'Live shopping' is like QVC on steroids. Here's why these massive app-based events have taken over China — and are becoming more popular in the US.

Lakshmi VaranasiNov 6, 2022, 17:17 IST

Xinhua News Agency / Contributor/ Getty Images

Live shopping is a way of buying products in real-time that has taken over China.
It's gaining popularity in the US through platforms like TikTok, Popshop Live, and Whatnot.

Live shopping took off in China in the mid-2010s. By 2020, it was a $171 billion market, according to reports from McKinsey.

Future Publishing / Contributor/ Getty Images

Shoppers tune in to watch hosts display new items, answer questions, and even model products.

China News Service / Contributor/ Getty Images

It's similar to QVC on television, with people buying products in real time.

NBC / Contributor/ Getty Images

However, live shopping usually takes place through mobile apps which means anyone can download an app and become a seller.

Future Publishing / Contributor/ Getty Images

Hundreds of live shopping apps have been launched in China. Taobao Live— the live-stream arm of Taobao, China's Amazon equivalent— is among the most popular.

SOPA Images / Contributor

Hundreds of live shopping apps have been launched in China. Taobao Live— the live-stream arm of Taobao, China's Amazon equivalent— is among the most popular.

Douyin, a short-form video app owned by TikTok's parent company ByteDance, is another popular platform.

VCG / Contributor

Live-selling sessions are often scripted and feature high-end lighting, professional wardrobes, sets, sound editors, production managers, and professional make-up artists.

VCG / Contributor/ Getty Images

Live-selling sessions are often scripted and feature high-end lighting, professional wardrobes, sets, sound editors, production managers, and professional make-up artists.

The most popular live-shopping hosts have become a new class of celebrities in China called "KOLs" or key opinion leaders. Viya has earned the title "live-streaming queen" for her viral shows.

VCG / Contributor/Getty Images

The most popular live-shopping hosts have become a new class of celebrities in China called "KOLs" or key opinion leaders. Viya has earned the title "live-streaming queen" for her viral shows.

Austin Li—also known as the "Lipstick King"— once sold 15,000 lipsticks in five minutes.

VCG / Contributor

The amount of money a host usually makes depends on how famous he or she is. Major sellers, like Li, charge brands steep flat fees to feature products on their shows. They often take a cut of the revenue that the brand reaps from the livestreams, too. Smaller sellers usually can't command as much.

VCG / Contributor/ Getty Images

The amount of money a host usually makes depends on how famous he or she is. Major sellers, like Li, charge brands steep flat fees to feature products on their shows. They often take a cut of the revenue that the brand reaps from the livestreams, too. Smaller sellers usually can't command as much.

However, popular live shopping hosts have caught the eye of the Chinese Communist Party. Viya was fined roughly $210 million for tax evasion, a charge the government has levied against pop stars in the past, according to Rest of World.

Chen Zhongqiu/VCG/Getty Images

However, popular live shopping hosts have caught the eye of the Chinese Communist Party. Viya was fined roughly $210 million for tax evasion, a charge the government has levied against pop stars in the past, according to Rest of World.

In June 2022, Li mysteriously disappeared while hosting his show. He resurfaced a few months later in September as if nothing had happened. Analysts largely believe Li was censored by the Chinese government.

VCG via Getty Images

In June 2022, Li mysteriously disappeared while hosting his show. He resurfaced a few months later in September as if nothing had happened. Analysts largely believe Li was censored by the Chinese government.

Connie Chan, partner at the venture firm Andreessen Horowitz who specializes in Chinese consumer culture, said "China live shopping is largely centered around deals and also trusted curators."

Andreessen Horowitz

Connie Chan, partner at the venture firm Andreessen Horowitz who specializes in Chinese consumer culture, said "China live shopping is largely centered around deals and also trusted curators."

"If you compare China liveshopping vs. the US ecosystem today, the China version is more transaction-oriented," Chan said. "In the US," she added, "we also see more community and entertainment use cases driving the adoption and repeat engagement in live shopping."

Sutthipong Kongtrakool/ Getty Images

"If you compare China liveshopping vs. the US ecosystem today, the China version is more transaction-oriented," Chan said. "In the US," she added, "we also see more community and entertainment use cases driving the adoption and repeat engagement in live shopping."

Over the past few years, major tech companies have begun dabbling in live shopping. In 2019, Amazon launched Amazon Live, a feature that allows brands and specialized Amazon hosts to broadcast their own live stream shows.

