First appearing in 2013 in China, live commerce has conquered more than 560 million Chinese Internet users. According to Huachuang Securities, in 2020, live shopping would have generated more than 15.9 billion dollars in sales in this Asian country and it is not about to stop. A projection made by Frost & Sullivan has indeed shown that the global turnover generated by live shopping should reach 413 billion dollars by 2022.
In view of these results, it is difficult not to be seduced by this new trend that has revolutionized the world of e-commerce. In addition, pushed by the confinement, several European brands have tried it. If there is no doubt about the future of live shopping in Asia, what about its future in the West?
Before getting to the heart of the matter, it is important to provide a little more detail on this phenomenon that has bewitched millions of Internet users.
You're probably familiar with teleshopping, that cult program from the 90s... The show is all about selling a product to encourage viewers to order. Live shopping is based on the same principles, but with a few innovative touches. The aim is to enable Internet users to instantly buy a product presented or tested in a live video. Unlike teleshopping, potential customers can interact live with the sales presenter or influencer throughout the live event. They have the opportunity to see the product's features live and ask various questions about the product. The live video can be broadcasted, among others, on social networks or directly via the official website of the brand or company.
A new fashion that brings a little freshness to the world of e-commerce and teleshopping.
The success of live shopping in Asia is not due to mere chance. Both entertaining and engaging, this concept offers Internet users an experience similar to in-store sales. Ability to see the product from all angles, to see a live test and above all to ask questions to the host... all the ingredients are there to guarantee a memorable customer experience. After the live test, the video can also be integrated into the product page so that Internet users can watch it in replay. This is one of the significant advantages of this type of format.
Moreover, when used tactfully, live commerce encourages impulse buying. We've all already watched a video of an influencer saying "I need this product". With this concept, Internet users can make a purchase in just a few clicks, almost instantaneously. In addition, they save time and are not subject to the constraints of going to the store. A real godsend for retailers.
With the advent of live shopping, the conquest of new markets is also easier. How is it easier? By calling on foreign influencers such as American and European firms like Lancôme, Louis Vuitton and Kim KardashianPerfumes, who have decided to collaborate with Chinese influencers in order to break into the Asian market.
On the marketing level, live commerce is an important lever to boost its notoriety and sales. No wonder more and more brands are choosing to embark on this new trend, including European firms.
The confinement at the beginning of 2020 has overcome the reluctance that French companies might have had to launch themselves into live commerce. The closure of physical stores has turned consumers' buying habits upside down, pushing brands to innovate.
Three inspiring examples of companies that have embarked on this adventure.
With 47 live shopping operations organised at the end of 2020, totalling 2.7 million views, the Fnac and Darty chains are certainly the most active on the subject of live shopping in France.
A live video in partnership with DIY enthusiast Renaud Bauer helped them increase sales by 270% in 48 hours. In addition, sales of the range doubled (+102%) between the period before and after live and visits to the product pages were multiplied by six on the day of release.
Showcasing a watercolor palette during their first live performance earned them a 211% increase in additions to the basket on this product.
Live shopping is undoubtedly still in the test phase in France. A somewhat timid start for some. Nevertheless, everything seems to indicate that it will be quickly adopted by French consumers. The figures speak for themselves, this new concept is a real strategic asset for retailers, an opportunity for them to bring a little freshness to their marketing strategy and to stand out from the competition. Used intelligently, live commerce can make the difference. So, are you ready to take up the challenge?