Retail-Tech Landscape: Livestreaming E-Commerce

Coresight Research has identified livestreaming e-commerce as one of the key trends to watch in retail, driven by the Covid-19 pandemic-led shift to e-commerce. Livestreams are channeled through social media, marketplaces and owned media. Livestreaming brings elements of the in-store shopping experience to the online channel, giving brands and retailers the opportunity to expand their reach, connect with consumers, educate them about their products and influence their purchase decisions. Livestreaming e-commerce is well established in China and is now becoming an essential marketing tool for brands and retailers elsewhere in the world, as it provides interactive content in real time, directly engaging consumers. Brands and retailers worldwide are racing to add live, interactive video experiences into their marketing strategy to remain competitive in the digital channel. This Retail-Tech Landscape covers selected startups globally whose technology solutions support brands and retailers in launching and developing livestreaming capabilities. We have identified 30 startups across three regions:

• Asia
• Europe
• North America

Key Trends in Livestreaming E-Commerce Below, we highlight three key industry trends in the live shopping space. Social media platforms are enabling live shopping A Coresight Research survey of US consumers conducted in March 2021 found that awareness of, and participation in, livestreaming e-commerce is fairly low among US consumers—with less than one-third of consumers having watched a shoppable livestream. This presents opportunity for brands and retailers to tap an underpenetrated market. Among the livestreaming e-commerce channels, social media platforms win the most consumers in the US: Our survey found that 29.2% of US livestream shoppers reported that they made purchases through Facebook Live and 29.8% through Instagram Live—making these platforms among the top three most popular for livestreaming e-commerce (with the other being YouTube, at 30.2%). Recently, social media giants Facebook, Instagram and Pinterest have added new live shopping features to increase their penetration of the live shopping market and reinvent the in-stream purchasing process:

• Facebook’s “Live Shopping Fridays” series comprised livestreams that featured in-stream checkout. The format enabled three brands from the beauty, fashion and skincare sectors to showcase their latest products every Friday until July 16, 2021.
• Instagram has added a “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.
• Pinterest staged a three-day virtual shopping event in May 2021, 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.

Various product categories are gaining traction in the livestreaming channel Brands and retailers in the consumer electronics, appliances and household goods sectors (such as LG Electronics and MediaMarkt) are now venturing into the live shopping format, following the success of beauty and apparel companies through the channel. Larger brands and retailers are enabling live shopping via their own websites Livestream shopping is more experiential than conventional e-commerce, meeting increasing consumer demand for both entertainment and convenience. The integration of in-app purchase functionality means that shoppers can make a purchase directly through clickable video links without being redirected to separate e-commerce sites. Brands and retailers that were early adopters of livestreaming e-commerce and have more of an established livestreaming presence—including Longaberger, Samsung and Ulta Beauty—have begun to host their own livestream sessions via their websites to better provide a seamless and immersive shopping experience.

Retail-Tech Landscape: Livestreaming E-Commerce—Infographic

Retail-Tech Landscape: Livestreaming E-Commerce, by Category

Asia [wpdatatable id=1195 table_view=regular] Europe    [wpdatatable id=1196 table_view=regular] North America [wpdatatable id=1197 table_view=regular]