From China to the world
Although live shopping was already popular in China before the COVID-19 outbreak, pairing entertainment with e-commerce was the magic formula for its take-off when strict confinement ensued. Within a year, the gross merchandise value of live streaming commerce more than doubled, surpassing one trillion yuan in 2020. Far from temporary, forecasts indicate that sales through this channel will continue to grow by leaps and bounds in the coming years, accounting for over 20 percent of total GMV online shopping in China by 2022.It did not take long for China's success story to pique the interest of retailers and consumers across the globe. Europe, for example, recorded one of the highest increases in livestream purchases since the pandemic onset, surpassing North America and the Middle East. In the United States, live shopping is rapidly developing. According to estimates, livestream e-commerce sales in the U.S. would reach 11 billion dollars in 2021, a figure expected to triple in the next three years. In South America, Brazil has also witnessed rising interest in live commerce. During a 2021 survey, one in ten Brazilians said they had attended a livestream shopping session, while 90 percent expressed their intention to do so in the future.
A groundbreaking experience
In China, both Alibaba-owned marketplace Taobao and online retailer JD.com took steps to counter the devastating effects of the pandemic. In this context, not only did live shopping help weather the crisis, but it also forged a new way of doing business, opening a world of opportunities for retailers. In addition to being accessible, this format promotes engagement between brands and buyers. When asked about the main reason for using livestream marketing in 2020, most marketers in the United States highlighted the advantage of achieving deeper interaction with the audience.Among global consumers, live shopping is synonymous with originality and ease of purchase. For over eight out of ten social media livestream buyers, this shopping channel offers access to collectible or limited-edition products and a convenient way of purchase during livestream shopping events. In addition to an exciting shopping experience, U.S. consumers see the possibility of finding great deals as the main reason to shop via livestream, followed by discovering or getting more information about a product.
