Livestreaming Latest, January 2022

Live shopping has taken off during the pandemic and continues to pick up steam each month. The Coresight Research Livestreaming Latest series provides regular updates on the variety of approaches that are emerging around the world, across different retail sectors.

We present recent market developments and discuss three trends we have seen in the livestreaming space recently. We also offer examples of notable livestreaming events.

Recent Market Developments

• On December 1, 2021, TikTok launched new creator monetization features: Tips and Video Gifts allow viewers to send direct payments and virtual gifts to creators outside of live broadcasts. TikTok rolled out the new functions as part of its new "Creator Next" initiative, which brings together all the platform’s monetization opportunities for creators.
• On December 6, 2021, Dubai-based social commerce platform ShopperON launched in the UAE market. The marketplace allows users to connect with brands, retailers and wholesalers to purchase items through livestreams, and also allows brands and retailers to host their own shopping channels on the platform.
• On December 7, 2021, Swedish live video shopping provider Bambuser launched its latest new feature, One-to-Few streaming, which allows retailers to connect with their most loyal customers. During its soft launch phase, Bambuser is testing the feature with selected partners, including Swedish electronics retailer Kjell & Co.
• On December 9, 2021, Meta (formerly Facebook) released a number of updates to Facebook Live that allow creators to engage with fans in new ways during their live broadcasts. New features include polls, four-person co-broadcasting, new commenting features and a new post format, which allows creators to share their livestreams directly to Facebook Stories to improve their visibility.
• On December 9, 2021, Berlin-based live video shopping startup Livebuy closed a €4.9 million ($5.5 million) seed funding round, led by RTP Global and other business angels. With clients including Lidl and consumer electronics retailer MediaMarktSaturn and creators including Jessica Alba, Kylie Jenner and Miranda Kerr already using its app, the innovator intends to continue developing its live video shopping experiences.
• On December 9, 2021, Singapore-based live selling startup Upmesh completed a $7.5 million pre-series A round led by Monk’s Hill Ventures, bringing its total funding to $10.5 million. The company plans to use this funding to expand its presence in Southeast Asia and launch its first Instagram live selling app.
• On December 15, 2021, e-commerce marketplace The List launched a new app featuring livestreams from global luxury brands and retailers. The List has raised by $3.5 million in seed funding backed by a group including American Designer and Rachel Zoe, who is both an investor and advisor to the New York-based company. The company was founded in 2016 and works with professional sellers providing hard-to-find items.
• On December 15, 2021, beauty-focused live shopping app Supergreat raised $20 million in a round led by Greenoaks and joined by Shopify and existing investors including Benchmark, Shrug Capital, Third Kind, Thrive Capital and TQ Ventures. It is Shopify’s first investment in the creator economy, and follows a beta test in which Supergreat offered one-click integration with businesses on Shopify.
• On December 16, 2021, content creation and video production software company Switcher announced a partnership with Livescale, a global live shopping solution company, to offer a customized and brand-owned live online shopping experience. The collaborations bring new features for users to produce high-quality shopping streams featuring multiple camera angles, remote guests, prerecorded video insertion and graphic overlays.
• On December 20, 2021, China’s “queen of livestreaming” Viya was accused by the Chinese government of evading around $110 million in tax from 2019 to 2020, and ordered to pay a fine of around $210 million, according to the State Taxation Administration. Although she has apologized and accepted the fine, Viya's account on the microblogging platform Weibo, which had 18 million followers, has been removed, and media reports suggest her Taobao marketplace account, which had over 80 million followers, has been suspended. China's recent record fine for a top celebrity livestreamer signals that the authorities are increasing their focus on high-income individuals, but a formal tax system revamp is necessary to close a tax evasion loophole in the sector.
• On December 22, 2021, Los Angeles-based short video company Triller announced plans to merge with adtech company SeaChange International in the first quarter of 2022; the combined company will have a valuation of approximately $5 billion. Triller was launched in 2015 and the app has been downloaded more than 250 million times, including by celebrity users Alicia Keys, Justin Bieber, Marshmello and The Weeknd,. The combined company will be named TrillerVerz Corp.

Three Trends We’ve Seen Recently

1.  Monetization Tools Are Fueling a Surge in Creators

Marketers are increasingly investing in creators with smaller and highly engaged followings; the marketing allocation has shifted toward niche communities. Video and social platforms like YouTube and TikTok have introduced creator funds, and now are introducing new monetization features for creators Livestreaming creators can make money through a diverse and rapidly growing portfolio of options—from receiving ad revenue and tips, to creating sponsored and premium content and selling merchandise, channel memberships and subscriptions.

• On December 1, 2021, TikTok introduced a set of new features for its creators to generate revenue from their content. While the short-form video platform already supported virtual gifts during livestreams, its new Tips and Video Gifts features allow creators to accept payments and gifts when they are not livestreaming. These functions rolled out along within the “Creator Next” program, which brings together all TikTok’s creator monetization tools. The move came about as the race to capture creator talent is heating up across the livestreaming landscape. Leading social platforms Facebook, Instagram, Pinterest, Snap and YouTube are all offering funds to attract and retain creators.

