- Jan 28, 2022
STREAMING COMMERCE COMBINES TWO OF OUR FAVOURITE THINGS: ENTERTAINMENT AND SHOPPING
The live shopping industry is booming in China, set to rake in a colossal $480 billion in China this year. Although the US has a lot of catching up to do, the industry is set to generate $11 billion in comparison.
There is plenty of scope for this to change, however; platform giants, Facebook, TikTok, Amazon, Twitter and even Pinterest are pushing streaming commerce solutions hard!
But what is the appeal of live stream shopping?
Social media platforms have become an entertainment hub with the average user spending 2 hours and 27 minutes a day or more on platforms alone. This figure is still set to increase with game changing new eComm advancements such as metaverse malls and NFT social platforms like Discord. Realistically, people are bored and spend a considerable amount of time online looking for mental stimulation of socials both at home and at work. So unsurprisingly, the daily scroll has become a key part of human routine.
A customer could be scrolling through Instagram and see a notification from one of their favourite brands telling them to head to their eComm ASAP to shop a latest drop. This time sensitive call to action drives the intrigued customer to the site to shop the hottest products within a limited time frame. The thrill of the exclusive, real time live shopping experience pushes the consumer to make an impulse purchase.
You can imagine that fashion and beauty products are popular across these live shopping channels, but fitness, homeware, tech and even DIY have proved to be hot commodities for streaming commerce consumers.
What makes these shows popular isn't just shopping alone. Rather, it’s the entertainment, the fun, the interest, and the engagement that an interesting and passionate influencer brings to a space. The instinct to buy is secondary to the content. If the content is attractive to the viewer, then they could be compelled to purchase.
Just three years ago streaming commerce was almost nonexistent in the west, and was a small corner of commerce, just 3.5% of all retail e-commerce, in China.
In 2021 it was a $300 billion segment in China at just under 12% of retail sales. In 2023, eMarketer estimates it will be 19.4% and worth over $600 billion. And if we look towards the U.S, the live shopping industry will grow to reach to $25 billion by 2023. It is safe to say that live shoppable video technology will become more familiar to a range of audiences in the West with the capacity to become the new norm.
Live Shopping: Micro Trend or Timeless Classic?
For those worried about live streams ability to stick around, they only need to look to multi-national companies like Google (YouTube), Amazon Live, Meta (Facebook and Instagram) and TikTok to see confident and heavy investment in shoppable video technology.
These solutions are modernising what we have seen previously with QVC. The goal is no longer just to sell, but to achieve a social connection and sense of community with viewers. This personable approach has redefined the "customer" from a sales target to a human being.
But it is not just about gigantic corporations as impressive, competitive tech start-ups are emerging from the wood work. Interactive video platforms like Smartzer and NETWRK are transforming brands ability to sell online with shoppable video technology. Huge house-hold name brands like Chanel, Levi's, Samsung and more are entering the space to reach even more qualified audiences.
Elma Beganovich says that with streaming commerce:
“You’ve now basically opened yourself up to a whole lot of consumers that otherwise wouldn’t have considered you or given you more than two seconds of their time,” she says “The type of customers ... that are driven to these live streams ... they’re ready to ... give you a chunk of their time.”
With the digital world growing at an excitingly fast rate, it takes some imagination to envision how shoppable video technologies will look in ten years. However, right now, the future looks bright for live shopping and could become as normal to us as scrolling on social media.
Updated: Jan 12, 2022
With 2022 upon us, we take a look back at the most inspiring and compelling pieces of shoppable content from 2021.
2021 was a whirlwind year for many brands. The pandemic has caused many to rethink their video content marketing strategies to reach as many customers online as possible. As a result, it is not surprising that new and improved video technologies have emerged with the industry continuing to expand exponentially.
Interactive and shoppable formats have been a life saver for many. Interactive content grips the attention of the customer, allowing them to play a role in the content and often personalise their experience. Social shopping solutions like live stream shopping have connected brands and customers over the internet in real-time, reflecting the benefits of in-person shopping via a screen.
These fantastic shoppable video technologies have been welcomed by brands to allow them to reach out to a new digital hungry customer.
The following examples prove exactly why shoppable video is the format of the future:
1. JD SPORTS X SMARTZER: STAR STUDDED SHOPPABLE VIDEO FOR XMAS
JD Sports' Christmas video featured some of the biggest UK names of the moment including Aitch, KSI, Maya Jama, Little Simz and more. Viewers could shop their favourite celebrities look by clicking video hotspots to reveal direct links to the products. This revolutionary technology elevated an already incredibly dynamic video to be even more immersive and inclusive for JD Sports customers.
With Christmas fast approaching, JD Sports harnessed new shoppable video software to make shopping more exciting, entertaining and simplified. With direct links to products, interactive videos save users the time of researching and hunting down specific products that they have seen their favourite influencers wear.
2. SAMSUNG X SMARTZER: SHOPPABLE LIVE STREAM EVENTS
With the live stream shopping trend taking off in China, the craze is beginning to catch on across the globe. In fact, by 2023, the industry is set to be worth over $25 billion worldwide.
Samsung Central America is taking advantage of this rapidly growing technology to use Smartzer's interactive video platform for several live shop shows. So far, the brand has produced three exclusive live events to sell discounted tech products to thousands of viewers.
