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Live commerce arva jabalpurwala-digital digest 3

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Live Commerce is best to achieve extraordinary reach and impact. This is the most dynamic channel and experiment to get best out of it.

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LIVE COMMERCE Arva Jabalpurwala |
Introduction Live commerce is a blend of ecommerce and on the spot purchase. It enables retailers and brands to connect better with audience and create greater value. It is an excellent tool to boost customer engagement and sales. Started by Alibaba is 2016, the Taobao live generated $7.5 bn total transaction value. They linked an online livestream with e-commerce store and that created a huge buzz across digital platforms. It was a unique and highly experimental idea and led to huge profitability to Alibaba for Singles day sale in 2020. Live commerce is the next wave of e-commerce future.
Creating Value for Brands and Retailers The best part about live streaming is it is attention grabbing. It can keep viewers entertained, immersed and watching for long. It accelerated the decision journey of customers by creating sense of urgency. Time-tactics like one-off coupons have led to ten times higher than normal e-commerce. It makes the brand stand apart if done properly and enhances its image. Young people are very drawn to this as they search for innovative shopping experiences. This has led to younger customer market increasing up to 20% for certain brands. Positioning Appeal Purchase Awareness 30% Conversion Rates By accelerating purchasing decision Live Streaming also helps in better positioning of the brand,
The below image reflects how popular livestreaming is in different categories.
Current Scenario Most attractive targets are Gen Z and Millennials, however middle aged and seniors have also started to take interest. Taoboa is the worlds biggest live stream player with market share of 35%. 30% Chinese internet users used live stream by March 2020. Following Chinese many western brands have ventured into this arena starting with beauty brand Douglas and fashion brand Tommy Hilfiger. They both achieved huge success where Douglas saw conversion rates up to 40% and Tommy sold 1,3k hoodies in 2 minutes! Walmart joined the band wagon in December 2020 and increased its TikTok follower base by 25%. Recently various brands have been leveraging this recent trends and seeing astonishing results.
Best Practices BasicFor people just starting, keep it infrequent and very low no. of products. Use already established platform like TikTok, Facebook, Amazon etc. Use KPIs like no. of views, conversion rates and best-selling products to gauge performance. Good As you become more familiar with this practice increase the number of such events with proper schedule. In order to own the customer now you can start integrating the live stream to your own website. Using real-time predictive analytics to drive insights will be useful. Start setting up automated performance marketing campaigns to drive traffic. Great You can now start experimenting with various formats like chat show, webinars etc Use AI to get real-time prompts to optimize the live stream The frequency of the livestream should have increased with proper schedules. To make the live stream more interactive technology like AR and VR can be used.
Future Of Live Commerce. Compared to mega and macro influencers, nano-influencers have better engagement rates and are less expensive. New influencers form a better connection with audience can will be best for live streams. As we saw above, brands into beauty and fashion have been leveraging it a lot, in future sectors like engineering, healthcare, finance etc will move in. Eg Health care can provide consultation and appointments live. AR and VR will be big things People will be able to speak to host face to face like they are in store. Ulta beauty already experimented this for virtual try-ons.
Considerations Before Starting A Live Stream The product stage is very important to consider. It can be a new product, best seller or old stock. Such shows have many impulse buyers. They are one- time shoppers, and it will take work to keep them loyal. Also, shoppers n such events come from very different demographic than the brands actual targeting. Make sure you know what your target audience is attracted to what they want and who makes them up. It will take investment to dig into data and use mature data analytics to get accurate information. Millennials, boomers and Gen Z spend a lot of fashion and beauty and Gen X spends more on Luxury.( Appendix) Make sure that the products look good on small and large screen, positioned as value for money. Many different formats like- Tutorials, Interviews and Behind the scenes can be experimented with. Make sure to add games, quizzes and give aways. Also, invest well on technology, tracking and marketing. Use and omnichannel approach, include count down clocks, place ads. Keep it flexible enough to act quickly on data. Who stayed for 10 seconds and who for 10 minutes is important to know. Finally, seamless and fast technology will help to get the best results.
Resources Arora, Arun, et al. It's Showtime! How Live Commerce Is Transforming the Shopping Experience. McKinsey & Company, McKinsey & Company, 22 July 2021, https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/its- showtime-how-live-commerce-is-transforming-the-shopping-experience.
Appendix.
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Live commerce arva jabalpurwala-digital digest 3

