04 January 2022
According to AlixPartners, two-thirds of Chinese consumers have purchased products through livestream in the past year. survey from October 2020. Will the Americans ever catch up?
A McKinsey to study from July 2021 estimated that live streaming quickly became 10 percent of China’s online sales since Alibaba’s Taobao Live was launched in 2016, boosted by Singles Day. Following China’s lead, McKinsey estimated that the live broadcast could represent up to 10-20% of all e-commerce by 2026.
McKinsey has identified two main drivers of direct commerce:
- Speed up conversion: Entertaining and immersive, live streaming allows viewers to watch longer while guiding the customer journey from awareness to purchase. Tactics such as one-off coupons can generate a sense of urgency.
- Improve the attractiveness and differentiation of the brand: Live streaming can increase brand appeal, generate web traffic and reach younger consumers who are open to experimenting with new shopping platforms.
In the United States, purchasable live streaming has grown in popularity as in-person purchases were necessarily limited due to the pandemic, and some are seeing another leap forward this year.
A recent Pub week However, the article predicts that an inflection point for live commerce is unlikely to arrive for a few years after more experimentation on Instagram Live, Amazon Live, and TikTok as well as many niche platforms.
Gartner analyst Ant Duffin said Pub week, “What you’re starting to see more and more now, especially in the live broadcast space, is a proliferation of different live broadcast performances.”
A Beauty Material The article said live streaming needs to integrate more seamlessly with social media and e-commerce platforms, like China, to achieve greater adoption. The article states: “In Western markets, the experience to date has been more transactional than social.
A recent study from the Buywith live streaming platform found that successful live buying campaigns tend to involve knowledgeable and engaging hosts, cross-platform promotion, and exclusive offers.
Andrew Lipsman of eMarketer recently said Morning infusion that he doesn’t expect the US live broadcast to ever reach China’s level. “People have compared over-the-air shopping to QVC, but QVC works because it’s on TV,” he said. “With the livestream, people have to lean in and really want to engage in it. So the question is, how many people really want to spend a lot of time watching them?”
DISCUSSION QUESTIONS: Will direct shopping in the United States, do you see a peak in adoption and availability in 2022? What holds back adoption like what happened in China?
“It’s time to define what social commerce looks like in the United States, rather than just replicating what has been successful elsewhere.”