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Live Shopping: The Strategy That’s Taking Black Friday by Storm.
25 de November de 2021
If you’ve recently experienced an overwhelming need to get a new tablet or that dress you had saved on your wishlist or a bigger TV for your living room, it may be because it’s Black Friday week and sales strategies are having an effect on you. But it’s not just you, don’t worry. Last year’s global sales during this week went above 4.8 billion dollars and, this year, that number is expected to be higher.
However, studies like the Global Digital Overview of 2020 maintain that consumption habits have changed over the last two years and this has produced a change in sales strategies. Black Friday went from being a battle for the prices to a competition on experiences. Among the new experiences, the one that stands out is Live Shopping or Livestream Shopping. It’s a technique that’s all the rage in China and that’s rapidly expanding across the world.
What’s Live Shopping?
Live Shopping is a new strategy that brands use to increase their sales. It involves live online streams where presentators —usually influencers— show and try out different products while they interact with the users. Some experts are calling this technique ‘the new home shopping network’, since the goal is the same: bringing the product closer to consumers and offering them the possibility to make a purchase at the moment; the only difference is that, what was once done via a telephone call, is now done through the social networks. There’s one thing on which everyone agrees though: Live Shopping is the future of e-commerce.
For the Benefit of All
Live shopping offers benefits for both companies and consumers. According to Forrester Research data, 70% of consumers are interested in these types of actions, which are part of a ‘shoppertainment’ strategy that combines shopping and entertainment.
More and more brands are making use of live shopping and the results are evident:
Engagement - User participation and engagement increases significantly when brands use live shopping. But in order for this to happen, it’s essential to have more strategies besides showing the product: videos, pictures or gamification tools are some of the possibilities.
Conversion - Discounts and temporary offers are the two most usual protagonists in this strategy. These cause the urgency in the users’ needs to increase, which in turn increases conversion rates.
Brand Image-Users can see the product and its functionalities on a live stream and even get to interact with the hosts, presenting any doubt they may have. This plays in favour of brand transparency and increases client trust.
Success Stories
Live shopping, done well, guarantees success and is capable of exceeding any expectation. Here are some examples:
Alibaba -China has been one of the main promoters of this model and the technique already represents 10% of the country’s entire e-commerce. The prime example of live shopping can be seen during China’s annual Singles’ Day celebrations. Alibaba Group often has international stars from all over the world acting in their shows while the different products are being presented and their purchase encouraged. The last edition went on for 10 days and sales surpassed the 62 billion euros mark.
Tommy Hilfiger - The textile company carried out its first ever live shopping test in August, last year, and it was a success. In just two minutes, they managed to sell 1,300 products and reach 14 million spectators.
Xiaomi - The Chinese company that specialises in electronic devices has taken the strategy beyond its limits and has seen record-breaking results. In just 40 minutes of streaming in Mexico, they managed to increase their sales by 500%.