the products tested before."

According to both Mendaza and Romashko, compared with Chinese livestreaming shows, in which customers place orders almost instantaneously as livestreamers present goods, European buyers tend to have a longer decision-making cycle. That means online hosts should prepare themselves with follow-up questions and exhibit more patience for the online clicks to turn into profits.

Influencers and digital marketing agencies in China are busy grasping cultural nuances and masterminding differences between Chinese and foreign audiences.

For instance, the digital and social marketing unit under Chinese technology conglomerate Neusoft focuses on providing tailored services to meet local customer demand. The agency works regularly with 50 overseas key opinion leaders, most of whom are based in Russia, Ukraine, France and Spain.

According to Wang Zhihao, planning director of Digital Social Media Marketing Center at Neusoft, the major differences between overseas and Chinese influencers range from business models to types of shows they are engaged in.

"For instance, in China, the performance-based commission model has been widely accepted and adopted by a wide range of KOLs and sellers, whereas in overseas markets, KOLs are more accustomed to one-off payments due to the perceived longer purchase process," Wang said.

Also, the conventional length for an overseas livestreaming session is shorter (usually between one to two hours), with online hosts speaking less hastily compared with simultaneous sales-driven shows that are more commonly found in China.

Wang said his team members are sharing communication skills with foreign hosts to engage with viewers in a more lively manner, and are equipped with language talent conversant in Spanish, Russian, French and Arabic so that Wang's team understands in real time what messages are being delivered during the shows to ensure accuracy and security.

"Generally buyers from livestreaming shows overseas are more hesitant about purchasing goods priced over $30, so market education and trust building are important," he said.

Wang of AliExpress said training and knowledge-sharing constitute key ingredients to the AliExpress Connect project, and taking into consideration the cultural context is crucial.

"Although different markets may have different shopping habits, we believe social commerce is a global trend, and we are mindful of the importance of adopting local cultural practices and context when rolling this out around the world," he said.

Romashko said he was excited to be a witness of the changing attitudes toward Chinese products in the past three years as a livestreamer.

"Years ago, many people didn't trust Chinese products. Today the quality is rapidly rising, with Xiaomi, DJI and Huawei rising to become such prominent brands and smaller brands also making their names," he said. "I am happy about the changes because I know the quality (is good). I am also happy because I can now share such quality products with Western friends."