In recent years, the phenomenon of live-streaming commerce has gained extraordinary momentum across the globe, and it appears that this trend has been embraced fervently by Chinese entrepreneurs venturing abroadParticularly on platforms like TikTok, these entrepreneurs are diligently replicating the short video and live streaming sales models that have proliferated in their home country.

One notable moment occurred on November 29, coinciding with the U.Sshopping extravaganza known as "Black Friday." An enthusiastic young Mexican woman named April, adorned in a fiery red bodycon dress and with her hair styled in vibrant yellow waves, stood in front of a shelf filled with colorful handbags—a focal point of her live-stream sale within the "Oohla SELECT" studio

She displayed her offerings with palpable excitement, delving into details about the materials, capacities, uses, and the impressive discounts of the day.

Outside the studio, Zhu Huakai and his dedicated team had been working tirelessly for days, extending their live-streaming sessions from the usual four hours to an exhaustive tenJust over a year ago, Zhu had observed the rapid expansion of e-commerce on American short video platformsHe entered the scene as an inexperienced "novice" after months of research and analysisApril became one of his signatory hosts, with "Black Friday" serving as a critical test for the team's burgeoning endeavor.

The atmosphere cultivated within the stream echoed that of domestic promotional events, with April energetically showcasing handbags, elaborating on their features, functionalities, and the extent of Black Friday discounts

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Occasionally, team members would rush in to enhance the excitement, making the scene more vibrant and engaging.

On that auspicious day, "Oohla SELECT" achieved remarkable results, recording a gross merchandise value (GMV) of $30,000—approximately thrice their typical figuresHowever, Zhu expressed a modicum of dissatisfaction, saying, “It was slightly below our expectations.”

Within just over a year, the landscape has dramatically transformed, with more individuals and institutions like Zhu Huakai entering the realm of overseas live-streaming commerce and content-driven e-commerce

This surge can be attributed to two significant trends: Firstly, international platforms have expanded their support for content-driven commerce, while more users have begun to embrace short videos and live-streamed salesSecondly, as Chinese brands and supply chains seek global reach, there has been a heightened demand for promoting and selling these brands abroad.

The rise of live-streaming commerce has piqued the interest of various e-commerce service providers, including Multi-Channel Networks (MCNs), TikTok Shop Partners (TSPs), TikTok Shop Affiliate Partners (TAPs), and Creator Agency Partners (CAPs). These entities have enjoyed a newfound surge in growth as they cater to the increasing demand for digital content and e-commerce solutions.

In September 2024, the renowned MCN "MeiONE," led by popular influencer Li Jiaqi, formally announced its overseas expansion plans, seeking to recruit personnel proficient in the Indonesian language

Prior to this, other prominent MCNs, such as "Jiao Ge Peng You," "Three Sheep," and "Xin Xuan," had already launched their overseas initiatives.

Yet, despite this fervent momentum domestically, live-streaming commerce is still in its nascent stage in international marketsThe overall market size remains modest, and support services are not fully matured.

From current observations, companies engaging globally are facing a myriad of challengesEntering international markets is merely the first step; the new market environment, unfamiliar platform ecosystems, and diverse cultural backgrounds present significant hurdles

Given their familiarity with domestic e-commerce and video platforms, many may instinctively try to replicate the domestic model without realizing the complexities involved in achieving success abroad.

With opportunities arise, many are making their move.

Experts predict that 2024 will mark the "Year of Live Commerce" for international e-commerceMajor markets such as the U.Sand the U.Khave seen instances where single live-stream events have surpassed $1 million in GMV, with numbers continuously being broken

In fact, the record for U.Slive-streaming GMV has already exceeded $2 million, while the U.Khas witnessed recordings reaching £1.5 million.

Aside from TikTok, platforms like Amazon, Shopee, Temu, Instagram, and YouTube have also intensified their forays into live-commerce this year, introducing innovative strategies.

