Japanese Media Views on the Development of China's E-commerce
The live-streaming e-commerce market in China is experiencing explosive growth, approaching 100 trillion yen. Its vitality extends not only to clothing and cosmetics but also to real estate and B2B products, truly achieving a scale that surpasses offline commerce. This transformation is driven by fundamental shifts in methodology—such as artificial intelligence.
This analytical report details the future global trends in live-streaming e-commerce by comparing it with the Japanese market.
China’s online e-commerce market has seen explosive growth, fueled by increased homebound demand during the COVID-19 pandemic. In just a few years, its scale expanded by tens of trillions of yen. According to analysis from the professional research firm Net Economy, the market size already surpassed 100 trillion yen between January and December 2023.
More than half of China’s internet users utilize live-streaming e-commerce, and overall e-commerce penetration is extremely high.
In 2023, China’s e-commerce market reached approximately 418 trillion yen (calculated using the average exchange rate of 1 USD = 140 JPY for 2023). Among this, the live-streaming e-commerce segment grew to 4.9 trillion RMB (approximately 100 trillion yen). Thus, online e-commerce now accounts for 20–30% of the total e-commerce market, evolving from a fleeting boom into an essential channel deeply embedded in consumers’ daily lives.
Moreover, among China’s roughly 1.1 billion internet users, 800 million have watched and used live-streaming platforms—including live transactions. It’s not limited to traditional categories like apparel and cosmetics; everyday essentials, food, automobiles, and even real estate and B2B product presentations are being sold in real time via live streams.
This scenario evokes memories of the rapid popularization of electric vehicles in China from 2021 to 2024. Within just a few years, mainstream cars in China were no longer gasoline-powered, with about half of consumers choosing electric vehicles.
As the market expands, the methods and platform characteristics of China’s live-streaming e-commerce have undergone significant evolution—from initial “holiday-style” sales to more sustainable and quality-focused operations today.
Previously, the dominant model involved a small number of top-tier influencers earning hundreds of billions of yen in one night. However, due to rising risks and costs associated with scandals involving these top streamers, the trend has shifted toward “brand direct sales with in-store live streaming.” Companies now establish their own studios to host live broadcasts, enabling consistent brand messaging and better profit margins.
Integration of Artificial Intelligence and Virtual Technologies
Since the mid-2020s, technological adoption and advancement have accelerated rapidly. The introduction of “AI virtual hosts (virtual avatars)” is underway, enabling round-the-clock, uninterrupted live-streaming services 24/7, significantly reducing costs during late-night and early-morning hours. Additionally, AI-driven real-time translation functions lower barriers to overseas distribution—not just within China, but globally. While challenges remain regarding regulation of AI live-streaming and concerns over hidden marketing practices, the pace of progress shows no signs of slowing.
Why has China experienced such remarkable growth? What are the fundamental differences compared to Japan?
Although an increasing number of companies in Japan are entering e-commerce, this trend has not yet reached China’s explosive scale. Where lies this difference? The answer lies in the distinction between “consumer psychology” and “environment.”
The primary reason behind China’s support for live-streaming e-commerce is “the ability to inspect product quality in real time through interaction with the host.” Compared to Japan, Chinese consumers generally exhibit higher levels of distrust toward e-commerce that relies solely on text and images. This distrust is resolved by the unique interactivity inherent in live performances.
Conversely, Japanese consumers have high trust in delivery services and product quality. They typically do not watch live streams with the mindset of “I won’t buy unless I can check quality in real time.”
Chinese consumers are highly sensitive to “exclusive deals” and “limited-time discounts” in live streams, yet they are not opposed to the “joy of impulse buying.”
In contrast, Japanese consumers tend to carefully compare specifications and reviews before purchasing, making it difficult to make decisions based solely on interaction with a host. Japan ranks among the most conservative consumer markets in the world—youthful consumers, too, act with greater caution when shopping.
The difference between China and Japan also lies in the immediacy of payment and logistics infrastructure.
In China, one-click payments are fully implemented—users can complete purchases in just one second simply by clicking on the screen. Combined with advanced and efficient logistics networks, deliveries are often completed within days, forming a vast, seamless ecosystem.
By comparison, Japanese users must first click through from the live-stream interface to an e-commerce website and then proceed step-by-step through the purchase process… Due to potentially long delivery times—sometimes spanning several days or more—purchase enthusiasm tends to be lower than in China.
The future global trend is cross-border e-commerce.
Matured Chinese models are rapidly entering global markets.
1. Rapid emergence in Southeast Asia: In Southeast Asia—a region with a large youth population—localized live-streaming platforms adopting the Chinese model are accelerating their rollout.
2. Exploring “entertainment-based e-commerce” in Europe and the U.S.: Companies like Amazon and YouTube are enhancing their capabilities, anticipating that Generation Z will shift toward “social commerce.”
3. Standardization of cross-border e-commerce: With advances in AI translation and international logistics, cross-border live-streaming commerce is making it increasingly common for handmade crafts from Japanese artisans to reach overseas customers directly via live broadcasts—from workshop to sale.
Japanese companies are building the “next-generation shopping experience.”
The Chinese case demonstrates that live-streaming e-commerce is not merely real-time sales—it represents a “next-generation purchasing experience integrating data, entertainment, trust, payments, and logistics.”
Today, consumers place great importance on brand values and “to whom they are buying.” For Japanese enterprises to achieve future success, it’s not enough to pursue one-time sales. Instead, they must leverage live streaming to communicate directly with customers, cultivate fans, and focus on “building relationships.” As markets expand, long-term strategic planning becomes indispensable.
Original article: toutiao.com/article/1868199261529163/
Disclaimer: The views expressed in this article are those of the author(s) alone.