SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Commerce & Industry (MoCI) | Ministry of Electronics & Information Technology (MeitY)
Livestreaming has become the number one e-commerce sales strategy in China, fundamentally reshaping media consumption and purchasing behavior. This model blends entertainment, social interaction, and instant purchasing, with Key Opinion Leaders (KOLs) leveraging their significant followings to build trust and drive real-time sales. The interactive experience is now considered essential for consumer-facing brands seeking growth in the Chinese market. Australian businesses leveraged this strategy during the 2025 China Seafood and Fisheries Expo (CFSE) and the China International Import Expo (CIIE), achieving $12.6 million in sales attributed to livestreaming in the week following CIIE alone.
Key Opinion Leaders (KOLs) are influential individuals who have significant local followings (often millions of viewers). Unlike traditional advertising, KOLs drive sales by showcasing products and interacting directly with customers in real-time during their livestreams, fostering an emotional connection and trust that translates directly into real-time purchases.
The Chinese livestreaming economy is characterized by sophisticated algorithms and highly interactive sessions where the audience frequently interrupts with questions. Experts caution that businesses must be prepared for this interactive environment and are advised to partner with reputable media agencies and professionals to effectively navigate the complex platform algorithms.
Policy Relevance
The success of the Chinese livestreaming model underscores a major digital commerce trend that India must rapidly adapt to, particularly for its Micro, Small, and Medium Enterprises (MSMEs) and export-oriented sectors. Livestreaming is where customer attention, trust-building, and purchasing happen at once, making traditional e-commerce less competitive. To compete globally and encourage domestic MSMEs to adopt social commerce, the government must invest in:
Digital Infrastructure & Platforms: Developing or promoting resilient, interactive domestic platforms that facilitate real-time KOL-driven sales and replicate the seamless transaction capabilities seen in China.
Skill Development for MSMEs: Creating specialized training modules (under schemes like Digital India) to train MSMEs in leveraging KOL partnerships, navigating social media algorithms, and understanding real-time audience engagement metrics.
Export Strategy: Integrating livestreaming into national export promotion strategies (e.g., through virtual India Pavilions at international expos) to provide Indian brands with direct, trust-based access to foreign consumer markets.
Relevant Question for Policy Stakeholders: What targeted government incentives will be implemented to encourage domestic logistics and payment providers to integrate seamlessly with Indian social commerce platforms, mirroring the “instant purchase” convenience that turbocharges sales in global livestream markets?
Follow the full news here: Livestreaming turbocharges e-commerce in China (Austrade)