According to Statista, in 2022, over a quarter of the total online shopping’s gross merchandise value in China came from live video streaming platform. This is a significant increase from 2019 when the share was 8.9%.
The entrance of live-steaming usually mimics a button that we can get an extra discount by hitting. We can find it quite easily when we are browsing product details. It seems that we can purchase the same product at a lower price from the host. However, is it genuine ?
The name Li JiaQi is often associated with discussions about live-streaming e-commerce in China. Recently, there is a rumour about him which may change the game of live-streaming e-commerce. It started from a social media post of a Purchasing Manager from one of the largest e-commerce platforms, JD.com
It shows that JD has received a lawyer’s letter from a brand named Hauswirt. Hauswirt accused JD of not following the agreement and lowering the price without its’ permission. As a result, Hauswirt in breach of a contractfrom another channel that they have an lowest-price agreement with . And the post also shows the channel is the live-streaming room of LJQ. It just so happens that the first letter of Li JiaQi is LJQ.
It definitely is a price-fixing, if the rumour is true. As we know, one of the advantages of e-commerce is reducing overheads and offering lower prices. However, in live-streaming shopping , companies have to pay an extra commission to the host. The more famous the hosts become , the more commission they get. As a result , the costs may raise the price, and ‘the lower price agreement’ makes other retailers sell the product at the same price.
As I was saying , the prices from a live-streaming room may not be the most competitive. I suggest you checking the price on different e-commerce platforms to ensure you can get the best deal. It won’t take much time.
Lim Wu 