The pandemic meant a stop for many retail businesses. But as people turned to digital for their daily needs, this massive problem became an untapped opportunity. As local shops keep their brick-and-mortar stores shut, consumers are switching to video-first digital experiences to connect and buy from their favorite brands that they trust.
What was initially meant for retailers just to clear off their excess inventory turned out to be a whole new way to reach more and more customers. Through video shopping, promoted by sometimes the store associates, or the influencers (also known as shoppertainment), Live Streaming E-commerce found its way to become the hottest e-commerce trend in 2021.
A very good example of this is Tanishq, who recently sold over Rs 100 crore ($13.5 million) worth of jewelry through video calling in just 2 months. Several other retail brands such as Kalyan, Crocs, Pothys, etc are now following suit. Global e-commerce tech companies like Etsy saw a 2X jump in GMS from $5 bn+ to 10 bn+ after adding video as a feature while Shopify has begun listing live shopping apps on its marketplace.
Another good example is SWIRL, which is a leading Live Video Commerce SaaS provider in India whose current client engagements include Arvind Brands, PN Rao, Zariin, BeChef, and several D2C and retail brands. They provide interactive virtual shopping solutions for small, medium, and large retail enterprises to improve their customer engagement and drive sales conversions by inspiring customers with more confidence to buy online, as they do in-store. It offers both one-to-many and one-to-one Live video shopping experiences for retailers using Text, Chat, Whatsapp, SMS, and Voice communications that bridge the online-offline gap and make the entire experience as close to in-real-life as possible.
Facebook is toying with the idea too, to live stream ‘Live Shopping Fridays’ events. The aim is to promote and raise awareness about live stream shopping among customers. The pilot project is started from FB pages of brands like Clinique, Sephora, Dermalogica, Alleyoop, and Zox.
Livestream shopping first originated in China and now has over 524 mn+ live streamers and generated an estimated $170 bn in 2020 with the help of Taobao, JD.com, pinduoduo, and others while the west is now playing catchup with Amazon, Google, Instagram, and Youtube also testing their own version of Live Shopping. In India, the video commerce market India is estimated to reach US$35 bn+ by 2025.
Livestreaming Simplifies Customer’s Buying Journey Through Effective AIDA
The great thing about Live Streaming is that this form of live e-commerce makes it easier to cut the tedious buyer journey and makes them buy the product faster and easier. The buyer is aware (A) of the product.
Through live interaction and live streaming by influencers, they develop their interest (I) and assess if the product is right for them. If the product/service seems appealing, they have the desire (D) to buy it.
Once a product has tickled the customer’s desire, it is only a matter of seconds that they take action (A). And live streaming simplifies the whole buyer’s journey seamlessly.
Live Streaming Is The Future Of E-commerce
Livestreaming e-commerce is the future of online shopping. As e-commerce trends evolve, brands are doing everything to ease the buyer’s decision-making. Conversational Shoppertainment and live video shopping is the future, and those who adapt to it sooner can reap its benefits faster. It will remain an explosive trend, even if things get back to normal.
Just like how we saw traditional and modern retail co-exist, similarly we will see Live Commerce becoming the next new normal and the fastest-growing subset of e-commerce, with the imminent 5G rollout further accelerating this trend. Clearly, video shopping is a sustainable trend and not just a pandemic fad so businesses in the future, both small and big will slowly realize the futility of paying millions in rents or other real estate expenses when the customers expect the same experience virtually.
As more businesses look to connect virtually with their customers who are stuck at home and glued to their mobile phones, live video shopping is quickly emerging to be another significant arm of retail besides traditional brick-n-mortar and e-commerce. Live selling is the future of retail technology and the top 2021 trends in e-commerce.
What’s stopping you from becoming a part of this global megatrend?