Beijing (PingWest)- Following the partnership between JD and Kuaishou, Suning.com is the latest online retailer to partner with a livestream platform to embrace an emerging trend in Chinese internet where short video apps and e-commerce platform are bound together for monetization synergies.
Suning.com and ByteDance-owned Douyin on Friday announced a partnership agreement to provide supply chain service and build live-streamed brand for e-commerce.
Similar to Kuaishou and JD alliance, Consumers will be able to make purchases directly from the live streaming platform without being redirected back to Suning.com. Under the agreement, Suning will provide delivery and after-sale services for all its product sales made on Douyin, while Douyin will provide an analysis of the live-streaming e-commerce to improve the sales performance.
The partnership come ahead of Suning’s 818 shopping festival, which fall on mid-August each year, and could give two parties a significant boost in sales from live streaming to help them compete with rival- JD and Kuaishou alliance.
“The cooperation can help Suning to reach young consumers and get better sense about their need and consuming behavior, so we can provide tailored-made and premium service to meet their demand,” Fan Chunyan, vice-president of Suning.com said.
Tapping into live streaming has become a hot trend in China this year as more enterprises in traditional sectors, including smartphones and home appliances, found ways to reach out to customers through online channel amid the lockdowns and quarantine measures imposed nationwide to contain the spread of the virus.
Corporate CEO, celebrities, government officials all present their sales pitches to live audiences. Gree Electric Appliances chairwoman Dong Mingzhu sold CNY310 million of goods in her second-commerce livestream event on short video platform Kuaishou on May 10, while Ding Lei, founder and chief executive of gaming giant NetEase, generated CNY72 million in sales after a live-streaming show on Kuaishou this month.
Douyin rival Kuaishou announced in June that it will invest CNY 3 billion to build its live streaming e-commerce headquarters in Chengdu, a move that signal Kuaishou’s determination to make big bet on the live-streaming e-commerce that has flourished during the Covid-19 pandemic.
The announcement comes a month after Kuaishou signed a cooperation deal with JD.com that allow consumers to make purchases for selected products directly from Kuaishou without being redirected back to JD.com.
The number of live streaming video users in China is expected to reach 526 million this year, up from 504 million in 2019, according to iiMedia Research.