Copy
Hey, <<First Name>>!

Live streaming had a shaky start. 

Besides a handful of highs, there were just far too many lows. From the start, live streaming tools raised concerns about the frequency with which they are used to broadcast self-harm and other violent episodes. 

But then the lockdown started.

And according to research, the live streaming sector grew a full 45% YoY between March and April last year and the industry is up by 99%.

At the start of 2021, live stream shopping is one of the hottest trends to emerge from the pandemic.

Living in the world of streaming everything

It all started 10 years ago with Chinese influencers taking their audiences along as they travelled to the US. They used live streaming to introduce and explain new products that were not available in China.

Meanwhile, China's e-commerce giants introduced live stream chats and seamless purchasing via video.

And the consumers loved it!

In China, the state media touts live streaming as a way to combat poverty in rural areas, enabling farmers to sell products online.

In 2020, live stream video was projected to generate $136 billion in revenue in China.
 

The current whirlwind of activity around live stream shopping reflects several megatrends


Digital media consumption is exploding, as new technologies make it easier than ever to create and share video-based experiences.

Responding to shopping restrictions imposed by the pandemic, retailers and brands worldwide are racing to add live, interactive video experiences into their marketing mix.

Celebs and influencers are having a growing impact on purchase decisions.

During the pandemic, millions of consumers are increasingly interacting with retailers and brands online, and many will likely continue to do so long after the pandemic is over.

Many brands, such as Walmart, are taking the lead from Chinese retailers. Still, the viability of the Chinese business model is under question because of its reliance on expensive celebrities and influencers.

And the jury is still out on whether that translates into brand loyalty and repeat purchasing.

A Forrester study, done during the pandemic, found that 70% of 14,460 consumers surveyed in the UK, France, Spain and Poland expressed interest in live stream shopping.

Among the things they value about live stream shopping are saving time, finding cheaper deals, and getting access to a wider product range.

Among surveyed consumers who are interested in live stream e-commerce, almost 50% increased consuming 'shoptainment' content as a result of the pandemic.

Top live stream content reflects the latest in consumer trends. 

Electronics, fashion, and cosmetics are the top categories that draw consumers’ attention to live streaming.

  • 40% of surveyed consumers (predominantly male consumers) are interested in purchasing electronics, and that’s more than 10% higher than through social media and social media influencer content.
     
  • For fashion and cosmetics products, consumers (predominantly female) are equally interested in e-commerce live streaming and influencer product content on social media.

People seem to be attracted to game-like features such as individual games (40%), collecting coins (40%), fortune wheels (35%).

Younger consumers prefer more interactive and collaborative features, such as posting comments and chatting with live stream hosts and playing collaborative games with their friends.

And although consumers prefer watching live streams on their mobile devices, computers are still more popular when making online purchases. 

Department stores are turning to live stream to catch up to Amazon.

They're using it to help people discover new products both in-store or online.

Nordstrom recently announced that they're launching a new page on their website dedicated to livestream shopping and they are planning to host several livestream events each week throughout 2021.

We've all seen how brand after brand is turning to DTC since the start of the pandemic.

And for major department stores live streaming can be another tool to convince brands to direct more inventory to the department store, rather than back to their own website. 

 

What you need to pay attention to


Compared to China, shoppers in the EU and US aren't super familiar with live stream retail.

The biggest gap between the Chinese and European or American retailers is digital maturity.

More specifically, retailers need to make it easier for people to make a purchase from a live stream and integrate social features to help influencers engage and even grow their own following.

Influencers in the US and Europe also need to start embracing live stream shopping.

It always takes a while for consumer behaviour to change but this change is accelerated. Because our shopping behaviours have transformed faster than anyone could have predicted before the pandemic.

Pundits had already declared that live streaming dead in 2019 and just look at it now.

First, brands need to sort out more practical challenges: building an audience, managing the ever-increasing cost of buying online traffic etc.

The cost of paying an influencer or investing in paid media can quickly add up and eat away at any possible gains from a live stream event.

Remember that livestreaming is more than the latest technology or the influencer of the moment.

The key to success is building lasting relationships, customer by customer.

The basic human truth behind retail has always been value exchange, human connection and the joy of discovery.

And although it's virtual, people will still randomly wander into your live stream to have interesting conversations, learn the stories behind the products, and get inspired.

So, give them a reason to stick around, once they decide to hop on.
Share Share
Tweet Tweet
Forward Forward
Post Post

In case you missed:

  1. DTC Briefing: How startups are preparing for a summer of almost-normalcy. //Modern Retail
     
  2. Data-driven advertisers have a hammer and everything looks like a nail. //Econsultancy
     
  3. 5 trends in the boardrooms of high-growth private companies. //TechCrunch
     
  4. Opinion: How TV advertising changed during the pandemic. //AdAge
     
  5. How Adidas is planning for DTC to make up 50% of its revenue by 2025. //Modern Retail

Liked today's newsletter? Share it with a friend or two.

Post Post
Tweet Tweet
Forward Forward

"Master the topic, the message, and the delivery.”
- Steve Jobs

Until next week,
Aliyar

PS. Are we connected on LinkedIn? No? Let's remedy that, shall we?
Got a friend in desperate need of keeping up with the latest marketing buzz? Just send them this email and they can subscribe right here. 👇
Subscribe
Thanks for reading and sharing! BR, Aliyar.
Had so many espresso shots you can't remember why I'm sending you these emails? You're receiving these email because you opted in (on my website aliyarhussain.com) to get this weekly espresso shot of knowledge, confidence and inspiration to your inbox. That was a good move, but if you want to take a bad turn down a dark alley, you can easily update your preferences using the links below. | Aliyar Hussain, Rysäkuja 3 a 5, Helsinki 00980, Finland

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.