In delicate China play, Reckitt turns to livestreaming to sell condoms
By Richa Naidu and Casey Hall
LONDON/SHANGHAI (Reuters) — Durex-owner Reckitt is hoping that Chinese consumers' penchant for livestream shopping will also extend to purchases of condoms, but the company will have to toe a «delicate line» as it looks to grow its slice of the $5-billion-plus condom market.
The hype around livestreaming, which has become a major driving force of an e-commerce boom that has been sweeping China since the beginning of the COVID-19 pandemic, could help the British consumer goods group in its quest to drive growth in the world's second-biggest economy.
Livestreaming generated sales of $238 billion in 2022 in China. That is estimated to rise to over $300 billion by 2025, according to research firm eMarketer.
Reckitt has already tasted success liveselling household products in China, but condoms might prove a harder sell as Chinese regulators closely monitor sex-related content online — without always clearly spelling out what exactly crosses the line.
«There is no clear definition of what vulgar content is — that's up to the regulator to decide and the system is quite socially conservative,» said Kendra Schaefer, head of tech policy at China-focused research firm Trivium.
«So how do you talk about sexual health without tripping the 'vulgar' issue? It's a delicate line to walk.»
The upside for Reckitt, however, is compelling given the multi-billion dollar size of the market for condoms. The China Business Research Institute has tipped China’s condom sales will hit $5.2 billion in 2024, with market leader Durex boasting a 40% market share as of 2020, according to Daxue Consulting.
On Wednesday, Reckitt reported a 1.2% year-on-year decline in fourth-quarter like-for-like net revenue, and a 7%
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