Live Commerce: streaming is changing the shopping experience?

In the 21st century, with the rapid development of technology, the way we shop has undergone some significant changes. Among them, the form of shoppingLive Commerce - Direct online shopping has drastically changed the way we "spend money". Join us to learn more about Live Commerce, to see why it is becoming an important factor inE Commerce - e-commerce and explore its prospects and challenges. Let's go!!!

1. Live Commerce: A Great Combination Between Online Shopping and Live Media

Live Commerce is the act of selling products online through live video as shoppers interact with the brand in real time. In Live Commerce, a host or salesperson makes a live product demonstration to a large online audience. Viewers can see products, ask questions, and even buy products instantly through direct integrations. Consumers can watch, talk and shop all from the comfort of their own home.

 

Cre: Giosg

2. Benefits of Live Commerce

Real-Time Interaction: Live Commerce brings real-time interaction between buyers and sellers. More than just viewing static images, Live Commerce forms let you see products in real-life situations.

Resolving Uncertainty: The ability to ask questions and receive immediate answers from sellers helps resolve the uncertainty of online shopping.

Create a Unique Shopping Experience: Live Commerce is more than just shopping; it also creates an entertaining experience. Viewers often have the opportunity to participate in live chats, challenges, and other product-related activities.

Increased Reliability: The physical presence of the sales person and seeing the product in real time creates greater trust with the shopper.

 

3. Live Commerce and the E-Commerce Revolution

This type of marketing on digital channels has changed consumer behavior, connecting users around the world. This new platform allows for more precise targeting and customization of each user's experience. 

Theo Forbes, live streaming for fashion, jewelry, beauty and skin care brands, modeled by influencers -marketing influencer. It creates more trust with customers and viewers. It allows them to gather more information about products, as well as discover new items they may not have considered before.

Rapid Growth

The appearance of Alibaba's Taobao Live in May 2016 marked the opening of a new chapter in the retail industry. The Chinese retail giant has pioneered a powerful new approach by linking live streams with e-commerce stores so consumers can watch, entertain and shop. instant.In China, Live Commerce has transformed the retail industry and become a major sales channel in less than 5 years. In a 2020 survey, ⅔ of Chinese consumers said they had purchased products via live streaming in the past year. Exactly how the method's growth will develop remains to be seen, but what's clear is that it has huge long-term potential for brands and e-commerce platforms. According to analysis byMckinsey shownthat sales from Live Commerce could account for 10-20% of all e-commerce industries by 2026.

 

 

Top 5 popular industries using Live Commerce in markets

Integration with Social Networks Breaks the Barriers Between the Real World and the Online World

Live Commerce is often integrated with social media platforms like Facebook, Instagram, and TikTok. This helps reach Target Audiences effectively and creates a multi-purpose experience that incorporates social media (social commerce) and entertainment in shopping (shoppertainment). This helps break down the barrier between the real world and the online world. Shoppers can see products in real time, and these experiences often increase brand awareness, driving better engagement and conversions.

 

cre: statista

 

Who is using live commerce

According to reviews fromMckinsey, The average age of frequent Live Commerce shoppers globally is 33 to 36 years old - with 25 to 34 year olds making up the largest proportion of frequent Live Commerce users. However, there are differences by market, for example users in the US are relatively evenly distributed across age groups, users in Europe and China tend to be slightly younger (between 18 and 34 years old). ), and users in Latin America focus on people between 25 and 44 years old.

Popular forms of Live Commerce

Currently, there are 3 most popular forms of Live Commerce:

• Live Commerce by theme: Sellers will livestream introducing products according to certain themes, such as fashion, beauty, home appliances, electronics...
• Live Commerce by event: Sellers will livestream introduce products during special events, such as promotions, discounts, double days, holidays of the year (September 9, October 10...)
• Live Commerce by individual: Sellers are influential individuals (KOLs, influencers) who will livestream introducing their products or those of other brands.

4. Challenges and Limitations of Live Commerce

While Live Commerce offers various benefits and can assist businesses in providing a better shopping experience, there are also its challenges and limitations that can have the opposite effect.

The business does not have an e-commerce website

To perform livestream your business needs to havewebsite e-commerce to create livestream sales and interact with users. The website is currently considered a representative identity card that provides business information for consumers to base and compare products on. The lack of a website will have a relative impact on the level of accessibility and business's ability to compete with its competitors. InDigitop AKA T.O.P Group, we can assist you in creating an e-commerce website with a custom design as desired.

Technical issues

An online live shopping session can attract thousands or even millions of viewers. This requires the system to handle large amounts of traffic effectively to avoid technical problems.Furthermore, the issue of broadcast latency and video quality when streaming live is paramount. Many platforms may not ensure the quality and timeliness of live broadcasts, resulting in unclear product presentation. As a result, customers will most likely have a negative online shopping experience and will reduce the likelihood of "closing a sale" live.

Main challenges consumers face when using online shopping in Europe in 2020 (cre: statista)

Potential risks of customers

Although many platforms offer Live Commerce services, security is still a potential threat. From a customer perspective, they may be concerned that online shopping platforms may not be able to protect their personal and financial information.

Although participating in livestream sessions can display product quality in real time, there are still quality problems if the product is intentionally swapped by the seller's quality and given false advertising. Therefore, in terms of product quality control in each livestream session, livestream service providers should also issue binding regulations with sellers to ensure that live broadcast products are genuine.

Customers may or may not participate in livestream sessions

Live Commerce - Live Stream can help you expand your industry's market, but this method doesn't always target the right people. For example, if your target market is the elderly, your brand may not be suitable for livestreaming. Despite the fact that the popularity of internet technology has spread to most age groups, the proportion of people over 65 years old still using smartphone devices or social networks is the lowest. So, accepting and adapting to new things is a challenge. Each class of consumers has its own benefits. Before choosing to shop in person, consider aspects such as number of users, user profile, and spending power.

5. The Potential of Live Commerce in the Future

Despite its challenges, Live Commerce has great future potential in creating stronger connections with customers and increasing sales.

The possibility of deep connection and entertainment

Live Commerce can help businesses create deep connections with customers. Viewers often have the opportunity to engage in live conversations with salespeople and receive first-hand advice. In addition to shopping, Live Commerce also integrates entertainment elements such as games and challenges. This can create an enjoyable experience for viewers.

Rich in video content, videos now tend to be more humorous and meaningful, “designed” to make consumers feel like they are getting a complete shopping and entertainment experience. more comprehensive than just a meticulously calculated sales pitch.

Niche development

Live Commerce is not just for fashion, cosmetics and electronics. It can also be applied to many different fields, from food to sports, health consulting, medicine and art.

Conclude

Live Commerce is not just a trend but a revolution in the world of e-commerce, bringing users a new, digitalized and unique form of shopping experience. This is also a way to connect and interact deeply between brands and customers. In the age of technology, it is changing the way we “spend money” and create shopping experiences.The Outstanding Shopping Experience”. Let's hope that in the next 2-3 years we can see more developments in this field in the future.

 

Hopefully some of the above shares can help those who are passionate about business and are learning to enter the "rosy" online market to have more perspectives on the term "Live Commerce". And don't forget if you have any questions, please contact us via email: hello@wearetopgroup.com.