Updated: Jan 21, 2022
A recent trip to the Luxury Innovation Awards in Geneva further cemented the need for luxury brands to be actively implementing digitally-forward marketing strategies. Luxury shoppers are looking for innovative ways to explore and discover products whilst shopping; listen up, brands!
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The new generation of digital natives
According to the Business of Fashion, Millennials & Gen Z are expected to account for 45% of total luxury goods sales by 2025, and will represent a 130% growth opportunity. These younger consumers have brought new requirements to the luxury market, forcing brands to adapt their traditional luxury values to cater to evolving expectations. Brands are having to rethink every aspect of their approach to luxury; from Gucci’s pricing strategy with their £170 iPhone cases, to Chanel Beauty offering exclusive live shopping events, to Balmain’s new collaboration with Netflix where consumers can buy directly from a tv show as they watch.
Younger consumers have different expectations of brands; though the in-store retail experience will always be important, digitally-led experiences are becoming more and more crucial to the success of luxury labels. They are not afraid of new technologies, but in fact they crave them, they want the newest and best shopping experiences- which is further solidified by the pandemic and inability to go in store and have the luxury treatment.
The rise of social media over the past decade and the omnipresence of digital experiences at the tip of our fingers has meant that millennials and Gen-Z not only want these experiences, but expect them, making them ‘digital natives’. If brands want to capitalise on the most lucrative generations, they must evolve their strategies to include some form of interactive digitalisation both in store and online.
The ultimate digital experience; live shopping
The pressure is on for brands to be offering their consumers the best digital experience possible, meaning that their e-commerce sites have become an extremely crucial part of the ecosystem. There are a number of ways that brands can evolve their offering and picking the right strategy that balances brand image, innovation and ever-changing customer needs is key to building and sustaining success.
Live shopping is fast becoming one of the most sought after forms of digital commerce; it offers customers the next best thing to going in store and trying products on. Brands are able to bring their high priced items to life like never before, by integrating styling advice, designer storytelling, influencers or even store personnel. Brands can get as creative or experimental as they want, all they need is an iPhone, a host, and shoppable tech (like Smartzer) to allow customers to add to cart from within the live stream.
Luxury shoppers are 3x more likely to want live streaming shopping opportunities, Instagram lives aren’t cutting it anymore. They want to be able to shop from within the live stream without having to a) leave the stream b) have to search for each item individually on the website. Live shopping allows customers to shop seamlessly without interruption, but also provides a source of entertainment and community building. More recently, luxury brands have been hosting exclusive invite-only live shopping events for VIP customers to further enhance the personal experience online.
Embracing the new vs honouring tradition
Some brands have been cautious about venturing into e-commerce because they fear it doesn't fit consumer expectations for a high-end shopping experience, and the same goes for shoppable formats. However the shifts in consumer behaviour, from every demographic not just younger shoppers, shows that digital experiences and entertainment are not just successful, but they are in demand. It is key to point out that with the correct tech solutions, brands can completely customise the shopping experience to suit their image and also needs of their customers.
The live shopping experience does not have to emulate the chaotic energy that became popular in the East, and it also doesn’t have to be overly commercial or polished, it can be whatever the brand wants it to be. Brands can also test and trial different formats to see what works best, it is not a one size fits all strategy and they need to commit to it- rather than doing one-offs which will never gain traction and adoption, it's a process that needs to be invested in.
A number of brands fear that by implementing modern technology into their purchase funnel that they will lose sight of the heritage and tradition that made them globally renowned labels, however live shopping is a fantastic way of storytelling and injecting a human feel into a brand. Designers can be invited to talk through the inspiration behind a collection, jewellers can discuss how exactly a piece was made, founders can talk about pressing matters such as sustainability. Shoppable formats bring brands closer to their customers, which is crucial to connecting with existing customers and unlocking future generations.
If you would like to learn more about Smartzer, book in a demo here!
Despite the global pandemic, holiday sales rose by 8.3% in 2020, according to the National Retail Federation (NRF), the world’s largest retail trade association. This includes a 23.9% increase in online and non-store sales.
