"Despite the popularity of livestreaming sessions, the product return rate is two to three times higher than the brands' official e-commerce purchase ," said Bob Wang, vice president, strategy, social and customer relationship management, at Ogilvy in Shanghai.
Businesses in China have had to adapt quickly. Barcelona-based skincare brand Isdin shifted an offline promotional event in March to a livestream session with internet personality Li Jiaqi and Chinese rapper, Lil Ghost. The company said nearly 15 million tuned in, compared to a few hundred that an in-person event might draw.
In some instances, the host was unable to sell the prepared inventory, or the stock ran out, said Gao Huan, a senior director focused on retail and manufacturing at consulting firm Alvarez & Marsal in Beijing. "It's just really hard to predict."I don't think a lot of people have established a business model to calculate a for this one," she said.
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