Screen shot of Amazon Live in Apple's App Store

Over the past few years, major tech companies have begun dabbling in live shopping. In 2019, Amazon launched Amazon Live, a feature that allows brands and specialized Amazon hosts to broadcast their own live stream shows.

Facebook launched its own live shopping feature in 2018, which aimed to help small creators and brands sell products and connect with new customers. The company disabled the feature in October 2022.

TikTok will soon be launching a live shopping arm in the US, but the platform has already become a destination for live shopping. TikToker @kimmiebbags, for example, hosts a live shopping show selling luxury bags that regularly draws tens of thousands of viewers.

KIMMIEBBAGS

TikTok will soon be launching a live shopping arm in the US, but the platform has already become a destination for live shopping. TikToker @kimmiebbags, for example, hosts a live shopping show selling luxury bags that regularly draws tens of thousands of viewers.

Now, smaller live-shopping platforms like Popshop Live have also been picking up buzz.

Vivian Nguyen

So has Whatnot, which has become especially popular for collectibles like Pokemon cards and action figures.

Whatnot

Whatnot's CEO Grant LaFontaine said, "Live stream commerce is the closest you can get to an in-person retail experience because you can see the objects as they are and have a direct conversation about them." He added, "this establishes more trust and it's more fun – you're watching with hundreds of others, you can talk to them, and build friendships or a community around it."

Whatnot

Whatnot's CEO Grant LaFontaine said, "Live stream commerce is the closest you can get to an in-person retail experience because you can see the objects as they are and have a direct conversation about them." He added, "this establishes more trust and it's more fun – you're watching with hundreds of others, you can talk to them, and build friendships or a community around it."

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'Live shopping' is like QVC on steroids. Here's why these massive app-based events have taken over China &mdash; and are becoming more popular in the US.

Live shopping took off in China in the mid-2010s. By 2020, it was a $171 billion market, according to reports from McKinsey.

Shoppers tune in to watch hosts display new items, answer questions, and even model products.

It's similar to QVC on television, with people buying products in real time.

However, live shopping usually takes place through mobile apps which means anyone can download an app and become a seller.

Hundreds of live shopping apps have been launched in China. Taobao Live— the live-stream arm of Taobao, China's Amazon equivalent— is among the most popular.

Douyin, a short-form video app owned by TikTok's parent company ByteDance, is another popular platform.

Live-selling sessions are often scripted and feature high-end lighting, professional wardrobes, sets, sound editors, production managers, and professional make-up artists.

The most popular live-shopping hosts have become a new class of celebrities in China called "KOLs" or key opinion leaders. Viya has earned the title "live-streaming queen" for her viral shows.

Austin Li—also known as the "Lipstick King"— once sold 15,000 lipsticks in five minutes.

The amount of money a host usually makes depends on how famous he or she is. Major sellers, like Li, charge brands steep flat fees to feature products on their shows. They often take a cut of the revenue that the brand reaps from the livestreams, too. Smaller sellers usually can't command as much.

However, popular live shopping hosts have caught the eye of the Chinese Communist Party. Viya was fined roughly $210 million for tax evasion, a charge the government has levied against pop stars in the past, according to Rest of World.

In June 2022, Li mysteriously disappeared while hosting his show. He resurfaced a few months later in September as if nothing had happened. Analysts largely believe Li was censored by the Chinese government.

Connie Chan, partner at the venture firm Andreessen Horowitz who specializes in Chinese consumer culture, said "China live shopping is largely centered around deals and also trusted curators."

"If you compare China liveshopping vs. the US ecosystem today, the China version is more transaction-oriented," Chan said. "In the US," she added, "we also see more community and entertainment use cases driving the adoption and repeat engagement in live shopping."

Over the past few years, major tech companies have begun dabbling in live shopping. In 2019, Amazon launched Amazon Live, a feature that allows brands and specialized Amazon hosts to broadcast their own live stream shows.

Facebook launched its own live shopping feature in 2018, which aimed to help small creators and brands sell products and connect with new customers. The company disabled the feature in October 2022.

TikTok will soon be launching a live shopping arm in the US, but the platform has already become a destination for live shopping. TikToker @kimmiebbags, for example, hosts a live shopping show selling luxury bags that regularly draws tens of thousands of viewers.

Now, smaller live-shopping platforms like Popshop Live have also been picking up buzz.

So has Whatnot, which has become especially popular for collectibles like Pokemon cards and action figures.

'Live shopping' is like QVC on steroids. Here's why these massive app-based events have taken over China — and are becoming more popular in the US.