Livestream shopping has exploded in popularity over the last few years. What started as a niche trend in China has now become a global phenomenon that every brand should pay attention to.
What is Livestream Shopping and Why is it Taking Off?
Livestream shopping refers to real-time video broadcasts where the host promotes and sells products to an engaged audience. It blends the interactivity of live video with the convenience of ecommerce.
While live video is nothing new, several factors have led to the rapid rise of livestream shopping:
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The power of video commerce – Brands have realized that video content leads to higher conversion rates compared to static images. Live video takes this a step further with real-time engagement.
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The influencer effect – Influencers have massive sway with their audiences. Their product recommendations, reviews and endorsements help drive sales.
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Social and mobile ubiquity – Apps like Facebook, Instagram and TikTok make it easy to go live. And with smartphone penetration at an all-time high, it‘s easier than ever to shop on these platforms.
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Advances in ecommerce integration and payment – Many platforms now allow brands to add purchase links, product catalogs and payment gateways to their live videos. This makes the path from discovery to purchase quicker than ever.
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COVID-driven digital acceleration – The pandemic has led more retailers to focus on digital channels. Livestream shopping helps recreate the in-store browsing experience.
As a result, the livestream shopping market is projected to reach $25 billion in the US alone by 2023.
How Does Livestream Shopping Work?
The livestream shopping process involves a few key steps:
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Set up: The brand or influencer host creates a live video and adds ecommerce features like:
- Product catalog
- Shopping cart
- Payment integration
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Promote: The upcoming livestream is marketed across social media, email lists, etc. This builds anticipation among the target audience.
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Go Live: During the broadcast, the host showcases and recommends products while engaging with viewers through real-time chat and comments.
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Checkout: As products get featured, viewers can easily tap to add them to their cart and checkout within the video player itself.
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Analyze: Once the stream ends, the host reviews key metrics like views, add-to-carts, purchases and engagement analytics. These insights help enhance future streams.
Now let‘s explore the different components that make livestream shopping work.
Key Elements of a Livestream Shopping Strategy
Building an effective and profitable livestream shopping strategy involves getting four elements right:
1. Choosing the Right Platform
The platform sets the foundation for your campaigns. Some key considerations for picking a platform include:
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Audience reach: Platforms like Facebook and TikTok have over a billion monthly active users. This gives you access to a large viewer pool. Compare monthly active users across platforms to determine reach.
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Core demographics: Analyze which platform draws your target customer demographic – is it Gen Z on TikTok or millennials on Instagram? Align with platforms where you can best resonate with buyers.
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Ecommerce capabilities: Assess built-in ecommerce support for things like in-video checkout and shoppable product tags or stickers. For example, TikTok allows creators to link out to external sites while Facebook Shops is more embedded.
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Creator tools: Review analytics and engagement features that give creators visibility into stream performance and help optimize future broadcasts.
Some top platforms for livestream shopping include:
- Facebook and Instagram Live
- TikTok Shop and LIVE
- YouTube Live Shopping
- Amazon Live
- Dedicated live commerce apps like Popshop Live and Talkshoplive
Conduct test streams on different platforms to determine what works best for your brand before expanding efforts.
2. Producing Engaging Video Content
The live video itself is the hero of your campaigns. Some tips for creating shoppable streams that convert:
- Showcase products attractively from multiple angles so viewers understand what they‘re getting
- Zoom into key details like fabric, stitching, print designs, etc. to showcase quality
- Speak enthusiastically about product benefits to get viewers excited
- Create scarcity and urgency with limited-time offers or low stock alerts
- Give exclusive previews of upcoming collections to generate buzz
Also invest in professional lighting, cameras and software to ensure high video quality.
3. Leveraging Influencers and Celebrities
Partnering with influencers or celebrities allows you to tap into their follower base. Some tips when sourcing influencer talent:
- Analyze audience demographics and content style for fit
- Assess engagement metrics like views, comments and past conversion rates
- Agree upon branded content guidelines and product discounts or affiliate terms upfront
Micro and nano-influencers are also worth exploring for niche audiences.
