Livestreaming Is Becoming Everyday Retail Infrastructure in China
For years, e-commerce livestreaming in China was defined by a handful of mega livestreamers generating enormous sales in a single session. Names like Li Jiaqi and Viya became household brands, and foreign companies entering the market often viewed livestreaming through the lens of securing these headline-grabbing KOL partnerships. That model still exists, but it is no longer the whole market — and for brands looking to build sustainable operations, understanding this shift is critical.
China’s livestream e-commerce market has grown into a mainstream retail channel. In 2025, total GMV exceeded RMB 5.26 trillion (approximately USD 720 billion), representing year-on-year growth of over 16%. The user base has reached an estimated 660 million people — roughly 58.7% of China’s internet population. Perhaps more importantly, livestreaming now contributes approximately 80% of all e-commerce incremental growth, making it the single most important growth engine in China’s digital retail ecosystem.
The model has fundamentally shifted.
Brand-operated store livestreams now account for more than half of total GMV. Rather than one-off mega sessions with celebrity hosts, brands are building always-on retail operations with trained store hosts, employees, category specialists, smaller KOLs, and KOCs (Key Opinion Consumers). This shift away from celebrity dependence reduces risk and gives brands direct control over pricing, product claims, inventory management, and customer service.
The market structure tells the story clearly. In 2025, the top livestreamers drove only 10.66% of total GMV, while small and medium-sized livestreams rose to 89.34%. The era of winner-takes-all livestream economics is over. What replaces it is a distributed, professionalized ecosystem where consistency matters more than virality.
Compliance is now a core requirement, not an afterthought.
Government regulations effective from February 2026 clarify responsibilities for platforms, livestream operators, hosts, and agencies. Rules specifically address misleading product claims, disclosure requirements, and the use of AI-generated presenters. The regulatory framework signals that livestreaming is being treated as a permanent retail channel deserving of the same oversight as traditional e-commerce.
For foreign SMEs entering China, the strategic question has evolved. It is no longer “Which famous livestreamer should we hire?” Instead, it is: “Can we build a livestreaming operation that runs repeatedly, compliantly, and profitably?”
At RedFern Digital, the operating models we build for clients treat livestreaming as a recurring retail capability. Success is measured through unit margin, customer acquisition quality, and repeat purchase rates — not headline GMV alone. Brands that adopt this mindset are positioning themselves for sustainable growth in what has become the world’s most sophisticated livestream commerce market.