Over the last two years, many MCNs and cross-border entrepreneurs have predominantly sought opportunities within TikTokThis platform operates akin to the overseas version of Douyin and has proven to be more relatable and familiar to those venturing abroad

TikTok has already rolled out the Shop feature in several countries across Asia, Europe, and the Americas.

In this wave of international expansion, prominent institutions are notably in the spotlightMost opt to initiate their overseas endeavors in Southeast Asia, where cultural differences are relatively minor and geographical proximity is advantageous.

One of the trailblazers in exploring Southeast Asian operations, Jiao Ge Peng You, established its overseas company in Indonesia back in 2021, and formed a dedicated team in 2022. Following suit, Xin Xuan partnered with local suppliers and brands in Thailand in May 2023, taking the first steps in its international venture

Similarly, Three Sheep Network has fabricated 2 million overseas followers within half a year through its dedicated TikTok division and live stream events.

JKL Technology, which boasts stars like Jia Nailiang and Shu Chang among its roster of influencers, has taken another route, making the U.Kits initial stopIts overseas strategy chief, Jiang Sheng, mentioned that in early 2024, the company assembled a team to engage with international merchants, assisting them in navigating overseas logistics while also developing live-stream eventsSo far, JKL Technology has built a team exceeding 100 members dedicated to overseas ventures.

In speaking about the evolving landscape, Wang Chenyang, responsible for operations in Europe at JKL Technology, highlighted that the platform has already partnered with key influencers, facilitating collaborative showcases to instill confidence within the market.

A study by British research firm Retail Economics suggests that more than half of consumers in the U.K

choose to shop using social media channelsThis trend is particularly pronounced on TikTok, where 44% of consumers have made purchases through the TikTok ShopThe firm predicts that the social commerce industry, including live-streaming sales, will grow more than double in the next four years, outpacing the growth of overall e-commerce sales by a factor of four.

German data company Statista reports that live-streaming sales in the U.Sreached approximately $50 billion in 2023, and this figure is projected to grow by 36% to $68 billion by 2026.

Recently, Rodrigo Farah, Head of Brands and Live Commerce at Shopee Brazil, noted that in the past year, revenues generated through live commerce on their platform surged more than tenfold, with seller participation increasing dramatically.

In various regions and across different platforms, live-commerce is making waves and disrupting the existing international e-commerce landscape.

Simultaneously, the government is gradually propelling cross-border initiatives into the mainstream

The General Administration of Customs has issued new regulations aimed at accelerating cross-border e-commerce exports, streamlining the filing process for warehousing outside of China, and simplifying export documentation requirements—to enhance the regulatory framework for cross-border e-commerce.

Two Paths: Selling Water or Merchandise

In August 2023, Ye Jinchun transitioned from an e-commerce seller in the maternal and infant sector to serve as a cross-border e-commerce service provider

Thus, he founded EC Media to provide brands with promotional and sales services overseas, becoming a facilitator within this emerging tide of international commerce.

The term "water seller" refers to those who can quickly identify and fulfill the needs of professionals within a nascent industry, delivering services such as technical support, logistics, and marketing consultation.

During his time as a cross-border seller, Ye Jinchun frequently traveled to Southeast Asia, benefitting from the red-hot opportunities abroad

However, he recognized the inadequacies in many accompanying services available, leading to challenges where many Chinese sellers continued to apply domestic strategies, like a relentless focus on price competitionHe saw the need for services that are more targeted and localized.

Distinguished by their wealth of experience accrued domestically, many MCNs can quickly enter the overseas live-streaming commerce market by adopting the role of "water sellers."

Jiao Ge Peng You, which was among the earliest to venture abroad, adopted this approach

Their head of international operations, Hao Xijie, indicated that their focus spans three primary areas: firstly, assisting Chinese brands in advertising and marketing; secondly, partnering with influencers for sales, and thirdly, providing operational support for brands in overseas live streamingThe influencer marketing component comprises the largest share at 70%, followed by cost-per-sale driven distribution and operational assistanceThey also actively pursue training initiatives for overseas e-commerce, notably centered around TikTok's live commerce.

