This concept started in China and grew exponentially in a short duration, Chinese manufacturers realized that one-third of their country's internet users were active on Livestream and thus they used this channel to sell products to consumers. These sales were not restricted to just low-value beauty products but also extended to high-end jewelry that became a popular item for Livestream sales. I believe this trend has tremendous growth opportunities in the West with the rise of TikTok, Amazon Live, and Google Stream.
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Livestream shopping: A trend that started in the East and is growing in the Western countries
1. LIVESTREAM SHOPPING: A TREND THAT
STARTED IN THE EAST AND IS GROWING
IN THE WESTERN COUNTRIES
KARAN HIREN PARIKH
111259214
MKM915SAA
MARCH 7, 2022.
KHPARIKH1@MYSENECA.CA
P R E S E N T A T I O N
2. WHAT IS LIVESTREAM
SHOPPING?
STARTED IN CHINA
INTRODUCTION
BRIEF DESCRIPTION
The appeal of Livestream shopping
is simple. It is that streaming is
entertainment, we are bored and
we love shopping. Based on these 3
factors this concept came into play
where streamers would sell
products online. This helped to
reach a large audience and sell
goods in a shorter timespan as it
triggered the emotion of impulsive
buying.
This concept started in China and grew exponentially
in a short duration, Chinese manufacturers realized
that one-third of their country's internet users were
active on Livestream and thus they used this channel
to sell products to consumers. These sales were not
restricted to just low-value beauty products but also
extended to high-end jewelry that became a popular
item for Livestream sales. I believe this trend has
tremendous growth opportunities in the West with
the rise of TikTok, Amazon Live, and Google Stream.
3. INDUSTRIES THAT
CAN MAKE USE OF
THIS TREND
FASHION INDUSTRY BEAUTY PRODUCTS
CONSUMER ELECTONICS HOME DECOR
The fashion industry holds
tremendous potential as the
streamers can make use of visual
effects and this will give them
leverage while selling these
apparel.
There are many makeup tutorials that
are viewed by people around the globe.
Live streamers are generally professional
at using these products thus after the
tutorial they can advertise and sell these
products on their Livestream.
The electronic space constantly
launches new products like mobile
phones, laptops etc. Before buying
these products consumers often
watch videos online to understand
the product specifications.
Streamers can make use of this
opportunity by unboxing products
on their stream and selling it at the
end.
Middle-Income and Upper Middle-
Income households generally
watch content to get design ideas
for homes. This helps them save
money by not hiring an interior
designer. Streamers can disclose
decor ideas and then motivate
their audience to buy the same
and upgrade the style of their
home!
01 03
02 04
4. HOW CAN STREAMING
TRANSFORMING THE WAY WE SHOP?
TUTORIALS LIVE EVENTS ONLINE MARKETPLACE
Presentations and tutorials have been a
good way to build a loyal fan following
that regularly joins and engages in the
streams. The host can show tutorials on
how to use the products illustrating their
effects and benefits. These tutorials will
act as a reason why the prospective
buyers would want to buy the product
and try out what they learned in the
tutorial.
Online live events happen on multiple
occasions like a public holiday, the launch
of a limited or seasonal collection.
Companies can capitalize on these
opportunities to go online and showcase
their products to their audience giving
them the opportunity to instantly buy the
product before it is sold out. With the
advancement of stream, users are able to
purchase items for the catwalks of Louis
Vuitton in real time.
Online Marketplace has given the opportunity to
consumers to buy products from the convenience
of their homes. Video technology has taken
shopping a step ahead to keep the shoppers
engaged and create a personal touch by creating
social interactions with the consumer where he can
not only have a look at the product but can also
understand how to use it. With the pandemic, this
has been a successful replica of the traditional
marketplace and users are preferring the online
marketplace because of its added benefits.
5. Better Engagement
It encourages Impulsive Buying
Adds credibility by building Brand Awareness
Throws spotlight on underperforming products
6. A $500 BILLION
MARKET IN 2022?
2.2%
19.4%
North American retailers are generating
just 2.2% of the total market value of this
trend. Thus by incorporating this strategy
in the companies marketing trend,
companies of all sizes can boost their sales
by launching streams on popular platforms
like Amazon, TikTok, and YouTube.
