Live commerce is a service that combines live video with the ability to interact with sellers and make an immediate purchase, whether it’s selling an actual product during the broadcast or exchanging opinions between participants. A live-commerce session is a popular “live” hosted by an entrepreneur, influencer, or individual.
The concept of live commerce originated in China, which should come as no surprise considering they have the world’s leading e-commerce market and their live streaming market exceeded one trillion yuan in 2020.
live commerce china
According to research by Statista, “in November 2019, China’s largest online retailer Alibaba announced sales of 20 billion yuan from its live streaming business during the Single’s Day Shopping Festival.”
Here in the West, when we think of live streaming, we think of Twitch, YouTube, and other forms of digital entertainment. In China, however, streaming list of croatia cell phone numbers is used as a shopping channel. Statista explains that “the number of live stream viewers in China was forecast to reach 526 million in 2020.”
Live trading has also made its way onto social media platforms in China, including Douyin (known internationally as Tik Tok).
Live commerce in times of pandemic
The number of brick-and-mortar stores in the UK was already falling before COVID hit, and combined with the pandemic, more stores closed last year 7 reasons why social media is important for your business than ever before – more than 17,500, according to The Guardian. The result has been a surge in online shopping and new trends – namely live commerce.
We are used to dealing with chatbots, online customer service, mobile apps and next-day delivery. Live commerce combines all of this, and also introduces live streaming. By getting closer to customers and adding a direct experience without leaving home, businesses and customers can access a new, thriving retail environment, even during lockdown.
Different types of live commerce
1. Online marketplaces
This is where live commerce comes into play, offering real-time interaction – buyers and sellers will feel like they are in a physical market, but from the comfort of their own home.
2. Live auctions
Instead of going to an auction house, buyers and sellers can connect online and around the world. Live streaming auctions allows for a larger bidding pool, which means there’s likely to be more buzz, more bidders, and more competitive bidding than ever before!
3. Streaming for influencers
We are used to seeing influencers sharing their lives through social media streaming, and with the growing engagement and demand for this type of content, you will soon see influencers adopting live streaming into the e-commerce industry as well.
live shopping
For example, Nestlé used Periscope to promote conduit china its Drumstick ice cream to live-stream “iconic summer moments” on June 21, during a backyard barbecue and amusement park visit. Four influencers also created their own Periscope shows, and the brand used Twitter to boost its campaign.
4. Live Events
Product launches or limited edition items are more often promoted as “live events.” Streaming these live events will provide quick and easy coverage on a regional, national, or even global level. There is also no limit to the number of consumers—which will increase your potential customers.
5. Interviews and Q&As
Reading interviews in articles or searching for the “questions and answers” section on websites is slowly going out of style. We are increasingly more inclined to watch and listen to content – hence the ever-increasing popularity of podcasts and YouTube. Live streaming can also include live Q&A sessions with experts or frequent product users. This method brings the brand closer to the hearts of customers and invites viewers to a conversation in the community.
What are the benefits of using live commerce?
Online shopping without assistance can be difficult. With the virtual presence of a salesperson or influencer, your questions can be answered immediately. What other benefits does live commerce provide?
Better customer relationships
Knowing that a product is backed by someone you know, someone you trust, and someone who can vouch for its effectiveness is a huge factor in building trust with your customer. The better people feel and identify with your brand, the more likely they are to return and become customers for longer.
That’s why live commerce can help build better customer relationships, as they are able to see the product in real time and someone who can actually present and recommend it. This not only puts the product in a better light, but also gives shoppers more confidence, which means they are more likely to buy it.
Better Understand What Customers Want
Listening to our customers during a live broadcast means immediate feedback on the product. Maybe they don’t like the material or the design – whatever it is, companies can easily gain important information that they otherwise wouldn’t have the chance to get.
Knowing what customers want will help companies understand customer expectations and allow them to quickly adapt to market needs.
Reaching a Larger Audience
A brick-and-mortar store is usually limited to those who live nearby or those who have come to visit. What’s more, the availability of products is also limited. However, live commerce reaches a larger audience, which means that incomparably more people have the opportunity to familiarize themselves with the offer, which in turn will increase brand awareness and sales.
online shopping via social media
Helping you get ahead of the competition
Properly prepared and executed live streaming sessions that are engaging will increase sales. Live streaming can help businesses stand out and allow for many creative ways to get ahead of the competition.
Finding the right employee or influencer to host the live stream is key. A convincing, optimistic and smiling person should present the product in terms of the benefits of everyday use, which will entice customers. The most well-known are currently Facebook and Instagram live shopping.
Reduced overhead
The best thing about live streaming: it’s cheap. It doesn’t require a lot of equipment, you can do it with your smartphone and it doesn’t matter if you’re doing it at home or in a store, so there’s very little overhead involved.
The potential of live shopping
It is easy to see that inventions and ideas from China easily and quickly make their way to Europe. Live commerce is, however, a promising trend that is worth implementing, or at least trying out in your company’s sales. All you need to do is properly match the platform, language and form to the selected group of recipients, run the live in an interesting way and hire someone who will engage the community and present the products in an encouraging way. Good interaction with viewers = high sales!