Other entities, like Xin Xuan and Three Sheep, emphasize direct merchandise salesWhen Xin Xuan commenced its broadcasts in Thailand in May 2023, it achieved staggering sales exceeding 8.3 billion yuan from local fruits, skincare products, and latex pillows.

On January 10, 2024, Three Sheep collaborated with local influencer @shopwithsasax in Singapore for their inaugural live-streaming event, selling self-sourced products and leveraging local KOL resources to enhance brand presence swiftly

In August, Three Sheep signed a global strategic partnership agreement with J&T Express to enhance their footprint across Southeast Asia and worldwide.

Kaisernick, a cross-border e-commerce firm based in Shenzhen, emerged in 2019, focusing on small appliances and pet training products for the U.SmarketThey developed products themselves, which were manufactured by Chinese factories and exported to the U.SBy 2020, they had achieved over $300 million in sales on Amazon.

Upon witnessing TikTok launch its Shop feature in the U.S., Kaisernick decided to invest in TikTok's potential

As their existing products were already housed in U.Swarehouses, utilizing TikTok meant gaining an additional sales channelIn January 2024, they established a dedicated TikTok sales team to commence live commerce initiatives.

Zhang Guopei from Kaisernick shared insights, stating, “For new sellers venturing into the U.Smarket, aligning with established MCNs might not be immediately beneficial as they mainly hold top-tier influencersIt is more economical to collaborate with mid-tier influencers initially to build volume before approaching leading influencers.” As of now, they have partnered with over 200,000 influencers who typically charge between 10-15% in commission.

There is a growing perception among industry players that selling both products and services can often yield optimal results.

In 2024, He Ziyi, who previously spent eight years managing a brand in Australia, teamed up with a director friend to establish a U.S.-based MCN, CottonNest

This company has access to various influencers and stars while also possessing its own beauty brand and supply chainOn one hand, their in-house beauty brand is gradually gaining traction through self-broadcasting and influencer-driven sales, while also facilitating promotional and sales demands for local brands.

JKL Technology is diversifying its approachWhile providing services for Chinese merchants expanding abroad, they also run several self-owned stores, testing different channels such as Amazon and TemuTo secure a competitive advantage abroad, JKL is investing in foundational services aimed at establishing product selection bases that encompass sourcing, training influencers, and live-streaming features, with their product selection base in Los Angeles already catering to certain infrastructure needs.

Challenges of Localization

Does simply organizing teams, creating accounts, establishing links, and selling products guarantee a successful overseas operation? These steps alone are insufficient to solidify a foothold in the international market

Localization poses a formidable barrier that must be navigated.

He Ziyi emphasized, “It is imperative to localize; that much is clear.”

To begin with, the viability of traditional business models in foreign markets needs thorough validation.

Wang Chenyang elaborated, stating that various ecosystems exhibit distinctions

The nature of influencers, merchants, and products is inherently differentWhile headlining domestic agencies primarily feature star influencers with vast followings resulting in high conversion rates, the U.Kenvironment showcases business-oriented influencers focusing more on their personal brands, where audiences are often private and less amenable to mixed-product live-streams common in China.

Localization also demands an understanding of local consumer habits, insights into traditions, cultures, religions, and taboos, as well as hiring practices favoring local staffOne must ensure that products, services, and operational strategies harmonize with local ecosystems and platform expectations.

“Initially presumed to be relatively simple, the process has revealed new challenges on almost a daily basis,” remarked Zhang Guopei

For instance, newly hired employees frequently lack experience with TikTok operationsWhile everyone is familiar with Douyin, executing strategies on TikTok presents distinct complexities; challenges stemming from cultural unfamiliarity and ignorance toward regional regulations are prevalent.

