China’s digital landscape is evolving rapidly, with the lines between e-commerce and social media becoming more blurred than ever before. With platforms like Taobao, Tmall, JD, and Pinduoduo at the forefront, the lines between social interaction and online shopping are blurring, creating a dynamic market environment.

With over 1.1 billion internet users in China, the fusion of social media features within e-commerce platforms is more powerful than ever. The driving force behind this change? Social commerce, a trend that’s reshaping how brands—both domestic and international—engage with Chinese consumers.

The Rise of Social Commerce in China

China has long been a leader in the digital economy, but its recent innovations in social commerce are taking things to a new level. In 2024, platforms like Taobao, Tmall, JD.com, and even Douyin (TikTok’s Chinese counterpart) have seamlessly integrated social media features into their e-commerce ecosystems.

The key driver behind this shift is the growing appetite for interactive and community-driven shopping experiences. Consumers today are not just looking for products; they are seeking a sense of connection, entertainment, and engagement as part of their shopping journey. As a result, e-commerce platforms are transforming into hubs where users can watch live-streamed product demonstrations, engage with influencers, and share their own content about purchases, all without leaving the platform.

Taobao and Tmall: Pioneers in Blurring the Lines

Leading this shift is Alibaba, which operates Taobao and Tmall, two of China’s largest e-commerce platforms. These platforms have evolved to include robust social features that encourage users to “hang out” on the app, similar to how they would on a social media site.

In 2024, about 60% to 70% of Taobao and Tmall’s mobile apps are dedicated to content. This includes short videos, live streaming, and photo-sharing, transforming the platforms into spaces where consumers not only shop but also socialise. The idea is simple but impactful: if consumers are spending more time on the app, they're more likely to make a purchase.

In fact, live streaming has become a dominant shopping channel in China. Taobao’s live-streaming commerce business generated an estimated 770 billion yuan in revenue in 2022, reflecting how live streaming has evolved beyond entertainment to become an integral part of e-commerce. While Western users often associate live streaming with gaming, Chinese consumers have embraced it as a seamless way to discover and purchase products.

In addition, Alibaba’s Guangguang, a social media feature integrated within Taobao and Tmall, has amassed over 2 million content creators since its launch. Guangguang’s representative Liang has described the platform as a "content-marketing hub" based on fostering brand-fan relationships. Much like Xiaohongshu (Little Red Book or XHS), another prominent Chinese social commerce platform, Guangguang allows brands to showcase their values, share their stories, and engage users emotionally.

Key Features of Guangguang:

User-generated content (UGC) for authentic brand storytelling
Integration with live streaming for real-time engagement
A hub for merchants and content creators to collaborate

JD.com: A Growing Social Commerce Competitor

While Alibaba’s platforms lead the way, JD.com has also embraced social commerce. In addition to traditional product listings, JD has integrated live streaming, short-form video content, and community features to enhance user interaction. By allowing users to discover products through social content, JD is creating a more holistic shopping experience.

JD.com’s impact on the global retail landscape is significant. In 2022, the company was predicted to reach 400 billion US dollars in net sales, and this figure is expected to surge to 736.8 billion dollars by 2027, cementing JD’s position as a global retail leader. This growth reflects the platform’s innovative approach to e-commerce, blending content-driven interactions with shopping.

Moreover, JD.com has strengthened its collaboration with content creators and key opinion leaders (KOLs), ensuring a wider reach through authentic brand endorsements. The platform’s focus on building trust through content has been crucial in fostering customer loyalty in a highly competitive market.

Key Features of JD.com:

JD Live for real-time brand-consumer interactions
Short-form videos for engaging product discovery
User-generated content to build community trust
Strong KOL partnerships for enhanced brand visibility

The Power of Live Streaming in Social Commerce

One of the most impactful elements in China’s social commerce boom is live streaming. China’s live streaming e-commerce market reached nearly five trillion yuan in 2023, highlighting its rapid growth. Live streamers, or KOLs, play an integral role in influencing consumer behaviour. They engage with their audience in real-time, provide product demonstrations, and answer questions. This surge in popularity is forecast to continue, with the market expected to reach 8.16 trillion yuan by 2026.