4. Promoting Your Livestreams
Give your streams the pre and post launch promotion they deserve.
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Tease the event in the days leading up to broadcast across your social media channels through videos, posts and stories.
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Advertise on the platform through paid promotion tools. For example, you can run video views or traffic campaigns on TikTok and Instagram to get streams in front of new users.
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Retarget engaged viewers post-stream through ads and email/SMS campaigns inviting them to complete their purchases.
Key Livestream Shopping Trends and Statistics
Now that we‘ve covered the building blocks, let‘s analyze some revealing livestream shopping trends shaping the industry:
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400% YoY growth: The US livestream shopping market hit $6 billion in 2021, a 400% jump over 2020 due to the pandemic.
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Projected to hit $25B by 2023: Livestream ecommerce is projected to become a $25 billion market in the next two years as adoption accelerates.
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2X higher conversion rate: Research by Instagram found live video shopping converts 2X better than feeds and stories.
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100M Amazon Live monthly viewers: Amazon Live viewership jumped from 5M pre-pandemic viewers to over 100M monthly.
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45M TikTok Live users: An estimated 45 million US TikTok users engaged with shoppable livestreams last year showing the demographic‘s buying power.
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6X higher engagement: One report found live video generates 6X higher engagement than static images
These statistics signal that livestream shopping is here to stay. Brands that embrace it early can gain an edge over competitors.
Developing Your Livestream Shopping Strategy
Here is a step-by-step guide to planning your entry into livestream commerce:
1. Set Objectives and KPIs
Like any marketing effort, start by defining your livestream shopping goals and key performance indicators. Do you want to:
- Generate awareness for a new collection launch?
- Increase sales of stagnant products?
- Tap into a younger demographic?
- Reduce returns by showcasing product details better?
Common KPIs to track include live views, comments, add-to-cart rates, purchases and more. These metrics allow you to calculate ROI and optimize future streams.
2. PickIdeal Products
Carefully curate what products you showcase based on factors like:
- Past bestsellers ripe for a sales boost
- High-consideration items needing demos
- New arrivals that need some buzz
- Limited edition products to induce FOMO
Avoid items with a lot of variants like shoe sizes since it‘s hard to showcase all the options.
3. Source The Right Hosts
As discussed earlier, partnering with relevant influencers provides a shortcut to a ready audience.
For direct brand streams, train enthusiastic employees to host. Ensure they‘re comfortable on camera and well-versed in product details.
4. Promote Streams
Market upcoming streams to cold audiences through platforms‘ native advertising tools and to existing buyers via email and social media.
Promotions also continue post-stream to re-engage viewers who missed out initially or need a final nudge.
5. Optimize and Evolve
Analyze metrics post-stream to determine what worked and what needs refinement – from host style to products featured.
Keep testing new stream formats and features as they emerge. For example, shoppable live audio rooms are an evolution worth exploring.
Key Challenges Brands Face with Livestream Shopping
While livestream shopping unlocks invaluable growth potential, it also brings some unique challenges including:
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Internal buy-in: Getting key executives to commit budget and resources towards an unproven channel
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Influencer pricing: As demand for influencers grows, rates for branded partnerships can climb steeply
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Technical complexity: From software to equipment, powering professional streams requires some tech sophistication
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Data and payments: Integrating sales and stream analytics across social platforms remains a blindspot
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Fulfillment demands: Managing order fulfillment and returns for live sales spikes takes preparation
However, brands willing to be first-movers stand to gain loyalty and mindshare as consumers get more comfortable buying through shoppable livestreams in the coming years.
Ready to Ride the Livestream Shopping Wave?
As online shopping behavior evolves, retailers must adapt their strategies to engage digitally-native buyers. Livestream shopping represents the future of social commerce – blending entertainment with transactions.
Now that you understand its explosive growth, the keys to executing effective campaigns and the role livestreams can play in your ecommerce strategy, you‘re primed to tap into its potential!
The brands that embrace this trend early and often will be perfectly positioned to capitalize as livestream shopping expands from a trend into a必須have channel.
