If you have enjoyed home shopping on TV before the internet, you must remember how the hosts promote products and encourage you to call a number to buy them. Livestream shopping brings the same concept to the digital world but encourages business customers to engage with the host directly. Customers who like the products can click on them on the live stream and purchase them immediately. Social media platforms encourage influencers to interact with the audience using easy-to-create live-streaming videos. Now, brands can also create and customize such live-streaming videos for their website or mobile apps to create a personal shopping experience for their customers.
Livestream shopping humanizes the process of engaging with customers in the digital world, builds credibility and trust, and leads to better conversion for the brand.
Moreover, customers love being able to interact with their favorite brand representatives in real-time, which makes this trend an entertaining, exciting, and profitable one.
Livestream Shopping – Market Statistics And Forecasts
The e-commerce industry has experienced tremendous growth since the COVID-19 pandemic. Internet users crave retail therapy, and live shopping delivers just that. China is the undisputed leader in the live shopping industry, showing the world how it’s done. The most popular live shopping Chinese platform is Taobao, owned by Alibaba. According to a McKinsey report, in just 3 years, China’s livestream shopping market has exploded from $3 billion to $171 billion.
Statista reports that livestream shopping has increased by 76% globally. Europe has experienced the highest growth with 86%, closely followed by the Middle East with 76%, and North America with 68%. By 2024, the livestream market in the US is expected to reach $35 billion, as reported by Retail Touchpoints. The Asia-Pacific region is projected to dominate the market in the future mainly due to the large population and smartphone use.
Vantage Market Research reported that the livestream shopping industry is expected to have a compound annual growth rate (CAGR) of 23.50%. By 2028, the live-streaming market, which stood at $988 million in 2021, is expected to reach $4.29 billion globally.
Livestream Shopping Use-Cases
Livestream shopping brings an in-store personalized shopping experience to the digital world. Brands can showcase the product and its features and also provide a direct link for your customers to purchase products directly from the live shopping videos.
Following are the key use-cases in live commerce:
Live Q&A Sessions
According to Hubspot, 82% of consumers want quick responses to their sales and marketing questions. You can host live Q&A videos on your e-commerce website and encourage customers to ask their questions.
E-commerce businesses that have already tested the waters can go big with omnichannel live-streaming. This can be done by streaming videos on multiple platforms such as YouTube, your own website, and social media by enabling viewers to share the livestream.
One-To-One Live Video Shopping
For luxury and high-ticket purchases, one-to-one live video shopping will give all the attention to your customer, who will be guided by an expert from your brand to choose the best products.
The most popular trend used by many e-commerce websites is influencer marketing. With this, your brand can approach an influencer to feature in live-stream shopping videos to encourage impulsive buying among the audience.
Virtual Reality Shopping
Many brands are experimenting with creating a metaverse – a virtual environment where shoppers can interact with friends and digital objects when they go on virtual shopping trips together. The famous Chinese platform Taobao enables shoppers to create their own avatars and go shopping together with their friends’ avatars in the virtual space.
Why Should E-commerce Businesses Create Livestream Shopping Videos?
E-commerce businesses can always benefit from business strategies that increase customer engagement. These advertisements should feature prominent personalities because shoppers will follow the advice of their favorite people. Livestream shopping attracts a huge audience and encourages two-way interactions, and brands can get popular personalities to endorse a few high-ticket products to boost sales.
Some of the benefits of live commerce for e-commerce businesses are:
The Magazine media survey showed that 66% of consumers want e-commerce stores to use digitally innovative shopping experiences. To up the interaction quotient, e-commerce businesses can bring their products closer to their customers with live-streaming videos on their websites. Traffic from multiple channels can be diverted to the website where the livestream shopping content is hosted. This provides a unified shopping experience and also increases website popularity. If you are running an e-commerce store, you should consider incorporating the livestream shopping marketing technique to increase your conversion rate by ten times.