The Hottest 2023 Retailer Trend: How Can You Implement It?
When experts forecasted Live Shopping as one of the top ecommerce trends of the future, many were doubtful of its longevity. But now, it’s past time you put aside your skepticism.
With a tremendous market value of USD 17 billion in 2022, Live Shopping is forecasted to nearly triple, amounting to USD 55 billion in 2026. Statista reports that China’s live commerce gross merchandise value (GMV) will account for almost a quarter of the country’s total online shopping GMV this year. McKinsey also estimates that live commerce sales will account for 20% of all ecommerce by 2026.
What is Live Shopping?
Also known as Live Commerce, Livestream Shopping, or Live Video Shopping, it is a strategy in which retailers broadcast their products through video and connect directly with online shoppers. Besides the vast audience reach, Live Shopping also promotes customer relationships, as online shoppers can interact, engage, and ask questions via video or live chat channels. They can also connect with their favorite influencers and add products to their shopping cart directly from the stream.
The Undeniable Benefits of Live Shopping
Since the COVID-19 pandemic, Live Shopping has been on an upward trend, with forecasts estimating the industry to be valued at USD 712 billion in China and USD 25 billion in the US by 2023. The strategy is flourishing, and you, as a retailer, can reap its meaty benefits:
- Product exclusivity – Selling certain products or one-off coupons only on live streams creates a sense of urgency.
- Accelerated conversion and greater user engagement – Its entertaining and immersive nature offers the engaging customer experience that consumers crave for on social channels.
- Increased brand appeal and distinctiveness – Incorporating innovative Live Shopping formats can result in additional web traffic.
Which Live Shopping Format Suits You?
Companies typically enlist a key opinion leader (KOL) to host the livestream event—introducing the product and interacting with viewers to boost sales. Various popular formats have emerged, each with unique benefits:
- Tutorials – Live makeup demonstrations, for instance, are quite effective to show viewers how to use a product and suggest ways to combine it with other products, creating cross-selling opportunities.
- Interviews – Talking to popular individuals or influencers in a relevant field can be more personal, authentic, and genuine, which helps raise more awareness and traffic drive compared to traditional product launches.
- “Behind-the-scenes” videos – Offer an inside look at a product or company, promoting brand identity and loyalty in a specific market. For instance, an ethical fashion retailer may showcase its sustainable supply chain to appeal to environmentally and socially conscious consumers.
Regardless of format, successful livestreams often incorporate interactive elements such as games, quizzes, and giveaways to keep the audience engaged and entertained. Not only do they ensure that the scripts are not overly focused on the product, but they also prioritize high production values in areas such as photography, location, lighting, and sound.
How Samsung’s ecommerce profit grew 4 times with VTEX Live Shopping
Samsung, the South Korean consumer electronics company, held its first Live Shopping session in 2022. Committed to a business philosophy that prides itself on creating high-quality products and services that contribute to a better global society, Samsung Chile chose the VTEX Live Shopping App to showcase the innovative nature that has distinguished the company since its beginnings.
The results seen during their 60-minute live shopping stream were exceptional. The event attracted more than 1,500 viewers, who generated more than 1,600 interactions and a 163% growth in orders compared to a normal online shopping day. This resulted in a nearly fourfold increase in the turnover rate.
With VTEX Live Shopping, any brand can unlock interactive business experiences and build stronger connections with customers to boost online sales. The product highlight feature allows shoppers to add items to their cart in real-time or even book a personal call while browsing through the product catalog. During the livestream, shoppers can also interact with the content to create new trends and share products.
Consumers are ready and, as far as we can tell, the sky’s the limit, so what’s your next business move?
How-to: Launch a VTEX Live Shopping Event
- Go to your store’s Admin, under Live Shopping, and click Events.
- Click New to schedule a new live shopping event on your website.
- Make sure you have filled out your Event Name, Site URL, and Product Catalog (Collection ID).
- In the events list, under Streaming Studio, click Access.
- To start livestreaming, click Go Live.
- To manage which products to feature during your livestream, click Events, and in Products within Collection, toggle the Action Button.
- Once finished, click Request Video to download your livestream so viewers can return to it later or watch it for the first time.
At VTEX, our one-to-one and one-to-many live commerce solutions have helped power live shopping for some of the world’s top brands, resulting in increased conversions and average ticket. Speak with our VTEX specialists today to see how we can help you take shopping to the next level!