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A livestream shopping app is a type of e-commerce that combines video, influence marketing, and shopping. Through the app, users are able to watch and shop in real time while attending a live event. These events are interactive, encouraging viewers to comment and react with emojis. Real-time commerce is unique, as it is a one-time, exclusive occasion. This type of app is different from video shopping, which is based on pre-recorded videos that are broadcast at regular intervals. Live commerce provides an interactive, engaging experience for users who can connect with others in the same community.
The Rise of Live Shopping Across the Globe
Over the last few years, live-shopping platforms have become increasingly popular, not just in one country, but all around the world. This new trend has become an integral part of digital-first retail and the competition among brands is growing. In 2022, the US live commerce market is predicted to be worth $17 billion, with a projected growth to $35 billion by 2024 at a CAGR of 47%. This livestreaming phenomenon is popular among millennials and Gen X.
Brands such as Jacquemus, Walmart and Amazon have all taken part in livestreaming events, with apparel and fashion taking the lead with more than 35% of live commerce events. The increased interest in the metaverse has also reinforced the potential of live shopping as an important sales channel. A recent example of this is Samsung’s virtual launch of their new Samsung Galaxy S22 smartphone.
Although there is potential for lucrative profits from live commerce, a question remains whether the initial investment is worth it.
Benefits of Livestream Shopping for Retailers and Brands
In recent years, the global live commerce space has experienced some noteworthy changes. Major players such as Google, Pinterest, Twitter, and TikTok, as well as younger firms, have all tried out this novel form of merchandising. So, what advantages do these companies gain from livestream shopping? Quite a few, it turns out.
Accelerating conversion
The live shopping experience speeds up the buying process, enabling customers to make quicker decisions and more purchases. It has been reported that companies have seen conversion rates of up to 30% during live shopping events, which is considerably higher than the 2.8% for standard e-commerce in the US in 2021. The impulsive buying instinct which is stimulated by limited deals, flash sales, social contagion, and vicarious experience, is the reason for this increased conversion. With the addition of one-click buying and integrated payments, customers are provided with the ultimate convenience, which in turn leads to more conversions.
Improving brand appeal and differentiation
Livestreaming presents a unique opportunity to improve brand appeal and set businesses apart from their competition. The technology offers companies and retailers the chance to communicate with customers in a much more direct manner, making them appear more accessible. Furthermore, this type of interaction enables customers to have a more personal experience with the brand, which can create a competitive edge in the market. Finally, this new form of retail can be highly appealing to tech-savvy customers looking for exciting, modern shopping experiences.
Authenticity
Streaming commerce gives companies the opportunity to go right to the customer’s device with no alteration to the video or images. This provides customers with an unaltered look at the actual item, and when they buy it, they can be sure that it appears precisely as it did during the livestream. This makes companies appear sincere and customer-oriented, which is of the utmost importance in today’s world, as 90% of consumers view authenticity as their primary factor when choosing a brand.
Real-time engagement
The appeal of live shopping is the capacity for viewer involvement, as well as its unexpected nature. As this type of shopping allows viewers to make comments and ask questions in the moment, people are more actively involved in the shopping experience.
Entertainment
Merging commerce with live video amusement, livestream shopping is becoming a more pleasant and varied experience. This combination of real connection, buying, and an upbeat atmosphere is likely to appeal to the 31% of American consumers who are willing to pay extra for an unbeatable shopping experience.
Moreover, quizzes, competitions, and unboxing sessions bring a game-like element to live shopping and appeal to our instinctive desire for play.
Immersive experience
Companies can provide customers with a multisensory, emotionally-driven experience with the help of live videos. This quality, called immersiveness, is created with a combination of extended reality and traditional flat user interfaces. To provide even more immersion, companies can use immersive-first technologies such as augmented reality (AR) and virtual reality (VR) to give customers a full view of the product.
Common Myths About Livestream Shopping
Myth 1: Centralized live-shopping marketplaces dominate the livestreaming e-commerce space: This myth is false as creating a custom livestream shopping platform integrated with an official website eliminates the middleman between the company and their customers, allowing for more direct customer interaction and branded content.
Myth 2: Producing live video takes the same effort as TV commercials: Contrary to popular belief, the production value of live videos is not as important as the content and genuine emotions they convey.
Myth 3: Social media livestreaming will drive conversions: Social media streams are convenient, but they require additional efforts and ad spends to generate conversions. Custom livestreaming platforms have the highest buying intent, resulting in higher conversion rates.
Myth 4: Live shopping is a purely a tool to promote deals: While live retail is mainly used to make sales, it can also be used as an engagement technique to entertain viewers and help them discover new products.
Myth 5: Celebrity-studded livestreams land more sales: Celebrity endorsement is not a guaranteed method to increase sales as the celebrity may not always be well-aligned with the brand. It is better to invite product experts or brand representatives for a more genuine opinion.
Myth 6: Sales conversion is the only metric that matters: Sales are not the only way to measure the success of a live event. Other metrics such as viewer comments, session time, and repeat viewers provide valuable insights into customer preferences and behaviors. Custom livestream solutions offer access to this data.
Conclusion
In the digital era, it is essential for companies to have an emotional, interactive, and conversational presence if they want to thrive in the post-pandemic world. Otherwise, they can only compete on price, and Amazon is already dominating in that regard. To create organic sales, a humanized experience is essential. Livestream shopping can be the answer. It fuses the online environment with interactivity and social networking, leading to higher conversion rates and brand awareness. We specialize in developing customized applications to meet your specific needs and requirements, that’s why our team of experienced professionals has extensive knowledge of the latest technologies and trends in live shopping app development. Reach out to us today to get started.
