DIpil Das
Livestreaming Latest, June 2021
Brands and retailers worldwide are racing to add live, interactive video experiences into their marketing strategy to remain competitive in the digital channel—particularly following the Covid-19 pandemic-led shift to e-commerce. 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 four trends we’ve seen in the livestreaming space recently. We also offer examples of notable livestreaming events.Recent Market Developments
- On May 25, 2021, US collectibles live shopping marketplace Whatnot raised $50 million in a Series B round led by Anu Hariharan from Y Combinator Continuity, which has previously invested in Coinbase, DoorDash and Stripe. Whatnot operates as a traditional online marketplace on a similar model to eBay, but investors have been drawn to the platform in large part due to its live shopping experience, which allows sellers to host livestream sessions and connect with communities and fandoms in real time.
- On May 21, 2021, Chinese Internet technology company ByteDance finalized its multimillion-dollar investment into US influencer marketing startup Real Hype, which will see RealHype support US celebrities and creators on video-sharing and social networking platform Douyin.
- On May 18, 2021, in its first-quarter 2021 earnings call, Macy's confirmed that it is developing live video shopping to enable vendors and store colleagues to host live events, aiming to make online shopping as social and fun as in-person.
- On May 17, 2021, live shopping technology provider Bambuser acquired Relatable, a hybrid creative and tech agency specializing in influencer marketing, for $24 million. Combining livestream e-commerce expertise with influencer resources, the company aims to offer brands and retailers a full package of services to execute measurable, scalable and effective live campaigns.
- On May 14, 2021, Chinese e-commerce giant JD.com deepened its partnership with Douyin by opening a store on the platform. Users on Douyin can view products, make purchases and access after-sale services without switching apps.
- On May 11, 2021, YouTube announced a $100 million fund to reward YouTube Shorts creators who contribute the most viewed and engaging content over 2021 and 2022. YouTube says it will reach out each month to creators whose videos exceed certain milestones.
- On May 7, 2021, China’s leading messaging app WeChat unveiled more flexible features for livestream creators on its short-video Channels function. Creators can now offer multiple products in one livestream to offer shoppers more options.
- On May 4, 2021, Indian livestreaming social commerce startup Kiko TV secured pre-series funding from Venture Catalysts, along with SOSV and Global Ventures. The company intends to use the capital to speed up the seller onboarding process, develop the product and expand the team.
- On May 4, 2021, Australian startup Carted, founded in 2020, raised $13 million seed funding from investors led by Blackbird Ventures, to build a flexible e-commerce API (application programming interface) that will allow a creator or business to generate revenue by selling products from other brands without intermediaries/affiliate links.
Four Trends We’ve Seen Recently
1. US Tech Giants Are Reinventing In-Stream Purchasing The integration of in-stream purchasing tools is enabling platforms to increase sales conversion through livestreaming sessions, without requiring viewers to leave the app to make a purchase.- On May 26, 2021, Instagram launched a new “product drop” feature to connect online shoppers to featured products on its app. Items in the drop listing are only available in limited quantities or for a limited time, in order to stimulate demand. In the “Shop” tab, users can browse all the latest product launches and upcoming launches. Additionally, a brand’s “Live” shopping programs can be scheduled to align with their product drop. An on-screen countdown is shown, ending in a confetti animation when a brand’s drop goes live.
The new “product drop” feature on Instagram’s Shop tab Source: Instagram [/caption]
- On May 24–26, 2021, Pinterest staged a three-day virtual shopping event during which it tested in-app product browsing and purchasing. It featured live sessions from 21 creators, including beauty expert Jonathan Van Ness, fashion designer Rebecca Minkoff, food creator Grossy Pelosi and other influencers. Users accessed the event schedule via a new “Live” tab inside the Pinterest app.
