Livestream Shopping: China's $66 Billion Craze Spreads Westward

In essence, livestream shopping is like the modern, mobile, and interactive version of TV shopping channels. Hosted by charismatic presenters, these streams showcase products, provide live demonstrations, and engage with viewers in real-time. What sets it apart is the ability for viewers to make purchases directly from the stream, making it an unparalleled tool for brands to enhance sales and connect with their audience.

The Chinese model offers a twist – hosts can provide discounts and special deals, while viewers can send virtual "gifts" to their favorite hosts. Experts predict China's livestream shopping market could double to nearly $170 billion in 2023.

This trend is now spreading to the west has some of the biggest brands catch on to this trend and incorporate it in their strategies to provide an immersive shopping experience to their loyal customers.

Consumer preferences are shifting, with 80% favoring live video over blogs and 82% choosing live video over social media posts, as revealed in a 2021 survey by Livestream and New York Magazine.

When executed effectively, Live Commerce yields exceptional results. For example, L'Oréal Paris generated over $2.7 million in sales during a two-hour live shopping event on Tmall, while Maybelline achieved a tenfold increase in lip product sales through its debut Tmall live stream.

Beyond Product Launches: Live Commerce as a Brand-Building Tool

Although widely used for product launches, Live Commerce offers a broad spectrum of branding opportunities. Let's explore seven remarkable case studies:

#1 Louis Vuitton: Targeting a Younger Demographic

In May 2020, Louis Vuitton ventured into live streaming on Xiaohongshu, attracting 15,000 live viewers and 20,000 new social media followers. This move rejuvenated the brand's image, particularly among younger consumers, showcasing the potential of innovative approaches to customer engagement. However, brand image must be maintained rigorously during live events.

#2 Gucci: Personalized Shopping Experience

Gucci introduced Gucci Live in May 2020, enabling customers to virtually shop with sales associates in Florence, Italy. This one-on-one video shopping experience was an embodiment of the brand's commitment to personalized service, demonstrating that Live Commerce can enhance brand identity without dilution.

#3 Printemps: Showcasing Brand Representatives

French department store Printemps launched En mode Printemps, featuring personal shoppers presenting fashion, beauty, and lifestyle picks. This strategy leveraged the strength of brand representatives, fostering customer connections and boosting brand authority.

#4 Walmart: TikTok's Shoppable Live Stream

Walmart made history in December 2020 by hosting the first shoppable live stream on TikTok in the US. Collaborating with popular TikTok creators, the event saw a 25% increase in followers and far exceeded expectations in terms of views. Live Commerce helped Walmart tap into a younger demographic effectively.

#5 ALDO: Expert Hosting

In 2021, Canadian footwear brand ALDO partnered with celebrity stylist Mimi Cuttrell and TikTok personality Nate Wyatt for a live stream event. This session achieved a staggering 308% engagement rate and drove 17,000 page views to ALDO's website, showcasing the power of experienced influencers in Live Commerce.

#6 NYX Cosmetics: Y2K Nostalgia

NYX Cosmetics' Y2K-themed live stream in July 2021 featured early-2000s pop stars. This creative theme resonated with Millennial and Gen Z audiences, reinforcing the importance of understanding your target demographic when planning Live Commerce campaigns.

#7 Kiehl's: Creating Togetherness

Kiehl's Malaysia hosted live shopping streams during the Ramadan season, replicating the traditional Hari Raya home visits. The campaign resulted in an eightfold return on ad spend and a 29% sales conversion rate, emphasizing the significance of well-timed Live Commerce events.

Are You Ready to Embrace the Live Commerce Revolution?

Live Commerce offers boundless opportunities for brands to engage customers and build brand identity. From immersive product launches to themed events, it's transforming the way businesses connect with their audience. As digitization continues to reshape the world, Live Commerce is a trend that's here to stay, enabling brands to thrive in today's market.

Stay ahead of the curve by exploring the diverse possibilities of Live Commerce for your brand-building strategy.

The future of retail is unfolding before our eyes, and share this article about Live Commerce with your friends to they can learn too.