Consider the thermal flask, for instance; domestically, individuals commonly use thermal flasks for hot water, whereas Americans typically use them for cold water or ice drinksThis discrepancy makes the domestic sales strategies align poorly with TikTok's audience expectations.

Especially for businesses like Kaisernick, which is situated far from the U.S

market, even when hiring content creators, ensuring that created content resonates with local users’ sensibilities is challengingTherefore, they often rely on influencers to generate content and subsequently repurpose that content for distribution.

Currently, many cross-border clients, particularly smaller sellers, end up encountering unnecessary hurdles due to limited understanding of local policiesPreviously, Ye Jinchun had a client whose electronic cigarettes were shipped to their destination in the U.S., only for the client to discover strict limitations set by local government regarding smoking products and sales channels.

Beyond cultural, habitual, and regulatory blind spots, the challenge posed by human resources remains significant.

After almost a year navigating TikTok’s U.S

endeavors, Zhang Guopei found that many influencers approached content commerce opportunities with a casual attitude, often welcoming collaborative ventures quite readilyHowever, emerging issues related to influencers taking advantage of merchants, non-compliance, inadequate cooperation, and escalating commission demands are surfacing within the industry.

Influencer management has proven to be a consistent challenge encountered by nearly every MCN while pushing localization and assisting cross-border merchantsZhang Guopei stated, “Among 100 TikTok sellers, 99 will likely indicate that influencers are difficult to manage and do not follow directives.”

Often, MCNs need to explain the desired framework for sales videos to influencers, such as initiating with a resonating question, presenting product details in the middle, and culminating with a conclusion urging customers to make purchases

However, many influencers tend to overlook these directives, typically opting to appear on camera holding products and proceeding to ad-lib their messages.

In addition to the communicative complexities with influencers, Jiang Sheng also highlighted local work ethic issues where employees do not routinely engage in overtime, creating challenges related to communication efficiency and collaboration.

Some employees even vanish after receiving their wagesYe Jinchun remarked, “We handle employees who go missing with resignation, yet we still must respond promptly because timely service to clients is essential.”

Consequently, Ye Jinchun has developed a backup team of hosts

“Our live commerce base in Malaysia has two floors with 14 broadcasting rooms, yet we often recruit 15, 16, or even as many as 20 hosts.” Ye explained that backup hosts can engage in short video shooting or assist with other tasks, providing immediate coverage when live-stream slots lack personnel.

He Ziyi noted that many MCNs entering the U.Smarket tend to become disconnected from influencers during initial stages of engagement and training, often unwittingly employing domestic training methods“We have made similar mistakes,” she explainedInitially conducted grand, polished live broadcasts, which ultimately yielded poor resultsAllowing influencers to present content in their comfortable, relaxed style often produces for better outcomes.

Having discovered an effective mode for engaging local influencers, He Ziyi remarks, “Listening to their perspectives while not exerting excessive pressure is crucial; for them, broadcasting for three hours is already an impressively high feat.” For many local influencers, achieving a balance between personal life and work takes precedence.

“Localization presents the greatest challenges in international expansion.” As a result, Zhu Huakai envisioned creating a wholly North American-focused, localized organization before establishing his company

Upon arriving in the U.S., he connected with local suppliers of bags and secured exclusive partnerships for one brand on TikTokHowever, building a localized team remains essential.

Zhu Huakai's company now employs 10 staff members, all of whom have resided in the U.Sfor over ten years, whether as native Americans or overseas ChineseWith host April’s influence, their store profile is seeing rapid growth; Zhu is now working with April on cultivating her personal brand and account.

The Market is Still Untapped

Currently, short video sales dominate the overseas market; however, since 2024, platforms have shifted more emphasis towards live-streaming, providing incentives, subsidies, and other resources.

Zhu Huakai believes that the live-streaming ecosystem is still relatively early-stage within the platforms

With users exhibiting shorter consumption cycles and lower frequency of purchases, it becomes apparent that user tagging on the platforms remains unclear, leading to lower conversion rates for live-stream traffic.

