The Way the Livestream Shopping Trend is Impacting the Marketing Industry as it Paves its Way and Becoming a New Channel of Revenue

Inbal Leitner

02/10/2022

Livestream shopping

What is the Livestream Shopping Trend?

Livestream shopping has informally existed since the inception of livestreams. However, it was not until 2016 that it became a trend. Starting in China, it quickly spread across the West as companies saw its marketing potential. buywith offers the best livestream experience to shoppers globally.

Using a livestream, influencers can directly promote products to shoppers in real time. This allows them to ask questions and engage with the influencer, increasing product intrigue. Content creators will take you on an exciting live journey directly on your website, bringing all shoppers together to shop at the same shopping event by creating a social-shopping experience.

If a livestream lasts 30-45 minutes and each product is reviewed for a few minutes, then every product reviewed within 30-45 minutes will amount to less than 20.

Some of the largest retail brands in the world drew to this opportunity. Soon, the livestream shopping trend began and has since rapidly grown. Using celebrities and influencers as hosts increases awareness toward livestream e-commerce, which in turn encourages companies to give it more marketing focus.

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How Successful is the Livestream Shopping Trend?

In China, 460 million Chinese citizens reported purchasing an item via livestream in the past year. These numbers are astonishing considering this form of marketing has only been popular for five years.

The United States is still new to the trend. Only 30% of Americans have reported watching live video shopping. However, the phenomenon is rapidly growing. The livestream industry is expected to triple its revenue in U.S. e-commerce by 2026.

What industries benefit the most from the Livestream shopping trend? 

  • Fashion and apparel – This industry accounts for 36% of livestream shopping. Having an influencer try on clothing live and discuss its perks is more convincing than pictures and text reviews.

  • Food – Food reviews are popular. The online food & beverage industry can engage buyers and customers in real-time entertainment and food tasting and shopping experiences. Livestreamers in the fresh food category account for 7.4% of all livestream events.
  • Beauty products – We help brands promote Make-up and other products in live shopping . Most influencers demonstrate makeup application live, offering insights into the products, their advantages, and usage tips. In fact, 7.6% of livestream viewers tune in specifically for beauty product-related livestream events.
  • Technology – The technology industry has made fewer yet more impressive sales. One influencer even managed to sell a rocket launcher for almost $6 million. Also, 4.6 % of consumer electronics shoppers and enthusiasts join livestream events.
  • Furniture and home décor – Livestream e-commerce goes to home improvements well. Influencers help shoppers imagine the products in their homes and give suggestions for maximizing appearance. There is 3.6% of furniture and home décor shoppers who watch livestream events.
  • Miscellaneous – With us you can sell various products, from expensive cars to traveling trips and we believe every industry has marketing potential through livestream shopping.

How Does the Livestream Shopping Trend Affect Marketing?

  1. New Target Audiences – Thousands of people tune into livestream platforms every day for entertainment. Plus, brands can build customer loyalty and time wasters can help sell products and target new customers. buywith has a highly intuitive dashboard with sales data and shopper contact details & email in real-time. Brands can utilize livestream platforms to improve user acquisition and reach new audiences to connect with them on a personal level and more than just targeting sales and traffic.
  2. ConversionMost companies struggle to raise their conversion rates. However, brands that take part in the livestream shopping trend have seen up to 30%  more conversion compared to conventional ecommerce. Popular content creators are followed and trusted upon by hundreds of social media platforms. All products can be discovered by customers through livestreams and influencers can convert shoppers to long-term customers by exposing them to more products from brands. Shoppers can try products and services without having to think twice and this dismisses uncertainty among them.
  3. Engagement – Alongside conversion, companies also struggle with keeping customers engaged. Releasing new products and special promotions can help. However, once these fads die, engagement drops again. In a live event influencers continue their interactions with customers using live chats, polls and talking face-to-face with shoppers. It serves as a way to engage customers even when the company doesn’t have anything new to offer. Chatting with consumers live encourages them to return for future streams and keep an eye out for upcoming products. Engaged customers are more likely to rate a brand favorably. They’re also likely to recommend the brand to others through constructive feedback because of their satisfaction and loyalty towards the brand.
  4. Differentiation and Relevancebuywith stands with enterprises and mid-market brands to cater to GenZ and millennials who spend most of their time on social media platforms and follow content creators. We strive for innovation to provide a unique in-store online experience that is relevant for our audiences. Due to the livestream shopping trend being a new phenomenon, it is virtually free rein. Particularly in the West, there is not much competition in this market. Businesses that lead in innovation use this opportunity to reach customers on livestream platforms. We help brands to gain relevance in the market by making them differentiated but creating awareness among our target audiences is not our only goal. We help the brand stand out from the others and our prime focus is for the brand and the audience to stay connected and ahead of the competition.
  5. Tie-In to Other Marketing – Livestream shopping  is taking user acquisition, customer engagement and brand value to the next level. While we help the brand connect with the customer in a more personal way, we also create 360 marketing solutions both before and after the live event. This includes SMS, direct emails to shoppers and marketing content to promote products and services. Influencer marketing can generate massive sales faster compared to other marketing methods. Both brands and retailers can elevate their services and products and influencers can monetize their efforts towards the audiences in the most direct and authentic ways.

What is the Future Outlook for the Livestream Shopping Trend?

Livestream shopping is booming with no plans to stop soon. As it grows in the West, more companies are taking notice and big brands are joining in. Even Amazon is trying to make its own livestream shopping platform. Livestream e-commerce is the new marketing channel that will soon become predominant among several other niches.

It will soon become a staple of shopping and marketing. Hence, we present buywith.com for 360 live-shopping solutions.

Inbal Leitner
Marketing Manager at buywith

Inbal Leitner, is the Marketing Manager at buywith, a leading live shopping platform and creator marketplace. With a rich background spanning over 10 years experience in B2B2C marketing and retail, Inbal is a dedicated marketing professional who expertly blends her passion and expertise. As a livestream shopping expert, she leverages her profound knowledge to craft innovative marketing strategies, ensuring compelling and fostering engaging shopping experiences for users.

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