Do you remember those days when teleshopping was a huge thing? When everything from gadgets to clothes to jewellery was sold (with much hype!) on television? Well, it’s coming back in a whole new avatar – Live Commerce! With Influencer Marketing transforming shopping trends worldwide, almost every big player is ready for this innovative and futuristic version. A huge hit in China, Live Commerce takes the best elements of Social Media Marketing and combines it with eCommerce.
Digital citizens like Gen Z might not be familiar with the concept of teleshopping, and that’s why we feel Live Commerce might be particularly intriguing for them. Brands must, therefore, get ready to embrace the newest avatar of Influencer Marketing. So here’s everything you need to know – what is Live Commerce, why it works, and which big platforms are already doing it.
Simply put, Live Commerce allows users to interact with social media influencers and shop for the product — all during the live session itself! Click To Tweet
What is Live Commerce?
In Live Commerce, the host or influencer can interact with a potential buyer in real-time. Once the influencer has explained and reviewed the product, their audience gets an option to place an order during the livestream, thus combining the best elements of social media, influencer marketing, and eCommerce. Simply put, Live Commerce allows users to interact with social media influencers and shop for the product – all during the live session itself!
Live Commerce in China
Live commerce has been an absolute rage in China. With the arrival of Alibaba’s Taobao Live in 2016, marketing and commerce became almost instant. Live commerce became the future of sales and marketing combined. And this was further propelled by the lockdown restrictions that were implemented. People inside their homes had plenty of time to discover social media and, subsequently, the joy of shopping on it. As a result, presales of Single’s Day – one of the major shopping events in China – generated an astounding $7.5 billion in total transaction value. Validating this further, a Chinese Beauty influencer, Austin Li Jiaqi, once sold 15000 lipsticks in just 5 minutes – all because of livestreaming eCommerce.
Chinese Beauty influencer, Austin Li Jiaqi, once sold 15000 lipsticks in just 5 minutes — all because of livestreaming eCommerce. Click To Tweet
Why is Live Commerce working?
Brands have always leveraged the power of social media personalities to sell their product. And the rise of influencer marketing was based primarily on brands trying to collaborate with influencers to sell their products, either directly or indirectly. This has inevitably led us to this ‘futuristic’ retail concept where the audience can live shop while the influencers advertise. How interesting that live shopping, as a concept, has its roots in the past!
Live commerce has been successful because of one major factor – the powerful connection it establishes with the consumer, the very same connection that has been at the foundation of influencer marketing. Taking it a notch further and interacting with the influencer in real-time will help the audience get personalized attention, ultimately driving them to purchase the product.
Live commerce has been successful because of one major factor — the powerful connection it establishes with the consumer, the very same connection that has been at the foundation of influencer marketing. Click To Tweet
This new way of shopping also aims to solve some major pain points for brands. It makes the wait time between marketing and sales almost negligible, thereby increasing conversions. It also authenticates your brand for the newest generation of customers, Gen Z, who are known to open their hearts to genuine influencers.
Platforms that are interested in Live Commerce:
Following the trend in China, eCommerce platforms like Amazon and social media platforms like Instagram and Facebook have already started working on their versions for Live Commerce. Let us have a basic understanding of these platforms and their vision.
Amazon gives its influencers a way to livestream their videos and engage with buyers using live promotion and chat features. With the Amazon Influencer Program, influencers can reach more audiences, showcase the products better, and earn commission from Amazon.
Google has also jumped on the bandwagon. Its latest project, Google Shoploop, is a mobile video shopping platform that is designed to introduce customers to new products in under 90 seconds. An optimal purchase right now includes the users viewing a product advertisement by an influencer on social media, heading over to YouTube to check out the demo, and then to an eCommerce site like Amazon to place the order. Google Shoploop plans to combine these three steps in one.
Google has also jumped on the bandwagon. Its latest project, Google Shoploop, is a mobile video shopping platform that is designed to introduce customers to new products in under 90 seconds. Click To Tweet
Instagram Live Shopping feature allows influencers to sell a product during a live interactive session with the audience. With Live Shopping on Instagram, influencers can educate their audience with reviews and demos, showcase a new product and even collaborate with other creators.
Facebook has also started its Live Shopping series in the US. Hosted as an event, these Live Shopping sessions will include feed announcements and a dedicated Facebook Shop tab to schedule shopping events. Users who follow a brand will be notified of its participation in the event.
Adopting the massive ongoing trend in China, social media platforms in the US and the rest of the world are aiming to introduce Live Commerce to their audience. Click To Tweet
Is Live Commerce the future of eCommerce and Influencer Marketing?
Marketing and sales, as we know, are two different business lines aiming for one single purpose – product consumption. However, Live Commerce has made them complementary. The leads generated from marketing are instantly converted, resulting in real-time purchases by consumers. And it works wonders. Adopting the massive ongoing trend in China, social media platforms in the US and the rest of the world are aiming to introduce Live Commerce to their audience.
As India’s eCommerce booms, it paves the way for Live commerce. Already a rage in diverse markets like China, India’s Live Commerce is estimated to reach $4-5 billion by 2025. eCommerce platforms, D2C brands, and social media platforms are all getting ready to embrace the new wave of marketing. Big brands like Amazon, Google, Facebook and others like Flipkart, Myntra, and BYJU’s have started targeting young customers and using celebrities to promote this new shopping technique. And though it is in its earliest stage in India, Live Commerce is set to take the industry by a storm.
Brands need to be cautious with the new generation of consumers. They have a knack for short-format content and are known to be in sync with influencers who actually care about them. Therefore, it is essential to give your marketing a personal touch. Live Commerce does all that. It validates your brand and provides users with a personalized shopping experience with influencers. With big players already picking up on Live Commerce, it is safe to say that the next big thing has arrived.