To adapt to this environment, Zhu plans to refine strategies next year, maintaining an emphasis on live streaming while significantly enhancing short video and influencer engagement.

Kaisernick's overall GMV on TikTok is nearing $10 million, registering approximately $100,000 daily

Yet, Zhang Guopei has observed substantial volatility in their performance, often resembling a rollercoasterFrom an operational perspective, the TikTok platform has yet to mature fully.

When Zhang Guopei first entered TikTok Shop, there were no operational personnel to assist or facilitate connectionsIt was only after achieving GMV that dedicated support commencedUntil then, navigating the platform was akin to feeling out the trail, step by step.

Liang Shuping, a British international student, opted to stay locally to engage in live commerce and even climbed to rank number two on TikTok UK's livestream leaderboards

However, since June of this year, she has experienced a significant shift in market dynamicsAn influx of new players has inundated an already limited market, intensifying competition.

Liang Shuping recognizes that strategies native to China have begun to permeate this market, with institutions organizing large-scale events for signed top influencers and the growing presence of major players in the marketThus, platforms and larger businesses increasingly attract potential buyers through advertisements and traffic, exacerbating the challenges faced by smaller merchants.

Progressively, TikTok commerce grows rapidly; however, it also finds itself caught in the intricate web of competing platforms, each carving out their niche and space

According to eMarketer, forecasts indicate that by 2024, Amazon will dominate the U.Se-commerce landscape, accounting for 40% of market share, while TikTok Shop ranks eighth, with predicted sales merely 0.6% of Amazon’s figures.

Moreover, online consumption in the broader overseas markets lags behind that of China, with numerous overseas users still unfamiliar with online shoppingEven when engaging in online commerce, TikTok remains a relatively lower-ranking choice.

As per the findings from Bizrate Insights' end-of-year e-commerce survey, 57% of U.S

adults are either indifferent towards or unaware of live-stream shopping, with only 21% having made purchases through live broadcastsOf these individuals, fewer than half (9%) engage in live shopping regularly.

Zhu Huakai noted that customer spending on TikTok remains relatively low, reporting an average transaction value between $25 and $30. The demographic primarily consists of consumers from tier two cities and lower-income segments, lacking a solid core spending group.

Moreover, TikTok's efforts to advance live-streaming and other shoppable content could detract from overall user experience

Many creators and users have criticized excessive advertisement burdens resulting from TikTok’s commerce promotions, undermining the platform's value as an entertainment sourceFollowing TikTok's implementation of e-commerce features, monthly active user growth has shown signs of slowing.

Thus, for now, both platforms and the commerce entities operating on them are mainly focused on how best to enlarge the digital commerce pie.

Since the beginning of this year, TikTok in the U.S

has eased entry requirements for its shops multiple times, lowering the threshold from an initial GMV requirement of $2 million per store to the complete removal of performance-related prerequisitesMoreover, companies from mainland China and Hong Kong are no longer subjected to stringent assessments regarding third-party e-commerce operational experienceThe platform is implementing these strategies to attract more merchants for onboarding.

Additionally, the platform is proactively facilitating collaborations between brands and overseas institutionsRecently, Ye Jinchun participated in an event led by TikTok Shop in Malaysia, where numerous brands seeking international expansion were congregated alongside MCNs and TSPs to foster cooperative ventures

“Collaboration revolved around services related to live streaming, short videos, and influencers,” he noted.

JKL Technology maintains active dialogue with several counterparts based in the U.K., highlighting the shift towards cooperation rather than competition, given the current shallow depth, variety, and efficiency of overseas live commerceWang Chenyang observed, “As many agencies, merchants, and platforms are still cultivating their strategies, there is a strong reliance on mutual learning amidst these maneuvers.”

Data from TEDA, a content and e-commerce analytics platform, indicated that no Chinese firms appeared in the Top 10 ranking of GMV among MCNs in the U.S