The next big thing : How Live Commerce has caught global attention
Back in 2015, when Alibaba hosted the 11.11 shopping festival for the global sellers and buyers, something new in the e-commerce sector was about to be born. The show was broadcast live on TV and other online platforms and the audience could play along with their phones and even make purchases.
This experience taught the world something new, a new way to engage the audience, a new direction for the global e-commerce sector.
Alibaba went along with this learning and Taobao Live was launched in 2016. Taobao Live is a channel where shoppers can watch and learn about the new trends, get entertained, and simultaneously make purchases, in short — Live commerce.
Live commerce is a form of online shopping where customers can shop during live video streaming of events.
In 2020, the first 30 minutes of Alibaba’s Singles’ Day presales campaign on Taobao Live generated $7.5 billion in total transaction value. These results shout loud enough for the world to witness and join the e-commerce revolution.
So for any product which uses e-commerce for discovery or distribution, Live commerce might just be a door to the future.
Is it for you?
To understand the impact of live commerce on any brand, we must first understand which stage of its lifecycle the product has reached. Since live streams and influencer marketing are the most effective among one-time buyers (impulse shoppers), it might just be a good idea to not use live commerce if you’re looking for results like brand loyalty.
In addition to this, understanding your target audience is also paramount. For instance, beauty and fashion are most famous among millennials as per a study in the US (influencer marketing is the most famous for this segment). Therefore, using data and analytics to identify suitable audience segments is the place to start.
What is the Value?
Live commerce generates value by focusing on the power of
- Influencers
- Live demonstrations
- Technology
As the technology penetrates deeper into different sections of society, the hunger for content by the mass population increases year on year. Since the number of quality content creators is far less than the consumers, reliance on influencers to deliver is increasing too which further results in loyalty or following.
Followers generally tend to rely on the influencer’s opinion to such an extent that it affects their decisions (especially buying decisions). These influencers can demonstrate any new product, brand, or whole merchandise while engaging their followers through live streams.
All this looks humongous on the back of the argument that more than half of third world countries population is yet to experience digitization at scale. Therefore, anyone who bets on technology can bet on the fact that live commerce is the next big thing.
What’s in store?
There are a few trends that are currently shaping up the commerce and live commerce market. For instance, hiring big names from movies, shows, and other industries is not realistic for every brand. Using influencers with a few thousand dedicated followers can generate a more intimate and trusted connection with your target audience while saving resources in the process.
Additionally, as live commerce increases its reach, industries such as healthcare, engineering, and finance are also going to follow the traditional e-commerce dependant segments.
The success of Live commerce in China and its adoption in western counties has made sure that this trend is far from temporary. It won’t be long before major tech giants throw their hats in the ring to ride the wave which might shape the whole e-commerce industry for years to come.
