As China's live-streaming e-commerce sector enters its next phase, domestic competition has intensified while growth bottlenecks become increasingly apparent. With diminishing traffic dividends, top influencers and MCN agencies that once thrived are now setting their sights on overseas markets. Xinxuan International, founded by Xinba (China's "King of Live Commerce" on Kuaishou), has joined this overseas expansion wave, targeting TikTok as its primary platform. This move represents not just one company's strategic transformation, but the entire industry's search for breakthroughs.
Xinxuan International's TikTok Strategy: From "Bringing In" to "Going Out"
Following in the footsteps of industry leaders like Sanzhiyang, Yaowang, and Jiaoyou Pengyou, Xinxuan International's entry adds new dynamics to the overseas competition. Reports indicate the company has submitted an application to open a TikTok advertising account, signaling the imminent overseas expansion of Xinba's e-commerce empire.
Founded in 2017 by Xinyou Zhi (Xinba), Xinxuan Group has grown into a leading live commerce enterprise with over 4,000 employees. The company has built a comprehensive C2M supply chain system connecting global brands, manufacturers, and industrial clusters. Its influencer cultivation program has developed a robust talent pipeline, boasting a network of influencers with over 800 million combined followers, including more than a dozen top performers with single-session sales exceeding 100 million yuan.
Xinxuan launched its overseas expansion plan in 2023, choosing Thailand as its first stop. A May 2023 livestream event in Thailand achieved remarkable results with 830 million yuan in sales and over 6.78 million orders. Initially focused on importing overseas products to China, the company has since shifted strategy toward developing overseas markets directly.
Zhu Xiaojin, Vice President of Xinxuan Group, explained the two-phase approach: first bringing quality overseas products to China, then exporting Chinese products globally. Thailand marked just the beginning, with plans to expand across Southeast Asia, South America, Latin America, the EU, and Africa. The company's vision is to "make the world fall in love with China's new national trends" through its global digital supply chain network.
In July 2024, Thailand's Deputy Minister of Commerce visited Xinxuan Group, discussing cooperation opportunities in e-commerce and supply chain between the two countries. This high-level engagement provides valuable policy support for Xinxuan's international ambitions.
MCN Agencies' Overseas Push: A Strategic Imperative
The fierce competition in China's live commerce market has forced MCN agencies to look abroad. Market saturation, product homogenization, and price wars have squeezed profit margins across the industry. Data shows slowing growth across key metrics: transaction volume growth dropped from 227.7% in 2019 to 48.21% in 2022, while user growth peaked at 48.8% in 2020 before declining. Per capita annual spending growth similarly slowed from 497.74% in 2019 to about 17.03% in 2023.
Industry analysts suggest these trends indicate the end of the sector's early boom period, requiring players to explore new growth avenues in overseas markets. Several leading agencies have already taken the plunge, including Sanzhiyang Group, which established its overseas MCN arm Three Sheep Network in July 2023.
Three Sheep Network adopted a different approach from Xinxuan, focusing immediately on exporting Chinese products. The company partnered with Singaporean influencers for its first overseas livestream in January 2024, featuring both Chinese national brands and its private label products. With teams already deployed across Southeast Asia, Sanzhiyang plans to establish a U.S. subsidiary by September 2024.
Opportunities and Challenges in Overseas Markets
Despite significant challenges, overseas markets present substantial opportunities for Chinese MCN agencies. The vast user base and untapped consumption potential in markets with less developed live commerce ecosystems offer chances to gain first-mover advantages.
Southeast Asia remains the preferred initial destination, though even this relatively small market shows promising growth potential. While the North American market presents uncertainties, global demand overall remains strong.
However, cultural differences, language barriers, regulatory compliance, and increasing local competition all pose significant hurdles to successful overseas expansion.
Xinxuan International's TikTok move exemplifies Chinese live commerce companies' accelerating globalization. For MCN agencies, going overseas has evolved from an option to a necessity. The future of live commerce will increasingly play out on global stages as companies seek new growth opportunities beyond China's borders.