White Paper of Video Content-driven E-commerce Industry in China——full edition for free

Source:iResearch September 28,20204:53 PM
Market Drivers

Exhausted traffic dividends leads content to be the new traffic entrance

Recently, the Internet penetration rate in China has reached over 60%. The internet demographic dividend has come to an end. the growth of e-commerce GMV has slowed down, and the competition of e-commerce platforms has entered a stage of competition for existed users instead of new e-commerce users.
Because of the narrow traffic source, customer acquisition cost of traditional e-commerce platforms is continuously rising. It is urgent to develop new low-cost traffic entrance for traditional e-commerce platforms.

High-quality content can attract the attention of users and efficiently lead traffic to e-commerce platforms. Due to the development of mobile internet, the creation and propaganda of content become efficient and convenient. Thus, cost of content creation reduce and content becomes a cost-effective mean of acquiring traffic.

Continuous user growth and promising e-commerce monetization method

Since 2016, the short video and live streaming industry have developed rapidly and the user size has grown continuously. Short video/live streaming platforms represented by Douyin and Kuaishou have become new traffic highlands, and started to explore more traffic monetization channels to increase revenue.

Video content-driven e-commerce companies, including short videos and livestreaming, have natural advantages in customer loyalty and traffic aggregation capabilities. They are suitable for recommending products to others, and the platform environment is favored by e-commerce sellers.

Benefited from the excellent monetization potential of short video/live streaming, Red, Douyin, Kuaishou, and other platforms with short video/livestreaming content have successively expanded their e-commerce business.

Monetization Practices

Multiple monetization practices help build up a flexible revenue mix

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