Douyin, livestream shopping, and the art of creator monetisation
The Medici fostered artistic genius in 15th-century Florence. What will drive the digital Renaissance?
In China, I observed the livestream shopping phenomenon with cautious fascination.
It was a force of nature.
The line between entertainment and commerce has never been more blurred, and creators are the forge masters crafting this new economy.
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Hello lovely humans, welcome back to my corner of the internet. I revisited China for the first time since 2020, including the three cities most significant to my childhood.
China has experienced tremendous change, and it was a privilege to return as a 1.5th-gen immigrant - bilingual enough to enjoy the integrated systems, absorb ground-zero perspectives, and reflect with measured poise.
Since the dawn of social media, we've experienced transformations in how we discover, consume, and share content. Snapchat birthed ephemeral sharing. Instagram perfected visual storytelling. Yet it is TikTok’s sister company Douyin that has pushed the boundaries of creator commercialisation - where social media is no longer just a stage, but a storefront.
This is not a passing trend.
Since I wrote 'Creation, curation, and the future of work', the challenge for the flourishing creator economy has not been the lack of artistry or the dearth of audiences, but the often-unsolved commerce piece. It's well and good to captivate an audience, but how do you convert engagement into meaningful revenue?
To that end, Douyin has built an ecosystem like no other.
Happy reading,
The art of creator monetisation
Let us revisit history: for every Renaissance masterpiece, there was a commission1; for every hit album, a promotional tour. Art and commerce have long been intertwined, and the creator economy is no different. However, the digital age has allowed creators to monetise in innovative ways.
Livestream shopping is a prime example. Personable content and direct product access has created an ecosystem where products are not just presented, but performed. This ‘shoppertainment’ marries the familiar appeals of e-commerce with the explosive growth of digital personalities.
In China, influencers have already leveraged this to astonishing figures:
US$13.7 million in goods sold by Zheng Xiangxiang on Douyin in seven days despite not showing any item for more than three seconds.
US$1.9 billion in goods sold by ‘Lipstick Brother’ Li Jiaqi on the more mature Alibaba Taobao in a single 12-hour stream nearing 250 million views.
Individual brilliance. Flowers of a blooming ecology.
Douyin made it make sense for its key participants. Let’s take a look at how.
The incentive structure
For viewers - everyday users
For creators - influencers and key opinion leaders
For merchants - brands, stores, and distributors
For platforms - Douyin, TikTok
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For viewers
It has become increasingly common for product discovery to take place via social media instead of a search engine. What’s remarkable in China is the creator density.
There seem to always be people on livestream. For any product you might be after.
Incentives and commercial drivers
Discovery, entertainment, and social engagement
Livestreams offer engaging content, demonstrations, and interactive experiences which foster a sense of community.
Viewers rely on trusted creators for advice and recommendations.
Discounts and exclusive deals
Many creators offer special promotions during their livestreams. This creates a sense of excitement and urgency, often leading to impulse purchases.
Convenience
Purchases are made in-app. Same-day delivery is common due to population density and extensive warehousing and distribution networks country-wide.
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For creators
Creators are impulsors with conviction. Having unfiltered income directly correlated to one’s ability to weave an engaging story is alluring, and success makes you not only a tastemaker, but a direct line to sales.
Incentives and commercial drivers
Monetisation
Creators monetise through commissions, brand deals, gifts and donations.
Virtual gifts from viewers (redeemable for cash) totalled US$7 billion, exceeding comparables from other social media platforms.
Personal brand building
Creators leverage Douyin’s reach to build themselves up as trusted influencers.
Their increased follower base and brand recognition help them boost product awareness and purchase intent, further amplifying monetisation capabilities.
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For merchants
Successful DTC2 channels can make or break businesses, and livestream shopping provides a marketing avenue that not only introduces products but actively sells them with low-friction transactions.
Incentives and commercial drivers
Increased sales and brand engagement
Merchants can sell directly to large engaged audiences through influencer partnerships and brand accounts.
Building relationships with customers through interactive live sessions fosters greater brand engagement.
Real-time data and insights
Gain valuable insights into customer preferences and purchase behaviour through live analytics and audience engagement.
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For platforms
Platforms capture value through transaction fees as well as proprietary data. Higher user engagement leads to more behavioural data for personalisation algorithms.
Incentives and commercial drivers
Transaction fees
Platforms earn fees on each sale generated through livestreams.
User engagement and retention
Livestreams maintain eyeballs on the platform, boosting overall engagement metrics. This drives further revenue from brands and advertisers.
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The Douyin playbook is proven in China. What about other markets?
TikTok and the glocalisation of livestream shopping
Glocalisation involves adapting global products to fit the local preferences, culture, and regulations of a specific region. This is crucial for TikTok’s success in new markets vastly different from Douyin’s in China.
The glocalisation challenge for Australia is structural. Unlike China where dense populations and efficient delivery networks support the livestream shopping flywheel, Australia's vast geography and lower market density may threaten ubiquity.
I’m excited to see how TikTok approaches livestream shopping in different markets as it seeks to craft an enduring identity in the new age of social commerce.
Contemplations for the digital Renaissance
Social commerce, in the full vibrant sense of turning creativity and attention into income, feels inevitable. The digital agora is bustling, and never before have so many had the opportunity to stand centre stage.
The playbook of the digital creator looks very different to that of the traditional artist, musician, or writer. It is as much about psychology and engagement as it is about raw creative horsepower. The platforms that understand this nature and provide the most dynamic environments for it to flourish may become the new Medici of the digital Renaissance. And just as the Medici fostered genius in 15th-century Florence, so too may these modern enablers unlock the full potential of tomorrow’s creators.
Welcome to the new age - there are so many masterpieces yet to be made.
Afterword
I am excited to observe the world and delve into ideas that move me. Unclear writing is a symptom of unclear thinking, and I hope my desire to write may energise you as we continue on our own paths to clarity.
I feel blessed and sometimes burdened with agency. To have agency - to be able to dream and gather the means to get there - is a privilege not to be carried lightly.
For if this is the future we are building, what would you build?
Until next time,
During the Renaissance, wealthy families such as the Medici commissioned artists to create, providing financial support which allowed artists to focus on their craft. This patronage system played a crucial role in the flourishing of artistic talent, fostering the careers of renowned artists like Leonardo da Vinci, Michelangelo, and Raphael.
Direct-to-consumer.