Live video commerce, or livestream shopping, is an exciting new retail format that blends entertainment with shopping. Brands broadcast live video streams hosted by influencers or brand representatives who showcase and sell products directly to viewers. This interactive format delivers an engaging shopping experience that fosters customer relationships and loyalty. Here is a detailed guide on leveraging live video commerce for success.
The Rise of Live Video Commerce
Livestream shopping originated in China with Alibaba’s Taobao Live before spreading rapidly across Asia. The COVID-19 pandemic further accelerated its adoption as consumers moved online. Key drivers include:
- Immersive experience: Live video enables touch, feel, and try aspects missing in e-commerce and deeper product engagement.
- Sense of urgency: limited stock and real-time scarcity during live shows encourage impulse purchases.
- FOMO: Viewers buy to participate in the experience and avoid “missing out”.
- Interactivity: Audiences can ask questions and shape the narrative, fostering personal connection.
- Influence: Star hosts draw and convert their followers and fans.
According to Coresight Research, the global livestream shopping market could reach $25 billion in 2021 and $135 billion by 2023.
Key Benefits of Live Video Commerce
Adopting livestream sales can provide manifold benefits for brands and retailers.
- Boost sales: China’s Viya sells over $49 million worth of goods in a single livestream. High conversion rates are achievable.
- Increase reach: Attract new audiences beyond the current customer base through the host’s followers.
- Enhance engagement: longer watch times and interactive features deepen customer engagement.
- Differentiate: Stand out against competition with a novel format blending entertainment and shopping.
- Personalise: Deliver tailored experiences and recommendations based on viewer dialogue.
- Educate: Educate consumers and address concerns about products via live demos and conversations.
- Test concepts: gauge reactions to new product launches and beta-test commercial viability.
- Drive loyalty: Foster brand love through exclusive access and behind-the-scenes content.
- Lower costs: requires minimal overhead compared to physical store investments.
- Collect data: gain consumer insights from comments, viewership metrics, etc.
Strategies for Successful Livestream Shopping
Launching live video commerce requires careful planning and execution.
Find the right host.
The host is the most important element in engaging viewers. Consider:
- Industry influencers with loyal followers who can promote content
- Employees with product expertise and enthusiasm
- Brand ambassadors who embody values
- Professional hosts with entertaining presentation skills
Optimise video and audio quality.
Invest in quality equipment and internet connectivity for glitch-free streaming.
- Use HD cameras, professional mics, and lighting kits.
- Hardwire internet connection preferred over WiFi
- Ensure adequate bandwidth.
Set an appealing scene.
Create an interesting set reflecting brand aesthetics and products:
- Invest in backgrounds, props, and lighting.
- Showcase products attractively.
- Ensure a comfortable, tidy, and non-distracting environment.
Interact with Viewers
Engage the audience and make them feel included.
- Continuously monitor and respond to comments.
- Poll for preferences and feedback
- Answer questions in real-time.
- Spotlight specific viewers by name.
Plan an engaging format.
Maintain an enjoyable, dynamic show flow to sustain viewer attention.
- Kick off with an energetic introduction.
- Break down the show into sections with transitions.
- Insert interactive elements like polls and quizzes.
- Change camera angles and positioning.
- Use on-screen graphics and overlays
- Wrap up with a summary and calls to action.
Have a retail strategy.
Make it easy for motivated viewers to purchase the products shown:
- Set up e-commerce capabilities to take orders during the stream.
- Provide special codes and discounts redeemable only by live viewers.
- Display deal countdown timers or limited stock alerts.
- Enable impulse checkout with digital wallets.
- Fulfil orders quickly to drive a positive post-purchase experience.
Promote the event.
Generate buzz and drive registration or reminders:
- Promote on social media using hashtags, tagged hosts, etc.
- Email subscribers and loyalty members with personalised invites
- Offer exclusive access or perks for attendees.
- Collaborate with influencer hosts to expand reach.
- Retarget website visitors with streamed promotions.
Analyse and optimise
Review metrics and viewer feedback to refine content and strategy.
- Track sales, reach, engagement, sentiment, drop-offs, etc.
- Identify the best-performing hosts, products, and formats.
- Address technical issues and viewer pain points.
- Continuously test new elements and improve.
By delivering authentic, engaging, and interactive live shopping experiences, brands can break through the clutter and forge lasting customer connections.
Livestream Commerce Models
Livestream shopping can be implemented through several models:
Self-Hosted
Brands directly host live shows on their own websites and social channels. This provides full control but requires investment in internal resources and platform capabilities.
Marketplace Model
Hosts stream from a shared live video commerce marketplace or platform that handles technology, tools, and promotion. Brands supply products.
Reseller Partnerships
Sell through influencers or retail partners who promote and sell brands’ products via their own livestreams and followers.
Hybrid
A mix of self-hosted and marketplace/reseller-model livestreams Provides flexibility to implement what works best for each brand and situation.
Maximising Reach Through Social Livestreams
Social platforms like Instagram, TikTok, and YouTube offer built-in tools and massive reach for branded livestream shopping. Tactics to leverage social live video commerce:
Partner with Platform Influencers
Collaborate with creators to spotlight products in popular lifestyles for their followers.
Limited-Time Product Launches
Create urgency by premiering new collections only via social live exclusives.
Enable in-app shopping.
Integrate the ability to checkout directly within social apps to reduce friction.
Share Behind-the-Scenes
Stream unique inside looks at products and processes to attract hardcore fans.
Promote with hashtags
Use relevant branded or platform hashtags to get discovered by interested viewers.
Reward Participation
Offer giveaways, personal shoutouts, and other perks to loyal live viewers.
Repurpose Content
Reuse entertaining or informative clips as regular posts, reels, etc. to extend their value.
Dedicated social commerce platforms like Yeay, Popshop Live, and Talkshop Live simplify branded live selling within their apps and communities.
Tools and platforms
A suite of livestream shopping tools and platforms have emerged to support implementation:
- Comment.io: Live chat, polls, and analytics
- Firework: Interactive video and live streaming
- Go Instore: Shoppable Live Video
- Popshop Live is a social live-selling app.
- Talkshoplive is a hosted live shopping network.
- Yeay, Gen Z live commerce app
- Shopify and BigCommerce are leading e-commerce platforms with integrated live-selling capabilities.
Measuring Performance
Key metrics to track livestream shopping performance:
- Views: Total viewers reached
- View duration: average time spent watching
- Engagement rate: likes, comments, and shares per viewer
- Followers/subscribers: fan growth
- Clicks: Product links clicked
- Add to carts or wishlists: Items added
- Sales: revenue and units sold
- Conversion rate: percentage of viewers that purchased
- Replay views: views of archived videos
Analytics and audience sentiment provide actionable insights to further optimise content and strategy.
Key Takeaways
- Livestream shopping blends entertainment with commerce to deliver engaging and interactive experiences.
- It enables deeper product engagement, a sense of exclusivity, and community.
- Careful planning and execution are required for production quality and retaining viewer attention.
- Social platforms offer built-in reach, but brands can also self-host or use specialist live commerce platforms.
- Performance tracking provides data to refine content and maximise results.
As live video commerce matures, it is poised to see rapid adoption across industries. Brands that embrace this format early can gain a competitive edge in customer engagement.