[caption id="attachment_139312" align="aligncenter" width="450"] TikTok’s creator toolkit
Source: TikTok[/caption]  

• On December 7, 2021, Meta rolled out a suite of new features to allow creators to interact with live audiences and monetize their content. The company is trialing a new mechanism whereby users can buy "Stars" to tip creators during livestreams using Facebook Pay. Additional creator tools include the capacity to share external website links, support for more co-hosts and a professional mode profile for creators to better engage with their followers. The platform has also launched its “Stars Fest” program, highlighting a range of creator livestream events throughout the month.

[caption id="attachment_139313" align="aligncenter" width="450"] Facebook Live viewers can purchase Stars to tip livestreaming hosts
Source: Facebook Live[/caption]  

2.  Social Media Giants’ Livestreaming Events Are Attracting Brands and Shoppers Alike

Brands and retailers have flocked to a series of new live shopping marathons on social media platforms like TikTok and Instagram to bolster their young audience. Companies partnered with influencers to improve retention and streamline the sales process, while viewers were able to instantly purchase the products they discover without leaving the platform.

• On December 8–9, 2021, TikTok UK held a two-day livestream shopping event called “On Trend,” which featured in-platform purchase capabilities for viewers. This built-in live shopping feature was developed in collaboration with Shopify and also enabled merchants to use TikTok for marketing campaigns developed directly from the Shopify dashboard. The sessions were hosted by a variety of celebrities and influencers with participating brands and retailers including Charlotte Tilbury, JD Sports, Lookfantastic and L’Oréal Paris

[caption id="attachment_139314" align="aligncenter" width="450"] TikTok’s UK two-day event schedule, packed with shoppable live sessions
Source: TikTok UK[/caption]  

• On December 7–15, 2021, Instagram ran a series of live shopping events called “Holiday Pop-Up Shop LIVE” on its app featuring creators and personalities like Nia Sioux and Lisa Rinna. Product categories included beauty, fashion and lifestyle. Viewers were able to click on the host page's profile to access the Shop tab and browse all products for sale.

[caption id="attachment_139315" align="aligncenter" width="450"] Part of Instagram Live’s holiday shopping schedule
Source: Instagram Live[/caption]  

3.  Tech Companies’ Partnerships Are Reshaping the Competitive Landscape

As livestream shopping becomes more widespread, e-commerce platforms and livestreaming tech providers have joined forces to expand live shopping capabilities, provide seamless commerce tools and monetize creators’ content. New shoppable ad videos, automated inventory solutions and in-video purchase are innovations they have brought into the space.

• On December 9, 2021, French live video shopping provider Caast.TV announced a partnership with a French cloud-based e-commerce software company Mirakl to enable merchants to embed seamless livestreaming e-commerce content on their websites. The partnership has enabled the retail giant Carrefour to accelerate its live commerce strategy, with its website now seeing 18 million unique visitors per month. The new live commerce solution has also been employed by leading retailers in France including Boulanger, Cultura, Fnac Darty and Kiabi, with automated inventory syndicating and customized videos integrated into each relevant product page.

[caption id="attachment_139316" align="aligncenter" width="450"] French live video tech company Caast.TV’s provides solutions for a wide range of brands and retailers
Source: Caast.TV[/caption]  

• On December 27, 2021, Chinese short video platform Kuaishou announced a strategic partnership with China’s largest on-demand food delivery firm, Meituan, to facilitate its expansion into local lifestyle services. Meituan established a mini program on Kuaishou to allow its users to navigate products, services and coupons provided by Meituan merchants. The partnership was also seen as a response to the central government’s push for interoperability among tech companies, and comes after a difficult year in China’s Internet industry. ByteDance’s Douyin has been rapidly developing services that include, for example, food recommendations by Internet celebrities through a group-buying link on the video page or in the comments section, a service very similar to that offered by Meituan’s Dazhong Dianping.

[caption id="attachment_139317" align="aligncenter" width="250"] Meituan’s mini program on Kuaishou, with a range of local services available
Source: Kuaishou[/caption]  

Other Notable Livestreaming Events

• On December 7, 2021, Foot Locker launched its first live shopping event. The livestream sessions were hosted on Facebook by influencer Marissa Hill and featured the new Melody Ehsani women's collection. Consumers could click products links in the video and finalize their purchases externally on the Foot Locker website. With beauty and clothing brands and retailers seeing success as the most popular live selling categories, we see opportunities for footwear retailers to follow suit and jump aboard the livestreaming bandwagon.

