JD.com in 1b yuan cash push to drive video content
Chinese e-commerce giant JD.com said it will offer 1 billion yuan (HK$1.08 billion) in cash incentives to drive video content on its platform, as live-stream shopping becomes mainstream in the mainland market.
Qualified influencers across 20 subject areas, including electronic devices, household goods, fashion, skincare and car accessories, can receive up to 30,000 yuan as a weekly bonus, according to a company statement issued yesterday.
The creators, who either posted videos reviewing products or conducted live-streaming sessions to sell them, would also receive “more exposure” for their content, JD.com said.
The firm has set aside 5 million yuan as incentives for multichannel networks, the agencies that help influencers grow and monetise their social media presence, providing them with cash bonuses on a monthly basis as long as they deliver a certain number of creators to the platform.
The decision comes as video-based shopping grows more popular in China. Last year, 71.2 per cent of Chinese netizens bought goods when they watched short videos or live-streamed content, compared with 42.7 per cent in 2022, according to a recent report by the China Netcasting Services Association.
JD.com first rolled out a live shopping service in 2016, seven months after pioneer Taobao, the online marketplace of Alibaba Group Holding, launched the feature in April. It was not until two years later that short-video giants Douyin, the Chinese version of TikTok owned by ByteDance, and Kuaishou added shopping to their video content. Alibaba owns the Post.
But unlike other apps, JD.com failed to cultivate any star influencers.
The company said yesterday it was “actively preparing to incubate the top creators” and planned to announce the 100 best-performing ones by the end of the year.
Star creators can act as flagship talent to help spur sales on platforms. For example, Taobao is known for Austin Li Jiaqi, dubbed the “Lipstick King”, while Douyin and Kuaishou have their own big names.