Influencer Erin Parsons showcases vintage accessories to viewers, who can leave comments in real time Source: Pinterest [/caption]
- On May 18, 2021, Facebook began its new “Live Shopping Fridays”—livestreams featuring in-stream checkout. The format is enabling three brands from the beauty, fashion and skincare sectors to showcase their latest products every Friday until July 16, 2021. Shoppers can view the live shoppable videos on each brand’s Facebook page or by visiting the “Shop” tab.
Sephora’s beauty expert shares her favorite beauty items on Facebook Live on May 21, 2021 Source: Facebook [/caption] 2. Live Shopping Is Expanding into More Sectors Shoppers’ enthusiasm for live shopping has encouraged retailers in the electronics, home decorations and apparel sectors to develop livestreams. Many brands and retailers are making their livestreams available through multiple channels, such as YouTube, social media platforms and their own websites.
- On May 26, 2021, LG Electronics US began its live shopping series, “The Upgrade,” broadcasting simultaneously on its website, Instagram Live and Facebook Live. Created at the new production studio at LG's North American headquarters, the live session offers viewers an engaging direct-to-consumer channel to purchase LG products within its webpage.
The pilot of LG’s The Upgrade, hosted by YouTube influencers on May 26, 2021 Source: LG’s Instagram account [/caption]
- On May 14, 2021, MediaMarkt, one of Europe’s dominant electronics retailers, hosted an “Instant Shopping” event. Streamed through the MediaMarkt website, the event featured technical experts, influencers and trend scouts sharing their knowledge and offering exclusive promotions. Shoppers were able to ask questions in the livestream, add products to their shopping cart and buy them instantly.
MediaMarkt’s Instant Shopping session on May 14, 2021 Source: MediaMarkt [/caption]
- On May 10, 2021, leading German publisher and media retailer Weltbild piloted its new digital format, “Weltbild Live.” In the 60-minute show, host Matthias Sturm presented exclusive designer items. A link at the bottom of the screen allowed viewers to click and buy at any time.
- On May 2, 2021, German international discount supermarket Lidl hosted its first live shopping event with models Barbara Meier and Johanna Klum. The show highlighted sustainable fashion brands including Lidl-owned brands Esmara and Lupilu.
- On May 18, 2021, beauty and lifestyle brand Beekman 1802 announced that it reached its highest sales through livestreaming to date, through its “Blooming Skin Show,” a series that was launched in mid-April. Working with software company Livescale, the brand has set up a regular biweekly schedule of livestreams, which are also broadcast simultaneously through Instagram Live and Facebook Live. Sales during the 60-minute session were 400% higher than the website’s normal sales over a 24-hour period, according to the company.
- On May 3, 2021, home décor and lifestyle brand Longaberger launched a new monthly livestream series through its dedicated Longaberger LIVE livestreaming platform (which was launched in February 2021) with several well-known hosts. Longaberger is expecting livestream promotions to boost monthly sales by 25%–33%, according to Robert D’Loren, Chairman and CEO of Xcel Brands, which acquired Longaberger in 2019.
A Longaberger LIVE livestreamed shopping event Source: Longaberger.com [/caption] 4. Museums Are Embracing Livestreaming Many cultural institutions have developed virtual programs, tours and live events with small budgets and basic technology tools. Through creative partnerships and collaboration, museums have successfully translated traditional visiting into a hybrid social and virtual experience.
- On May 18, 2021, TikTok rolled out its global live museum marathon #MuseumMoment to celebrate International Museum Day. The live culture events included an exclusive virtual tour of 23 museums across 12 countries, and the hashtag #MuseumMoment had received 593.2 million views on TikTok by May 27, 2021.
The TikTok hashtag #MuseumMoment Source: TikTok [/caption]
- On May 18, 2021, the Van Gogh Museum in the Netherlands, in partnership with Chinese e-commerce giant Tencent, launched a mini program and live video stream on social media platform WeChat. Viewers were able to take a virtual tour of the museum and purchase merchandise products via its digital storefront.