What Makes Live Streaming So Effective?

Instant Engagement: Live streams enable viewers to ask questions and get real-time responses, fostering trust and authenticity.
Product Demonstrations: Live streaming allows brands to show products in action, offering a more comprehensive understanding of their value.
Exclusive Deals: Many brands offer exclusive discounts during live streaming sessions, encouraging immediate purchases.

The success of live streaming has led to an increase in influencer partnerships. Brands are collaborating with top-tier KOLs to tap into their established fan bases, leveraging their credibility to drive brand awareness and sales.

The Importance of Content in Social Commerce

Content is the cornerstone of social commerce in China. The blend of UGC, professional product reviews, and brand-generated content makes the consumer journey more engaging and informative. Shoppers are no longer passive—they actively seek out information, recommendations, and experiences shared by others before making a purchase.

In fact, authenticity is crucial for 90% of consumers when choosing which brands to support. Additionally, around 79% of shoppers report that UGC significantly influences their buying choices. On average, people spend about 5.4 hours daily engaging with UGC, further demonstrating its vital role in building trust and driving sales.

How Content Fuels Brand Growth:

Building Authenticity: User-generated content, such as reviews and testimonials, helps create a sense of authenticity around a brand.
Enhancing Brand Storytelling: Content platforms like Guangguang allow brands to tell their stories in an engaging way, helping them connect on a deeper level with consumers.
Boosting Credibility: Professional product reviews and detailed descriptions give potential buyers the confidence to purchase, especially when exploring new or foreign brands.

For overseas brands entering the Chinese market, this shift presents a unique opportunity. By crafting a content strategy that emphasises authenticity and relevance, brands can build trust, enhance credibility, and truly resonate with local consumers.

The Role of KOLs in China’s Social Commerce Landscape

KOLs are the driving force behind much of the success in China’s social commerce sector. By partnering with KOLs, brands can tap into their loyal followings, building trust and increasing exposure. In 2024, the role of KOLs has become even more critical as consumers continue to look to trusted figures for purchasing guidance.

Why KOLs Matter:

Authentic Endorsements: KOLs provide credible, personal recommendations that resonate with their audience.
Wider Reach: Partnering with popular influencers allows brands to tap into new and larger audiences.
Enhanced Brand Perception: KOLs often act as brand ambassadors, helping to shape how a brand is perceived in the market.

Collaborating with the right KOL can significantly boost a brand’s visibility and reputation, particularly for niche or overseas brands looking to break into the Chinese market.

How Brands Can Succeed in China’s Social Commerce Environment

Entering the Chinese market can be a daunting task, but understanding the unique social commerce landscape can make all the difference. Here are a few strategies brands should consider:

Localised Content: Tailoring your content to Chinese consumers is essential. Brands must create content that resonates with local culture, values, and trends.
KOL Partnerships: Collaborating with key influencers helps brands reach their target audience more effectively, building trust and awareness.
Engage Through Live Streaming: Live streaming is one of the most effective ways to connect with Chinese consumers, providing real-time interaction and building excitement around products.
Focus on Community Engagement: Platforms like Guangguang and JD.com’s social features encourage users to interact with content, creating a community around your brand.

By leveraging these strategies, brands can create a more authentic and engaging experience, boosting their chances of success in China’s competitive market.

Ready to Empower Your Brand in China?

Social commerce in China is more than just a trend; it’s a transformation in how consumers shop and interact with brands. For businesses looking to tap into China’s dynamic market, creating engaging, localised content is essential. Platforms like InfluenConnect are redefining how brands engage with influencers by offering a diverse range of KOLs, global reach, and data-driven insights. Click here to learn more about InfluenConnect.

For more such in-depth insights, follow Comms8 where we help your brand expand into foreign markets.

At Comms8, we specialise in helping businesses leverage the power of cross-border marketing in Asia. With our expertise, we can assist you in harnessing the influence of social commerce strategies to boost your brand’s credibility and awareness. Contact us today to learn more about empowering your brand in the dynamic Southeast Asian market.

China’s E-Commerce and Social Media are Merging in 2024