Livestreaming Latest, May 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 three trends we’ve seen in the livestreaming space recently. We also offer examples of notable livestreaming events.

Recent Market Developments

• On April 16, 2021, leading Chinese payment, messaging and social media platform WeChat introduced a livestreaming feature in its latest software update, rewarding content creators through its channels. The new feature helps creators make money through in-video shopping purchases, branded content and virtual gifting by viewers.
• On April 8, 2021, online fitness studio app Moxie raised $6.3 million in a seed+ funding round led by Resolute Ventures, with participation from Bessemer Ventures, Greycroft Ventures, Gokul Rajaram and additional investors. With the funding, Moxie plans to optimize the user experience with a curated selection of top Moxie classes.
• On April 2, 2021, Chicago-based livestreaming company Phenix raised $16.7 million in a Series B round led by sports tech venture capital firm KB Partners with participation from Verizon Ventures and Manheim Investments. The investment will help the company enhance cloud-based, real-time streaming technology, serving clients in sports and media sectors.

Three Trends We’ve Seen Recently

1.  Shareable, Customized Shopping Lists Customized shopping lists can be shared in livestream sessions, with video hosts recommending products from across multiple brands or retailers to viewers by sharing a link to a responsive digital storefront.

• On April 2, 2021, Macy’s collaborated with Refinery29and tech partner Everywear to host a session on Instagram Live showcasing current fashion trends and make-up tips. Hosted by Refinery29 editors, livestream session audiences could view personal picks through a customized listing shared by the stylist during the livestream.

[caption id="attachment_127163" align="aligncenter" width="726"] Editor can create a live and responsive digital storefront that is updated in real time as products are featured in the livestream
Source: Macy’s [/caption]   2.  One-to-One In-Store Consultations Live consultations add a personal touch to the digital shopping experience, boosting consumer engagement. Replicating the in-store experience, brands and retailers can use associates as hosts to offer brand and product expertise and personalized recommendations to consumers, thus driving conversion.

• On February 13, 2021, UK-based retailer Marks & Spencer launched a video-chat furniture shopping service online in partnership with Go InStore, a live video tech provider in the UK. The service links shoppers to in-store sofa experts, with the associates walking customers around the M&S White City, London, store to help them browse the retailer’s ranges and fabrics, colors, etc. The store has received positive feedback from customers about the service, according to Clive Hudson, Senior Programme Manager of Digital Stores at Marks & Spencer.

[caption id="attachment_127164" align="aligncenter" width="725"] Digital consultations are hosted by in-store associates
Source: Marks & Spencer [/caption]  

• On March 18, 2021, Nordstrom introduced a one-to-one virtual styling service on its website in order to meet customer demand for personal appointments with store stylists. In its third quarter of fiscal 2020, virtual styling at Nordstrom accounted for 30% of all styling appointments, according to the company.

[caption id="attachment_127165" align="aligncenter" width="641"] One-to-one virtual styling session with Nordstrom women's fashion expert
Source: Nordstrom Live [/caption]   3.  Virtual Community Shoppers have been relying on digital connections amid pandemic-led store closures, resulting in the emergence of online social communities—via Instagram, TikTok, Facebook, Snapchat or other channels—that connect like-minded consumers. Brands and retailers can participate in or launch community platforms to drive brand engagement and extend their consumer reach.

• Newness, a startup co-founded by former Twitch employees in 2019, is a livestreaming platform for the beauty community. Content creators and makeup artists can connect with their social network on the platform, sharing makeup and skincare tips as well as their personal stories.

[caption id="attachment_127166" align="aligncenter" width="725"] Beauty brand Tatcha launched its first live event on Newness on March 4, 2021
Source: Newness [/caption]  

• Unbothered is community for Black women created by Refinery29. On January 2021, the platform hosted “Wash Day,” a livestreaming event that featured tutorials, conversations and workshops around hair care and self-care. Wash Day started as an editorial beauty series that received a positive response, which prompted the media brand to expand upon the concept, creating this day-long virtual event. Presented by natural haircare brand Emerge, the virtual event was free to all via Refinery29’s Facebook Live channel.

