Originally started in China in 2017, livestream shopping used to be usually hosted by influencer or celebrity showcasing a product in real time with the option to click and purchase it straight away. As this game-changing tool has been picking up more momentum, thanks to Zoom, Amazon, Facebook and Instagram Live features, small independent brands have started exploring this medium using their own team or even the founder who demonstrates the functionality and features of a specific product, telling the back story, inspiration and even how to use it directly in front of their audiences.
Viewers can interact with the founder or the host by commenting during the live event, helping brands further strengthen their relationships with customers.
Livestream shopping allows brands to create their own shopping channel that is also a social network and an e-commerce platform- a hybrid model that is very low in cost. According to Smartzer, “small businesses can foster a sense of community and trust among their target audience that is more valuable than just social or digital commerce alone.”
THE BENEFITS
One of the most important benefits of livestream shopping is that shoppers are able to see the product in action, giving them the details they need before making a purchase. If some customers are little bit tentative, it can help to push them over the line.
Another benefit is that livestream shopping platforms want to cater for both – the shopper and the retailer, allowing brands to link directly to the products the founder or host is talking about. According to National Retail Federation article about livestream shopping, 84% of consumers say a brand’s video has convinced them to make a purchase and 96% of people have watched a video to learn more about a product or service. Two reasons why live streaming has high conversion rates (up to 10 x more than conventional ecommerce) are:
One –customers already follow the brand and know and trust the founder and
Two – more detailed information is provided, answering any objections they may have.
Furthermore, Coresight Research reported that “returns are 50% lower when a product is bought off a livestream compared to traditional ecommerce channels”. Someone shopping for a cushion, for example, can ask the host questions they have about sizing and colour options. Done well, livestream shopping increases a brand’s appeal and distinctiveness and pulls in additional web traffic. It can strengthen positioning among existing customers and attract new ones, especially young people keen on innovative shopping formats and experiences.
Some brands, in particular fashion and beauty, are seeing their share of younger audiences increase by up to 20%.
REMEMBER
The key to livestream selling is making the customer see who they’d be with your product in their life – and why they absolutely need it to make their life better.
EXAMPLE
Elaine Bernstein, an independent clothing brand, uses Instagram Lives to showcase dresses and garments from their collection. Founder Elaine either demonstrates the outfits herself or is behind the camera, talking to her customers about the product they recently have bought.
They talk about the fit, colour and materials. They discuss what they like about each element and why. Elaine is a great example of a small brand that is using social media to their advantage. Not necessarily focusing on following growth, they have reframed the mindset to livestream shopping, building customer trust directly with the founder.
In conclusion, livestream shopping can be a powerful marketing and sales tool for your small brand. From connecting directly with your audience, driving more sales and building a strong online presence, live streaming is a game-changer and also one of the most cost-effective ways to selling your products, showcase your art or project.
To fully harness its benefits, it is important that you invest time in creating engaging and high-quality, storytelling livestream content. The bottom line is – livestream shopping is not a fleeting trend, it’s a transformative tool for the future of your small independent brand.
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