Navigating Live Stream Commerce
In 2022, purchasing something on social media isn’t a revaluation, but it has grown at a rate where people need to take notice. It’s TV shopping but for the digital world! Livestream commerce has been a popular model in China since starting in 2017 and has gained popularity in the United States. According to Forbes, the live streaming market is likely to surpass $600 Billion in China and $25 billion in the United States by 2023, and these are figures businesses can’t afford to ignore.
According to Statista, as of April 2022, there are 5 billion internet users worldwide, 63 per cent of the population. 4.65 billion of which are social media users. In Australia, internet usage is forecast to exceed 23.3 million by 2025, and currently, 80 per cent of the population consumes social media, an increase of 22% since 2015. Below, we see an excerpt from a Hootsuite report stating that 58.4% of internet users have purchased a product or service online. The number of Australian consumers who made purchases through social media in 2020 amounted to 5.3 million, which is around 28 per cent of all internet users. Forecasts show the number of consumers in Australia who use social media for online shopping will increase up to 6.4 million by the year 2024.
Consumers in Australia who use social media for online shopping in the year 2020 with forecast to 2024.
Live-stream commerce has had considerable take up in the beauty world, with brands such as Sephora already taking to live-stream commerce, showcasing their latest collections and demonstrating beauty trends, all of which can be purchased during the session. Sales are an obvious benefit to the channel but more so the entertainment value derived from the sessions, they are the perfect moment to talk to your viewers, share insights and showcase personality, all of which help connect with the viewer and turn them into a customer.
According to Forbes, Amazon is investing in the channel in a big way; Google is already participating through YouTube, and Pinterest are jumping in, too, after their announcement in 2021. All reports point to this channel not just being a lockdown flash in the pan but one of the mainstays of the e-commerce world for years to come.
According to Sprout Social, these are the top social platforms customers will use to make online purchases during 2022.
Fashion is another sector that has taken to live-stream commerce, with companies such as Nordstrom and Bloomingdale’s getting in on the action. Nordstrom, in 2021 announced a dedicated live shopping channel taking content covered in blogs to the platform and showing collections by brand, occasion, and other speciality subjects.
Nordstrom’s upcoming live-stream shopping events.
Big names in the FMCG sector have also jumped on the livestream commerce bandwagon. KitKat, PepsiCo, and Walmart have been some of the fast-moving consumer goods brands that have implemented the channel into their e-commerce strategy. There are many important things to consider when looking at participating in live-stream commerce for your brand. The selection of the right host is vital as they will be the ambassadors of your brand. You may choose someone from inside your business, such as your marketing or sales department or engage with an identity or influencer who will bring their audience in. Be sure to choose the right fit, as a poorly matched host could damage brand reputation.
Next, you need to choose the right platform. Many platforms are throwing their hat in the ring regarding live-stream commerce, but you need to select one that best fits your brand, audience, and budget. Dedicated live shopping platforms like shopshops can be an effective platform for brands dipping their toes into the live-stream commerce world, but they can be limiting in terms of co-branding and data access. A dedicated section on your website can be an effective option for a more established brand. Although this will be at a higher cost, it can be replayed, and according to reports, an estimated 70% of sales can occur after the event. Thirdly, you can use paid media platforms such as Facebook, Pinterest, and Instagram to conduct your sessions.
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