[caption id="attachment_139318" align="aligncenter" width="450"] Foot Locker’s first live shopping session on Facebook Live
Source: Facebook Live[/caption]  

• On December 7, 2021, French children's clothing and underwear brand Petit Bateau entered the live shopping space by working with livestreaming solution provider Caast.TV on its own website. Hosted by Célia Balança, the brand’s category manager, and Mickael Sole, the La Défense store manager, the show presented a wide range of popular children’s clothing collections.

[caption id="attachment_139319" align="aligncenter" width="450"] Petit Bateau’s first live shopping session on its website
Source: Company’s website[/caption]  

• On December 8, 2021, US pet retailer Petco launched a dedicated team to update and maintain its live shopping calendar. At the forefront of live commerce via multiple live shopping events, the company leveraged celebrities and influencers including Sarah Hyland and Wells Adams for its holiday shopping event to share gift ideas.

[caption id="attachment_139320" align="aligncenter" width="450"] Sarah Hyland and Wells Adams hosted a live shopping session for Petco
Source: Facebook Live[/caption]  

• On December 13, 2021, French telecom operator Orange Luxembourg organized its first live shopping session on its own website. After positive feedback from its one-on-one video shopping feature, launched in March 2021, the company chose to deepen its digital offerings with one-to-many livestreaming services. Hosted by two Orange sales consultants from the operator's studio in Bertrange, the live session allowed customers to discover a great selection of gift ideas for the holidays during a one-hour live session in several languages.

[caption id="attachment_139321" align="aligncenter" width="450"] Orange’s associates hosted the one-hour live event
Source: Company Website[/caption]  

• On December 14, 2021, Walmart announced plans to strengthen its live shopping offering through a partnership with Talkshoplive. Walmart’s livestream shoppers can make purchases as items appear on-screen from within the same page: Cutting out purchase redirection means consumers can shop without missing out on the rest of the show and eliminates potential friction points from click-through links.

[caption id="attachment_139322" align="aligncenter" width="450"] A live session hosted by Ree Drummond through Talkshoplive on December 17, 2021
Source: Company Website/Talkshoplive[/caption]  

• On December 15, 2021, French grocery giant Carrefour introduced its first live shopping offerings in Spain, featuring well-known journalist Toñi Moreno and wine expert Sergio Tavira, presenting a selection of its best wines with discounted prices. Presenters discussed grape types, trends and wineries, answering questions from the audience during the livestreaming.

[caption id="attachment_139323" align="aligncenter" width="450"] Wine expert Sergio Tavira and journalist Toñi Moreno guided Carrefour's first Spanish livestream
Source: Company website[/caption]  

• On December 15, 2021, H&M-owned apparel brand & Other Stories launched its first live shopping session on its website, in partnership with Bambuser. The show was branded 'The Celebration Edit' and hosted by sisters Tsutsumi and Alexandra Hoang.

[caption id="attachment_139324" align="aligncenter" width="450"] & Other Stories’ first live shopping session on its website
Source: Company website[/caption]  

• On December 16, 2021, fashion retailer H&M expanded its live shopping offering in the Netherlands following a successful debut by its brand Monki in 2020. The brand worked with influencer Nikkie de Jager and H&M stylists Jay Kusters and Charlotte de Vries to promote featured holiday items that viewers could buy on H&M’s website. The video recording is also hosted on its website, featuring links for post-livestream shopping.
• On December 27, 2021, Malaysian luxury lifestyle retailer Valiram, one of Southeast Asia’s leading luxury e-commerce platforms, announced a partnership with Singapore-based livestreaming solution provider BeLive for live shopping events on its website. The retailer hopes to use live shopping to drive sales of its TUMI Fall/Winter 2021 products across backpacks, premium luggage and lifestyle accessories.
• On December 27, 2021, French health and wellness company Comme J'aime, which specializes in diet and weight loss programs, premiered its first live shopping campaign on its website, hosted by Benjamin Castaldi and its founder Bernard Canetti. The show attracted thousands of live participants looking to learn insights and expertise from the health experts.

[caption id="attachment_139325" align="aligncenter" width="450"] Comme J’aime’s first live shopping session on its website
Source: Company website[/caption]  

What We Think

As increasing opportunities are appearing for brands to offer exclusive giveaways and lean on influencer recommendations to promote their products, the shift from proprietary livestreaming to creator-led live commerce has triggered fundamental disruptions and continuous changes in the live shopping space. To adapt to the fast-developing market, brands and retailers should reset and adjust their livestreaming operations, and build capabilities to connect selected products to high-value customers through optimal channels with fitting content and messaging.

Implications for Brands and Retailers

• Brands and retailers should improve data capabilities to gain deep and accurate insights and acquire more leads from live shopping sessions to better understand customers’ interests.
• Companies need to establish dedicated teams to determine growth targets and stakeholder support is needed with clear roles, responsibilities and expectations to ensure effective collaboration on live campaign execution.
• Brands and retailers must establish an agile e-commerce team that can oversee assortment across distribution channels and allocate products in real time under a centralized inventory management system.