Could live commerce become the new e-commerce?
When I was younger I spent a lot of time at my grandma’s place and I remember her watching a lot of home shopping tv programs. “How can people buy looking at this people yelling on the tv about their product being the best with the lowest price?”, I was thinking. And now, more than ten years later, I am here talking to you about this new online trend that can be compared to a home shopping program with more marketing budget, more public and enhanced technology.
How it works and how it is developing
Live commerce is a completely digital and engaging shopping experience where customers can watch a live demonstration and explanation of the technology of a product. The session is usually led by a host with some guests/experts and customers can interact, ask questions, ask for a consultancy and buy the product (or more products) at any time during the presentation. This trend gained popularity as a new way to reach out to online shoppers during the pandemic and, according to Kantar, during China’s Singles live streaming it has been the second most popular shopping channel. In addition to this, Taobao is doubling down on its live channels. Live shopping is slowly but steadily gaining momentum also in Europe, with major brands and retailers testing the format. Carrefour organized a successful live shopping session with a wine expert for the Printemps wine fair while Douglas launched in Germany its own live channels.
The opportunity
I think that live commerce represents a big opportunity for many companies investing a lot on creating a seamless customer experience. Indeed, it answers to a lot of customers’ needs at once:
Customer-centric. Customers are at the center since they are directly engaged and can actively participate through chat. They can even help the host in leading more effectively the session by giving instant feedback;
Holistic. All the information needed before purchasing a product are provided. All aspects of the product can be explained: technical features, usage, look & feel, etc. ;
Dopamine kick. Customers can buy the product instantly with just one click and enjoy the rest of the session.
Conversion boost. Live commerce seems to increase conversion (that sits around 30%) more than ten times the usual e-commerce approach (source: McKinsey Report);
Differentiation. Live shopping sessions are mainly preferred by young people who love exploring new trends. Companies can distinguish themselves with existing customers and increase their customer base especially among millenials and Gen Z (source: McKinsey).
In conclusion, we are on the brink of a new era for the e-commerce and many companies could be the first movers inside this unexplored field. To dive deep even more on this topic I suggest you to read this McKinsey Report that will provide you with a framework on how to implement live commerce in your e-commerce strategy.
