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What does Live Shopping represent ?

Live Shopping, also referred to as streaming commerce represents a new approach to online retail where brands collaborate with influencers to host live video sessions showcasing various products. These live streams allow consumers to interact directly with people and make purchases in real time through a system of links integrated into the application or through purchase buttons.

The concept of live shopping appeared in China around 2016, linked to the huge growth of mobile streaming. This period also saw the rise of smartphones and online payment methods facilitated by the evolution of networks such as Wifi and 4G, which have become omnipresent in the consumption habits of Chinese people across the country. In 2017, the Taobao platform reported a purchase conversion rate above 50%, indicating that one in two online visitors added items to their virtual shopping cart.

Today, the market is characterized by three major players: Taobao Live, Kuaishou, a short-video platform based on trust to enhance user shopping experiences through community, and Douyin, representing the TikTok platform in China.


The Impact of COVID

The COVID-19 pandemic has accelerated digital evolution in China, characterized by the rise of live shopping. With social distancing measures and travel restrictions imposed to stop the spread of the virus, a lot of people have turned to online platforms for their entertainment, socializing and shopping needs. This has led to new features such as personalized content recommendations, virtual experiences using augmented reality for clothing and cosmetic products with the aim of encouraging purchase but above all transporting live spectators into the universe in online as if they were in store. In 2020, the value of China’s streaming market reached one trillion yuan.

Big brands like Estée Lauder are capitalizing on this trend by using live streaming channels on Alibaba’s Tmall platform with around 10 million daily views. The trend also extends to other major luxury brands, there is Adidas for example which organized 37 live sales events in January 2023 generating revenue of up to 75 million yuan. This allows brands to reach new customers and build their online presence effectively.


What are the advantages?

By merging entertainment and commerce, this new e-commerce model creates value for both brands and consumers. Brands can gain visibility and generate sales more quickly, while consumers can also be better informed through live interaction, allowing them to ask questions in real-time.

Live Shopping offers an immersive and interactive experience to buyers, allowing them to discover products, ask questions, and make instant purchasing decisions, all in a live and engaging environment. It provides brands with the ability to analyze evolving user behavior, opening up new avenues for marketing and online sales. Live Shopping is a new era of live e-commerce that continues to gain popularity day by day. However, Live Shopping carry a potential risk, as they can lead to errors that could harm the brand’s image.


A propos de Madvee Annasawmy

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