MCN in China
 
MCN stands for Multi-Channel-Network. In China its definition can be different compare to that in US. It combines Professional-Generated Content (PGC) with the strong support of capital ensures the continuous output of content, so as to realize the stable realization of business. Translated into vernacular, content creation has changed from a self-employed production mode to a large-scale, scientific and serial company production mode. 
 
There are many business models inside the MCN field. Whatever the way it is to generate income and make profit, good quality content and trust from fans will remain the core.
 
According to iiMedia Research, China's MCN market has expanded rapidly in recent years. Since 2020, the epidemic drove the online economy. The MCN market size has exceeded 20 billion yuan, and in 2021, it exceed 33 billion yuan. Its scale is expected to exceed 50 billion yuan in 2023.

 
With the popularity of online celebrity economy and the rapid development of short videos, live broadcasts and other forms, MCN dividends are still obvious, entrants are exploding, and live broadcasting content is diversified.
 
Why MCNs are welcomed by consumers?
 
Take live-streaming for an example. Live-streaming show makes purchasing experience into a combination of fun, interactive, and even educational one. It is a highly efficient method of shopping which empowers consumers to buy high-quality product at a reasonable price in a short span of time from someone they adore.
 
Regardless of audience size, live-streamers typically vet the quality of the products they promote leverage and enhance its trust based fans economy. People buying from a trusted live-streamer feel confident that they are getting a great product at a competitive price.

 
 
How can MCN work for brands
Professional-Generated Content attracts attention and traffic; gather consumers with similar taste into one online group. Advertising with commercial implant in the content produced by KOLs and influencers is more of a conventional way as the old-time TV commercials with which the highest rating programs charge a lot on a few seconds of in between or within shows.
 
More than that, a typical Chinese way of MCN working with brands is called live-streaming broadcasting sales. You may have heard of the former Live-streaming Queen named by Viya, who can sell everything from raw agricultural products to houses. Or the former Lipstick King Li Jiaqi who sold 15000 pieces of lipstick in 5 minutes as a regular show performance. They are now not in the show anymore which we will get into in another article.

These type of live-streaming hosts usually focus on certain type of products and brands that fit their original content. Only the very top tier ones can sell almost everything because their fan amount and influence power define their negotiation leverage to be at dominant place when selecting products and brands to sell in their live-streaming show. This can easily form a virtuous cycle, the cheaper the sales price, attracts more fans and more orders, gaining more bargaining power over suppliers, cheaper the price and boost more sales. To suppliers, the brands owners or dealers, this is a great way to boost sales and attentions, even though the front payment and enforcement fee eat up almost all profit. Yet the publicity influence can be huge. 
 
Moreover, with the influential level of the host becoming more and more well-known, juts a few minutes of promoting and introduction in their show can strongly upgrade the brand awareness for new comers to the market. Actually, there are several new brands were build successfully with exclusive work with KOLs and live-streaming hosts.
 
MCN trend in China, a forecast

 
User number increase: more than 70% of users have purchased on the short video / live platform, and more than 40% of users have recharged the platform members
 
Industry trend: MCN market keeps steady growth and talent demand keeps increasing
 
Policy support as a driving force
 
The rapid rise of Internet celebrity economy has played a prominent role in driving the regional economy, especially the impact of the epidemic on offline sales. China has issued relevant policies in many places to promote the rapid development of local online Internet celebrity economy industries.
 
 
Want to be a part of it? Contact us to get start.