Post the pandemic, this trend is expected to
increase because internet users have
enjoyed and become familiar with the
process of shopping from home. Plus, this
trend can be used to create online shopping
events which are completely virtual.
(Koetsier)
2017 2018 2019 2020E
200
150
100
50
0
Amazon
1
Facebook
1
Google
1
Pinterest
1
Tiktok
1
Twitter
1
The success of the live stream
trend sets an example that
reflecting similar marketing
strategies by using more channels
can help a company produce
effective marketing plans and
provide the consumer with a
rememberable stream.
SALES FROM LIVESTREAM
TOUCHED AN ESTIMATE OF
$171 BILLION IN 2020 IN
CHINA
Amazon is the world's largest
retailer and it has understood
the potential of this trend and
they are investing big in
Amazon Live. Other competitors
like Google are focusing on
Youtube Live Shopping and
Pinterest already has a base
ready for this trend!
GROWTH OF THIS TREND
WITH THE ACTIONS OF
THESE GIANTS
I believe this trend is taking off because this makes use of social media
or other streaming platforms to focus on Millennials and Generation Z
who show an inclination to stay up to date with the new fashion
apparel and use beauty products to enhance their looks. Thus using the
right platform for the right audience is the key to the success of this
trend.
Data for Graph taken from McKinsey Blog
7. NORDSTROM LAUNCHES LIVESTREAM
SHOPPING AS GREAT SERVICE LIES AT
THE INTERSECTION OF CONVENIENCE
AND CONNECTION
This was done to give the retailer's
customers a real-time interaction with
the brand's employees and business
partners. They expanded their
Livestream shopping operations to their
apparel, beauty, and home products. To
level this up they launched virtual styling
sessions to build connections with their
customers.
Burberry Virtual Styling Session and
Spring Beauty Trend Happy Hour are
examples of how this company engages
with its customers and derives sales
from this livestream shopping.
HOW DID THEY DO
THIS?
WHAT SEPERATES THE RETAILER
FROM THE COMPETITION?
Nordstrom is known to curate great content
and it has connections with experts who host
their live streams. This helps it gather a large
audience that comes with the hopes of
learning tips and tricks from these
professionals. At the end of the day, the experts
successfully encourage users to try these
products.
Nordstrom has invested wisely in its digital
infrastructure which helps it incorporate this
trend and run the trend seamlessly. It even has
leverage over its competitors who are at the
early stage of implementing Livestream
shopping.
(Wassel)
9. With giants like Amazon and Google
investing heavily in their technology,
businesses will have multiple channels to
make use of and this will help them target the
right audience on the livestream.
Even post the pandemic, users will enjoy the
comfort of shopping from their phones as it
offers them more convenience and they do
not have to worry about travelling to the store
or being stuck in traffic.
Buying a brick-and-mortar store for a small
business is difficult because of the real estate
prices. Thus, they will stick to this low
investment business model to grow their
operations.
Even post the pandemic when there will be in-
person events companies will make use of a
hybrid approach where they will be running a
Livestream parallel to the actual event as they
can reach out to a wider audience and sell
products in a short duration.
Users will be used to this
mode of shopping
Smaller businesses will
continue with this to save costs
Virtual Events
Growth of Livestream
channels
FUTURE OF THIS LIVESTREAM
SHOPPING POST THE PANDEMIC
10. WORKS CITED
• Koetsier, John. “Livestream Shopping: A $500 Billion Market In 2022 As Amazon,
Google, Facebook, TikTok Jump In?” Forbes, 24 Jan. 2022,
www.forbes.com/sites/johnkoetsier/2022/01/22/livestream-shopping-a-500-
billion-market-in-2022-as-amazon-google-facebook-tiktok-jump-
in/?sh=33902d4c3bc5.
• “It’s Showtime! How Live Commerce Is Transforming the Shopping Experience.”
McKinsey & Company, 22 July 2021, www.mckinsey.com/business-
functions/mckinsey-digital/our-insights/its-showtime-how-live-commerce-is-
transforming-the-shopping-experience.
• Wassel, Bryan. “Nordstrom Launches Livestream Shopping Channel.” Retail
TouchPoints, 17 Mar. 2021, www.retailtouchpoints.com/features/news-
briefs/nordstrom-launches-livestream-shopping-channel.