A Multibillion-Dollar Industry
Within the last five years, China has seen a fast development of Live Video Shopping, which has evolved into an innovative sales channel with about 10% penetration. Between 2017 and 2020, the value of the Chinese live commerce market increased at a compound annual growth rate of more than 280 percent, reaching more than 171 billion USD last year. The COVID-19 epidemic has accelerated the growth, and it estimates that Chinese sales will exceed USD 423 billion by 2022.
In terms of product categories, apparel and fashion lead Live Video Shopping with a market share of over 35.6 per cent, followed by beauty and cosmetics at 7.6 per cent, fresh food at 7.4 per cent, consumer electronics at 4.6 percent, home decor and furnishing at 3.6 percent, and automobile and local online to offline sales such as experiences and tickets at 0.2 per cent.
When it comes to demography, millennials and Generation Z are unrivalled. Notably, Livestream shopping has begun to appeal to middle-aged and elderly customers.
Following in the footsteps of the Chinese, Western brands and businesses have begun to adopt Live online shopping to advertise their products. Since 2017, nations such as Thailand, South Korea, Russia, Sweden, Japan, and Singapore have been among the first to adopt the Live Shopping trend. It demonstrates that the West wholeheartedly supports Live streaming shopping.
Notably, several brands all across the globe have grown by leveraging live online shopping, brands usually host product launches, demos or offer limited-edition products that urges shoppers to buy now.
Meanwhile, consumer demand has been increasing. According to a recent study, almost a quarter of customers outside of China are searching for new goods to include in Live Shopping with a brand ambassador or influencer.
China and the United States Lead the Way in Live Streaming Shopping
Commercial elements have long been an important component of social networks in China, thus it is unsurprising that live stream shopping has been a popular trend there for some time. In 2019, 37% of all Chinese online consumers made live stream purchases, accounting for about 9% of total e-commerce market revenue. That’s a lot of money.
It comes as no surprise, especially when looking at, that live shopping is a part of daily life there. Convenience collides with the purchasing experience. We’ve seen it before.
Livestream shopping experience is a new, hands-on style of buying for shoppers in Germany.
The potential for innovation in live streaming shopping platforms is tremendous. Brands and retailers must embrace the trend and boost their online sales. Live streaming shopping will surely not go away when retail shops reopen.
Strategies for a successful Live Shopping Show
There are lot of strategies that can help you to boost your business with live streaming shopping in 2021, listing down some of these strategies:
- Launch your new product over live stream
- Provide exclusive behind the scene looks to your customers
- Host live Q&A sessions with customers
- Present a live demo of your new products
- Do live polls, offer discounts in real-time
Why is live video shopping expanding so rapidly?
Because it is highly interactive and social, Livestream shopping shows are comparable to product videos in the sense that they display product features up close. On product description pages, some merchants may even include Livestream footage as product videos. However, there is a significant distinction: live streams shows are highly interactive.
Because of the interaction, live streaming shopping is a very effective method to learn about goods while also getting questions addressed. It’s similar to going into a real store: the host may welcome you, inquire about the goods you wish to view, and even provide suggestions. Users may directly communicate with the host, or they can chat, which is recorded in the chat history for everyone in the session. The responses to one may be useful to others as well.
This element of Livestream e-commerce is especially attractive right now since many nations and areas are currently engulfed in the COVID-19 epidemic.
Channelize.io offers a reliable live streaming shopping platform that enables brands and retailers to reach more buyer audiences, generate sales and improve brand awareness. You can simply integrate our platform on your website or online shop. To know more, e-mail us at [email protected].