Live shopping, a new exciting intersection of entertainment and e-commerce, is quickly becoming a key driver in the retail space. This unique commerce style is not a far cry from legacy channels such as QVC. It enables users to buy products instantly as they watch live streams. The global live shopping market has skyrocketed to an amazing $32 billion valuation. This happy spike underscores a quickly inflating trend that most brands can’t wait to dive into.
Live shopping acts as an immediate channel from customer to item, cutting out so much of the purchasing steps in between. This format has taken off widely, especially in the Asia-Pacific region, where it has become a format cornerstone for consumers. Fashion, cosmetics and collectibles seem to be the hottest sectors right now in this rapidly-changing world of digital assets. European and U.S. brands are jumping into the stream of live shopping events. They want to entertain customers and create a more stimulating shopping experience!
Renaud Salmon, a representative from a leading brand, highlighted the advantages of this approach:
“In the past, we would have used customer satisfaction surveys, but with live shopping, we get feedback right away and I bring that back to my team to help refine our products.” – Renaud Salmon
This immediate feedback loop helps brands adapt and empowers customers by giving them a voice in the product development process.
You can conduct live shopping events on most major social media platforms. Douyin and Taobao are the most widely used options, drawing a large and varied audience. This format turns out to be super flexible. It allows the direct sale of anything and everything—not just luxury perfumes, but dollar store items. The ultra-premium Middle Eastern luxury fragrance brand House of Amouage also partnered with Nordstrom on live shopping events in the U.S. In part, they were motivated by the success of similar initiatives in China.
Kelsey Krakora is a former successful live shopping host. She hosts two to three live shows per week, with each show lasting approximately three hours in length. Her cohesiveness and engagement with viewers leads to an average of 100 sell-through items per show, with sales totaling around $1,000 in each show. Reflecting on her initial experience with live shopping, she recalled:
“My first live show with Poshmark was 27th November 2022. I sold zero things on my first show… but that didn’t last long!” – Kelsey Krakora
For all of live shopping’s growing hype, many industry professionals are apprehensive about live shopping’s ability to scale in Western markets. Retail analyst Sucharita Kodali explained why so many companies have tried and failed at live shopping, “It just doesn’t scale.” Others believe that the unique interactivity of live shopping can create a different experience compared to traditional retail.
“These events are inclusive, welcoming, you can shop in your PJs, and there’s no need to head to the shopping mall.” – Kelsey Krakora
Manish Chandra, CEO of a prominent e-commerce platform, remarked on the engaging nature of live shopping:
U.S. consumers are just getting used to the idea of live shopping events. Indeed, 45% said they had shopped from fairs or festivals in the last 12 months, demonstrating a strong and obvious potential for market growth. There are still questions about its suitability in areas with more store density.
“Live shopping lets shoppers have a conversation with someone who knows the products being sold, and that generates a lot of excitement. It also creates a community where other shoppers are in the same show, and it’s really a different experience than a traditional shopping trip.” – Manish Chandra
Krakora shared insights on consumer behavior in the U.S., suggesting that traditional retail might still have an edge:
Key opinion leaders (KOLs)—internet influencers such as Li Jiaqi—are booming in China. Their success is a testament to how trusted personalities can spark consumer fascination and confidence in the domain of live shopping. Jonathan Reynolds noted that these KOLs have developed their businesses on the foundations of expertise and consumer trust.
“Maybe it works in China where they don’t have the same kind of store density we have in the U.S., where it’s better for consumers to go and try something on rather than watch a host try on a piece of clothing.” – Kelsey Krakora
Here’s what you need to know about the fast growing live shopping space. We are yet to see if it will actually be successful with Western audiences. Add together the convenience of entertainment with the convenience of instant purchasing, and you have a very attractive option for a lot of consumers. Those brands and retailers that are first to this model will lead the wave of retail’s renaissance.
As live shopping continues to evolve, it remains to be seen whether it will fully take off in Western markets. The combination of entertainment and instant purchasing offers an appealing alternative for many consumers. Brands that adopt this model may find themselves at the forefront of a retail revolution.