  • 2. Introduction Live commerce is a blend of ecommerce and on the spot purchase. It enables retailers and brands to connect better with audience and create greater value. It is an excellent tool to boost customer engagement and sales. Started by Alibaba is 2016, the Taobao live generated $7.5 bn total transaction value. They linked an online livestream with e-commerce store and that created a huge buzz across digital platforms. It was a unique and highly experimental idea and led to huge profitability to Alibaba for Singles day sale in 2020. Live commerce is the next wave of e-commerce future.
  • 3. Creating Value for Brands and Retailers The best part about live streaming is it is attention grabbing. It can keep viewers entertained, immersed and watching for long. It accelerated the decision journey of customers by creating sense of urgency. Time-tactics like one-off coupons have led to ten times higher than normal e-commerce. It makes the brand stand apart if done properly and enhances its image. Young people are very drawn to this as they search for innovative shopping experiences. This has led to younger customer market increasing up to 20% for certain brands. Positioning Appeal Purchase Awareness 30% Conversion Rates By accelerating purchasing decision Live Streaming also helps in better positioning of the brand,
  • 4. The below image reflects how popular livestreaming is in different categories.
  • 5. Current Scenario Most attractive targets are Gen Z and Millennials, however middle aged and seniors have also started to take interest. Taoboa is the worlds biggest live stream player with market share of 35%. 30% Chinese internet users used live stream by March 2020. Following Chinese many western brands have ventured into this arena starting with beauty brand Douglas and fashion brand Tommy Hilfiger. They both achieved huge success where Douglas saw conversion rates up to 40% and Tommy sold 1,3k hoodies in 2 minutes! Walmart joined the band wagon in December 2020 and increased its TikTok follower base by 25%. Recently various brands have been leveraging this recent trends and seeing astonishing results.
  • 6. Best Practices BasicFor people just starting, keep it infrequent and very low no. of products. Use already established platform like TikTok, Facebook, Amazon etc. Use KPIs like no. of views, conversion rates and best-selling products to gauge performance. Good As you become more familiar with this practice increase the number of such events with proper schedule. In order to own the customer now you can start integrating the live stream to your own website. Using real-time predictive analytics to drive insights will be useful. Start setting up automated performance marketing campaigns to drive traffic. Great You can now start experimenting with various formats like chat show, webinars etc Use AI to get real-time prompts to optimize the live stream The frequency of the livestream should have increased with proper schedules. To make the live stream more interactive technology like AR and VR can be used.
  • 7. Future Of Live Commerce. Compared to mega and macro influencers, nano-influencers have better engagement rates and are less expensive. New influencers form a better connection with audience can will be best for live streams. As we saw above, brands into beauty and fashion have been leveraging it a lot, in future sectors like engineering, healthcare, finance etc will move in. Eg Health care can provide consultation and appointments live. AR and VR will be big things People will be able to speak to host face to face like they are in store. Ulta beauty already experimented this for virtual try-ons.
  • 8. Considerations Before Starting A Live Stream The product stage is very important to consider. It can be a new product, best seller or old stock. Such shows have many impulse buyers. They are one- time shoppers, and it will take work to keep them loyal. Also, shoppers n such events come from very different demographic than the brands actual targeting. Make sure you know what your target audience is attracted to what they want and who makes them up. It will take investment to dig into data and use mature data analytics to get accurate information. Millennials, boomers and Gen Z spend a lot of fashion and beauty and Gen X spends more on Luxury.( Appendix) Make sure that the products look good on small and large screen, positioned as value for money. Many different formats like- Tutorials, Interviews and Behind the scenes can be experimented with. Make sure to add games, quizzes and give aways. Also, invest well on technology, tracking and marketing. Use and omnichannel approach, include count down clocks, place ads. Keep it flexible enough to act quickly on data. Who stayed for 10 seconds and who for 10 minutes is important to know. Finally, seamless and fast technology will help to get the best results.
  • 9. Resources Arora, Arun, et al. It's Showtime! How Live Commerce Is Transforming the Shopping Experience. McKinsey & Company, McKinsey & Company, 22 July 2021, https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/its- showtime-how-live-commerce-is-transforming-the-shopping-experience.