What’s the Story?

Our The 12 Weeks of Holidays 2021 series counts down to this year’s holiday peak with new thematic research each week. In this report, we discuss three trends that we think will shape livestream shopping in the US this holiday season.

Why It Matters

The holiday season is the peak of the retail year. We predict a 9–10% year-over-year increase in total retail sales for holiday 2021, bringing total US holiday-quarter sales to $1.2 trillion. Although in-store sales remain strong, e-commerce will be a focus for retailers seeking to drive sales during the holiday shopping season.

Livestreaming is particularly important as a way of engaging younger holiday shoppers: According to our 2021 holiday survey, although only 7% of holiday shoppers expect to use livestreaming to make holiday purchases this year, around one in 11 of those in the 18–44 age group expect to use live video shopping for some holiday purchases (9.0% of those aged 18–29 and 9.2% of those aged 30–44); this falls to 4.6% among those aged over 60.

US Livestream Shopping for Holiday 2021: Coresight Research Analysis

We examine three top livestream shopping trends for the 2021 holiday season from major tech platforms, social channels, brands and retailers, and assess the place of livestreaming in the holiday shopping landscape.

1. Social Media Giants Have Unveiled Their Holiday Livestreaming Schedules

YouTube, Pinterest and Facebook are all tapping into the rise of livestreaming ahead of the holiday season. The purchases of many younger shoppers in particular are inspired and driven by social media, and holiday shopping is no different.

• YouTube is expanding its live shopping offering with a week-long schedule, aiming to highlight its creator community. The company drove its advertising revenue up 43% year over year to $7.2 billion in the third quarter of 2021, and is expanding its shopping capabilities with livestreaming events featuring top creators and blue-chip retailers like Sephora, Target and Walmart. The average number of daily first-time creators on YouTube more than doubled in the past year. According to a survey by Google, Publicis and TalkShoppe, 89% of YouTube viewers trust recommendations from creators. With this strong viewer trust and over two million creators participating in the YouTube Partner Program, the company is now eyeing live shopping features that can convert sales leads. On November 15, the platform launched its week-long YouTube Holiday Stream and Shop with a live shopping session hosted by influencers the Merrell Twins, who shared their picks from Walmart, Samsung and Verizon.

[caption id="attachment_136542" align="aligncenter" width="350"] A shoppable YouTube livestream hosted by Simply Nailogical in September 2021
Source: Company website[/caption]  

• Pinterest deepened its involvement with social commerce ahead of the holiday season with the launch of its live shopping channel, Pinterest TV, on its app on November 8. This builds on its previous experiments with streaming: In October, the platform invested $20 million into a Creator Rewards program—an in-product creator monetization program and an expansion of its existing $500,000 Creator Fund. During its three-day virtual shopping sessions in July, it witnessed positive feedback from its users on new features including shoppable pins that let creators tag and sell products to earn a cut of the profit.

[caption id="attachment_136543" align="aligncenter" width="300"] Pinterest’s app (left) and Pinterest TV (right)
Source: Pinterest[/caption]  

• Facebook and Instagram are leaning further into livestreaming in preparation for a busy holiday season. The platforms’ daily live shopping experiences, ongoing since November 1, incorporate exclusive product launches and influencer recommendations to help maximize interest. This builds on its previous live shopping offering, Live Shopping Fridays, which launched in June with the aim of convincing more US shoppers to try live shopping through Facebook. The company has seen strong e-commerce growth in the third quarter, and is now aiming to keep the entire customer journey, from product discovery to purchase, within its apps.

[caption id="attachment_136544" align="aligncenter" width="300"] Facebook pages of Benefit Cosmetic live shopping event, November 7 (left), and Macy’s Live Gift shopping event, November 3 (right)
Source: Facebook[/caption]   2. Retailers Have Started Their Livestreaming Campaigns Early

Inflation, product shortages and shipping delays are prompting many consumers to begin their holiday shopping early this year: A Coresight Research survey found 70% expect to start before Black Friday. Retailers are well aware of this, and are lengthening the duration of seasonal sales events and promoting convenient live shopping to customers who want to order earlier than usual. Pre-sales in particular can be a win-win for brands and their consumers, and early shoppers serve as a focus group whose clicks, swipes and advance orders allow retailers to forecast holiday shopping trends.

• Department store chain Macy’s is strengthening its livestreaming offering in time for the holiday shopping season. The company expects its digital sales, which have nearly doubled in the past four years, to be between $8.35 billion and $8.45 billion, according to its second-quarter earnings presentation in August, and livestream shopping is one of Macy’s key strategies to capture early holiday shoppers. Its new weekly live shopping event, Macy's Live, allows viewers to interact with Macy’s stylists and experts via live chat, view featured products in detail and obtain real-time reviews. Macy’s first introduced its own shoppable livestream platform earlier this year, featuring skincare, fashion and beauty experts and brand representatives to demonstrate useful tips and advice for viewers. Macy’s will close all its stores on Thanksgiving Day, with curbside pickup available in selected areas.

[caption id="attachment_136545" align="aligncenter" width="550"] Macy’s live shopping sessions
Source: Company website[/caption]  

• On November 2, digitally native home furnishing brand Wayfair launched Wayfair On Air, a live video channel accessible through its app. The channel provides both recorded video segments and themed livestreaming series such as The Wayfair Rundown, a daily series that focuses on affordable, inspirational home merchandise. Wayfair shoppers can access exclusive discounts during the livestreams.

[caption id="attachment_136546" align="aligncenter" width="300"] Wayfair’s new live shopping channel
Source: Company website[/caption]   3. Creator-Led Strategies Are Retaining Younger Consumers

Capturing young consumers is a priority for many retailers. Many are turning to creator-led strategies, which emphasize building connections with shoppers through educational content and knowledgeable, trusted hosts.

• Saks Fifth Avenue has begun a series of livestreams on its Saks Live platform that feature stylists, lifestyle bloggers and other influencers discussing holiday gift giving and party planning. Like other programming on the channel, the sessions feature shoppable items and a chat function for hosts to interact with viewers in real time. Hosts of the livestreams, which are taking place throughout November and December, include L’Avenue executive pastry chef Stephanie Oliveira, fashion designer Nicky Hilton Rothschild and lifestyle blogger Chriselle Lim.

[caption id="attachment_136547" align="aligncenter" width="550"] Saks Live’s varied livestreams
Source: Company website[/caption]  

What We Think

The large proportion of many shoppers seeking to avoid stockouts by shopping early presents an opportunity for retailers not only to smooth the holiday peak but to predict what that demand will look like. Brands and retailers are therefore already getting their holiday live shopping schedules under way.

Implications for Brands/Retailers

• Be social. Brands and retailers should make livestreaming excellence a priority, in particular by embracing social channels to reach younger consumers.
• Be early. Brands and retailers can capitalize on consumers’ appetite for early holiday shopping using pre-sales, the data derived from which can inform their next steps.
• Be relevant. Livestreaming centered around knowledgeable, trusted creators can form a powerful connection with viewers. Brands and retailers must focus on creator-led livestreaming strategies if they wish to become relatable, relevant and trusted.
• Be flexible. A mismanaged or rigid livestreaming strategy could exacerbate inflationary and supply chain challenges. Retailers therefore need the ability to react quicky and promote not only popular products but also items plentiful in stock that customers will receive in good time. Companies that can stay agile and pivot to manage consumer demand will be rewarded with happy customers.