The Chinese retail giants pioneered a strong new approach: combining an online Livestream broadcast and entertainment with e-commerce, allowing people to watch, enjoy, and purchase simultaneously. Live commerce swiftly established itself as a sales fixture—and, more generally, as a trustworthy digital tool for increasing consumer engagement and sales.
Live commerce mixes the immediate purchase of highlighted goods with audience engagement. In less than five years, live commerce in China has changed the retail business and established itself as a key sales channel. According to a 2020 poll, two-thirds of Chinese consumers purchased things via Livestream shopping. While merchants in the West are still lagging behind China in the quest for live commerce, early adopters are beginning to make considerable purchases.
It remains to be seen how this new channel will evolve. It is evident, however, that it has great long-term potential for both businesses and e-commerce platforms. If China’s experience is any indication, our study suggests that live-commerce-initiated sales might account for 10 to 20% of total e-commerce by 2026.
‘Shoppertainment’: An interactive shopping experience
Brands, especially start-ups, have created an ingeniously crafted immersive shopping experience that delivers the best of both worlds to one screen by combining e-commerce with video content. The ‘shoppertainment’ factor has captured the interest of both brands and customers. Companies must guarantee that customers are engaged with the video content while without sacrificing the purchasing experience, which may be a difficult issue.
Media-tech businesses that specialize in juggling ensure that both sides blend flawlessly. These live-streaming shopping platforms, which operate as aggregators, bring the ‘shoppertainment’ aspect to life.
Without a doubt, video-based commerce has taken centre stage, and businesses are rushing to build a combination of content and commerce through shoppable videos. Consumer expectations are rising as technology advances, and they are continuously on the hunt for superior experiences that give fast results. Brands that can smoothly connect the two areas and provide customers with an engaged and flawless purchasing experience will rule the future.
What is the value created by live commerce?
Live Shopping can mainly assist brands, retailers, and marketplaces in two ways:
Conversion is being accelerated. Livestream Commerce is engaging and absorbing, which keeps people watching for a longer period. It also narrows the client decision-making path from awareness to purchase. To create a feeling of urgency, time-limited strategies such as one-time discounts might be employed. Companies claim conversion rates of up to 30%, which is up to 10 times greater than in traditional e-commerce.
Improving brand uniqueness and attractiveness. When done correctly, Live Shopping boosts a brand’s attractiveness and individuality while also attracting extra online visitors. It has the potential to improve current customer relationships while also attracting new ones, particularly young people who are interested in novel shopping forms and experiences.
A fast-expanding canal
In China, Livestream commerce has expanded quickly, taking less than five years to emerge into an innovative sales channel with a 10% projected penetration. The product categories most often included in Livestream commerce are clothes and fashion (36%), followed by beauty items and food (about 7% each). Consumer gadgets account for almost 5%, while furnishings and home décor account for about 4%.
In terms of demographics, Generation Z and millennials reign supreme, while Live Shopping is beginning to attract middle-aged and older customers. By March 2021, 265 million people—nearly 30% of Chinese Internet users—were using live shopping platforms.
Following in the footsteps of China, Western companies, merchants, and retailers are increasingly adopting live commerce platforms to sell and advertise their goods, particularly in the beauty and fashion industries.
Meanwhile, customer demand is growing: according to a recent poll, about a quarter of individuals outside of China would prefer to learn about new items via a Livestream featuring an influencer or brand representative.
While Live Shopping is still a new channel with many unknowns, certain best practices are developing, and e-commerce lessons are proving useful. Brands will need to take a deliberate approach to understand how to leverage the medium i.e., live shopping platform.
What Sets Video Shopping Apart From Other Sales Channels?
It reduces expenses.
Companies may use video commerce to display their items to an audience for very minimal expense – there is no requirement for a physical shop.
Without the need for travel or other costs, the expert just displays the product to the consumer and sells it to them.
Since the COVID-19 limitations, this has grown more acceptable to a broader audience when travel is either impossible or undesirable.
According to statistics, viewers are more engaged with the content they see in real-time and, as a result, are more willing to invest emotionally and financially in a business. A Survey identified 84 percent of people would buy a product after seeing a brand’s video
56 per cent of customers say a company’s website should have video content.
Customers may look to video commerce for their commercial and social demands since it combines knowledge and fun.
Customers are taught why they need a product by demonstrating a product in real-time, while also being entertained by the brand, which removes the sensation of professionals attempting to convince or sell a product.
Video shopping is a fun and successful technique to convert consumers and build an emotional connection between consumers and a brand. Since COVID-19, consumers have had an insatiable need to engage with a brand; Live commerce in the USA enables businesses to maintain and establish these vital connections with both current and new customers engagingly and straightforwardly.
Video Shopping in the Future
Before the arrival of Live commerce in the USA and other countries, there was a hole in online purchasing. Live commerce fills the hole by providing personalized, direct, and efficient product and service recommendations.
When businesses can contact their consumers face to face, a foundation of trust is formed. In retail, this link is critical.
Since the pandemic’s limits, e-commerce has had to adjust to its clients’ expectations.
The internet velocity of shopping has increased tenfold, and the engagement online is almost identical to what you would receive in person. Contact Channelize.io, the all-in-one live-streaming shopping platform for your company, at [email protected] to incorporate this entertaining success wand into your business.