It all makes sense when you look at the rise in streaming services and offline stores. Finally, we are seeing a shift in the way we shop.
The retail landscape has been forever transformed by the pandemic. It is now digital. As brick-and-mortar shops give way to eCommerce and retailers find themselves competing for customers’ attention in an ever more chaotic and crowded online marketplace,
How can you cut through the noise? Be more like streaming services.
The combination of storytelling and online shopping in “live shopping” or live streaming shopping makes for an immersive experience unlike any other. This is the ultimate combination of entertainment and utility.
Live shopping can revolutionize everything we know about sales and marketing.
Netflix meets retail — The Latest wave of excitement
Major retailers are also embracing social media platforms. TikTok has Walmart hosting live shopping events. Facebook’s live shopping Fridays feature brands ranging in price from Sephora to Abercrombie & Fitch.
Instagram’s Shopping section has a dedicated “Live” hub. It hosted a 10-day live shopping event along with Aveda and Peloton. Amazon launched Amazon Live.
Investors are also catching on. Many people now consider live shopping the next big thing in retail. raised $50 million from Kering and Goldman Sachs for NTWRK, a live-shopping video app that focuses exclusively on limited-edition merchandise.
PopShop Live raised $20 Million and $6 Million respectively. And Whatnot, a live-shopping startup, has reached a record-breaking valuation of $1.5 million.
We at tech agency Reaktor see how our experience with streaming services like Netflix has influenced how we work with clients in retail. These two areas are now more interconnected than ever and create fascinating synergies.
What does live shopping mean in practice?
It’s like a hyper-personalized QVC/HSN. Live shopping via social media and online allows brands to create highly personalized shopping events that are centered on particular interests. These events bring together brands and products from all over the globe, as well as celebrities and influencers.
It’s fun, engaging, and addictive for viewers. Live shopping, for those who grew up long before QVC became famous on cable TV, is the retail equivalent of Netflix and Twitch. Live shopping lets you tune in to an influencer, a celebrity, or just a random person and have a good time.
Live shopping is the next evolution in what it means to connect with a customer. It is a popular choice that fans return to often – not only when they are looking for information or to buy. Live shopping is a great way to build a deeper emotional connection with brands, products, and people.
Visiting an online store close to you
Live shopping is a common form of retail in China. Live shopping typically lasts around three hours. Special events can continue for up to 24 hours.
This is America’s future. The live shopping format generated $60 Billion in global sales in 2019, with China leading the charge. Only $1 billion of these transactions were made in the U.S.
Brands have no time to waste. Here are four reasons why it is smart for brands to be aware of what is happening in live shopping right now.
Here are four reasons why live shopping is the next big trend
1. eCommerce becomes more personal when you shop live.
Brands that lead with community, or lifestyle, – also known as mission-driven brands – must tell a story about what they sell. This will allow consumers to emotionally connect with the brand.
This is particularly important online. This is especially important online. It doesn’t have to be all about image galleries and streamlined checkout processes.
Ecommerce has a problem in that many brands use their online shops as merely purchase sites. It was thought that online shopping is merely a way to purchase products. Most eCommerce websites have been reduced to their essentials. It was designed to remove any distractions between users first visiting the site and closing their purchases.
The e-commerce pandemic has made it more difficult for retailers to do business online. Online stores should now be able to integrate and present a brand’s values and culture alongside product information. Ecommerce websites must tell compelling stories just like brand experiences.
Live shopping is the answer. Live shopping hosts, who are generally influencers, tell their stories, show their products, answer your questions, interact and take orders. A hosted demonstration of a product is shown from the host’s home or backyard. This gives you a glimpse into their lives and allows you to feel their personalities.
Trust and bonds aren’t just between the host and the consumer; they also exist between the brand being marketed and the consumer.
Brands that embrace live shopping have a stronger image than any glossy advertisement campaign. The events are live. There will be occasional blunders. Consumers will ultimately see brands as more human and approachable because of the informality of this format.
