Steep discounts and KOL endorsements have supercharged live-streaming sales in China, but are the merchants making money?

  • For one show, it cost US$43,000 in fixed fees and 25 per cent commission on sales to hire a popular live-streamer to promote a European brand
  • The live-streaming market will be worth 961 billion yuan in 2020, according to an iiMedia report

Li Jiaqi, one of China’s top live-streamers, goes by the nickname ‘lipstick king’. Photo: Handout
Li Jiaqi, one of China’s top live-streamers who goes by the nickname “lipstick king”, generated more than US$145 million in sales during the Singles’ Day shopping festival last November – but that does not mean brands can make money by hiring key opinion leaders (KOLs) like him to promote their products.

It cost Damian Maib 300,000 yuan (US$43,000) as a fixed fee and 25 per cent commission on sales to hire a popular live-streamer for one event on Douyin, the popular short video platform operated by ByteDance. The influencer also requested a 40 per cent discount on the products sold during the live stream.

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