Understanding Live Streaming Commerce Eco-System Development in China

The study attempts to understand the success of Live Streaming Commerce (LSC) in China from a comprehensive approach. Through reviewing recent literatures and industry reports, we have found that LSC involves a variety of players and works like an eco-system in which all players have seamless cooperation by giving full play to their respective knowledge and advantages. LSC platforms can not only attract users quickly and easily but also retain them effectively. Regarding the mass-personal hybrid communication nature of live streams, we suggest that interpersonal interaction increases consumers’ positive experiences, whereas its mass media broadcasting feature facilitates product promotion. This paper conducts analysis innovatively from the mass-personal hybrid broadcasting nature of live streams and the compelling, engaging and information-intensive nature of video, which enable LSC to have unique advantages such as real-time interactivity, visibility, and personalization. Further, it is also a new approach to study, the LSC consumers from the perspective of entertainment, the special characteristic of Chinese Internet culture. We have concluded that the magical power of LSC in China might be related to the unique characteristics of LSC and Chinese culture. Our findings are expected to supplement the existing body of literature on LSC.