1) I get asked all the time whether a business model that is hot in China would work else where in the world.

To which I answer - think about the enabling conditions in China both technical and non-technical and how much of that can be easily translated to a new group.

2) I’ll go through both livestreaming e-commerce and Community Group Buying (CGB) as examples.

Background to each can be found here:

https://lillianli.substack.com/p/livestreaming-monetisation-models

https://lillianli.substack.com/p/the-hottest-and-least-understood

3) live-streaming ecommerce’s enabling factors in China
- embedded payment system that allows checkout in 3 clicks while watching
- robust logistics chain for next day delivery and returns
- ecosystem of MCN who will cultivate talent

4) - general consumer preference for experiential based selling (distrust of goods being different from photos)

All of these attributes were in play before live-streaming - Alibaba and Wechat pay were already deeply integrated into commerce.
Delivery were also 24-36 hours max

5) A living MCN eco system had emerged from the days of Weibo (Chinese Twitter) and Red (Instagram equivalent)

Live-streaming e-commerce stood on the shoulders of giants and its rise should be seen as such.

6) When we turn to other countries, it’s not that I’m less bullish about its rise but I do expect it to be slower.

The enabling factors aren’t quite there yet.

Though this is also an opportunity - maybe startups should be thinking about how to sell the shovels here.

7) Potential ideas
- easy payment interfaces that embeds into livestreams and feels into different payment providers
- online livestreamer training academy, or MCNs
- delivery aggregation platform pivoted to fill this need

8) Community group buying enabling factors
- group of established chat group based entrepreneurs
- high living density
- cold supply chain capabilities
- embedded payment option

9) out of these the hardest to replicate easily is high living density since that is a matter of urban planning.

This is why a lot of online to offline services work well in densely populated developing countries and not sparsely populated developed countries

10) cold supply chains also don’t emerge overnight and is a big barrier for entry for most countries.

CGB is a variation on demand aggregation and distribution. But the basic fulfilment principles are not different. And should be understood as such

11) overall, don’t blindly Copy From China. There’s a lot of localisation factors needed. Though I do think they are good ideas.

It’s about working out what are the crucial enabling factors that don’t get as much attention