[caption id="attachment_127167" align="aligncenter" width="725"] Before the event, attendees posted photos of their own wash days, used and shared custom Wash Day Instagram filters and organically created their own reels
Source: Refinery29 [/caption]  

Other Notable Livestreaming Events

• In late April 2021, shoe brand Aldo held its first live shopping event on its website, which was hosted by a celebrity stylist Mimi Cuttrell and content creator Nate Wyatt and featured the brand’s new products.

[caption id="attachment_127168" align="aligncenter" width="725"] Two hosts introduce a range of Aldo’s products
Source: Aldo [/caption]  

• On April 13, 2021, Avon held its fourth live shopping event on its website, having held its first pilot shoppable livestream in August 2020. The company’s event was supported by tech from live-shopping software solutions provider LiSA. The 30-minute session was hosted by an Avon representative who demonstrated various products and offered exclusive discounts to viewers, as well as using lucky polls and giveaways to boost viewer engagement.

[caption id="attachment_127169" align="aligncenter" width="725"] An Avon expert demonstrates various lipsticks during Avon’s live shopping event, hosted from the company’s Studio 1886 in Los Angeles, US
Source: Avon [/caption]  

• On April 13, 2021, France-based retailer Carrefour organized a digital wine fair alongside in-house brand Redpil. The live event featured 10 French wines and champagnes tasted by wine expert Pascal Maurice. Viewers could use an exclusive promotional code to access a €20 discount on orders over €150 during a limited period.
• On April 30, 2021, Pecto hosted “Facebook Live: The Perfect Fit,” a pet fashion show and dog adoption drive, via Facebook Shops. Hosted by influencer Arielle Vandenberg, the shoppable livestream featured merchandise from Petco’s private labels, Youly and Reddy, modeled by rescue dogs from the LA Animal Services. The livestream shopping session combined interactions and charitable elements with more than 304,000 viewers, according to the company.

[caption id="attachment_127170" align="aligncenter" width="725"] Host Arielle Vandenberg hosts a pet fashion show
Source: Pecto’s Facebook account [/caption]  

• Fashion retailer Peek & Cloppenburg (Düsseldorf) held its first live shopping event on its website on April 22, 2021. The session was moderated by German television presenter Steffi Brungs and featured two company buyers sharing their favorite items and fashion trends.
• Amazon-owned shoe brand Zappos worked with influencer-based broadcasting startup Buywith to host a shoppable livestream on its website on April 12, 2021. The livestream was led by celebrity Hailey Bieber’s stylist, Maeve Reilly, who shared her picks through browsing Zappos’ site.

What We Think

Livestreaming e-commerce has accelerated due to the Covid-19 pandemic, and more brands and retailers around the world are looking to use the format to connect with consumers digitally and provide a personalized shopping experience. Implications for Brands/Retailers

• Brands and retailers should look to build relationships with loyal viewers, which begins with targeting and connecting with consumers through relevant platforms and communities.
• Livestreaming production budgets can be high, so new entrants need to investigate the content, hosts and platforms that would attract responsive viewers and drive conversion.
• Brands and retailers can participate in or launch community platforms to drive brand engagement and extend their consumer reach.

Implications for Technology Vendors

• As more e-commerce sites add live features, tech companies should offer solutions for brands and retailers to connect their live feed with multiple channels.
• Data on livestreaming performances will help brands improve their marketing strategy and provide better content for consumers. This presents opportunities for tech companies to provide data-capturing solutions that give retailers competitive insights on enhancing their program.
• Livestream shopping is still in its infancy in the West, with social media channels’ live shopping features not yet well developed. There is therefore opportunity for technology companies to be innovative in this space to make the experience more seamless.