Self-reliance vs. Dependence: Optimal live streaming strategies selection for E-retailers at different developmental stages

Abstract

Numerous e-retailers have launched their own brand self-built live streaming room (BLSR) to tap into the thriving market of live streaming e-commerce. Concurrently, key opinion leader-based live streaming room (KLSR) has also emerged as a favored strategy among e-retailers due to their immediate and significant impact on sales. Our research identifies the e-retailer solely operating BLSR for self-promotion as Self-reliance strategy and introducing KLSR into their live sales promotion alongside BLSR as Dependence strategy, with a primary focus on examining how e-retailers with varying levels of live streaming ability effectively utilize these two strategies for live sales promotion. Interestingly, we find that: 1) during the initial stage of the e-retailer's foray into the live streaming e-commerce market, it is highly recommended for them to adopt full Dependence on ordinary key opinion leader (KOL) streamers; 2) as the e-retailer's live streaming ability improves into the growth stage, they should gradually transition towards employing Self-reliance on themselves; 3) at the mature stage, the e-retailer tend to gradually revert back to adopting partial Dependence on ordinary KOL streamers as their live streaming ability enhances; 4) at any stage, it is advisable for e-retailers to adopting Dependence on top KOL streamers if they can afford slotting fees.