HANGZHOU, China, June 19, 2017 /PRNewswire/ -- Kleiner Perkins Caufield & Byers partner Mary Meeker released her annual rapid-fire internet trends report at Code Conference on May 31st. It includes a ton of information and analyses on technology, commerce and advertising trends worldwide. According to the report, live streaming monetization has become an interesting phenomenon in China. Its estimated revenue per hour has outpaced online games and the television in 2016.
Forbes reported in May that "the live streaming market didn't really take off in the U.S., but the Chinese mobile live streaming market is already huge". The number of overall live streaming users in China is predicted to grow to 414 million this year.
In the United States, Twitter Periscope and Facebook live have plain revenue generating ways, such as membership and advertisement. For instance, Brands can buy a 15 sec advertisement before the live steam. Users of apps like Periscope usually use the smartphone's back camera to broadcast what's happening around them instead of making a "selfie-video". With Live.me joining the market, the "digital gifts" which can be purchased and cashed, is preserved as a new way of making revenue.
While Americans are still in discovery phase, live streaming apps have gone mainstream in China already. Other than live streaming platforms such as YY and Inke which are used as social networking tools, e-commerce platforms such as Mogu Street and Taobao have added live streaming features to their platforms. These e-commerce platforms have made it clear that their goal is to promote consumption and to enhance the customer experience. Online streamers live stream and recommend products, and shoppers can click on the link while watching the video to buy the featured products. Shopping during live streaming is a brand-new experience since shoppers could perceive the products better from online streamers' illustration, live show and real-time interaction between shoppers and online streamers. Live streaming combined with e-commerce can be a very good example as the "Copy from China" concept.
For example, Mogu Street, who has more than 200 million registered young female users, broadcasts more than 800 live streaming shows everyday with more than 20000 registered live streamers and millions of viewers. On Mogu Street, most of the streamers are fashion opinion leaders. They introduce and sell fashionable goods to their audiences. Once a streamer on Mogu Street, sold fashion products valued over 80,000 dollars in one single occasion. The revenue engaged from live-streaming on Mogu Street rose significantly, which saw a nearly 144% increase from last December to the end of May this year. An interesting observation is that quite a lot of live-streaming audiences are apt to add the recommended products into shopping carts and pay for them later.
With the booming of China's e-commerce and growing of consumer choices, aesthetic, fashion, and individuation are becoming more and more important in consumers' requirement. Business holders are more willing to cooperate with live streamers in all kinds of ways. Brands not only can use the platforms to broadcast, they also can work with platform or streamer to do an exclusive and tailored live-streaming such as launching co-branding products.
China is already leading this live streaming trend of business innovation. And the real time experience, the authenticity and the excitement that live streaming can offer to its audience definitely brings the world tremendous business opportunities.
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SOURCE Mogu Street