Thanks to rapid technological advancements and the global pandemic, holiday shoppers have already shifted their purchasing habits. As a result, online shopping is as popular as it has ever been.
In a world where information is at every shopper’s fingertips, video is a powerful tool to spread brand awareness.
Adding video to the holiday marketing strategy is a great way to engage holiday shoppers. Here are several reasons to keep in mind:
There are 74% of users who purchased a product or service right after watching an explainer video.
92% of mobile video consumers watch videos with their network of friends on social media, a good indication to spread brand awareness in a short amount of time.
There are a lot of mobile consumers that love videos since 51% of all videos are played on mobile devices, and that number continues to grow.
In order to catch the attention of holiday shoppers, brands need to create a well-placed video that will hook them just in time for the holidays. Leveraging video content will create memorable interactions with brands and holiday shoppers. Video will also help brands hype their holiday promotions, making holiday shoppers more excited to launch their holiday products and sales.
TIP 1: Reach holiday shoppers as they browse their feed by inspiring action with video.
Video content has evolved into more than just a tool for entertainment. It has become a tool that holiday shoppers seek to learn, seek, and inspire their gift purchases. While holiday shoppers watch videos on their social feed, make sure that the brand’s video content is compelling enough to convert passive browsing to active shopping. To encourage clicks and conversions, make the brand’s video ads a holiday window shopping tool when they see your product ads.
TIP 2: Engage customers as they research holiday gifts with interactive video ads.
Holiday shoppers tend to do research first before buying products online. They compare prices, look for sales, and check out the latest reviews. Today, video ads are more than just an awareness channel for holiday promotions. Brands can make interactive video ads by adding direct response elements in their video ads.
TIP 3: Covert holiday shoppers looking to purchase with interactive shoppable videos for a frictionless shopping experience.
Customers value a frictionless online shopping experience for the holidays. They want to buy a product online as soon as they have decided to buy it. Reach holiday shoppers more effectively with shoppable videos. Brands can also try adding video personalisation to shoppable video ads. It will help holiday shoppers have a unique holiday shopping experience.
Digital video is no longer simply an awareness channel. During the holiday season, more brands will look to make static video ads interactive by adding direct response elements to videos. Advances in rich media and video hotspot technology are making it easier to create interactive video campaigns while platforms like YouTube continue to enhance shopability on videos. Brands are making similar moves as well: Swarovski harnessed Smartzer's video hotspot technology to create an immersive and dynamic shoppable video campaign for their "Collection II".
"Historically a lot of people have thought about video ads as a very top of the funnel approach to create awareness, but in 2018 a shoppable video ad can also be used as a direct response tactic," said Adam Aslatei, vice president of marketing at Jun Group. "We need to widen our approach to video because in today's day and age, an interactive video campaign can literally lead to a purchase."
- Oct 29, 2021
Samsung has partnered with Smartzer's interactive video platform to deliver a series of exclusive live stream shopping 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 CA 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 successfully produced two live events to sell discounted tech products to thousands of viewers.
Execution:
Smartzer's shoppable video software enabled Samsung to create a real-time, interactive event. Viewers could click featured product popups to discover product information like pricing, colour options and description and then add the item to their cart to check out.
A chat bar enabled viewers to interact with the brand by asking questions and making comments. This provided a sociable element to online shopping. Viewers could also browse all the featured products via a bottom carousel. After the stream, the end screen displayed all the featured products in a final carousel for the customers to shop one more time.
After the stream, Samsung could export their live recording and repurpose it as on-demand content for those who may have missed the original event.
Results:
Samsung's shoppable live stream events are drawing thousands of viewers from across Central America. Smartzer's interactive video platform helped the tech giant to create an event that resulted in the following:
Clickable featured product popups displaying as the items appear onscreen
Browsable bottom carousel featuring all of the products in the stream
Product popups with pricing info, product name, description, colour options and add to cart cta
Comment/chat bar for viewers to communicate with the brand
Nickname function so commenters can give themselves a name before commenting
Realtime reaction heart button, allowing users to show a love heart emoji
End screen carousel with all the featured products
Live stream recording export functionality to allow the brand to repurpose the stream as on demand content, complete with shoppable functionality, comments and likes.
Conclusion:
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.