Growing e-Commerce With Livestreaming - A R3 Report

Watch Now, Shop Now: Growing E-Commerce With Livestreaming An R3 Report

Watch Now, Shop Now: Growing E-Commerce With Livestreaming

Social Media Goes Shopping The concept of “shoppertainment� is not new, with broadcast networks like Home Shopping Network long established since the 1980s in North America. The recent global health pandemic has given the concept new life as the medium has shifted from television to mobile, and broadcast networks to social networks. This new form of retail is best described as televised shopping on mobile with e-commerce functionality.

Think QVC plus Facebook Live plus Shopify.

Though e-commerce livestreaming is growing across markets, it is hyperdeveloped in China. First gaining popularity as a means for Key Opinion Influencers (KOLs) to market their own products, the number of livestream users in China has hit 560 million (May 2020) and according to iResearch, the industry was worth US$63 billion in 2019 and is expected to double by the end of 2020. Established e-commerce platforms like Amazon are using livestreaming to create new revenue streams and social platforms like Instagram, TikTok, and Facebook are evolving to support video and e-commerce functionalities, opening the door for brands and companies to monetize these community-driven channels.

In this report, we explore the socio-cultural, technological, and environmental factors that have contributed to the rise in popularity of e-commerce livestreaming, and look at what marketers need to do to develop strategies that are grounded in best practice.

We hope you find the insights helpful.

3

Watch Now, Shop Now: Growing E-Commerce With Livestreaming

Social Distancing & Social Shopping The explosive popularity of livestreaming e-commerce is the product of a number of factors: a robust influencer economy combined with the rise of social platforms with e-commerce capabilities, in a time when social distancing has become the new norm.

Never before have the world’s population been so dependent on technology for multiple aspects of their lives; staying connected to friends and family, purchasing of essential and non-essential goods, and entertainment. Companies internationally have begun to utilize livestreaming as a tool for brand engagement, and to create a seamless user experience from inspiration to purchase.

Livestreaming for e-commerce presents an elegant solution to the issues that have arisen due to the global pandemic. It effectively closes the distance between the brand and the buyer and addresses the challenges of marketing to consumers whose buying habits and demands have evolved dramatically in pace with the digital revolution.  Big brands across industries are making creative use of the medium for product launches and branded content. Discovery, Verizon, and the NFL have partnered with TikTok to promote their livestreams, and French fashion house Lanvin created a cloud fashion show during Paris Fashion Week in partnership with video platforms Douyin, Yizhibo, iQiyi, and luxury e-tailer Secoo.

Influencer Economy

Social Platforms With e-Commerce Capability

Social Distancing

5

DRIVING TRANSFORMATION FOR MARKETERS & THEIR AGENCIES

Livestreaming Platforms in China TOP PLATFORMS BY TYPE e-Commerce

8

Short Video

Entertainment

Gaming

Watch Now, Shop Now: Growing E-Commerce With Livestreaming

Case Study: Xiaomi The Chinese mobile phone maker collaborated with video platform Bilibili for a 72-hour long live-streamed launch event for its Mi 105G phone. The event pulled in around 12 million viewers and 2.6 million comments on the platform’s trademark “bullet chat” format, which shows user comments across the screen in real-time.

Case Study: NIO Nio’s ES6 SUV was launched by founder and CEO William Li via a sponsored appearance on TV personality Wang Han’s livestream.

The forty-minute introduction and demonstration drew 20 million viewers, over 5,000 test drive sign ups, and 320 car order deposits worth USD 18 million.

9

Watch Now, Shop Now: Growing E-Commerce With Livestreaming

3

Select an Influencer That Aligns with KPIs Should you invest in a celebrity, an influencer or feature one of your own?

Hosts of e-commerce livestreams play multiple roles. Not only are they responsible for making sure the livestream is entertaining, their profile can attract audiences and push sales. Using an influencer in e-commerce livestreaming to propel conversion rates can be powerful, but marketers need to pay attention to finding the “right fit.”

An influencer with tens of millions of followers might seem attractive if the goal is looking to increase brand awareness, but if KPIs are centered around sales, an influencer with fewer followers but higher engagement levels will prove a better choice for the campaign. More is not always better.”right fit.”

An influencer with tens of millions of followers might seem attractive if the goal is looking to increase brand awareness, but if KPIs are centered around sales, an influencer with fewer followers but higher engagement levels will prove a better choice for the campaign. More is not always better.

Pros

CONS • Engaging influencers can be expensive

• Can leverage their enormous and devoted fan base, some that rival that of celebrities

Influencer

• More relatable for the general audience

• Star quality has the potential to draw more attention

Celebrity

Management Executives

• Fake followers; ROI might not be as expected • Many influencers have their own stores, so they are incentivized to promote their own brands, potentially putting them in competition with their sponsors

• Can be expensive to work with

• Celebrities can own and create the content and then share it with their huge follower base

• Unpredictable sales conversion

• They are experts in company offerings, and will be able to answer consumer questions in detail and effectively highlight product features

• As they might not be broadcast professionals, it can be hard to maintain stage presence and be engaging on screen

13