2. Live shopping taps into the influencer economy.
Live shopping events, based on the hosts, are an organic way for brands and influencers to tap into this megatrend. As we all know, consumers research products before purchasing them. They also seek information from third parties to ensure that they are safe. Influencer recommendations are a good way to spread word of mouth.
Live shopping allows brands to blend their objective view and personal voice transparently and efficiently. This format allows customers to shop with an expert in real-time while shopping.
Nothing is more infectious than hearing someone who loves the same things you do. It’s a connection that is instant between two enthusiasts. It’s a popular choice with consumers.
Brands can plan live shopping events easily by tapping into influencers via major social media channels. Many platforms offer live shopping. The technology and the audiences for live shopping are available on many platforms, including Facebook Pages and Instagram Live.
Brands can and should, over time, take control of this space by hosting live shopping events, both on their platforms and off-social media, as well as building their brand personality roster. This is the best way for brands to be long-lasting.
3. Shopping life is addictive.
Do you remember when shopping was exciting? You could spend a whole weekend in a mall just to look around and take pictures. Online shopping in its current form is not as enjoyable.
Marcus Johnson, host and presenter of eMarketer’s Behind the Numbers podcast, stated that he has never walked into a shop and thought, “Alright, where is the black item under $50 in a medium?”
Online shopping can often feel overwhelming due to the sheer number of products available. Ecommerce is limited to static images that engage the five senses. While receiving an actual item can be fun, the journey to get there can be long and exhausting.
The difference is that retailers no longer compete with the next-door store. They are now competing with everyone and everything online – music, movies, and gaming. Retail brands are now media brands. First, is it possible to grab users’ attention?
Then, can you keep it? As Netflix pointed out when they called sleep their biggest competitor, can your audience remain awake long enough for all the great content to be consumed? Or are they simply running out of time?
Live shopping allows consumers to go deeper than just promotion. Video conversations can be free-form and cover everything from education to selling, to the mission, and back. You can combine product and brand content.
The story behind a product’s creation is revealed to the consumer. It’s possible to experience the story in real-life situations. The hosts’ focus on creating and maintaining a compelling narrative makes it easy for consumers to stay tuned to the next episode.
The lifetime value of a customer is the key to a brand’s online success. It is costly to acquire customers, so it is important to increase order size and drive repeat purchases. It is also important to build a loyal fan base for your business’s survival.
Live shopping can transform brands into entertainment venues with built-in audiences. A great live shopping program can rival Ted Lassoes. Live shopping channels that are as addictive as Hulu have the potential to be as good, if not better, than Hulu.
4. Live shopping is FOMO.
Most brands aren’t in it for the products. Even the most innovative innovations are eventually copied by others and adopted by them. Live shopping events are essential for differentiation. Live shopping events are a chance to create something new and increase value.
For example, take limited-edition releases. Live shopping excels at managing scarcity. A limited number of sneakers, for example, and a short time to purchase them creates fear.
Shoppers are aware that others are watching them. This immediacy increases the likelihood of purchase regardless of its price.
Live shopping can be presented as a series, which creates the impression that it is a special opportunity for consumers to purchase. Dedicated events are a way to communicate that they demand their full attention and block out time on consumers’ calendars.
Consumers aren’t actively searching for better deals because there are no distractions or other retailers in the live shopping event mode. Instead, shoppers listen intently to the messages being broadcast.
In fact, by securing a time slot in your customers’ busy schedules, you can take that time away from streamers like Paramount Plus and games like Fortnite. Many other things consume consumers’ brain space today.
Live shopping events allow brands to explore new topics and product ideas in a more flexible and risk-free way. The format also allows them to interact with engaged audiences. Live shopping gives customers real-time feedback about what works and what doesn’t.
The internet’s globality means that even niche products can be made a bestseller by live shopping.
Live shopping is more than just shopping. You can find entertainment that will enchant, delight, and inform. There’s also the convenience of being able to tune in at will, access the storylines and influencers that interest them, they have their product shipped out to their doorstep in just a few days. It’s impossible to beat that.
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