Live streaming is more than just a social media trend today as it has actively forayed into the retail sector. It is a powerful way for brands and retailers to establish and reinforce their relationships with customers as it enables them to showcase their brand persona, even at times when physical retail experience is a challenge and customer shopping habits are changing.
As per Meticulous Research, the live streaming market is expected to reach US $ 4.26 billion, growing at a CAGR of 22.4 per cent during the forecast period of 2021 to 2028. Better brand engagement and reach to consumers, the surging popularity of e-sports and video games, growing preference for live streaming over social posts and increasing adoption of smartphones coupled with faster internet are all leading to its rising popularity.
A number of merchants already use online shopping platforms like Taobao and Tmall to live stream their products to thousands of viewers around the world on a daily basis. Also, influencer marketing is playing a huge role in bringing live stream shopping to consumers. Influencers, through live videos, are bringing various products to life, and therefore, the technology is fast gaining momentum in fashion retail.
Live streaming boosts online sales
One way of getting started with the technology is by collaborating with an expertise in the field. Sweden-based Bambuser, founded in 2007, is the world’s leading live video shopping SaaS provider with best-in-class solutions. The company is helping retailers boost their online sales through the interactive technology. The Bambuser live streaming allows live chats like interacting with customers in real time, answering their questions, including them in conversations and co-creating content. During a live show, viewers can explore products and add to their carts without leaving the stream. The actual check out will take place in the native cart of the retailer. For example, if a customer is watching a live shopping event and likes an item, he has to simply click on the item and it will be instantly placed in the cart on the retailer’s site. To complete the purchase, the customer will proceed to check out exactly like it would be if he had been browsing a regular e-commerce website.
The other solution that the company offers is one-to-one live streaming for a personalised shopping experience. It allows brands and retailers to tailor the shopping experience for customers by connecting them with sales representatives or store personnel. The personalised experience can help in better understanding the customer needs, and accordingly, decide product display and product comparison, motivating the customers to purchase the product. It’s a hassle-free process and customers are not required to login or download apps. The solution also helps in gathering the customer data and managing the customer queues and pre-booked meeting. The Bambuser live streaming shopping technology promises a 6.2 X increase in engagement rate, 4.7 per cent increase in add-to-cart rate and a 2.9 X average visitor’s duration.
“While the current circumstances might have forced many retailers to reinvent themselves, I strongly believe we are witnessing an evolution and this technology will soon become a norm. Live video shopping is opening up for any retailer, based anywhere and with any expertise or exclusivity to reach people from all over the world and offer something that had previously been closed and limited. That democratisation will have a lasting halo effect for brands and the retail industry at large,” said Sophie Abrahamsson, Chief Commercial Officer, Bambuser.
This technology makes it super easy for customers to stay connected with the brand’s identity and recognise it in their comfort zone as it allows the brand narrative. The customers are not required to install any additional application since the technology is integrated into the existing website.
“All signs show that adoption will keep accelerating, and I’m firmly convinced that a year from now, this is how people will shop online. If someone would invent e-commerce today, it would mirror our digital behaviour, and we live and breathe live video online today. Why would anyone shop from a static webpage if you can interact and experience products in an interactive live video context!” asserted Sophie.
Unscreen is an all-in-one video monetisation platform that helps create, support and scale one’s video and content business. The key functionalities of live streaming that it provides are live chats, countdowns to live stream, automatic recording, monetising one’s live stream through pay-per-view paywall. Kaltura provides live and on-demand video solutions for organisations around the world. It primarily connect teams with their advanced platform for any meeting type and size. Through its video hub, one can create and distribute meeting recordings, VOD content and live events.
Amazon is investing majorly in Amazon Live. Google has live shopping available on YouTube. Pinterest announced a livestream shopping project late last year. Twitter which is into a monetisation overdrive, is working on livestream shopping. Facebook is investing, particularly, on Instagram.
How live stream benefits shoppers?
Live stream, as a medium of shopping, is more social and interactive which translates to better understanding of product attributes by the consumer. Moreover, there is a trust factor associated, as live stream allows shoppers to get closer to products and hear someone describe what a product feels, looks or smells like. This allows shoppers to experience the product through the person on the screen. It’s also a fun and entertaining form of shopping where customers can see people talking about their experience while demonstrating the product. This immediately creates an interest and confidence in the product to purchase.
Countries leading in live stream shopping
A recent survey conducted in Poland, Spain, France and the UK found that 40 per cent of consumers are inclined to buy electronics during livestream on e-commerce sites or apps. Another 34 per cent shoppers said that they would be interested in fashion shopping via social media live streaming.
According to Statista, China, however, seems to be dominating the demand statistics. From 20.9 billion yuan in 2017, the gross merchandise value (GMV) of e-commerce from live streaming in China amounted to 1,237.9 billion yuan in 2020 and is estimated to maintain its rapid growth to surpass 4.9 trillion yuan in 2023.
In the US, it is predicted that by 2024, the e-commerce revenue created from online live shopping will increase threefold reaching US $ 35 billion.
Live stream as a trend started in China and the rest of Southeast Asia but now it is becoming increasingly popular in Europe. The consumers there are watching more and more live shopping events to get inspired to buy some clothes and other fashion items. In 2022, it is forecasted that over half-a-billion people in Europe are likely to shop on the internet.