With live shopping formats on the rise, Samsung is successfully pioneering the new technology with regular events featuring exclusive discounts. Social Ecommerce successfully bridges the gap between the offline and online shopping experience by creating a real-time "hybrid" format. As a result, customers can engage with brands closely from the comfort of their homes, providing a social shoppable solution during the global pandemic.
3. JACQUEMUS X SMARTZER: REVOLUTIONISING RUNWAYS WITH SHOPPABLE VIDEO
Fashion giant, Jacquemus, created the most elegant and eye catching fashion show of the summer featuring top models like Kendal Jenner, Bella Hadid, Adut Akech and more. The collection echoed natural forms and tones while adding in aspects of striking colour.
The brand used Smartzer's interactive video platform to take their show to the next level by making it shoppable. Viewers could stream the show and click to add items to their basket to pre-order. This 'See Now, Buy Now' method of shopping proved to be extremely effective at charging impulse sales while creating a mesmerisingly entertaining experience for consumers.
Using the magic of video interactivity, Jacquemus and Smartzer produced a ground breaking shoppable video experience for viewers. Customers could play a role in the content by clicking to choose their size and adding the item to their bag to buy. This engaging element has the potential to boost revenue through the roof.
4. SWAROVSKI X SMARTZER: BRIGHT AND BOLD GLAM ELEVATED BY SHOPPABLE CONTENT
Swarovski's engagement rate soared thanks to Smartzer's video hotspot technology . The brand created an immersive and dynamic shoppable video campaign for their "Collection II" campaign jam packed with glitz and glam. Featuring key models of the moment, Lourdes Leon and Adwoa Aboah the video featured on the brands eCommerce.
Viewers were instantly pulled in by the bright, eye catching content and compelled by the interactive, clickable elements supported by shoppability. Not only could they find out information about specific pieces, but they could select a size and add them straight into their basket encouraging customers to take immediate action to purchase. In fact, MAGNA research indicates that people spend almost 50% more time engaging with interactive videos, and shoppable videos boost up purchase intent ninefold.
Will you follow Swarovski's example?
5. LEVI'S X SMARTZER: FIND YOUR STYLE VIA SHOPPABLE LIVE STREAM
Levi's Holland combined the convincing power of influencer marketing with conversion driving shoppable live streams to deliver an informative and engaging styling tutorial. The brand created a social shopping experience by encouraging viewers to comment and ask questions. The brand then posted answers as well as exclusive discount codes in the chat for viewers to take advantage of. Clicking on product tags revealed product information with direct links to buy.
Currently only one in 10 US consumers have purchased from a live stream, this is set to jump to one in four within six years predicts Accenture. As a result, businesses should follow brands like Levi's to take on new challenges and adapt to an exciting, revolutionary new selling technology.
We can't wait to see what 2022 holds!
Updated: Jan 19, 2022
Streaming commerce has only taken 5 years to take off in China, with live stream sales set to reach 423 billion dollars in 2022. So what could be next for the rest of the world?
The product categories most often showcased in live commerce are apparel and fashion, with a 36 percent share, followed by beauty products and food, with roughly 7 percent each (Exhibit 2). Consumer electronics account for some 5 percent, and furnishing and home decor for almost 4 percent.
In terms of demographics, Generation Z and millennials dominate, although live commerce is starting to attract middle-aged and more-senior consumers. By March 2020, live commerce was used by 265 million people—almost 30 percent of Chinese Internet users. Taobao remains the world’s biggest player, with a market share of 35 percent.
This movement has not gone unnoticed by Western countries. Huge brands like Levi's, Walmart, Samsung and Chanel have started to try out live stream shopping formats.
Baby steps towards streaming commerce in the US, UK and Europe
Major social media platforms are honing their own in-house platforms. Walmart took to TikTok to trial their first shoppable live stream in December 2020. The event netted seven times more viewers than expected and enabled it to add 25 percent to its TikTok follower base. TikTok's live shopping solution is currently only available to certain brands in the US, but this is gradually being implemented globally.
In a recent survey by Influencer Marketing Factory, with 1,000 U.S respondents, ages 16-54 and a focus on Gen-Z and Millennials, it was found that :
82% of responders have discovered a product on social media and purchased it directly on their phone
57% have purchased something during a livestream shopping event and 39% strongly agree that they like to discover new products during live shopping events.
42% strongly agree that they prefer to check out directly on a social media app (instead of a third-party website)
Specialist high-tech start-ups have consequently also emerged onto the playing field. This includes NTWRK an exclusive platform for the hottest street wear brands to talk about limited edition drops and sell them to invite only audiences. As well as Smartzer, an interactive video platform that allows a variety of brands to host their own shoppable streams that give viewers the opportunity to make purchases from popups, chat to hosts. Chanel, Samsung and Levi are the latest to take the plunge with innovative new tech.
It is clear that consumer demand is building: a recent survey performed by Facebook found that almost a quarter of adults outside China would like to discover new products via a live stream featuring an influencer or brand representative.
As U.S. media shifts towards business models outside of advertising (commerce, tipping, subscription), live streaming becomes a more interesting and revenue-generating segment. In addition, with more commerce and entertainment consumption shifting online due to the Covid-19 pandemic, familiarity with streaming and viewership has followed.
It seems that what was old is new again as brands set to destigmatize live selling by moving away from overwhelming and dated QVC style approaches towards more casual, consumer focussed ways of selling via streams.