Monday, December 23, 2024

How US Brands Can Keep Up With the Live Commerce Gold Rush

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Live shopping and video commerce are exploding, driven by growing consumer interest and the success of global disruptors like Shein and Temu.

These international players dominate their markets with highly engaging, frictionless shopping experiences and have expanded aggressively into the U.S., raising the stakes for domestic brands. This evolution parallels the introduction of TikTok in the U.S., where major global brands were slow to recognize the platform’s potential until it became too big to ignore. (And in fact, we saw live shopping sales on the platform increase 40% year over year from January to November 2024.) Live shopping could follow a similar trajectory if U.S. retailers don’t act fast.

Recent consumer survey data underscores the urgency for action. In the past year, nearly half (45%) of U.S. consumers participated in live shopping events on platforms like Amazon Live or Poshmark’s Posh Shows. Meanwhile, 61% browsed or purchased through social video channels such as TikTok Shop, Instagram Reels, Facebook Live, and YouTube. Just this past Black Friday alone, TikTok Shop hit over $100 million in single day sales and saw shoppers tuned into over 30,000 live-selling sessions.

Even with TikTok facing a potential ban in the U.S. in the new year, brands and retailers cannot afford to ignore the astronomical growth of this shopping format. By 2025, social media platforms will become even more ingrained in the shopping experience. Instagram, TikTok, and YouTube will offer increasingly sophisticated live shopping features, blending entertainment and ecommerce. 

From static screens to dynamic streams 

Live shopping is more than just a product pitch—it’s about creating memorable, interactive experiences. Rooted in the legacy of QVC and HSN, the format has transitioned to the digital age, where platforms elevate engagement with real-time interaction and seamless purchasing. Today’s version delivers personalization and immediacy, swapping television screens for smartphones, 800 numbers for “Click Here” buttons, and scripted pitches for more spontaneous, dynamic storytelling. 

The appeal of live shopping is growing across sectors, breaking from its traditional association with fashion and beauty. Men, often overlooked in video commerce, participate at higher-than-expected rates—48%, compared to 42% for women. In fact, 31% of men find discovering new products to be the most valuable aspect of live shopping. This opens doors for more brands in electronics, gaming, and sports merchandise to engage customers in ways that build product knowledge and emotional connection. These experiences bring a level of authenticity that static product pages can’t replicate, making live shopping an invaluable tool for creating dynamic engagement across industries. 

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