The Van Gogh Museum’s live video stream on WeChat on International Museum Day Source: WeChat [/caption]
Other Notable Livestreaming Events
- On May 27, 2021, Walmart launched a live shopping event on Facebook and its own website, in which Food Network influencer Ree Drummond shared her favorite kitchen products from Walmart’s Pioneer Woman Collection.
Walmart’s live shopping session Source: Facebook [/caption]
- On May 25, 2021, UAE-based e-commerce platform 6thStreet.com and Apparel Group announced a partnership with Marsaana, a creative communications agency based in Helsinki, to create interactive 45–60-minute live shopping experiences featuring different brands each week.
- On May 22, 2021, US-based department store retailer Nordstrom, which has already seen live shopping events deliver significant sales growth in the first quarter of 2021, continued its Spring Beauty Trend Show, featuring beauty experts Allan Aponte from Tom Ford, Adriane Pompa from Clinique, Vincent Salinitri from Giorgio Armani and Mali Thomas from Bobbi Brown.
Nordstrom’s Beauty Trend Show: Expressive Eyes Source: Nordstrom [/caption]
- On May 20, 2021, Scandinavian swimwear brand Lindex staged a live shopping summer fashion show, supported by Bambuser and streamed from Virtual Star Studios. Shoppers explored the Lindex Summer Collection in a virtual tour of Scandinavian beaches with 3D photorealistic graphics. The session saw a 55% add-to-cart click rate, 21% higher than the average livestream shopping performance, according to Bambuser.
Lindex’s Summer Collection presented virtually Source: Lindex [/caption]
- On May 9, 2021, American Eagle Outfitters added new features to its AE Live app, enabling customers to shop online without sacrificing traditional in-store experiential elements. The app allows shoppers to schedule online appointments for personalized sessions with brand experts who can help them build their wardrobes. It also provides live video shopping with associates to provide an in-store experience from home.
One-to-one live consulting with AE associates Source: AE Live [/caption]
- On May 7, 2021, Takko Fashion, one of the leading fashion discounters in Europe, hosted a live shopping event on Instagram for the first time. The entire event was produced in-house and presented by Takko Fashion employees. Intended to test sales performance of the livestream format, the campaign was promoted via the company's social media channels and newsletters in order to focus on organic reach. According to Takko Fashion, the live recording reached more than 7,000 viewers and the corresponding IGTV (Instagram) post had been viewed more than 48,460times as of June 14, 2021.
Takko Fashion’s live shopping session Source: Takko Fashion’s Instagram account [/caption]
- On May 6, 2021, French fashion retailer The Kooples launched a live shopping event on its website hosted by in-house stylists, with each featured item displayed on the e-commerce site in real time.
Live shopping show on The Kooples’ website Source: The Kooples [/caption]
- On May 6, 2021, Tango, a global livestreaming platform, launched its #StayStrongIndia campaign to support the community amid the Covid-19 pandemic. The campaign ran throughout the month of May and offered a special virtual gift through the app to reward livestream hosts.
A livestreaming host receiving a virtual reward from a viewer Source: Tango [/caption]
What We Think
Through livestream shopping, brands can reinvent the customer’s shopping journey by integrating the traditional stages of browsing, adding to basket and purchasing into one. Moreover, livestream shopping gives a novel experiential element to e-commerce, adding entertainment, customer interaction and personalization. Implications for Brands and Retailers- As leading tech companies roll out in-stream shopping functions in succession, a seamless shopping experience is consumers’ top priority. Brands and retailers must ensure they offer this, whether they are operating through their own e-commerce platform or other channels.
- Retailers can incorporate live shopping sessions into their own e-commerce websites to drive customer engagement and eventually convert to sales.
- Technology providers should focus on improving the consumer shopping experience to align with retailer’s needs, such as through the integration of in-stream product browsing and purchasing options.
- Technology companies can support brands not only in the setup of livestream hosting setup but also in developing and executing customized marketing strategies.