Maximizing sales: The art of short video creation in livestream e-commerce

Abstract

Livestream e-commerce has experienced significant growth in recent years. However, with the intensification of competition, the problem of inadequate exploration of consumer demands has become increasingly prominent and important, which puts key opinion leaders (KOLs) at a disadvantage when cooperating with brand-owners. To tackle this issue, many KOLs have begun using high-quality short videos to provide detailed product information, establish consumer trust, and sell products through live streaming, which is defined as the “short video  + livestream” marketing strategy. In this paper, we examine the added value of short video content for consumers and the resulting traffic revenue for KOLs. Furthermore, a game-theoretic model is developed to demonstrate the impact of the “short video  + livestream” marketing strategy on the selection of selling modes in livestream e-commerce. The results show that brand-owners and KOLs can benefit from either mode and achieve a mutually beneficial outcome under certain conditions. Moreover, we observe that the brand-owner can be better off in the agency selling mode when the commission rate is low, while the KOL’s preference shifts from the wholesale mode to the commission mode and then back to the wholesale mode with the commission rate increases. Finally, we further examine the value of the “short video  + livestream” marketing strategy for both the brand-owner and the KOL.